☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Nebraska | 84-0748903 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
121 South 13th Street, Suite 100 | |||||||||||
Lincoln, | Nebraska | 68508 | |||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Class A Common Stock, Par Value $0.01 per Share | NNI | New York Stock Exchange |
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 5. | Other Information | ||||||||||
Item 6. | |||||||||||
NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS | CONSOLIDATED BALANCE SHEETS | CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
(Dollars in thousands, except share data) | (Dollars in thousands, except share data) | (Dollars in thousands, except share data) | ||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||
As of | As of | As of | As of | |||||||||||||||||||
September 30, 2022 | December 31, 2021 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||
Assets: | Assets: | Assets: | ||||||||||||||||||||
Loans and accrued interest receivable (net of allowance for loan losses of $119,057 and $127,113, respectively) | $ | 15,876,251 | 18,335,197 | |||||||||||||||||||
Loans and accrued interest receivable (net of allowance for loan losses of $114,263 and $131,827, respectively) | Loans and accrued interest receivable (net of allowance for loan losses of $114,263 and $131,827, respectively) | $ | 14,360,612 | 15,243,889 | ||||||||||||||||||
Cash and cash equivalents: | Cash and cash equivalents: | Cash and cash equivalents: | ||||||||||||||||||||
Cash and cash equivalents - not held at a related party | Cash and cash equivalents - not held at a related party | 30,800 | 30,128 | Cash and cash equivalents - not held at a related party | 24,834 | 24,584 | ||||||||||||||||
Cash and cash equivalents - held at a related party | Cash and cash equivalents - held at a related party | 32,398 | 95,435 | Cash and cash equivalents - held at a related party | 96,935 | 93,562 | ||||||||||||||||
Total cash and cash equivalents | Total cash and cash equivalents | 63,198 | 125,563 | Total cash and cash equivalents | 121,769 | 118,146 | ||||||||||||||||
Investments and notes receivable | Investments and notes receivable | 2,063,514 | 1,588,919 | Investments and notes receivable | 2,006,306 | 2,111,917 | ||||||||||||||||
Restricted cash | Restricted cash | 799,212 | 741,981 | Restricted cash | 484,223 | 945,159 | ||||||||||||||||
Restricted cash - due to customers | Restricted cash - due to customers | 180,919 | 326,645 | Restricted cash - due to customers | 208,033 | 294,311 | ||||||||||||||||
Accounts receivable (net of allowance for doubtful accounts of $3,195 and $1,160, respectively) | 121,945 | 163,315 | ||||||||||||||||||||
Accounts receivable (net of allowance for doubtful accounts of $4,855 and $3,079, respectively) | Accounts receivable (net of allowance for doubtful accounts of $4,855 and $3,079, respectively) | 135,690 | 194,851 | |||||||||||||||||||
Goodwill | Goodwill | 172,033 | 142,092 | Goodwill | 176,902 | 176,902 | ||||||||||||||||
Intangible assets, net | Intangible assets, net | 70,368 | 52,029 | Intangible assets, net | 57,293 | 63,501 | ||||||||||||||||
Property and equipment, net | Property and equipment, net | 127,094 | 119,413 | Property and equipment, net | 130,451 | 122,526 | ||||||||||||||||
Other assets | Other assets | 88,999 | 82,887 | Other assets | 126,353 | 102,842 | ||||||||||||||||
Total assets | Total assets | $ | 19,563,533 | 21,678,041 | Total assets | $ | 17,807,632 | 19,374,044 | ||||||||||||||
Liabilities: | Liabilities: | Liabilities: | ||||||||||||||||||||
Bonds and notes payable | Bonds and notes payable | $ | 15,042,595 | 17,631,089 | Bonds and notes payable | $ | 13,070,140 | 14,637,195 | ||||||||||||||
Accrued interest payable | Accrued interest payable | 21,796 | 4,566 | Accrued interest payable | 35,926 | 36,049 | ||||||||||||||||
Bank deposits | Bank deposits | 580,825 | 344,315 | Bank deposits | 731,046 | 691,322 | ||||||||||||||||
Other liabilities | Other liabilities | 445,606 | 379,231 | Other liabilities | 423,454 | 461,259 | ||||||||||||||||
Due to customers | Due to customers | 306,352 | 366,002 | Due to customers | 299,552 | 348,317 | ||||||||||||||||
Total liabilities | Total liabilities | 16,397,174 | 18,725,203 | Total liabilities | 14,560,118 | 16,174,142 | ||||||||||||||||
Commitments and contingencies | Commitments and contingencies | Commitments and contingencies | ||||||||||||||||||||
Equity: | Equity: | Equity: | ||||||||||||||||||||
Nelnet, Inc. shareholders' equity: | Nelnet, Inc. shareholders' equity: | Nelnet, Inc. shareholders' equity: | ||||||||||||||||||||
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding | Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding | — | — | Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding | — | — | ||||||||||||||||
Common stock: | Common stock: | Common stock: | ||||||||||||||||||||
Class A, $0.01 par value. Authorized 600,000,000 shares; issued and outstanding 26,483,298 shares and 27,239,654 shares, respectively | 265 | 272 | ||||||||||||||||||||
Class B, convertible, $0.01 par value. Authorized 60,000,000 shares; issued and outstanding 10,673,659 shares and 10,676,642 shares, respectively | 107 | 107 | ||||||||||||||||||||
Class A, $0.01 par value. Authorized 600,000,000 shares; issued and outstanding 26,646,490 shares and 26,461,651 shares, respectively | Class A, $0.01 par value. Authorized 600,000,000 shares; issued and outstanding 26,646,490 shares and 26,461,651 shares, respectively | 266 | 265 | |||||||||||||||||||
Class B, convertible, $0.01 par value. Authorized 60,000,000 shares; issued and outstanding 10,668,460 shares | Class B, convertible, $0.01 par value. Authorized 60,000,000 shares; issued and outstanding 10,668,460 shares | 107 | 107 | |||||||||||||||||||
Additional paid-in capital | Additional paid-in capital | 837 | 1,000 | Additional paid-in capital | 10,114 | 1,109 | ||||||||||||||||
Retained earnings | Retained earnings | 3,208,044 | 2,940,523 | Retained earnings | 3,270,250 | 3,234,844 | ||||||||||||||||
Accumulated other comprehensive (loss) earnings, net | (28,639) | 9,304 | ||||||||||||||||||||
Accumulated other comprehensive loss, net | Accumulated other comprehensive loss, net | (21,458) | (37,366) | |||||||||||||||||||
Total Nelnet, Inc. shareholders' equity | Total Nelnet, Inc. shareholders' equity | 3,180,614 | 2,951,206 | Total Nelnet, Inc. shareholders' equity | 3,259,279 | 3,198,959 | ||||||||||||||||
Noncontrolling interests | Noncontrolling interests | (14,255) | 1,632 | Noncontrolling interests | (11,765) | 943 | ||||||||||||||||
Total equity | Total equity | 3,166,359 | 2,952,838 | Total equity | 3,247,514 | 3,199,902 | ||||||||||||||||
Total liabilities and equity | Total liabilities and equity | $ | 19,563,533 | 21,678,041 | Total liabilities and equity | $ | 17,807,632 | 19,374,044 | ||||||||||||||
Supplemental information - assets and liabilities of consolidated education lending variable interest entities: | ||||||||||||||||||||||
Supplemental information - assets and liabilities of consolidated education and other lending variable interest entities: | Supplemental information - assets and liabilities of consolidated education and other lending variable interest entities: | |||||||||||||||||||||
Loans and accrued interest receivable | Loans and accrued interest receivable | $ | 15,173,335 | 17,981,414 | Loans and accrued interest receivable | $ | 13,756,107 | 14,585,491 | ||||||||||||||
Restricted cash | Restricted cash | 712,435 | 674,073 | Restricted cash | 451,792 | 867,961 | ||||||||||||||||
Bonds and notes payable | Bonds and notes payable | (14,725,098) | (17,462,456) | Bonds and notes payable | (12,999,867) | (14,233,586) | ||||||||||||||||
Accrued interest payable and other liabilities | Accrued interest payable and other liabilities | (96,004) | (36,276) | Accrued interest payable and other liabilities | (192,978) | (145,309) | ||||||||||||||||
Net assets of consolidated education lending variable interest entities | $ | 1,064,668 | 1,156,755 | |||||||||||||||||||
Net assets of consolidated education and other lending variable interest entities | Net assets of consolidated education and other lending variable interest entities | $ | 1,015,054 | 1,074,557 |
NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | CONSOLIDATED STATEMENTS OF INCOME | CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except share data) | (Dollars in thousands, except share data) | (Dollars in thousands, except share data) | ||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | Three months ended | Six months ended | |||||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
Interest income: | Interest income: | Interest income: | ||||||||||||||||||||||||||||||||||||||||||||
Loan interest | Loan interest | $ | 176,244 | 124,096 | 422,327 | 370,219 | Loan interest | $ | 243,045 | 134,706 | 468,288 | 246,083 | ||||||||||||||||||||||||||||||||||
Investment interest | Investment interest | 26,889 | 12,558 | 57,589 | 29,122 | Investment interest | 40,982 | 16,881 | 81,707 | 30,700 | ||||||||||||||||||||||||||||||||||||
Total interest income | Total interest income | 203,133 | 136,654 | 479,916 | 399,341 | Total interest income | 284,027 | 151,587 | 549,995 | 276,783 | ||||||||||||||||||||||||||||||||||||
Interest expense on bonds and notes payable and bank deposits | Interest expense on bonds and notes payable and bank deposits | 126,625 | 50,176 | 248,347 | 127,939 | Interest expense on bonds and notes payable and bank deposits | 233,148 | 73,642 | 432,597 | 121,721 | ||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | 76,508 | 86,478 | 231,569 | 271,402 | Net interest income | 50,879 | 77,945 | 117,398 | 155,062 | ||||||||||||||||||||||||||||||||||||
Less provision (negative provision) for loan losses | 9,665 | 5,827 | 18,640 | (10,847) | ||||||||||||||||||||||||||||||||||||||||||
Less provision for loan losses | Less provision for loan losses | 9,592 | 9,409 | 43,867 | 8,974 | |||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | Net interest income after provision for loan losses | 66,843 | 80,651 | 212,929 | 282,249 | Net interest income after provision for loan losses | 41,287 | 68,536 | 73,531 | 146,088 | ||||||||||||||||||||||||||||||||||||
Other income/expense: | ||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense): | Other income (expense): | |||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | Loan servicing and systems revenue | 134,197 | 112,351 | 395,438 | 335,961 | Loan servicing and systems revenue | 122,020 | 124,873 | 261,247 | 261,241 | ||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | 106,894 | 85,324 | 310,211 | 257,284 | Education technology, services, and payment processing revenue | 109,858 | 91,031 | 243,462 | 203,317 | ||||||||||||||||||||||||||||||||||||
Solar construction revenue | Solar construction revenue | 9,358 | — | 9,358 | — | Solar construction revenue | 4,735 | — | 13,386 | — | ||||||||||||||||||||||||||||||||||||
Other | 2,225 | 11,867 | 24,750 | 30,183 | ||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | 2,627 | 3,444 | 5,616 | 18,715 | ||||||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | 121 | (14,159) | (6,163) | (12,223) | ||||||||||||||||||||||||||||||||||||||||||
Other, net | Other, net | (7,011) | 12,647 | (21,083) | 22,524 | |||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans, net | Gain on sale of loans, net | 15,511 | — | 27,323 | 2,989 | |||||||||||||||||||||||||||||||||||||||||
Impairment expense | Impairment expense | — | (6,284) | — | (6,284) | |||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments and derivative settlements, net | Derivative market value adjustments and derivative settlements, net | 63,262 | 1,351 | 251,210 | 28,868 | Derivative market value adjustments and derivative settlements, net | 2,070 | 45,024 | (12,005) | 187,949 | ||||||||||||||||||||||||||||||||||||
Total other income/expense | 318,684 | 200,178 | 990,420 | 658,788 | ||||||||||||||||||||||||||||||||||||||||||
Total other income (expense), net | Total other income (expense), net | 247,183 | 267,291 | 512,330 | 671,736 | |||||||||||||||||||||||||||||||||||||||||
Cost of services: | Cost of services: | Cost of services: | ||||||||||||||||||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | Cost to provide education technology, services, and payment processing services | 42,676 | 31,335 | 109,073 | 80,063 | Cost to provide education technology, services, and payment processing services | 40,407 | 30,852 | 88,110 | 66,397 | ||||||||||||||||||||||||||||||||||||
Cost to provide solar construction services | Cost to provide solar construction services | 5,968 | — | 5,968 | — | Cost to provide solar construction services | 9,122 | — | 17,422 | — | ||||||||||||||||||||||||||||||||||||
Total cost of services | Total cost of services | 48,644 | 31,335 | 115,041 | 80,063 | Total cost of services | 49,529 | 30,852 | 105,532 | 66,397 | ||||||||||||||||||||||||||||||||||||
Operating expenses: | Operating expenses: | Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 147,198 | 128,592 | 438,010 | 363,351 | Salaries and benefits | 144,706 | 141,398 | 297,416 | 290,813 | ||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 18,772 | 15,710 | 53,978 | 56,129 | Depreciation and amortization | 18,652 | 18,250 | 35,279 | 35,206 | ||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 43,858 | 38,324 | 120,297 | 107,611 | Other expenses | 45,997 | 36,940 | 86,781 | 76,439 | ||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 209,828 | 182,626 | 612,285 | 527,091 | Total operating expenses | 209,355 | 196,588 | 419,476 | 402,458 | ||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 127,055 | 66,868 | 476,023 | 333,883 | Income before income taxes | 29,586 | 108,387 | 60,853 | 348,969 | ||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | 26,586 | 15,649 | 107,765 | 76,747 | Income tax expense | 10,491 | 25,483 | 18,741 | 81,180 | ||||||||||||||||||||||||||||||||||||
Net income | Net income | 100,469 | 51,219 | 368,258 | 257,136 | Net income | 19,095 | 82,904 | 42,112 | 267,789 | ||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | Net loss attributable to noncontrolling interests | 4,329 | 1,919 | 8,315 | 3,467 | Net loss attributable to noncontrolling interests | 9,172 | 2,225 | 12,642 | 3,987 | ||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc. | Net income attributable to Nelnet, Inc. | $ | 104,798 | 53,138 | 376,573 | 260,603 | Net income attributable to Nelnet, Inc. | $ | 28,267 | 85,129 | 54,754 | 271,776 | ||||||||||||||||||||||||||||||||||
Earnings per common share: | Earnings per common share: | Earnings per common share: | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc. shareholders - basic and diluted | Net income attributable to Nelnet, Inc. shareholders - basic and diluted | $ | 2.80 | 1.38 | 9.99 | 6.74 | Net income attributable to Nelnet, Inc. shareholders - basic and diluted | $ | 0.75 | 2.26 | 1.46 | 7.18 | ||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding - basic and diluted | Weighted average common shares outstanding - basic and diluted | 37,380,493 | 38,595,721 | 37,708,425 | 38,646,892 | Weighted average common shares outstanding - basic and diluted | 37,468,397 | 37,710,214 | 37,406,843 | 37,875,108 |
NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 100,469 | 51,219 | 368,258 | 257,136 | Net income | $ | 19,095 | 82,904 | 42,112 | 267,789 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss): | Other comprehensive income (loss): | Other comprehensive income (loss): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net changes related to foreign currency translation adjustments | Net changes related to foreign currency translation adjustments | $ | 18 | (9) | 19 | (9) | Net changes related to foreign currency translation adjustments | $ | — | (8) | (3) | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net changes related to available-for-sale debt securities: | Net changes related to available-for-sale debt securities: | Net changes related to available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized holding gains (losses) arising during period, net | Unrealized holding gains (losses) arising during period, net | 4,790 | 4,524 | (45,730) | 11,770 | Unrealized holding gains (losses) arising during period, net | 8,649 | (33,822) | 17,300 | (50,520) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of gains recognized in net income, net of losses | (578) | (1,173) | (4,220) | (2,052) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of (gains) losses recognized in net income, net | Reclassification of (gains) losses recognized in net income, net | (918) | (849) | 4,064 | (3,642) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity | Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity | 70 | — | 70 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax effect | Income tax effect | (1,872) | 5,929 | 8,321 | (26,350) | (5,144) | 16,290 | 12,999 | (41,163) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net changes related to equity method investee's other comprehensive income: | Net changes related to equity method investee's other comprehensive income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on cash flow hedges | Loss on cash flow hedges | (501) | — | (499) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax effect | Income tax effect | (1,011) | 3,201 | (804) | 2,547 | 11,988 | (37,962) | (2,332) | 7,386 | Income tax effect | 120 | (381) | — | — | 120 | (379) | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | Other comprehensive income (loss) | 3,219 | 2,538 | (37,943) | 7,377 | Other comprehensive income (loss) | 5,548 | (26,358) | 15,908 | (41,162) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | 103,688 | 53,757 | 330,315 | 264,513 | Comprehensive income | 24,643 | 56,546 | 58,020 | 226,627 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive loss attributable to noncontrolling interests | Comprehensive loss attributable to noncontrolling interests | 4,329 | 1,919 | 8,315 | 3,467 | Comprehensive loss attributable to noncontrolling interests | 9,172 | 2,225 | 12,642 | 3,987 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to Nelnet, Inc. | Comprehensive income attributable to Nelnet, Inc. | $ | 108,017 | 55,676 | 338,630 | 267,980 | Comprehensive income attributable to Nelnet, Inc. | $ | 33,815 | 58,771 | 70,662 | 230,614 |
NELNET, INC. AND SUBSIDIARIES | CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | (Dollars in thousands, except share data) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nelnet, Inc. Shareholders | Nelnet, Inc. Shareholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock shares | Common stock shares | Preferred stock | Class A common stock | Class B common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive (loss) earnings | Noncontrolling interests | Total equity | Preferred stock shares | Common stock shares | Preferred stock | Class A common stock | Class B common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Noncontrolling interests | Total equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | — | 27,494,942 | 11,054,171 | $ | — | 275 | 111 | 10,158 | 2,812,315 | 10,941 | (5,182) | 2,828,618 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2022 | Balance as of March 31, 2022 | — | 27,151,270 | 10,674,892 | $ | — | 272 | 107 | 1,208 | 3,092,226 | (5,500) | (3,250) | 3,085,063 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of noncontrolling interests | Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 4,935 | 4,935 | Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 9,275 | 9,275 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | — | — | — | — | — | — | — | 53,138 | — | (1,919) | 51,219 | Net income (loss) | — | — | — | — | — | — | — | 85,129 | — | (2,225) | 82,904 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | 2,538 | — | 2,538 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (125) | (125) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends on Class A and Class B common stock - $0.22 per share | — | — | — | — | — | — | — | (8,407) | — | — | (8,407) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures | — | 29,805 | — | — | — | — | 493 | — | — | — | 493 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for stock based awards | — | — | — | — | — | — | 2,770 | — | — | — | 2,770 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | (341,094) | — | — | (3) | — | (11,828) | (13,247) | — | — | (25,078) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of common stock | — | 372,717 | (372,717) | — | 4 | (4) | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2021 | — | 27,556,370 | 10,681,454 | $ | — | 276 | 107 | 1,593 | 2,843,799 | 13,479 | (2,291) | 2,856,963 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | — | 26,613,733 | 10,674,892 | $ | — | 266 | 107 | 1,180 | 3,127,687 | (31,858) | (6,237) | 3,091,145 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 14,018 | 14,018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | 104,798 | — | (4,329) | 100,469 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | 3,219 | — | 3,219 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | — | — | — | — | — | — | — | — | (26,358) | — | (26,358) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (17,707) | (17,707) | Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (10,037) | (10,037) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends on Class A and Class B common stock - $0.24 per share | Cash dividends on Class A and Class B common stock - $0.24 per share | — | — | — | — | — | — | — | (8,925) | — | — | (8,925) | Cash dividends on Class A and Class B common stock - $0.24 per share | — | — | — | — | — | — | — | (8,973) | — | — | (8,973) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures | Issuance of common stock, net of forfeitures | — | 38,192 | — | — | 1 | — | 476 | — | — | — | 477 | Issuance of common stock, net of forfeitures | — | 20,720 | — | — | — | — | 2,116 | — | — | — | 2,116 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for stock based awards | Compensation expense for stock based awards | — | — | — | — | — | — | 3,631 | — | — | — | 3,631 | Compensation expense for stock based awards | — | — | — | — | — | — | 3,187 | — | — | — | 3,187 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | Repurchase of common stock | — | (169,860) | — | — | (2) | — | (4,450) | (9,841) | — | — | (14,293) | Repurchase of common stock | — | (558,257) | — | — | (6) | — | (5,331) | (40,695) | — | — | (46,032) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of common stock | — | 1,233 | (1,233) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | (5,675) | — | — | (5,675) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | — | 26,483,298 | 10,673,659 | $ | — | 265 | 107 | 837 | 3,208,044 | (28,639) | (14,255) | 3,166,359 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | Balance as of June 30, 2022 | — | 26,613,733 | 10,674,892 | $ | — | 266 | 107 | 1,180 | 3,127,687 | (31,858) | (6,237) | 3,091,145 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2023 | Balance as of March 31, 2023 | — | 26,623,662 | 10,668,460 | $ | — | 266 | 107 | 4,639 | 3,251,677 | (27,006) | (6,354) | 3,223,329 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of noncontrolling interests | Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 11,703 | 11,703 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | — | — | — | — | — | — | — | 28,267 | — | (9,172) | 19,095 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | Other comprehensive income | — | — | — | — | — | — | — | — | 5,548 | — | 5,548 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (7,942) | (7,942) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends on Class A and Class B common stock - $0.26 per share | Cash dividends on Class A and Class B common stock - $0.26 per share | — | — | — | — | — | — | — | (9,694) | — | — | (9,694) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures | Issuance of common stock, net of forfeitures | — | 27,562 | — | — | — | — | 2,056 | — | — | — | 2,056 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for stock based awards | Compensation expense for stock based awards | — | — | — | — | — | — | 3,884 | — | — | — | 3,884 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | Repurchase of common stock | — | (4,734) | — | — | — | — | (465) | — | — | — | (465) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | Balance as of June 30, 2023 | — | 26,646,490 | 10,668,460 | $ | — | 266 | 107 | 10,114 | 3,270,250 | (21,458) | (11,765) | 3,247,514 |
NELNET, INC. AND SUBSIDIARIES | CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | (Dollars in thousands, except share data) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nelnet, Inc. Shareholders | Nelnet, Inc. Shareholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock shares | Common stock shares | Preferred stock | Class A common stock | Class B common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive (loss) earnings | Noncontrolling interests | Total equity | Preferred stock shares | Common stock shares | Preferred stock | Class A common stock | Class B common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive loss | Noncontrolling interests | Total equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | — | 27,193,154 | 11,155,571 | $ | — | 272 | 112 | 3,794 | 2,621,762 | 6,102 | (3,693) | 2,628,349 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | Balance as of December 31, 2021 | — | 27,239,654 | 10,676,642 | $ | — | 272 | 107 | 1,000 | 2,940,523 | 9,304 | 1,632 | 2,952,838 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of noncontrolling interests | Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 11,823 | 11,823 | Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 11,279 | 11,279 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | — | — | — | — | — | — | — | 260,603 | — | (3,467) | 257,136 | Net income (loss) | — | — | — | — | — | — | — | 271,776 | — | (3,987) | 267,789 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | 7,377 | — | 7,377 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | — | — | — | — | — | — | — | — | (41,162) | — | (41,162) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (6,954) | (6,954) | Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (15,161) | (15,161) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends on Class A and Class B common stock - $0.66 per share | — | — | — | — | — | — | — | (25,319) | — | — | (25,319) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends on Class A and Class B common stock - $0.48 per share | Cash dividends on Class A and Class B common stock - $0.48 per share | — | — | — | — | — | — | — | (18,035) | — | — | (18,035) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures | Issuance of common stock, net of forfeitures | — | 261,760 | — | — | 3 | — | 4,406 | — | — | — | 4,409 | Issuance of common stock, net of forfeitures | — | 310,639 | — | — | 3 | — | 6,498 | — | — | — | 6,501 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for stock based awards | Compensation expense for stock based awards | — | — | — | — | — | — | 7,628 | — | — | — | 7,628 | Compensation expense for stock based awards | — | — | — | — | — | — | 6,027 | — | — | — | 6,027 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | Repurchase of common stock | — | (372,661) | — | — | (4) | — | (14,235) | (13,247) | — | — | (27,486) | Repurchase of common stock | — | (938,310) | — | — | (9) | — | (12,345) | (66,577) | — | — | (78,931) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of common stock | Conversion of common stock | — | 474,117 | (474,117) | — | 5 | (5) | — | — | — | — | — | Conversion of common stock | — | 1,750 | (1,750) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2021 | — | 27,556,370 | 10,681,454 | $ | — | 276 | 107 | 1,593 | 2,843,799 | 13,479 | (2,291) | 2,856,963 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | Balance as of June 30, 2022 | — | 26,613,733 | 10,674,892 | $ | — | 266 | 107 | 1,180 | 3,127,687 | (31,858) | (6,237) | 3,091,145 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | — | 27,239,654 | 10,676,642 | $ | — | 272 | 107 | 1,000 | 2,940,523 | 9,304 | 1,632 | 2,952,838 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2022 | Balance as of December 31, 2022 | — | 26,461,651 | 10,668,460 | $ | — | 265 | 107 | 1,109 | 3,234,844 | (37,366) | 943 | 3,199,902 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of noncontrolling interests | Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 25,297 | 25,297 | Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 12,904 | 12,904 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | — | — | — | — | — | — | — | 376,573 | — | (8,315) | 368,258 | Net income (loss) | — | — | — | — | — | — | — | 54,754 | — | (12,642) | 42,112 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | — | (37,943) | — | (37,943) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | Other comprehensive income | — | — | — | — | — | — | — | — | 15,908 | — | 15,908 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (32,869) | (32,869) | Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (12,970) | (12,970) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends on Class A and Class B common stock - $0.72 per share | — | — | — | — | — | — | — | (26,960) | — | — | (26,960) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends on Class A and Class B common stock - $0.52 per share | Cash dividends on Class A and Class B common stock - $0.52 per share | — | — | — | — | — | — | — | (19,348) | — | — | (19,348) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures | Issuance of common stock, net of forfeitures | — | 348,831 | — | — | 4 | — | 6,974 | — | — | — | 6,978 | Issuance of common stock, net of forfeitures | — | 226,086 | — | — | 1 | — | 5,119 | — | — | — | 5,120 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for stock based awards | Compensation expense for stock based awards | — | — | — | — | — | 9,659 | — | — | — | 9,659 | Compensation expense for stock based awards | — | — | — | — | — | — | 7,653 | — | — | — | 7,653 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | Repurchase of common stock | — | (1,108,170) | — | — | (11) | — | (16,796) | (76,417) | — | — | (93,224) | Repurchase of common stock | — | (41,247) | — | — | — | — | (3,767) | — | — | — | (3,767) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of common stock | — | 2,983 | (2,983) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | — | — | — | — | — | — | (5,675) | — | — | (5,675) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2022 | — | 26,483,298 | 10,673,659 | $ | — | 265 | 107 | 837 | 3,208,044 | (28,639) | (14,255) | 3,166,359 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2023 | Balance as of June 30, 2023 | — | 26,646,490 | 10,668,460 | $ | — | 266 | 107 | 10,114 | 3,270,250 | (21,458) | (11,765) | 3,247,514 |
NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | CONSOLIDATED STATEMENTS OF CASH FLOWS | CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||
Nine months ended | Six months ended | |||||||||||||||||||||
September 30, | June 30, | |||||||||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||||||||
Net income attributable to Nelnet, Inc. | Net income attributable to Nelnet, Inc. | $ | 376,573 | 260,603 | Net income attributable to Nelnet, Inc. | $ | 54,754 | 271,776 | ||||||||||||||
Net loss attributable to noncontrolling interests | Net loss attributable to noncontrolling interests | (8,315) | (3,467) | Net loss attributable to noncontrolling interests | (12,642) | (3,987) | ||||||||||||||||
Net income | Net income | 368,258 | 257,136 | Net income | 42,112 | 267,789 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities, net of business acquisitions: | ||||||||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities, net of business acquisition: | Adjustments to reconcile net income to net cash provided by operating activities, net of business acquisition: | |||||||||||||||||||||
Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs | Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs | 113,655 | 113,651 | Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs | 93,573 | 74,080 | ||||||||||||||||
Loan discount accretion | Loan discount accretion | (27,963) | (25,048) | Loan discount accretion | (15,412) | (19,554) | ||||||||||||||||
Provision (negative provision) for loan losses | 18,640 | (10,847) | ||||||||||||||||||||
Provision for loan losses | Provision for loan losses | 43,867 | 8,974 | |||||||||||||||||||
Derivative market value adjustments | Derivative market value adjustments | (239,125) | (44,455) | Derivative market value adjustments | 35,407 | (186,135) | ||||||||||||||||
Proceeds from termination of derivative instruments, net | 91,786 | — | ||||||||||||||||||||
Proceeds from termination of derivative instruments | Proceeds from termination of derivative instruments | 164,079 | 68,021 | |||||||||||||||||||
Proceeds from clearinghouse - initial and variation margin, net of payments | 227,448 | 41,033 | ||||||||||||||||||||
(Payments to) proceeds from clearinghouse - initial and variation margin, net | (Payments to) proceeds from clearinghouse - initial and variation margin, net | (209,886) | 133,622 | |||||||||||||||||||
Gain on sale of loans | (5,616) | (18,715) | ||||||||||||||||||||
Loss (gain) on investments, net | 13,605 | (293) | ||||||||||||||||||||
(Gain) loss from repurchases of debt, net | (1,231) | 3,964 | ||||||||||||||||||||
Gain on sale of loans, net | Gain on sale of loans, net | (27,323) | (2,989) | |||||||||||||||||||
Loss on investments, net | Loss on investments, net | 47,260 | 3,207 | |||||||||||||||||||
Proceeds from sale (purchases) of equity securities, net | 42,863 | (41,591) | ||||||||||||||||||||
Deferred income tax expense | 57,633 | 33,078 | ||||||||||||||||||||
Proceeds from sale of equity securities, net | Proceeds from sale of equity securities, net | 75 | 42,398 | |||||||||||||||||||
Deferred income tax (benefit) expense | Deferred income tax (benefit) expense | (16,144) | 49,890 | |||||||||||||||||||
Non-cash compensation expense | Non-cash compensation expense | 9,872 | 7,824 | Non-cash compensation expense | 7,810 | 6,171 | ||||||||||||||||
Provision for beneficial interests and impairment expense, net | 6,163 | 12,223 | ||||||||||||||||||||
Increase in loan and investment accrued interest receivable | (16,206) | (41,931) | ||||||||||||||||||||
Decrease (increase) in accounts receivable | 47,514 | (2,137) | ||||||||||||||||||||
(Increase) decrease in other assets, net | (73,291) | 35,381 | ||||||||||||||||||||
Impairment expense | Impairment expense | — | 6,284 | |||||||||||||||||||
(Increase) decrease in loan and investment accrued interest receivable | (Increase) decrease in loan and investment accrued interest receivable | (4,884) | 184 | |||||||||||||||||||
Decrease in accounts receivable | Decrease in accounts receivable | 59,142 | 44,786 | |||||||||||||||||||
Increase in other assets, net | Increase in other assets, net | (11,480) | (9,086) | |||||||||||||||||||
Decrease in the carrying amount of ROU asset, net | Decrease in the carrying amount of ROU asset, net | 4,476 | 5,652 | Decrease in the carrying amount of ROU asset, net | 2,390 | 2,735 | ||||||||||||||||
Increase (decrease) in accrued interest payable | 17,230 | (24,260) | ||||||||||||||||||||
Increase in other liabilities, net | 5,388 | 41,040 | ||||||||||||||||||||
(Decrease) increase in accrued interest payable | (Decrease) increase in accrued interest payable | (123) | 8,397 | |||||||||||||||||||
Decrease in other liabilities | Decrease in other liabilities | (8,916) | (12,200) | |||||||||||||||||||
Decrease in the carrying amount of lease liability | Decrease in the carrying amount of lease liability | (4,227) | (5,158) | Decrease in the carrying amount of lease liability | (2,568) | (2,860) | ||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | 656,872 | 336,547 | Net cash provided by operating activities | 198,979 | 483,714 | ||||||||||||||||
Cash flows from investing activities, net of business acquisitions: | ||||||||||||||||||||||
Cash flows from investing activities: | Cash flows from investing activities: | |||||||||||||||||||||
Purchases and originations of loans | Purchases and originations of loans | (539,118) | (1,145,775) | Purchases and originations of loans | (411,868) | (396,486) | ||||||||||||||||
Purchases of loans from a related party | Purchases of loans from a related party | (8,242) | (21,476) | Purchases of loans from a related party | (467,519) | (7,675) | ||||||||||||||||
Net proceeds from loan repayments, claims, and capitalized interest | Net proceeds from loan repayments, claims, and capitalized interest | 2,955,097 | 2,010,645 | Net proceeds from loan repayments, claims, and capitalized interest | 1,348,827 | 1,792,930 | ||||||||||||||||
Proceeds from sale of loans | Proceeds from sale of loans | 38,559 | 85,906 | Proceeds from sale of loans | 290,957 | 15,278 | ||||||||||||||||
Purchases of available-for-sale securities | Purchases of available-for-sale securities | (944,588) | (521,565) | Purchases of available-for-sale securities | (296,468) | (735,140) | ||||||||||||||||
Proceeds from sales of available-for-sale securities | Proceeds from sales of available-for-sale securities | 450,457 | 104,520 | Proceeds from sales of available-for-sale securities | 577,548 | 319,752 | ||||||||||||||||
Proceeds from beneficial interest in loan securitizations | Proceeds from beneficial interest in loan securitizations | 17,754 | 30,811 | Proceeds from beneficial interest in loan securitizations | 13,237 | 13,212 | ||||||||||||||||
Purchases of other investments and issuance of notes receivable | Purchases of other investments and issuance of notes receivable | (192,773) | (166,664) | Purchases of other investments and issuance of notes receivable | (140,129) | (147,400) | ||||||||||||||||
Proceeds from other investments | Proceeds from other investments | 42,524 | 209,634 | Proceeds from other investments | 14,403 | 23,955 | ||||||||||||||||
Purchases of held-to-maturity debt securities | Purchases of held-to-maturity debt securities | (2,889) | — | |||||||||||||||||||
Redemption of held-to-maturity debt securities | Redemption of held-to-maturity debt securities | 1,487 | — | |||||||||||||||||||
Purchases of property and equipment | Purchases of property and equipment | (44,423) | (42,594) | Purchases of property and equipment | (37,253) | (34,152) | ||||||||||||||||
