Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Jan. 31, 2024 | Jun. 30, 2023 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2023 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-31924 | ||
Entity Registrant Name | NELNET, INC | ||
Entity Incorporation, State or Country Code | NE | ||
Entity Tax Identification Number | 84-0748903 | ||
Entity Address, Address Line One | 121 South 13th Street, Suite 100 | ||
Entity Address, City or Town | Lincoln, | ||
Entity Address, State or Province | NE | ||
Entity Address, Postal Zip Code | 68508 | ||
City Area Code | 402 | ||
Local Phone Number | 458-2370 | ||
Title of 12(b) Security | Class A Common Stock, Par Value $0.01 per Share | ||
Trading Symbol | NNI | ||
Security Exchange Name | NYSE | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Document Financial Statement Error Correction [Flag] | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 1,631,360,831 | ||
Documents Incorporated by Reference | Portions of the registrant’s definitive Proxy Statement to be filed for its 2024 Annual Meeting of Shareholders, scheduled to be held May 16, 2024, are incorporated by reference into Part III of this Form 10-K. | ||
Entity Central Index Key | 0001258602 | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2023 | ||
Document Fiscal Period Focus | FY | ||
Class A | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 26,378,391 | ||
Class B | |||
Document Information [Line Items] | |||
Entity Common Stock, Shares Outstanding | 10,663,088 |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2023 | |
Audit Information [Abstract] | |
Auditor Name | KPMG LLP |
Auditor Location | Lincoln, Nebraska |
Auditor Firm ID | 185 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Loans and accrued interest receivable | $ 13,108,204 | $ 15,243,889 |
Cash and cash equivalents: | ||
Cash and cash equivalents | 168,112 | 118,146 |
Investments and notes receivable | 1,870,968 | 2,111,917 |
Restricted cash | 488,723 | 945,159 |
Restricted cash - due to customers | 368,656 | 294,311 |
Restricted investments | 17,969 | 0 |
Accounts receivable (net of allowance for doubtful accounts of $4,304 and $3,079, respectively) | 196,200 | 194,851 |
Goodwill | 158,029 | 176,902 |
Intangible assets, net | 44,819 | 63,501 |
Property and equipment, net | 127,008 | 122,526 |
Other assets | 187,957 | 102,842 |
Total assets | 16,736,645 | 19,374,044 |
Liabilities: | ||
Bonds and notes payable | 11,828,393 | 14,637,195 |
Accrued interest payable | 35,391 | 36,049 |
Bank deposits | 743,599 | 691,322 |
Other liabilities | 481,840 | 461,259 |
Due to customers | 425,507 | 348,317 |
Total liabilities | 13,514,730 | 16,174,142 |
Commitments and contingencies | ||
Nelnet, Inc. shareholders' equity: | ||
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding | 0 | 0 |
Common stock: | ||
Additional paid-in capital | 3,096 | 1,109 |
Retained earnings | 3,279,273 | 3,234,844 |
Accumulated other comprehensive loss, net | (20,119) | (37,366) |
Total Nelnet, Inc. shareholders' equity | 3,262,621 | 3,198,959 |
Noncontrolling interests | (40,706) | 943 |
Total equity | 3,221,915 | 3,199,902 |
Total liabilities and equity | 16,736,645 | 19,374,044 |
Nonrelated Party | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | 34,912 | 24,584 |
Related Party | ||
Cash and cash equivalents: | ||
Cash and cash equivalents | 133,200 | 93,562 |
Class A | ||
Common stock: | ||
Common stock | 264 | 265 |
Class B | ||
Common stock: | ||
Common stock | 107 | 107 |
Variable Interest Entity, Primary Beneficiary | ||
Assets: | ||
Loans and accrued interest receivable | 12,676,932 | 14,585,491 |
Cash and cash equivalents: | ||
Restricted cash | 451,932 | 867,961 |
Liabilities: | ||
Bonds and notes payable | 12,006,170 | 14,233,586 |
Common stock: | ||
Accrued interest payable and other liabilities | (135,748) | (145,309) |
Net assets of consolidated education and other lending variable interest entities | $ 986,946 | $ 1,074,557 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Allowance for loan losses | $ 104,643 | $ 131,827 |
Allowance for doubtful accounts | $ 4,304 | $ 3,079 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, authorized shares (in shares) | 50,000,000 | 50,000,000 |
Preferred stock, issued shares (in shares) | 0 | 0 |
Preferred stock, outstanding shares (in shares) | 0 | 0 |
Class A | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 26,400,630 | 26,461,651 |
Common stock, shares outstanding (in shares) | 26,400,630 | 26,461,651 |
Class B | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 60,000,000 | 60,000,000 |
Common stock, shares issued (in shares) | 10,663,088 | 10,668,460 |
Common stock, shares outstanding (in shares) | 10,663,088 | 10,668,460 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Interest income: | |||
Loan interest | $ 931,945 | $ 651,205 | $ 482,337 |
Investment interest | 177,855 | 91,601 | 41,498 |
Total interest income | 1,109,800 | 742,806 | 523,835 |
Interest expense on bonds and notes payable and bank deposits | 845,091 | 430,137 | 176,233 |
Net interest income | 264,709 | 312,669 | 347,602 |
Less provision (negative provision) for loan losses | 65,450 | 46,441 | (12,426) |
Net interest income after provision for loan losses | 199,259 | 266,228 | 360,028 |
Other income (expense): | |||
Other, net | (48,787) | 25,486 | 78,681 |
Gain on sale of loans, net | 39,673 | 2,903 | 18,715 |
Impairment expense | (31,925) | (15,523) | (16,360) |
Derivative market value adjustments and derivative settlements, net | (16,701) | 264,634 | 71,446 |
Total other income (expense), net | 955,194 | 1,246,045 | 977,079 |
Cost of services: | |||
Cost of services | 219,759 | 168,374 | 108,660 |
Operating expenses: | |||
Salaries and benefits | 591,537 | 589,579 | 507,132 |
Depreciation and amortization | 79,118 | 74,077 | 73,741 |
Other expenses | 189,851 | 170,778 | 145,469 |
Total operating expenses | 860,506 | 834,434 | 726,342 |
Income (loss) before income taxes | 74,188 | 509,465 | 502,105 |
Income tax expense | 19,753 | 113,224 | 115,822 |
Net income | 54,435 | 396,241 | 386,283 |
Net loss attributable to noncontrolling interests | 37,097 | 11,106 | 7,003 |
Net income attributable to Nelnet, Inc. | $ 91,532 | $ 407,347 | $ 393,286 |
Earnings per common share: | |||
Net income attributable to Nelnet, Inc. shareholders - basic (in dollars per share) | $ 2.45 | $ 10.83 | $ 10.20 |
Net income attributable to Nelnet, Inc. shareholders - diluted (in dollars per share) | $ 2.45 | $ 10.83 | $ 10.20 |
Weighted-average common shares outstanding - basic (in shares) | 37,416,621 | 37,603,033 | 38,572,801 |
Weighted-average common shares outstanding - diluted (in shares) | 37,416,621 | 37,603,033 | 38,572,801 |
Loan servicing and systems | |||
Other income (expense): | |||
Revenue | $ 517,954 | $ 535,459 | $ 486,363 |
Education technology services and payments | |||
Other income (expense): | |||
Revenue | 463,311 | 408,543 | 338,234 |
Cost of services: | |||
Cost of services | 171,183 | 148,403 | 108,660 |
Solar construction | |||
Other income (expense): | |||
Revenue | 31,669 | 24,543 | 0 |
Cost of services: | |||
Cost of services | $ 48,576 | $ 19,971 | $ 0 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 54,435 | $ 396,241 | $ 386,283 |
Other comprehensive income (loss): | |||
Net changes related to foreign currency translation adjustments | (10) | (9) | (10) |
Net changes related to available-for-sale debt securities: | |||
Unrealized holding gains (losses) arising during period, net | 18,379 | (58,946) | 6,921 |
Reclassification of losses (gains) recognized in net income, net | 3,504 | (5,902) | (2,695) |
Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity | 202 | 0 | 0 |
Income tax effect | (5,301) | 15,564 | (1,014) |
Unrealized gains (losses) during period after reclassifications and tax | 16,784 | (49,284) | 3,212 |
Net changes related to equity method investee's other comprehensive income: | |||
Gain on cash flow hedges | 622 | 3,452 | 0 |
Income tax effect | (149) | (829) | 0 |
Net changes related to equity method investee's other comprehensive, after income tax effect | 473 | 2,623 | 0 |
Other comprehensive income (loss) | 17,247 | (46,670) | 3,202 |
Comprehensive income | 71,682 | 349,571 | 389,485 |
Comprehensive loss attributable to noncontrolling interests | 37,097 | 11,106 | 7,003 |
Comprehensive income attributable to Nelnet, Inc. | $ 108,779 | $ 360,677 | $ 396,488 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Preferred stock shares | Common stock shares Class A | Common stock shares Class B | Additional paid-in capital | Retained earnings | Accumulated other comprehensive earnings (loss) | Noncontrolling interests |
Beginning balance (in shares) at Dec. 31, 2020 | 0 | 27,193,154 | 11,155,571 | |||||
Beginning balance at Dec. 31, 2020 | $ 2,628,349 | $ 0 | $ 272 | $ 112 | $ 3,794 | $ 2,621,762 | $ 6,102 | $ (3,693) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of noncontrolling interests | 61,087 | 61,087 | ||||||
Net income (loss) | 386,283 | 393,286 | (7,003) | |||||
Other comprehensive income (loss) | 3,202 | 3,202 | ||||||
Distribution to noncontrolling interests | (48,759) | (48,759) | ||||||
Cash dividends on Class A and Class B common stock | (34,457) | (34,457) | ||||||
Issuance of common stock, net of forfeitures (in shares) | 280,845 | |||||||
Issuance of common stock, net of forfeitures | 4,829 | $ 2 | 4,827 | |||||
Compensation expense for stock based awards | 10,415 | 10,415 | ||||||
Repurchase of common stock (in shares) | (713,274) | |||||||
Repurchase of common stock | (58,111) | $ (7) | (18,036) | (40,068) | ||||
Conversion of common stock (in shares) | 478,929 | (478,929) | ||||||
Conversion of common stock | 0 | $ 5 | $ (5) | |||||
Ending balance (in shares) at Dec. 31, 2021 | 0 | 27,239,654 | 10,676,642 | |||||
Ending balance at Dec. 31, 2021 | 2,952,838 | $ 0 | $ 272 | $ 107 | 1,000 | 2,940,523 | 9,304 | 1,632 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of noncontrolling interests | 67,003 | 67,003 | ||||||
Net income (loss) | 396,241 | 407,347 | (11,106) | |||||
Other comprehensive income (loss) | (46,670) | (46,670) | ||||||
Distribution to noncontrolling interests | (56,586) | (56,586) | ||||||
Cash dividends on Class A and Class B common stock | (36,608) | (36,608) | ||||||
Issuance of common stock, net of forfeitures (in shares) | 376,348 | |||||||
Issuance of common stock, net of forfeitures | 7,481 | $ 4 | 7,477 | |||||
Compensation expense for stock based awards | 13,888 | 13,888 | ||||||
Repurchase of common stock (in shares) | (1,162,533) | |||||||
Repurchase of common stock | (97,685) | $ (11) | (21,256) | (76,418) | ||||
Conversion of common stock (in shares) | 8,182 | (8,182) | ||||||
Conversion of common stock | 0 | $ 0 | $ 0 | |||||
Ending balance (in shares) at Dec. 31, 2022 | 0 | 26,461,651 | 10,668,460 | |||||
Ending balance at Dec. 31, 2022 | 3,199,902 | $ 0 | $ 265 | $ 107 | 1,109 | 3,234,844 | (37,366) | 943 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Issuance of noncontrolling interests | 101,237 | 101,237 | ||||||
Net income (loss) | 54,435 | 91,532 | (37,097) | |||||
Other comprehensive income (loss) | 17,247 | 17,247 | ||||||
Distribution to noncontrolling interests | (105,789) | (105,789) | ||||||
Cash dividends on Class A and Class B common stock | (39,419) | (39,419) | ||||||
Issuance of common stock, net of forfeitures (in shares) | 270,550 | |||||||
Issuance of common stock, net of forfeitures | 6,168 | $ 3 | 6,165 | |||||
Compensation expense for stock based awards | 16,162 | 16,162 | ||||||
Repurchase of common stock (in shares) | (336,943) | |||||||
Repurchase of common stock | (28,028) | $ (4) | (20,340) | (7,684) | ||||
Conversion of common stock (in shares) | 5,372 | (5,372) | ||||||
Conversion of common stock | 0 | $ 0 | $ 0 | |||||
Ending balance (in shares) at Dec. 31, 2023 | 0 | 26,400,630 | 10,663,088 | |||||
Ending balance at Dec. 31, 2023 | $ 3,221,915 | $ 0 | $ 264 | $ 107 | $ 3,096 | $ 3,279,273 | $ (20,119) | $ (40,706) |
Consolidated Statements of Sh_2
Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Class A | |||
Cash dividend on Class A and Class B common stock (in dollars per share) | $ 1.06 | $ 0.98 | $ 0.90 |
Class B | |||
Cash dividend on Class A and Class B common stock (in dollars per share) | $ 1.06 | $ 0.98 | $ 0.90 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Statement of Cash Flows [Abstract] | ||||
Net income attributable to Nelnet, Inc. | $ 91,532 | $ 407,347 | $ 393,286 | |
Net loss attributable to noncontrolling interests | (37,097) | (11,106) | (7,003) | |
Net income | 54,435 | 396,241 | 386,283 | |
Adjustments to reconcile net income to net cash provided by operating activities, net of business acquisitions: | ||||
Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs | 145,393 | 176,248 | 132,325 | |
Loan discount accretion | (30,813) | (67,480) | (7,990) | |
Provision (negative provision) for loan losses | 65,450 | 46,441 | (12,426) | |
Derivative market value adjustments | 41,773 | (231,691) | (92,813) | |
Proceeds from termination of derivative instruments | 164,079 | 91,786 | 0 | |
(Payments to) proceeds from clearinghouse - initial and variation margin, net | (213,923) | 148,691 | 91,294 | |
Gain on sale of loans, net | (39,673) | (2,903) | (18,715) | |
Loss (gain) on investments, net | 117,968 | 24,643 | (3,811) | |
Proceeds from sale of equity securities, net of purchases | 75 | 42,841 | (42,916) | |
Deferred income tax (benefit) expense | (51,963) | 34,640 | 55,622 | |
Non-cash compensation expense | 16,476 | 14,176 | 10,673 | |
Impairment expense | 29,539 | 15,523 | 16,360 | |
Decrease (increase) in loan and investment accrued interest receivable | 47,217 | (38,500) | 1,378 | |
Increase in accounts receivable | (1,356) | (26,358) | (86,982) | |
Decrease (increase) in other assets, net | 3,890 | (11,783) | 46,214 | |
Decrease in the carrying amount of ROU asset, net | 4,881 | 5,702 | 7,170 | |
(Decrease) increase in accrued interest payable | (658) | 31,483 | (24,135) | |
Increase in other liabilities | 85,537 | 40,001 | 29,775 | |
Decrease in the carrying amount of lease liability | (5,352) | (5,642) | (6,978) | |
Net cash provided by operating activities | 432,975 | 684,059 | 480,328 | |
Cash flows from investing activities, net of business acquisitions: | ||||
Purchases and originations of loans | (735,003) | (1,452,018) | (1,318,605) | |
Purchases of loans from a related party | (467,554) | (8,310) | (22,678) | |
Net proceeds from loan repayments, claims, and capitalized interest | 2,559,384 | 4,394,183 | 3,103,776 | |
Proceeds from sale of loans | 553,018 | 123,129 | 85,906 | |
Purchases of available-for-sale securities | (581,522) | (1,029,438) | (734,817) | |
Proceeds from sales of available-for-sale securities | 963,117 | 511,124 | 160,976 | |
Proceeds from and sale of beneficial interest in loan securitizations | 32,149 | 21,531 | 40,602 | |
Purchases of other investments and issuance of notes receivable | (344,918) | (263,346) | (253,894) | |
Proceeds from other investments and repayments of notes receivable | 41,309 | 65,369 | 191,821 | |
Purchases of held-to-maturity debt securities | (12,425) | (240) | (8,200) | |
Redemption of held-to-maturity debt securities | 4,579 | 3,500 | 0 | |
Purchases of property and equipment | (74,052) | (59,421) | (58,952) | |
Business acquisitions, net of cash and restricted cash acquired | 0 | (34,036) | 0 | |
Net cash provided by investing activities | 1,938,082 | 2,272,027 | 1,185,935 | |
Cash flows from financing activities, net of business acquisitions: | ||||
Payments on bonds and notes payable | (3,606,160) | (4,339,164) | (3,683,770) | |
Proceeds from issuance of bonds and notes payable | 761,182 | 1,301,554 | 1,947,559 | |
Payments of debt issuance costs | (5,744) | (3,795) | (7,093) | |
Increase in bank deposits, net | 52,277 | 347,007 | 289,682 | |
Increase (decrease) in due to customers | 77,182 | (17,670) | 64,539 | |
Dividends paid | (39,419) | (36,608) | (34,457) | |
Repurchases of common stock | (28,028) | (97,685) | (58,111) | |
Proceeds from issuance of common stock | 1,780 | 1,633 | 1,465 | |
Issuance of noncontrolling interests | 88,389 | 55,777 | 50,716 | |
Distribution to noncontrolling interests | (4,657) | (3,548) | (878) | |
Net cash used in financing activities | (2,703,198) | (2,792,499) | (1,430,348) | |
Effect of exchange rate changes on cash | 16 | (160) | (121) | |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (332,125) | 163,427 | 235,794 | |
Cash, cash equivalents, and restricted cash, beginning of period | 1,357,616 | 1,194,189 | 958,395 | |
Cash, cash equivalents, and restricted cash, end of period | 1,025,491 | 1,357,616 | 1,194,189 | |
Supplemental disclosures of cash flow information: | ||||
Cash disbursements made for interest | 781,307 | 350,662 | 152,173 | |
Cash disbursements made for income taxes, net of refunds and credits received | [1] | 47,589 | 57,705 | 18,659 |
Cash disbursements made for operating leases | 6,550 | 6,797 | 7,970 | |
Non-cash operating, investing, and financing activity: | ||||
ROU assets obtained in exchange for lease obligations | 18,860 | 7,728 | 4,228 | |
Business acquisition deferred purchase price | 0 | 5,000 | 0 | |
Receipt of beneficial interest in consumer loan securitizations as consideration from sale of loans | 89,130 | 19,069 | 23,506 | |
Receipt of asset-backed investment securities as consideration from sale of loans | 66,546 | 13,806 | 0 | |
Asset-backed investment securities held as collateral for reinsurance treaties | 17,969 | 0 | 0 | |
Distribution to noncontrolling interests | 101,132 | 53,038 | 47,881 | |
Issuance of noncontrolling interests | $ 12,848 | $ 11,226 | $ 10,371 | |
[1]For 2023, 2022, and 2021 the Company utilized $53.8 million, $11.2 million, and $34.1 million of federal and state tax credits, respectively, related primarily to renewable energy. |
Consolidated Statements of Ca_2
Consolidated Statements of Cash Flows (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Cash Flows [Abstract] | |||
Tax credit utilized in period | $ 53,800 | $ 11,200 | $ 34,100 |
Cash and cash equivalents: | |||
Total cash and cash equivalents | 168,112 | 118,146 | 125,563 |
Restricted cash | 488,723 | 945,159 | 741,981 |
Restricted cash - due to customers | 368,656 | 294,311 | 326,645 |
Cash, cash equivalents, and restricted cash | $ 1,025,491 | $ 1,357,616 | $ 1,194,189 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | Description of Business Nelnet, Inc. and its subsidiaries (“Nelnet” or the “Company”) is a diverse, innovative company with a purpose to serve others and a vision to make dreams possible. The largest operating businesses engage in loan servicing and education technology services and payments. A significant portion of the Company's revenue is net interest income earned on a portfolio of federally insured student loans. The Company also makes investments to further diversify both within and outside of its historical core education-related businesses including, but not limited to, investments in a fiber communications company (ALLO), early-stage and emerging growth companies (venture capital investments), real estate, and renewable energy (solar). Substantially all revenue from external customers is earned, and all long-lived assets are located, in the United States. The Company was formed as a Nebraska corporation in 1978 to service federal student loans for two local banks. The Company built on this initial foundation as a servicer to become a leading originator, holder, and servicer of federal student loans, principally consisting of loans originated under the Federal Family Education Loan Program (FFELP or “FFEL Program”) of the U.S. Department of Education (the “Department”). The Health Care and Education Reconciliation Act of 2010 (the “Reconciliation Act of 2010”) discontinued new loan originations under the FFEL Program, effective July 1, 2010, and requires all new federal student loan originations be made directly by the Department through the Federal Direct Loan Program. This law does not alter or affect the terms and conditions of existing FFELP loans. Subsequent to the Reconciliation Act of 2010, the Company no longer originates FFELP loans. However, a significant portion of the Company's income continues to be derived from its existing FFELP student loan portfolio. Interest income on the Company's existing FFELP loan portfolio will decline over time as the portfolio is paid down. To reduce its reliance on interest income from FFELP loans, the Company has expanded its services and products. This expansion has been accomplished through internal growth and innovation as well as business and certain investment acquisitions. The Company is also actively expanding its private education, consumer, and other loan portfolios, or investment interests therein, and as part of this strategy launched Nelnet Bank in 2020. In addition, the Company has been servicing federally owned student loans for the Department since 2009. The Company's reportable operating segments include: • Loan Servicing and Systems (LSS) • Education Technology Services and Payments (ETSP) • Asset Generation and Management (AGM), part of the Nelnet Financial Services (NFS) division • Nelnet Bank, part of the NFS division A description of each reportable operating segments is included below. See note 16 for additional information on the Company's segment reporting. Loan Servicing and Systems The primary service offerings of the Loan Servicing and Systems reportable operating segment (known as Nelnet Diversified Services (NDS)) include: • Servicing federally owned student loans for the Department • Servicing FFELP loans • Servicing private education and consumer loans • Providing backup servicing for FFELP, private education, and consumer loans • Providing student loan servicing software and other information technology products and services • Providing outsourced services including call center, processing, and technology services LSS provides for the servicing of the Company's student loan portfolio and the portfolios of third parties. The loan servicing activities include loan conversion activities, application processing, borrower updates, customer service, payment processing, due diligence procedures, funds management reconciliations, and claim processing. These activities are performed internally for the Company's portfolio, in addition to generating external fee revenue when performed for third-party clients. In addition, LSS provides backup servicing to third parties, which allows a transfer of the customer’s servicing volume to the Company’s platform and becoming a full servicing customer if their existing servicer cannot perform their duties. Nelnet Servicing, LLC (Nelnet Servicing), a subsidiary of the Company, is one of the current four private sector entities that have student