Business acquisitions, net of cash acquired | (35,973) | — | ||||||||||||||||||||
Business acquisition, net of cash acquired | Business acquisition, net of cash acquired | — | (7,320) | |||||||||||||||||||
Net cash provided by investing activities | Net cash provided by investing activities | 1,739,274 | 543,442 | Net cash provided by investing activities | 890,333 | 836,954 |
NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) | CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) | CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) | ||||||||||||||||||||
Nine months ended | Six months ended | |||||||||||||||||||||
September 30, | June 30, | |||||||||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||||||||
Cash flows from financing activities, net of business acquisitions: | ||||||||||||||||||||||
Cash flows from financing activities: | Cash flows from financing activities: | |||||||||||||||||||||
Payments on bonds and notes payable | Payments on bonds and notes payable | $ | (3,035,082) | (2,479,582) | Payments on bonds and notes payable | $ | (2,417,622) | (1,695,697) | ||||||||||||||
Proceeds from issuance of bonds and notes payable | Proceeds from issuance of bonds and notes payable | 413,391 | 1,738,405 | Proceeds from issuance of bonds and notes payable | 806,148 | 159,931 | ||||||||||||||||
Payments of debt issuance costs | Payments of debt issuance costs | (1,160) | (6,778) | Payments of debt issuance costs | (2,214) | (851) | ||||||||||||||||
Increase in bank deposits, net | Increase in bank deposits, net | 236,510 | 146,018 | Increase in bank deposits, net | 39,724 | 244,159 | ||||||||||||||||
(Decrease) increase in due to customers | (Decrease) increase in due to customers | (59,467) | 53,146 | (Decrease) increase in due to customers | (48,728) | 43,544 | ||||||||||||||||
Dividends paid | Dividends paid | (26,960) | (25,319) | Dividends paid | (19,348) | (18,035) | ||||||||||||||||
Repurchases of common stock | Repurchases of common stock | (93,224) | (27,486) | Repurchases of common stock | (3,767) | (78,931) | ||||||||||||||||
Proceeds from issuance of common stock | Proceeds from issuance of common stock | 1,206 | 1,108 | Proceeds from issuance of common stock | 890 | 801 | ||||||||||||||||
Issuance of noncontrolling interests | Issuance of noncontrolling interests | 19,380 | 13,905 | Issuance of noncontrolling interests | 14,018 | 5,142 | ||||||||||||||||
Distribution to noncontrolling interests | Distribution to noncontrolling interests | (1,153) | (548) | Distribution to noncontrolling interests | (1,920) | (699) | ||||||||||||||||
Net cash used in financing activities | Net cash used in financing activities | (2,546,559) | (587,131) | Net cash used in financing activities | (1,632,819) | (1,340,636) | ||||||||||||||||
Effect of exchange rate changes on cash | Effect of exchange rate changes on cash | (447) | (175) | Effect of exchange rate changes on cash | (84) | (179) | ||||||||||||||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (150,860) | 292,683 | ||||||||||||||||||||
Net decrease in cash, cash equivalents, and restricted cash | Net decrease in cash, cash equivalents, and restricted cash | (543,591) | (20,147) | |||||||||||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | Cash, cash equivalents, and restricted cash, beginning of period | 1,194,189 | 958,395 | Cash, cash equivalents, and restricted cash, beginning of period | 1,357,616 | 1,194,189 | ||||||||||||||||
Cash, cash equivalents, and restricted cash, end of period | Cash, cash equivalents, and restricted cash, end of period | $ | 1,043,329 | 1,251,078 | Cash, cash equivalents, and restricted cash, end of period | $ | 814,025 | 1,174,042 |
Supplemental disclosures of cash flow information: | Supplemental disclosures of cash flow information: | Supplemental disclosures of cash flow information: | ||||||||||||||||||||
Cash disbursements made for interest | Cash disbursements made for interest | $ | 196,278 | 117,336 | Cash disbursements made for interest | $ | 386,686 | 89,281 | ||||||||||||||
Cash disbursements made for income taxes, net of refunds and credits received (a) | Cash disbursements made for income taxes, net of refunds and credits received (a) | $ | 37,467 | 10,921 | Cash disbursements made for income taxes, net of refunds and credits received (a) | $ | 43,510 | 21,137 | ||||||||||||||
Cash disbursements made for operating leases | Cash disbursements made for operating leases | $ | 5,221 | 6,003 | Cash disbursements made for operating leases | $ | 3,476 | 3,538 | ||||||||||||||
Non-cash operating, investing, and financing activity: | ||||||||||||||||||||||
Noncash operating, investing, and financing activity: | Noncash operating, investing, and financing activity: | |||||||||||||||||||||
ROU assets obtained in exchange for lease obligations | ROU assets obtained in exchange for lease obligations | $ | 5,981 | 4,026 | ROU assets obtained in exchange for lease obligations | $ | 18,485 | 746 | ||||||||||||||
Receipt of beneficial interest in consumer loan securitizations | $ | 8,336 | 23,506 | |||||||||||||||||||
Receipt of beneficial interest in consumer loan securitizations as consideration from sale of loans | Receipt of beneficial interest in consumer loan securitizations as consideration from sale of loans | $ | 53,896 | 3,660 | ||||||||||||||||||
Receipt of asset-backed investment securities as consideration from sale of loans | Receipt of asset-backed investment securities as consideration from sale of loans | $ | 58,182 | — | ||||||||||||||||||
Distribution to noncontrolling interests | Distribution to noncontrolling interests | $ | 31,716 | 6,406 | Distribution to noncontrolling interests | $ | 11,050 | 14,462 | ||||||||||||||
Issuance of noncontrolling interests | Issuance of noncontrolling interests | $ | 5,917 | 2,082 | Issuance of noncontrolling interests | $ | 1,114 | 6,137 |
As of | As of | As of | As of | As of | As of | As of | As of | |||||||||||||||||||||||||||||||||||||||
September 30, 2022 | December 31, 2021 | September 30, 2021 | December 31, 2020 | June 30, 2023 | December 31, 2022 | June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||
Total cash and cash equivalents | Total cash and cash equivalents | $ | 63,198 | 125,563 | 191,936 | 121,249 | Total cash and cash equivalents | $ | 121,769 | 118,146 | 128,499 | 125,563 | ||||||||||||||||||||||||||||||||||
Restricted cash | Restricted cash | 799,212 | 741,981 | 764,089 | 553,175 | Restricted cash | 484,223 | 945,159 | 754,693 | 741,981 | ||||||||||||||||||||||||||||||||||||
Restricted cash - due to customers | Restricted cash - due to customers | 180,919 | 326,645 | 295,053 | 283,971 | Restricted cash - due to customers | 208,033 | 294,311 | 290,850 | 326,645 | ||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash | Cash, cash equivalents, and restricted cash | $ | 1,043,329 | 1,194,189 | 1,251,078 | 958,395 | Cash, cash equivalents, and restricted cash | $ | 814,025 | 1,357,616 | 1,174,042 | 1,194,189 |
As of | As of | As of | As of | |||||||||||||||||||
September 30, 2022 | December 31, 2021 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||
Non-Nelnet Bank: | Non-Nelnet Bank: | Non-Nelnet Bank: | ||||||||||||||||||||
Federally insured student loans: | ||||||||||||||||||||||
Federally insured loans: | Federally insured loans: | |||||||||||||||||||||
Stafford and other | Stafford and other | $ | 3,298,138 | 3,904,000 | Stafford and other | $ | 3,245,540 | 3,389,178 | ||||||||||||||
Consolidation | Consolidation | 11,002,253 | 13,187,047 | Consolidation | 9,574,202 | 10,177,295 | ||||||||||||||||
Total | Total | 14,300,391 | 17,091,047 | Total | 12,819,742 | 13,566,473 | ||||||||||||||||
Private education loans | Private education loans | 262,183 | 299,442 | Private education loans | 230,056 | 252,383 | ||||||||||||||||
Consumer and other loans | Consumer and other loans | 231,441 | 51,301 | Consumer and other loans | 189,327 | 350,915 | ||||||||||||||||
Non-Nelnet Bank loans | Non-Nelnet Bank loans | 14,794,015 | 17,441,790 | Non-Nelnet Bank loans | 13,239,125 | 14,169,771 | ||||||||||||||||
Nelnet Bank: | Nelnet Bank: | Nelnet Bank: | ||||||||||||||||||||
Federally insured student loans | 72,905 | 88,011 | ||||||||||||||||||||
Federally insured loans | Federally insured loans | 61,501 | 65,913 | |||||||||||||||||||
Private education loans | Private education loans | 356,571 | 169,890 | Private education loans | 352,319 | 353,882 | ||||||||||||||||
Consumer and other loans | Consumer and other loans | 30,668 | — | |||||||||||||||||||
Nelnet Bank loans | Nelnet Bank loans | 429,476 | 257,901 | Nelnet Bank loans | 444,488 | 419,795 | ||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 793,838 | 788,552 | Accrued interest receivable | 818,709 | 816,864 | ||||||||||||||||
Loan discount, net of unamortized loan premiums and deferred origination costs | Loan discount, net of unamortized loan premiums and deferred origination costs | (22,021) | (25,933) | Loan discount, net of unamortized loan premiums and deferred origination costs | (27,447) | (30,714) | ||||||||||||||||
Allowance for loan losses: | Allowance for loan losses: | Allowance for loan losses: | ||||||||||||||||||||
Non-Nelnet Bank: | Non-Nelnet Bank: | Non-Nelnet Bank: | ||||||||||||||||||||
Federally insured loans | Federally insured loans | (87,778) | (103,381) | Federally insured loans | (74,061) | (83,593) | ||||||||||||||||
Private education loans | Private education loans | (15,577) | (16,143) | Private education loans | (14,322) | (15,411) | ||||||||||||||||
Consumer and other loans | Consumer and other loans | (13,290) | (6,481) | Consumer and other loans | (20,005) | (30,263) | ||||||||||||||||
Non-Nelnet Bank allowance for loan losses | Non-Nelnet Bank allowance for loan losses | (116,645) | (126,005) | Non-Nelnet Bank allowance for loan losses | (108,388) | (129,267) | ||||||||||||||||
Nelnet Bank: | Nelnet Bank: | Nelnet Bank: | ||||||||||||||||||||
Federally insured loans | Federally insured loans | (164) | (268) | Federally insured loans | (154) | (170) | ||||||||||||||||
Private education loans | Private education loans | (2,248) | (840) | Private education loans | (2,905) | (2,390) | ||||||||||||||||
Consumer and other loans | Consumer and other loans | (2,816) | — | |||||||||||||||||||
Nelnet Bank allowance for loan losses | Nelnet Bank allowance for loan losses | (2,412) | (1,108) | Nelnet Bank allowance for loan losses | (5,875) | (2,560) | ||||||||||||||||
$ | 15,876,251 | 18,335,197 | $ | 14,360,612 | 15,243,889 |
As of | As of | As of | As of | |||||||||||||||||||
September 30, 2022 | December 31, 2021 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||
Non-Nelnet Bank: | Non-Nelnet Bank: | Non-Nelnet Bank: | ||||||||||||||||||||
Federally insured student loans (a) | 0.61 | % | 0.60 | % | ||||||||||||||||||
Federally insured loans (a) | Federally insured loans (a) | 0.58 | % | 0.62 | % | |||||||||||||||||
Private education loans | Private education loans | 5.94 | % | 5.39 | % | Private education loans | 6.23 | % | 6.11 | % | ||||||||||||
Consumer and other loans (b) | 5.74 | % | 12.63 | % | ||||||||||||||||||
Consumer and other loans | Consumer and other loans | 10.57 | % | 8.62 | % | |||||||||||||||||
Nelnet Bank: | Nelnet Bank: | Nelnet Bank: | ||||||||||||||||||||
Federally insured student loans (a) | 0.22 | % | 0.30 | % | ||||||||||||||||||
Federally insured loans (a) | Federally insured loans (a) | 0.25 | % | 0.26 | % | |||||||||||||||||
Private education loans | Private education loans | 0.63 | % | 0.49 | % | Private education loans | 0.82 | % | 0.68 | % | ||||||||||||
Consumer and other loans | Consumer and other loans | 9.18 | % | — |
Loans sold (par value) | Gain (loss) | Loan type | Residual interest received in securitization | |||||||||||||||||||||||
Six months ended June 30, 2023 | ||||||||||||||||||||||||||
January 31 | $ | 97,350 | (1,441) | Home equity | 64.8 | % | (a) | |||||||||||||||||||
January 31 | 42,275 | 4,350 | Consumer | 13.3 | ||||||||||||||||||||||
March 2 | 122,277 | 8,903 | Consumer | 24.6 | (a) | |||||||||||||||||||||
April 4 | 5,633 | 659 | Consumer | — | ||||||||||||||||||||||
April 13 | 24,980 | 3,123 | Consumer | 11.3 | ||||||||||||||||||||||
May 2 | 127,663 | 11,729 | Consumer | 26.5 | ||||||||||||||||||||||
$ | 420,178 | 27,323 | ||||||||||||||||||||||||
Six months ended June 30, 2022 | ||||||||||||||||||||||||||
January 26 | $ | 18,125 | 2,989 | Consumer | 6.6 | % | ||||||||||||||||||||
June 30 | 114 | — | Home equity | — | ||||||||||||||||||||||
$ | 18,239 | 2,989 |
Balance at beginning of period | Provision (negative provision) for loan losses | Charge-offs | Recoveries | Initial allowance on loans purchased with credit deterioration (a) | Loan sales | Balance at end of period | |||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | $ | 92,593 | 888 | (5,715) | — | 12 | — | 87,778 | |||||||||||||||||||||||||||||||||||||||
Private education loans | 15,253 | 1,154 | (1,066) | 236 | — | — | 15,577 | ||||||||||||||||||||||||||||||||||||||||
Consumer and other loans | 10,576 | 7,173 | (1,021) | 147 | — | (3,585) | 13,290 | ||||||||||||||||||||||||||||||||||||||||
Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | 258 | (94) | — | — | — | — | 164 | ||||||||||||||||||||||||||||||||||||||||
Private education loans | 1,744 | 504 | — | — | — | — | 2,248 | ||||||||||||||||||||||||||||||||||||||||
$ | 120,424 | 9,625 | (7,802) | 383 | 12 | (3,585) | 119,057 | ||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | $ | 120,802 | 4,452 | (10,330) | — | 935 | — | 115,859 | |||||||||||||||||||||||||||||||||||||||
Private education loans | 19,403 | (1,208) | (954) | 113 | — | (301) | 17,053 | ||||||||||||||||||||||||||||||||||||||||
Consumer and other loans | 4,702 | 2,696 | (1,133) | 187 | — | (2,023) | 4,429 | ||||||||||||||||||||||||||||||||||||||||
Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | 245 | 44 | — | — | — | — | 289 | ||||||||||||||||||||||||||||||||||||||||
Private education loans | 567 | (157) | — | 4 | — | — | 414 | ||||||||||||||||||||||||||||||||||||||||
$ | 145,719 | 5,827 | (12,417) | 304 | 935 | (2,324) | 138,044 | ||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank | |||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | $ | 103,381 | 505 | (16,264) | — | 156 | — | 87,778 | |||||||||||||||||||||||||||||||||||||||
Private education loans | 16,143 | 1,971 | (3,072) | 531 | — | 4 | 15,577 | ||||||||||||||||||||||||||||||||||||||||
Consumer and other loans | 6,481 | 14,702 | (2,489) | 465 | — | (5,869) | 13,290 | ||||||||||||||||||||||||||||||||||||||||
Nelnet Bank | |||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | 268 | (102) | (2) | — | — | — | 164 | ||||||||||||||||||||||||||||||||||||||||
Private education loans | 840 | 1,499 | (87) | — | — | (4) | 2,248 | ||||||||||||||||||||||||||||||||||||||||
$ | 127,113 | 18,575 | (21,914) | 996 | 156 | (5,869) | 119,057 | ||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank | |||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | $ | 128,590 | (3,428) | (11,563) | — | 2,260 | — | 115,859 | |||||||||||||||||||||||||||||||||||||||
Private education loans | 19,529 | (781) | (1,850) | 454 | — | (299) | 17,053 | ||||||||||||||||||||||||||||||||||||||||
Consumer and other loans | 27,256 | (7,016) | (4,547) | 668 | — | (11,932) | 4,429 | ||||||||||||||||||||||||||||||||||||||||
Nelnet Bank | |||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | — | 289 | — | — | — | — | 289 | ||||||||||||||||||||||||||||||||||||||||
Private education loans | 323 | 89 | — | 4 | — | (2) | 414 | ||||||||||||||||||||||||||||||||||||||||
$ | 175,698 | (10,847) | (17,960) | 1,126 | 2,260 | (12,233) | 138,044 |
Balance at beginning of period | Provision (negative provision) for loan losses | Charge-offs | Recoveries | Initial allowance on loans purchased with credit deterioration | Loan sales | Balance at end of period | |||||||||||||||||||||||||||||||||||
Three months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||
Federally insured loans | $ | 79,331 | — | (5,270) | — | — | — | 74,061 | |||||||||||||||||||||||||||||||||
Private education loans | 15,175 | — | (1,069) | 216 | — | — | 14,322 | ||||||||||||||||||||||||||||||||||
Consumer and other loans | 35,317 | 8,099 | (2,881) | 441 | — | (20,971) | 20,005 | ||||||||||||||||||||||||||||||||||
Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||
Federally insured loans | 160 | (4) | (2) | — | — | — | 154 | ||||||||||||||||||||||||||||||||||
Private education loans | 2,894 | 517 | (506) | — | — | — | 2,905 | ||||||||||||||||||||||||||||||||||
Consumer and other loans | 1,827 | 989 | — | — | — | — | 2,816 | ||||||||||||||||||||||||||||||||||
$ | 134,704 | 9,601 | (9,728) | 657 | — | (20,971) | 114,263 | ||||||||||||||||||||||||||||||||||
Three months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||
Federally insured loans | $ | 95,995 | 2,365 | (5,788) | — | 21 | — | 92,593 | |||||||||||||||||||||||||||||||||
Private education loans | 14,622 | 1,217 | (707) | 118 | — | 3 | 15,253 | ||||||||||||||||||||||||||||||||||
Consumer and other loans | 5,710 | 5,245 | (531) | 152 | — | — | 10,576 | ||||||||||||||||||||||||||||||||||
Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||
Federally insured loans | 247 | 13 | (2) | — | — | — | 258 | ||||||||||||||||||||||||||||||||||
Private education loans | 1,251 | 569 | (73) | — | — | (3) | 1,744 | ||||||||||||||||||||||||||||||||||
$ | 117,825 | 9,409 | (7,101) | 270 | 21 | — | 120,424 | ||||||||||||||||||||||||||||||||||
Six months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||
Federally insured loans | $ | 83,593 | 2,411 | (11,949) | — | 6 | — | 74,061 | |||||||||||||||||||||||||||||||||
Private education loans | 15,411 | 240 | (1,709) | 380 | — | — | 14,322 | ||||||||||||||||||||||||||||||||||
Consumer and other loans | 30,263 | 37,306 | (5,148) | 661 | — | (43,077) | 20,005 | ||||||||||||||||||||||||||||||||||
Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||
Federally insured loans | 170 | (12) | (4) | — | — | — | 154 | ||||||||||||||||||||||||||||||||||
Private education loans | 2,390 | 1,129 | (614) | — | — | — | 2,905 | ||||||||||||||||||||||||||||||||||
Consumer and other loans | — | 2,816 | — | — | — | — | 2,816 | ||||||||||||||||||||||||||||||||||
$ | 131,827 | 43,890 | (19,424) | 1,041 | 6 | (43,077) | 114,263 | ||||||||||||||||||||||||||||||||||
Six months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||
Federally insured loans | $ | 103,381 | (383) | (10,549) | — | 144 | — | 92,593 | |||||||||||||||||||||||||||||||||
Private education loans | 16,143 | 817 | (2,006) | 295 | — | 4 | 15,253 | ||||||||||||||||||||||||||||||||||
Consumer and other loans | 6,481 | 7,529 | (1,469) | 319 | — | (2,284) | 10,576 | ||||||||||||||||||||||||||||||||||
Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||
Federally insured loans | 268 | (8) | (2) | — | — | — | 258 | ||||||||||||||||||||||||||||||||||
Private education loans | 840 | 995 | (87) | — | — | (4) | 1,744 | ||||||||||||||||||||||||||||||||||
$ | 127,113 | 8,950 | (14,113) | 614 | 144 | (2,284) | 120,424 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Non-Nelnet Bank: | |||||||||||||||||||||||
Federally insured loans | 0.16 | % | 0.14 | % | 0.18 | % | 0.13 | % | |||||||||||||||
Private education loans | 1.45 | % | 0.85 | % | 1.11 | % | 1.22 | % | |||||||||||||||
Consumer and other loans | 4.07 | % | 1.51 | % | 3.22 | % | 3.24 | % | |||||||||||||||
Nelnet Bank: | |||||||||||||||||||||||
Federally insured loans | 0.01 | % | 0.01 | % | 0.01 | % | 0.00 | % | |||||||||||||||
Private education loans | 0.57 | % | 0.09 | % | 0.35 | % | 0.06 | % | |||||||||||||||
Consumer and other loans | — | — | — | — |
As of September 30, 2022 | As of December 31, 2021 | As of September 30, 2021 | As of June 30, 2023 | As of December 31, 2022 | As of June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans - Non-Nelnet Bank: | Federally insured loans - Non-Nelnet Bank: | Federally insured loans - Non-Nelnet Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in-school/grace/deferment | Loans in-school/grace/deferment | $ | 719,724 | 5.0 | % | $ | 829,624 | 4.9 | % | $ | 909,228 | 5.0 | % | Loans in-school/grace/deferment | $ | 612,357 | 4.8 | % | $ | 637,919 | 4.7 | % | $ | 763,957 | 4.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | Loans in forbearance | 1,384,709 | 9.7 | 1,118,667 | 6.5 | 1,826,082 | 10.1 | Loans in forbearance | 930,629 | 7.3 | 1,103,181 | 8.1 | 1,246,882 | 8.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 10,454,046 | 85.7 | % | 12,847,685 | 84.9 | % | 13,525,751 | 88.1 | % | Loans current | 9,609,634 | 85.2 | % | 10,173,859 | 86.0 | % | 11,551,817 | 86.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | Loans delinquent 31-60 days | 431,471 | 3.6 | 895,656 | 5.9 | 548,670 | 3.6 | Loans delinquent 31-60 days | 496,953 | 4.4 | 415,305 | 3.5 | 464,234 | 3.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | Loans delinquent 61-90 days | 261,616 | 2.1 | 352,449 | 2.3 | 286,681 | 1.9 | Loans delinquent 61-90 days | 360,728 | 3.2 | 253,565 | 2.2 | 309,252 | 2.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91-120 days | Loans delinquent 91-120 days | 185,753 | 1.5 | 251,075 | 1.7 | 163,447 | 1.1 | Loans delinquent 91-120 days | 157,685 | 1.4 | 180,029 | 1.5 | 187,452 | 1.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 121-270 days | Loans delinquent 121-270 days | 540,555 | 4.4 | 592,449 | 3.9 | 467,441 | 3.0 | Loans delinquent 121-270 days | 457,100 | 4.1 | 534,410 | 4.5 | 638,189 | 4.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 271 days or greater | Loans delinquent 271 days or greater | 322,517 | 2.7 | 203,442 | 1.3 | 354,188 | 2.3 | Loans delinquent 271 days or greater | 194,656 | 1.7 | 268,205 | 2.3 | 267,828 | 2.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 12,195,958 | 85.3 | 100.0 | % | 15,142,756 | 88.6 | 100.0 | % | 15,346,178 | 84.9 | 100.0 | % | Total loans in repayment | 11,276,756 | 87.9 | 100.0 | % | 11,825,373 | 87.2 | 100.0 | % | 13,418,772 | 87.0 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total federally insured loans | Total federally insured loans | 14,300,391 | 100.0 | % | 17,091,047 | 100.0 | % | 18,081,488 | 100.0 | % | Total federally insured loans | 12,819,742 | 100.0 | % | 13,566,473 | 100.0 | % | 15,429,611 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 786,494 | 784,716 | 831,142 | Accrued interest receivable | 810,489 | 808,150 | 775,337 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan discount, net of unamortized premiums and deferred origination costs | Loan discount, net of unamortized premiums and deferred origination costs | (25,381) | (28,309) | (23,229) | Loan discount, net of unamortized premiums and deferred origination costs | (33,764) | (35,468) | (26,674) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (87,778) | (103,381) | (115,859) | Allowance for loan losses | (74,061) | (83,593) | (92,593) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total federally insured loans and accrued interest receivable, net of allowance for loan losses | Total federally insured loans and accrued interest receivable, net of allowance for loan losses | $ | 14,973,726 | $ | 17,744,073 | $ | 18,773,542 | Total federally insured loans and accrued interest receivable, net of allowance for loan losses | $ | 13,522,406 | $ | 14,255,562 | $ | 16,085,681 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans - Non-Nelnet Bank: | Private education loans - Non-Nelnet Bank: | Private education loans - Non-Nelnet Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in-school/grace/deferment | Loans in-school/grace/deferment | $ | 15,556 | 5.9 | % | $ | 9,661 | 3.2 | % | $ | 10,282 | 3.2 | % | Loans in-school/grace/deferment | $ | 10,440 | 4.6 | % | $ | 12,756 | 5.1 | % | $ | 15,403 | 5.6 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | Loans in forbearance | 2,745 | 1.1 | 3,601 | 1.2 | 3,554 | 1.1 | Loans in forbearance | 1,874 | 0.8 | 2,017 | 0.8 | 2,447 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 238,926 | 98.0 | % | 280,457 | 98.0 | % | 300,231 | 98.3 | % | Loans current | 212,522 | 97.6 | % | 232,539 | 97.9 | % | 250,268 | 98.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | Loans delinquent 31-60 days | 2,014 | 0.8 | 2,403 | 0.8 | 1,870 | 0.6 | Loans delinquent 31-60 days | 1,643 | 0.7 | 2,410 | 1.0 | 1,980 | 0.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | Loans delinquent 61-90 days | 992 | 0.4 | 976 | 0.3 | 912 | 0.3 | Loans delinquent 61-90 days | 1,253 | 0.6 | 767 | 0.3 | 782 | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91 days or greater | Loans delinquent 91 days or greater | 1,950 | 0.8 | 2,344 | 0.9 | 2,363 | 0.8 | Loans delinquent 91 days or greater | 2,324 | 1.1 | 1,894 | 0.8 | 2,063 | 0.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 243,882 | 93.0 | 100.0 | % | 286,180 | 95.6 | 100.0 | % | 305,376 | 95.7 | 100.0 | % | Total loans in repayment | 217,742 | 94.6 | 100.0 | % | 237,610 | 94.1 | 100.0 | % | 255,093 | 93.5 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans | Total private education loans | 262,183 | 100.0 | % | 299,442 | 100.0 | % | 319,212 | 100.0 | % | Total private education loans | 230,056 | 100.0 | % | 252,383 | 100.0 | % | 272,943 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 2,207 | 1,960 | 2,076 | Accrued interest receivable | 2,196 | 2,146 | 2,058 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan discount, net of unamortized premiums | (185) | (1,123) | (1,496) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan premium, net of unaccreted discount | Loan premium, net of unaccreted discount | 183 | (38) | 94 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (15,577) | (16,143) | (17,053) | Allowance for loan losses | (14,322) | (15,411) | (15,253) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans and accrued interest receivable, net of allowance for loan losses | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 248,628 | $ | 284,136 | $ | 302,739 | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 218,113 | $ | 239,080 | $ | 259,842 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer and other loans - Non-Nelnet Bank: | Consumer and other loans - Non-Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in deferment | Loans in deferment | $ | 102 | 0.1 | % | $ | 109 | 0.0 | % | $ | 64 | 0.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 181,864 | 96.1 | % | 346,812 | 98.9 | % | 150,812 | 98.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | Loans delinquent 31-60 days | 2,794 | 1.5 | 1,906 | 0.5 | 515 | 0.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | Loans delinquent 61-90 days | 2,533 | 1.3 | 764 | 0.2 | 435 | 0.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91 days or greater | Loans delinquent 91 days or greater | 2,034 | 1.1 | 1,324 | 0.4 | 757 | 0.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 189,225 | 99.9 | 100.0 | % | 350,806 | 100.0 | 100.0 | % | 152,519 | 100.0 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer and other loans | Total consumer and other loans | 189,327 | 100.0 | % | 350,915 | 100.0 | % | 152,583 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 2,246 | 3,658 | 1,376 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan premium, net of unaccreted discount | Loan premium, net of unaccreted discount | 750 | (588) | (1,965) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (20,005) | (30,263) | (10,576) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | $ | 172,318 | $ | 323,722 | $ | 141,418 |
As of September 30, 2022 | As of December 31, 2021 | As of September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer and other loans - Non-Nelnet Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in deferment | $ | 29 | 0.0 | % | $ | 43 | 0.1 | % | $ | 18 | 0.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | 228,827 | 98.9 | % | 49,697 | 97.0 | % | 35,744 | 96.6 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | 1,019 | 0.4 | 414 | 0.8 | 319 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | 427 | 0.2 | 322 | 0.6 | 243 | 0.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91 days or greater | 1,139 | 0.5 | 825 | 1.6 | 670 | 1.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | 231,412 | 100.0 | 100.0 | % | 51,258 | 99.9 | 100.0 | % | 36,976 | 100.0 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer and other loans | 231,441 | 100.0 | % | 51,301 | 100.0 | % | 36,994 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | 2,561 | 396 | 280 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan discount, net of unamortized premiums | (1,847) | 913 | 664 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (13,290) | (6,481) | (4,429) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | $ | 218,865 | $ | 46,129 | $ | 33,509 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2023 | As of December 31, 2022 | As of June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans - Nelnet Bank (a): | Federally insured loans - Nelnet Bank (a): | Federally insured loans - Nelnet Bank (a): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in-school/grace/deferment | Loans in-school/grace/deferment | $ | 274 | 0.4 | % | $ | 330 | 0.4 | % | $ | 283 | 0.3 | % | Loans in-school/grace/deferment | $ | 239 | 0.4 | % | $ | 241 | 0.4 | % | $ | 283 | 0.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | Loans in forbearance | 2,551 | 3.5 | 1,057 | 1.2 | 1,722 | 1.8 | Loans in forbearance | 665 | 1.1 | 981 | 1.5 | 1,029 | 1.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 68,970 | 98.4 | % | 85,599 | 98.8 | % | 91,366 | 99.4 | % | Loans current | 59,041 | 97.5 | % | 63,225 | 97.8 | % | 74,883 | 98.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 30-59 days | Loans delinquent 30-59 days | 353 | 0.5 | 816 | 1.0 | 277 | 0.3 | Loans delinquent 30-59 days | 320 | 0.5 | 436 | 0.7 | 587 | 0.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 60-89 days | Loans delinquent 60-89 days | 130 | 0.2 | — | — | 35 | 0.0 | Loans delinquent 60-89 days | 301 | 0.5 | 466 | 0.7 | 165 | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 90-119 days | Loans delinquent 90-119 days | 5 | 0.0 | — | — | 45 | 0.1 | Loans delinquent 90-119 days | 372 | 0.6 | 222 | 0.3 | 245 | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 120-270 days | Loans delinquent 120-270 days | 508 | 0.7 | 209 | 0.2 | 202 | 0.2 | Loans delinquent 120-270 days | 448 | 0.7 | 183 | 0.3 | 236 | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 271 days or greater | Loans delinquent 271 days or greater | 114 | 0.2 | — | — | — | — | Loans delinquent 271 days or greater | 115 | 0.2 | 159 | 0.2 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 70,080 | 96.1 | 100.0 | % | 86,624 | 98.4 | 100.0 | % | 91,925 | 97.9 | 100.0 | % | Total loans in repayment | 60,597 | 98.5 | 100.0 | % | 64,691 | 98.1 | 100.0 | % | 76,116 | 98.3 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total federally insured loans | Total federally insured loans | 72,905 | 100.0 | % | 88,011 | 100.0 | % | 93,930 | 100.0 | % | Total federally insured loans | 61,501 | 100.0 | % | 65,913 | 100.0 | % | 77,428 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 1,607 | 1,216 | 1,177 | Accrued interest receivable | 1,973 | 1,758 | 1,381 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan premium | Loan premium | 23 | 26 | 28 | Loan premium | 18 | 20 | 23 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (164) | (268) | (289) | Allowance for loan losses | (154) | (170) | (258) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total federally insured loans and accrued interest receivable, net of allowance for loan losses | Total federally insured loans and accrued interest receivable, net of allowance for loan losses | $ | 74,371 | $ | 88,985 | $ | 94,846 | Total federally insured loans and accrued interest receivable, net of allowance for loan losses | $ | 63,338 | $ | 67,521 | $ | 78,574 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans - Nelnet Bank (a): | Private education loans - Nelnet Bank (a): | Private education loans - Nelnet Bank (a): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in-school/grace/deferment | Loans in-school/grace/deferment | $ | 10,888 | 3.1 | % | $ | 150 | 0.1 | % | $ | 82 | 0.1 | % | Loans in-school/grace/deferment | $ | 16,996 | 4.8 | % | $ | 11,580 | 3.3 | % | $ | 1,160 | 0.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | Loans in forbearance | 524 | 0.1 | 460 | 0.3 | 193 | 0.2 | Loans in forbearance | 1,797 | 0.5 | 864 | 0.2 | 1,236 | 0.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 344,469 | 99.8 | % | 169,157 | 99.9 | % | 98,120 | 100.0 | % | Loans current | 332,205 | 99.6 | % | 340,830 | 99.8 | % | 343,148 | 99.8 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 30-59 days | Loans delinquent 30-59 days | 197 | 0.1 | 51 | 0.0 | — | — | Loans delinquent 30-59 days | 691 | 0.2 | 167 | 0.1 | 169 | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 60-89 days | Loans delinquent 60-89 days | 79 | 0.0 | — | — | — | — | Loans delinquent 60-89 days | 241 | 0.1 | 32 | 0.0 | 412 | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 90 days or greater | Loans delinquent 90 days or greater | 414 | 0.1 | 72 | 0.1 | — | — | Loans delinquent 90 days or greater | 389 | 0.1 | 409 | 0.1 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 345,159 | 96.8 | 100.0 | % | 169,280 | 99.6 | 100.0 | % | 98,120 | 99.7 | 100.0 | % | Total loans in repayment | 333,526 | 94.7 | 100.0 | % | 341,438 | 96.5 | 100.0 | % | 343,729 | 99.3 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans | Total private education loans | 356,571 | 100.0 | % | 169,890 | 100.0 | % | 98,395 | 100.0 | % | Total private education loans | 352,319 | 100.0 | % | 353,882 | 100.0 | % | 346,125 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 969 | 264 | 156 | Accrued interest receivable | 1,591 | 1,152 | 539 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred origination costs, net of unaccreted discount | Deferred origination costs, net of unaccreted discount | 5,369 | 2,560 | 1,430 | Deferred origination costs, net of unaccreted discount | 5,366 | 5,360 | 5,909 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (2,248) | (840) | (414) | Allowance for loan losses | (2,905) | (2,390) | (1,744) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans and accrued interest receivable, net of allowance for loan losses | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 360,661 | $ | 171,874 | $ | 99,567 | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 356,371 | $ | 358,004 | $ | 350,829 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer and other loans - Nelnet Bank (a): | Consumer and other loans - Nelnet Bank (a): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in deferment | Loans in deferment | $ | 6 | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 30,120 | 98.2 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 30-59 days | Loans delinquent 30-59 days | 277 | 0.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 60-89 days | Loans delinquent 60-89 days | 205 | 0.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 90 days or greater | Loans delinquent 90 days or greater | 60 | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 30,662 | 100.0 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer and other loans | Total consumer and other loans | 30,668 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 214 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan premium | Loan premium | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (2,816) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | $ | 28,066 |
Loan balance as of September 30, 2022 | Loan balance as of June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2022 | 2021 | 2020 | Total | Six months ended June 30, 2023 | 2022 | 2021 | 2020 | Total | ||||||||||||||||||||||||||||||||||||||||||||
FICO at origination: | FICO at origination: | FICO at origination: | ||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 705 | Less than 705 | $ | 5,105 | 5,516 | 350 | 10,971 | Less than 705 | $ | 1,731 | 5,869 | 5,100 | 342 | 13,042 | |||||||||||||||||||||||||||||||||||||||
705 - 734 | 705 - 734 | 21,916 | 10,745 | 537 | 33,198 | 705 - 734 | 3,936 | 22,881 | 9,776 | 506 | 37,099 | |||||||||||||||||||||||||||||||||||||||||
735 - 764 | 735 - 764 | 34,495 | 17,107 | 1,485 | 53,087 | 735 - 764 | 4,109 | 34,497 | 15,794 | 1,401 | 55,801 | |||||||||||||||||||||||||||||||||||||||||
765 - 794 | 765 - 794 | 57,481 | 32,421 | 1,639 | 91,541 | 765 - 794 | 1,938 | 54,989 | 29,021 | 1,531 | 87,479 | |||||||||||||||||||||||||||||||||||||||||
Greater than 794 | Greater than 794 | 88,097 | 73,190 | 6,487 | 167,774 | Greater than 794 | 5,896 | 82,963 | 64,415 | 5,624 | 158,898 | |||||||||||||||||||||||||||||||||||||||||
$ | 207,094 | 138,979 | 10,498 | 356,571 | $ | 17,610 | 201,199 | 124,106 | 9,404 | 352,319 |
Loan balance as of December 31, 2021 | Loan balance as of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||
2021 | 2020 | Total | 2022 | 2021 | 2020 | Total | ||||||||||||||||||||||||||||||||||
FICO at origination: | FICO at origination: | FICO at origination: | ||||||||||||||||||||||||||||||||||||||
Less than 705 | Less than 705 | $ | 6,481 | 100 | 6,581 | Less than 705 | $ | 5,898 | 5,389 | 348 | 11,635 | |||||||||||||||||||||||||||||
705 - 734 | 705 - 734 | 11,697 | 276 | 11,973 | 705 - 734 | 23,392 | 10,543 | 542 | 34,477 | |||||||||||||||||||||||||||||||
735 - 764 | 735 - 764 | 18,611 | 1,072 | 19,683 | 735 - 764 | 35,456 | 16,686 | 1,473 | 53,615 | |||||||||||||||||||||||||||||||
765 - 794 | 765 - 794 | 36,274 | 1,467 | 37,741 | 765 - 794 | 57,141 | 31,035 | 1,622 | 89,798 | |||||||||||||||||||||||||||||||
Greater than 794 | Greater than 794 | 86,141 | 7,771 | 93,912 | Greater than 794 | 87,959 | 70,135 | 6,263 | 164,357 | |||||||||||||||||||||||||||||||
$ | 159,204 | 10,686 | 169,890 | $ | 209,846 | 133,788 | 10,248 | 353,882 |