loan servicing contracts with the Department to service loans that include Federal Direct Loan Program loans originated directly by the Department and FFEL Program loans purchased by the Department. LSS also provides student loan servicing software, which is used internally and licensed to third-party student loan holders and servicers. These software systems have been adapted so that they can be offered as hosted servicing software solutions usable by third parties to service various types of student loans, including Federal Direct Loan Program and FFEL Program loans. This segment also provides business process outsourcing primarily specializing in contact center management. The contact center solutions and services include taking inbound calls, helping with outreach campaigns and sales, interacting with customers through multi-channels, and processing and technology services. Education Technology Services and Payments The Education Technology Services and Payments reportable operating segment (known as Nelnet Business Services (NBS)) provides education and payment technology and services for K-12 schools, higher education institutions, churches, and businesses in the United States and internationally. NBS provides service and technology under four divisions as described below. FACTS provides solutions that elevate the education experience in the K-12 private and faith-based markets for school administrators, teachers, and families. FACTS offers a comprehensive suite of services and technology in the following categories: (i) financial management, including tuition payment plans, incidental billing, payment forms, advanced accounting, financial needs assessments (grant and aid), and a donation platform; (ii) school management, including a school management platform and application and enrollment services; and (iii) learning management. Nelnet Campus Commerce delivers payment technology to higher education institutions. Nelnet Campus Commerce solutions include (i) tuition management, including tuition payment plans and service and technology for student billings, payments, and refunds; and (ii) integrated commerce, including solutions for in-person, online, and mobile payment experiences on campus. Nelnet Payment Services provides secure payment processing technology. Nelnet Payment Services supports and provides payment processing services, including credit card and electronic transfers, to the other divisions of NBS and Nelnet in addition to other industries and software platforms across the United States. Nelnet International provides its services and technology in Australia, New Zealand, and the Asia-Pacific region. Nelnet International serves customers in the education, local government, and health care industries. Nelnet International’s suite of services include an integrated commerce payment platform, financial management and tuition payment plan services, and a school management platform that provides administrative, information management, financial management, and communication functions for K-12 schools. Nelnet Financial Services Nelnet Financial Services is a division of the Company that includes the following reportable operating segments: • Asset Generation and Management • Nelnet Bank Asset Generation and Management The Company's Asset Generation and Management reportable operating segment includes the acquisition, management, and ownership of the Company's loan assets (excluding loan assets held by Nelnet Bank). Substantially all loan assets included in this segment are student loans originated under the FFEL Program, including the Stafford Loan Program, the PLUS Loan program, and loans that reflect the consolidation into a single loan of certain previously separate borrower obligations (“consolidation” loans). AGM also acquires private education, consumer, and other loans, or investment interests therein. AGM generates a substantial portion of its earnings from the spread, referred to as loan spread, between the yield it receives on its loan portfolio and the associated costs to finance such portfolio. The loan assets are held in a series of lending subsidiaries and associated securitization trusts designed specifically for this purpose. In addition to the loan spread earned on its portfolio, all costs and activity associated with managing the portfolio, such as servicing of the assets and debt maintenance, are included in this segment. In addition to ownership of loan assets, AGM has partial ownership in consumer, private education, and federally insured student loan third-party securitizations. These residual interests were acquired by AGM or have been received in consideration of AGM selling portfolios of loans to unrelated third parties who securitized such loans. AGM’s partial ownership percentage in each loan securitization grants AGM the right to receive the corresponding percentage of cash flows generated by the securitization. Nelnet Bank Nelnet Bank operates as an internet Utah-chartered industrial bank franchise with a home office in Salt Lake City, Utah. Nelnet Bank is focused on the private education and consumer loan marketplace. NFS Other Operating Segments In addition to the reportable operating segments of AGM and Nelnet Bank being part of the NFS division, NFS’s other operating segments that are not reportable include: • The operating results of Whitetail Rock Capital Management, LLC (WRCM), the Company's U.S. Securities and Exchange Commission (SEC)-registered investment advisor subsidiary • The operating results of Nelnet Insurance Services, which primarily includes multiple reinsurance treaties on property and causality policies • The operating results of the Company’s investment activities in real estate • The operating results of the Company’s investment debt securities (primarily student loan and other asset-backed securities) and interest expense incurred on debt used to finance such investments Corporate and Other Activities Other business activities and operating segments that are not reportable and not part of the NFS division are combined and included in Corporate and Other Activities (“Corporate”). Corporate includes the following items: • Shared service activities related to internal audit, human resources, accounting, legal, enterprise risk management, information technology, occupancy, and marketing. These costs are allocated to each operating segment based on estimated use of such activities and services • Corporate costs and overhead functions not allocated to operating segments, including executive management, investments in innovation, and other holding company organizational costs • The operating results of Nelnet Renewable Energy, which include solar tax equity investments made by the Company, administrative and management services provided by the Company on tax equity investments made by third parties, and solar construction and development • The operating results of certain of the Company’s investment activities, including its investment in ALLO Holdings LLC, a holding company for ALLO Communications LLC (collectively referred to as “ALLO”) and early-stage and emerging growth companies (venture capital investments) • Interest income earned on cash balances held at the corporate level and interest expense incurred on unsecured corporate related debt transactions • Other product and service offerings that are not considered reportable operating segments |
Summary of Significant Accounti
Summary of Significant Accounting Policies and Practices | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies and Practices | Summary of Significant Accounting Policies and Practices Consolidation The consolidated financial statements include the accounts of Nelnet, Inc. and its consolidated subsidiaries. In addition, the accounts of all variable interest entities (VIEs) of which the Company has determined that it is the primary beneficiary are included in the consolidated financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. Variable Interest Entities The Company assesses its partnerships and joint ventures to determine if the entity meets the qualifications of a VIE. The Company performs a qualitative assessment of each identified VIE to determine if it is the primary beneficiary. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. The Company examines specific criteria and uses judgment when determining whether an entity is a VIE and whether it is the primary beneficiary. The Company performs this review initially at the time it enters into a partnership or joint venture agreement and reassess upon reconsideration events. VIEs - Consolidated The Company is required to consolidate VIEs in which it has determined it is the primary beneficiary. The Company's education and other lending subsidiaries are engaged in the securitization of finance assets. These lending subsidiaries hold beneficial interests in eligible loans, subject to creditors with specific interests. The liabilities of the Company's lending subsidiaries are not the direct obligations of Nelnet, Inc. or any of its other subsidiaries. Each lending subsidiary is structured to be bankruptcy remote, meaning that it should not be consolidated in the event of bankruptcy of the parent company or any other subsidiary. The Company is generally the administrator and master servicer of the securitized assets held in its lending subsidiaries and owns the residual interest of the securitization trusts. For accounting purposes, the transfers of loans to the securitization trusts do not qualify as sales. Accordingly, all the financial activities and related assets and liabilities, including debt, of the securitizations are reflected in the Company's consolidated financial statements and are summarized as supplemental information on the balance sheet. VIEs - Not consolidated The Company is not required to consolidate VIEs in which it has determined it is not the primary beneficiary. VIEs not consolidated by the Company include its equity investment in ALLO, tax equity investments, and beneficial interests in loan securitizations. ALLO As of December 31, 2023, the Company owned 45% of the economic rights of ALLO, and has a disproportional 43% of the voting rights related to all operating decisions for ALLO's business. ALLO provides pure fiber optic service to homes and businesses for internet, television, and telephone services. See note 6 for the Company’s carrying value of its voting interest and non-voting preferred membership investments, which is the Company’s maximum exposure to loss. Prior to December 21, 2020, the Company consolidated the operating results of ALLO. In 2020, the Company entered into various agreements with SDC, a third-party global digital infrastructure investor, and ALLO, for various transactions contemplated by the parties in connection with a recapitalization for ALLO. The recapitalization transaction ultimately resulted in the deconsolidation of ALLO from the Company’s consolidated financial statements. As part of the ALLO recapitalization transaction, the Company and SDC entered into an agreement, in which the Company has a contingent payment obligation to pay SDC a contingent payment amount of up to $35.0 million in the event the Company disposes of its voting membership interests of ALLO that it holds and realizes from such disposition certain targeted return levels. The Company recognized the estimated fair value of the contingent payment to be $9.8 million and $7.6 million as of December 31, 2023 and 2022, respectively, which is included in “other liabilities” on the consolidated balance sheets. Tax Equity Investments The Company makes tax equity investments in entities that promote renewable energy sources (solar). The Company’s investments in these entities generate a return primarily through the realization of federal income tax credits, operating cash flows, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These investments are included in "investments and notes receivable" on the consolidated balance sheets. As of December 31, 2023, the Company has funded a total of $470.7 million in solar investments, which included $198.8 million funded by syndication partners. The carrying value of these investments are reduced by tax credits earned when the solar project is placed-in-service. The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are included in “other liabilities” on the consolidated balance sheets when the solar project is placed-in-service. The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment, unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. The tax credit recapture period ratably decreases over five years from when the project is placed-in-service. While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the energy-producing projects completely fail and do not meet certain government compliance requirements resulting in recapture of the related tax credits. The following table presents a summary of solar investment VIEs that the Company has not consolidated: As of December 31, 2023 2022 Investment carrying amount, excluding third-party investors $ (65,266) (36,863) Tax credits subject to recapture 153,699 88,692 Unfunded capital and other commitments 82,046 33,456 Company’s maximum exposure to loss $ 170,479 85,285 As of December 31, 2023, the Company is committed to fund an additional $154.2 million on new tax equity investments, of which $72.1 million is expected to be provided by syndication partners. Beneficial Interest in Loan Securitizations The Company has partial ownership in consumer, private education, and federally insured student loan third-party securitizations that are classified as “beneficial interest in loan securitizations” and included in “investments and notes receivable” on the Company’s consolidated balance sheets. These residual interests were acquired by AGM or have been received in consideration of AGM selling portfolios of loans to unrelated third parties who securitized such loans. See note 6 for the Company’s carrying value of its beneficial interest in loan securitization investments, which is the Company’s maximum exposure to loss. Noncontrolling Interests Amounts for noncontrolling interests reflect the share of membership interest (equity) and net income attributable to the holders of minority membership interests in the following entities: • Whitetail Rock Capital Management, LLC - WRCM is the Company’s SEC-registered investment advisor subsidiary. WRCM issued 10% minority membership interests on January 1, 2012. • NGWeb Solutions, LLC - The Company acquired a controlling interest of NGWeb Solutions, LLC on April 30, 2022. Minority membership interests of 20% were maintained by prior interest holders. See note 7 for a description of NGWeb Solutions, LLC, including the primary services offered. • GRNE-Nelnet, LLC and ENRG-Nelnet, LLC - The Company acquired a controlling interest in two subsidiaries of GRNE Solutions, LLC on July 1, 2022. Minority membership interests of 20% were maintained by prior interest holders. See note 7 for additional description of the acquisition, including the primary services offered. In addition, the Company has established multiple entities for the purpose of investing in renewable energy (solar) and federal opportunity zone programs in which it has noncontrolling members. Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities, reported amounts of revenues and expenses, and other disclosures. Actual results may differ from those estimates. Loans Receivable Loans consist of federally insured student, private education, consumer, and other loans. If the Company has the ability and intent to hold loans for the foreseeable future, such loans are held for investment and carried at amortized cost. Amortized cost includes the unamortized premium or discount and capitalized origination costs and fees, all of which are amortized to interest income. Loans which are held-for-investment also have an allowance for loan loss as needed. Any loans the Company has the ability and intent to sell are classified as held for sale and are carried at the lower of cost or fair value. Loans which are held for sale do not have the associated premium or discount and origination costs and fees amortized into interest income and there is also no related allowance for loan losses. There were no loans classified as held for sale as of December 31, 2023 and 2022. Federally insured loans were originated under the FFEL Program by certain eligible lenders as defined by the Higher Education Act of 1965, as amended (the “Higher Education Act”). These loans, including related accrued interest, are guaranteed at their maximum level permitted under the Higher Education Act by an authorized guaranty agency, which has a contract of reinsurance with the Department. The terms of the loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest. Generally, Stafford and PLUS loans have repayment periods between five twelve Substantially all FFELP loan principal and related accrued interest is guaranteed as provided by the Higher Education Act. These guarantees are subject to the performance of certain loan servicing due diligence procedures stipulated by applicable Department regulations. If these due diligence requirements are not met, affected student loans may not be covered by the guarantees in the event of borrower default. Such student loans are subject to “cure” procedures and reinstatement of the guarantee under certain circumstances. Loans also include private education, consumer, and other loans. Private education loans are loans to students or their families that are non-federal loans and loans not insured or guaranteed under the FFEL Program. These loans are used primarily to bridge the gap between the cost of higher education and the amount funded through financial aid, federal loans, or borrowers' personal resources. The terms of the private education loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest over a period of up to thirty years. The private education loans are not covered by a guarantee or collateral in the event of borrower default. Consumer loans are unsecured loans to an individual for personal, family, or household purposes. The terms of the consumer loans, which vary on an individual basis, generally provide for repayment in weekly or monthly installments of principal and interest over a period of up to six years. Other loans consist of home equity lines of credit. These loans are made to an individual primarily for debt consolidation purposes using equity in the borrower’s home as security in the form of primarily second liens. These loans typically have a revolving draw period of five years and a repayment period at the end of the draw period of five On January 1, 2023, the Company adopted new accounting guidance concerning loan modifications. The new guidance requires an entity to evaluate whether a loan modification represents a new loan or a continuation of an existing loan and enhances the disclosure requirements for certain modifications of receivables made to borrowers experiencing financial difficulty. Because federally insured loan modifications are driven by the Higher Education Act, the Company does not consider these events as part of its loan modification programs. Administrative forbearances (e.g. bankruptcy, military service, death and disability, and disaster forbearance) are required by law and therefore are also not considered as part of the Company's loan modification programs. The Company does offer payment delays in the form of deferments or forbearances on certain private education and consumer loan programs for short-term periods. The Company generally considers payment delays to be insignificant when the delay is 3 months or less. The amortized cost of the Company’s private education and consumer loans in which the borrower is experiencing financial difficulty and the financial effect of such loan modifications is not material. Allowance for Loan Losses The Company accounts for the evaluation and estimate of probable losses on loans under the current expected credit loss (CECL) methodology. The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for financial assets measured at amortized cost at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. The allowance for loan losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans as of the balance sheet date. Such allowance is based on the credit losses expected to arise over the life of the asset which includes consideration of prepayments. Loans are charged off when management determines the loan is uncollectible. Charge-offs are recognized as a reduction to the allowance for loan losses. Expected recoveries of amounts previously charged off, not to exceed the aggregate of the amount previously charged off, are included in the estimate of the allowance for loan losses at the balance sheet date. The Company determines its estimated credit losses for the following financial assets as follows: Loans receivable The Company aggregates loans with similar risk characteristics into pools to estimate its expected credit losses. The Company evaluates such pooling decisions each quarter and makes adjustments as risk characteristics change. Management has determined that the federally insured, private education, consumer, and other loan portfolios each meet the definition of a portfolio segment, which is defined as the level at which an entity develops and documents a systematic method for determining its allowance for loan losses. Accordingly, the portfolio segment disclosures are presented on this basis in note 3 for each of these portfolios. The Company does not disaggregate its portfolio segment loan portfolios into classes of financing receivables. The Company utilizes an undiscounted cash flow methodology in determining its lifetime expected credit losses on its federally insured and private education loan portfolios and a remaining life methodology for its consumer and other loan portfolios. For the undiscounted cash flow models, the expected credit losses are the product of multiplying the Company’s estimates of probability of default and loss given default and the exposure of default over the expected life of the loans. For the remaining life method, the expected credit losses are the product of multiplying the Company’s estimated net loss rate by the exposure at default over the expected life of the loans. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current economic conditions, and reasonable and supportable forecasts. The Company has determined that, for modeling current expected credit losses, the Company can reasonably estimate expected losses that incorporate current economic conditions and forecasted probability weighted economic scenarios up to a one-year period. Macroeconomic factors used in the models include such variables as unemployment rates, gross domestic product, and consumer price index. After the "reasonable and supportable" period, the Company reverts to its actual long-term historical loss experience in the historical observation period. The Company uses a straight line reversion method over two years. Historical credit loss experience provides the basis for the estimation of expected credit losses. A portion of the allowance is comprised of qualitative adjustments to historical loss experience. Qualitative adjustments consider the following factors, as applicable, for each of the Company’s loan portfolios: student loans in repayment versus those in nonpaying status; delinquency status; type of private education, consumer, or other loan program; trends in defaults in the portfolio based on Company and industry data; past experience; trends in federally insured student loan claims rejected for payment by guarantors; changes in federal student loan programs; and other relevant qualitative factors. The federal government guarantees 97% of the principal of and the interest on federally insured student loans disbursed on and after July 1, 2006 (and 98% for those loans disbursed on and after October 1, 1993 and prior to July 1, 2006), which limits the Company’s loss exposure on the outstanding balance of the Company’s federally insured portfolio. Federally insured student loans disbursed prior to October 1, 1993 are fully insured. Private education and consumer loans are unsecured, with neither a government nor a private insurance guarantee. Accordingly, the Company bears the full risk of loss on these loans if the borrower and co-borrower, if applicable, default. The Company places private education, consumer, and other loans on nonaccrual status when the collection of principal and interest is 90 days past due and charges off the loan when the collection of principal and interest is 120 days or 180 days past due, depending on type of loan program. Collections, if any, are reflected as a recovery through the allowance for loan losses. Purchased Loans Receivable with Credit Deterioration (PCD) The Company has purchased federally insured rehabilitation loans that have experienced more than insignificant credit deterioration since origination. Rehabilitation loans are loans that have previously defaulted, but for which the borrower has made a specified number of on-time payments. Although rehabilitation loans benefit from the same guarantees as other federally insured loans, rehabilitation loans have generally experienced redefault rates that are higher than default rates for federally insured loans that have not previously defaulted. These PCD loans are recorded at the amount paid. An allowance for loan losses is determined using the same methodology as for other loans held for investment. The sum of the loans’ purchase price and allowance for loan losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized or accreted into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through provision expense. Loan Accrued Interest Receivable Accrued interest receivable on loans is combined and presented with the loans receivable amortized cost balance on the Company’s consolidated balance sheets. For the Company’s federally insured loan portfolio, the Company records an allowance for credit losses for accrued interest receivables. For federally insured loans, accrued interest receivable is typically charged-off when the contractual payment of principal or interest has become greater than 270 days past due. Charge-offs of accrued interest receivable are recognized as a reduction to the allowance for loan losses. For the Company’s private education, consumer, and other loan portfolios, the Company does not measure an allowance for credit losses for accrued interest receivables. For private education, consumer, and other loans, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due. Charge-offs of accrued interest receivable are recognized by reversing interest income. Cash and Cash Equivalents The Company considers all investments with original maturities of three months or less to be cash equivalents. Cash and cash equivalents include amounts due to Nelnet Bank from the Federal Reserve Bank of $7.0 million and $5.2 million as of December 31, 2023 and 2022, respectively. Investments The Company accounts for purchases and sales of debt securities on a settlement-date basis. When an investment is sold, the cost basis is determined through specific identification of the security sold. The Company classifies its debt securities as either available-for-sale or held-to-maturity. Securities classified as available-for-sale are carried at fair value, with the changes in fair value, net of taxes, carried as a separate component of shareholders’ equity. The amortized cost of debt securities in this classification is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. For available-for-sale debt securities where fair value is less than amortized cost, credit-related impairment, if any, is recognized through an allowance for credit losses and adjusted each period for changes in credit risk. Securities in which the Company has the intent and ability to hold until maturity are classified as held-to-maturity. These securities are carried at amortized cost, with expected future credit losses, if any, recognized through an allowance for credit losses. The Company classifies its residual interest in consumer, private education, and federally insured student loan securitizations as held-to-maturity beneficial interest investments. The Company measures accretable yield initially as the excess of all cash flows expected to be collected attributable to the beneficial interest estimated at the acquisition/transaction date over the initial investment and recognizes interest income over the life of the beneficial interest using the effective interest method. The Company continues to update, over the life of the beneficial interest, the expectation of cash flows to be collected. Beneficial interest investments are evaluated for impairment by comparing the present value of the remaining cash flows as expected to be collected at the initial transaction date (or the last date previously revised) to the present value of the cash flows expected to be collected at the current financial reporting date, both discounted using the same effective rate equal to the current yield used to accrete the beneficial interest. If the present value of remaining cash flows is less than the present value of cash flows expected to be collected and the Company determines a credit loss has occurred, the Company records an allowance for credit losses for the difference. Subsequent favorable changes, if any, decreases the allowance for credit losses. Equity investments with readily determinable fair values are measured at fair value, with changes in the fair value recognized through net income. For equity investments without readily determinable fair values, the Company uses the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company uses qualitative factors to identify impairment on its measurement alternative investments. The Company accounts for equity investments over which it has significant influence but not a controlling financial interest using the equity method of accounting. Equity method investments are recorded at cost and subsequently increased or decreased by the amount of the Company’s proportionate share of the net earnings or losses and other comprehensive income of the investee. Equity method investments are evaluated for other-than-temporary impairment using certain impairment indicators such as a series of operating losses of an investee or other factors. These factors may indicate that a decrease in value of the investment has occurred that is other-than-temporary and shall be recognized. In March 2023, the Financial Accounting Standards Board issued new accounting guidance which expands the population of investments for which an investor may elect to apply the proportional amortization method (PAM). The guidance allows an investor in a tax equity investment to elect the PAM for qualifying investments on a tax credit program-by-program basis. The Company elected to early adopt the new accounting guidance as of January 1, 2023 for its tax equity investments in renewable energy sources (solar) tax credit program. There were no investments prior to January 1, 2023 that met the qualification to apply the PAM, thus no cumulative effect adjustment in retained earnings was required. Subsequent to adoption, the Company evaluates each tax equity investment in renewable energy sources (solar) to determine if it meets the qualifications to apply the PAM. For qualifying investments, the Company uses the flow-through method of accounting to account for the related tax credit. The flow-through method requires an investor to amortize the cost of its investment through income tax expense (or benefit) as an offset to the nonrefundable income tax credits and other income tax benefits, such as tax deductions from operating losses of the investment. The Company accounts for its non-qualifying PAM solar investments, voting equity investment in ALLO, and certain real estate investments under the Hypothetical Liquidation at Book Value (HLBV) method of accounting. The HLBV method of accounting is used by the Company for equity method investments when the liquidation rights and priorities as defined by an equity investment agreement differ from what is reflected by the underlying percentage ownership or voting interests. The Company applies the HLBV method using a balance sheet approach. A calculation is prepared at each balance sheet date to determine the amount that the Company would receive if an equity investment entity were to liquidate its net assets and distribute that cash to the investors based on the contractually defined liquidation priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is the amount the Company recognizes for its share of the earnings or losses from the equity investment for the period. For the majority of the Company’s solar investments, the HLBV method of accounting results in accelerated losses in the initial years of investment. The Company recognized losses on its solar investments of $46.7 million, $9.5 million, and $10.1 million during the years ended December 31, 2023, 2022, and 2021, respectively. These losses, which include losses attributable to third-party noncontrolling interest investors (syndication partners), are included in “other, net” in "other income (expense)" on the consolidated statements of income. Solar losses attributed to noncontrolling interest investors was $26.4 million, $10.9 million, and $7.4 million during the years ended December 31, 2023, 2022, and 2021, respectively, and is reflected in “net loss attributable to noncontrolling interests” in the consolidated statements of income. Excluding losses attributed to noncontrolling interest investors, the Company recognized losses of $20.3 million, gains of $1.4 million, and losses of $2.7 million on its solar investments during the years ended December 31, 2023, 2022, and 2021, respectively. Notes Receivable Notes receivable exchanged for cash are recorded at amortized cost. Discounts, if any, upon issuance are accreted to income over the contractual life of the issued note, and interest income is accounted for on an accrual basis. The Company records an allowance for expected credit losses, if any, to present the net amount expected to be collected on the receivable as of the balance sheet date. Restricted Cash and Restricted Investments Restricted cash primarily includes amounts for student loan securitizations and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the student loans held as trust assets and when principal and interest is paid on the trust's asset-backed debt securities. Restricted cash also includes collateral deposits with derivative counterparties and third-party clearinghouses. Nelnet Insurance Services is required to hold collateral in third-party trusts related to its reinsurance treaties on property and casualty policies. The cash and investments in such trusts are classified by the Company as restricted. Restricted investments include student loan asset-backed securities classified as available-for-sale. Restricted Cash - Due to Customers As a servicer of student loans, the Company collects student loan remittances and subsequently disburses these remittances to the appropriate lending entities. As part of the Company's Education Technology Services and Payments operating segment, the Company collects tuition payments and subsequently remits these payments to the appropriate schools. In addition, Nelnet Insurance Services retains cash it collects on behalf of its third parties to which it has retroceded a portion of its exposure. Cash collected for customers and the related liability are included in the consolidated balance sheets. A portion of cash collected for customers in the Company's Education Technology Services and Payments operating segment are held at Nelnet Bank, in which Nelnet Bank can use these cash deposits for general operating purposes and is no longer considered restricted. As of December 31, 2023 and 2022, $57.5 million and $55.0 million, respectively, of cash collected for customers is held at Nelnet Bank. Accounts Receivable Accounts receivable are presented at their net realizable values, which include allowances for doubtful accounts. Allowance estimates are based upon expected loss considering individual customer experience, as well as the age of receivables and likelihood of collection. Business Combinations The Company uses the acquisition method in accounting for acquired businesses. Under the acquisition method, the financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of acquisition, with the exception of contract assets or liabilities generated from contracts with customers, which are measured as if the Company had originated the acquired contract. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. All contingent consideration is measured at fair value on the acquisition date and included in the consideration transferred in the acquisition. Contingent consideration classified as a liability is remeasured to fair value at each reporting date until the contingency is resolved, and changes in fair value are recognized in earnings. Goodwill The Company reviews goodwill for impairment annually (as of November 30) and whenever triggering events or changes in circumstances indicate its carrying value may not be recoverable. Goodwill is tested for impairment using a fair value approach at the reporting unit level. A reporting unit is the operating segment, or a business one level below that operating segment if discrete financial information is prepared and regularly reviewed by segment management. However, components are aggregated as a si |
Loans and Accrued Interest Rece
Loans and Accrued Interest Receivable and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans and Accrued Interest Receivable and Allowance for Loan Losses | Loans and Accrued Interest Receivable and Allowance for Loan Losses Loans and accrued interest receivable consisted of the following: As of As of December 31, 2023 December 31, 2022 Non-Nelnet Bank: Federally insured loans: Stafford and other $ 2,936,174 3,389,178 Consolidation 8,750,033 10,177,295 Total 11,686,207 13,566,473 Private education loans 277,320 252,383 Consumer and other loans 85,935 350,915 Non-Nelnet Bank loans 12,049,462 14,169,771 Nelnet Bank: Federally insured loans (a) — 65,913 Private education loans 360,520 353,882 Consumer and other loans 72,352 — Nelnet Bank loans 432,872 419,795 Accrued interest receivable 764,385 816,864 Loan discount, net of unamortized loan premiums and deferred origination costs (33,872) (30,714) Allowance for loan losses: Non-Nelnet Bank: Federally insured loans (68,453) (83,593) Private education loans (15,750) (15,411) Consumer and other loans (11,742) (30,263) Non-Nelnet Bank allowance for loan losses (95,945) (129,267) Nelnet Bank: Federally insured loans (a) — (170) Private education loans (3,347) (2,390) Consumer and other loans (5,351) — Nelnet Bank allowance for loan losses (8,698) (2,560) $ 13,108,204 15,243,889 (a) During 2023, Nelnet Bank sold its federally insured loan portfolio to the Company’s AGM (non-Nelnet Bank) operating segment. The following table summarizes the allowance for loan losses as a percentage of the ending loan balance for each of the Company's loan portfolios. As of As of December 31, 2023 December 31, 2022 Non-Nelnet Bank: Federally insured loans (a) 0.59 % 0.62 % Private education loans 5.68 % 6.11 % Consumer and other loans 13.66 % 8.62 % Nelnet Bank: Federally insured loans (a) — 0.26 % Private education loans 0.93 % 0.68 % Consumer and other loans 7.40 % — (a) As of December 31, 2023 and 2022, the allowance for loan losses as a percent of the risk sharing component of federally insured loans not covered by the federal guaranty for non-Nelnet Bank was 21.8% and 22.4%, respectively, and for Nelnet Bank was 10.3% as of December 31, 2022. Loan Sales During 2023, 2022, and 2021, the Company sold $728.1 million, $167.0 million, and $101.1 million of consumer and other loans, respectively, and recognized net gains of $39.7 million, $2.9 million, and $18.7 million, respectively. Consumer loans sold by the Company were to non-affiliated third parties who securitized such loans. As partial consideration received for the majority of such loan portfolio sales, the Company received residual interest in the third parties’ loan securitizations that are included in "investments and notes receivable" on the Company's consolidated balance sheets. Activity in the Allowance for Loan Losses The following table presents the activity in the allowance for loan losses by portfolio segment. 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 Year ended December 31, 2023 Non-Nelnet Bank: Federally insured loans $ 83,593 4,303 (19,593) — 6 144 68,453 Private education loans 15,411 2,865 (3,306) 780 — — 15,750 Consumer and other loans 30,263 49,807 (12,467) 1,474 — (57,335) 11,742 Nelnet Bank: Federally insured loans 170 (14) (12) — — (144) — Private education loans 2,390 2,171 (1,214) — — — 3,347 Consumer and other loans — 6,245 (1,775) 881 — — 5,351 $ 131,827 65,377 (38,367) 3,135 6 (57,335) 104,643 Year ended December 31, 2022 Non-Nelnet Bank: Federally insured loans $ 103,381 3,731 (24,181) — 662 — 83,593 Private education loans 16,143 2,487 (3,879) 656 — 4 15,411 Consumer and other loans 6,481 38,383 (3,725) 592 — (11,468) 30,263 Nelnet Bank: Federally insured loans 268 (93) (5) — — — 170 Private education loans 840 1,860 (306) — — (4) 2,390 $ 127,113 46,368 (32,096) 1,248 662 (11,468) 131,827 Year ended December 31, 2021 Non-Nelnet Bank: Federally insured loans $ 128,590 (7,343) (21,139) — 3,273 — 103,381 Private education loans 19,529 (1,333) (2,476) 721 — (298) 16,143 Consumer and other loans 27,256 (4,544) (5,123) 824 — (11,932) 6,481 Nelnet Bank: Federally insured loans — 268 — — — — 268 Private education loans 323 526 (4) — — (5) 840 $ 175,698 (12,426) (28,742) 1,545 3,273 (12,235) 127,113 (a) During the years ended December 31, 2023, 2022, and 2021 the Company acquired $3.3 million (par value), $12.0 million (par value), and $224.1 million (par value), respectively, of federally insured rehabilitation loans that met the definition of PCD loans when they were purchased by the Company. The following table summarizes net charge-offs as a percentage of average loans for each of the Company's loan portfolios. Year ended December 31, 2023 2022 2021 Non-Nelnet Bank: Federally insured loans 0.15 % 0.15 % 0.11 % Private education loans 0.99 % 1.18 % 0.55 % Consumer and other loans 5.67 % 2.05 % 6.21 % Nelnet Bank: Federally insured loans 0.02 % 0.01 % 0.00 % Private education loans 0.34 % 0.10 % 0.00 % Consumer and other loans 2.64 % — — During the year ended December 31, 2021, the Company recorded a negative provision for loan losses due to (i) management's estimate of certain improved economic conditions as of December 31, 2021 in comparison to management's estimate of economic conditions used to determine the allowance for loan losses as of December 31, 2020; (ii) an increase in the constant prepayment rate on FFELP consolidation loans; and (iii) the amortization of the federally insured loan portfolio. These amounts were partially offset by the establishment of an initial allowance for loans originated and acquired during the period. During the year ended December 31, 2022, the Company recorded a provision for loan losses due to (i) management's estimate of declining economic conditions as of December 31, 2022 in comparison to management's estimate of economic conditions used to determine the allowance for loan losses as of December 31, 2021; and (ii) the establishment of an initial allowance for loans originated and acquired during the period. During the year ended December 31, 2023, the Company recorded a provision for loan losses primarily due to the establishment of an initial allowance for loans originated and acquired during the period. During both 2022 and 2023, provision for loan losses were partially offset by the amortization of the federally insured loan portfolio and an increase in expected prepayments as a result of continued initiatives offered and proposed by the Department for FFELP borrowers to consolidate their loans into Federal Direct Loan Program loans with the Department. Unfunded Loan Commitments As of December 31, 2023, Nelnet Bank has a liability of approximately $158,000 related to $12.3 million of unfunded private education and consumer loan commitments. The liability for unfunded loan commitments is included in "other liabilities" on the consolidated balance sheets. During both years ended December 31, 2023 and 2022, Nelnet Bank recognized provision for loan losses of approximately $73,000 related to unfunded loan commitments. Key Credit Quality Indicators Loan Status and Delinquencies Key credit quality indicators for the Company’s federally insured, private education, consumer, and other loan portfolios are loan status, including delinquencies. The impact of changes in loan status is incorporated into the allowance for loan losses calculation. Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs. The following table presents the Company’s loan status and delinquency amounts. As of December 31, 2023 2022 2021 Federally insured loans - Non-Nelnet Bank: Loans in-school/grace/deferment (a) $ 522,304 4.5 % $ 637,919 4.7 % $ 829,624 4.9 % Loans in forbearance (b) 979,588 8.4 1,103,181 8.1 1,118,667 6.5 Loans in repayment status: Loans current 8,416,624 82.6 % 10,173,859 86.0 % 12,847,685 84.9 % Loans delinquent 31-60 days (c) 377,108 3.7 415,305 3.5 895,656 5.9 Loans delinquent 61-90 days (c) 254,553 2.5 253,565 2.2 352,449 2.3 Loans delinquent 91-120 days (c) 187,145 1.9 180,029 1.5 251,075 1.7 Loans delinquent 121-270 days (c) 685,829 6.7 534,410 4.5 592,449 3.9 Loans delinquent 271 days or greater (c)(d) 263,056 2.6 268,205 2.3 203,442 1.3 Total loans in repayment 10,184,315 87.1 100.0 % 11,825,373 87.2 100.0 % 15,142,756 88.6 100.0 % Total federally insured loans 11,686,207 100.0 % 13,566,473 100.0 % 17,091,047 100.0 % Accrued interest receivable 757,713 808,150 784,716 Loan discount, net of unamortized premiums and deferred origination costs (28,963) (35,468) (28,309) Allowance for loan losses (68,453) (83,593) (103,381) Total federally insured loans and accrued interest receivable, net of allowance for loan losses $ 12,346,504 $ 14,255,562 $ 17,744,073 Private education loans - Non-Nelnet Bank: Loans in-school/grace/deferment (a) $ 9,475 3.4 % $ 12,756 5.1 % $ 9,661 3.2 % Loans in forbearance (b) 2,529 0.9 2,017 0.8 3,601 1.2 Loans in repayment status: Loans current 257,639 97.1 % 232,539 97.9 % 280,457 98.0 % Loans delinquent 31-60 days (c) 3,395 1.3 2,410 1.0 2,403 0.8 Loans delinquent 61-90 days (c) 1,855 0.7 767 0.3 976 0.3 Loans delinquent 91 days or greater (c) 2,427 0.9 1,894 0.8 2,344 0.9 Total loans in repayment 265,316 95.7 100.0 % 237,610 94.1 100.0 % 286,180 95.6 100.0 % Total private education loans 277,320 100.0 % 252,383 100.0 % 299,442 100.0 % Accrued interest receivable 2,653 2,146 1,960 Loan discount, net of unamortized premiums (8,037) (38) (1,123) Allowance for loan losses (15,750) (15,411) (16,143) Total private education loans and accrued interest receivable, net of allowance for loan losses $ 256,186 $ 239,080 $ 284,136 Consumer and other loans - Non-Nelnet Bank: Loans in deferment $ 146 0.2 % $ 109 0.0 % $ 43 0.1 % Loans in repayment status: Loans current 81,195 94.6 % 346,812 98.9 % 49,697 97.0 % Loans delinquent 31-60 days (c) 2,035 2.4 1,906 0.5 414 0.8 Loans delinquent 61-90 days (c) 1,189 1.4 764 0.2 322 0.6 Loans delinquent 91 days or greater (c) 1,370 1.6 1,324 0.4 825 1.6 Total loans in repayment 85,789 99.8 100.0 % 350,806 100.0 100.0 % 51,258 99.9 100.0 % Total consumer and other loans 85,935 100.0 % 350,915 100.0 % 51,301 100.0 % Accrued interest receivable 861 3,658 396 Loan discount, net of unamortized premiums (2,474) (588) 913 Allowance for loan losses (11,742) (30,263) (6,481) Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 72,580 $ 323,722 $ 46,129 As of December 31, 2023 2022 2021 Federally insured loans - Nelnet Bank (e): Loans in-school/grace/deferment (a) $ 241 0.4 % $ 330 0.4 % Loans in forbearance (b) 981 1.5 1,057 1.2 Loans in repayment status: Loans current 63,225 97.8 % 85,599 98.8 % Loans delinquent 30-59 days (c) 436 0.7 816 1.0 Loans delinquent 60-89 days (c) 466 0.7 — — Loans delinquent 90-119 days (c) 222 0.3 — — Loans delinquent 120-270 days (c) 183 0.3 209 0.2 Loans delinquent 271 days or greater (c)(d) 159 0.2 — — Total loans in repayment 64,691 98.1 100.0 % 86,624 98.4 100.0 % Total federally insured loans 65,913 100.0 % 88,011 100.0 % Accrued interest receivable 1,758 1,216 Loan premium 20 26 Allowance for loan losses (170) (268) Total federally insured loans and accrued interest receivable, net of allowance for loan losses $ 67,521 $ 88,985 Private education loans - Nelnet Bank (e): Loans in-school/grace/deferment (a) $ 25,957 7.2 % $ 11,580 3.3 % $ 150 0.1 % Loans in forbearance (b) 1,285 0.4 864 0.2 460 0.3 Loans in repayment status: Loans current 331,580 99.4 % 340,830 99.8 % 169,157 99.9 % Loans delinquent 30-59 days (c) 839 0.3 167 0.1 51 0.0 Loans delinquent 60-89 days (c) 253 0.1 32 0.0 — — Loans delinquent 90 days or greater (c) 606 0.2 409 0.1 72 0.1 Total loans in repayment 333,278 92.4 100.0 % 341,438 96.5 100.0 % 169,280 99.6 100.0 % Total private education loans 360,520 100.0 % 353,882 100.0 % 169,890 100.0 % Accrued interest receivable 2,023 1,152 264 Deferred origination costs, net of unaccreted discount 5,608 5,360 2,560 Allowance for loan losses (3,347) (2,390) (840) Total private education loans and accrued interest receivable, net of allowance for loan losses $ 364,804 $ 358,004 $ 171,874 Consumer and other loans - Nelnet Bank (e): Loans in deferment $ 103 0.1 % Loans in repayment status: Loans current 69,584 96.3 % Loans delinquent 30-59 days (c) 1,075 1.5 Loans delinquent 60-89 days (c) 941 1.3 Loans delinquent 90 days or greater (c) 649 0.9 Total loans in repayment 72,249 99.9 100.0 % Total consumer and other loans 72,352 100.0 % Accrued interest receivable 575 Loan discount (6) Allowance for loan losses (5,351) Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 67,570 (a) Loans for borrowers who still may be attending school or engaging in other permitted educational activities and are not yet required to make payments on the loans, e.g. , residency periods for medical students or a grace period for bar exam preparation for law students. (b) Loans for borrowers who have temporarily ceased making full payments due to hardship or other factors, according to a schedule approved by the servicer consistent with the established loan program servicing procedures and policies. (c) The period of delinquency is based on the number of days scheduled payments are contractually past due and relate to repayment loans, that is, receivables not charged off, and not in school, grace, deferment, or forbearance. (d) A portion of loans included in loans delinquent 271 days or greater includes loans in claim status, which are loans that have gone into default and have been submitted to the guaranty agency for reinsurance. (e) For the periods presented for Nelnet Bank, the delinquency bucket periods conform with the delinquency bucket periods reflected in Nelnet Bank's Call Reports filed with the Federal Deposit Insurance Corporation. FICO Scores An additional key credit quality indicator for Nelnet Bank private education and consumer loans is FICO scores at the time of origination. The following tables highlight the gross principal balance of Nelnet Bank's portfolios, by year of origination, stratified by FICO score at the time of origination. Nelnet Bank Private Education Loans Loan balance as of December 31, 2023 2023 2022 2021 2020 Total FICO at origination: Less than 705 $ 3,840 5,495 4,647 386 14,368 705 - 734 9,534 21,961 8,805 525 40,825 735 - 764 8,648 32,969 14,910 1,358 57,885 765 - 794 5,776 52,045 27,221 1,374 86,416 Greater than 794 15,057 77,996 58,695 5,226 156,974 No FICO score available or required (a) 4,052 — — — 4,052 $ 46,907 190,466 114,278 8,869 360,520 Loan balance as of December 31, 2022 2022 2021 2020 Total FICO at origination: Less than 705 $ 5,898 5,389 348 11,635 705 - 734 23,392 10,543 542 34,477 735 - 764 35,456 16,686 1,473 53,615 765 - 794 57,141 31,035 1,622 89,798 Greater than 794 87,959 70,135 6,263 164,357 $ 209,846 133,788 10,248 353,882 Nelnet Bank Consumer and Other Loans Loan balance as of December 31, 2023 2023 2022 2021 Total FICO at origination: Less than 720 $ 21,412 — — 21,412 720 - 769 33,571 51 — 33,622 Greater than 769 16,484 109 — 16,593 No FICO score available or required (a) 386 284 55 725 $ 71,853 444 55 72,352 (a) Loans with no FICO score available or required refers to loans issued to borrowers for which the Company cannot obtain a FICO score or are not required to under a special purpose credit program. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk. Nonaccrual Status The Company does not place federally insured loans on nonaccrual status due to the government guaranty. The amortized cost of private education, consumer, and other loans on nonaccrual status, as well as the allowance for loan losses related to such loans, as of December 31, 2023, 2022, and 2021 was not material. Amortized Cost Basis by Origination Year The following table presents the amortized cost of the Company's private education, consumer, and other loans by loan status and delinquency amount as of December 31, 2023 based on year of origination. Effective July 1, 2010, no new loan originations can be made under the FFEL Program and all new federal loan originations must be made under the Federal Direct Loan Program. As such, all the Company’s federally insured loans were originated prior to July 1, 2010. 2023 2022 2021 2020 2019 Prior years Total Private education loans - Non-Nelnet Bank: Loans in-school/grace/deferment $ — 832 4,029 779 1,279 2,556 9,475 Loans in forbearance — 83 26 603 324 1,493 2,529 Loans in repayment status: Loans current 211 4,450 4,928 45,341 38,213 164,496 257,639 Loans delinquent 31-60 days — 6 102 424 232 2,631 3,395 Loans delinquent 61-90 days — 7 57 218 113 1,460 1,855 Loans delinquent 91 days or greater — — 23 70 — 2,334 2,427 Total loans in repayment 211 4,463 5,110 46,053 38,558 170,921 265,316 Total private education loans $ 211 5,378 9,165 47,435 40,161 174,970 277,320 Accrued interest receivable 2,653 Loan discount, net of unamortized premiums (8,037) Allowance for loan losses (15,750) Total private education loans and accrued interest receivable, net of allowance for loan losses $ 256,186 Gross charge-offs - year ended December 31, 2023 $ — 39 10 297 615 2,345 3,306 Consumer and other loans - Non-Nelnet Bank: Loans in deferment $ 146 — — — — — 146 Loans in repayment status: Loans current 74,677 5,170 590 330 386 42 81,195 Loans delinquent 31-60 days 764 973 291 — 5 2 2,035 Loans delinquent 61-90 days 329 759 73 25 3 — 1,189 Loans delinquent 91 days or greater 424 841 79 6 18 2 1,370 Total loans in repayment 76,194 7,743 1,033 361 412 46 85,789 Total consumer and other loans $ 76,340 7,743 1,033 361 412 46 85,935 Accrued interest receivable 861 Loan discount, net of unamortized premiums (2,474) Allowance for loan losses (11,742) Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 72,580 Gross charge-offs - year ended December 31, 2023 $ 3,995 6,850 830 36 292 464 12,467 Private education loans - Nelnet Bank (a): Loans in-school/grace/deferment $ 14,410 10,315 708 524 — — 25,957 Loans in forbearance 230 786 269 — — — 1,285 Loans in repayment status: Loans current 31,940 178,700 112,619 8,321 — — 331,580 Loans delinquent 30-59 days 147 248 420 24 — — 839 Loans delinquent 60-89 days 49 131 73 — — — 253 Loans delinquent 90 days or greater 131 286 189 — — — 606 Total loans in repayment 32,267 179,365 113,301 8,345 — — 333,278 Total private education loans $ 46,907 190,466 114,278 8,869 — — 360,520 Accrued interest receivable 2,023 Deferred origination costs, net of unaccreted discount 5,608 Allowance for loan losses (3,347) Total private education loans and accrued interest receivable, net of allowance for loan losses $ 364,804 Gross charge-offs - year ended December 31, 2023 $ 23 869 285 37 — — 1,214 2023 2022 2021 2020 2019 Prior years Total Consumer and other loans - Nelnet Bank (a): Loans in deferment $ 103 — — — — — 103 Loans in repayment status: Loans current 69,085 444 55 — — — 69,584 Loans delinquent 30-59 days 1,075 — — — — — 1,075 Loans delinquent 60-89 days 941 — — — — — 941 Loans delinquent 90 days or greater 649 — — — — — 649 Total loans in repayment 71,750 444 55 — — — 72,249 Total consumer and other loans $ 71,853 444 55 — — — 72,352 Accrued interest receivable 575 Loan discount (6) Allowance for loan losses (5,351) Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 67,570 Gross charge-offs - year ended December 31, 2023 $ 1,775 — — — — — 1,775 (a) For the periods presented for Nelnet Bank, the delinquency bucket periods conform with the delinquency bucket periods reflected in Nelnet Bank's Call Reports filed with the Federal Deposit Insurance Corporation. |
Bonds and Notes Payable
Bonds and Notes Payable | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Bonds and Notes Payable | Bonds and Notes Payable The following tables summarize the Company’s outstanding debt obligations by type of instrument: As of December 31, 2023 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 $ 9,552,667 5.45% - 7.47% 8/26/30 - 9/25/69 Bonds and notes based on auction 87,360 0.00% - 6.45% 3/22/32 - 11/26/46 Total FFELP variable-rate bonds and notes 9,640,027 Fixed-rate bonds and notes issued in FFELP loan asset-backed 471,427 1.42% - 3.45% 10/25/67 - 8/27/68 FFELP loan warehouse facilities 1,398,485 5.41% - 5.70% 4/2/25 / 5/22/25 Consumer loan warehouse facility 23,691 5.70% 11/14/25 Variable-rate bonds and notes issued in private education loan asset-backed securitizations 80,393 6.90% / 7.57% 6/25/49 / 11/25/53 Fixed-rate bonds and notes issued in private education loan asset-backed securitizations 80,130 5.35% / 7.15% 12/28/43 / 11/25/53 Unsecured line of credit — — 9/22/26 Participation agreements 10,063 5.58% - 6.08% 3/12/24 / 5/4/24 Repurchase agreement 208,164 6.35% - 6.81% 1/22/24 - 12/20/24 Other - due to related party 5,778 5.00% - 6.05% 3/1/24 - 11/15/30 11,918,158 Discount on bonds and notes payable and debt issuance costs (89,765) Total $ 11,828,393 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 securitizations 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 Warehouse Facilities The Company funds a portion of its loan acquisitions using warehouse facilities. Loan warehousing allows the Company to buy and manage loans prior to transferring them into more permanent financing arrangements. The following table summarizes the Company's warehouse facilities as of December 31, 2023. Type of loans Maximum financing amount Amount outstanding Amount available Expiration of liquidity provisions Final maturity date Advance rate Advanced as equity support FFELP $ 1,250,000 1,016,023 233,977 5/22/2024 5/22/2025 note (a) $ 70,739 FFELP 432,000 382,462 49,538 4/2/2024 4/2/2025 92 % 31,955 $ 1,682,000 1,398,485 283,515 $ 102,694 Consumer 200,000 23,691 176,309 11/14/2024 11/14/2025 70 % 10,352 (a) This facility has a static advance rate until the expiration date of the liquidity provisions. The maximum advance rates for this facility are 90% to 96%, and the minimum advance rates are 84% to 90%. In the event the liquidity provisions are not extended, the valuation agent has the right to perform a one-time mark to market on the underlying loans funded in this facility, subject to a floor. The loans would then be funded at this new advance rate until the final maturity date of the facility. Asset-backed securitizations The Company has historically relied upon asset-backed securitizations as its most significant source of funding for loans. The net cash flow the Company receives from the securitized loans generally represents the excess amounts, if any, generated by the underlying loans over the amounts required to be paid to the bondholders, after deducting servicing fees and any other expenses relating to the securitizations. The Company’s rights to cash flow from securitized loans are subordinate to bondholder interests, and the securitized loans may fail to generate any cash flow beyond what is due to bondholders. The bonds and notes payable are primarily secured by the loans receivable, related accrued interest, and by the amounts on deposit in the accounts established under the respective financing agreements. On November 16, 2023, the Company completed a $189.6 million (par value) private education loan asset-backed securitization. The notes issued have a final maturity date of November 25, 2053. Upon completion of this securitization, the Company terminated its private education loan warehouse facility. Unsecured Line of Credit The Company has a $495.0 million unsecured line of credit that has a maturity date of September 22, 2026. As of December 31, 2023, no amount was outstanding on the line of credit and $495.0 million was available for future use. . The line of credit agreement contains certain financial covenants that, if not met, lead to an event of default under the agreement. The covenants, which exclude Nelnet Bank, include, among others, maintaining: • A minimum consolidated net worth • A limitation on recourse indebtedness to adjusted EBITDA (over the last four rolling quarters) • A limitation on recourse and non-recourse indebtedness • A limitation on the amount of private education, consumer, and other (non-FFELP) loans in the Company’s portfolio • A limitation on permitted investments, including business acquisitions that are not in one of the Company's existing lines of business As of December 31, 2023, the Company was in compliance with all of these requirements. Many of these covenants are duplicated in the Company's other lending facilities, including its warehouse facilities. The Company's operating line of credit does not have any covenants related to unsecured debt ratings. However, changes in the Company's ratings have modest implications on the pricing level at which the Company obtains funds. A default on the Company's other debt facilities would result in an event of default on the Company's unsecured line of credit that would result in the outstanding balance on the line of credit, if any, becoming immediately due and payable. Participation Agreements The Company has an agreement with Union Bank, a related party, as trustee for various grantor trusts, under which Union Bank has agreed to purchase from the Company participation interests in FFELP loan asset-backed securities (bond investments). As of December 31, 2023 and 2022, $63,000 (par value) and $395.4 million (par value), respectively, of FFELP loan asset-backed securities were subject to outstanding participation interests held by Union Bank, as trustee, under this agreement. The agreement automatically renews annually and is terminable by either party upon five On December 21, 2023, the Company entered into a $10.0 million participation agreement with a non-affiliated third-party, the proceeds of which are collateralized by consumer loans. The third-party participant does not have the right to pledge, transfer, or otherwise dispose of their participation interest in all or any portion of the loans subject to this agreement. As such, the consumer loans subject to this agreement are included on the Company's consolidated balance sheet and the participation interests outstanding have been accounted for by the Company as a secured borrowing. This participation agreement will amortize as the consumer loans subject to the participation pay down. Repurchase Agreements On May 3, 2021, the Company entered into a repurchase agreement with a non-affiliated third party, the proceeds of which are collateralized by certain private education and FFELP loan asset-backed securities (bond investments). The agreement has various maturity dates through December 20, 2024 or earlier if either party provides 180 days’ prior written notice, and the Company is subject to margin deficit payment requirements if the fair value of the securities subject to the agreement is less than the original purchase price of such securities on any scheduled reset date. Included in “bonds and notes payable” in the consolidated balance sheets as of December 31, 2023 and 2022 was $208.2 million and $299.8 million, respectively, subject to this agreement. See note 6 and below under “Debt Repurchases” for additional information about the private education and FFELP loan asset-backed securities investments, respectively, serving as collateral for this repurchase agreement. On June 23, 2021, the Company entered into a separate repurchase agreement with a non-affiliated third party, which was collateralized by certain private education and FFELP loan asset-backed securities (bond investments). The outstanding balance of this facility as of December 31, 2022 was $267.5 million. The outstanding balance of this facility was paid in full during the third quarter of 2023. Nelnet Bank Nelnet Bank has unsecured Federal Funds lines of credit with correspondent banks totaling $40.0 million at a stated interest rate at the time of borrowing. Nelnet Bank has also established accounts at the Federal Reserve Bank (FRB) and the Federal Home Loan Bank (FHLB), which are secured and accept pledges of eligible securities. In addition, FFELP and private education loans are accepted as collateral for FRB borrowings. As of December 31, 2023 and 2022, Nelnet Bank had no amounts drawn on their Federal Funds, FRB, or FHLB lines of credit. As of December 31, 2023, the Bank has $145.0 million of collateral pledged with the FRB that it may borrow against. Debt Covenants Certain bond resolutions and related credit agreements contain, among other requirements, covenants relating to restrictions on additional indebtedness, limits as to direct and indirect administrative expenses, and maintaining certain financial ratios. The Company is in compliance with all covenants of the bond indentures and related credit agreements as of December 31, 2023. Maturity Schedule Bonds and notes outstanding as of December 31, 2023 are due in varying amounts as shown below. 2024 $ 218,505 2025 1,422,176 2026 — 2027 275 2028 3,754 2029 and thereafter 10,273,448 $ 11,918,158 Generally, the Company's secured financing instruments can be redeemed on any interest payment date at par plus accrued interest. Subject to certain provisions, all bonds and notes are subject to redemption prior to maturity at the option of certain lending subsidiaries. Accrued Interest Liability During 2021, the Company reversed a historical accrued interest liability of $23.8 million on certain bonds, which liability the Company determined was 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. The reduction of this liability is reflected in (a reduction of) "interest expense on bonds and notes payable and bank deposits" in the consolidated statements of income. Debt Repurchases The following table summarizes the Company's repurchases of its own debt. Gains/losses recorded by the Company from the repurchase of debt are included in “other, net” in "other income (expense)" on the Company’s consolidated statements of income. Year ended December 31, 2023 2022 2021 Purchase price $ (5,112) (67,081) (407,487) Par value 5,941 69,133 406,875 Remaining unamortized cost of issuance (14) (821) (6,163) Gain (loss), net $ 815 1,231 (6,775) The Company has repurchased certain of its own asset-backed securities (bonds and notes payable) in the secondary market. For accounting purposes, these notes are eliminated in consolidation and are not included in the Company's consolidated financial statements. However, these securities remain legally outstanding at the trust level and the Company could sell these notes to third parties or redeem the notes at par as cash is generated by the trust estate. Upon a sale of these notes to third parties, the Company would obtain cash proceeds equal to the market value of the notes on the date of such sale. As of December 31, 2023, the Company holds $312.0 million (par value) of its own FFELP asset-backed securities. As of December 31, 2023, $118.9 million (par value) of the Company's repurchased FFELP loan asset-backed securities were serving as collateral on amounts outstanding under the Company's repurchase agreement. In the second quarter of 2023, the Company redeemed $188.6 million of FFELP loan asset-backed debt securities (bonds and notes payable) prior to their maturity, of which the Company owned $140.5 million of the bonds that were redeemed. The remaining unamortized debt discount associated with these bonds at the time of redemption was written-off, resulting in a $25.9 million non-cash expense recognized in the second quarter of 2023. This expense is included in "interest expense on bonds and notes payable and bank deposits" on the consolidated statements of income. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Non-Nelnet Bank Derivatives The Company uses settled-to-market derivative financial instruments to manage interest rate risk. The Company is exposed to interest rate risk in the form of basis risk and repricing risk because the interest rate characteristics of the Company's assets do not match the interest rate characteristics of the funding for those assets. The Company periodically reviews the mismatch related to the interest rate characteristics of its assets and liabilities together with the Company's outlook as to current and future market conditions. Based on those factors, the Company uses settled-to-market derivative instruments as part of its overall risk management strategy. Settled-to-market derivative instruments used as part of the Company's interest rate risk management strategy are discussed below. Basis Swaps Interest earned on the majority of the Company's FFELP student loan assets was indexed to the one-month LIBOR rate. Meanwhile, the Company funded a portion of its FFELP loan assets with three-month LIBOR indexed floating rate securities. Subsequent to the discontinuation of LIBOR on June 30, 2023, the Company now earns interest on the majority of the Company’s FFELP student loan assets based on 30-day average SOFR while a portion of its FFELP loan assets are funded with 90-day average SOFR and 3-month CME term SOFR. The differing interest rate characteristics of the Company's loan assets versus the liabilities funding these assets results in basis risk, which impacts the Company's excess spread earned on its loans. The Company also faces repricing risk due to the timing of the interest rate resets on its liabilities, which may occur as infrequently as once a quarter, in contrast to the timing of the interest rate resets on its assets, which generally occur daily. As of December 31, 2023, the Company’s AGM operating segment had $10.9 billion, $0.4 billion, and $0.4 billion of FFELP loans indexed to the 30-day average SOFR rate, three-month commercial paper rate, and the three-month treasury bill rate, respectively, the indices for which reset daily, and $2.8 billion of debt indexed to 90-day average SOFR and 3-month CME term SOFR, the indices for which reset quarterly, and $6.8 billion of debt indexed to 30-day average SOFR and 1-month CME term SOFR, the indices for which reset monthly. The Company has used derivative instruments to hedge its basis risk and repricing risk. The Company has entered into basis swaps in which the Company received three-month LIBOR set discretely in advance and paid one-month LIBOR plus or minus a spread as defined in the agreements (the "1:3 Basis Swaps"). Subsequent to the discontinuation of LIBOR on June 30, 2023, the Company now receives and pays the term adjusted SOFR rate on these derivatives (plus the tenor spread adjustment to LIBOR). The following table summarizes the Company’s 1:3 Basis Swaps outstanding: As of December 31, 2023 2022 Maturity Notional amount Notional amount 2023 $ — 750,000 2024 1,750,000 1,750,000 2026 1,150,000 1,150,000 2027 250,000 250,000 $ 3,150,000 3,900,000 The weighted average rate paid by the Company on the 1:3 Basis Swaps as of December 31, 2023 was the term adjusted SOFR (plus the tenor spread adjustment relating to LIBOR) plus 10.1 basis points and as of December 31, 2022 was one-month LIBOR plus 9.7 basis points, respectively. Interest Rate Swaps – Floor Income Hedges FFELP loans originated prior to April 1, 2006 generally earn interest at the higher of the borrower rate, which is fixed over a period of time, or a floating rate based on the Special Allowance Payments (SAP) formula set by the Department. The SAP rate is based on an applicable index plus a fixed spread that depends on loan type, origination date, and repayment status. The Company generally finances its student loan portfolio with variable rate debt. In low and/or certain declining interest rate environments, when the fixed borrower rate is higher than the SAP rate, these student loans earn at a fixed rate while the interest on the variable rate debt typically continues to reflect the low and/or declining interest rates. In these interest rate environments, the Company may earn additional spread income that it refers to as floor income. Depending on the type of loan and when it was originated, the borrower rate is either fixed to term or is reset to an annual rate each July 1. As a result, for loans where the borrower rate is fixed to term, the Company may earn floor income for an extended period of time, which the Company refers to as fixed rate floor income, and for those loans where the borrower rate is reset annually on July 1, the Company may earn floor income to the next reset date, which the Company refers to as variable rate floor income. All FFELP loans first originated on or after April 1, 2006 effectively earn at the SAP rate, since lenders are required to rebate fixed rate floor income and variable rate floor income for these loans to the Department. Absent the use of derivative instruments, a rise in interest rates may reduce the amount of floor income received and this may have an impact on earnings due to interest margin compression caused by increasing financing costs, until such time as the federally insured loans earn interest at a variable rate in accordance with their SAP formulas. In higher interest rate environments, where the interest rate rises above the borrower rate and fixed rate loans effectively become variable rate loans, the impact of the rate fluctuations is reduced. As of December 31, 2023, 2022, and 2021, the Company had $0.3 billion, $0.9 billion, and $7.2 billion, respectively, of FFELP student loan assets that were earning fixed rate floor income. The decrease in loans earning fixed rate floor income was due to an increase in interest rates. The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income. As of December 31, 2023 As of December 31, 2022 (a) Maturity Notional amount Weighted average fixed rate paid by the Company (b) Notional amount Weighted average fixed rate paid by the Company (b) 2024 $ — — % $ 2,000,000 0.35 % 2026 200,000 3.92 500,000 1.02 2028 50,000 3.56 — — 2029 (c) 50,000 3.17 — — 2030 (d) 100,000 3.63 — — 2031 — — 100,000 1.53 2032 — — 200,000 2.92 $ 400,000 3.71 % $ 2,800,000 0.70 % (a) On March 15, 2023, to minimize the Company's exposure to market volatility and increase liquidity, the Company terminated its entire derivative portfolio hedging loans earning fixed rate floor income ($2.8 billion in notional amount of derivatives) prior to their maturity. Through March 15, 2023, the Company had received cash or had a receivable from the clearinghouse related to variation margin equal to the fair value of the $2.8 billion notional amount of fixed rate floor derivatives as of March 15, 2023 of $183.2 million, which included $19.1 million related to current period settlements. In 2022, the Company terminated $2.4 billion in notional amount of derivatives prior to their maturity for net proceeds of $91.8 million. (b) For all interest rate derivatives, the Company receives payments based on SOFR, the majority of which reset quarterly. (c) This $50 million notional amount derivative has a forward effective start date in January 2026. (d) A $50 million notional amount derivative maturing in 2030 has a forward effective start date in November 2025. Nelnet Bank Derivatives Interest Rate Swaps Non-centrally cleared derivative instruments are used by Nelnet Bank to hedge the exposure to variability in cash flows of variable rate intercompany deposits primarily to minimize the exposure to volatility in cash flows from future changes in interest rates. Nelnet Bank has structured these derivatives so that each is economically effective; however, because these derivatives are hedging intercompany deposits, the derivative instruments are not eligible for hedge accounting in the consolidated financial statements. As a result, the change in market value of these derivative instruments is reported in current period earnings and presented in "derivative market value adjustments and derivative settlements, net" included in the consolidated statements of income. The following table summarizes the outstanding derivative instruments used by Nelnet Bank to hedge exposure to variability in cash flows related to variable rate intercompany deposits. As of December 31, 2023 Maturity Notional amount Weighted average fixed rate paid by the Company (a) 2028 $ 40,000 3.33 % 2030 (b) 50,000 3.06 2032 (c) 25,000 4.03 2033 (d) 25,000 3.90 $ 140,000 3.46 % (a) For all interest rate derivatives, the Company receives payments based on SOFR that reset monthly or quarterly. (b) These $25 million notional amount derivatives have forward effective start dates in April 2026 and May 2026, respectively. (c) This $25 million notional amount derivative has a forward effective start date in February 2027. (d) This $25 million notional amount derivative has a forward effective start date in November 2025. Unlike the Company's Non-Nelnet Bank derivatives, Nelnet Bank's derivatives are not cleared post-execution at a regulated clearinghouse. As such, the Company records these derivative instruments in the consolidated balance sheets on a gross basis as either an asset or liability measured at fair value. As of December 31, 2023, the gross fair value of Nelnet Bank's interest rate swap derivatives in an asset position was $0.5 million and in a liability position was $2.0 million. These amounts are included in “other assets” and “other liabilities,” respectively, on the consolidated balance sheet. Consolidated Financial Statement Impact Related to Derivatives - Statements of Income The following table summarizes the components of "derivative market value adjustments and derivative settlements, net" included in the consolidated statements of income. Year ended December 31, 2023 2022 2021 Settlements: 1:3 basis swaps $ 1,544 (206) (1,638) Interest rate swaps - floor income hedges 23,044 33,149 (19,729) Interest rate swaps - Nelnet Bank 484 — — Total settlements - income (expense) 25,072 32,943 (21,367) Change in fair value: 1:3 basis swaps (567) 2,262 5,027 Interest rate swaps - floor income hedges (39,683) 229,429 87,786 Interest rate swaps - Nelnet Bank (1,523) — — Total change in fair value - (expense) income (41,773) 231,691 92,813 Derivative market value adjustments and derivative settlements, net - (expense) income $ (16,701) 264,634 71,446 Derivative Instruments - Market Risk |
Investments and Notes Receivabl
Investments and Notes Receivable | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstract] | |
Investments and Notes Receivable | Investments and Notes Receivable A summary of the Company's “restricted investments” and “investments and notes receivable” follows: As of December 31, 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 Restricted investments (at fair value): FFELP loan asset-backed securities $ 16,993 1,069 (93) 17,969 — — — — Investments (at fair value): Available-for-sale asset-backed securities Non-Nelnet Bank: FFELP loan $ 271,479 4,883 (5,393) 270,969 463,861 3,498 (11,105) 456,254 Private education loan (a) 281,791 — (28,874) 252,917 335,903 — (29,438) 306,465 Other debt securities 41,693 2,020 (1,275) 42,438 158,589 151 (3,790) 154,950 Total Non-Nelnet Bank 594,963 6,903 (35,542) 566,324 958,353 3,649 (44,333) 917,669 Nelnet Bank: FFELP loan (b) 321,638 4,508 (2,296) 323,850 349,855 955 (8,853) 341,957 Other debt securities 49,284 117 (1,641) 47,760 133,422 18 (4,029) 129,411 Total Nelnet Bank 370,922 4,625 (3,937) 371,610 483,277 973 (12,882) 471,368 Total available-for-sale asset-backed securities $ 965,885 11,528 (39,479) 937,934 1,441,630 4,622 (57,215) 1,389,037 Equity securities 50,907 39,082 Total investments at fair value 988,841 1,428,119 Other Investments and Notes Receivable (not measured at fair value): Held to maturity investments Non-Nelnet Bank: Debt securities (c) 4,700 18,554 Nelnet Bank: FFELP loan asset-backed securities (b) 158,038 — Other debt securities — 220 Total Nelnet Bank 158,038 220 Total held to maturity investments 162,738 18,774 Venture capital and funds: Measurement alternative (d) 194,084 160,052 Equity method 91,464 89,332 Total venture capital and funds 285,548 249,384 Real estate: Equity method 103,811 80,364 Investment in ALLO: Voting interest/equity method (e) 10,693 67,538 Preferred membership interest (f) 155,047 145,926 Total investment in ALLO 165,740 213,464 Beneficial interest in loan securitizations (g): Consumer loans 134,113 39,249 Private education loans 68,372 75,261 Federally insured student loans 22,594 24,228 Total beneficial interest in loan securitizations 225,079 138,738 Solar (h) (121,779) (55,448) Notes receivable 53,747 31,106 Tax liens, affordable housing, and other 7,243 7,416 Total investments (not measured at fair value) 882,127 683,798 Total investments and notes receivable $ 1,870,968 $ 2,111,917 (a) In December 2020, Wells Fargo announced the sale of its approximately $10 billion portfolio of private education loans. The Company entered into a joint venture with other investors to acquire the loans. Under the terms of the joint venture agreements, the Company serves as the sponsor and administrator for the loan securitizations completed by the joint venture to permanently finance the loans acquired. As sponsor of the loan securitizations, the Company is required to provide a certain level of risk retention, and has purchased bonds issued in such securitizations to satisfy this requirement. The bonds purchased to satisfy the risk retention requirement are included in the above table and as of December 31, 2023, the par value and fair value of these securities was $282.2 million and $252.9 million, respectively. The Company must retain these investment securities until the latest of (i) two years from the closing date of the securitization, (ii) the date the aggregate outstanding principal balance of the loans in the securitization is 33% or less of the initial loan balance, and (iii) the date the aggregate outstanding principal balance of the bonds is 33% or less of the aggregate initial outstanding principal balance of the bonds, at which time the Company can sell its investment securities (bonds) to a third party. A portion of the private education loan asset-backed securities were subject to a repurchase agreement with third parties, as discussed in note 4 under “Repurchase Agreements.” As of December 31, 2023, the par value and fair value of securities subject to the participation was $155.9 million and $134.1 million, respectively. (b) On March 31, 2023, securities at Nelnet Bank with a fair value of $149.2 million were transferred from available-for-sale to held to maturity. The securities were reclassified at fair value at the time of the transfer, and such transfer represented a non-cash transaction. Accumulated other comprehensive income as of March 31, 2023 included pre-tax unrealized losses of $3.7 million related to the transfer. These unrealized losses are being amortized, consistent with the amortization of any discounts on such securities, over the remaining lives of the respective securities as an adjustment of yield. (c) On March 31, 2023, certain Non-Nelnet Bank debt securities were transferred from held to maturity to available-for-sale. (d) The Company has an investment in Agile Sports Technologies, Inc. (doing business as “Hudl”) that is included in “venture capital and funds” in the above table. During the first quarter of 2023, the Company acquired additional ownership interests in Hudl for $31.5 million from existing Hudl investors. This transaction was not considered an observable market transaction (not orderly) because it was not subject to customary marketing activities. Accordingly, the Company did not adjust its carrying value of its Hudl investment to the transaction value. As of December 31, 2023, the carrying amount of the Company's investment in Hudl is $165.5 million. David S. Graff, who has served on the Company's Board of Directors since May 2014, is CEO, co-founder, and a director of Hudl. The Company's equity ownership interests in Hudl consist of preferred stock with certain liquidation preferences that are considered substantive. Accordingly, for accounting purposes, the Company's equity ownership interests are not considered in-substance common stock and the Company is accounting for its equity investment in Hudl using the measurement alternative method. (e) During the first quarter of 2023, the Company contributed $8.4 million of additional equity in ALLO. As a result of this equity contribution, the Company's voting membership interests percentage in ALLO did not materially change. The Company recognized losses under the HLBV method of accounting on its ALLO voting membership interests investment of $65.3 million, $68.0 million, and $42.1 million during the years ended December 31, 2023, 2022, and 2021, respectively. Losses from the Company's investment in ALLO are included in "other, net" in "other income (expense)" on the consolidated statements of income. (f) As of December 31, 2023, the outstanding preferred membership interests of ALLO held by the Company was $155.0 million. Accrued and unpaid preferred return capitalizes to preferred membership interests annually on each December 31. The preferred membership interests of ALLO held by the Company currently earn a preferred annual return of 6.25% that will increase to 10.00% in April 2024. The Company recognized income on its ALLO preferred membership interests of $9.1 million, $8.6 million, and $8.4 million during the years ended December 31, 2023, 2022, and 2021, respectively. This income is included in "other, net" in "other income (expense)" on the consolidated statements of income. (g) The Company has partial ownership in certain consumer, private education, and federally insured student loan securitizations. As of the latest remittance reports filed by the various trusts prior to or as of December 31, 2023, the Company's ownership correlates to approximately $910 million, $515 million, and $335 million of consumer, private education, and federally insured student loans, respectively, included in these securitizations. (h) The solar investment balance as of December 31, 2023 represents the sum of total tax credits earned on solar projects placed-in-service through December 31, 2023 and the calculated HLBV net losses being larger than the total investment contributions made by the Company on such projects. The following table presents, by remaining contractual maturity, the amortized cost and fair value of debt securities as of December 31, 2023: As of December 31, 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 Restricted Investments: FFELP loan $ — — — 16,993 16,993 Fair value — — — 17,969 17,969 Non-Nelnet Bank: FFELP loan — 15,025 27,366 229,088 271,479 Private education loan — — — 281,791 281,791 Other debt securities — 99 — 41,594 41,693 Total Non-Nelnet Bank — 15,124 27,366 552,473 594,963 Fair value — 14,821 26,502 525,001 566,324 Nelnet Bank: FFELP loan 64,623 12,671 58,903 185,441 321,638 Other debt securities — 20,499 11,862 16,923 49,284 Total Nelnet Bank 64,623 33,170 70,765 202,364 370,922 Fair value 64,596 32,693 70,255 204,066 371,610 Total available-for-sale asset-backed securities at amortized cost $ 64,623 48,294 98,131 771,830 982,878 Total available-for-sale asset-backed securities at fair value $ 64,596 47,514 96,757 747,036 955,903 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 — 3,452 1,524 153,062 158,038 Other debt securities — — — — — Total Nelnet Bank — 3,452 1,524 153,062 158,038 Fair value — 3,506 1,539 153,877 158,922 Total held-to-maturity investments at amortized cost $ 4,700 3,452 1,524 153,062 162,738 Total held-to-maturity investments at fair value $ 4,700 3,506 1,539 153,877 163,622 The following table presents securities classified as available-for-sale that have gross unrealized losses at December 31, 2023 and the fair value of such securities as of December 31, 2023. These securities are segregated between investments that had been in a continuous unrealized loss position for less than twelve months and twelve months or more, based on the point in time that the fair value declined below the amortized cost basis. All securities in the table below have been evaluated to determine if a credit loss exists. As part of that assessment, the Company concluded it currently has the intent and ability to retain these investments, and none of the unrealized losses were due to credit losses. As of December 31, 2023 Unrealized loss position less than 12 months Unrealized loss position 12 months or more Total Unrealized loss Fair value Unrealized loss Fair value Unrealized loss Fair value Available-for-sale asset-backed securities Restricted Investments: FFELP loan $ (93) 2,392 — — (93) 2,392 Non-Nelnet Bank: FFELP loan (966) 28,912 (4,427) 146,613 (5,393) 175,525 Private education loan — — (28,874) 252,916 (28,874) 252,916 Other debt securities — — (1,275) 20,144 (1,275) 20,144 Total Non-Nelnet Bank (966) 28,912 (34,576) 419,673 (35,542) 448,585 Nelnet Bank: FFELP loan (1,168) 77,677 (1,128) 53,397 (2,296) 131,074 Other debt securities (90) 19,821 (1,551) 14,822 (1,641) 34,643 Total Nelnet Bank (1,258) 97,498 (2,679) 68,219 (3,937) 165,717 Total available-for-sale asset-backed securities $ (2,317) 128,802 (37,255) 487,892 (39,572) 616,694 The following table summarizes the gross proceeds received and gross realized gains and losses related to sales of available-for-sale asset-backed securities. Year ended December 31, 2023 2022 2021 Gross proceeds from sales $ 963,117 511,124 160,976 Gross realized gains $ 4,517 6,702 3,127 Gross realized losses (8,021) (800) (432) Net (losses) gains $ (3,504) 5,902 2,695 |
Business Combination