Nine months ended September 30, 2022 | 2021 | 2020 | 2019 | 2018 | Prior years | Total | Six months ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | Prior years | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans - Non-Nelnet Bank: | Private education loans - Non-Nelnet Bank: | Private education loans - Non-Nelnet Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in school/grace/deferment | $ | 2,051 | 7,282 | 1,664 | 2,956 | 101 | 1,502 | 15,556 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in-school/grace/deferment | Loans in-school/grace/deferment | $ | — | 1,390 | 4,831 | 1,122 | 1,907 | 1,190 | 10,440 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | Loans in forbearance | — | 30 | 423 | 1,244 | 134 | 914 | 2,745 | Loans in forbearance | — | — | 62 | 311 | 451 | 1,050 | 1,874 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 3,877 | 2,912 | 55,156 | 42,006 | 172 | 134,803 | 238,926 | Loans current | 115 | 4,270 | 4,610 | 49,726 | 39,948 | 113,853 | 212,522 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | Loans delinquent 31-60 days | — | 11 | 9 | 174 | 38 | 1,782 | 2,014 | Loans delinquent 31-60 days | — | 12 | 3 | 221 | 95 | 1,312 | 1,643 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | Loans delinquent 61-90 days | — | 35 | 202 | 76 | — | 679 | 992 | Loans delinquent 61-90 days | — | — | — | 311 | 71 | 871 | 1,253 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91 days or greater | Loans delinquent 91 days or greater | — | — | 13 | — | — | 1,937 | 1,950 | Loans delinquent 91 days or greater | — | 29 | 5 | 100 | 110 | 2,080 | 2,324 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 3,877 | 2,958 | 55,380 | 42,256 | 210 | 139,201 | 243,882 | Total loans in repayment | 115 | 4,311 | 4,618 | 50,358 | 40,224 | 118,116 | 217,742 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans | Total private education loans | $ | 5,928 | 10,270 | 57,467 | 46,456 | 445 | 141,617 | 262,183 | Total private education loans | $ | 115 | 5,701 | 9,511 | 51,791 | 42,582 | 120,356 | 230,056 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 2,207 | Accrued interest receivable | 2,196 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan discount, net of unamortized premiums | (185) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan premium, net of unaccreted discount | Loan premium, net of unaccreted discount | 183 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (15,577) | Allowance for loan losses | (14,322) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans and accrued interest receivable, net of allowance for loan losses | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 248,628 | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 218,113 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross charge-offs - six months ended June 30, 2023 | Gross charge-offs - six months ended June 30, 2023 | $ | — | — | 5 | 2 | 381 | 1,321 | 1,709 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer and other loans - Non-Nelnet Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in deferment | $ | 20 | — | — | — | 9 | — | 29 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | 190,237 | 32,198 | 1,682 | 2,419 | 2,272 | 19 | 228,827 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | 535 | 320 | 60 | 76 | 28 | — | 1,019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | 328 | 73 | 3 | 13 | 10 | — | 427 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91 days or greater | 151 | 441 | 14 | 189 | 344 | — | 1,139 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | 191,251 | 33,032 | 1,759 | 2,697 | 2,654 | 19 | 231,412 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer and other loans | $ | 191,271 | 33,032 | 1,759 | 2,697 | 2,663 | 19 | 231,441 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | 2,561 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan discount, net of unamortized premiums | (1,847) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (13,290) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | $ | 218,865 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans - Nelnet Bank (a): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in school/grace/deferment | $ | 8,239 | 1,215 | 1,434 | — | — | — | 10,888 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | 221 | 211 | 92 | — | — | — | 524 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | 198,423 | 137,074 | 8,972 | — | — | — | 344,469 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 30-59 days | 132 | 65 | — | — | — | — | 197 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 60-89 days | 79 | — | — | — | — | — | 79 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 90 days or greater | — | 414 | — | — | — | — | 414 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | 198,634 | 137,553 | 8,972 | — | — | — | 345,159 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans | $ | 207,094 | 138,979 | 10,498 | — | — | — | 356,571 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | 969 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred origination costs, net of unaccreted discount | 5,369 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (2,248) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 360,661 |
Six months ended June 30, 2023 | 2022 | 2021 | 2020 | 2019 | Prior years | Total | |||||||||||||||||||||||||||||||||||
Consumer and other loans - Non-Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||
Loans in deferment | $ | 43 | 40 | 19 | — | — | — | 102 | |||||||||||||||||||||||||||||||||
Loans in repayment status: | |||||||||||||||||||||||||||||||||||||||||
Loans current | 120,588 | 53,714 | 5,662 | 457 | 956 | 487 | 181,864 | ||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | 1,040 | 1,565 | 153 | 24 | 8 | 4 | 2,794 | ||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | 1,458 | 770 | 227 | 20 | 50 | 8 | 2,533 | ||||||||||||||||||||||||||||||||||
Loans delinquent 91 days or greater | 337 | 970 | 131 | 61 | 199 | 336 | 2,034 | ||||||||||||||||||||||||||||||||||
Total loans in repayment | 123,423 | 57,019 | 6,173 | 562 | 1,213 | 835 | 189,225 | ||||||||||||||||||||||||||||||||||
Total consumer and other loans | $ | 123,466 | 57,059 | 6,192 | 562 | 1,213 | 835 | 189,327 | |||||||||||||||||||||||||||||||||
Accrued interest receivable | 2,246 | ||||||||||||||||||||||||||||||||||||||||
Loan premium, net of unaccreted discount | 750 | ||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (20,005) | ||||||||||||||||||||||||||||||||||||||||
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | $ | 172,318 | |||||||||||||||||||||||||||||||||||||||
Gross charge-offs - six months ended June 30, 2023 | $ | 265 | 4,272 | 439 | 27 | 55 | 90 | 5,148 | |||||||||||||||||||||||||||||||||
Private education loans - Nelnet Bank (a): | |||||||||||||||||||||||||||||||||||||||||
Loans in-school/grace/deferment | $ | 2,787 | 11,980 | 1,168 | 1,061 | — | — | 16,996 | |||||||||||||||||||||||||||||||||
Loans in forbearance | — | 969 | 828 | — | — | — | 1,797 | ||||||||||||||||||||||||||||||||||
Loans in repayment status: | |||||||||||||||||||||||||||||||||||||||||
Loans current | 14,772 | 187,799 | 121,291 | 8,343 | — | — | 332,205 | ||||||||||||||||||||||||||||||||||
Loans delinquent 30-59 days | — | 391 | 300 | — | — | — | 691 | ||||||||||||||||||||||||||||||||||
Loans delinquent 60-89 days | 31 | 48 | 162 | — | — | — | 241 | ||||||||||||||||||||||||||||||||||
Loans delinquent 90 days or greater | 20 | 12 | 357 | — | — | — | 389 | ||||||||||||||||||||||||||||||||||
Total loans in repayment | 14,823 | 188,250 | 122,110 | 8,343 | — | — | 333,526 | ||||||||||||||||||||||||||||||||||
Total private education loans | $ | 17,610 | 201,199 | 124,106 | 9,404 | — | — | 352,319 | |||||||||||||||||||||||||||||||||
Accrued interest receivable | 1,591 | ||||||||||||||||||||||||||||||||||||||||
Deferred origination costs, net of unaccreted discount | 5,366 | ||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (2,905) | ||||||||||||||||||||||||||||||||||||||||
Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 356,371 | |||||||||||||||||||||||||||||||||||||||
Gross charge-offs - six months ended June 30, 2023 | $ | — | 614 | — | — | — | — | 614 | |||||||||||||||||||||||||||||||||
Consumer and other loans - Nelnet Bank (a): | |||||||||||||||||||||||||||||||||||||||||
Loans in deferment | $ | 6 | — | — | — | — | — | 6 | |||||||||||||||||||||||||||||||||
Loans in repayment status: | |||||||||||||||||||||||||||||||||||||||||
Loans current | 29,547 | 518 | 55 | — | — | — | 30,120 | ||||||||||||||||||||||||||||||||||
Loans delinquent 30-59 days | 277 | — | — | — | — | — | 277 | ||||||||||||||||||||||||||||||||||
Loans delinquent 60-89 days | 205 | — | — | — | — | — | 205 | ||||||||||||||||||||||||||||||||||
Loans delinquent 90 days or greater | 60 | — | — | — | — | — | 60 | ||||||||||||||||||||||||||||||||||
Total loans in repayment | 30,089 | 518 | 55 | — | — | — | 30,662 | ||||||||||||||||||||||||||||||||||
Total consumer and other loans | $ | 30,095 | 518 | 55 | — | — | — | 30,668 | |||||||||||||||||||||||||||||||||
Accrued interest receivable | 214 | ||||||||||||||||||||||||||||||||||||||||
Loan premium | — | ||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (2,816) | ||||||||||||||||||||||||||||||||||||||||
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | $ | 28,066 | |||||||||||||||||||||||||||||||||||||||
Gross charge-offs - six months ended June 30, 2023 | $ | — | — | — | — | — | — | — |
As of September 30, 2022 | As of June 30, 2023 | ||||||||||||||||||||||||||||||||||||
Carrying amount | Interest rate range | Final maturity | Carrying amount | Interest rate range | Final maturity | ||||||||||||||||||||||||||||||||
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: | Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: | Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: | |||||||||||||||||||||||||||||||||||
Bonds and notes based on indices | Bonds and notes based on indices | $ | 13,056,109 | 2.89% - 5.08% | 8/26/30 - 9/25/69 | Bonds and notes based on indices | $ | 10,494,458 | 5.37% - 7.15% | 8/26/30 - 9/25/69 | |||||||||||||||||||||||||||
Bonds and notes based on auction | Bonds and notes based on auction | 208,660 | 0.00% - 2.82% | 3/22/32 - 8/27/46 | Bonds and notes based on auction | 91,335 | 0.00% - 6.18% | 3/22/32 - 11/26/46 | |||||||||||||||||||||||||||||
Total FFELP variable-rate bonds and notes | Total FFELP variable-rate bonds and notes | 13,264,769 | Total FFELP variable-rate bonds and notes | 10,585,793 | |||||||||||||||||||||||||||||||||
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | 646,956 | 1.42% - 3.45% | 10/25/67 - 8/27/68 | Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | 519,156 | 1.42% - 3.45% | 10/25/67 - 8/27/68 | |||||||||||||||||||||||||||||
FFELP loan warehouse facility | 249,543 | 3.20% | 11/22/23 | ||||||||||||||||||||||||||||||||||
FFELP loan warehouse facilities | FFELP loan warehouse facilities | 1,530,429 | 5.15% - 5.42% | 11/22/24 / 4/2/25 | |||||||||||||||||||||||||||||||||
Private education loan warehouse facility | Private education loan warehouse facility | 86,154 | 3.07% | 10/31/23 | Private education loan warehouse facility | 42,200 | 5.37% | 12/31/23 | |||||||||||||||||||||||||||||
Consumer loan warehouse facility | Consumer loan warehouse facility | 32,324 | 5.44% | 11/14/25 | |||||||||||||||||||||||||||||||||
Variable-rate bonds and notes issued in private education loan asset-backed securitizations | Variable-rate bonds and notes issued in private education loan asset-backed securitizations | 22,161 | 4.65% / 4.83% | 12/26/40 / 6/25/49 | Variable-rate bonds and notes issued in private education loan asset-backed securitizations | 16,628 | 6.65% | 6/25/49 | |||||||||||||||||||||||||||||
Fixed-rate bonds and notes issued in private education loan asset-backed securitization | Fixed-rate bonds and notes issued in private education loan asset-backed securitization | 24,056 | 3.60% / 5.35% | 12/26/40 / 12/28/43 | Fixed-rate bonds and notes issued in private education loan asset-backed securitization | 19,606 | 5.35% | 12/28/43 | |||||||||||||||||||||||||||||
Unsecured line of credit | Unsecured line of credit | — | — | 9/22/26 | Unsecured line of credit | — | — | 9/22/26 | |||||||||||||||||||||||||||||
Participation agreement | Participation agreement | 399,744 | 3.77% | 5/4/23 | Participation agreement | 6,781 | 5.84% | 5/4/24 | |||||||||||||||||||||||||||||
Repurchase agreements | Repurchase agreements | 506,968 | 0.97% - 4.26% | 10/7/22 - 11/27/24 | Repurchase agreements | 415,514 | 5.81% - 6.47% | 7/26/23 - 11/27/24 | |||||||||||||||||||||||||||||
Other - due to related party | Other - due to related party | 743 | 3.55% - 5.35% | 11/22/22 - 10/14/28 | Other - due to related party | 6,174 | 3.55% - 6.05% | 3/1/24 - 11/15/30 | |||||||||||||||||||||||||||||
15,201,094 | 13,174,605 | ||||||||||||||||||||||||||||||||||||
Discount on bonds and notes payable and debt issuance costs | Discount on bonds and notes payable and debt issuance costs | (158,499) | Discount on bonds and notes payable and debt issuance costs | (104,465) | |||||||||||||||||||||||||||||||||
Total | Total | $ | 15,042,595 | Total | $ | 13,070,140 |
As of December 31, 2021 | |||||||||||||||||
Carrying amount | Interest rate range | Final maturity | |||||||||||||||
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: | |||||||||||||||||
Bonds and notes based on indices | $ | 15,887,295 | 0.23% - 2.10% | 5/27/25 - 9/25/69 | |||||||||||||
Bonds and notes based on auction | 248,550 | 0.00% - 1.09% | 3/22/32 - 8/27/46 | ||||||||||||||
Total FFELP variable-rate bonds and notes | 16,135,845 | ||||||||||||||||
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | 772,935 | 1.42% - 3.45% | 10/25/67 - 8/27/68 | ||||||||||||||
FFELP loan warehouse facility | 5,048 | 0.21% | 5/22/23 | ||||||||||||||
Private education loan warehouse facility | 107,011 | 0.24% | 2/13/23 | ||||||||||||||
Variable-rate bonds and notes issued in private education loan asset-backed securitizations | 31,818 | 1.65% / 1.85% | 12/26/40 / 6/25/49 | ||||||||||||||
Fixed-rate bonds and notes issued in private education loan asset-backed securitization | 28,613 | 3.60% / 5.35% | 12/26/40 / 12/28/43 | ||||||||||||||
Unsecured line of credit | — | — | 9/22/26 | ||||||||||||||
Participation agreement | 253,969 | 0.78% | 5/4/22 | ||||||||||||||
Repurchase agreements | 483,848 | 0.66% - 1.46% | 5/27/22 - 12/20/23 | ||||||||||||||
Secured line of credit | 5,000 | 1.91% | 5/30/22 | ||||||||||||||
17,824,087 | |||||||||||||||||
Discount on bonds and notes payable and debt issuance costs | (192,998) | ||||||||||||||||
Total | $ | 17,631,089 |
As of December 31, 2022 | |||||||||||||||||
Carrying amount | Interest rate range | Final maturity | |||||||||||||||
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: | |||||||||||||||||
Bonds and notes based on indices | $ | 11,868,190 | 4.47% - 6.39% | 8/26/30 - 9/25/69 | |||||||||||||
Bonds and notes based on auction | 178,960 | 0.00% - 4.02% | 3/22/32 - 11/26/46 | ||||||||||||||
Total FFELP variable-rate bonds and notes | 12,047,150 | ||||||||||||||||
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | 594,051 | 1.42% - 3.45% | 10/25/67 - 8/27/68 | ||||||||||||||
FFELP loan warehouse facility | 978,956 | 4.69% / 4.71% | 5/22/24 | ||||||||||||||
Private education loan warehouse facility | 64,356 | 4.72% | 12/31/23 | ||||||||||||||
Consumer loan warehouse facility | 89,000 | 4.73% | 11/14/25 | ||||||||||||||
Variable-rate bonds and notes issued in private education loan asset-backed securitizations | 19,865 | 5.90% / 6.14% | 12/26/40 / 6/25/49 | ||||||||||||||
Fixed-rate bonds and notes issued in private education loan asset-backed securitization | 23,032 | 3.60% / 5.35% | 12/26/40 / 12/28/43 | ||||||||||||||
Unsecured line of credit | — | — | 9/22/26 | ||||||||||||||
Participation agreement | 395,432 | 5.02% | 5/4/23 | ||||||||||||||
Repurchase agreements | 567,254 | 0.97% - 5.60% | 1/4/23 - 11/27/24 | ||||||||||||||
Other - due to related party | 6,187 | 3.55% - 6.05% | 3/1/24 - 11/15/30 | ||||||||||||||
14,785,283 | |||||||||||||||||
Discount on bonds and notes payable and debt issuance costs | (148,088) | ||||||||||||||||
Total | $ | 14,637,195 |
Type of loans | Maximum financing amount | Amount outstanding | Amount available | Expiration of liquidity provisions | Final maturity date | Advance rate | Advanced as equity support | ||||||||||||||||||||||||||||||||||||||||
FFELP (a) | $ | 1,250,000 | 1,119,030 | 130,970 | 11/22/2023 | 11/22/2024 | note (b) | $ | 99,220 | ||||||||||||||||||||||||||||||||||||||
FFELP (c) | 432,000 | 411,399 | 20,601 | 4/2/2024 | 4/2/2025 | 92 | % | 34,497 | |||||||||||||||||||||||||||||||||||||||
$ | 1,682,000 | 1,530,429 | 151,571 | $ | 133,717 | ||||||||||||||||||||||||||||||||||||||||||
Private (d) | 42,200 | 42,200 | — | 8/31/2023 | 12/31/2023 | — | 18,720 | ||||||||||||||||||||||||||||||||||||||||
Consumer | 250,000 | 32,324 | 217,676 | 11/14/2024 | 11/14/2025 | 70 | % | 13,901 |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
Purchase price | Purchase price | $ | (13,563) | (184,827) | (67,081) | (205,269) | Purchase price | $ | — | (35,643) | (828) | (54,096) | ||||||||||||||||||||||||||||||||||
Par value | Par value | 13,903 | 184,781 | 69,133 | 204,597 | Par value | — | 36,700 | 908 | 55,229 | ||||||||||||||||||||||||||||||||||||
Remaining unamortized cost of issuance | Remaining unamortized cost of issuance | (180) | (3,222) | (821) | (3,292) | Remaining unamortized cost of issuance | — | (17) | (2) | (62) | ||||||||||||||||||||||||||||||||||||
Gain (loss) | $ | 160 | (3,268) | 1,231 | (3,964) | |||||||||||||||||||||||||||||||||||||||||
Gain | Gain | $ | — | 1,040 | 78 | 1,071 |
Maturity | Maturity | Notional amount | Maturity | Notional amount | ||||||||||||||||||||||||
As of | As of | As of | As of | |||||||||||||||||||||||||
September 30, 2022 | December 31, 2021 | June 30, 2023 | December 31, 2022 | |||||||||||||||||||||||||
2022 | $ | 1,000,000 | 2,000,000 | |||||||||||||||||||||||||
2023 | 2023 | 750,000 | 750,000 | 2023 | $ | — | 750,000 | |||||||||||||||||||||
2024 | 2024 | 1,750,000 | 1,750,000 | 2024 | 1,750,000 | 1,750,000 | ||||||||||||||||||||||
2026 | 2026 | 1,150,000 | 1,150,000 | 2026 | 1,150,000 | 1,150,000 | ||||||||||||||||||||||
2027 | 2027 | 250,000 | 250,000 | 2027 | 250,000 | 250,000 | ||||||||||||||||||||||
$ | 4,900,000 | 5,900,000 | ||||||||||||||||||||||||||
$ | 3,150,000 | 3,900,000 |
As of September 30, 2022 | As of December 31, 2021 | As of June 30, 2023 | As of December 31, 2022 (a) | |||||||||||||||||||||||||||||||||||||||||||||||||
Maturity | Maturity | Notional amount | Weighted average fixed rate paid by the Company (a) | Notional amount | Weighted average fixed rate paid by the Company (a) | Maturity | Notional amount | Weighted average fixed rate paid by the Company (b) | Notional amount | Weighted average fixed rate paid by the Company (b) | ||||||||||||||||||||||||||||||||||||||||||
2022 | $ | — | — | % | $ | 500,000 | 0.94 | % | ||||||||||||||||||||||||||||||||||||||||||||
2023 | — | — | 900,000 | 0.62 | ||||||||||||||||||||||||||||||||||||||||||||||||
2024 | 2024 | 2,000,000 | 0.35 | 2,500,000 | 0.35 | 2024 | $ | — | — | % | $ | 2,000,000 | 0.35 | % | ||||||||||||||||||||||||||||||||||||||
2025 | — | — | 500,000 | 0.35 | ||||||||||||||||||||||||||||||||||||||||||||||||
2026 | 2026 | 500,000 | 1.02 | 500,000 | 1.02 | 2026 | — | — | 500,000 | 1.02 | ||||||||||||||||||||||||||||||||||||||||||
2030 (c) | 2030 (c) | 50,000 | 3.44 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
2031 | 2031 | 100,000 | 1.53 | 100,000 | 1.53�� | 2031 | — | — | 100,000 | 1.53 | ||||||||||||||||||||||||||||||||||||||||||
2032 | 2032 | — | — | 200,000 | 2.92 | |||||||||||||||||||||||||||||||||||||||||||||||
$ | 2,600,000 | 0.52 | % | $ | 5,000,000 | 0.55 | % | $ | 50,000 | 3.44 | % | $ | 2,800,000 | 0.70 | % |
As of June 30, 2023 | ||||||||||||||||||||||||||
Maturity | Notional amount | Weighted average fixed rate paid by the Company (a) | ||||||||||||||||||||||||
2028 | $ | 40,000 | 3.33 | % | ||||||||||||||||||||||
2030 (b) | 25,000 | 2.97 | ||||||||||||||||||||||||
$ | 65,000 | 3.19 | % |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
Settlements: | Settlements: | Settlements: | ||||||||||||||||||||||||||||||||||||||||||||
1:3 basis swaps | 1:3 basis swaps | $ | (1,085) | (700) | 242 | (939) | 1:3 basis swaps | $ | (65) | 931 | 794 | 1,327 | ||||||||||||||||||||||||||||||||||
Interest rate swaps - floor income hedges | Interest rate swaps - floor income hedges | 11,356 | (5,209) | 11,843 | (14,648) | Interest rate swaps - floor income hedges | 47 | 3,692 | 22,525 | 487 | ||||||||||||||||||||||||||||||||||||
Interest rate swaps - Nelnet Bank | Interest rate swaps - Nelnet Bank | 83 | — | 83 | — | |||||||||||||||||||||||||||||||||||||||||
Total settlements - income (expense) | 10,271 | (5,909) | 12,085 | (15,587) | ||||||||||||||||||||||||||||||||||||||||||
Total settlements - income | Total settlements - income | 65 | 4,623 | 23,402 | 1,814 | |||||||||||||||||||||||||||||||||||||||||
Change in fair value: | Change in fair value: | Change in fair value: | ||||||||||||||||||||||||||||||||||||||||||||
1:3 basis swaps | 1:3 basis swaps | 189 | 1,061 | 929 | 2,755 | 1:3 basis swaps | 235 | (148) | 211 | 741 | ||||||||||||||||||||||||||||||||||||
Interest rate swaps - floor income hedges | Interest rate swaps - floor income hedges | 52,802 | 6,199 | 238,196 | 41,700 | Interest rate swaps - floor income hedges | 662 | 40,549 | (36,726) | 185,394 | ||||||||||||||||||||||||||||||||||||
Interest rate swaps - Nelnet Bank | Interest rate swaps - Nelnet Bank | 1,108 | — | 1,108 | — | |||||||||||||||||||||||||||||||||||||||||
Total change in fair value - income | 52,991 | 7,260 | 239,125 | 44,455 | ||||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments and derivative settlements, net - income | $ | 63,262 | 1,351 | 251,210 | 28,868 | |||||||||||||||||||||||||||||||||||||||||
Total change in fair value - income (expense) | Total change in fair value - income (expense) | 2,005 | 40,401 | (35,407) | 186,135 | |||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments and derivative settlements, net - income (expense) | Derivative market value adjustments and derivative settlements, net - income (expense) | $ | 2,070 | 45,024 | (12,005) | 187,949 |
As of September 30, 2022 | As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses (a) | Fair value | Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | As of June 30, 2023 | As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments (at fair value): | Investments (at fair value): | Investments (at fair value): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FFELP loan asset-backed securities- available-for-sale (b) | $ | 783,676 | 7,767 | (6,434) | 785,009 | 480,691 | 14,710 | (719) | 494,682 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loan asset-backed securities - available-for-sale (c) | 352,500 | — | (34,599) | 317,901 | 414,286 | 507 | (2,241) | 412,552 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other debt securities - available-for-sale | 279,589 | 357 | (4,785) | 275,161 | 22,435 | — | — | 22,435 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale debt securities | $ | 1,415,765 | 8,124 | (45,818) | 1,378,071 | 917,412 | 15,217 | (2,960) | 929,669 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Available-for-sale asset-backed securities | Available-for-sale asset-backed securities | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank: | Non-Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FFELP loan (a) | FFELP loan (a) | $ | 329,256 | 5,064 | (6,372) | 327,948 | 463,861 | 3,498 | (11,105) | 456,254 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loan (b) | Private education loan (b) | 307,084 | — | (25,238) | 281,846 | 335,903 | — | (29,438) | 306,465 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other debt securities | Other debt securities | 59,631 | 3,050 | (670) | 62,011 | 158,589 | 151 | (3,790) | 154,950 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Non-Nelnet Bank | Total Non-Nelnet Bank | 695,971 | 8,114 | (32,280) | 671,805 | 958,353 | 3,649 | (44,333) | 917,669 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nelnet Bank: | Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FFELP loan (c) | FFELP loan (c) | 257,418 | 1,378 | (2,430) | 256,366 | 349,855 | 955 | (8,853) | 341,957 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loan | Private education loan | 1,707 | — | (92) | 1,615 | 1,941 | — | (122) | 1,819 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other debt securities | Other debt securities | 120,471 | 161 | (2,344) | 118,288 | 131,481 | 18 | (3,907) | 127,592 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Nelnet Bank | Total Nelnet Bank | 379,596 | 1,539 | (4,866) | 376,269 | 483,277 | 973 | (12,882) | 471,368 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale asset-backed securities | Total available-for-sale asset-backed securities | $ | 1,075,567 | 9,653 | (37,146) | 1,048,074 | 1,441,630 | 4,622 | (57,215) | 1,389,037 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | 39,214 | 71,986 | Equity securities | 39,576 | 39,082 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investments (at fair value) | 1,417,285 | 1,001,655 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investments at fair value | Total investments at fair value | 1,087,650 | 1,428,119 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Investments and Notes Receivable (not measured at fair value): | Other Investments and Notes Receivable (not measured at fair value): | Other Investments and Notes Receivable (not measured at fair value): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other debt securities - held-to-maturity | 8,440 | 8,200 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Held to maturity investments | Held to maturity investments | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank: | Non-Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt securities (d) | Debt securities (d) | 4,700 | 18,554 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nelnet Bank: | Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FFELP loan asset-backed securities (c) | FFELP loan asset-backed securities (c) | 150,840 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other debt securities | Other debt securities | 241 | 220 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Nelnet Bank | Total Nelnet Bank | 151,081 | 220 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total held to maturity investments | Total held to maturity investments | 155,781 | 18,774 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Venture capital and funds: | Venture capital and funds: | Venture capital and funds: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Measurement alternative | 159,437 | 157,609 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Measurement alternative (e) (f) | Measurement alternative (e) (f) | 193,001 | 160,052 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method | Equity method | 81,231 | 67,840 | Equity method | 109,988 | 89,332 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total venture capital and funds | Total venture capital and funds | 240,668 | 225,449 | Total venture capital and funds | 302,989 | 249,384 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | Real estate: | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method | Equity method | 81,820 | 47,226 | Equity method | 85,284 | 80,364 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in ALLO: | Investment in ALLO: | Investment in ALLO: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Voting interest/equity method (d) | 74,271 | 87,247 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred membership interest and accrued and unpaid preferred return (e) | 143,763 | 137,342 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Voting interest/equity method (g) | Voting interest/equity method (g) | 43,588 | 67,538 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred membership interest and accrued and unpaid preferred return (h) | Preferred membership interest and accrued and unpaid preferred return (h) | 150,449 | 145,926 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investment in ALLO | Total investment in ALLO | 218,034 | 224,589 | Total investment in ALLO | 194,037 | 213,464 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial interest in loan securitizations (f): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans, including accrued interest | 77,447 | 66,008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | 27,617 | 28,366 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial interest in loan securitizations (i): | Beneficial interest in loan securitizations (i): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans and other | Consumer loans and other | 96,635 | 39,249 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 71,322 | 75,261 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured student loans | Federally insured student loans | 24,844 | 25,768 | Federally insured student loans | 23,017 | 24,228 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total beneficial interest in loan securitizations | Total beneficial interest in loan securitizations | 129,908 | 120,142 | Total beneficial interest in loan securitizations | 190,974 | 138,738 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Solar (g) | (71,000) | (42,457) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Solar (j) | Solar (j) | (72,455) | (55,448) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes receivable | Notes receivable | 32,124 | — | Notes receivable | 54,931 | 31,106 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax liens, affordable housing, and other | Tax liens, affordable housing, and other | 6,235 | 4,115 | Tax liens, affordable housing, and other | 7,115 | 7,416 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investments (not measured at fair value) | Total investments (not measured at fair value) | 646,229 | 587,264 | Total investments (not measured at fair value) | 918,656 | 683,798 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investments and notes receivable | Total investments and notes receivable | $ | 2,063,514 | $ | 1,588,919 | Total investments and notes receivable | $ | 2,006,306 | $ | 2,111,917 |
As of June 30, 2023 | |||||||||||||||||||||||||||||
1 year or less | After 1 year through 5 years | After 5 years through 10 years | After 10 years | Total | |||||||||||||||||||||||||
Available-for-sale asset-backed securities | |||||||||||||||||||||||||||||
Non-Nelnet Bank: | |||||||||||||||||||||||||||||
FFELP loan | $ | 24,742 | 11,841 | 48,079 | 244,594 | 329,256 | |||||||||||||||||||||||
Private education loan | — | — | — | 307,084 | 307,084 | ||||||||||||||||||||||||
Other debt securities | — | 99 | — | 59,532 | 59,631 | ||||||||||||||||||||||||
Total Non-Nelnet Bank | 24,742 | 11,940 | 48,079 | 611,210 | 695,971 | ||||||||||||||||||||||||
Fair value | 24,735 | 11,915 | 46,921 | 588,234 | 671,805 | ||||||||||||||||||||||||
Nelnet Bank: | |||||||||||||||||||||||||||||
FFELP loan | 37,270 | — | 44,458 | 175,690 | 257,418 | ||||||||||||||||||||||||
Private education loan | — | — | — | 1,707 | 1,707 | ||||||||||||||||||||||||
Other debt securities | 2,112 | 19,490 | 50,919 | 47,950 | 120,471 | ||||||||||||||||||||||||
Total Nelnet Bank | 39,382 | 19,490 | 95,377 | 225,347 | 379,596 | ||||||||||||||||||||||||
Fair value | 38,911 | 19,370 | 93,795 | 224,193 | 376,269 | ||||||||||||||||||||||||
Total available-for-sale asset-backed securities at amortized cost | $ | 64,124 | 31,430 | 143,456 | 836,557 | 1,075,567 | |||||||||||||||||||||||
Total available-for-sale asset-backed securities at fair value | $ | 63,646 | 31,285 | 140,716 | 812,427 | 1,048,074 | |||||||||||||||||||||||
Held to maturity investments | |||||||||||||||||||||||||||||
Non-Nelnet Bank: | |||||||||||||||||||||||||||||
Debt securities | $ | 4,700 | — | — | — | 4,700 | |||||||||||||||||||||||
Fair value | 4,700 | — | — | — | 4,700 | ||||||||||||||||||||||||
Nelnet Bank: | |||||||||||||||||||||||||||||
FFELP loan asset-backed securities | — | 3,678 | — | 147,162 | 150,840 | ||||||||||||||||||||||||
Other debt securities | 241 | — | — | — | 241 | ||||||||||||||||||||||||
Total Nelnet Bank | 241 | 3,678 | — | 147,162 | 151,081 | ||||||||||||||||||||||||
Fair value | 241 | 3,743 | — | 147,853 | 151,837 | ||||||||||||||||||||||||
Total held-to-maturity investments at amortized cost | $ | 4,941 | 3,678 | — | 147,162 | 155,781 | |||||||||||||||||||||||
Total held-to-maturity investments at fair value | $ | 4,941 | 3,743 | — | 147,853 | 156,537 |
As of June 30, 2023 | |||||||||||||||||||||||||||||||||||
Unrealized loss position less than 12 months | Unrealized loss position 12 months or more | Total | |||||||||||||||||||||||||||||||||
Available-for-sale asset-backed securities | Unrealized loss | Fair value | Unrealized loss | Fair value | Unrealized loss | Fair value | |||||||||||||||||||||||||||||
Non-Nelnet Bank: | |||||||||||||||||||||||||||||||||||
FFELP loan | $ | (6,349) | 208,144 | (23) | 532 | (6,372) | 208,676 | ||||||||||||||||||||||||||||
Private education loan | (4,304) | 71,534 | (20,934) | 210,312 | (25,238) | 281,846 | |||||||||||||||||||||||||||||
Other debt securities | (670) | 24,304 | — | — | (670) | 24,304 | |||||||||||||||||||||||||||||
Total Non-Nelnet Bank | (11,323) | 303,982 | (20,957) | 210,844 | (32,280) | 514,826 | |||||||||||||||||||||||||||||
Nelnet Bank: | |||||||||||||||||||||||||||||||||||
FFELP loan | (827) | 89,190 | (1,603) | 88,972 | (2,430) | 178,162 | |||||||||||||||||||||||||||||
Private education loan | (92) | 1,616 | — | — | (92) | 1,616 | |||||||||||||||||||||||||||||
Other debt securities | (293) | 30,671 | (2,051) | 57,692 | (2,344) | 88,363 | |||||||||||||||||||||||||||||
Total Nelnet Bank | (1,212) | 121,477 | (3,654) | 146,664 | (4,866) | 268,141 | |||||||||||||||||||||||||||||
Total available-for-sale asset-backed securities | $ | (12,535) | 425,459 | (24,611) | 357,508 | (37,146) | 782,967 |
Three months ended | Six months ended | ||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Gross proceeds from sales | $ | 85,375 | 205,772 | 577,548 | 319,752 | ||||||||||||||||||
Gross realized gains | $ | 920 | 909 | 2,194 | 3,874 | ||||||||||||||||||
Gross realized losses | (2) | (60) | (6,258) | (232) | |||||||||||||||||||
Net gains (losses) | $ | 918 | 849 | (4,064) | 3,642 |
Weighted average remaining useful life as of September 30, 2022 (months) | |||||||||||||||||
As of | As of | ||||||||||||||||
September 30, 2022 | December 31, 2021 | ||||||||||||||||
Amortizable intangible assets, net: | |||||||||||||||||
Customer relationships (net of accumulated amortization of $49,709 and $97,398, respectively) | 112 | $ | 55,385 | 47,894 | |||||||||||||
Trade names (net of accumulated amortization of $312) | 117 | 8,598 | — | ||||||||||||||
Computer software (net of accumulated amortization of $3,730 and $3,669, respectively) | 30 | 4,190 | 4,135 | ||||||||||||||
Other (net of accumulated amortization of $245) | 57 | 2,195 | — | ||||||||||||||
Total - amortizable intangible assets, net | 106 | $ | 70,368 | 52,029 |
Weighted average remaining useful life as of June 30, 2023 (months) | |||||||||||||||||
As of | As of | ||||||||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||||||||
Amortizable intangible assets, net: | |||||||||||||||||
Customer relationships (net of accumulated amortization of $43,178 and $55,116, respectively) | 107 | $ | 47,529 | 51,738 | |||||||||||||
Trade names (net of accumulated amortization of $2,085 and $617, respectively) | 16 | 6,825 | 8,293 | ||||||||||||||
Computer software (net of accumulated amortization of $400 and $6,400, respectively) | 46 | 1,320 | 1,520 | ||||||||||||||
Other (net of accumulated amortization of $821 and $490, respectively) | 48 | 1,619 | 1,950 | ||||||||||||||
Total - amortizable intangible assets, net | 93 | $ | 57,293 | 63,501 |
2022 (October 1 - December 31) | $ | 3,509 | ||||||||
2023 | 13,222 | |||||||||
2023 (July 1 - December 31) | 2023 (July 1 - December 31) | $ | 10,765 | |||||||
2024 | 2024 | 10,691 | 2024 | 8,775 | ||||||
2025 | 2025 | 7,604 | 2025 | 7,141 | ||||||
2026 | 2026 | 7,259 | 2026 | 6,294 | ||||||
2027 and thereafter | 28,083 | |||||||||
2027 | 2027 | 5,814 | ||||||||
2028 and thereafter | 2028 and thereafter | 18,504 | ||||||||
$ | 70,368 | $ | 57,293 |
Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Total | ||||||||||||||||||||||||||||||
Balance as of December 31, 2021 and March 31, 2022 | $ | 23,639 | 76,570 | 41,883 | — | — | 142,092 | ||||||||||||||||||||||||||||
Goodwill acquired during the period (NextGen) | — | 7,025 | — | — | — | 7,025 | |||||||||||||||||||||||||||||
Balance as of June 30, 2022 | 23,639 | 83,595 | 41,883 | — | — | 149,117 | |||||||||||||||||||||||||||||
Goodwill acquired during the period (GRNE Solar) | — | — | — | — | 14,004 | 14,004 | |||||||||||||||||||||||||||||
NextGen purchase price allocation adjustment | — | 8,912 | — | — | — | 8,912 | |||||||||||||||||||||||||||||
Balance as of September 30, 2022 | $ | 23,639 | 92,507 | 41,883 | — | 14,004 | 172,033 |
Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Total | ||||||||||||||||||||||||||||||
Goodwill balance | $ | 23,639 | 92,507 | 41,883 | — | 18,873 | 176,902 | ||||||||||||||||||||||||||||
As of | As of | ||||||||||
June 30, 2023 | December 31, 2022 | ||||||||||
Brokered CDs, net of brokered deposit fees | $ | 203,418 | 254,817 | ||||||||
Retail and other savings (529, STFIT, and HSA) | 504,858 | 410,556 | |||||||||
Retail and other CDs (commercial and institutional) | 22,770 | 25,949 | |||||||||
Total interest-bearing deposits | $ | 731,046 | 691,322 |
After two years to three years | $ | 151,559 | |||
After three years to four years | 74,282 | ||||
After four years to five years | 347 | ||||
Total | $ | 226,188 |
Three months ended September 30, | Three months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shareholders | Unvested restricted stock shareholders | Total | Common shareholders | Unvested restricted stock shareholders | Total | Common shareholders | Unvested restricted stock shareholders | Total | Common shareholders | Unvested restricted stock shareholders | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Numerator: | Numerator: | Numerator: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc. | Net income attributable to Nelnet, Inc. | $ | 102,763 | 2,035 | 104,798 | 52,245 | 893 | 53,138 | Net income attributable to Nelnet, Inc. | $ | 27,665 | 602 | 28,267 | 83,485 | 1,644 | 85,129 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Denominator: | Denominator: | Denominator: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding - basic and diluted | Weighted-average common shares outstanding - basic and diluted | 36,654,781 | 725,712 | 37,380,493 | 37,947,257 | 648,464 | 38,595,721 | Weighted-average common shares outstanding - basic and diluted | 36,670,933 | 797,464 | 37,468,397 | 36,981,990 | 728,224 | 37,710,214 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share - basic and diluted | Earnings per share - basic and diluted | $ | 2.80 | 2.80 | 2.80 | 1.38 | 1.38 | 1.38 | Earnings per share - basic and diluted | $ | 0.75 | 0.75 | 0.75 | 2.26 | 2.26 | 2.26 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shareholders | Unvested restricted stock shareholders | Total | Common shareholders | Unvested restricted stock shareholders | Total | Common shareholders | Unvested restricted stock shareholders | Total | Common shareholders | Unvested restricted stock shareholders | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Numerator: | Numerator: | Numerator: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc. | Net income attributable to Nelnet, Inc. | $ | 369,479 | 7,094 | 376,573 | 256,416 | 4,187 | 260,603 | Net income attributable to Nelnet, Inc. | $ | 53,611 | 1,143 | 54,754 | 266,735 | 5,041 | 271,776 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Denominator: | Denominator: | Denominator: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding - basic and diluted | Weighted-average common shares outstanding - basic and diluted | 36,998,100 | 710,325 | 37,708,425 | 38,025,898 | 620,994 | 38,646,892 | Weighted-average common shares outstanding - basic and diluted | 36,625,819 | 781,024 | 37,406,843 | 37,172,606 | 702,502 | 37,875,108 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share - basic and diluted | Earnings per share - basic and diluted | $ | 9.99 | 9.99 | 9.99 | 6.74 | 6.74 | 6.74 | Earnings per share - basic and diluted | $ | 1.46 | 1.46 | 1.46 | 7.18 | 7.18 | 7.18 |
Three months ended September 30, 2022 | Three months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Eliminations | Total | Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest income | Total interest income | $ | 831 | 3,707 | 182,932 | 7,551 | 10,860 | (2,748) | 203,133 | Total interest income | $ | 1,058 | 5,268 | 253,763 | 13,661 | 25,855 | (15,578) | 284,027 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | — | — | 120,009 | 3,298 | 6,067 | (2,748) | 126,625 | Interest expense | — | — | 232,313 | 8,171 | 8,242 | (15,578) | 233,148 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | 831 | 3,707 | 62,923 | 4,253 | 4,793 | — | 76,508 | Net interest income | 1,058 | 5,268 | 21,450 | 5,490 | 17,613 | — | 50,879 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less provision (negative provision) for loan losses | — | — | 9,215 | 450 | — | — | 9,665 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less provision for loan losses | Less provision for loan losses | — | — | 8,099 | 1,493 | — | — | 9,592 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | Net interest income after provision for loan losses | 831 | 3,707 | 53,708 | 3,803 | 4,793 | — | 66,843 | Net interest income after provision for loan losses | 1,058 | 5,268 | 13,351 | 3,997 | 17,613 | — | 41,287 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income/expense: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense): | Other income (expense): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | Loan servicing and systems revenue | 134,197 | — | — | — | — | — | 134,197 | Loan servicing and systems revenue | 122,020 | — | — | — | — | — | 122,020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 8,281 | 8 | — | — | — | (8,289) | — | Intersegment revenue | 7,246 | 65 | — | — | — | (7,311) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | — | 106,894 | — | — | — | — | 106,894 | Education technology, services, and payment processing revenue | — | 109,858 | — | — | — | — | 109,858 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Solar construction revenue | Solar construction revenue | — | — | — | — | 9,358 | — | 9,358 | Solar construction revenue | — | — | — | — | 4,735 | — | 4,735 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 596 | — | 4,627 | 566 | (3,564) | — | 2,225 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | — | — | 2,627 | — | — | — | 2,627 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | — | — | — | — | 121 | — | 121 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | Other, net | 605 | — | 1,319 | 620 | (9,553) | — | (7,011) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans, net | Gain on sale of loans, net | — | — | 15,511 | — | — | — | 15,511 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense | Impairment expense | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | Derivative settlements, net | — | — | 10,271 | — | — | — | 10,271 | Derivative settlements, net | — | — | (18) | 83 | — | — | 65 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | Derivative market value adjustments, net | — | — | 52,991 | — | — | — | 52,991 | Derivative market value adjustments, net | — | — | 897 | 1,108 | — | — | 2,005 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income/expense | 143,074 | 106,902 | 70,516 | 566 | 5,915 | (8,289) | 318,684 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income (expense), net | Total other income (expense), net | 129,871 | 109,923 | 17,709 | 1,811 | (4,818) | (7,311) | 247,183 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services: | Cost of services: | Cost of services: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | Cost to provide education technology, services, and payment processing services | — | 42,676 | — | — | — | — | 42,676 | Cost to provide education technology, services, and payment processing services | — | 40,407 | — | — | — | — | 40,407 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide solar construction services | Cost to provide solar construction services | — | — | — | — | 5,968 | — | 5,968 | Cost to provide solar construction services | — | — | — | — | 9,122 | — | 9,122 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of services | Total cost of services | — | 42,676 | — | — | 5,968 | — | 48,644 | Total cost of services | — | 40,407 | — | — | 9,122 | — | 49,529 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | Operating expenses: | Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 82,067 | 34,950 | 653 | 1,814 | 27,713 | — | 147,198 | Salaries and benefits | 76,141 | 38,351 | 1,096 | 2,297 | 26,965 | (145) | 144,706 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 5,784 | 2,532 | — | 4 | 10,452 | — | 18,772 | Depreciation and amortization | 4,863 | 2,815 | — | 51 | 10,923 | — | 18,652 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 16,654 | 7,034 | 3,349 | 1,427 | 15,395 | — | 43,858 | Other expenses | 13,818 | 9,692 | 4,115 | 1,624 | 16,747 | — | 45,997 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | Intersegment expenses, net | 17,486 | 4,762 | 8,350 | 69 | (22,378) | (8,289) | — | Intersegment expenses, net | 19,079 | 5,884 | 8,145 | 92 | (26,034) | (7,166) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 121,991 | 49,278 | 12,352 | 3,314 | 31,182 | (8,289) | 209,828 | Total operating expenses | 113,901 | 56,742 | 13,356 | 4,064 | 28,601 | (7,311) | 209,355 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | Income (loss) before income taxes | 21,914 | 18,655 | 111,872 | 1,055 | (26,442) | — | 127,055 | Income (loss) before income taxes | 17,028 | 18,042 | 17,704 | 1,744 | (24,928) | — | 29,586 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | Income tax (expense) benefit | (5,259) | (4,475) | (26,849) | (246) | 10,244 | — | (26,586) | Income tax (expense) benefit | (4,086) | (4,327) | (4,249) | (396) | 2,567 | — | (10,491) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | 16,655 | 14,180 | 85,023 | 809 | (16,198) | — | 100,469 | Net income (loss) | 12,942 | 13,715 | 13,455 | 1,348 | (22,361) | — | 19,095 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | Net (income) loss attributable to noncontrolling interests | — | (61) | — | — | 4,390 | — | 4,329 | Net (income) loss attributable to noncontrolling interests | — | (19) | — | — | 9,191 | — | 9,172 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Nelnet, Inc. | Net income (loss) attributable to Nelnet, Inc. | $ | 16,655 | 14,119 | 85,023 | 809 | (11,808) | — | 104,798 | Net income (loss) attributable to Nelnet, Inc. | $ | 12,942 | 13,696 | 13,455 | 1,348 | (13,170) | — | 28,267 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets as of September 30, 2022 | $ | 235,858 | 440,859 | 16,374,493 | 884,089 | 2,360,882 | (732,648) | 19,563,533 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets as of June 30, 2023 | Total assets as of June 30, 2023 | $ | 173,926 | 482,922 | 14,667,357 | 1,005,043 | 2,091,500 | (613,116) | 17,807,632 |
Three months ended September 30, 2021 | Three months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Eliminations | Total | Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest income | Total interest income | $ | 31 | 344 | 131,781 | 2,061 | 2,609 | (172) | 136,654 | Total interest income | $ | 246 | 874 | 140,396 | 5,212 | 6,235 | (1,376) | 151,587 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 24 | — | 48,662 | 421 | 1,242 | (172) | 50,176 | Interest expense | 20 | — | 69,708 | 1,639 | 3,652 | (1,376) | 73,642 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | 7 | 344 | 83,119 | 1,640 | 1,367 | — | 86,478 | Net interest income | 226 | 874 | 70,688 | 3,573 | 2,583 | — | 77,945 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less provision (negative provision) for loan losses | — | — | 5,940 | (113) | — | — | 5,827 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less provision for loan losses | Less provision for loan losses | — | — | 8,827 | 582 | — | — | 9,409 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | Net interest income after provision for loan losses | 7 | 344 | 77,179 | 1,753 | 1,367 | — | 80,651 | Net interest income after provision for loan losses | 226 | 874 | 61,861 | 2,991 | 2,583 | — | 68,536 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income/expense: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense): | Other income (expense): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | Loan servicing and systems revenue | 112,351 | — | — | — | — | — | 112,351 | Loan servicing and systems revenue | 124,873 | — | — | — | — | — | 124,873 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 8,621 | 3 | — | — | — | (8,624) | — | Intersegment revenue | 8,381 | 7 | — | — | — | (8,388) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | — | 85,324 | — | — | — | — | 85,324 | Education technology, services, and payment processing revenue | — | 91,031 | — | — | — | — | 91,031 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Solar construction revenue | Solar construction revenue | — | — | — | — | — | — | — | Solar construction revenue | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 727 | 13 | (7,275) | 450 | 17,952 | — | 11,867 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | — | — | 3,444 | — | — | — | 3,444 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | (13,243) | — | — | — | (916) | — | (14,159) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | Other, net | 611 | — | 5,133 | 157 | 6,747 | — | 12,647 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans, net | Gain on sale of loans, net | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense | Impairment expense | — | — | — | — | (6,284) | — | (6,284) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | Derivative settlements, net | — | — | (5,909) | — | — | — | (5,909) | Derivative settlements, net | — | — | 4,623 | — | — | — | 4,623 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | Derivative market value adjustments, net | — | — | 7,260 | — | — | — | 7,260 | Derivative market value adjustments, net | — | — | 40,401 | — | — | — | 40,401 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income/expense | 108,456 | 85,340 | (2,480) | 450 | 17,036 | (8,624) | 200,178 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income (expense), net | Total other income (expense), net | 133,865 | 91,038 | 50,157 | 157 | 463 | (8,388) | 267,291 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services: | Cost of services: | Cost of services: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | Cost to provide education technology, services, and payment processing services | — | 31,335 | — | — | — | — | 31,335 | Cost to provide education technology, services, and payment processing services | — | 30,852 | — | — | — | — | 30,852 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide solar construction services | Cost to provide solar construction services | — | — | — | — | — | — | — | Cost to provide solar construction services | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of services | Total cost of services | — | 31,335 | — | — | — | — | 31,335 | Total cost of services | — | 30,852 | — | — | — | — | 30,852 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | Operating expenses: | Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 75,305 | 29,119 | 542 | 890 | 22,735 | — | 128,592 | Salaries and benefits | 83,220 | 32,120 | 614 | 1,714 | 23,729 | — | 141,398 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 4,245 | 2,762 | — | — | 8,702 | — | 15,710 | Depreciation and amortization | 5,318 | 2,698 | — | 4 | 10,230 | — | 18,250 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 12,738 | 4,804 | 5,420 | 445 | 14,918 | — | 38,324 | Other expenses | 13,507 | 6,750 | 3,543 | 899 | 12,241 | — | 36,940 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | Intersegment expenses, net | 19,217 | 3,672 | 8,652 | 32 | (22,949) | (8,624) | — | Intersegment expenses, net | 18,558 | 4,805 | 8,513 | 57 | (23,545) | (8,388) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 111,505 | 40,357 | 14,614 | 1,367 | 23,406 | (8,624) | 182,626 | Total operating expenses | 120,603 | 46,373 | 12,670 | 2,674 | 22,655 | (8,388) | 196,588 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | Income (loss) before income taxes | (3,042) | 13,992 | 60,085 | 836 | (5,003) | — | 66,868 | Income (loss) before income taxes | 13,488 | 14,687 | 99,348 | 474 | (19,609) | — | 108,387 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | Income tax (expense) benefit | 730 | (3,358) | (14,421) | (200) | 1,600 | — | (15,649) | Income tax (expense) benefit | (3,237) | (3,525) | (23,844) | (106) | 5,228 | — | (25,483) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | (2,312) | 10,634 | 45,664 | 636 | (3,403) | — | 51,219 | Net income (loss) | 10,251 | 11,162 | 75,504 | 368 | (14,381) | — | 82,904 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | Net (income) loss attributable to noncontrolling interests | — | — | — | — | 1,919 | — | 1,919 | Net (income) loss attributable to noncontrolling interests | — | 53 | — | — | 2,172 | — | 2,225 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Nelnet, Inc. | Net income (loss) attributable to Nelnet, Inc. | $ | (2,312) | 10,634 | 45,664 | 636 | (1,484) | — | 53,138 | Net income (loss) attributable to Nelnet, Inc. | $ | 10,251 | 11,215 | 75,504 | 368 | (12,209) | — | 85,129 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets as of September 30, 2021 | $ | 238,602 | 415,178 | 20,001,997 | 413,155 | 1,740,060 | (406,253) | 22,402,739 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets as of June 30, 2022 | Total assets as of June 30, 2022 | $ | 240,437 | 546,235 | 17,388,228 | 864,659 | 2,273,216 | (688,762) | 20,624,013 |
Nine months ended September 30, 2022 | Six months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Eliminations | Total | Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest income | Total interest income | $ | 1,144 | 4,920 | 441,926 | 15,792 | 21,087 | (4,953) | 479,916 | Total interest income | $ | 2,095 | 11,304 | 488,482 | 25,920 | 47,054 | (24,860) | 549,995 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 44 | — | 235,720 | 5,792 | 11,745 | (4,953) | 248,347 | Interest expense | — | — | 421,511 | 15,385 | 20,560 | (24,860) | 432,597 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | 1,100 | 4,920 | 206,206 | 10,000 | 9,342 | — | 231,569 | Net interest income | 2,095 | 11,304 | 66,971 | 10,535 | 26,494 | — | 117,398 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less provision (negative provision) for loan losses | — | — | 17,178 | 1,462 | — | — | 18,640 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less provision for loan losses | Less provision for loan losses | — | — | 39,957 | 3,910 | — | — | 43,867 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | Net interest income after provision for loan losses | 1,100 | 4,920 | 189,028 | 8,538 | 9,342 | — | 212,929 | Net interest income after provision for loan losses | 2,095 | 11,304 | 27,014 | 6,625 | 26,494 | — | 73,531 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income/expense: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense): | Other income (expense): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | Loan servicing and systems revenue | 395,438 | — | — | — | — | — | 395,438 | Loan servicing and systems revenue | 261,247 | — | — | — | — | — | 261,247 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 25,142 | 16 | — | — | — | (25,158) | — | Intersegment revenue | 15,036 | 121 | — | — | — | (15,157) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | — | 310,211 | — | — | — | — | 310,211 | Education technology, services, and payment processing revenue | — | 243,462 | — | — | — | — | 243,462 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Solar construction revenue | Solar construction revenue | — | — | — | — | 9,358 | — | 9,358 | Solar construction revenue | — | — | — | — | 13,386 | — | 13,386 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 1,946 | — | 16,270 | 2,224 | 4,309 | — | 24,750 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | — | — | 5,616 | — | — | — | 5,616 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | — | — | — | — | (6,163) | — | (6,163) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | Other, net | 1,213 | — | 4,164 | 830 | (27,287) | — | (21,083) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans, net | Gain on sale of loans, net | — | — | 27,323 | — | — | — | 27,323 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense | Impairment expense | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | Derivative settlements, net | — | — | 12,085 | — | — | — | 12,085 | Derivative settlements, net | — | — | 23,319 | 83 | — | — | 23,402 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | Derivative market value adjustments, net | — | — | 239,125 | — | — | — | 239,125 | Derivative market value adjustments, net | — | — | (36,515) | 1,108 | — | — | (35,407) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income/expense | 422,526 | 310,227 | 273,096 | 2,224 | 7,504 | (25,158) | 990,420 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income (expense), net | Total other income (expense), net | 277,496 | 243,583 | 18,291 | 2,021 | (13,901) | (15,157) | 512,330 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services: | Cost of services: | Cost of services: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | Cost to provide education technology, services, and payment processing services | — | 109,073 | — | — | — | — | 109,073 | Cost to provide education technology, services, and payment processing services | — | 88,110 | — | — | — | — | 88,110 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide solar construction services | Cost to provide solar construction services | — | — | — | — | 5,968 | — | 5,968 | Cost to provide solar construction services | — | — | — | — | 17,422 | — | 17,422 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of services | Total cost of services | — | 109,073 | — | — | 5,968 | — | 115,041 | Total cost of services | — | 88,110 | — | — | 17,422 | — | 105,532 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | Operating expenses: | Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 257,259 | 98,356 | 1,858 | 5,082 | 75,455 | — | 438,010 | Salaries and benefits | 160,701 | 76,264 | 1,851 | 4,361 | 54,384 | (145) | 297,416 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 16,056 | 7,544 | — | 11 | 30,366 | — | 53,978 | Depreciation and amortization | 9,377 | 5,393 | — | 56 | 20,454 | — | 35,279 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 46,375 | 19,549 | 9,925 | 3,009 | 41,438 | — | 120,297 | Other expenses | 27,131 | 17,755 | 9,131 | 2,406 | 30,358 | — | 86,781 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | Intersegment expenses, net | 56,442 | 14,171 | 25,694 | 171 | (71,320) | (25,158) | — | Intersegment expenses, net | 40,136 | 11,684 | 16,841 | 173 | (53,822) | (15,012) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 376,132 | 139,620 | 37,477 | 8,273 | 75,939 | (25,158) | 612,285 | Total operating expenses | 237,345 | 111,096 | 27,823 | 6,996 | 51,374 | (15,157) | 419,476 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | Income (loss) before income taxes | 47,494 | 66,454 | 424,647 | 2,489 | (65,061) | — | 476,023 | Income (loss) before income taxes | 42,246 | 55,681 | 17,482 | 1,650 | (56,203) | — | 60,853 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | Income tax (expense) benefit | (11,399) | (15,947) | (101,915) | (574) | 22,070 | — | (107,765) | Income tax (expense) benefit | (10,139) | (13,393) | (4,196) | (362) | 9,348 | — | (18,741) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | 36,095 | 50,507 | 322,732 | 1,915 | (42,991) | — | 368,258 | Net income (loss) | 32,107 | 42,288 | 13,286 | 1,288 | (46,855) | — | 42,112 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | Net (income) loss attributable to noncontrolling interests | — | (8) | — | — | 8,323 | — | 8,315 | Net (income) loss attributable to noncontrolling interests | — | 119 | — | — | 12,523 | — | 12,642 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Nelnet, Inc. | Net income (loss) attributable to Nelnet, Inc. | $ | 36,095 | 50,499 | 322,732 | 1,915 | (34,668) | — | 376,573 | Net income (loss) attributable to Nelnet, Inc. | $ | 32,107 | 42,407 | 13,286 | 1,288 | (34,332) | — | 54,754 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets as of September 30, 2022 | $ | 235,858 | 440,859 | 16,374,493 | 884,089 | 2,360,882 | (732,648) | 19,563,533 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets as of June 30, 2023 | Total assets as of June 30, 2023 | $ | 173,926 | 482,922 | 14,667,357 | 1,005,043 | 2,091,500 | (613,116) | 17,807,632 |
Nine months ended September 30, 2021 | Six months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Eliminations | Total | Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest income | Total interest income | $ | 95 | 818 | 388,149 | 5,479 | 5,379 | (578) | 399,341 | Total interest income | $ | 313 | 1,213 | 258,994 | 8,241 | 10,227 | (2,205) | 276,783 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 70 | — | 124,282 | 1,007 | 3,158 | (578) | 127,939 | Interest expense | 44 | — | 115,711 | 2,494 | 5,678 | (2,205) | 121,721 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | 25 | 818 | 263,867 | 4,472 | 2,221 | — | 271,402 | Net interest income | 269 | 1,213 | 143,283 | 5,747 | 4,549 | — | 155,062 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less provision (negative provision) for loan losses | — | — | (11,225) | 378 | — | — | (10,847) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less provision for loan losses | Less provision for loan losses | — | — | 7,963 | 1,011 | — | — | 8,974 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | Net interest income after provision for loan losses | 25 | 818 | 275,092 | 4,094 | 2,221 | — | 282,249 | Net interest income after provision for loan losses | 269 | 1,213 | 135,320 | 4,736 | 4,549 | — | 146,088 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income/expense: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense): | Other income (expense): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | Loan servicing and systems revenue | 335,961 | — | — | — | — | — | 335,961 | Loan servicing and systems revenue | 261,241 | — | — | — | — | — | 261,241 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 25,369 | 9 | — | — | — | (25,378) | — | Intersegment revenue | 16,860 | 10 | — | — | — | (16,870) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | — | 257,284 | — | — | — | — | 257,284 | Education technology, services, and payment processing revenue | — | 203,317 | — | — | — | — | 203,317 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Solar construction revenue | Solar construction revenue | — | — | — | — | — | — | — | Solar construction revenue | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 2,541 | 13 | (4,514) | 475 | 31,668 | — | 30,183 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | — | — | 18,715 | — | — | — | 18,715 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | (13,243) | — | 2,436 | — | (1,416) | — | (12,223) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | Other, net | 1,350 | — | 11,644 | 1,659 | 7,872 | — | 22,524 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans, net | Gain on sale of loans, net | — | — | 2,989 | — | — | — | 2,989 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense | Impairment expense | — | — | — | — | (6,284) | — | (6,284) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | Derivative settlements, net | — | — | (15,587) | — | — | — | (15,587) | Derivative settlements, net | — | — | 1,814 | — | — | — | 1,814 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | Derivative market value adjustments, net | — | — | 44,455 | — | — | — | 44,455 | Derivative market value adjustments, net | — | — | 186,135 | — | — | — | 186,135 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income/expense | 350,628 | 257,306 | 45,505 | 475 | 30,252 | (25,378) | 658,788 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income (expense), net | Total other income (expense), net | 279,451 | 203,327 | 202,582 | 1,659 | 1,588 | (16,870) | 671,736 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services: | Cost of services: | Cost of services: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | Cost to provide education technology, services, and payment processing services | — | 80,063 | — | — | — | — | 80,063 | Cost to provide education technology, services, and payment processing services | — | 66,397 | — | — | — | — | 66,397 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide solar construction services | Cost to provide solar construction services | — | — | — | — | — | — | — | Cost to provide solar construction services | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of services | Total cost of services | — | 80,063 | — | — | — | — | 80,063 | Total cost of services | — | 66,397 | — | — | — | — | 66,397 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | Operating expenses: | Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 210,151 | 82,154 | 1,594 | 3,956 | 65,496 | — | 363,351 | Salaries and benefits | 175,192 | 63,406 | 1,205 | 3,268 | 47,742 | — | 290,813 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 20,411 | 8,789 | — | — | 26,927 | — | 56,129 | Depreciation and amortization | 10,272 | 5,013 | — | 7 | 19,914 | — | 35,206 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 39,296 | 14,063 | 12,763 | 1,227 | 40,265 | — | 107,611 | Other expenses | 29,721 | 12,514 | 6,576 | 1,584 | 26,045 | — | 76,439 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | Intersegment expenses, net | 52,241 | 10,856 | 25,627 | 72 | (63,419) | (25,378) | — | Intersegment expenses, net | 38,955 | 9,410 | 17,344 | 102 | (48,941) | (16,870) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 322,099 | 115,862 | 39,984 | 5,255 | 69,269 | (25,378) | 527,091 | Total operating expenses | 254,140 | 90,343 | 25,125 | 4,961 | 44,760 | (16,870) | 402,458 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | Income (loss) before income taxes | 28,554 | 62,199 | 280,613 | (686) | (36,796) | — | 333,883 | Income (loss) before income taxes | 25,580 | 47,800 | 312,777 | 1,434 | (38,623) | — | 348,969 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | Income tax (expense) benefit | (6,853) | (14,928) | (67,347) | 151 | 12,230 | — | (76,747) | Income tax (expense) benefit | (6,139) | (11,472) | (75,066) | (328) | 11,826 | — | (81,180) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | 21,701 | 47,271 | 213,266 | (535) | (24,566) | — | 257,136 | Net income (loss) | 19,441 | 36,328 | 237,711 | 1,106 | (26,797) | — | 267,789 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | Net (income) loss attributable to noncontrolling interests | — | — | — | — | 3,467 | — | 3,467 | Net (income) loss attributable to noncontrolling interests | — | 53 | — | — | 3,934 | — | 3,987 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Nelnet, Inc. | Net income (loss) attributable to Nelnet, Inc. | $ | 21,701 | 47,271 | 213,266 | (535) | (21,099) | — | 260,603 | Net income (loss) attributable to Nelnet, Inc. | $ | 19,441 | 36,381 | 237,711 | 1,106 | (22,863) | — | 271,776 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets as of September 30, 2021 | $ | 238,602 | 415,178 | 20,001,997 | 413,155 | 1,740,060 | (406,253) | 22,402,739 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets as of June 30, 2022 | Total assets as of June 30, 2022 | $ | 240,437 | 546,235 | 17,388,228 | 864,659 | 2,273,216 | (688,762) | 20,624,013 |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
Government servicing | $ | 104,428 | 84,084 | 312,368 | 241,497 | |||||||||||||||||||||||||||||||||||||||||
Government loan servicing | Government loan servicing | $ | 95,736 | 98,815 | 204,618 | 207,940 | ||||||||||||||||||||||||||||||||||||||||
Private education and consumer loan servicing | Private education and consumer loan servicing | 12,198 | 13,198 | 37,194 | 34,563 | Private education and consumer loan servicing | 12,063 | 12,122 | 24,225 | 24,995 | ||||||||||||||||||||||||||||||||||||
FFELP servicing | 4,127 | 4,557 | 12,386 | 13,930 | ||||||||||||||||||||||||||||||||||||||||||
FFELP loan servicing | FFELP loan servicing | 3,554 | 4,011 | 6,921 | 8,259 | |||||||||||||||||||||||||||||||||||||||||
Software services | Software services | 8,229 | 6,952 | 23,536 | 22,779 | Software services | 5,962 | 7,907 | 15,660 | 15,308 | ||||||||||||||||||||||||||||||||||||
Outsourced services and other | 5,215 | 3,560 | 9,954 | 23,192 | ||||||||||||||||||||||||||||||||||||||||||
Outsourced services | Outsourced services | 4,705 | 2,018 | 9,823 | 4,739 | |||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | Loan servicing and systems revenue | $ | 134,197 | 112,351 | 395,438 | 335,961 | Loan servicing and systems revenue | $ | 122,020 | 124,873 | 261,247 | 261,241 |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
Tuition payment plan services | Tuition payment plan services | $ | 25,779 | 23,618 | 84,131 | 79,706 | Tuition payment plan services | $ | 30,825 | 27,637 | 65,012 | 58,352 | ||||||||||||||||||||||||||||||||||
Payment processing | Payment processing | 47,957 | 39,852 | 113,996 | 97,898 | Payment processing | 31,827 | 27,968 | 75,868 | 66,039 | ||||||||||||||||||||||||||||||||||||
Education technology and services | Education technology and services | 32,548 | 21,295 | 110,755 | 78,752 | Education technology and services | 46,216 | 34,956 | 101,004 | 78,207 | ||||||||||||||||||||||||||||||||||||
Other | Other | 610 | 559 | 1,329 | 928 | Other | 990 | 470 | 1,578 | 719 | ||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | $ | 106,894 | 85,324 | 310,211 | 257,284 | Education technology, services, and payment processing revenue | $ | 109,858 | 91,031 | 243,462 | 203,317 |
Three months ended June 30, 2023 | Six months ended June 30, 2023 | ||||||||||
Commercial revenue | $ | 2,004 | 8,238 | ||||||||
Residential revenue | 2,406 | 5,181 | |||||||||
Other | 325 | (33) | |||||||||
Solar construction revenue | $ | 4,735 | 13,386 |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
Income/gains from investments, net | $ | 10,701 | 16,050 | 40,685 | 40,141 | |||||||||||||||||||||||||||||||||||||||||
ALLO preferred return | ALLO preferred return | $ | 2,274 | 2,140 | 4,523 | 4,257 | ||||||||||||||||||||||||||||||||||||||||
Borrower late fee income | Borrower late fee income | 2,824 | 514 | 7,693 | 1,698 | Borrower late fee income | 2,168 | 2,436 | 4,414 | 4,867 | ||||||||||||||||||||||||||||||||||||
ALLO preferred return | 2,164 | 2,043 | 6,420 | 6,384 | ||||||||||||||||||||||||||||||||||||||||||
Administration/sponsor fee income | Administration/sponsor fee income | 1,920 | 1,670 | 6,055 | 1,670 | Administration/sponsor fee income | 1,697 | 2,012 | 3,468 | 4,134 | ||||||||||||||||||||||||||||||||||||
Investment advisory services | Investment advisory services | 1,612 | 2,400 | 4,375 | 6,242 | Investment advisory services | 1,639 | 1,482 | 3,251 | 2,764 | ||||||||||||||||||||||||||||||||||||
Loss from ALLO voting membership interest investment | Loss from ALLO voting membership interest investment | (17,562) | (10,495) | (47,633) | (31,620) | Loss from ALLO voting membership interest investment | (12,169) | (16,941) | (32,382) | (30,071) | ||||||||||||||||||||||||||||||||||||
Loss from solar investments | Loss from solar investments | (4,216) | (3,393) | (7,100) | (7,375) | Loss from solar investments | (7,929) | (1,854) | (9,876) | (2,884) | ||||||||||||||||||||||||||||||||||||
Investment activity, net | Investment activity, net | (3,574) | 18,091 | (7,154) | 29,924 | |||||||||||||||||||||||||||||||||||||||||
Other | Other | 4,782 | 3,078 | 14,255 | 13,043 | Other | 8,883 | 5,281 | 12,673 | 9,533 | ||||||||||||||||||||||||||||||||||||
$ | 2,225 | 11,867 | 24,750 | 30,183 | ||||||||||||||||||||||||||||||||||||||||||
Other, net | Other, net | $ | (7,011) | 12,647 | (21,083) | 22,524 |
As of September 30, 2022 | As of December 31, 2021 | As of June 30, 2023 | As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | Assets: | Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments: | Investments: | Investments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FFELP loan asset-backed debt securities - available-for-sale | $ | — | 785,009 | 785,009 | — | 494,682 | 494,682 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loan asset-backed debt securities - available-for-sale | — | 317,901 | 317,901 | — | 412,552 | 412,552 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other debt securities - available-for-sale | 100 | 275,061 | 275,161 | 100 | 22,335 | 22,435 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Asset-backed debt securities - available-for-sale | Asset-backed debt securities - available-for-sale | $ | 99 | 1,047,975 | 1,048,074 | 100 | 1,388,937 | 1,389,037 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | 7,254 | — | 7,254 | 63,154 | — | 63,154 | Equity securities | 105 | — | 105 | 6,719 | — | 6,719 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities measured at net asset value (a) | Equity securities measured at net asset value (a) | 31,960 | 8,832 | Equity securities measured at net asset value (a) | 39,471 | 32,363 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investments | Total investments | 7,354 | 1,377,971 | 1,417,285 | 63,254 | 929,569 | 1,001,655 | Total investments | 204 | 1,047,975 | 1,087,650 | 6,819 | 1,388,937 | 1,428,119 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative instruments (b) | Derivative instruments (b) | — | 1,108 | 1,108 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | Total assets | $ | 7,354 | 1,377,971 | 1,417,285 | 63,254 | 929,569 | 1,001,655 | Total assets | $ | 204 | 1,049,083 | 1,088,758 | 6,819 | 1,388,937 | 1,428,119 |
As of September 30, 2022 | As of June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value | Carrying value | Level 1 | Level 2 | Level 3 | Fair value | Carrying value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets: | Financial assets: | Financial assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans receivable | Loans receivable | $ | 15,390,107 | 15,082,413 | — | — | 15,390,107 | Loans receivable | $ | 13,809,016 | 13,541,903 | — | — | 13,809,016 | ||||||||||||||||||||||||||||||||||||||||||||
Accrued loan interest receivable | Accrued loan interest receivable | 793,838 | 793,838 | — | 793,838 | — | Accrued loan interest receivable | 818,709 | 818,709 | — | 818,709 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | 63,198 | 63,198 | 63,198 | — | — | Cash and cash equivalents | 121,769 | 121,769 | 121,769 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Investments (at fair value) | Investments (at fair value) | 1,417,285 | 1,417,285 | 7,354 | 1,377,971 | — | Investments (at fair value) | 1,087,650 | 1,087,650 | 204 | 1,047,975 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Investments - held to maturity | Investments - held to maturity | 156,537 | 155,781 | — | 156,537 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes receivable | Notes receivable | 54,931 | 54,931 | — | 54,931 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial interest in loan securitizations | Beneficial interest in loan securitizations | 143,128 | 129,908 | — | — | 143,128 | Beneficial interest in loan securitizations | 228,603 | 190,974 | — | — | 228,603 | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | Restricted cash | 799,212 | 799,212 | 799,212 | — | — | Restricted cash | 484,223 | 484,223 | 484,223 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash – due to customers | Restricted cash – due to customers | 180,919 | 180,919 | 180,919 | — | — | Restricted cash – due to customers | 208,033 | 208,033 | 208,033 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Derivative instruments | Derivative instruments | 1,108 | 1,108 | — | 1,108 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial liabilities: | Financial liabilities: | Financial liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds and notes payable | Bonds and notes payable | 14,653,852 | 15,042,595 | — | 14,653,852 | — | Bonds and notes payable | 12,724,618 | 13,070,140 | — | 12,724,618 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest payable | Accrued interest payable | 21,796 | 21,796 | — | 21,796 | — | Accrued interest payable | 35,926 | 35,926 | — | 35,926 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Bank deposits | Bank deposits | 550,834 | 580,825 | 208,811 | 342,023 | — | Bank deposits | 704,116 | 731,046 | 449,297 | 254,819 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Due to customers | Due to customers | 306,352 | 306,352 | 306,352 | — | — | Due to customers | 299,552 | 299,552 | 299,552 | — | — |