Business Combination | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combination | Business Combinations NGWeb Solutions, LLC On April 30, 2022, the Company acquired 30% of the ownership interests of NGWeb Solutions, LLC ("NextGen") for total cash consideration of $9.2 million. NextGen provides software solutions primarily to higher education institutions to enable administrators to efficiently manage online forms, scholarships, employment, online timesheets, and other specialized processes that require signed authorizations and interactions with student information. Prior to the acquisition, the Company owned 50% of the ownership interests of NextGen and accounted for this investment under the equity method. As a result of the acquisition, the previously held 50% ownership interests was remeasured to its fair value as of the April 30, 2022 date of acquisition of the additional 30% of the ownership interests, resulting in a $15.2 million revaluation gain, which is included in "other, net" in "other income (expense)" on the consolidated statements of income. For segment reporting, this gain is included in Corporate and Other Activities. Subsequent to the acquisition, the Company has consolidated the operating results of NextGen and such results are included in the Education Technology Services and Payments reportable operating segment. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. Cash and cash equivalents $ 1,885 Accounts receivable 1,315 Property and equipment 800 Other assets 201 Intangible assets 15,250 Excess cost over fair value of net assets acquired (goodwill) 15,937 Other liabilities (4,550) Net assets acquired 30,838 Minority interest (6,291) Remeasurement of previously held investment (15,342) Total consideration paid by the Company $ 9,205 The $15.3 million of acquired intangible assets on the date of acquisition had a weighted-average useful life of approximately 14 years. The intangible assets that made up this amount include customer relationships of $12.8 million (15-year useful life), computer software of $1.7 million (5-year useful life), and a trade name of $0.8 million (10-year useful life). The $15.9 million of goodwill was assigned to the NextGen reporting unit that is included in the Education Technology Services and Payments operating segment and is not expected to be deductible for tax purposes. The amount allocated to goodwill was primarily attributed to the synergies and economies of scale expected from combining the operations of the Company and NextGen. The pro forma impacts of the NextGen acquisition on the Company's historical results prior to the acquisition were not material. GRNE Solar On July 1, 2022, the Company acquired 80% of the ownership interests of two subsidiaries of GRNE Solutions, LLC named GRNE-Nelnet, LLC (GRNE) and ENRG-Nelnet, LLC (ENRG) (collectively referred to as "GRNE Solar") for total cash consideration of $28.9 million. GRNE designs and installs residential and commercial solar systems in the Midwest. ENRG owns certain assets that generate and sell solar energy. The acquisition diversifies the Company's position in the renewable energy space to include solar construction. For segment reporting, the operating results of GRNE Solar are included in Corporate and Other Activities. As part of the acquisition, the Company agreed to pay $5.0 million in future capital contributions on behalf of the minority interest members. Any amount of the $5.0 million not paid as capital contributions to GRNE Solar by June 30, 2025 was to be paid by the Company directly to the minority interest members. On the acquisition date, the Company recorded a liability and increased goodwill by $5.0 million as a result of the future capital contribution commitment. The future capital contribution commitment had been fully satisfied as of December 31, 2023. The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. Cash and cash equivalents $ 1,742 Restricted cash 2,200 Accounts receivable 3,983 Property and equipment 8,720 Other assets 2,296 Intangible assets 11,683 Excess cost over fair value of net assets acquired (goodwill) 13,873 Bonds and notes payable (750) Other liabilities (7,624) Net assets acquired 36,123 Minority interest (7,225) Total consideration paid by the Company $ 28,898 The $11.7 million of acquired intangible assets on the date of acquisition had a weighted-average useful life of approximately 8 years. The intangible assets that made up this amount include a trade name of $8.1 million (10-year useful life), customer relationships of $1.1 million (3-year useful life), and other separately identified intangibles of $2.5 million (5-year useful life). The $18.9 million of goodwill was assigned to the GRNE operating segment that is included in Corporate and Other Activities for segment reporting and is expected to be deductible for tax purposes. The amount allocated to goodwill was attributed to synergies from combining the operations of the Company and GRNE Solar and intangible assets that do not qualify for separate recognition. The pro forma impacts of the GRNE Solar acquisition on the Company's historical results prior to the acquisition were not material. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible Assets Intangible assets consisted of the following: Weighted average remaining useful life as of December 31, 2023 (months) As of December 31, 2023 2022 Amortizable intangible assets, net: Customer relationships (net of accumulated amortization of $46,573 and $55,116, respectively) 104 $ 43,031 51,738 Trade names (net of accumulated amortization of $8,268 and $617, respectively) 100 642 8,293 Computer software (net of accumulated amortization of $574 and $6,400, respectively) 40 1,146 1,520 Other (net of accumulated amortization of $490) — — 1,950 Total - amortizable intangible assets, net 102 $ 44,819 63,501 The Company recorded amortization expense on its intangible assets of $17.0 million, $15.0 million, and $23.0 million during the years ended December 31, 2023, 2022, and 2021, respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of December 31, 2023, the Company estimates it will record amortization expense as follows: 2024 $ 8,491 2025 6,099 2026 6,012 2027 5,714 2028 5,354 2029 and thereafter 13,149 $ 44,819 |
Goodwill
Goodwill | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill [Abstract] | |
Goodwill | Goodwill The change in the carrying amount of goodwill by reportable operating segment was as follows: Nelnet Financial Services Loan Servicing and Systems Education Technology Services and Payments Asset Generation and Management (a) Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Total Balance as of December 31, 2021 $ 23,639 76,570 41,883 — — — 142,092 Goodwill acquired — 15,937 — — — 18,873 34,810 Balance as of December 31, 2022 23,639 92,507 41,883 — — 18,873 176,902 Impairment (see note 11) — — — — — (18,873) (18,873) Balance as of December 31, 2023 $ 23,639 92,507 41,883 — — — 158,029 (a) As a result of the Reconciliation Act of 2010, the Company no longer originates new FFELP loans, and net interest income from the Company's existing FFELP loan portfolio will decline over time as the Company's portfolio pays down. As a result, as this revenue stream winds down, goodwill impairment will be triggered for the Asset Generation and Management reporting unit due to the passage of time and depletion of projected cash flows stemming from its FFELP student loan portfolio. Management believes the elimination of FFELP loan originations will not have an adverse impact on the fair value of the Company's other reporting units. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment consisted of the following: As of December 31, Useful life 2023 2022 Computer equipment and software 1-5 years $ 260,224 237,487 Building and building improvements 5-48 years 50,747 50,475 Office furniture and equipment 1-10 years 17,197 22,386 Solar facilities 5-35 years 12,850 3,547 Transportation equipment 5-10 years 7,101 6,207 Leasehold improvements 1-15 years 6,149 10,410 Land — 3,279 3,181 Construction in progress — 23,245 22,987 380,792 356,680 Accumulated depreciation (253,784) (234,154) Total property and equipment, net $ 127,008 122,526 The Company recorded depreciation expense on its property and equipment of $62.1 million, $59.1 million, and $50.7 million during the years ended December 31, 2023, 2022, and 2021, respectively. |
Impairment Expense
Impairment Expense | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment Expense | Impairment Expense The following table presents the impairment charges by asset and reportable operating segment recognized by the Company during 2023, 2022, and 2021. The Company’s impairment charges are included in “impairment expense” in the consolidated statements of income. Nelnet Financial Services Loan Servicing and Systems Education Technology Services and Payments Asset Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Total Year ended December 31, 2023 Goodwill (a) $ — — — — — 18,873 18,873 Leases, buildings, and associated improvements (b) 296 — — — — 4,678 4,974 Property and equipment - internally developed software — 4,310 — — — — 4,310 Investments - venture capital and funds (c) — — — — — 2,060 2,060 Intangible assets (a) — — — — — 1,708 1,708 $ 296 4,310 — — — 27,319 31,925 Year ended December 31, 2022 Leases, buildings, and associated improvements (b) $ 1,774 — — — — 998 2,772 Property and equipment - internally developed software 3,737 — — 214 — — 3,951 Investments - venture capital and funds (c) — — — — — 6,561 6,561 Intangible asset — 2,239 — — — — 2,239 $ 5,511 2,239 — 214 — 7,559 15,523 Year ended December 31, 2021 Leases, buildings, and associated improvements (b) $ 13,243 — — — — 916 14,159 Investments - venture capital and funds (c) — — — — — 4,637 4,637 Beneficial interest in loan securitizations — — (2,436) — — — (2,436) $ 13,243 — (2,436) — — 5,553 16,360 (a) As part of the November 2023 annual goodwill impairment assessment completed in conjunction with the Company’s annual November budget process, the Company determined it was more likely than not that the estimated fair value of the GRNE operating segment was less than its carrying amount. As part of the qualitative assessment, the Company used the discounted cash flow method under the income approach to estimate the fair value of the reporting unit, which concluded that the estimated fair value was less than its carrying amount. As a result, the Company recorded a non-cash impairment charge in the fourth quarter of 2023. No remaining goodwill is attributable to the GRNE operating segment. The Company also recorded a non-cash impairment charge for GRNE operating segment’s remaining intangible assets. (b) The Company continues to evaluate the use of office space as a large number of employees continue to work from home. As a result, the Company recorded non-cash impairment charges related to operating lease assets and associated leasehold improvements and to building and building improvements. The Corporate and Other Activities amount for the year ended December 31, 2023 includes a $2.4 million lease termination fee paid to Union Bank, a related party. (c) The Company recorded non-cash impairment charges related to several of its venture capital investments accounted for under the measurement alternative method. |
Bank Deposits
Bank Deposits | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Bank Deposits | Bank Deposits The following table summarizes Nelnet Bank’s interest-bearing deposits, excluding intercompany deposits. As of December 31, 2023 and December 31, 2022, Nelnet Bank had intercompany deposits from Nelnet, Inc. and its subsidiaries totaling $104.0 million and $98.3 million, respectively, including a $40.0 million pledged deposit from Nelnet, Inc. as required under a Capital and Liquidity Maintenance Agreement with the FDIC. All intercompany deposits held at Nelnet Bank are eliminated for consolidated financial reporting purposes. As of December 31, 2023 2022 Brokered CDs, net of brokered deposit fees $ 203,522 254,817 Commercial 2,057 — Retail and other savings (529, STFIT, and HSA) 517,960 410,556 Retail and other CDs (commercial and institutional) 20,060 25,949 Total interest-bearing deposits $ 743,599 691,322 Brokered deposit fees associated with the brokered CDs are amortized into interest expense using the effective interest rate method. The Bank recognized brokered deposit fee expense of $0.2 million, $0.3 million, and $0.1 million during the years ended December 31, 2023, 2022, and 2021, respectively. Fees paid to third-party brokers related to these CDs were $0.6 million and $0.4 million during the years ended December 31, 2022 and 2021, respectively. There were no fees paid to third-party brokers for the year ended December 31, 2023. The following table presents certificates of deposit remaining maturities as of December 31, 2023: One year or less $ — After one year to two years 2,740 After two years to three years 146,424 After three years to four years 74,071 After four years to five years 347 After five years — Total $ 223,582 The Educational 529 College Savings, STFIT, and Health Savings plan deposits are large interest-bearing omnibus accounts structured to allow FDIC insurance to flow through to underlying individual depositors. Except for the commercial deposit, the pledged deposit from Nelnet, Inc., and an earmarked deposit required for intercompany transactions, there were no deposits exceeding the FDIC insurance limits as of December 31, 2023 and 2022. Accrued interest on deposits was $0.7 million as of each December 31, 2023 and 2022, respectively, which is included in “accrued interest payable” on the consolidated balance sheets. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Shareholders’ Equity Classes of Common Stock The Company's common stock is divided into two classes. The Class B common stock has ten votes per share and the Class A common stock has one vote per share on all matters to be voted on by the Company's shareholders. Each Class B share is convertible at any time at the holder's option into one Class A share. With the exception of the voting rights and the conversion feature, the Class A and Class B shares are identical in terms of other rights, including dividend and liquidation rights. Stock Repurchases The Company has a stock repurchase program that expires on May 8, 2025 in which it can repurchase up to five million shares of its Class A common stock on the open market, through private transactions, or otherwise. As of December 31, 2023, 4.2 million shares may still be purchased under the Company's stock repurchase program. Shares repurchased by the Company during 2023, 2022, and 2021 are shown in the table below. In accordance with the corporate laws of the state in which the Company is incorporated, all shares repurchased by the Company are legally retired upon acquisition by the Company. Total shares repurchased Purchase price Average price of shares repurchased (per share) (a) Year ended December 31, 2023 336,943 $ 28,028 $ 83.18 Year ended December 31, 2022 1,162,533 97,685 84.03 Year ended December 31, 2021 713,274 58,111 81.47 (a) The average price of shares repurchased for the year ended December 31, 2023 includes excise taxes. |
Earnings per Common Share
Earnings per Common Share | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings per Common Share Presented below is a summary of the components used to calculate basic and diluted earnings per share. The Company applies the two-class method in computing both basic and diluted earnings per share, which requires the calculation of separate earnings per share amounts for common stock and unvested share-based awards. Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock. Year ended December 31, 2023 2022 2021 Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Numerator: Net income attributable to Nelnet, Inc. $ 89,606 1,926 91,532 399,564 7,783 407,347 386,865 6,421 393,286 Denominator: Weighted-average common shares outstanding - basic and diluted 36,629,437 787,184 37,416,621 36,884,548 718,485 37,603,033 37,943,032 629,769 38,572,801 Earnings per share - basic and diluted $ 2.45 2.45 2.45 10.83 10.83 10.83 10.20 10.20 10.20 Unvested restricted stock awards are the Company's only potential common shares and, accordingly, there were no awards that were antidilutive and not included in average shares outstanding for the diluted earnings per share calculation. As of December 31, 2023, a cumulative amount of 163,136 shares have been deferred by non-employee directors under the Directors Stock Compensation Plan and will become issuable upon the termination of service by the respective non-employee director on the board of directors. These shares are included in the Company's weighted average shares outstanding calculation. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company is subject to income taxes in the United States and certain foreign countries. Significant judgment is required in evaluating the Company's tax positions and determining the provision for income taxes. During the ordinary course of business, there are many transactions and calculations for which the ultimate tax determination is uncertain. As required by the ASC Topic 740, Income Taxes , the Company recognizes in the consolidated financial statements only those tax positions determined to be more likely than not of being sustained upon examination, based on the technical merits of the positions. It further requires that a change in judgment related to the expected ultimate resolution of uncertain tax positions be recognized in earnings in the period of such change. As of December 31, 2023, the total amount of gross unrecognized tax benefits (excluding the federal benefit received from state positions) was $17.1 million, which is included in “other liabilities” on the consolidated balance sheet. Of this total, $13.5 million (net of the federal benefit on state issues) represents the amount of unrecognized tax benefits that, if recognized, would favorably affect the effective tax rate in future periods. The Company currently anticipates uncertain tax positions will decrease by $2.7 million prior to December 31, 2024 as a result of a lapse of applicable statutes of limitations, settlements, correspondence with examining authorities, and recognition or measurement considerations with federal and state jurisdictions; however, actual developments in this area could differ from those expected. Of the anticipated $2.7 million decrease, $2.1 million, if recognized, would favorably affect the Company's effective tax rate. A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows: Year ended December 31, 2023 2022 Gross balance - beginning of year $ 16,835 19,678 Additions based on tax positions of prior years 819 2,269 Additions based on tax positions related to the current year 2,242 2,521 Settlements with taxing authorities (247) (2,818) Reductions for tax positions of prior years (460) (2,580) Reductions due to lapse of applicable statutes of limitations (2,105) (2,235) Gross balance - end of year $ 17,084 16,835 All the reductions shown in the table above that are due to prior year tax positions and the lapse of statutes of limitations impacted the effective tax rate. The Company's policy is to recognize interest and penalties accrued on uncertain tax positions as part of interest expense and other expense, respectively. As of December 31, 2023 and 2022, $4.8 million and $4.0 million in accrued interest and penalties, respectively, were included in “other liabilities” on the consolidated balance sheets. The Company recognized interest expense of $0.8 million, and interest benefits of $1.1 million and $0.3 million related to uncertain tax positions for the years ended December 31, 2023, 2022, and 2021, respectively. The impact to the consolidated statements of income related to penalties for uncertain tax positions was not significant for the years 2023, 2022, and 2021. The impact of timing differences and tax attributes are considered when calculating interest and penalty accruals associated with the unrecognized tax benefits. The Company and its subsidiaries file a consolidated federal income tax return in the U.S. and the Company or one of its subsidiaries files income tax returns in various state, local, and foreign jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years prior to 2020. The Company is no longer subject to U.S. state and local income tax examinations by tax authorities prior to 2018. The provision for income taxes consists of the following components: Year ended December 31, 2023 2022 2021 Current: Federal $ 65,952 67,649 55,239 State 5,732 10,984 4,792 Foreign 32 (49) 169 Total current provision 71,716 78,584 60,200 Deferred: Federal (41,705) 32,422 46,145 State (10,270) 2,198 9,647 Foreign 12 20 (170) Total deferred provision (51,963) 34,640 55,622 Provision for income tax expense $ 19,753 113,224 115,822 The differences between the income tax provision computed at the statutory federal corporate tax rate and the financial statement provision for income taxes are shown below: Year ended December 31, 2023 2022 2021 Tax expense at federal rate 21.0 % 21.0 % 21.0 % Increase (decrease) resulting from: State tax, net of federal income tax benefit (0.6) 2.8 3.0 Tax credits (4.1) (0.6) (0.8) Change in valuation allowance 0.4 (0.5) — Other 1.1 (0.9) (0.4) Effective tax rate 17.8 % 21.8 % 22.8 % The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following: As of December 31, 2023 2022 Deferred tax assets: Deferred revenue $ 17,399 27,410 Student loans 16,489 20,569 State tax credit carryforwards 12,190 9,431 Accrued expenses 9,623 10,824 Stock compensation 6,584 5,345 Net operating losses 4,563 2,613 Lease liability 2,929 3,432 Intangible assets 987 — Debt and equity investments — 1,430 Total gross deferred tax assets 70,764 81,054 Less state tax valuation allowance (562) (161) Net deferred tax assets 70,202 80,893 Deferred tax liabilities: Partnership basis 73,876 99,184 Basis in certain derivative contracts 26,139 65,224 Depreciation 9,526 11,306 Debt and equity investments 4,711 — Lease right of use asset 2,770 3,073 Loan origination services 2,635 3,264 Securitization 267 363 Intangible assets — 1,474 Other 3,784 2,679 Total gross deferred tax liabilities 123,708 186,567 Net deferred tax asset (liability) $ (53,506) (105,674) The Company has performed an evaluation of the recoverability of deferred tax assets. In assessing the realizability of the Company's deferred tax assets, management considers whether it is more likely than not that some portion or all of the deferred tax assets will be realized. The ultimate realization of deferred tax assets is dependent upon the generation of future taxable income during the period in which those temporary differences become deductible or eligible for utilization of a tax credit carryforward. Management considers the scheduled reversals of deferred tax liabilities, projected taxable income, carry back opportunities, and tax planning strategies in making the assessment of the amount of the valuation allowance. With the exception of a portion of the Company's state net operating losses, it is management's opinion that it is more likely than not that the deferred tax assets will be realized and should not be reduced by a valuation allowance. The amount of deferred tax assets considered realizable could be reduced in the near term if estimates of future taxable income during the carry forward period are reduced. As of December 31, 2023 and 2022, net deferred tax liabilities of $75.3 million and $140.1 million, respectively, and net deferred tax assets of $21.8 million and $34.4 million, respectively, were included in “other liabilities” and “other assets,” respectively, on the consolidated balance sheets. As of December 31, 2023 and 2022, the Company had a current income tax receivable of $67.4 million and payable of $5.2 million, respectively, that is included in “other assets" and “other liabilities,” respectively, on the consolidated balance sheets. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Segment Reporting The Company's reportable operating segments include: • Loan Servicing and Systems • Education Technology Services and Payments • Asset Generation and Management, part of the NFS division as described below • Nelnet Bank, part of the NFS division as described below The Company earns fee-based revenue through its Loan Servicing and Systems and Education Technology Services and Payments operating segments; and earns interest income on its loan portfolio in its Asset Generation and Management and Nelnet Bank operating segments. The Company’s operating segments are defined by the products and services they offer and the types of customers they serve, and they reflect the manner in which financial information is currently evaluated by management. See note 1 for a description of each operating segment, including the primary products and services offered. The management reporting process measures the performance of the Company’s operating segments based on the management structure of the Company, as well as the methodology used by management to evaluate performance and allocate resources. Executive management (the "chief operating decision maker") evaluates the performance of the Company’s operating segments based on their financial results prepared in conformity with U.S. GAAP. In 2023, the Company created the Nelnet Financial Services division intended to focus on the Company’s key objective to maximize the amount and timing of cash flows generated from its FFELP portfolio and reposition itself for the post-FFELP environment by expanding its non-FFELP loan portfolios and its other financial product and service offerings. The creation of the Nelnet Financial Services division resulted in financial results grouped and reported differently to the chief operating decision maker. The reporting change did not impact the performance measures or the methodology used by management to evaluate performance and allocate resources. All prior periods have been restated to conform to the current-period presentation. These reclassifications had no effect on the Company’s consolidated financial statements. The Nelnet Financial Services division includes the reportable segments of AGM and Nelnet Bank and the following other non-reportable operating segments that were previously presented in Corporate and Other Activities. • The operating results of WRCM, the Company's SEC-registered investment advisor subsidiary • The operating results of Nelnet Insurance Services, which primarily includes multiple reinsurance treaties on property and causality policies • The operating results of the Company’s investment activities in real estate • The operating results of the Company’s investment debt securities (primarily student loan and other asset-backed securities) and interest expense incurred on debt used to finance such investments The accounting policies of the Company’s operating segments are the same as those described in the summary of significant accounting policies. Intersegment revenues are charged by a segment that provides a product or service to another segment. Intersegment revenues and expenses are included within each segment consistent with the income statement presentation provided to management. Income taxes are allocated based on 24% of income before taxes for each individual operating segment, except for Nelnet Bank, which reflects Nelnet Bank’s actual tax expense/benefit as allocated and reflected in its Call Report filed with the Federal Deposit Insurance Corporation. The difference between the consolidated income tax expense and the sum of taxes calculated for each operating segment is included in income taxes in Corporate and Other Activities. Corporate and Other Activities Other business activities and operating segments that are not reportable and not part of the NFS division are combined and included in Corporate and Other Activities. Corporate and Other Activities include the following items: • Shared service activities related to internal audit, human resources, accounting, legal, enterprise risk management, information technology, occupancy, and marketing. These costs are allocated to each operating segment based on estimated use of such activities and services • Corporate costs and overhead functions not allocated to operating segments, including executive management, investments in innovation, and other holding company organizational costs • The operating results of Nelnet Renewable Energy, which include solar tax equity investments made by the Company, administrative and management services provided by the Company on tax equity investments made by third parties, and solar construction and development • The operating results of certain of the Company’s investment activities, including its investment in ALLO and early-stage and emerging growth companies (venture capital investments) • Interest income earned on cash balances held at the corporate level and interest expense incurred on unsecured corporate related debt transactions • Other product and service offerings that are not considered reportable operating segments Segment Results The following tables present the results of each of the Company's reportable operating segments reconciled to the consolidated financial statements. Year ended December 31, 2023 Nelnet Financial Services Loan Servicing and Systems Education Technology Services and Payments Asset Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Eliminations Total Total interest income $ 4,845 26,962 977,158 57,859 74,857 12,141 (44,021) 1,109,800 Interest expense — — 823,084 34,704 29,747 1,578 (44,021) 845,091 Net interest income 4,845 26,962 154,074 23,155 45,110 10,563 — 264,709 Less provision (negative provision) for loan losses — — 56,975 8,475 — — — 65,450 Net interest income after provision for loan losses 4,845 26,962 97,099 14,680 45,110 10,563 — 199,259 Other income (expense): Loan servicing and systems revenue 517,954 — — — — — — 517,954 Intersegment revenue 28,911 253 — — — — (29,164) — Education technology services and payments revenue — 463,311 — — — — — 463,311 Solar construction revenue — — — — — 31,669 — 31,669 Other, net 2,587 — 11,269 1,095 26,648 (90,385) — (48,787) Gain on sale of loans, net — — 39,673 — — — — 39,673 Impairment expense (296) (4,310) — — — (27,319) — (31,925) Derivative settlements, net — — 24,588 484 — — — 25,072 Derivative market value adjustments, net — — (40,250) (1,523) — — — (41,773) Total other income (expense), net 549,156 459,254 35,280 56 26,648 (86,035) (29,164) 955,194 Cost of services: Cost to provide education technology services and payments — 171,183 — — — — — 171,183 Cost to provide solar construction services — — — — — 48,576 — 48,576 Total cost of services — 171,183 — — — 48,576 — 219,759 Operating expenses: Salaries and benefits 317,885 155,296 4,191 9,074 1,130 105,531 (1,571) 591,537 Depreciation and amortization 19,257 11,319 — 574 — 47,969 — 79,118 Other expenses 60,517 34,133 14,728 4,994 19,172 56,307 — 189,851 Intersegment expenses, net 78,628 23,184 32,824 462 584 (108,089) (27,593) — Total operating expenses 476,287 223,932 51,743 15,104 20,886 101,718 (29,164) 860,506 Income (loss) before income taxes 77,714 91,101 80,636 (368) 50,872 (225,766) — 74,188 Income tax (expense) benefit (18,651) (21,891) (19,353) 153 (12,073) 52,061 — (19,753) Net income (loss) 59,063 69,210 61,283 (215) 38,799 (173,705) — 54,435 Net loss (income) attributable to noncontrolling interests — 109 — — (568) 37,556 — 37,097 Net income (loss) attributable to Nelnet, Inc. $ 59,063 69,319 61,283 (215) 38,231 (136,149) — 91,532 Total assets as of December 31, 2023 $ 294,376 490,296 13,488,561 991,252 1,115,292 897,886 (541,018) 16,736,645 Year ended December 31, 2022 Nelnet Financial Services Loan Servicing and Systems Education Technology Services and Payments Asset Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Eliminations Total Total interest income $ 2,722 9,377 676,557 25,973 40,377 2,199 (14,399) 742,806 Interest expense 44 — 411,900 11,055 21,974 (436) (14,399) 430,137 Net interest income 2,678 9,377 264,657 14,918 18,403 2,635 — 312,669 Less provision (negative provision) for loan losses — — 44,601 1,840 — — — 46,441 Net interest income after provision for loan losses 2,678 9,377 220,056 13,078 18,403 2,635 — 266,228 Other income (expense): Loan servicing and systems revenue 535,459 — — — — — — 535,459 Intersegment revenue 33,170 81 — — — — (33,251) — Education technology services and payments revenue — 408,543 — — — — — 408,543 Solar construction revenue — — — — — 24,543 — 24,543 Other, net 2,543 — 21,170 2,625 35,259 (36,112) — 25,486 Gain on sale of loans, net — — 2,903 — — — — 2,903 Impairment expense (5,511) (2,239) — (214) — (7,559) — (15,523) Derivative settlements, net — — 32,943 — — — — 32,943 Derivative market value adjustments, net — — 231,691 — — — — 231,691 Total other income (expense), net 565,661 406,385 288,707 2,411 35,259 (19,128) (33,251) 1,246,045 Cost of services: Cost to provide education technology services and payments — 148,403 — — — — — 148,403 Cost to provide solar construction services — — — — — 19,971 — 19,971 Total cost of services — 148,403 — — — 19,971 — 168,374 Operating expenses: Salaries and benefits 344,809 133,428 2,524 6,948 880 100,990 — 589,579 Depreciation and amortization 24,255 10,184 — 15 — 39,623 — 74,077 Other expenses 59,674 30,104 16,835 3,925 2,453 57,788 — 170,778 Intersegment expenses, net 75,145 19,538 34,679 244 (1,173) (95,182) (33,251) — Total operating expenses 503,883 193,254 54,038 11,132 2,160 103,219 (33,251) 834,434 Income (loss) before income taxes 64,456 74,105 454,725 4,357 51,502 (139,683) — 509,465 Income tax (expense) benefit (15,470) (17,785) (109,134) (1,013) (12,237) 42,415 — (113,224) Net income (loss) 48,986 56,320 345,591 3,344 39,265 (97,268) — 396,241 Net loss (income) attributable to noncontrolling interests — (3) — — (516) 11,625 — 11,106 Net income (loss) attributable to Nelnet, Inc. $ 48,986 56,317 345,591 3,344 38,749 (85,643) — 407,347 Total assets as of December 31, 2022 $ 273,072 484,976 15,945,762 918,716 1,499,785 907,180 (655,447) 19,374,044 Year ended December 31, 2021 Nelnet Financial Services Loan Servicing and Systems Education Technology Services and Payments Asset Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Eliminations Total Total interest income $ 137 1,075 506,901 7,721 9,466 336 (1,800) 523,835 Interest expense 94 — 172,918 1,507 2,756 760 (1,800) 176,233 Net interest income 43 1,075 333,983 6,214 6,710 (424) — 347,602 Less provision (negative provision) for loan losses — — (13,220) 794 — — — (12,426) Net interest income after provision for loan losses 43 1,075 347,203 5,420 6,710 (424) — 360,028 Other income (expense): Loan servicing and systems revenue 486,363 — — — — — — 486,363 Intersegment revenue 33,956 12 — — — — (33,968) — Education technology services and payments revenue — 338,234 — — — — — 338,234 Solar construction revenue — — — — — — — — Other, net 3,307 — 34,306 713 38,449 1,907 — 78,681 Gain on sale of loans, net — — 18,715 — — — — 18,715 Impairment expense (13,243) — 2,436 — — (5,553) — (16,360) Derivative settlements, net — — (21,367) — — — — (21,367) Derivative market value adjustments, net — — 92,813 — — — — 92,813 Total other income (expense), net 510,383 338,246 126,903 713 38,449 (3,646) (33,968) 977,079 Cost of services: Cost to provide education technology services and payments — 108,660 — — — — — 108,660 Cost to provide solar construction services — — — — — — — — Total cost of services — 108,660 — — — — — 108,660 Operating expenses: Salaries and benefits 297,406 112,046 2,135 5,042 830 89,673 — 507,132 Depreciation and amortization 25,649 11,404 — — — 36,682 — 73,741 Other expenses 52,720 19,318 13,487 1,776 2,585 55,589 — 145,469 Intersegment expenses, net 72,206 15,180 34,868 107 (1,379) (87,014) (33,968) — Total operating expenses 447,981 157,948 50,490 6,925 2,036 94,930 (33,968) 726,342 Income (loss) before income taxes 62,445 72,713 423,616 (792) 43,123 (99,000) — 502,105 Income tax (expense) benefit (14,987) (17,451) (101,668) 175 (10,175) 28,284 — (115,822) Net income (loss) 47,458 55,262 321,948 (617) 32,948 (70,716) — 386,283 Net loss (income) attributable to noncontrolling interests — — — — (726) 7,729 — 7,003 Net income (loss) attributable to Nelnet, Inc. $ 47,458 55,262 321,948 (617) 32,222 (62,987) — 393,286 Total assets as of December 31, 2021 $ 296,618 443,788 18,965,371 535,948 1,208,430 754,602 (526,716) 21,678,041 |
Disaggregated Revenue and Defer
Disaggregated Revenue and Deferred Revenue | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated Revenue and Deferred Revenue | Disaggregated Revenue and Deferred Revenue The following provides additional revenue recognition information for the Company’s fee-based operating segments. Loan Servicing and Systems Revenue Loan servicing and systems revenue consists of the following items: • Loan servicing revenue - Loan servicing revenue consideration is determined from individual contracts with customers and is calculated monthly based on the dollar value of loans, number of loans, number of borrowers serviced for each customer, or number of transactions. Loan servicing requires a significant level of integration and the individual components are not considered distinct. The Company performs various services, including, but not limited to, (i) application processing, (ii) monthly servicing, (iii) conversion processing, and (iv) fulfillment services, during each distinct service period. Even though the mix and quantity of activities that the Company performs each period may differ, the nature of the activities are substantially the same. Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously receive and consume benefits. • Software services revenue - Software services revenue consideration is determined from individual contracts with customers and includes license and maintenance fees associated with loan software products, generally in a remote hosted environment, and computer and software consulting. Usage-based revenue, based on each loan or unique borrower, from remote hosted licenses is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously receive and consume benefits. Revenue from any non-refundable up-front fee is recognized ratably over the contract period, as the fee relates to set-up activities that provide no incremental benefit to the customers. Computer and software consulting is also capable of being distinct and accounted for as a separate performance obligation. Revenue allocated to computer and software consulting is recognized as services are provided. • Outsourced services revenue - Outsourced services revenue consideration is determined from individual contracts with customers and is calculated monthly based on the volume of services. Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously receive and consume benefits. The following table presents disaggregated revenue by service offering: Year ended December 31, 2023 2022 2021 Government loan servicing $ 412,478 423,066 360,793 Private education and consumer loan servicing 48,984 49,210 47,302 FFELP loan servicing 13,704 16,016 18,281 Software services 29,208 33,409 34,600 Outsourced services 13,580 13,758 25,387 Loan servicing and systems revenue $ 517,954 535,459 486,363 Education Technology Services and Payments Revenue Education technology services and payments revenue consists of the following items: • Tuition payment plan services - Tuition payment plan services consideration is determined from individual plan agreements, which are governed by plan service agreements, and includes access to a remote hosted environment and management of payment processing. The management of payment processing is considered a distinct performance obligation when sold with the remote hosted environment. Revenue for each performance obligation is allocated to the distinct service period, the academic school term, and recognized ratably over the service period as customers simultaneously receive and consume benefits. • Payment processing - Payment processing consideration is determined from individual contracts with customers and includes electronic transfer and credit card processing, reporting, virtual terminal solutions, and specialized integrations to business software for education and non-education markets. Volume-based revenue from payment processing is allocated and recognized to the distinct service period, based on when each transaction is completed, and recognized as control transfers as customers simultaneously receive and consume benefits. The electronic transfer and credit card processing consideration is recognized as revenue on a gross basis as the Company is the principal in the delivery of the payment processing. The Company has concluded it is the principal as it controls the services before delivery to the educational institution or business, it is primarily responsible for the delivery of the services, and it has discretion in setting prices charged to its customers. In addition, the Company has the unilateral ability to accept or reject a transaction based on criteria established by the Company. The Company is liable for the costs of processing the transactions and records such costs within "cost to provide education technology services and payments" in the consolidated statements of income. • Education technology services - Education technology services consideration is determined from individual contracts with customers and is based on the services selected by the customer. Services in K-12 private and faith-based markets primarily includes (i) assistance with financial needs assessment, (ii) school information system software that automates administrative processes such as admissions, enrollment, scheduling, cafeteria management, attendance, and grade book management, and (iii) professional development and educational instruction services. Revenue for these services is recognized for the consideration the Company has a right to invoice, the amount of which corresponds directly with the value provided to the customer based on the performance completed. Services provided to the higher education market include payment technology and processing that allow for electronic billing and payment of campus charges. These services are considered distinct performance obligations. Revenue for each performance obligation is allocated to the distinct service period, typically a month or based on when each transaction is completed, and recognized as control transfers as customers simultaneously receive and consume benefits. The following table presents disaggregated revenue by service offering: Year ended December 31, 2023 2022 2021 Tuition payment plan services $ 125,326 110,802 103,970 Payment processing 163,859 148,212 127,080 Education technology services 170,754 146,679 105,975 Other 3,372 2,850 1,209 Education technology services and payments revenue $ 463,311 408,543 338,234 Cost to provide education technology services and payments is primarily associated with providing professional development and educational instruction and payment processing services. Items included in the cost to provide professional development and educational instruction services include salaries and benefits and third-party professional services directly related to providing these services to teachers, school leaders, and students. For payment processing services, interchange and payment network fees are charged by the card associations or payment networks. Depending upon the transaction type, the fees are a percentage of the transaction’s dollar value, a fixed amount, or a combination of the two methods. Solar Construction Revenue Solar construction revenue is derived principally from individual contracts with customers for engineering, procurement, and construction (EPC) of solar facilities for both commercial and residential customers. Solar construction is a single performance obligation which requires a significant level of integration. The individual materials and installation (the inputs) are not considered distinct and are integrated into the solar facilities (the combined output). Revenue for this service is recognized based on the project progress to date. Progress towards completion of the contract is measured by the percentage of total costs incurred to date compared with the estimated total costs to complete the contract. The Company recognizes changes in estimated total costs on a cumulative catch-up basis in the period in which the changes are identified. Such changes in estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in prior periods. Changes in estimates may also result in the reversal of previously recognized revenue if the current estimate adversely differs from the previous estimate. GRNE Solar will recognize a contract asset or liability depending on the progression of the project to date compared with the amount billed to date. The following table presents disaggregated revenue by service offering and customer type. The amounts listed for 2022 reflect activity subsequent to GRNE Solar acquisition on July 1, 2022. Year ended December 31, 2023 Period from July 1, 2022 - December 31, 2022 Solar construction $ 31,474 24,386 Operations and maintenance 195 157 Solar construction revenue $ 31,669 24,543 Commercial revenue $ 18,541 16,891 Residential revenue 11,830 7,495 Other 1,298 157 Solar construction revenue $ 31,669 24,543 Cost to provide solar construction services include direct costs associated with completing a solar facility, including labor, third-party contractor fees, permitting, engineering fees, and construction material. In addition, if the Company estimates that a project will have costs in excess of revenue, the Company will recognize the total loss in the period it is identified. Other Income/Expense The following table presents the components of "other, net" in “other income (expense)” on the consolidated statements of income: Year ended December 31, 2023 2022 2021 Reinsurance premiums $ 20,067 157 — ALLO preferred return 9,120 8,584 8,427 Borrower late fee income 8,997 10,809 3,444 Administration/sponsor fee income 6,793 7,898 3,656 Investment advisory services (WRCM) 6,760 6,026 7,773 Management fee revenue 2,587 2,543 3,307 Loss from ALLO voting membership interest investment (65,277) (67,966) (42,148) Loss from solar investments (46,702) (9,479) (10,132) Investment activity, net (8,586) 51,493 91,593 Other 17,454 15,421 12,761 Other, net $ (48,787) 25,486 78,681 • Borrower late fee income - Late fee income is earned primarily by the education lending subsidiaries in the AGM operating segment. Revenue is allocated to the distinct service period, based on when each transaction is completed. • Administration/sponsor fee income - Administration and sponsor fee income is earned by the AGM operating segment as administrator and sponsor for certain securitizations. Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously receive and consume benefits. • Investment advisory services - Investment advisory services are provided by WRCM, the Company's SEC-registered investment advisor subsidiary, under various arrangements. The Company earns monthly fees based on the monthly outstanding balance of investments and certain performance measures, which are recognized monthly as the uncertainty of the transaction price is resolved. • Management fee revenue - Management fee revenue is earned by the LSS operating segment for providing administrative support. Revenue is allocated to the distinct service period, based on when each transaction is completed. Deferred Revenue Activity in the deferred revenue balance, which is included in "other liabilities" on the consolidated balance sheets, is shown below: Loan Servicing and Systems Education Technology Services and Payments Corporate and Other Activities Total Balance as of December 31, 2020 $ 1,378 33,267 1,551 36,196 Deferral of revenue 5,882 109,278 5,775 120,935 Recognition of revenue (4,844) (105,801) (5,316) (115,961) Balance as of December 31, 2021 2,416 36,744 2,010 41,170 Deferral of revenue 2,607 138,086 13,963 154,656 Recognition of revenue (2,713) (129,433) (12,940) (145,086) Business acquisitions — 3,917 1,997 5,914 Balance as of December 31, 2022 2,310 49,314 5,030 56,654 Deferral of revenue 3,954 149,815 53,019 206,788 Recognition of revenue (2,808) (147,405) (40,676) (190,889) Balance as of December 31, 2023 $ 3,456 51,724 17,373 72,553 |