As of December 31, 2021 | As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value | Carrying value | Level 1 | Level 2 | Level 3 | Fair value | Carrying value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets: | Financial assets: | Financial assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans receivable | Loans receivable | $ | 18,576,272 | 17,546,645 | — | — | 18,576,272 | Loans receivable | $ | 14,586,794 | 14,427,025 | — | — | 14,586,794 | ||||||||||||||||||||||||||||||||||||||||||||
Accrued loan interest receivable | Accrued loan interest receivable | 788,552 | 788,552 | — | 788,552 | — | Accrued loan interest receivable | 816,864 | 816,864 | — | 816,864 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | 125,563 | 125,563 | 125,563 | — | — | Cash and cash equivalents | 118,146 | 118,146 | 118,146 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Investments (at fair value) | Investments (at fair value) | 1,001,655 | 1,001,655 | 63,254 | 929,569 | — | Investments (at fair value) | 1,428,119 | 1,428,119 | 6,819 | 1,388,937 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Investments - held to maturity | Investments - held to maturity | 18,996 | 18,774 | — | 18,996 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes receivable | Notes receivable | 31,106 | 31,106 | — | 31,106 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial interest in loan securitizations | Beneficial interest in loan securitizations | 142,391 | 120,142 | — | — | 142,391 | Beneficial interest in loan securitizations | 162,360 | 138,738 | — | — | 162,360 | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | Restricted cash | 741,981 | 741,981 | 741,981 | — | — | Restricted cash | 945,159 | 945,159 | 945,159 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash – due to customers | Restricted cash – due to customers | 326,645 | 326,645 | 326,645 | — | — | Restricted cash – due to customers | 294,311 | 294,311 | 294,311 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Financial liabilities: | Financial liabilities: | Financial liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds and notes payable | Bonds and notes payable | 17,819,902 | 17,631,089 | — | 17,819,902 | — | Bonds and notes payable | 14,088,666 | 14,637,195 | — | 14,088,666 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest payable | Accrued interest payable | 4,566 | 4,566 | — | 4,566 | — | Accrued interest payable | 36,049 | 36,049 | — | 36,049 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Bank deposits | Bank deposits | 342,463 | 344,315 | 184,897 | 157,566 | — | Bank deposits | 664,573 | 691,322 | 355,282 | 309,291 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Due to customers | Due to customers | 366,002 | 366,002 | 366,002 | — | — | Due to customers | 348,317 | 348,317 | 348,317 | — | — |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
GAAP net income attributable to Nelnet, Inc. | GAAP net income attributable to Nelnet, Inc. | $ | 104,798 | 53,138 | 376,573 | 260,603 | GAAP net income attributable to Nelnet, Inc. | $ | 28,267 | 85,129 | 54,754 | 271,776 | ||||||||||||||||||||||||||||||||||
Realized and unrealized derivative market value adjustments | Realized and unrealized derivative market value adjustments | (52,991) | (7,260) | (239,125) | (44,455) | Realized and unrealized derivative market value adjustments | (2,005) | (40,401) | 35,407 | (186,135) | ||||||||||||||||||||||||||||||||||||
Tax effect (a) | Tax effect (a) | 12,718 | 1,742 | 57,390 | 10,669 | Tax effect (a) | 481 | 9,696 | (8,498) | 44,672 | ||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | $ | 64,525 | 47,620 | 194,838 | 226,817 | |||||||||||||||||||||||||||||||||||||||||
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | $ | 26,743 | 54,424 | 81,663 | 130,313 | ||||||||||||||||||||||||||||||||||||||||
Earnings per share: | Earnings per share: | Earnings per share: | ||||||||||||||||||||||||||||||||||||||||||||
GAAP net income attributable to Nelnet, Inc. | GAAP net income attributable to Nelnet, Inc. | $ | 2.80 | 1.38 | 9.99 | 6.74 | GAAP net income attributable to Nelnet, Inc. | $ | 0.75 | 2.26 | 1.46 | 7.18 | ||||||||||||||||||||||||||||||||||
Realized and unrealized derivative market value adjustments | Realized and unrealized derivative market value adjustments | (1.42) | (0.19) | (6.34) | (1.15) | Realized and unrealized derivative market value adjustments | (0.05) | (1.07) | 0.95 | (4.91) | ||||||||||||||||||||||||||||||||||||
Tax effect (a) | Tax effect (a) | 0.35 | 0.04 | 1.52 | 0.28 | Tax effect (a) | 0.01 | 0.25 | (0.23) | 1.17 | ||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | $ | 1.73 | 1.23 | 5.17 | 5.87 | |||||||||||||||||||||||||||||||||||||||||
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | $ | 0.71 | 1.44 | 2.18 | 3.44 |
Three months ended September 30, | |||||||||||||||||
2022 | 2021 | Certain Items Impacting Comparability (All dollar amounts below are pre-tax) | |||||||||||||||
NDS | $ | 21,914 | (3,042) | •The recognition of an impairment charge of $13.2 million in the third quarter of 2021 related primarily to building and building improvement assets due to an evaluation of the use of office space as a large number of employees continued to work from home as a result of the COVID-19 pandemic | |||||||||||||
NBS | 18,655 | 13,992 | •The recognition of $3.7 million of interest income in the third quarter of 2022 as compared to $0.3 million in the same period of 2021 due to higher interest rates | ||||||||||||||
AGM | 111,872 | 60,085 | •A net gain of $53.0 million related to changes in the fair values of derivative instruments that do not qualify for hedge accounting in the third quarter of 2022 as compared to a net gain of $7.3 million for the same period in 2021 •An increase of $6.2 million in net interest income due to an increase in FFELP core loan spread in 2022 as compared to 2021 •A decrease of $14.3 million in net interest income due to the decrease in the average balance of FFELP loans in the third quarter of 2022 as compared to 2021 •The recognition of a $6.3 million investment loss during the third quarter of 2021 | ||||||||||||||
Nelnet Bank | 1,055 | 836 | |||||||||||||||
Corporate | (26,442) | (5,003) | •The recognition of a net loss of $17.6 million in the third quarter of 2022 related to the Company’s investment in ALLO, as compared to a net loss of $10.5 million for the same period in 2021 •Investment income of $10.5 million in the third quarter of 2022 as compared to $21.9 million for the same period in 2021. In 2022, the Company recognized $5.9 million in gains from the sale of real estate investments, as compared to $11.2 million in 2021. In addition, the Company recognized $5.8 million in net realized and unrealized gains from marketable securities in 2021. | ||||||||||||||
Income before income taxes | 127,055 | 66,868 | |||||||||||||||
Income tax expense | (26,586) | (15,649) | |||||||||||||||
Net loss attributable to noncontrolling interests | 4,329 | 1,919 | |||||||||||||||
Net income | $ | 104,798 | 53,138 |
Three months ended June 30, | Six months ended June 30, | Certain Items Impacting Comparability (All dollar amounts below are pre-tax) | |||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||||||||
NDS | $ | 17,028 | 13,488 | 42,246 | 25,580 | •An increase in before tax operating margin in 2023 compared with 2022 due to a decrease in operating expenses, primarily salaries and benefits. In 2022, the Company was fully staffed in preparation for the resumption of federal student loan payments once the CARES Act suspension was to expire. The expiration of the CARES Act was extended multiple times throughout 2022. The Company reduced staff in the first and second quarters of 2023 to manage expenses due to the delays in the government's student debt relief and return to repayment programs and lower pricing and reduced servicing volume for the Company's Department servicing contracts. | |||||||||||||||||||||||
NBS | 18,042 | 14,687 | 55,681 | 47,800 | •The recognition of $5.3 million and $11.3 million of interest income for the three and six months ended June 30, 2023, respectively, compared with $0.9 million and $1.2 million for the same periods in 2022, due to higher interest rates. •A decrease in before tax operating margin, excluding net interest income, in 2023 compared with 2022 due to additional investments in the development of new services and technologies and superior customer experiences to align with the Company's strategies to grow, retain, and diversify revenue. Additionally, the Company has had significant growth in FACTS Education Solutions instructional services revenue which has a lower before tax operating margin compared to the rest of the Company's services. |
Nine months ended September 30, | |||||||||||||||||
2022 | 2021 | Certain Items Impacting Comparability (All dollar amounts below are pre-tax) | |||||||||||||||
NDS | $ | 47,494 | 28,554 | •The recognition of an impairment charge of $13.2 million in the third quarter of 2021 related primarily to building and building improvement assets due to an evaluation of the use of office space as a large number of employees continued to work from home as a result of the COVID-19 pandemic | |||||||||||||
NBS | 66,454 | 62,199 | •The recognition of $4.9 million of interest income in the first three quarters of 2022 as compared to $0.8 million in the same period of 2021 due to higher interest rates | ||||||||||||||
AGM | 424,647 | 280,613 | •A net gain of $239.1 million related to changes in the fair values of derivative instruments that do not qualify for hedge accounting in the first three quarters of 2022 as compared to a net gain of $44.5 million for the same period in 2021 •A decrease of $23.8 million in interest expense during the first quarter of 2021 as a result of the Company reversing a historical accrued interest liability on certain bonds, which liability the Company determined is no longer probable of being required to be paid •The recognition of provision for loan losses of $17.2 million in the first three quarters of 2022 as compared to negative provision of $11.2 million for the same period in 2021 •The recognition of $18.7 million of gains from the sale of loans during the first three quarters of 2021 compared to $5.6 million for the same period in 2022 •An increase of $13.5 million in net interest income due to an increase in FFELP core loan spread in 2022 as compared to 2021 •A decrease of $32.4 million in net interest income due to the decrease in the average balance of FFELP loans in the first three quarters of 2022 as compared to 2021 | ||||||||||||||
Nelnet Bank | 2,489 | (686) | |||||||||||||||
Corporate | (65,061) | (36,796) | •The recognition of a net loss of $47.6 million for the first three quarters of 2022 related to the Company’s investment in ALLO, as compared to a net loss of $31.6 million for the same period in 2021 •Investment income of $37.2 million for the first three quarters of 2022 as compared to $43.7 million for the same period in 2021. Investment income in 2022 included $13.5 million in gains from the sale of real estate investments and a $15.2 million gain as a result of the revaluation of the Company's previously held 50 percent ownership interests in NextGen. In 2021, the Company recognized $22.2 million from the sale of real estate investments and $6.3 million in net realized and unrealized gains from marketable securities. •The recognition of an impairment charge of $6.3 million in the second quarter of 2022 related primarily to a venture capital investment and certain real estate leases (as the Company continues to downsize its facility footprint as a result of associates working from home) | ||||||||||||||
Income before income taxes | 476,023 | 333,883 | |||||||||||||||
Income tax expense | (107,765) | (76,747) | |||||||||||||||
Net loss attributable to noncontrolling interests | 8,315 | 3,467 | |||||||||||||||
Net income | $ | 376,573 | 260,603 |
AGM | 17,704 | 99,348 | 17,482 | 312,777 | •A net gain of $0.9 million and net loss of $36.5 million related to changes in the fair values of derivative instruments that do not qualify for hedge accounting for the three and six months ended June 30, 2023, respectively, compared with a net gain of $40.4 million and $186.1 million for the same periods in 2022. •The recognition of a $25.9 million non-cash expense in the second quarter of 2023 as the result of redeeming certain asset-backed debt securities prior to their maturity and writing off the remaining unamortized debt discount at the time of redemption. •A decrease of $18.7 million and $15.2 million in net interest income due to a decrease in core loan spread for the three and six months ended June 30, 2023, respectively, compared with the same periods in 2022. •A decrease of $7.5 million and $19.8 million in net interest income due to the decrease in the average balance of loans for the three and six months ended June 30, 2023, respectively, compared with the same periods in 2022. •The recognition of $15.5 million and $27.3 million in gains from the sale of loans for the three and six months ended June 30, 2023, respectively, compared with no gains and $3.0 million for the same periods in 2022. •The recognition of $8.1 million and $40.0 million in provision for loan losses for the three and six months ended June 30, 2023, respectively, compared with $8.8 million and $8.0 million for the same periods in 2022. | ||||||||||||||||||||||||
Nelnet Bank | 1,744 | 474 | 1,650 | 1,434 | |||||||||||||||||||||||||
Corporate | (24,928) | (19,609) | (56,203) | (38,623) | •An increase of $14.5 million and $20.9 million in net interest income from the Company's cash and investment (bond) portfolio due to an increase in interest rates for the three and six months ended June 30, 2023, respectively, compared with the same periods in 2022. •The recognition of net investment losses of $1.6 million and $4.8 million for the three and six months ended June 30, 2023, respectively, compared with net investment income of $18.3 million and $26.7 million for the same periods in 2022. In the second quarter or 2022, the Company recognized a $15.2 million gain as a result of the revaluation of the Company's previously held 50% ownership interest in NGWeb Solutions, LLC ("NextGen") (previously accounted for under the equity method) as a result of the Company purchasing an additional 30% ownership interests. •The recognition of a net loss of $12.2 million and $32.4 million related to the Company’s equity investment in ALLO for the three and six months ended June 30, 2023, respectively, compared with a net loss of $16.9 million and $30.1 million for the same periods in 2022. •The recognition of $8.2 million and $11.3 million of losses for the three and six months ended June 30, 2023, respectively, from the Company's acquisition of GRNE Solar on July 1, 2022. •The recognition of an impairment charge of $6.3 million in the second quarter of 2022 related primarily to a venture capital investment. | ||||||||||||||||||||||||
Income before income taxes | 29,586 | 108,387 | 60,853 | 348,969 | |||||||||||||||||||||||||
Income tax expense | (10,491) | (25,483) | (18,741) | (81,180) | |||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | 9,172 | 2,225 | 12,642 | 3,987 | |||||||||||||||||||||||||
Net income | $ | 28,267 | 85,129 | 54,754 | 271,776 |
Three months ended | Nine months ended | Three months ended | Six months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | June 30, | June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | Additional information | 2023 | 2022 | 2023 | 2022 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||
Loan interest | Loan interest | $ | 176,244 | 124,096 | 422,327 | 370,219 | Increase was due to an increase in the gross yield earned on loans, partially offset by a decrease in the average balance of loans and in gross fixed rate floor income. | Loan interest | $ | 243,045 | 134,706 | 468,288 | 246,083 | Increase was due to an increase in the gross yield earned on loans, partially offset by a decrease in the average balance of loans and in gross fixed rate floor income. | ||||||||||||||||||||||||||||||||||||||||||||
Investment interest | Investment interest | 26,889 | 12,558 | 57,589 | 29,122 | Includes income from interest-earning deposits and investments and funds in asset-backed securitizations. Increase was due to an increase in interest earning investments and an increase in interest rates in 2022 as compared to 2021. | Investment interest | 40,982 | 16,881 | 81,707 | 30,700 | Includes income from interest-earning deposits and investments and restricted cash in asset-backed securitizations. Increase was due to an increase in interest earning investments and an increase in interest rates. | ||||||||||||||||||||||||||||||||||||||||||||||
Total interest income | Total interest income | 203,133 | 136,654 | 479,916 | 399,341 | Total interest income | 284,027 | 151,587 | 549,995 | 276,783 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 126,625 | 50,176 | 248,347 | 127,939 | Increase was due to an increase in cost of funds, partially offset by a decrease in the average balance of debt outstanding. In addition, during the first quarter of 2021, the Company reduced interest expense by $23.8 million as a result of reversing a historical accrued interest liability on certain bonds, which liability the Company determined is no longer probable of being required to be paid. The liability was initially recorded when certain asset-backed securitizations were acquired in 2011 and 2013. | Interest expense | 233,148 | 73,642 | 432,597 | 121,721 | Increase was due to an increase in cost of funds, partially offset by a decrease in the average balance of debt outstanding. In addition, during the second quarter of 2023, the Company redeemed certain asset-backed debt securities prior to their maturity, resulting in the recognition of a $25.9 million non-cash expense from the write-off of the remaining debt discount associated with these bonds at the time of redemption. | ||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | 76,508 | 86,478 | 231,569 | 271,402 | Net interest income | 50,879 | 77,945 | 117,398 | 155,062 | ||||||||||||||||||||||||||||||||||||||||||||||||
Less provision (negative provision) for loan losses | 9,665 | 5,827 | 18,640 | (10,847) | Represents the current period provision (negative provision) to reflect the lifetime expected credit losses related to the Company's loan portfolio. See note 2 of the notes to consolidated financial statements included under Part I, Item 1 of this report for the activity in the Company's allowance for loan losses. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Less provision for loan losses | Less provision for loan losses | 9,592 | 9,409 | 43,867 | 8,974 | Represents the current period provision to reflect the lifetime expected credit losses related to the Company's loan portfolio. The primary item impacting provision for loan losses was the establishment of an initial allowance for consumer loans originated and acquired during the periods presented. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | Net interest income after provision for loan losses | 66,843 | 80,651 | 212,929 | 282,249 | Net interest income after provision for loan losses | 41,287 | 68,536 | 73,531 | 146,088 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other income/expense: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income (expense): | Other income (expense): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LSS revenue | LSS revenue | 134,197 | 112,351 | 395,438 | 335,961 | See LSS operating segment - results of operations. | LSS revenue | 122,020 | 124,873 | 261,247 | 261,241 | See LSS operating segment - results of operations. | ||||||||||||||||||||||||||||||||||||||||||||||
ETS&PP revenue | ETS&PP revenue | 106,894 | 85,324 | 310,211 | 257,284 | See ETS&PP operating segment - results of operations. | ETS&PP revenue | 109,858 | 91,031 | 243,462 | 203,317 | See ETS&PP operating segment - results of operations. | ||||||||||||||||||||||||||||||||||||||||||||||
Solar construction revenue | Solar construction revenue | 9,358 | — | 9,358 | — | On July 1, 2022, the Company acquired 80 percent of the ownership interests of GRNE Solar. GRNE Solar designs and installs residential, commercial, and utility-scale solar systems. The acquisition diversifies the Company's position in the renewable energy space to include solar construction. | Solar construction revenue | 4,735 | — | 13,386 | — | On July 1, 2022, the Company acquired 80% of the ownership interests of GRNE Solar. GRNE Solar designs and installs residential, commercial, and utility-scale solar systems. The acquisition diversifies the Company's position in the renewable energy space to include solar construction. | ||||||||||||||||||||||||||||||||||||||||||||||
Other | 2,225 | 11,867 | 24,750 | 30,183 | See table below for the components of "other." | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | 2,627 | 3,444 | 5,616 | 18,715 | The Company sold $18.1 million (par value) and $28.9 million (par value) of consumer loans in January 2022 and July 2022, respectively, and recognized a gain of $3.0 million and $2.6 million, respectively. The Company also sold $77.4 million (par value) and $18.4 million (par value) of consumer loans in May 2021 and September 2021, respectively, and recognized gains of $15.3 million and $3.2 million, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | 121 | (14,159) | (6,163) | (12,223) | During the third quarter of 2021, the Company evaluated the use of office space as a large number of employees continued to work from home due to COVID-19. As a result of this evaluation, the Company recorded an impairment charge during the third quarter of 2021 of $14.2 million. The impairment charge related primarily to building and operating lease assets. During the second quarter of 2022, the Company recorded impairment expense of $6.3 million related primarily to a venture capital investment and certain real estate leases. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | Other, net | (7,011) | 12,647 | (21,083) | 22,524 | See table below for the components of "other, net." | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans, net | Gain on sale of loans, net | 15,511 | — | 27,323 | 2,989 | The Company sold $261.9 million (par value) and $158.3 million (par value) of consumer and other loans in the first and second quarter of 2023, respectively and recognized net gains of $11.8 million and $15.5 million, respectively. The Company also sold $18.1 million (par value) of consumer loans in the first quarter of 2022 and recognized a gain of $3.0 million. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense | Impairment expense | — | (6,284) | — | (6,284) | During the second quarter of 2022, the Company recorded impairment expense of $6.3 million related primarily to a venture capital investment. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | Derivative settlements, net | 10,271 | (5,909) | 12,085 | (15,587) | The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce the economic effect of interest rate volatility. Derivative settlements for each applicable period should be evaluated with the Company's net interest income. See AGM operating segment - results of operations. | Derivative settlements, net | 65 | 4,623 | 23,402 | 1,814 | The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce the economic effect of interest rate volatility. Derivative settlements for each applicable period should be evaluated with the Company's net interest income. The majority of derivative settlements received by the Company was from the Company's derivatives used to hedge loans earning fixed rate floor income. To minimize the Company's exposure to market volatility, the Company terminated this derivative portfolio on March 15, 2023. | ||||||||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | Derivative market value adjustments, net | 52,991 | 7,260 | 239,125 | 44,455 | Includes the realized and unrealized gains and losses that are caused by changes in fair values of derivatives which do not qualify for "hedge treatment" under GAAP. The majority of the derivative market value adjustments related to the changes in fair value of the Company's floor income interest rate swaps. Such changes reflect that a decrease in the forward yield curve during a reporting period results in a decrease in the fair value of the Company's floor income interest rate swaps, and an increase in the forward yield curve during a reporting period results in an increase in the fair value of such swaps. | Derivative market value adjustments, net | 2,005 | 40,401 | (35,407) | 186,135 | Includes the realized and unrealized gains and losses that are caused by changes in fair values of derivatives which do not qualify for "hedge treatment" under GAAP. The majority of the derivative market value adjustments were related to the changes in fair value of the Company's floor income interest rate swaps. Such changes reflect that a decrease in the forward yield curve during a reporting period results in a decrease in the fair value of the Company's floor income interest rate swaps, and an increase in the forward yield curve during a reporting period results in an increase in the fair value of such swaps. To minimize the Company's exposure to market volatility, the Company terminated this derivative portfolio on March 15, 2023. As such, the Company expects the derivative market value adjustments in future periods will be less substantial. | ||||||||||||||||||||||||||||||||||||||||||||||
Total other income/expense | 318,684 | 200,178 | 990,420 | 658,788 |
Cost of services: | |||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | 42,676 | 31,335 | 109,073 | 80,063 | Represents primarily direct costs to provide payment processing and instructional services in the ETS&PP operating segment. Increase in 2022 compared to 2021 was primarily due to additional instructional services costs. See ETS&PP operating segment - results of operations. | ||||||||||||||||||||||||
Cost to provide solar construction services | 5,968 | — | 5,968 | — | As noted above, the Company acquired GRNE Solar on July 1, 2022. These amounts represent direct costs related to GRNE providing solar construction services. | ||||||||||||||||||||||||
Total cost of services | 48,644 | 31,335 | 115,041 | 80,063 | |||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 147,198 | 128,592 | 438,010 | 363,351 | Increase was due to an increase in headcount in the (i) LSS operating segment as the Company has been required to prepare for the resumption of federal student loan payments upon the expiration of the CARES Act borrower relief provisions, which have been extended several times; and (ii) ETS&PP operating segment to support the growth of its customer base and the investment in the development of new technologies. | ||||||||||||||||||||||||
Depreciation and amortization | 18,772 | 15,710 | 53,978 | 56,129 | Includes depreciation of property and equipment and the amortization of intangibles from prior business acquisitions. | ||||||||||||||||||||||||
Other expenses | 43,858 | 38,324 | 120,297 | 107,611 | Other expenses includes expenses necessary for operations, such as postage and distribution, consulting and professional fees, occupancy, communications, and certain information technology-related costs. Increase was due to (i) an increase in expenses in the LSS operating segment due to growth of borrowers under the government servicing contracts; and (ii) an increase in expenses in the ETS&PP operating segment due to higher costs for consulting, professional fees, and technology services resulting from investments in new technologies, and an increase in costs for travel and in-person hosted conferences that subsided in 2021 due to the COVID-19 pandemic. | ||||||||||||||||||||||||
Total operating expenses | 209,828 | 182,626 | 612,285 | 527,091 | |||||||||||||||||||||||||
Income before income taxes | 127,055 | 66,868 | 476,023 | 333,883 | |||||||||||||||||||||||||
Income tax expense | 26,586 | 15,649 | 107,765 | 76,747 | The effective tax rate was 20.2% and 22.7% for the three months ended September 30, 2022 and 2021, respectively, and 22.2% and 22.7% for the nine months ended September 30, 2022 and 2021, respectively. | ||||||||||||||||||||||||
Net income | 100,469 | 51,219 | 368,258 | 257,136 | |||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | 4,329 | 1,919 | 8,315 | 3,467 | Amounts for noncontrolling interests primarily reflect the net income/loss attributable to the holders of minority membership interests in Whitetail Rock Capital Management, LLC and multiple solar entities. | ||||||||||||||||||||||||
Net income attributable to Nelnet, Inc. | $ | 104,798 | 53,138 | 376,573 | 260,603 | ||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Income/gains from investments, net (a) | $ | 10,701 | 16,050 | 40,685 | 40,141 | ||||||||||||||||||
Borrower late fee income (b) | 2,824 | 514 | 7,693 | 1,698 | |||||||||||||||||||
ALLO preferred return (c) | 2,164 | 2,043 | 6,420 | 6,384 | |||||||||||||||||||
Administration/sponsor fee income (d) | 1,920 | 1,670 | 6,055 | 1,670 | |||||||||||||||||||
Investment advisory services (e) | 1,612 | 2,400 | 4,375 | 6,242 | |||||||||||||||||||
Loss from ALLO voting membership interest investment (f) | (17,562) | (10,495) | (47,633) | (31,620) | |||||||||||||||||||
Loss from solar investments (g) | (4,216) | (3,393) | (7,100) | (7,375) | |||||||||||||||||||
Other | 4,782 | 3,078 | 14,255 | 13,043 | |||||||||||||||||||
Other income | $ | 2,225 | 11,867 | 24,750 | 30,183 |
Total other income (expense), net | 247,183 | 267,291 | 512,330 | 671,736 | |||||||||||||||||||||||||
Cost of services: | |||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | 40,407 | 30,852 | 88,110 | 66,397 | Represents direct costs to provide payment processing and instructional services in ETS&PP. Increase was primarily due to additional instructional services costs. See ETS&PP operating segment - results of operations. | ||||||||||||||||||||||||
Cost to provide solar construction services | 9,122 | — | 17,422 | — | As noted above, the Company acquired GRNE Solar on July 1, 2022. These amounts represent direct costs related to GRNE providing solar construction services. | ||||||||||||||||||||||||
Total cost of services | 49,529 | 30,852 | 105,532 | 66,397 | |||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 144,706 | 141,398 | 297,416 | 290,813 | Increase was due to an increase in headcount in ETS&PP to support the growth of its customer base and the investment in the development of new technologies. This increase was partially offset by staff reductions in LSS in the first and second quarters of 2023 to manage expenses due to delays in the government's student debt relief and return to repayment programs and lower pricing and reduced servicing volume for LSS's Department servicing contracts. In addition, increase was due to the acquisition of GRNE Solar on July 1, 2022. | ||||||||||||||||||||||||
Depreciation and amortization | 18,652 | 18,250 | 35,279 | 35,206 | Includes depreciation of property and equipment and the amortization of intangibles from prior business acquisitions. | ||||||||||||||||||||||||
Other expenses | 45,997 | 36,940 | 86,781 | 76,439 | Includes expenses necessary for operations, such as postage and distribution, consulting and professional fees, occupancy, communications, and certain information technology-related costs. Increase was due to an increase in expenses in ETS&PP due to higher costs for consulting, professional fees, and technology services resulting from investments in new technologies, and an increase in costs for travel and in-person hosted conferences that had previously subsided due to the COVID-19 pandemic. | ||||||||||||||||||||||||
Total operating expenses | 209,355 | 196,588 | 419,476 | 402,458 | |||||||||||||||||||||||||
Income before income taxes | 29,586 | 108,387 | 60,853 | 348,969 | |||||||||||||||||||||||||
Income tax expense | 10,491 | 25,483 | 18,741 | 81,180 | The effective tax rate was 27.1% and 23.0% for the three months ended June 30, 2023 and 2022, respectively, and 25.5% and 23.0% for the six months ended June 30, 2023 and 2022, respectively. The increase in the effective tax rate in 2023 compared with 2022 was due to an increase in the Company's state effective tax rate due to the composition of income earned in certain states. The Company expects its effective tax rate will range between 24% and 25% for the remainder of 2023. | ||||||||||||||||||||||||
Net income | 19,095 | 82,904 | 42,112 | 267,789 | |||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | 9,172 | 2,225 | 12,642 | 3,987 | Amounts for noncontrolling interests reflect the net income/loss attributable to the holders of noncontrolling membership interests in WRCM, NextGen, multiple solar entities (including GRNE Solar), and multiple entities investing in federal opportunity zone programs. | ||||||||||||||||||||||||
Net income attributable to Nelnet, Inc. | $ | 28,267 | 85,129 | 54,754 | 271,776 | ||||||||||||||||||||||||
Additional information: | See "Overview - GAAP Net Income and Non-GAAP Net Income, Excluding Adjustments" above for additional information about non-GAAP net income, excluding derivative market value adjustments. | ||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc. | $ | 28,267 | 85,129 | 54,754 | 271,776 | ||||||||||||||||||||||||
Derivative market value adjustments, net | (2,005) | (40,401) | 35,407 | (186,135) | |||||||||||||||||||||||||
Tax effect | 481 | 9,696 | (8,498) | 44,672 | |||||||||||||||||||||||||
Net income attributable to Nelnet, Inc., excluding derivative market value adjustments | $ | 26,743 | 54,424 | 81,663 | 130,313 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | Additional information | |||||||||||||||||||||||||
ALLO preferred return | $ | 2,274 | 2,140 | 4,523 | 4,257 | See Corporate - results of operations. | |||||||||||||||||||||||
Borrower late fee income | 2,168 | 2,436 | 4,414 | 4,867 | See AGM operating segment - results of operations. | ||||||||||||||||||||||||
Administration/sponsor fee income | 1,697 | 2,012 | 3,468 | 4,134 | See AGM operating segment - results of operations. | ||||||||||||||||||||||||
Investment advisory services | 1,639 | 1,482 | 3,251 | 2,764 | See Corporate - results of operations. | ||||||||||||||||||||||||
Loss from ALLO voting membership interest investment | (12,169) | (16,941) | (32,382) | (30,071) | See Corporate - results of operations. | ||||||||||||||||||||||||
Loss from solar investments | (7,929) | (1,854) | (9,876) | (2,884) | See Corporate - results of operations. | ||||||||||||||||||||||||
Investment activity, net | (3,574) | 18,091 | (7,154) | 29,924 | See Corporate - results of operations and note (a) below for additional information. | ||||||||||||||||||||||||
Other | 8,883 | 5,281 | 12,673 | 9,533 | |||||||||||||||||||||||||
Other, net | $ | (7,011) | 12,647 | (21,083) | 22,524 |
Real Estate | Venture Capital | Equity / Bonds | Total | Real Estate | Venture Capital | Equity / Bonds | Total | ||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate | $ | (1,090) | (956) | 406 | (1,640) | 3,629 | 17,318 | (2,649) | 18,298 | ||||||||||||||||||||||||||||||||||||||
AGM | — | (2,545) | — | (2,545) | — | (352) | — | (352) | |||||||||||||||||||||||||||||||||||||||
Nelnet Bank | — | (10) | 621 | 611 | — | (15) | 160 | 145 | |||||||||||||||||||||||||||||||||||||||
$ | (1,090) | (3,511) | 1,027 | (3,574) | 3,629 | 16,951 | (2,489) | 18,091 | |||||||||||||||||||||||||||||||||||||||
Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate | $ | (314) | (892) | (3,636) | (4,842) | 7,980 | 22,194 | (3,465) | 26,709 | ||||||||||||||||||||||||||||||||||||||
AGM | — | (2,649) | (476) | (3,125) | — | 1,575 | — | 1,575 | |||||||||||||||||||||||||||||||||||||||
Nelnet Bank | — | (272) | 1,085 | 813 | — | 372 | 1,268 | 1,640 | |||||||||||||||||||||||||||||||||||||||
$ | (314) | (3,813) | (3,027) | (7,154) | 7,980 | 24,141 | (2,197) | 29,924 |
As of | As of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | March 31, 2021 | June 30, 2021 | September 30, 2021 | December 31, 2021 | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2021 | March 31, 2022 | June 30, 2022 | September 30, 2022 | December 31, 2022 | March 31, 2023 | June 30, 2023 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing volume (dollars in millions): | Servicing volume (dollars in millions): | Servicing volume (dollars in millions): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government | Government | $ | 443,248 | 453,681 | 452,450 | 461,054 | 478,402 | 507,653 | 542,398 | 545,546 | Government | $ | 478,402 | 507,653 | 542,398 | 545,546 | 545,373 | 537,291 | 519,308 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FFELP | FFELP | 30,763 | 30,084 | 29,361 | 28,244 | 26,916 | 25,646 | 24,224 | 22,412 | FFELP | 26,916 | 25,646 | 24,224 | 22,412 | 20,226 | 19,815 | 19,021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private and consumer | Private and consumer | 16,226 | 21,397 | 24,758 | 24,229 | 23,702 | 23,433 | 22,838 | 22,461 | Private and consumer | 23,702 | 23,433 | 22,838 | 22,461 | 21,866 | 21,484 | 20,805 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 490,237 | 505,162 | 506,569 | 513,527 | 529,020 | 556,732 | 589,460 | 590,419 | Total | $ | 529,020 | 556,732 | 589,460 | 590,419 | 587,465 | 578,590 | 559,134 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of servicing borrowers: | Number of servicing borrowers: | Number of servicing borrowers: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government | Government | 13,251,930 | 13,301,364 | 13,253,051 | 13,570,056 | 14,196,520 | 14,727,860 | 15,426,607 | 15,657,942 | Government | 14,196,520 | 14,727,860 | 15,426,607 | 15,657,942 | 15,777,328 | 15,518,751 | 14,898,901 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FFELP | FFELP | 1,300,677 | 1,233,461 | 1,198,863 | 1,150,214 | 1,092,066 | 1,034,913 | 977,785 | 910,188 | FFELP | 1,092,066 | 1,034,913 | 977,785 | 910,188 | 829,939 | 819,791 | 788,686 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private and consumer | Private and consumer | 636,136 | 882,477 | 1,039,537 | 1,097,252 | 1,065,439 | 1,030,863 | 998,454 | 979,816 | Private and consumer | 1,065,439 | 1,030,863 | 998,454 | 979,816 | 951,866 | 925,861 | 899,095 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 15,188,743 | 15,417,302 | 15,491,451 | 15,817,522 | 16,354,025 | 16,793,636 | 17,402,846 | 17,547,946 | Total | 16,354,025 | 16,793,636 | 17,402,846 | 17,547,946 | 17,559,133 | 17,264,403 | 16,586,682 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of remote hosted borrowers: | Number of remote hosted borrowers: | 6,555,841 | 4,307,342 | 4,338,570 | 4,548,541 | 4,799,368 | 5,487,943 | 5,738,381 | 6,025,377 | Number of remote hosted borrowers: | 4,799,368 | 5,487,943 | 5,738,381 | 6,025,377 | 6,135,760 | 5,048,324 | 716,908 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | Additional information | |||||||||||||||||||||||||
Net interest income | $ | 1,058 | 226 | 2,095 | 269 | Increase in 2023 compared with 2022 was due to higher interest rates. | |||||||||||||||||||||||
Loan servicing and systems revenue | 122,020 | 124,873 | 261,247 | 261,241 | See table below for additional information. | ||||||||||||||||||||||||
Intersegment servicing revenue | 7,246 | 8,381 | 15,036 | 16,860 | Represents revenue earned by LSS from servicing loans for AGM and Nelnet Bank. Decrease in 2023 compared with 2022 was due to the continued amortization of AGM's FFELP portfolio. FFELP intersegment servicing revenue will continue to decrease as AGM's FFELP portfolio pays off. | ||||||||||||||||||||||||
Other income | 605 | 611 | 1,213 | 1,350 | Represents revenue earned from providing administrative support and marketing services. | ||||||||||||||||||||||||
Total other income | 129,871 | 133,865 | 277,496 | 279,451 | |||||||||||||||||||||||||
Salaries and benefits | 76,141 | 83,220 | 160,701 | 175,192 | Decrease in 2023 compared with 2022 was due to the Company being fully staffed with contact center operations and support associates in 2022 in preparation for the resumption of federal student loan payments and other activities after the CARES Act suspension. During the first and second quarters of 2023, the Company reduced staff to manage expenses due to delays in the government's student debt relief and return to repayment programs and lower pricing and reduced servicing volume for government servicing contracts. See "Reduction in Staff" above for additional details. | ||||||||||||||||||||||||
Depreciation and amortization | 4,863 | 5,318 | 9,377 | 10,272 | |||||||||||||||||||||||||
Other expenses | 13,818 | 13,507 | 27,131 | 29,721 | Decrease in the first half of 2023 compared with 2022 was due to a decrease in professional fees and facility costs. Over the last year, the Company has reduced its office space as a large number of employees continue to work from home. | ||||||||||||||||||||||||
Intersegment expenses | 19,079 | 18,558 | 40,136 | 38,955 | Represent costs for certain corporate activities and services that are allocated to each operating segment based on estimated use of such activities and services. | ||||||||||||||||||||||||
Total operating expenses | 113,901 | 120,603 | 237,345 | 254,140 | |||||||||||||||||||||||||
Income before income taxes | 17,028 | 13,488 | 42,246 | 25,580 | |||||||||||||||||||||||||
Income tax expense | (4,086) | (3,237) | (10,139) | (6,139) | Represents income tax expense at an effective tax rate of 24%. | ||||||||||||||||||||||||
Net income | $ | 12,942 | 10,251 | 32,107 | 19,441 | ||||||||||||||||||||||||
Before tax operating margin | 13.1 | % | 10.1 | % | 15.2 | % | 9.2 | % | Before tax operating margin represents before tax operating profitability as a percentage of revenue, and for LSS is calculated as income before income taxes divided by the total of loan servicing and systems revenue, intersegment servicing revenue, and other income revenue. The Company uses this metric to monitor and assess the segment’s performance, manage operating costs, identify and evaluate business trends affecting the segment, and make strategic decisions, and believes that it provides additional information to facilitate an understanding of the operating performance of the segment and provides a meaningful comparison of the results of operations between periods. Before tax operating margin increased in 2023 compared with 2022 due primarily to a decrease in salaries and benefits expense as described above. | ||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | Additional information | |||||||||||||||||||||||||
Net interest income | $ | 831 | 7 | 1,100 | 25 | Increase was due to higher interest rates in 2022 as compared to 2021. | |||||||||||||||||||||||
Loan servicing and systems revenue | 134,197 | 112,351 | 395,438 | 335,961 | See table below for additional information. | ||||||||||||||||||||||||
Intersegment servicing revenue | 8,281 | 8,621 | 25,142 | 25,369 | Represents revenue earned by the LSS operating segment from servicing loans for the AGM and Nelnet Bank operating segments. Decrease in 2022 compared to 2021 was due to the continued amortization of AGM's FFELP portfolio. Decrease was partially offset by ending COVID-19 pandemic borrower relief policies, which increased servicing activities performed for AGM. FFELP intersegment servicing revenue will continue to decrease as AGM's FFELP portfolio pays off. | ||||||||||||||||||||||||
Other income | 596 | 727 | 1,946 | 2,541 | Represents revenue earned from providing administrative support and marketing services. | ||||||||||||||||||||||||
Impairment expense | — | (13,243) | — | (13,243) | During the third quarter of 2021, the Company evaluated use of office space as a large number of employees continued to work from home due to COVID-19. As a result of this evaluation, the Company recorded a non-cash impairment charge to certain building and building improvement assets during the third quarter of 2021. | ||||||||||||||||||||||||
Total other income | 143,074 | 108,456 | 422,526 | 350,628 | |||||||||||||||||||||||||
Salaries and benefits | 82,067 | 75,305 | 257,259 | 210,151 | Increase in 2022 compared to 2021 was due to the Company hiring contact center operations and support associates to prepare for the resumption of federal student loan payments and other activities after the CARES Act suspension expires. The CARES Act suspension was expected to expire on January 31, 2022 and has been extended three additional times to May 1, 2022, August 31, 2022, and again to December 31, 2022. | ||||||||||||||||||||||||
Depreciation and amortization | 5,784 | 4,245 | 16,056 | 20,411 | Includes amortization of intangible assets from the Great Lakes acquisition in February 2018 of which the majority of such assets became fully amortized as of June 30, 2021. Amortization of intangible assets for the nine months ended September 30, 2022 and 2021 was $1.1 million and $11.6 million, respectively. Excluding amortization of intangible assets, the increase in 2022 compared to 2021 was due to scaling of the Company's servicing platform for the PHEAA loan volume transferred to its platform. | ||||||||||||||||||||||||
Other expenses | 16,654 | 12,738 | 46,375 | 39,296 | Increase in 2022 compared to 2021 was due to additional costs associated with the growth of borrowers under the government servicing contracts. | ||||||||||||||||||||||||
Intersegment expenses | 17,486 | 19,217 | 56,442 | 52,241 | Intersegment expenses represent costs for certain corporate activities and services that are allocated to each operating segment based on estimated use of such activities and services. | ||||||||||||||||||||||||
Total operating expenses | 121,991 | 111,505 | 376,132 | 322,099 | |||||||||||||||||||||||||
Income (loss) before income taxes | 21,914 | (3,042) | 47,494 | 28,554 | |||||||||||||||||||||||||
Income tax (expense) benefit | (5,259) | 730 | (11,399) | (6,853) | Represents income tax (expense) benefit at an effective tax rate of 24%. | ||||||||||||||||||||||||
Net income (loss) | $ | 16,655 | (2,312) | 36,095 | 21,701 | ||||||||||||||||||||||||
GAAP before tax operating margin | 15.3 | % | (2.5) | % | 11.2 | % | 7.9 | % | Before tax operating margin, excluding impairment and amortization expense, is a non-GAAP measure of before tax operating profitability as a percentage of revenue, and for the LSS segment is calculated as income before income taxes (excluding impairment and amortization expense) divided by the total of loan servicing and systems revenue, intersegment servicing revenue, and other income revenue. The Company uses this metric to monitor and assess the segment’s performance, manage operating costs, identify and evaluate business trends affecting the segment, and make strategic decisions, and believes that it provides additional information to facilitate an understanding of the operating performance of the segment and provides a meaningful comparison of the results of operations between periods. Before tax operating margin, excluding impairment and amortization expense, decreased in the nine months ended September 30, 2022 compared to the same period in 2021 due to increased operating expenses, primarily salaries and benefits, as the Company prepared for a January 31, 2022 expiration of the federal student loan payment pause under the CARES Act, which has been extended three additional times to May 1, 2022, August 31, 2022, and again to December 31, 2022. | ||||||||||||||||||||
Impairment expense | — | 10.9 | % | — | 3.6 | % | |||||||||||||||||||||||
Amortization expense | 0.3 | % | 0.5 | % | 0.3 | % | 3.2 | % | |||||||||||||||||||||
Non-GAAP before tax operating margin, excluding impairment and amortization expense | 15.6 | % | 8.9 | % | 11.5 | % | 14.7 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | Additional information | |||||||||||||||||||||||||
Government servicing | $ | 104,428 | 84,084 | 312,368 | 241,497 | Represents revenue from the Company's Department servicing contracts. Increase in 2022 compared to 2021 was due to (i) an increase in the number of borrowers serviced, including PHEAA borrowers transferred to the Company's servicing platform; (ii) a per borrower rate increase beginning September 1, 2021 to reflect the increase in the cost of labor (Employment Cost Index) per the provisions of the contract; and (iii) a CARES Act forbearance rate increase effective May 1, 2022. Increase in the nine months ended September 30, 2022 compared to the same period in 2021 was also due to (i) the recognition of $9.1 million of revenue in the first quarter of 2022 for incremental work related primarily to CARES Act forbearance exit outreach activities to borrowers; and (ii) the recognition of $10.5 million of revenue in the first quarter of 2022 related to the discharge of borrowers under the Total and Permanent Disability ("TPD") discharge program. The Company earns revenue per each borrower that satisfies the requirements for their loan to be discharged under the TPD discharge program. | |||||||||||||||||||||||
Private education and consumer loan servicing | 12,198 | 13,198 | 37,194 | 34,563 | Increase for the nine months ended September 30, 2022 compared to the same period in 2021 was due to the addition of the former Wells Fargo private education loan borrowers converted to the Company's servicing platform during March and the second quarter of 2021. Excluding revenue earned on the former Wells Fargo portfolio, revenue for 2022 decreased compared to 2021. The decrease in revenue was due to a decrease in servicing volume and client requested enhanced delinquency services. | ||||||||||||||||||||||||
FFELP servicing | 4,127 | 4,557 | 12,386 | 13,930 | Decrease in 2022 compared to 2021 was due to a decrease in the number of borrowers serviced. Over time, FFELP servicing revenue will continue to decrease as third-party customers' FFELP portfolios pay off. Since late 2021, the Company has experienced accelerated run-off of its FFELP servicing portfolio due to FFELP borrowers consolidating their loans into Federal Direct Loan Program loans as a result of the continued extension of borrower relief under the CARES Act and an initiative offered by the Department for FFELP borrowers to consolidate their loans to qualify for loan forgiveness under the Public Service Loan Forgiveness and other programs. | ||||||||||||||||||||||||
Software services | 8,229 | 6,952 | 23,536 | 22,779 | Increase in 2022 compared to 2021 is due to an increase in the number of remote hosted servicing borrowers primarily from the transfer of PHEAA borrowers to these servicing customers. This increase was partially offset during the nine months ended September 30, 2022 compared to the same period in 2021 due to many of the services provided under the Company's remote hosted servicing and system support contract with Great Lakes' former parent, representing 2.3 million borrowers, expiring on January 31, 2021. | ||||||||||||||||||||||||
Outsourced services and other | 5,215 | 3,560 | 9,954 | 23,192 | The majority of this revenue relates to providing contact center and back office operational outsourcing services. In 2021, these services included assisting state agencies with COVID-19 specific activities. Revenue from providing COVID-19 related services to state agencies was $1.3 million and $16.3 million during the three and nine months ended September 30, 2021. Excluding COVID-19 specific activities, outsourced services revenue has increased in 2022 as compared to 2021 due to additional outsourced opportunities, including assisting existing Department servicers as they wind down their operations. | ||||||||||||||||||||||||
Loan servicing and systems revenue | $ | 134,197 | 112,351 | 395,438 | 335,961 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | Additional information | |||||||||||||||||||||||||
Government loan servicing | $ | 95,736 | 98,815 | 204,618 | 207,940 | Represents revenue from the Company's Department servicing contracts. Decrease in the three and six months ended June 30, 2023 compared with the same periods in 2022 was due to (i) the monthly fee earned per borrower on certain borrower statuses being reduced by $0.19 effective April 1, 2023; and (ii) a decrease of borrowers in June 2023 as part of the Department's plan to transfer up to one million of the Company's existing borrowers to another third-party servicer. Decrease in the first half of 2023 compared with the same period in 2022 was also due to (i) the recognition of $6.7 million of revenue in the first quarter of 2022 for incremental work related primarily to CARES Act forbearance exit outreach activities to borrowers; and (ii) the recognition of $10.5 million of revenue in the first quarter of 2022 related to the discharge of borrowers under the Total and Permanent Disability (TPD) discharge program (the Company earns revenue per each borrower that satisfies the requirements for their loan to be discharged under the TPD discharge program). The decrease in revenue for the first half of 2023 compared with the same period in 2022 was partially offset by (i) an increase in borrowers serviced due to the PHEAA servicing volume transferred to the Company's platform in 2022; (ii) a per borrower CARES Act forbearance rate increase on May 1, 2022; and (iii) a per borrower rate increase on certain statuses on September 1, 2022 (5.0%) to reflect the increase in the cost of labor (Employment Cost Index) per the provisions of the contracts. | |||||||||||||||||||||||
Private education and consumer loan servicing | 12,063 | 12,122 | 24,225 | 24,995 | Decrease in 2023 compared with 2022 was due to a decrease in servicing volume and client requested enhanced delinquency services. | ||||||||||||||||||||||||
FFELP loan servicing | 3,554 | 4,011 | 6,921 | 8,259 | Decrease in 2023 compared with 2022 was due to a decrease in the number of borrowers serviced. Over time, FFELP servicing revenue will continue to decrease as third-party customers' FFELP portfolios pay off. Since late 2021, the Company has experienced accelerated run-off of its FFELP servicing portfolio due to FFELP borrowers consolidating their loans into Federal Direct Loan Program loans as a result of the continued extension of borrower relief under the CARES Act and initiatives offered by the Department for FFELP borrowers to consolidate their loans to qualify for loan forgiveness under the Public Service Loan Forgiveness and other programs. | ||||||||||||||||||||||||
Software services | 5,962 | 7,907 | 15,660 | 15,308 | Decrease in the three months ended June 30, 2023 compared with the same period in 2022 was due to the transfer of remote hosted borrowers to other third-party servicers. See “Government Loan Servicing - Loan Volume Transfers - Remote Hosted Servicing Borrowers” above for additional details. Increase in the six months ended June 30, 2023 compared with the same period in 2022 was due to annual rate increases on Department remote hosted servicing customers, contract programming associated with loan transfers and change requests, and growth in LSS's technology outsourcing opportunities. These increases were offset by the transfer of remote hosted borrowers to other third-party servicers. As a result of the transfers, the Company has no remaining Department remote hosted servicing borrowers on its platform and software services revenue will be negatively impacted in future periods. | ||||||||||||||||||||||||
Outsourced services | 4,705 | 2,018 | 9,823 | 4,739 | Represents primarily revenue to provide contact center and back office operational outsourcing services. Increase in 2023 compared with 2022 was due to additional outsourced opportunities, including assisting existing Department servicers as operations transition from exiting servicers. Contracts for support provided to Department servicers expired at the end of July 2023. | ||||||||||||||||||||||||
Loan servicing and systems revenue | $ | 122,020 | 124,873 | 261,247 | 261,241 |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | Additional information | 2023 | 2022 | 2023 | 2022 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 3,707 | 344 | 4,920 | 818 | Represents interest income on tuition funds held in custody for schools. Increase was due to higher interest rates in 2022 as compared to 2021. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | $ | 5,268 | 874 | 11,304 | 1,213 | Represents interest income on tuition funds held in custody for schools. Increase in 2023 compared with 2022 was due to higher interest rates. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | 106,894 | 85,324 | 310,211 | 257,284 | See table below for additional information. | Education technology, services, and payment processing revenue | 109,858 | 91,031 | 243,462 | 203,317 | See table below for additional information. | ||||||||||||||||||||||||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 8 | 3 | 16 | 9 | Intersegment revenue | 65 | 7 | 121 | 10 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other | — | 13 | — | 13 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income | Total other income | 106,902 | 85,340 | 310,227 | 257,306 | Total other income | 109,923 | 91,038 | 243,583 | 203,327 | ||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services | Cost of services | 42,676 | 31,335 | 109,073 | 80,063 | See table below for additional information. | Cost of services | 40,407 | 30,852 | 88,110 | 66,397 | See table below for additional information. | ||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 34,950 | 29,119 | 98,356 | 82,154 | Increase in 2022 compared to 2021 was due to an increase in headcount to support the growth of the customer base, and the investment in the development of new technologies. | Salaries and benefits | 38,351 | 32,120 | 76,264 | 63,406 | Increase in 2023 compared with 2022 was due to an increase in headcount to support the growth of the customer base and the investment in the development of new technologies. | ||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 2,532 | 2,762 | 7,544 | 8,789 | Represents primarily amortization of intangible assets from prior business acquisitions. Amortization of intangible assets related to business acquisitions was $2.2 million and $2.6 million for the three months ended September 30, 2022 and 2021, respectively, and $6.8 million and $8.3 million for the nine months ended September 30, 2022 and 2021, respectively. Amortization of intangible assets is expected to increase in future periods as a result of the recent business acquisition of NextGen. See note 6 of the notes to the consolidated financial statements included under Part I, Item 1 of this report. | Depreciation and amortization | 2,815 | 2,698 | 5,393 | 5,013 | Represents primarily amortization of intangible assets from prior business acquisitions and depreciation of capitalized software development costs. | ||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 7,034 | 4,804 | 19,549 | 14,063 | Increase was due to higher costs for consulting, professional fees, and technology services resulting from investments in new technologies. Increase was also due to an increase in costs for travel and in-person hosted conferences that subsided in 2021 due to the COVID pandemic. | Other expenses | 9,692 | 6,750 | 17,755 | 12,514 | Increase in 2023 compared with 2022 was due to higher costs for consulting, professional fees, and technology services resulting from investments in new technologies. Increase was also due to an increase in costs for travel and in-person hosted conferences that previously subsided due to the COVID pandemic. In addition, during the second quarter of 2023 the Company increased its allowance for uncollectible accounts due to the age of certain receivables primarily driven by economic conditions and the increase in volume of FACTS Education Solutions instructional services revenue. | ||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | Intersegment expenses, net | 4,762 | 3,672 | 14,171 | 10,856 | Intersegment expenses represent costs for certain corporate activities and services that are allocated to each operating segment based on estimated use of such activities and services. | Intersegment expenses, net | 5,884 | 4,805 | 11,684 | 9,410 | Represents costs for certain corporate activities and services that are allocated to each operating segment based on estimated use of such activities and services. | ||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 49,278 | 40,357 | 139,620 | 115,862 | Total operating expenses | 56,742 | 46,373 | 111,096 | 90,343 | ||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 18,655 | 13,992 | 66,454 | 62,199 | Income before income taxes | 18,042 | 14,687 | 55,681 | 47,800 | ||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | (4,475) | (3,358) | (15,947) | (14,928) | Represents income tax expense at an effective tax rate of 24%. | Income tax expense | (4,327) | (3,525) | (13,393) | (11,472) | Represents income tax expense at an effective tax rate of 24%. | ||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 14,180 | 10,634 | 50,507 | 47,271 | Net income | 13,715 | 11,162 | 42,288 | 36,328 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interests | (61) | — | (8) | — | Amounts for noncontrolling interests reflect the net income attributable to the holders of minority membership interests in NextGen, of which the Company became the majority owner on April 30, 2022. See note 6 of the notes to consolidated financial statements included under Part I, Item 1 of this report for additional information. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc. | $ | 14,119 | 10,634 | 50,499 | 47,271 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | Net (income) loss attributable to noncontrolling interests | (19) | 53 | 119 | 53 | Amounts for noncontrolling interests reflect the net (income) loss attributable to the holders of minority membership interests in NextGen, of which the Company became the majority owner on April 30, 2022. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 13,696 | 11,215 | 42,407 | 36,381 |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | Additional information | 2023 | 2022 | 2023 | 2022 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||
Tuition payment plan services | Tuition payment plan services | $ | 25,779 | 23,618 | 84,131 | 79,706 | Revenue increased for the three and nine months ended September 30, 2022 as compared to the same periods in 2021 due to a higher number of payment plans in the K-12 market. In addition, revenue for the three months ended September 30, 2022 increased compared to the same period in 2021 due to a higher number of payment plans for institutions of higher education. | Tuition payment plan services | $ | 30,825 | 27,637 | 65,012 | 58,352 | Increase in 2023 compared with 2022 was due to a higher number of payment plans in the K-12 and higher education market for both new and existing customers. | ||||||||||||||||||||||||||||||||||||||||||||
Payment processing | Payment processing | 47,957 | 39,852 | 113,996 | 97,898 | Payment volumes in 2022 increased as compared to 2021 for both the K-12 and higher education markets due to new customers and an increase in volume from existing customers. | Payment processing | 31,827 | 27,968 | 75,868 | 66,039 | Increase in 2023 compared with 2022 was due to increase in payment volumes for both the K-12 and higher education markets due to new customers and an increase in volume from existing customers. | ||||||||||||||||||||||||||||||||||||||||||||||
Education technology and services | Education technology and services | 32,548 | 21,295 | 110,755 | 78,752 | Increase in 2022 compared to 2021 was due to an increase in revenues from the Company’s school information system software, enrollment and communication products, revenue from the NextGen acquisition, and FACTS Education Solutions instructional and professional development services. FACTS Education Solutions instructional services revenue was the largest component of this increase, driven by the Emergency Assistance to Non-Public Schools (“EANS”) program which provides funds to non-public schools through September 2024 to address the impact the COVID-19 pandemic has had or continues to have on school students and teachers. | Education technology and services | 46,216 | 34,956 | 101,004 | 78,207 | Increase in 2023 compared with 2022 was due to an increase in revenue from the Company’s school information system software, enrollment and communication services, the NextGen acquisition completed in April 2022, and FACTS Education Solutions instructional and professional development services. FACTS Education Solutions instructional services revenue was the largest component of this increase, driven by the Emergency Assistance to Non-Public Schools (EANS) program which provides funds to non-public schools through September 2024 to address the impact COVID-19 has had or continues to have on students and teachers. | ||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 610 | 559 | 1,329 | 928 | Other | 990 | 470 | 1,578 | 719 | ||||||||||||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | 106,894 | 85,324 | 310,211 | 257,284 | Education technology, services, and payment processing revenue | 109,858 | 91,031 | 243,462 | 203,317 | ||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services | Cost of services | 42,676 | 31,335 | 109,073 | 80,063 | Costs primarily relate to payment processing revenue and such costs decrease/increase in relationship to payment volumes. Costs to provide instructional services are also included as a component of this expense and were the primary driver of the increase in 2022 compared to 2021 due to the increase in instructional services resulting from the EANS program as noted for Education technology and services revenue above. | Cost of services | 40,407 | 30,852 | 88,110 | 66,397 | Represents costs relating to payment processing revenue and such costs decrease/increase in relationship to payment volumes. Costs to provide instructional services are also a component of this expense and were the primary driver of the increase in 2023 compared with 2022 due to the increase in instructional services resulting from the EANS program as noted above. In addition, the cost of providing instructional services has increased as a percentage of revenue in 2023 compared with 2022. | ||||||||||||||||||||||||||||||||||||||||||||||
Net revenue | Net revenue | $ | 64,218 | 53,989 | 201,138 | 177,221 | Net revenue | $ | 69,451 | 60,179 | 155,352 | 136,920 | ||||||||||||||||||||||||||||||||||||||||||||||
Before tax operating margin | 23.3 | % | 25.3 | % | 30.6% | 34.6% | Before tax operating margin is a measure of before tax operating profitability as a percentage of revenue, and for the ETS&PP segment is calculated as income before income taxes less interest income divided by net revenue. The Company uses this metric to monitor and assess the segment’s performance, manage operating costs, identify and evaluate business trends affecting the segment, and make strategic decisions, and believes that it facilitates an understanding of the operating performance of the segment and provides a meaningful comparison of the results of operations between periods. The decrease in margin for 2022 as compared to 2021 was due to investments in (i) the development of new services and technologies; and (ii) superior customer experiences to align with the Company’s strategies to grow, retain, and diversify revenues. | |||||||||||||||||||||||||||||||||||||||||||||||||||
GAAP before tax operating margin | GAAP before tax operating margin | 26.0 | % | 24.4 | % | 35.8 | % | 34.9 | % | Before tax operating margin, excluding net interest income, is a non-GAAP measure of before tax operating profitability as a percentage of revenue, and for the ETS&PP segment is calculated as income before income taxes less interest income divided by net revenue. The Company uses this metric to monitor and assess the segment’s performance, manage operating costs, identify and evaluate business trends affecting the segment, and make strategic decisions, and believes that it facilitates an understanding of the operating performance of the segment and provides a meaningful comparison of the results of operations between periods. Before tax operating margin, excluding net interest income, decreased in 2023 compared with 2022 due to investments in (i) the development of new services and technologies; and (ii) superior customer experiences to align with the Company’s strategies to grow, retain, and diversify revenues. Additionally, the Company has had significant growth in FACTS Education Solutions instructional services revenue which has a lower before tax operating margin compared to the rest of the Company's services. The Company anticipates before tax operating margin, excluding net interest income, will be impacted over the next several years as it continues to invest in the development of new services and customer experiences but could see some improvement when the EANS program ends in September 2024. | ||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | (7.6) | (1.4) | (7.2) | (0.9) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-GAAP before tax operating margin, excluding net interest income | Non-GAAP before tax operating margin, excluding net interest income | 18.4 | % | 23.0 | % | 28.6 | % | 34.0 | % |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 15,855,137 | 19,331,725 | 17,441,790 | 19,559,108 | Beginning balance | $ | 13,482,620 | 16,618,627 | 14,169,771 | 17,441,790 | ||||||||||||||||||||||||||||||||||
Loan acquisitions: | Loan acquisitions: | Loan acquisitions: | ||||||||||||||||||||||||||||||||||||||||||||
Federally insured student loans | Federally insured student loans | 896 | 70,844 | 54,845 | 833,313 | Federally insured student loans | 512,611 | 43,747 | 515,591 | 53,949 | ||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 667 | 1,680 | 8,177 | 88,131 | Private education loans | — | 6,484 | — | 7,510 | ||||||||||||||||||||||||||||||||||||
Consumer and other loans | Consumer and other loans | 120,465 | 20,939 | 256,998 | 61,319 | Consumer and other loans | 59,972 | 118,012 | 310,678 | 136,534 | ||||||||||||||||||||||||||||||||||||
Total loan acquisitions | Total loan acquisitions | 122,028 | 93,463 | 320,020 | 982,763 | Total loan acquisitions | 572,583 | 168,243 | 826,269 | 197,993 | ||||||||||||||||||||||||||||||||||||
Repayments, claims, capitalized interest, participations, and other, net | Repayments, claims, capitalized interest, participations, and other, net | (385,312) | (818,554) | (1,310,913) | (1,415,249) | Repayments, claims, capitalized interest, participations, and other, net | (443,068) | (478,461) | (853,307) | (925,601) | ||||||||||||||||||||||||||||||||||||
Loans lost to external parties | Loans lost to external parties | (768,923) | (145,270) | (1,609,728) | (587,841) | Loans lost to external parties | (214,734) | (453,158) | (483,430) | (840,806) | ||||||||||||||||||||||||||||||||||||
Loans sold | Loans sold | (28,915) | (23,670) | (47,154) | (101,087) | Loans sold | (158,276) | (114) | (420,178) | (18,239) | ||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | $ | 14,794,015 | 18,437,694 | 14,794,015 | 18,437,694 | Ending balance | $ | 13,239,125 | 15,855,137 | 13,239,125 | 15,855,137 |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
Variable loan yield, gross | Variable loan yield, gross | 5.05 | % | 2.61 | % | 3.76 | % | 2.65 | % | Variable loan yield, gross | 7.73 | % | 3.59 | % | 7.42 | % | 3.16 | % | ||||||||||||||||||||||||||||
Consolidation rebate fees | Consolidation rebate fees | (0.84) | (0.85) | (0.85) | (0.84) | Consolidation rebate fees | (0.80) | (0.85) | (0.81) | (0.85) | ||||||||||||||||||||||||||||||||||||
Discount accretion, net of premium and deferred origination costs amortization | Discount accretion, net of premium and deferred origination costs amortization | 0.02 | 0.03 | 0.03 | 0.01 | Discount accretion, net of premium and deferred origination costs amortization | 0.06 | 0.03 | 0.05 | 0.03 | ||||||||||||||||||||||||||||||||||||
Variable loan yield, net | Variable loan yield, net | 4.23 | 1.79 | 2.94 | 1.82 | Variable loan yield, net | 6.99 | 2.77 | 6.66 | 2.34 | ||||||||||||||||||||||||||||||||||||
Loan cost of funds - interest expense (a) (b) | (3.11) | (0.99) | (1.95) | (1.03) | ||||||||||||||||||||||||||||||||||||||||||
Loan cost of funds - derivative settlements (c) (d) | (0.03) | (0.02) | 0.00 | (0.01) | ||||||||||||||||||||||||||||||||||||||||||
Loan cost of funds - interest expense (a) | Loan cost of funds - interest expense (a) | (5.94) | (1.73) | (5.73) | (1.41) | |||||||||||||||||||||||||||||||||||||||||
Loan cost of funds - derivative settlements (b) (c) | Loan cost of funds - derivative settlements (b) (c) | (0.00 | ) | 0.02 | 0.01 | 0.02 | ||||||||||||||||||||||||||||||||||||||||
Variable loan spread | Variable loan spread | 1.09 | 0.78 | 0.99 | 0.78 | Variable loan spread | 1.05 | 1.06 | 0.94 | 0.95 | ||||||||||||||||||||||||||||||||||||
Fixed rate floor income, gross | Fixed rate floor income, gross | 0.19 | 0.75 | 0.45 | 0.75 | Fixed rate floor income, gross | 0.01 | 0.46 | 0.03 | 0.57 | ||||||||||||||||||||||||||||||||||||
Fixed rate floor income - derivative settlements (c) (e) | 0.30 | (0.11) | 0.10 | (0.10) | ||||||||||||||||||||||||||||||||||||||||||
Fixed rate floor income - derivative settlements (b) (d) | Fixed rate floor income - derivative settlements (b) (d) | 0.00 | 0.09 | 0.34 | 0.01 | |||||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, net of settlements on derivatives | Fixed rate floor income, net of settlements on derivatives | 0.49 | 0.64 | 0.55 | 0.65 | Fixed rate floor income, net of settlements on derivatives | 0.01 | 0.55 | 0.37 | 0.58 | ||||||||||||||||||||||||||||||||||||
Core loan spread | Core loan spread | 1.58 | % | 1.42 | % | 1.54 | % | 1.43 | % | Core loan spread | 1.06 | % | 1.61 | % | 1.31 | % | 1.53 | % | ||||||||||||||||||||||||||||
Average balance of AGM's loans | Average balance of AGM's loans | $ | 15,466,505 | 19,084,320 | 16,371,092 | 19,178,788 | Average balance of AGM's loans | $ | 13,616,889 | 16,437,861 | 13,804,065 | 16,823,385 | ||||||||||||||||||||||||||||||||||
Average balance of AGM's debt outstanding | Average balance of AGM's debt outstanding | 15,060,823 | 18,863,730 | 15,905,170 | 18,890,832 | Average balance of AGM's debt outstanding | 13,011,224 | 15,923,648 | 13,187,073 | 16,335,310 |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
Core loan spread | Core loan spread | 1.58 | % | 1.42 | % | 1.54 | % | 1.43 | % | Core loan spread | 1.06 | % | 1.61 | % | 1.31 | % | 1.53 | % | ||||||||||||||||||||||||||||
Derivative settlements (1:3 basis swaps) | Derivative settlements (1:3 basis swaps) | 0.03 | 0.02 | (0.00 | ) | 0.01 | Derivative settlements (1:3 basis swaps) | 0.00 | (0.02) | (0.01) | (0.02) | |||||||||||||||||||||||||||||||||||
Derivative settlements (fixed rate floor income) | Derivative settlements (fixed rate floor income) | (0.30) | 0.11 | (0.10) | 0.10 | Derivative settlements (fixed rate floor income) | (0.00 | ) | (0.09) | (0.34) | (0.01) | |||||||||||||||||||||||||||||||||||
Loan spread | Loan spread | 1.31 | % | 1.55 | % | 1.44 | % | 1.54 | % | Loan spread | 1.06 | % | 1.50 | % | 0.96 | % | 1.50 | % |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, gross | Fixed rate floor income, gross | $ | 7,585 | 35,850 | 54,870 | 108,029 | Fixed rate floor income, gross | $ | 456 | 18,292 | 1,567 | 47,285 | ||||||||||||||||||||||||||||||||||
Derivative settlements (a) | Derivative settlements (a) | 11,356 | (5,209) | 11,843 | (14,648) | Derivative settlements (a) | 47 | 3,692 | 22,525 | 487 | ||||||||||||||||||||||||||||||||||||
Fixed rate floor income, net | Fixed rate floor income, net | $ | 18,941 | 30,641 | 66,713 | 93,381 | Fixed rate floor income, net | $ | 503 | 21,984 | 24,092 | 47,772 | ||||||||||||||||||||||||||||||||||
Fixed rate floor income contribution to spread, net | Fixed rate floor income contribution to spread, net | 0.49 | % | 0.64 | % | 0.55 | % | 0.65 | % | Fixed rate floor income contribution to spread, net | 0.01 | % | 0.55 | % | 0.37 | % | 0.58 | % |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | Additional information | 2023 | 2022 | 2023 | 2022 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | Net interest income after provision for loan losses | $ | 53,708 | 77,179 | 189,028 | 275,092 | See table below for additional analysis. | Net interest income after provision for loan losses | $ | 13,351 | 61,861 | 27,014 | 135,320 | See table below for additional analysis. | ||||||||||||||||||||||||||||||||||||||||||||
Other income (expense) | 4,627 | (7,275) | 16,270 | (4,514) | Other income includes primarily borrower late fees, income from providing administration activities for third-parties, and income from AGM's investment in a joint venture. Borrower late fees for the three months ended September 30, 2022 and 2021 were $2.8 million and $0.5 million, respectively, and for the nine months ended September 30, 2022 and 2021 were $7.7 million and $1.7 million, respectively. The Company suspended borrower late fees in March 2020 to provide borrowers relief as a result of the COVID-19 pandemic. The Company began to recognize borrower late fees again in May 2021 (for private education loans) and October 2021 (for federally insured student loans). The Company recognized revenue of $1.9 million and $1.7 million for the three months ended September 30, 2022 and 2021, respectively, and $6.1 million and $1.7 million for the nine months ended September 30, 2022 and 2021, respectively, as administrator and sponsor for the securitizations completed during 2021 by the joint venture to purchase and securitize private education loans sold by Wells Fargo. The Company also recognized losses of $0.3 million and $6.3 million for the three months ended September 30, 2022 and 2021, respectively, and income of $1.3 million and a loss of $5.0 million for the nine months ended September 30, 2022 and 2021, respectively, related to its investment in the joint venture. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | 2,627 | 3,444 | 5,616 | 18,715 | The Company sold $18.1 million (par value) and $28.9 million (par value) of consumer loans in January 2022 and July 2022, respectively, and recognized a gain of $3.0 million and $2.6 million, respectively. The Company also sold $77.4 million (par value) and $18.4 million (par value) of consumer loans in May 2021 and September 2021, respectively, and recognized gains of $15.3 million and $3.2 million, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | — | — | — | 2,436 | In the first quarter of 2021, due to improved economic conditions, the Company recorded a negative provision of $2.4 million related to its remaining allowance on a consumer loan securitization beneficial interest investment. Such allowance was initially recorded in March 2020 as a result of the COVID-19 pandemic. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income, net | Other income, net | 1,319 | 5,133 | 4,164 | 11,644 | Represents primarily borrower late fees, income from providing administration activities for third parties, gain/losses from repurchases of debt, and income/losses from AGM's investment in joint ventures. AGM recognized joint venture losses of $2.5 million and $2.6 million for the three and six months ended June 30, 2023, respectively, compared with losses of $0.4 million and income of $1.6 million for the same periods in 2022. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans, net | Gain on sale of loans, net | 15,511 | — | 27,323 | 2,989 | The Company sold $261.9 million (par value) and $158.3 million (par value) of consumer and other loans in the first and second quarter of 2023, respectively, and recognized net gains of $11.8 million and $15.5 million, respectively. The Company also sold $18.1 million (par value) of consumer loans in the first quarter of 2022 and recognized a gain of $3.0 million. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | Derivative settlements, net | 10,271 | (5,909) | 12,085 | (15,587) | The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce the economic effect of interest rate volatility. Derivative settlements for each applicable period should be evaluated with the Company's net interest income as reflected in the table below. | Derivative settlements, net | (18) | 4,623 | 23,319 | 1,814 | The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce the economic effect of interest rate volatility. Derivative settlements for each applicable period should be evaluated with the Company's net interest income as reflected in the table below. The majority of derivative settlements received in 2023 was from the Company's derivative portfolio used to hedge loans earning fixed rate floor income. This derivative portfolio was terminated on March 15, 2023 to minimize the Company's exposure to market volatility. | ||||||||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | Derivative market value adjustments, net | 52,991 | 7,260 | 239,125 | 44,455 | Includes the realized and unrealized gains and losses that are caused by changes in fair values of derivatives which do not qualify for "hedge treatment" under GAAP. The majority of the derivative market value adjustments during 2022 and 2021 related to the changes in fair value of the Company's floor income interest rate swaps. Such changes reflect that a decrease in the forward yield curve during a reporting period results in a decrease in the fair value of the Company's floor income interest rate swaps, and an increase in the forward yield curve during a reporting period results in an increase in the fair value of such swaps. | Derivative market value adjustments, net | 897 | 40,401 | (36,515) | 186,135 | Includes the realized and unrealized gains and losses that are caused by changes in fair values of derivatives which do not qualify for "hedge treatment" under GAAP. The majority of the derivative market value adjustments during 2023 and 2022 related to the changes in fair value of the Company's floor income interest rate swaps. Such changes reflect that a decrease in the forward yield curve during a reporting period results in a decrease in the fair value of the Company's floor income interest rate swaps, and an increase in the forward yield curve during a reporting period results in an increase in the fair value of such swaps. On March 15, 2023, AGM terminated its portfolio of floor income interest rate swaps to minimize the Company's exposure to market volatility. As such, the Company expects the derivative market value adjustments in future periods will be less substantial. | ||||||||||||||||||||||||||||||||||||||||||||||
Total other income/expense | 70,516 | (2,480) | 273,096 | 45,505 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income, net | Total other income, net | 17,709 | 50,157 | 18,291 | 202,582 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 653 | 542 | 1,858 | 1,594 | Salaries and benefits | 1,096 | 614 | 1,851 | 1,205 | Increase in 2023 compared with 2022 was due to additional headcount as the Company actively expands into new asset loan classes. | |||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 3,349 | 5,420 | 9,925 | 12,763 | The primary component of other expenses is servicing fees paid to third parties. The decrease in 2022 as compared to 2021 was due to a decrease in AGM's loan portfolio. These decreases were partially offset by increased costs due to ending COVID-19 pandemic borrower relief policies which increased servicing activities in 2022 as compared to 2021. | Other expenses | 4,115 | 3,543 | 9,131 | 6,576 | Represents primarily servicing fees paid to third parties. Also includes certain professional and legal fees. Increase in 2023 compared with 2022 was due to incurring additional professional fees as the Company actively expands into new asset loan classes. | ||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses | Intersegment expenses | 8,350 | 8,652 | 25,694 | 25,627 | Amounts include fees paid to the LSS operating segment for the servicing of AGM’s loan portfolio. These amounts exceed the actual cost of servicing the loans. The increase in servicing fees for the nine months ended September 30, 2022 as compared to the same period in 2021 was due to ending COVID-19 pandemic borrower relief policies which increased servicing activities in 2022 as compared to 2021. These increases were partially offset by the expected amortization of AGM's FFELP portfolio. Intersegment expenses also include costs for certain corporate activities and services that are allocated to each operating segment based on estimated use of such activities and services. | Intersegment expenses | 8,145 | 8,513 | 16,841 | 17,344 | Represents fees paid to LSS for the servicing of AGM’s loan portfolio. These amounts exceed the actual cost of servicing the loans. Intersegment expenses also includes costs for certain corporate activities and services that are allocated to each operating segment based on estimated use of such activities and services. | ||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 12,352 | 14,614 | 37,477 | 39,984 | Total operating expenses were 32 basis points and 31 basis points of the average balance of loans for the three months ended September 30, 2022 and 2021, respectively, and 31 basis points and 28 basis points for the nine months ended September 30, 2022 and 2021, respectively. The increase in operating expenses as a percent of the average balance of loans in 2022 as compared to 2021 was due to ending COVID-19 pandemic borrower relief policies which increased servicing activities in 2022 as compared to 2021. | Total operating expenses | 13,356 | 12,670 | 27,823 | 25,125 | Total operating expenses were 39 basis points and 31 basis points of the average balance of loans for the three months ended June 30, 2023 and 2022, respectively, and 40 basis points and 30 basis points for the six months ended June 30, 2023 and 2022, respectively. The increase in operating expenses as a percent of the average balance of loans in 2023 compared with 2022 was due to an increase in costs as the Company actively expands into new asset loan classes. | ||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 111,872 | 60,085 | 424,647 | 280,613 | Income before income taxes | 17,704 | 99,348 | 17,482 | 312,777 | ||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | (26,849) | (14,421) | (101,915) | (67,347) | Represents income tax expense at an effective tax rate of 24%. | Income tax expense | (4,249) | (23,844) | (4,196) | (75,066) | Represents income tax expense at an effective tax rate of 24%. | ||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 85,023 | 45,664 | 322,732 | 213,266 | Net income | $ | 13,455 | 75,504 | 13,286 | 237,711 | ||||||||||||||||||||||||||||||||||||||||||||||
Additional information: | Additional information: | Additional information: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 85,023 | 45,664 | 322,732 | 213,266 | See "Overview - GAAP Net Income and Non-GAAP Net Income, Excluding Adjustments" above for additional information about non-GAAP net income, excluding derivative market value adjustments. | Net income | $ | 13,455 | 75,504 | 13,286 | 237,711 | See "Overview - GAAP Net Income and Non-GAAP Net Income, Excluding Adjustments" above for additional details about non-GAAP net income, excluding derivative market value adjustments. | ||||||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | Derivative market value adjustments, net | (52,991) | (7,260) | (239,125) | (44,455) | Derivative market value adjustments, net | (897) | (40,401) | 36,515 | (186,135) | ||||||||||||||||||||||||||||||||||||||||||||||||
Tax effect | Tax effect | 12,718 | 1,742 | 57,390 | 10,669 | Tax effect | 215 | 9,696 | (8,764) | 44,672 | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income, excluding derivative market value adjustments | Net income, excluding derivative market value adjustments | $ | 44,750 | 40,146 | 140,997 | 179,480 | Net income, excluding derivative market value adjustments | $ | 12,773 | 44,799 | 41,037 | 96,248 |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | Additional information | 2023 | 2022 | 2023 | 2022 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||
Variable interest income, gross | Variable interest income, gross | $ | 196,910 | 126,270 | 459,575 | 379,705 | Increase in 2022 compared to 2021 was due to an increase in the gross yield earned on loans, partially offset by a decrease in the average balance of loans. | Variable interest income, gross | $ | 262,771 | 146,911 | 509,364 | 262,663 | Increase in 2023 compared with 2022 was due to an increase in the gross yield earned on loans, partially offset by a decrease in the average balance of loans. | ||||||||||||||||||||||||||||||||||||||||||||
Consolidation rebate fees | Consolidation rebate fees | (32,612) | (40,340) | (104,335) | (121,662) | Decrease in 2022 compared to 2021 was due to a decrease in the average consolidation loan balance. | Consolidation rebate fees | (27,211) | (34,952) | (55,610) | (71,723) | Decrease in 2023 compared with 2022 was due to a decrease in the average consolidation loan balance. | ||||||||||||||||||||||||||||||||||||||||||||||
Discount accretion, net of premium and deferred origination costs amortization | Discount accretion, net of premium and deferred origination costs amortization | 737 | 1,230 | 3,669 | 1,776 | Net discount accretion is due to the Company's purchases of loans at a net discount over the last several years. | Discount accretion, net of premium and deferred origination costs amortization | 1,890 | 1,474 | 3,497 | 2,934 | Net discount accretion is due to the Company's purchases of loans at a net discount over the last several years. | ||||||||||||||||||||||||||||||||||||||||||||||
Variable interest income, net | Variable interest income, net | 165,035 | 87,160 | 358,909 | 259,819 | Variable interest income, net | 237,450 | 113,433 | 457,251 | 193,874 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest on bonds and notes payable | Interest on bonds and notes payable | (118,135) | (48,549) | (231,960) | (123,861) | Increase in 2022 compared to 2021 was due to an increase in cost of funds, partially offset by a decrease in the average balance of debt outstanding. In addition, during the first quarter of 2021, the Company reduced interest expense by $23.8 million as a result of reversing a historical accrued interest liability on certain bonds. | Interest on bonds and notes payable | (218,602) | (68,616) | (400,665) | (113,825) | Increase in 2023 compared with 2022 was due to an increase in cost of funds, partially offset by a decrease in the average balance of debt outstanding. In addition, during the second quarter of 2023, the Company redeemed certain asset-backed debt securities prior to their maturity, resulting in the recognition of a $25.9 million non-cash expense from the write-off of the remaining debt discount associated with these bonds at the time of redemption. | ||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net (a) | Derivative settlements, net (a) | (1,085) | (700) | 242 | (939) | Derivative settlements include the net settlements (paid) received related to the Company’s 1:3 basis swaps. | Derivative settlements, net (a) | (65) | 931 | 794 | 1,327 | Represents net derivative settlements (paid) received related to the Company’s 1:3 basis swaps. | ||||||||||||||||||||||||||||||||||||||||||||||
Variable loan interest margin, net of settlements on derivatives | Variable loan interest margin, net of settlements on derivatives | 45,815 | 37,911 | 127,191 | 135,019 | Variable loan interest margin, net of settlements on derivatives | 18,783 | 45,748 | 57,380 | 81,376 | ||||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, gross | Fixed rate floor income, gross | 7,585 | 35,850 | 54,870 | 108,029 | Decrease in 2022 compared to 2021 was due to higher interest rates in 2022 as compared to 2021. Subsequent to September 30, 2022 (on November 2, 2022), the Federal Reserve again increased interest rates, and it is currently anticipated that interest rates may continue to rise as a result of inflationary pressures in the U.S. economy; increases in interest rates will reduce the amount of fixed rate floor income the Company is currently receiving. | Fixed rate floor income, gross | 456 | 18,292 | 1,567 | 47,285 | Decrease in 2023 compared with 2022 was due to higher interest rates. | ||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net (a) | Derivative settlements, net (a) | 11,356 | (5,209) | 11,843 | (14,648) | Derivative settlements include the settlements received (paid) related to the Company's floor income interest rate swaps. The increase in net derivative settlements received by the Company during 2022, as compared to net derivative settlements paid during 2021, was due to an increase in interest rates, partially offset by a decrease in the notional amount of derivatives outstanding. | Derivative settlements, net (a) | 47 | 3,692 | 22,525 | 487 | Represents net derivative settlements received related to the Company's floor income interest rate swaps. On March 15, 2023, to minimize the Company's exposure to market volatility, the Company terminated its entire derivative portfolio hedging loans earning fixed rate floor income. The decrease in net derivative settlements received by the Company during the three months ended June 30, 2023, compared with the same period in 2022, was due to the termination of the fixed rate floor derivatives in March 2023. The increase in net derivative settlements received by the Company during the six months ended June 30, 2023, compared with the same period in 2022, was due to an increase in settlements on the Company's derivatives outstanding during this period as a result of an increase in interest rates. | ||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, net of settlements on derivatives | Fixed rate floor income, net of settlements on derivatives | 18,941 | 30,641 | 66,713 | 93,381 | Fixed rate floor income, net of settlements on derivatives | 503 | 21,984 | 24,092 | 47,772 | ||||||||||||||||||||||||||||||||||||||||||||||||
Core loan interest income (a) | Core loan interest income (a) | 64,756 | 68,552 | 193,904 | 228,400 | Core loan interest income (a) | 19,286 | 67,732 | 81,472 | 129,148 | ||||||||||||||||||||||||||||||||||||||||||||||||
Investment interest | Investment interest | 10,312 | 8,771 | 28,147 | 20,301 | Increase in 2022 compared to 2021 was due to an increase in the Company's loan beneficial interest investments throughout 2021. | Investment interest | 15,857 | 8,671 | 29,664 | 17,835 | Increase in 2023 compared with 2022 was due to an increase of interest earned on restricted cash due to higher interest rates. | ||||||||||||||||||||||||||||||||||||||||||||||
Intercompany interest | Intercompany interest | (1,874) | (113) | (3,760) | (421) | Intercompany interest | (13,711) | (1,092) | (20,846) | (1,886) | Increase in 2023 compared with 2022 was due to an increase in the balance of borrowings and higher rates. | |||||||||||||||||||||||||||||||||||||||||||||||
(Provision) negative provision for loan losses - federally insured loans | (Provision) negative provision for loan losses - federally insured loans | (888) | (4,452) | (505) | 3,428 | The Company has recognized provision for loan losses during the three and nine months ended September 30, 2022 due to management's estimate of declining economic conditions, as well as establishing an initial allowance for loans acquired and originated during the period. See "Allowance for Loan Losses and Loan Delinquencies" included above under "Asset Generation and Management Operating Segment - Results of Operations" and note 2 of the notes to consolidated financial statements included under Part I, Item 1 of this report. | (Provision) negative provision for loan losses - federally insured loans | — | (2,365) | (2,411) | 383 | The primary item impacting provision for loan losses was the establishment of an initial allowance for consumer loans acquired during the periods presented. For additional information, see note 2 of the notes to consolidated financial statements included under Part I, Item 1 of this report. | ||||||||||||||||||||||||||||||||||||||||||||||
(Provision) negative provision for loan losses - private education loans | (1,154) | 1,208 | (1,971) | 781 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) negative provision for loan losses - consumer and other loans | (7,173) | (2,696) | (14,702) | 7,016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) for loan losses - private education loans | (Provision) for loan losses - private education loans | — | (1,217) | (240) | (817) | The primary item impacting provision for loan losses was the establishment of an initial allowance for consumer loans acquired during the periods presented. For additional information, see note 2 of the notes to consolidated financial statements included under Part I, Item 1 of this report. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) for loan losses - consumer and other loans | (Provision) for loan losses - consumer and other loans | (8,099) | (5,245) | (37,306) | (7,529) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses (net of settlements on derivatives) (a) | Net interest income after provision for loan losses (net of settlements on derivatives) (a) | $ | 63,979 | 71,270 | 201,113 | 259,505 | Decrease for the three and nine months ended September 30, 2022 as compared to the same periods in 2021 was due to (i) a decrease in the average balance of loans; and (ii) an increase in provision for loan losses. These items were partially offset by (i) an increase in core loan spread; (ii) an increase in interest income as a result of an increase in the Company's loan beneficial interest investments; and (iii) for the year to date comparison, the reversal of a historical accrued interest liability on certain bonds in the first quarter of 2021. | Net interest income after provision for loan losses (net of settlements on derivatives) (a) | $ | 13,333 | 66,484 | 50,333 | 137,134 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Beginning balance | $ | 423,553 | 190,571 | 257,901 | 17,543 | ||||||||||||||||||
Federally insured student loan acquisitions | — | — | — | 99,973 | |||||||||||||||||||
Private education loan acquisitions | 6,856 | — | 6,856 | — | |||||||||||||||||||
Private education loan originations | 14,311 | 13,006 | 219,857 | 99,161 | |||||||||||||||||||
Repayments | (15,244) | (10,865) | (51,011) | (21,863) | |||||||||||||||||||
Sales to AGM segment | — | (387) | (4,127) | (2,489) | |||||||||||||||||||
Ending balance | $ | 429,476 | 192,325 | 429,476 | 192,325 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Beginning balance | $ | 439,007 | 368,257 | 419,795 | 257,901 | ||||||||||||||||||
Loan originations: | |||||||||||||||||||||||
Private education loans | 7,359 | 75,204 | 21,585 | 205,546 | |||||||||||||||||||
Consumer and other loans | 13,168 | — | 32,800 | — | |||||||||||||||||||
Total loan originations | 20,527 | 75,204 | 54,385 | 205,546 | |||||||||||||||||||
Repayments | (15,046) | (17,373) | (29,575) | (35,767) | |||||||||||||||||||
Loans sold to AGM | — | (2,535) | (117) | (4,127) | |||||||||||||||||||
Ending balance | $ | 444,488 | 423,553 | 444,488 | 423,553 |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, (a) | Six months ended June 30, (a) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance | Rate | Balance | Rate | Balance | Rate | Balance | Rate | Balance | Rate | Balance | Rate | Balance | Rate | Balance | Rate | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average assets | Average assets | Average assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured student loans | Federally insured student loans | $ | 75,124 | 3.69 | % | $ | 95,510 | 1.36 | % | $ | 80,234 | 2.39 | % | $ | 56,000 | 1.36 | % | Federally insured student loans | $ | 62,476 | 6.38 | % | $ | 80,424 | 2.18 | % | $ | 63,559 | 6.15 | % | $ | 82,832 | 1.79 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 350,668 | 3.31 | 95,752 | 3.14 | 304,174 | 3.13 | 75,522 | 3.19 | Private education loans | 354,124 | 3.75 | 331,584 | 3.08 | 354,907 | 3.68 | 280,542 | 3.01 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer and other loans | Consumer and other loans | 25,530 | 13.11 | — | — | 16,469 | 12.93 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash and investments | Cash and investments | 424,899 | 3.67 | 206,802 | 1.87 | 348,697 | 2.78 | 215,213 | 1.93 | Cash and investments | 541,618 | 6.31 | 354,336 | 2.53 | 541,069 | 6.13 | 309,965 | 2.16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | Total interest-earning assets | 850,691 | 3.52 | % | 398,064 | 2.05 | % | 733,105 | 2.88 | % | 346,735 | 2.11 | % | Total interest-earning assets | 983,748 | 5.57 | % | 766,344 | 2.73 | % | 976,004 | 5.36 | % | 673,339 | 2.47 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest-earning assets | Non-interest-earning assets | 8,914 | 10,452 | 13,754 | 8,758 | Non-interest-earning assets | 7,992 | 17,144 | 8,654 | 16,214 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | Total assets | $ | 859,605 | $ | 408,516 | $ | 746,859 | $ | 355,493 | Total assets | $ | 991,740 | $ | 783,488 | $ | 984,658 | $ | 689,553 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Average liabilities and equity | Average liabilities and equity | Average liabilities and equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Brokered deposits | Brokered deposits | $ | 296,257 | 1.42 | % | $ | 84,175 | 0.84 | % | $ | 230,968 | 1.33 | % | $ | 53,459 | 0.84 | % | Brokered deposits | $ | 204,158 | 1.37 | % | $ | 249,830 | 1.31 | % | $ | 204,781 | 1.38 | % | $ | 197,783 | 1.27 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intercompany deposits | Intercompany deposits | 155,350 | 2.24 | 98,436 | 0.24 | 121,557 | 1.32 | 83,004 | 0.25 | Intercompany deposits | 149,120 | 6.54 | 137,812 | 0.83 | 168,388 | 5.67 | 104,380 | 0.62 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retail and other deposits | Retail and other deposits | 293,209 | 1.84 | 117,360 | 0.62 | 283,386 | 1.08 | 112,255 | 0.61 | Retail and other deposits | 507,701 | 3.98 | 287,656 | 0.75 | 480,009 | 3.89 | 278,393 | 0.68 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | Total interest-bearing liabilities | 744,816 | 1.76 | % | 299,971 | 0.56 | % | 635,911 | 1.22 | % | 248,718 | 0.54 | % | Total interest-bearing liabilities | 860,979 | 3.77 | % | 675,298 | 0.97 | % | 853,178 | 3.62 | % | 580,556 | 0.87 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-interest-bearing liabilities | Non-interest-bearing liabilities | 4,106 | 5,340 | 5,037 | 4,178 | Non-interest-bearing liabilities | 4,890 | 5,226 | 5,247 | 5,509 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity | Equity | 110,683 | 103,205 | 105,911 | 102,597 | Equity | 125,871 | 102,964 | 126,233 | 103,488 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | Total liabilities and equity | $ | 859,605 | $ | 408,516 | $ | 746,859 | $ | 355,493 | Total liabilities and equity | $ | 991,740 | $ | 783,488 | $ | 984,658 | $ | 689,553 |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | Additional information | 2023 | 2022 | 2023 | 2022 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||
Total interest income | Total interest income | $ | 7,551 | 2,061 | 15,792 | 5,479 | Represents interest earned on Nelnet Bank's FFELP and private education student loans, cash, and investments. Increase was due to an increase of these balances and interest rates in 2022 as compared to 2021. | Total interest income | $ | 13,661 | 5,212 | 25,920 | 8,241 | Represents interest earned on loans, cash, and investments. Increase in 2023 compared with 2022 was due to an increase of these balances and interest rates. | ||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 3,298 | 421 | 5,792 | 1,007 | Represents interest expense on deposits. Increase was due to an increase of deposits and interest rates in 2022 as compared to 2021. | Interest expense | 8,171 | 1,639 | 15,385 | 2,494 | Represents interest expense on deposits. Increase in 2023 compared with 2022 was due to an increase of deposits and interest rates. | ||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | 4,253 | 1,640 | 10,000 | 4,472 | Net interest income | 5,490 | 3,573 | 10,535 | 5,747 | ||||||||||||||||||||||||||||||||||||||||||||||||
Provision (negative provision) for loan losses | 450 | (113) | 1,462 | 378 | Represents the current period provision expense to reflect the current lifetime expected credit losses related to Nelnet Bank's loan portfolio. Increase was due to an increase in loans originated in 2022 as compared to 2021 as well as management's estimate of declining economic conditions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | Provision for loan losses | 1,493 | 582 | 3,910 | 1,011 | Increase in provision for loan losses was due to the mix of loans, including the mix of loans originated in 2023 compared with 2022. For additional information, see note 2 of the notes to consolidated financial statements included under Part I, Item 1 of this report. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | Net interest income after provision for loan losses | 3,803 | 1,753 | 8,538 | 4,094 | Net interest income after provision for loan losses | 3,997 | 2,991 | 6,625 | 4,736 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other income | Other income | 566 | 450 | 2,224 | 475 | Represents primarily income and gains from investments. | Other income | 620 | 157 | 830 | 1,659 | Represents primarily net gains and income from investments. | ||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | Derivative settlements, net | 83 | — | 83 | — | During the second quarter of 2023, Nelnet Bank entered into derivatives to hedge its exposure related to variable rate intercompany deposits to minimize volatility from future changes in interest rates. Nelnet Bank has designated its derivative instruments as cash flow hedges; however, because the hedged items are intercompany deposits, the derivative instruments are not eligible for hedge accounting in the consolidated financial statements. Accordingly, all changes in fair value of such derivatives are recorded through earnings and presented as "derivative market value adjustments, net" in the statements of operations. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | Derivative market value adjustments, net | 1,108 | — | 1,108 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income/expense | Total other income/expense | 1,811 | 157 | 2,021 | 1,659 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 1,814 | 890 | 5,082 | 3,956 | Represents salaries and benefits of Nelnet Bank associates and third-party contract labor. | Salaries and benefits | 2,297 | 1,714 | 4,361 | 3,268 | Represents salaries and benefits of Nelnet Bank associates and third-party contract labor. Increase in 2023 compared with 2022 was due to the overall growth of Nelnet Bank activities. | ||||||||||||||||||||||||||||||||||||||||||||||
Depreciation | Depreciation | 4 | — | 11 | — | Depreciation | 51 | 4 | 56 | 7 | ||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 1,427 | 445 | 3,009 | 1,227 | Represents various expenses such as consulting and professional fees, Nelnet Bank director fees, occupancy, certain information technology-related costs, insurance, marketing, and other operating expenses. Increase was due to the overall growth of Nelnet Bank activities. | Other expenses | 1,624 | 899 | 2,406 | 1,584 | Represents various expenses such as consulting and professional fees, Nelnet Bank director fees, occupancy, certain information technology-related costs, insurance, marketing, and other operating expenses. Increase in 2023 compared with 2022 was due to the overall growth of Nelnet Bank activities. | ||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses | Intersegment expenses | 69 | 32 | 171 | 72 | Represents primarily servicing costs paid to the LSS operating segment. Certain shared service and support costs incurred by the Company to support Nelnet Bank are not and will not be reflected as part of the Nelnet Bank operating segment through 2023 (when the bank's de novo period will end). The shared service and support costs incurred by the Company related to Nelnet Bank and not reflected in the bank's operating segment were $1.6 million and $0.8 million for the three months ended September 30, 2022 and 2021, respectively, and $4.4 million and $2.5 million for the nine months ended September 30, 2022 and 2021, respectively. | Intersegment expenses | 92 | 57 | 173 | 102 | Represents primarily servicing costs paid to LSS. Certain shared service and support costs incurred by the Company to support Nelnet Bank are not and will not be reflected as part of Nelnet Bank through 2023 (when the bank’s de novo period will end). The shared service and support costs incurred by the Company related to Nelnet Bank and not reflected in the bank’s operating segment were $1.8 million and $1.5 million for the three months ended June 30, 2023 and 2022, respectively, and $3.5 million and $2.8 million for the six months ended June 30, 2023 and 2022, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 3,314 | 1,367 | 8,273 | 5,255 | Total operating expenses | 4,064 | 2,674 | 6,996 | 4,961 | ||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 1,055 | 836 | 2,489 | (686) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | (246) | (200) | (574) | 151 | Represents income tax (expense) benefit at an effective tax rate of 23.3% and 24.0% for the three months ended September 30, 2022 and 2021, respectively, and 23.1% and 22.0% for the nine months ended September 30, 2022 and 2021, respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | 809 | 636 | 1,915 | (535) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 1,744 | 474 | 1,650 | 1,434 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | (396) | (106) | (362) | (328) | Represents income tax expense at an effective tax rate of 22.7% and 22.3% for the three months ended June 30, 2023 and 2022, respectively, and 21.9% and 22.9% for the six months ended June 30, 2023 and 2022, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 1,348 | 368 | 1,288 | 1,106 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional information: | Additional information: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 1,348 | 368 | 1,288 | 1,106 | See "Overview - GAAP Net Income and Non-GAAP Net Income, Excluding Adjustments" above for additional details about non-GAAP net income, excluding derivative market value adjustments. | |||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | Derivative market value adjustments, net | (1,108) | — | (1,108) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax effect | Tax effect | 266 | — | 266 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income, excluding derivative market value adjustments | Net income, excluding derivative market value adjustments | $ | 506 | 368 | 446 | 1,106 |
Nelnet Renewable Energy (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shared services (a) | WRCM (b) | Tax equity investments / syndication / administration | GRNE Solar | ALLO investment (d) | Real estate investments (e) | Venture capital investments (f) | Interest income/expense, net (g) | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | — | 3 | — | 59 | — | 141 | 1,214 | 24,459 | (21) | 25,855 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | — | — | — | (422) | — | — | — | (7,527) | (293) | (8,242) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | — | 3 | — | (363) | — | 141 | 1,214 | 16,932 | (314) | 17,613 | |||||||||||||||||||||||||||||||||||||||||||||||||
Solar construction revenue | — | — | — | 4,735 | — | — | — | — | — | 4,735 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | 921 | 1,638 | (7,929) | 58 | (9,711) | (1,089) | (957) | 192 | 7,324 | (9,553) | |||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide solar construction services | — | — | — | (9,122) | — | — | — | — | — | (9,122) | |||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | (23,003) | (53) | (878) | (1,471) | — | (57) | (226) | — | (1,277) | (26,965) | |||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | (9,218) | — | — | (1,581) | — | (8) | — | — | (116) | (10,923) | |||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | (9,820) | (82) | (97) | 47 | (1,375) | (31) | (20) | (424) | (4,945) | (16,747) | |||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | 27,145 | (3) | (754) | (539) | — | (93) | (12) | (97) | 387 | 26,034 | |||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (13,975) | 1,503 | (9,658) | (8,236) | (11,086) | (1,137) | (1) | 16,603 | 1,059 | (24,928) | |||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | 3,354 | (324) | 461 | 1,597 | 2,661 | 267 | — | (3,985) | (1,464) | 2,567 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | — | (151) | 7,737 | 1,582 | — | 23 | — | — | — | 9,191 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (10,621) | 1,028 | (1,460) | (5,057) | (8,425) | (847) | (1) | 12,618 | (405) | (13,170) | ||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | — | — | — | — | — | 318 | 106 | 5,683 | 128 | 6,235 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | — | (3,220) | (432) | (3,652) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | — | — | — | — | — | 318 | 106 | 2,463 | (304) | 2,583 | |||||||||||||||||||||||||||||||||||||||||||||||||
Solar construction revenue | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | 461 | 1,482 | (1,854) | — | (14,801) | 3,756 | 17,293 | (2,568) | 2,978 | 6,747 | |||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense | (875) | — | — | — | — | — | (5,409) | — | — | (6,284) | |||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide solar construction services | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | (21,547) | (56) | (308) | — | (71) | (55) | (153) | — | (1,539) | (23,729) | |||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | (10,159) | — | — | — | — | — | — | — | (71) | (10,230) | |||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | (9,262) | (82) | (258) | — | — | 11 | (23) | (692) | (1,935) | (12,241) | |||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | 24,147 | (3) | (3) | — | — | (95) | — | (55) | (446) | 23,545 | |||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (17,235) | 1,341 | (2,423) | — | (14,872) | 3,935 | 11,814 | (852) | (1,317) | (19,609) | |||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | 4,136 | (290) | 28 | — | 3,569 | (942) | (2,835) | 204 | 1,358 | 5,228 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | — | (134) | 2,305 | — | — | (8) | — | — | 9 | 2,172 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (13,099) | 917 | (90) | — | (11,303) | 2,985 | 8,979 | (648) | 50 | (12,209) |
Nelnet Renewable Energy (c) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Shared services (a) | WRCM (b) | Tax equity investments / syndication / administration | GRNE Solar | ALLO investment (d) | Real estate investments (e) | Venture capital investments (f) | Interest income/expense, net (g) | Other | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | — | 5 | — | 100 | — | 282 | 1,884 | 44,696 | 87 | 47,054 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | — | — | — | (695) | — | — | — | (19,504) | (361) | (20,560) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | — | 5 | — | (595) | — | 282 | 1,884 | 25,192 | (274) | 26,494 | |||||||||||||||||||||||||||||||||||||||||||||||||
Solar construction revenue | — | — | — | 13,386 | — | — | — | — | — | 13,386 | |||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | 1,547 | 3,250 | (9,877) | 102 | (27,575) | (289) | (890) | (3,749) | 10,194 | (27,287) | |||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide solar construction services | — | — | — | (17,422) | — | — | — | — | — | (17,422) | |||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | (46,387) | (109) | (1,885) | (2,667) | (30) | (138) | (403) | — | (2,765) | (54,384) | |||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | (18,048) | — | — | (2,198) | — | (14) | — | — | (194) | (20,454) | |||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | (20,386) | (163) | (918) | (901) | (1,363) | (47) | (185) | (2,642) | (3,753) | (30,358) | |||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | 56,310 | (6) | (739) | (1,051) | — | (188) | (22) | (194) | (288) | 53,822 | |||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (26,964) | 2,977 | (13,419) | (11,346) | (28,968) | (394) | 384 | 18,607 | 2,920 | (56,203) | |||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | 6,471 | (643) | 667 | 2,207 | 6,953 | 87 | (92) | (4,466) | (1,836) | 9,348 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | — | (297) | 10,640 | 2,151 | — | 29 | — | — | — | 12,523 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (20,493) | 2,037 | (2,112) | (6,988) | (22,015) | (278) | 292 | 14,141 | 1,084 | (34,332) | ||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | $ | — | — | — | — | — | 607 | 106 | 9,286 | 228 | 10,227 | ||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | — | — | — | — | — | — | — | (4,965) | (713) | (5,678) | |||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | — | — | — | — | — | 607 | 106 | 4,321 | (485) | 4,549 | |||||||||||||||||||||||||||||||||||||||||||||||||
Solar construction revenue | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | 1,150 | 2,763 | (2,723) | — | (25,815) | 8,228 | 22,195 | (3,432) | 5,506 | 7,872 | |||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense | (875) | — | — | — | — | — | (5,409) | — | — | (6,284) | |||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide solar construction services | — | — | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | (43,415) | (111) | (566) | — | (155) | (165) | (392) | — | (2,938) | (47,742) | |||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | (19,774) | — | — | — | — | — | — | — | (140) | (19,914) | |||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | (21,523) | (182) | (360) | — | (24) | 9 | (46) | (1,141) | (2,778) | (26,045) | |||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | 49,902 | (6) | (6) | — | — | (190) | — | (111) | (648) | 48,941 | |||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | (34,535) | 2,464 | (3,655) | — | (25,994) | 8,489 | 16,454 | (363) | (1,483) | (38,623) | |||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | 8,288 | (533) | (125) | — | 6,238 | (2,034) | (3,949) | 87 | 3,854 | 11,826 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net (income) loss attributable to noncontrolling interests | — | (246) | 4,174 | — | — | (14) | — | — | 20 | 3,934 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | $ | (26,247) | 1,685 | 394 | — | (19,756) | 6,441 | 12,505 | (276) | 2,391 | (22,863) |
Cash and cash equivalents | $ | |||||||
Less: Cash and cash equivalents held at Nelnet Bank (1) | ||||||||
Net cash and cash equivalents | ||||||||
Available-for-sale (AFS) debt securities (investments) - at fair value | ||||||||
Less: AFS debt securities held at Nelnet Bank - at fair value (1) | ||||||||
AFS debt securities serving as collateral on participation agreement - at fair value (2) | ||||||||
AFS debt securities serving as collateral on repurchase agreements - at fair value (3) | ||||||||
(15,956) | ||||||||
Unencumbered AFS debt securities (investments) - at fair value | ||||||||
Unencumbered private, consumer, and other loans (Non-Nelnet Bank) - at par | ||||||||
Repurchased Nelnet issued asset-backed debt securities - at par (not included on consolidated financial statements) (4) | ||||||||
Less: Repurchased Nelnet issued asset-backed debt securities serving as collateral on repurchase agreements - at par | ||||||||
Unencumbered repurchased Nelnet issued asset-backed debt securities - at par | ||||||||
Unused capacity on unsecured line of credit (5) | 495,000 | |||||||
Sources of liquidity as of | $ |
As of | |||||||||||
Carrying amount | Final maturity | ||||||||||
Bonds and notes issued in asset-backed securitizations | $ | 8/26/30 - 9/25/69 | |||||||||
FFELP, | |||||||||||
$ |
Increase in prepayment rate | Reduction in forecasted cash flow from table above | Forecasted cash flow using increased prepayment rate | ||||||||||||
2x | $ | $ | ||||||||||||
4x | $ | $ | ||||||||||||
10x | $ | $ |
Total shares repurchased | Purchase price (in thousands) | Average price of shares repurchased (per share) | |||||||||||||||
Quarter ended March 31, 2022 | 380,053 | $ | 32,899 | 86.56 | |||||||||||||
Quarter ended June 30, 2022 | 558,257 | 46,032 | 82.46 | ||||||||||||||
Quarter ended September 30, 2022 | 169,860 | 14,293 | 84.14 | ||||||||||||||
Total | 1,108,170 | $ | 93,224 | 84.12 |
As of September 30, 2022 | As of December 31, 2021 | As of June 30, 2023 | As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||||||||||||||||||||||||||||||||||
Fixed-rate loan assets | Fixed-rate loan assets | $ | 2,015,443 | 13.6 | % | $ | 7,434,068 | 42.6 | % | Fixed-rate loan assets | $ | 724,882 | 5.5 | % | $ | 1,339,900 | 9.5 | % | ||||||||||||||||||||||||||||
Variable-rate loan assets | Variable-rate loan assets | 12,778,572 | 86.4 | 10,007,722 | 57.4 | Variable-rate loan assets | 12,514,243 | 94.5 | 12,829,871 | 90.5 | ||||||||||||||||||||||||||||||||||||
Total | Total | $ | 14,794,015 | 100.0 | % | $ | 17,441,790 | 100.0 | % | Total | $ | 13,239,125 | 100.0 | % | $ | 14,169,771 | 100.0 | % | ||||||||||||||||||||||||||||
Fixed-rate debt instruments | Fixed-rate debt instruments | $ | 671,012 | 4.7 | % | $ | 801,548 | 4.7 | % | Fixed-rate debt instruments | $ | 538,762 | 4.2 | % | $ | 617,083 | 4.5 | % | ||||||||||||||||||||||||||||
Variable-rate debt instruments | Variable-rate debt instruments | 13,622,627 | 95.3 | 16,279,722 | 95.3 | Variable-rate debt instruments | 12,207,374 | 95.8 | 13,199,327 | 95.5 | ||||||||||||||||||||||||||||||||||||
Total | Total | $ | 14,293,639 | 100.0 | % | $ | 17,081,270 | 100.0 | % | Total | $ | 12,746,136 | 100.0 | % | $ | 13,816,410 | 100.0 | % |
Three months ended September 30, | Nine months ended September 30, | Three months ended June 30, | Six months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2023 | 2022 | 2023 | 2022 | |||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, gross | Fixed rate floor income, gross | $ | 7,585 | 35,850 | 54,870 | 108,029 | Fixed rate floor income, gross | $ | 456 | 18,292 | 1,567 | 47,285 | ||||||||||||||||||||||||||||||||||
Derivative settlements (a) | Derivative settlements (a) | 11,356 | (5,209) | 11,843 | (14,648) | Derivative settlements (a) | 47 | 3,692 | 22,525 | 487 | ||||||||||||||||||||||||||||||||||||
Fixed rate floor income, net | Fixed rate floor income, net | $ | 18,941 | 30,641 | 66,713 | 93,381 | Fixed rate floor income, net | $ | 503 | 21,984 | 24,092 | 47,772 |
Fixed interest rate range | Borrower/lender weighted average yield | Estimated variable conversion rate (a) | Loan balance | |||||||||||||||||
5.0 - 5.49% | 5.35% | 2.71% | $ | 177,056 | ||||||||||||||||
5.5 - 5.99% | 5.68% | 3.04% | 199,123 | |||||||||||||||||
6.0 - 6.49% | 6.19% | 3.55% | 245,508 | |||||||||||||||||
6.5 - 6.99% | 6.70% | 4.06% | 238,899 | |||||||||||||||||
7.0 - 7.49% | 7.17% | 4.53% | 87,432 | |||||||||||||||||
7.5 - 7.99% | 7.72% | 5.08% | 167,776 | |||||||||||||||||
8.0 - 8.99% | 8.18% | 5.54% | 390,549 | |||||||||||||||||
> 9.0% | 9.05% | 6.41% | 150,258 | |||||||||||||||||
$ | 1,656,601 |
Fixed interest rate range | Borrower/lender weighted average yield | Estimated variable conversion rate (a) | Loan balance | |||||||||||||||||
7.5 - 7.99% | 7.87% | 5.23% | $ | 32,997 | ||||||||||||||||
8.0 - 8.99% | 8.20% | 5.56% | 256,171 | |||||||||||||||||
> 9.0% | 9.05% | 6.41% | 130,844 | |||||||||||||||||
$ | 420,012 |
Maturity | Notional amount | Weighted average fixed rate paid by the Company (a) | ||||||||||||
2024 | $ | 2,000,000 | 0.35 | % | ||||||||||
2026 | 500,000 | 1.02 | ||||||||||||
2031 | 100,000 | 1.53 | ||||||||||||
$ | 2,600,000 | 0.52 | % |
Index | Index | Frequency of variable resets | Assets | Funding of student loan assets | Index | Frequency of variable resets | Assets | Funding of student loan assets | ||||||||||||||||||||||||||||||||
1 month LIBOR (a) | Daily | $ | 13,345,170 | — | ||||||||||||||||||||||||||||||||||||
1 month LIBOR (a) (b) | 1 month LIBOR (a) (b) | Daily | $ | 12,002,100 | — | |||||||||||||||||||||||||||||||||||
3 month H15 financial commercial paper | 3 month H15 financial commercial paper | Daily | 509,155 | — | 3 month H15 financial commercial paper | Daily | 414,602 | — | ||||||||||||||||||||||||||||||||
3 month Treasury bill | 3 month Treasury bill | Daily | 446,066 | — | 3 month Treasury bill | Daily | 403,040 | — | ||||||||||||||||||||||||||||||||
1 month LIBOR | 1 month LIBOR | Monthly | — | 8,933,130 | 1 month LIBOR | Monthly | — | 7,239,176 | ||||||||||||||||||||||||||||||||
3 month LIBOR (a) | Quarterly | — | 4,122,979 | |||||||||||||||||||||||||||||||||||||
3 month LIBOR (a) (b) | 3 month LIBOR (a) (b) | Quarterly | — | 3,255,282 | ||||||||||||||||||||||||||||||||||||
Asset-backed commercial paper (c) | Asset-backed commercial paper (c) | Varies | — | 1,530,429 | ||||||||||||||||||||||||||||||||||||
Fixed rate | Fixed rate | — | — | 646,956 | Fixed rate | — | — | 519,156 | ||||||||||||||||||||||||||||||||
Asset-backed commercial paper (b) | Varies | — | 249,543 | |||||||||||||||||||||||||||||||||||||
Auction-rate | Auction-rate | Varies | — | 208,660 | Auction-rate | Varies | — | 91,335 | ||||||||||||||||||||||||||||||||
Other | Other | — | 1,493,406 | 1,632,529 | Other | — | 1,248,304 | 1,432,668 | ||||||||||||||||||||||||||||||||
$ | 15,793,797 | 15,793,797 | $ | 14,068,046 | 14,068,046 |
Maturity | Maturity | Notional amount (i) | Maturity | Notional amount (i) | ||||||||||||
2022 | $ | 1,000,000 | ||||||||||||||
2023 | 750,000 | |||||||||||||||
2024 | 2024 | 1,750,000 | 2024 | $ | 1,750,000 | |||||||||||
2026 | 2026 | 1,150,000 | 2026 | 1,150,000 | ||||||||||||
2027 | 2027 | 250,000 | 2027 | 250,000 | ||||||||||||
$ | 4,900,000 | |||||||||||||||
$ | 3,150,000 |
Interest rates | |||||||||||||||||||||||||||||||||||||||||||||||
Change from increase of 100 basis points | Change from increase of 300 basis points | Change from decrease of 100 basis points | Change from decrease of 300 basis points | ||||||||||||||||||||||||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | 712 | 2.4 | % | $ | 3,029 | 10.2 | % | $ | 314 | 1.1 | % | $ | 3,762 | 12.7 | % | |||||||||||||||||||||||||||||||
Impact of derivative settlements (a) | 33 | 0.1 | 99 | 0.3 | (33) | (0.1) | (99) | (0.3) | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | 745 | 2.5 | % | $ | 3,128 | 10.5 | % | $ | 281 | 1.0 | % | $ | 3,663 | 12.4 | % | |||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | 0.02 | $ | 0.06 | $ | 0.01 | $ | 0.07 | |||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | (5,927) | (5.4) | % | $ | (10,505) | (9.7) | % | |||||||||||||||||||||||||||||||||||||||
Impact of derivative settlements | 7,729 | 7.1 | 23,187 | 21.4 | |||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | 1,802 | 1.7 | % | $ | 12,682 | 11.7 | % | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | 0.04 | $ | 0.26 | |||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | 1,484 | 2.4 | % | $ | 7,432 | 12.2 | % | $ | 390 | 0.6 | % | $ | 7,412 | 12.2 | % | |||||||||||||||||||||||||||||||
Impact of derivative settlements (a) | 33 | 0.1 | 99 | 0.2 | (33) | (0.1) | (99) | (0.2) | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | 1,517 | 2.5 | % | $ | 7,531 | 12.4 | % | $ | 357 | 0.5 | % | $ | 7,313 | 12.0 | % | |||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | 0.03 | $ | 0.15 | $ | 0.01 | $ | 0.15 | |||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | (16,068) | (4.6) | % | $ | (28,152) | (8.1) | % | |||||||||||||||||||||||||||||||||||||||
Impact of derivative settlements | 18,455 | 5.3 | 55,365 | 15.9 | |||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | 2,387 | 0.7 | % | $ | 27,213 | 7.8 | % | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | 0.05 | $ | 0.55 |
Interest rates | Asset and funding index mismatches | ||||||||||||||||||||||||||||||||||||||||||||||
Change from increase of 100 basis points | Change from increase of 300 basis points | Increase of 10 basis points | Increase of 30 basis points | ||||||||||||||||||||||||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Decrease in pre-tax net income before impact of derivative settlements | $ | (2,396) | (1.9) | % | $ | (3,702) | (2.9) | % | $ | (1,148) | (0.9) | % | $ | (3,445) | (2.7) | % | |||||||||||||||||||||||||||||||
Impact of derivative settlements | 6,553 | 5.2 | 19,660 | 15.5 | 1,235 | 1.0 | 3,705 | 2.9 | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | 4,157 | 3.3 | % | $ | 15,958 | 12.6 | % | $ | 87 | 0.1 | % | $ | 260 | 0.2 | % | |||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | 0.08 | $ | 0.32 | $ | 0.00 | $ | 0.01 | |||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Decrease in pre-tax net income before impact of derivative settlements | $ | (14,394) | (21.5) | % | $ | (27,280) | (40.8) | % | $ | (1,484) | (2.2) | % | $ | (4,453) | (6.7) | % | |||||||||||||||||||||||||||||||
Impact of derivative settlements | 12,252 | 18.3 | 36,756 | 55.0 | 1,487 | 2.2 | 4,461 | 6.7 | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | (2,142) | (3.2) | % | $ | 9,476 | 14.2 | % | $ | 3 | 0.0 | % | $ | 8 | 0.0 | % | |||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | (0.04) | $ | 0.19 | $ | 0.00 | $ | 0.00 | |||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Decrease in pre-tax net income before impact of derivative settlements | $ | (18,464) | (3.9) | % | $ | (31,854) | (6.7) | % | $ | (3,609) | (0.8) | % | $ | (10,828) | (2.3) | % | |||||||||||||||||||||||||||||||
Impact of derivative settlements | 25,008 | 5.3 | 75,025 | 15.8 | 3,912 | 0.8 | 11,733 | 2.5 | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | 6,544 | 1.4 | % | $ | 43,171 | 9.1 | % | $ | 303 | 0.0 | % | $ | 905 | 0.2 | % | |||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | 0.13 | $ | 0.87 | $ | 0.00 | $ | 0.02 | |||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Decrease in pre-tax net income before impact of derivative settlements | $ | (42,749) | (12.8) | % | $ | (79,285) | (23.7) | % | $ | (4,659) | (1.4) | % | $ | (13,980) | (4.2) | % | |||||||||||||||||||||||||||||||
Impact of derivative settlements | 30,944 | 9.3 | 92,831 | 27.8 | 4,474 | 1.3 | 13,423 | 4.0 | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | (11,805) | (3.5) | % | $ | 13,546 | 4.1 | % | $ | (185) | (0.1) | % | $ | (557) | (0.2) | % | |||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | (0.23) | $ | 0.27 | $ | 0.00 | $ | (0.01) |
Asset and funding index mismatches | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase of 10 basis points | Increase of 30 basis points | Increase of 10 basis points | Increase of 30 basis points | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2023 | Three months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | (1,182) | (4.0) | % | $ | (3,547) | (12.0) | % | $ | (1,199) | (1.1) | % | $ | (3,597) | (3.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of derivative settlements | 785 | 2.7 | 2,356 | 8.0 | 1,222 | 1.1 | 3,664 | 3.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | (397) | (1.3) | % | $ | (1,191) | (4.0) | % | $ | 23 | 0.0 | % | $ | 67 | 0.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | (0.01) | $ | (0.02) | $ | 0.00 | $ | 0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2023 | Six months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | (2,295) | (3.8) | % | $ | (6,886) | (11.3) | % | $ | (2,461) | (0.7) | % | $ | (7,383) | (2.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of derivative settlements | 1,562 | 2.6 | 4,686 | 7.7 | 2,677 | 0.8 | 8,028 | 2.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | (733) | (1.2) | % | $ | (2,200) | (3.6) | % | $ | 216 | 0.1 | % | $ | 645 | 0.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | (0.01) | $ | (0.04) | $ | 0.00 | $ | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of September 30, 2022 | As of December 31, 2021 | As of June 30, 2023 | As of December 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||||||||||||||||||||||||||||||||||
Fixed-rate loan assets | Fixed-rate loan assets | $ | 343,653 | 80.0 | % | $ | 191,410 | 74.2 | % | Fixed-rate loan assets | $ | 372,494 | $ | 341,776 | ||||||||||||||||||||||||||||||||
Fixed-rate investments | Fixed-rate investments | 98,538 | 123,809 | |||||||||||||||||||||||||||||||||||||||||||
Total fixed-rate assets | Total fixed-rate assets | 471,032 | 48.5 | % | 465,585 | 52.2 | % | |||||||||||||||||||||||||||||||||||||||
Variable-rate loan assets | Variable-rate loan assets | 85,823 | 20.0 | 66,491 | 25.8 | Variable-rate loan assets | 71,994 | 78,019 | ||||||||||||||||||||||||||||||||||||||
Total | $ | 429,476 | 100.0 | % | $ | 257,901 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||
Variable-rate investments | Variable-rate investments | 428,571 | 347,559 | |||||||||||||||||||||||||||||||||||||||||||
Total variable rate assets | Total variable rate assets | 500,565 | 51.5 | 425,578 | 47.8 | |||||||||||||||||||||||||||||||||||||||||
Total assets | Total assets | $ | 971,597 | 100.0 | % | $ | 891,163 | 100.0 | % | |||||||||||||||||||||||||||||||||||||
Fixed-rate deposits | Fixed-rate deposits | $ | 372,015 | 49.5 | % | $ | 344,315 | 80.9 | % | Fixed-rate deposits | $ | 281,583 | 32.3 | % | $ | 336,040 | 42.6 | % | ||||||||||||||||||||||||||||
Variable-rate deposits | 379,355 | 50.5 | 81,085 | 19.1 | ||||||||||||||||||||||||||||||||||||||||||
Total | $ | 751,370 | 100.0 | % | $ | 425,400 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||
Variable-rate deposits (a) | Variable-rate deposits (a) | 589,839 | 67.7 | 453,604 | 57.4 | |||||||||||||||||||||||||||||||||||||||||
Total deposits | Total deposits | $ | 871,422 | 100.0 | % | $ | 789,644 | 100.0 | % |
Average balance | Interest income/ expense | Average yields/ rates | Average balance | Interest income/ expense | Average yields/ rates | ||||||||||||||||||||||||||||||
Three months ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||
Asset-backed securities available-for-sale (a) (b) | $ | 1,076,344 | 22,911 | 8.54 | % | $ | 1,258,770 | 5,104 | 1.63 | % | |||||||||||||||||||||||||
Debt funding asset-backed securities available-for-sale: | |||||||||||||||||||||||||||||||||||
Participation agreement - variable rate (c) | $ | 76,966 | 1,094 | 5.70 | % | $ | 352,804 | 1,384 | 1.57 | % | |||||||||||||||||||||||||
Repurchase agreements - variable rate (d) | 415,514 | 6,278 | 6.06 | 471,033 | 1,682 | 1.43 | |||||||||||||||||||||||||||||
$ | 492,480 | 7,372 | 6.00 | $ | 823,837 | 3,066 | 1.49 | ||||||||||||||||||||||||||||
Six months ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||
Asset-backed securities available-for-sale (a) (b) | $ | 1,194,475 | 41,699 | 7.04 | % | $ | 1,165,545 | 8,367 | 1.45 | % | |||||||||||||||||||||||||
Debt funding asset-backed securities available-for-sale: | |||||||||||||||||||||||||||||||||||
Participation agreement - variable rate (c) | $ | 230,889 | 6,153 | 5.37 | % | $ | 304,669 | 1,944 | 1.29 | % | |||||||||||||||||||||||||
Repurchase agreements - variable rate (d) | 463,637 | 13,046 | 5.67 | 437,537 | 2,713 | 1.25 | |||||||||||||||||||||||||||||
$ | 694,526 | 19,199 | 5.57 | $ | 742,206 | 4,657 | 1.27 |
As of June 30, 2023 | As of December 31, 2022 | ||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | ||||||||||||||||||||
Fixed-rate loan assets | $ | 724,882 | 5.5 | % | $ | 1,339,900 | 9.5 | % | |||||||||||||||
Variable-rate loan assets | 12,514,243 | 94.5 | 12,829,871 | 90.5 | |||||||||||||||||||
Total | $ | 13,239,125 | 100.0 | % | $ | 14,169,771 | 100.0 | % | |||||||||||||||
Fixed-rate debt instruments | $ | 538,762 | 4.2 | % | $ | 617,083 | 4.5 | % | |||||||||||||||
Variable-rate debt instruments | 12,207,374 | 95.8 | 13,199,327 | 95.5 | |||||||||||||||||||
Total | $ | 12,746,136 | 100.0 | % | $ | 13,816,410 | 100.0 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Fixed rate floor income, gross | $ | 456 | 18,292 | 1,567 | 47,285 | ||||||||||||||||||
Derivative settlements (a) | 47 | 3,692 | 22,525 | 487 | |||||||||||||||||||
Fixed rate floor income, net | $ | 503 | 21,984 | 24,092 | 47,772 |
Fixed interest rate range | Borrower/lender weighted average yield | Estimated variable conversion rate (a) | Loan balance | |||||||||||||||||
7.5 - 7.99% | 7.87% | 5.23% | $ | 32,997 | ||||||||||||||||
8.0 - 8.99% | 8.20% | 5.56% | 256,171 | |||||||||||||||||
> 9.0% | 9.05% | 6.41% | 130,844 | |||||||||||||||||
$ | 420,012 |
Index | Frequency of variable resets | Assets | Funding of student loan assets | |||||||||||||||||
1 month LIBOR (a) (b) | Daily | $ | 12,002,100 | — | ||||||||||||||||
3 month H15 financial commercial paper | Daily | 414,602 | — | |||||||||||||||||
3 month Treasury bill | Daily | 403,040 | — | |||||||||||||||||
1 month LIBOR (a) | Monthly | — | 7,239,176 | |||||||||||||||||
3 month LIBOR (a) (b) | Quarterly | — | 3,255,282 | |||||||||||||||||
Asset-backed commercial paper (c) | Varies | — | 1,530,429 | |||||||||||||||||
Fixed rate | — | — | 519,156 | |||||||||||||||||
Auction-rate (d) | Varies | — | 91,335 | |||||||||||||||||
Other (e) | — | 1,248,304 | 1,432,668 | |||||||||||||||||
$ | 14,068,046 | 14,068,046 |
Maturity | Notional amount (i) | |||||||
2024 | $ | 1,750,000 | ||||||
2026 | 1,150,000 | |||||||
2027 | 250,000 | |||||||
$ | 3,150,000 |
Interest rates | |||||||||||||||||||||||||||||||||||||||||||||||
Change from increase of 100 basis points | Change from increase of 300 basis points | Change from decrease of 100 basis points | Change from decrease of 300 basis points | ||||||||||||||||||||||||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | 712 | 2.4 | % | $ | 3,029 | 10.2 | % | $ | 314 | 1.1 | % | $ | 3,762 | 12.7 | % | |||||||||||||||||||||||||||||||
Impact of derivative settlements (a) | 33 | 0.1 | 99 | 0.3 | (33) | (0.1) | (99) | (0.3) | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | 745 | 2.5 | % | $ | 3,128 | 10.5 | % | $ | 281 | 1.0 | % | $ | 3,663 | 12.4 | % | |||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | 0.02 | $ | 0.06 | $ | 0.01 | $ | 0.07 | |||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | (5,927) | (5.4) | % | $ | (10,505) | (9.7) | % | |||||||||||||||||||||||||||||||||||||||
Impact of derivative settlements | 7,729 | 7.1 | 23,187 | 21.4 | |||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | 1,802 | 1.7 | % | $ | 12,682 | 11.7 | % | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | 0.04 | $ | 0.26 | |||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | 1,484 | 2.4 | % | $ | 7,432 | 12.2 | % | $ | 390 | 0.6 | % | $ | 7,412 | 12.2 | % | |||||||||||||||||||||||||||||||
Impact of derivative settlements (a) | 33 | 0.1 | 99 | 0.2 | (33) | (0.1) | (99) | (0.2) | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | 1,517 | 2.5 | % | $ | 7,531 | 12.4 | % | $ | 357 | 0.5 | % | $ | 7,313 | 12.0 | % | |||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | 0.03 | $ | 0.15 | $ | 0.01 | $ | 0.15 | |||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | (16,068) | (4.6) | % | $ | (28,152) | (8.1) | % | |||||||||||||||||||||||||||||||||||||||
Impact of derivative settlements | 18,455 | 5.3 | 55,365 | 15.9 | |||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | 2,387 | 0.7 | % | $ | 27,213 | 7.8 | % | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | 0.05 | $ | 0.55 |
Asset and funding index mismatches | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase of 10 basis points | Increase of 30 basis points | Increase of 10 basis points | Increase of 30 basis points | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2023 | Three months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | (1,182) | (4.0) | % | $ | (3,547) | (12.0) | % | $ | (1,199) | (1.1) | % | $ | (3,597) | (3.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of derivative settlements | 785 | 2.7 | 2,356 | 8.0 | 1,222 | 1.1 | 3,664 | 3.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | (397) | (1.3) | % | $ | (1,191) | (4.0) | % | $ | 23 | 0.0 | % | $ | 67 | 0.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | (0.01) | $ | (0.02) | $ | 0.00 | $ | 0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2023 | Six months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | (2,295) | (3.8) | % | $ | (6,886) | (11.3) | % | $ | (2,461) | (0.7) | % | $ | (7,383) | (2.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of derivative settlements | 1,562 | 2.6 | 4,686 | 7.7 | 2,677 | 0.8 | 8,028 | 2.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | (733) | (1.2) | % | $ | (2,200) | (3.6) | % | $ | 216 | 0.1 | % | $ | 645 | 0.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | (0.01) | $ | (0.04) | $ | 0.00 | $ | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2023 | As of December 31, 2022 | ||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | ||||||||||||||||||||
Fixed-rate loan assets | $ | 372,494 | $ | 341,776 | |||||||||||||||||||
Fixed-rate investments | 98,538 | 123,809 | |||||||||||||||||||||
Total fixed-rate assets | 471,032 | 48.5 | % | 465,585 | 52.2 | % | |||||||||||||||||
Variable-rate loan assets | 71,994 | 78,019 | |||||||||||||||||||||
Variable-rate investments | 428,571 | 347,559 | |||||||||||||||||||||
Total variable rate assets | 500,565 | 51.5 | 425,578 | 47.8 | |||||||||||||||||||
Total assets | $ | 971,597 | 100.0 | % | $ | 891,163 | 100.0 | % | |||||||||||||||
Fixed-rate deposits | $ | 281,583 | 32.3 | % | $ | 336,040 | 42.6 | % | |||||||||||||||
Variable-rate deposits (a) | 589,839 | 67.7 | 453,604 | 57.4 | |||||||||||||||||||
Total deposits | $ | 871,422 | 100.0 | % | $ | 789,644 | 100.0 | % |
Average balance | Interest income/ expense | Average yields/ rates | Average balance | Interest income/ expense | Average yields/ rates | ||||||||||||||||||||||||||||||
Three months ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||
Asset-backed securities available-for-sale (a) (b) | $ | 1,076,344 | 22,911 | 8.54 | % | $ | 1,258,770 | 5,104 | 1.63 | % | |||||||||||||||||||||||||
Debt funding asset-backed securities available-for-sale: | |||||||||||||||||||||||||||||||||||
Participation agreement - variable rate (c) | $ | 76,966 | 1,094 | 5.70 | % | $ | 352,804 | 1,384 | 1.57 | % | |||||||||||||||||||||||||
Repurchase agreements - variable rate (d) | 415,514 | 6,278 | 6.06 | 471,033 | 1,682 | 1.43 | |||||||||||||||||||||||||||||
$ | 492,480 | 7,372 | 6.00 | $ | 823,837 | 3,066 | 1.49 | ||||||||||||||||||||||||||||
Six months ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||
Asset-backed securities available-for-sale (a) (b) | $ | 1,194,475 | 41,699 | 7.04 | % | $ | 1,165,545 | 8,367 | 1.45 | % | |||||||||||||||||||||||||
Debt funding asset-backed securities available-for-sale: | |||||||||||||||||||||||||||||||||||
Participation agreement - variable rate (c) | $ | 230,889 | 6,153 | 5.37 | % | $ | 304,669 | 1,944 | 1.29 | % | |||||||||||||||||||||||||
Repurchase agreements - variable rate (d) | 463,637 | 13,046 | 5.67 | 437,537 | 2,713 | 1.25 | |||||||||||||||||||||||||||||
$ | 694,526 | 19,199 | 5.57 | $ | 742,206 | 4,657 | 1.27 |
As of June 30, 2023 | As of December 31, 2022 | ||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | ||||||||||||||||||||
Fixed-rate loan assets | $ | 724,882 | 5.5 | % | $ | 1,339,900 | 9.5 | % | |||||||||||||||
Variable-rate loan assets | 12,514,243 | 94.5 | 12,829,871 | 90.5 | |||||||||||||||||||
Total | $ | 13,239,125 | 100.0 | % | $ | 14,169,771 | 100.0 | % | |||||||||||||||
Fixed-rate debt instruments | $ | 538,762 | 4.2 | % | $ | 617,083 | 4.5 | % | |||||||||||||||
Variable-rate debt instruments | 12,207,374 | 95.8 | 13,199,327 | 95.5 | |||||||||||||||||||
Total | $ | 12,746,136 | 100.0 | % | $ | 13,816,410 | 100.0 | % |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||||||||||
Fixed rate floor income, gross | $ | 456 | 18,292 | 1,567 | 47,285 | ||||||||||||||||||
Derivative settlements (a) | 47 | 3,692 | 22,525 | 487 | |||||||||||||||||||
Fixed rate floor income, net | $ | 503 | 21,984 | 24,092 | 47,772 |
Fixed interest rate range | Borrower/lender weighted average yield | Estimated variable conversion rate (a) | Loan balance | |||||||||||||||||
7.5 - 7.99% | 7.87% | 5.23% | $ | 32,997 | ||||||||||||||||
8.0 - 8.99% | 8.20% | 5.56% | 256,171 | |||||||||||||||||
> 9.0% | 9.05% | 6.41% | 130,844 | |||||||||||||||||
$ | 420,012 |
Index | Frequency of variable resets | Assets | Funding of student loan assets | |||||||||||||||||
1 month LIBOR (a) (b) | Daily | $ | 12,002,100 | — | ||||||||||||||||
3 month H15 financial commercial paper | Daily | 414,602 | — | |||||||||||||||||
3 month Treasury bill | Daily | 403,040 | — | |||||||||||||||||
1 month LIBOR (a) | Monthly | — | 7,239,176 | |||||||||||||||||
3 month LIBOR (a) (b) | Quarterly | — | 3,255,282 | |||||||||||||||||
Asset-backed commercial paper (c) | Varies | — | 1,530,429 | |||||||||||||||||
Fixed rate | — | — | 519,156 | |||||||||||||||||
Auction-rate (d) | Varies | — | 91,335 | |||||||||||||||||
Other (e) | — | 1,248,304 | 1,432,668 | |||||||||||||||||
$ | 14,068,046 | 14,068,046 |
Maturity | Notional amount (i) | |||||||
2024 | $ | 1,750,000 | ||||||
2026 | 1,150,000 | |||||||
2027 | 250,000 | |||||||
$ | 3,150,000 |
Interest rates | |||||||||||||||||||||||||||||||||||||||||||||||
Change from increase of 100 basis points | Change from increase of 300 basis points | Change from decrease of 100 basis points | Change from decrease of 300 basis points | ||||||||||||||||||||||||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | 712 | 2.4 | % | $ | 3,029 | 10.2 | % | $ | 314 | 1.1 | % | $ | 3,762 | 12.7 | % | |||||||||||||||||||||||||||||||
Impact of derivative settlements (a) | 33 | 0.1 | 99 | 0.3 | (33) | (0.1) | (99) | (0.3) | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | 745 | 2.5 | % | $ | 3,128 | 10.5 | % | $ | 281 | 1.0 | % | $ | 3,663 | 12.4 | % | |||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | 0.02 | $ | 0.06 | $ | 0.01 | $ | 0.07 | |||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | (5,927) | (5.4) | % | $ | (10,505) | (9.7) | % | |||||||||||||||||||||||||||||||||||||||
Impact of derivative settlements | 7,729 | 7.1 | 23,187 | 21.4 | |||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | 1,802 | 1.7 | % | $ | 12,682 | 11.7 | % | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | 0.04 | $ | 0.26 | |||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2023 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | 1,484 | 2.4 | % | $ | 7,432 | 12.2 | % | $ | 390 | 0.6 | % | $ | 7,412 | 12.2 | % | |||||||||||||||||||||||||||||||
Impact of derivative settlements (a) | 33 | 0.1 | 99 | 0.2 | (33) | (0.1) | (99) | (0.2) | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | 1,517 | 2.5 | % | $ | 7,531 | 12.4 | % | $ | 357 | 0.5 | % | $ | 7,313 | 12.0 | % | |||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | 0.03 | $ | 0.15 | $ | 0.01 | $ | 0.15 | |||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | (16,068) | (4.6) | % | $ | (28,152) | (8.1) | % | |||||||||||||||||||||||||||||||||||||||
Impact of derivative settlements | 18,455 | 5.3 | 55,365 | 15.9 | |||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | 2,387 | 0.7 | % | $ | 27,213 | 7.8 | % | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | 0.05 | $ | 0.55 |
Asset and funding index mismatches | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase of 10 basis points | Increase of 30 basis points | Increase of 10 basis points | Increase of 30 basis points | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended June 30, 2023 | Three months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | (1,182) | (4.0) | % | $ | (3,547) | (12.0) | % | $ | (1,199) | (1.1) | % | $ | (3,597) | (3.3) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of derivative settlements | 785 | 2.7 | 2,356 | 8.0 | 1,222 | 1.1 | 3,664 | 3.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | (397) | (1.3) | % | $ | (1,191) | (4.0) | % | $ | 23 | 0.0 | % | $ | 67 | 0.1 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | (0.01) | $ | (0.02) | $ | 0.00 | $ | 0.00 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2023 | Six months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in pre-tax net income before impact of derivative settlements | $ | (2,295) | (3.8) | % | $ | (6,886) | (11.3) | % | $ | (2,461) | (0.7) | % | $ | (7,383) | (2.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of derivative settlements | 1,562 | 2.6 | 4,686 | 7.7 | 2,677 | 0.8 | 8,028 | 2.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | (733) | (1.2) | % | $ | (2,200) | (3.6) | % | $ | 216 | 0.1 | % | $ | 645 | 0.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | (0.01) | $ | (0.04) | $ | 0.00 | $ | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
As of June 30, 2023 | As of December 31, 2022 | ||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | ||||||||||||||||||||
Fixed-rate loan assets | $ | 372,494 | $ | 341,776 | |||||||||||||||||||
Fixed-rate investments | 98,538 | 123,809 | |||||||||||||||||||||
Total fixed-rate assets | 471,032 | 48.5 | % | 465,585 | 52.2 | % | |||||||||||||||||
Variable-rate loan assets | 71,994 | 78,019 | |||||||||||||||||||||
Variable-rate investments | 428,571 | 347,559 | |||||||||||||||||||||
Total variable rate assets | 500,565 | 51.5 | 425,578 | 47.8 | |||||||||||||||||||
Total assets | $ | 971,597 | 100.0 | % | $ | 891,163 | 100.0 | % | |||||||||||||||
Fixed-rate deposits | $ | 281,583 | 32.3 | % | $ | 336,040 | 42.6 | % | |||||||||||||||
Variable-rate deposits (a) | 589,839 | 67.7 | 453,604 | 57.4 | |||||||||||||||||||
Total deposits | $ | 871,422 | 100.0 | % | $ | 789,644 | 100.0 | % |
Average balance | Interest income/ expense | Average yields/ rates | Average balance | Interest income/ expense | Average yields/ rates | ||||||||||||||||||||||||||||||
Three months ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||
Asset-backed securities available-for-sale (a) (b) | $ | 1,076,344 | 22,911 | 8.54 | % | $ | 1,258,770 | 5,104 | 1.63 | % | |||||||||||||||||||||||||
Debt funding asset-backed securities available-for-sale: | |||||||||||||||||||||||||||||||||||
Participation agreement - variable rate (c) | $ | 76,966 | 1,094 | 5.70 | % | $ | 352,804 | 1,384 | 1.57 | % | |||||||||||||||||||||||||
Repurchase agreements - variable rate (d) | 415,514 | 6,278 | 6.06 | 471,033 | 1,682 | 1.43 | |||||||||||||||||||||||||||||
$ | 492,480 | 7,372 | 6.00 | $ | 823,837 | 3,066 | 1.49 | ||||||||||||||||||||||||||||
Six months ended June 30, | |||||||||||||||||||||||||||||||||||
2023 | 2022 | ||||||||||||||||||||||||||||||||||
Investments: | |||||||||||||||||||||||||||||||||||
Asset-backed securities available-for-sale (a) (b) | $ | 1,194,475 | 41,699 | 7.04 | % | $ | 1,165,545 | 8,367 | 1.45 | % | |||||||||||||||||||||||||
Debt funding asset-backed securities available-for-sale: | |||||||||||||||||||||||||||||||||||
Participation agreement - variable rate (c) | $ | 230,889 | 6,153 | 5.37 | % | $ | 304,669 | 1,944 | 1.29 | % | |||||||||||||||||||||||||
Repurchase agreements - variable rate (d) | 463,637 | 13,046 | 5.67 | 437,537 | 2,713 | 1.25 | |||||||||||||||||||||||||||||
$ | 694,526 | 19,199 | 5.57 | $ | 742,206 | 4,657 | 1.27 |
Period | Total number of shares purchased (a) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs (b) | Maximum number of shares that may yet be purchased under the plans or programs (b) | ||||||||||||||||||||||
July 1 - July 31, 2022 | 76,211 | $ | 85.79 | 76,211 | 4,607,626 | |||||||||||||||||||||
August 1 - August 31, 2022 | 23,058 | 85.74 | 23,058 | 4,584,568 | ||||||||||||||||||||||
September 1 - September 30, 2022 | 70,591 | 81.84 | 66,632 | 4,517,936 | ||||||||||||||||||||||
Total | 169,860 | $ | 84.14 | 165,901 |
Period | Total number of shares purchased (a) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs (b) | Maximum number of shares that may yet be purchased under the plans or programs (b) | ||||||||||||||||||||||
April 1 - April 30, 2023 | — | $ | — | — | 4,467,021 | |||||||||||||||||||||
May 1 - May 31, 2023 | 260 | 91.89 | — | 4,467,021 | ||||||||||||||||||||||
June 1 - June 30, 2023 | 4,474 | 98.71 | — | 4,467,021 | ||||||||||||||||||||||
Total | 4,734 | $ | 98.34 | — |
Name and Title | Date of Adoption of Rule 10b5-1 Trading Plan | Scheduled Expiration Date of Rule 10b5-1 Trading Plan (a) | Aggregate Number of Securities to Be Purchased or Sold | |||||||||||||||||
Jona M. Van Deun Director | 5/16/2023 | 9/15/2023 | Sale of 785 shares of Class A common stock | |||||||||||||||||
William J. Munn Corporate Secretary / Chief Governance Officer / General Counsel | 6/1/2023 | 6/1/2024 | Sale of 2,500 shares of Class A common stock | |||||||||||||||||
Michael S. Dunlap Executive Chairman | 6/7/2023 | 7/7/2024 | Gift transfer of 40,000 shares of Class A common stock | |||||||||||||||||
Kathleen A. Farrell Director | 6/16/2023 | 6/15/2024 | Sale of 1,000 shares of Class A common stock |
10.1# | |||||
10.2# | |||||
10.3*+ | |||||
10.4*+ | |||||
10.5* | |||||
31.1* | |||||
31.2* | |||||
32** | |||||
101.INS* | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document. | ||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document. | ||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document. | ||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document. | ||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document. | ||||
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
* | Filed herewith | ||||
** | Furnished herewith | ||||
# | Indicates a management contract or compensatory plan or arrangement. | ||||
+ | Filed herewith for purposes of providing a complete set of all amendment and restated documents to the Third Amended and Restated Credit Agreement among Nelnet, Inc., U.S. Bank National Association, as Administrative Agent, and the various lender parties thereto. | ||||
NELNET, INC. | ||||||||||||||
Date: | By: | /s/ JEFFREY R. NOORDHOEK | ||||||||||||
Name: | Jeffrey R. Noordhoek | |||||||||||||
Title: | Chief Executive Officer Principal Executive Officer | |||||||||||||
Date: | By: | /s/ JAMES D. KRUGER | ||||||||||||
Name: | James D. Kruger | |||||||||||||
Title: | Chief Financial Officer Principal Financial Officer and Principal Accounting Officer |