Major Customer
Major Customer | 12 Months Ended |
Dec. 31, 2023 | |
Risks and Uncertainties [Abstract] | |
Major Customer | Major Customer Government Loan Servicing The Company earns loan servicing revenue from a servicing contract with the Department. Revenue earned by the Company related to this contract was $412.5 million, $423.1 million, and $360.8 million for the years ended December 31, 2023, 2022, and 2021, respectively. The Company's current student loan servicing contract with the Department was scheduled to expire on December 14, 2023. In April 2023, Nelnet Servicing, a subsidiary of the Company, received a contract award from the Department, pursuant to which it was selected to provide continuing servicing capabilities for the Department's student aid recipients under a new Unified Servicing and Data Solution (USDS) contract (the "New Government Servicing Contract") which will replace the existing legacy Department student loan servicing contract. The New Government Servicing Contract became effective April 24, 2023 and has a five year base period, with 2 two-year and 1 one-year possible extensions. The Department's total loan servicing volume of existing borrowers will be allocated by the Department to Nelnet Servicing and four other third-party servicers that were awarded a USDS contract based on service and performance levels. Under the New Government Servicing Contract, Nelnet Servicing immediately began to make required servicing platform enhancements, for which it will be compensated from the Department on certain of these investments. Until servicing under the USDS contracts goes live, which is anticipated to be in April 2024, the Company will continue to earn revenue for servicing borrowers under its current legacy servicing contract with the Department. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Leases | Leases The following table presents supplemental balance sheet information related to leases: As of December 31, 2023 2022 Operating lease ROU assets, which is included in " other assets consolidated balance sheets $ 13,565 14,852 Operating lease liabilities, which is included in " other liabilities consolidated balance sheets $ 14,291 16,414 The following table presents components of lease expense: Year ended December 31, 2023 2022 2021 Rental expense, which is included in “other expenses” on the consolidated statements of income (a) $ 7,495 6,841 9,386 (a) Includes short-term and variable lease costs, which are immaterial. Weighted average remaining lease term and discount rate are shown below: As of December 31, 2023 2022 Weighted average remaining lease term (years) 5.36 6.01 Weighted average discount rate 4.72 % 3.90 % Maturity of lease liabilities are shown below: 2024 $ 4,503 2025 3,268 2026 2,130 2027 2,040 2028 1,030 2029 and thereafter 3,297 Total lease payments 16,268 Imputed interest (1,977) Total $ 14,291 |
Defined Contribution Benefit Pl
Defined Contribution Benefit Plan | 12 Months Ended |
Dec. 31, 2023 | |
Retirement Benefits [Abstract] | |
Defined Contribution Benefit Plan | Defined Contribution Benefit Plan The Company has a 401(k) savings plan that covers substantially all of its employees. Employees may contribute up to 100% of their pre-tax salary, subject to IRS limitations. The Company matches up to 100% on the first 3% of contributions and 50% on the next 2%. The Company made contributions to the plan of $14.2 million, $12.9 million, and $11.2 million during the years ended December 31, 2023, 2022, and 2021, respectively. |
Stock Based Compensation Plans
Stock Based Compensation Plans | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation Plan | Stock Based Compensation Plans Restricted Stock Plan The following table summarizes restricted stock activity: Year ended December 31, 2023 2022 2021 Non-vested shares at beginning of year 752,622 660,166 552,456 Granted 239,041 272,212 249,096 Vested (156,569) (136,076) (116,842) Canceled (48,332) (43,680) (24,544) Non-vested shares at end of year 786,762 752,622 660,166 As of December 31, 2023, there was $31.5 million of unrecognized compensation cost included in equity on the consolidated balance sheet related to restricted stock, which is expected to be recognized as compensation expense in future periods as shown in the table below. 2024 $ 12,586 2025 7,485 2026 4,621 2027 2,765 2028 1,642 2029 and thereafter 2,389 $ 31,488 For the years ended December 31, 2023, 2022, and 2021, the Company recognized compensation expense of $16.2 million, $13.9 million, and $10.4 million, respectively, related to shares issued under the restricted stock plan, which is included in "salaries and benefits" on the consolidated statements of income. Employee Share Purchase Plan The Company has an employee share purchase plan pursuant to which employees are entitled to purchase Class A common stock from payroll deductions at a 15% discount from market value. During the years ended December 31, 2023, 2022, and 2021, the Company recognized compensation expense of $0.1 million, $0.1 million, and $0.2 million, respectively, in connection with issuing 26,585 shares, 26,011 shares, and 24,205 shares, respectively, under this plan, which is included in "salaries and benefits" on the consolidated statements of income. Directors Compensation Plan The Company has a compensation plan for directors pursuant to which directors can elect to receive their annual retainer fees in the form of cash or Class A common stock. If a director elects to receive Class A common stock, the number of shares of Class A common stock that are awarded is equal to the amount of the annual retainer fee otherwise payable in cash divided by 85% of the fair market value of a share of Class A common stock on the date the fee is payable. Directors who choose to receive Class A common stock may also elect to defer receipt of the Class A common stock until termination of their service on the board of directors. For the years ended December 31, 2023, 2022, and 2021, the Company recognized $1.6 million, $1.7 million, and $1.4 million, respectively, of expense related to this plan, which is included in "other expenses" on the consolidated statements of income. The following table presents the number of shares awarded under this plan for the years ended December 31, 2023, 2022, and 2021. Shares issued - Shares issued- Total Year ended December 31, 2023 6,782 10,022 16,804 Year ended December 31, 2022 11,861 12,937 24,798 Year ended December 31, 2021 9,958 12,072 22,030 As of December 31, 2023, a cumulative amount of 163,136 shares have been deferred by directors and will be issued upon the termination of their service on the board of directors. These shares are included in the Company's weighted average shares outstanding calculation. |
Related Parties
Related Parties | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Related Parties | Related Parties (dollar amounts in this note are not in thousands) Transactions with Union Bank and Trust Company Union Bank is controlled by Farmers & Merchants Investment Inc. (“F&M”), which owns a majority of Union Bank's common stock and a minority share of Union Bank's non-voting non-convertible preferred stock. Michael S. Dunlap, Executive Chairman and a member of the board of directors and a significant shareholder of the Company, along with his spouse and children, owns or controls a significant portion of the stock of F&M, and Mr. Dunlap's sister, Angela L. Muhleisen, along with her spouse and children, also owns or controls a significant portion of F&M stock. Mr. Dunlap serves as a Director and Co-Chairman of F&M, and as a Director of Union Bank. Ms. Muhleisen serves as a Director, Co-Chairman, and Chief Executive Officer of F&M and as a Director, Chairperson, and member of the executive committee of Union Bank. Union Bank is deemed to have beneficial ownership of a significant number of shares of the Company because it serves in a capacity of trustee or account manager for various trusts and accounts holding shares of the Company, and may share voting and/or investment power with respect to such shares. Mr. Dunlap and Ms. Muhleisen beneficially own a significant percent of the voting rights of the Company's outstanding common stock. The Company has entered into certain contractual arrangements with Union Bank. These transactions are summarized below. Loan Purchases The Company purchased $467.6 million (par value) of federally insured loans in 2023 and $8.1 million (par value) and $22.3 million (par value) of private education loans in 2022, and 2021, respectively, from Union Bank. The net premiums paid by the Company on these loan acquisitions was $0.2 million and $0.4 million in 2022 and 2021, respectively. The premium paid by the Company for loan purchases in 2023 were insignificant. The Company has an agreement with Union Bank in which the Company provides marketing, origination, and loan servicing services to Union Bank related to private education loans. Union Bank paid $0.1 million in marketing fees to the Company in both 2022 and 2021 under this agreement. The amount paid to Union Bank for these services in 2023 was insignificant. Loan Servicing The Company serviced $173.8 million, $203.4 million, and $262.6 million of FFELP and private education loans for Union Bank as of December 31, 2023, 2022, and 2021, respectively. Servicing and origination fee revenue earned by the Company from servicing loans for Union Bank was $0.3 million, $0.4 million, and $0.5 million in 2023, 2022, and 2021, respectively. Funding - Participation Agreements The Company maintains an agreement with Union Bank, as trustee for various grantor trusts, under which Union Bank has agreed to purchase from the Company participation interests in student loans. The Company uses this facility as a source to fund FFELP student loans. As of December 31, 2023 and 2022, $295.1 million and $734.7 million, respectively, of loans were subject to outstanding participation interests held by Union Bank, as trustee, under this agreement. The agreement automatically renews annually and is terminable by either party upon five The Company maintains an agreement with Union Bank, as trustee for various grantor trusts, under which Union Bank has agreed to purchase from the Company participation interests in FFELP loan asset-backed securities (and investments). As of December 31, 2023 and 2022, $0.1 million and $395.4 million, respectively, of FFELP loan asset-backed securities were subject to outstanding participation interests held by Union Bank, as trustee, under this agreement. The FFELP loan asset-backed securities under this agreement have been accounted for by the Company as a secured borrowing. Funding - Real Estate 401 Building, LLC (“401 Building”) is an entity that was established in 2015 for the sole purpose of acquiring, developing, and owning a commercial real estate property in Lincoln, Nebraska. The Company owns 50% of 401 Building. On May 1, 2018, Union Bank, as lender, received a $1.5 million promissory note from 401 Building. The promissory note carries an interest rate of 6.00% and has a maturity date of December 1, 2032. 330-333, LLC (“330-333”) is an entity that was established in 2016 for the sole purpose of acquiring, developing, and owning a commercial real estate property in Lincoln, Nebraska. The Company owns 50% of 330-333. On October 22, 2019, Union Bank, as lender, received a $162,000 promissory note from 330-333. The promissory note carries an interest rate of 6.00% and has a maturity date of December 1, 2032. TDP Phase III (“TDP”) is an entity that was established in 2015 for the sole purpose of acquiring, developing, and owning a commercial real estate property in Lincoln, Nebraska. The Company owns 25% of TDP. On December 30, 2022, Union Bank, as lender, received a $20.0 million promissory note from TDP. The promissory note carries an interest rate of 5.85% and has a maturity date of January 1, 2028. Operating Cash Accounts The majority of the Company's cash operating accounts are maintained at Union Bank. The Company also invests amounts in the Short term Federal Investment Trust (STFIT) of the Student Loan Trust Division of Union Bank, which are included in “cash and cash equivalents - held at a related party” and “restricted cash - due to customers” on the consolidated balance sheets. As of December 31, 2023 and 2022, the Company had $459.1 million and $362.0 million, respectively, invested in the STFIT or deposited at Union Bank in operating accounts, of which $325.9 million and $268.4 million as of December 31, 2023 and 2022, respectively, represented cash collected for customers. Interest income earned by the Company on the amounts invested in the STFIT and in cash operating accounts in 2023, 2022, and 2021, was $4.7 million, $1.2 million, and $0.2 million, respectively. Educational 529 College Savings Plan The Company provides certain Educational 529 College Savings Plan administration services to certain college savings plans (the “College Savings Plans”) through a contract with Union Bank, as the program manager. Union Bank is entitled to a fee as program manager pursuant to its program management agreement with the College Savings Plans. For the years ended December 31, 2023, 2022, and 2021, the Company has received fees of $2.5 million, $2.1 million, and $3.5 million, respectively, from Union Bank related to the administration services provided to the College Savings Plans. During 2021, certain call center services were provided by the Company to Union Bank for College Savings Plan clients. For services provided in 2021, the Company received $0.4 million from Union Bank. The Company did not provide these services to Union Bank in 2023 and 2022. Additionally, Union Bank, as the program manager for the College Savings Plans, has agreed to allocate plan bank deposits to Nelnet Bank. As of December 31, 2023 and 2022, Nelnet Bank had $413.2 million and $355.3 million, respectively, in deposits from the funds offered under the College Savings Plans. Lease Arrangements Prior to the lease agreement expiration in 2023, Union Bank leased approximately 4,100 square feet in the Company's corporate headquarters building. Union Bank paid the Company approximately $55,000, $82,000, and $81,000 for commercial rent and storage income during 2023, 2022, and 2021, respectively. During 2023, the Company entered into a lease agreement with Union Bank for office space in Omaha, Nebraska. The Company paid Union Bank $1.1 million in rent pursuant to this agreement prior to terminating the lease, at which time the Company paid a $2.4 million termination fee to Union Bank. Other Fees Paid to Union Bank During the years ended December 31, 2023, 2022, and 2021, the Company paid Union Bank approximately $592,000, $177,000, and $280,000, respectively, in cash and flexible spending accounts management, trustee and health savings account maintenance fees, and investment custodial and correspondent services for Nelnet Bank. Other Fees Received from Union Bank During the years ended December 31, 2023, 2022, and 2021, Union Bank paid the Company approximately $351,000, $342,000, and $342,000, respectively, under certain employee sharing arrangements. 401(k) Plan Administration Union Bank administers the Company's 401(k) defined contribution plan. Fees paid to Union Bank to administer the plan are paid by the plan participants and were approximately $852,000, $793,000, and $766,000 during the years ended December 31, 2023, 2022, and 2021, respectively. Investment Services Union Bank has established various trusts whereby Union Bank serves as trustee for the purpose of purchasing, holding, managing, and selling investments in student loan asset-backed securities. WRCM, an SEC-registered investment advisor and a non-wholly owned subsidiary of the Company, has a management agreement with Union Bank under which WRCM performs various advisory and management services on behalf of Union Bank with respect to investments in securities by the trusts, including identifying securities for purchase or sale by the trusts. The agreement provides that Union Bank will pay to WRCM annual fees of 10 basis points to 25 basis points on the outstanding balance of the investments in the trusts. As of December 31, 2023, the outstanding balance of investments in the trusts was $2.4 billion. In addition, Union Bank will pay additional fees to WRCM which equal a share of the gains from the sale of securities from the trusts or securities being called prior to the full contractual maturity. For the years ended December 31, 2023, 2022, and 2021, the Company earned $5.5 million, $4.9 million, and $6.3 million, respectively, of fees under this agreement. WRCM also has management agreements with Union Bank under which it is designated to serve as investment advisor with respect to the assets (principally Nelnet stock) within several trusts established by Mr. Dunlap and his spouse, and Ms. Muhleisen and her spouse. Union Bank serves as trustee for the trusts. Per the terms of the agreements, Union Bank pays WRCM five basis points of the aggregate value of the assets of the trusts as of the last day of each calendar quarter. As of December 31, 2023, WRCM was the investment advisor with respect to a total 501,786 shares and 4.5 million shares of the Company's Class A and Class B common stock, respectively, held directly by these trusts. For the years ended December 31, 2023, 2022, and 2021, the Company earned approximately $249,000, $216,000, and $213,000, respectively, of fees under these agreements. WRCM has established private investment funds for the primary purpose of purchasing, selling, investing, and trading, directly or indirectly, in student loan asset-backed securities, and to engage in financial transactions related thereto. Mr. Dunlap, Jeffrey R. Noordhoek (an executive officer of the Company), Ms. Muhleisen and her spouse, and WRCM have invested in certain of these funds. Based upon the current level of holdings by non-affiliated limited partners, the management agreements provide non-affiliated limited partners the ability to remove WRCM as manager without cause. WRCM earns 50 basis points (annually) on the outstanding balance of the investments in these funds, of which WRCM pays approximately 50% of such amount to Union Bank as custodian. As of December 31, 2023, the outstanding balance of investments in these funds was $131.7 million. The Company paid Union Bank $0.3 million in each of 2023, 2022, and 2021 as custodian of the funds. Transactions with Agile Sports Technologies, Inc. (doing business as "Hudl") David Graff, who has served on the Company's Board of Directors since 2014, is CEO, co-founder, and a director of Hudl. As of December 31, 2023, the Company and Mr. Dunlap, along with his children, held a combined direct and indirect equity ownership interests in Hudl of approximately 21% and 4%, respectively. In May 2020 and May 2021, the Company made additional investments in Hudl of approximately $26 million and approximately $5 million, respectively, as one of the participants in an equity raise completed by Hudl. In addition, in February 2023, the Company purchased stock from existing Hudl shareholders for total consideration of $31.5 million. See note 6 for additional information on the 2023 transaction and the Company’s accounting for its investment in Hudl. The Company makes investments to further diversify the Company both within and outside of its historical core education-related businesses, including investments in real estate. Recent real estate investments have been focused on the development of commercial properties in the Midwest, and particularly in Lincoln, Nebraska, where the Company's headquarters are located. The Company owns 25% of TDP, which is the entity that developed and owns a building in Lincoln's Haymarket District that is the headquarters of Hudl, in which Hudl is the primary tenant and Nelnet is a tenant in this building. During 2023 and 2022, the Company paid Hudl approximately $558,000 and $158,000, respectively, to provide lunches for Nelnet’s associates in Hudl’s employee cafeteria. Nelnet Renewable Energy Solar Tax Equity Investments The Company has co-invested in Company-managed limited liability companies with related parties that invest in renewable energy (solar) (as summarized below). As part of these transactions, the Company receives management and performance fees under a management agreement. Entity/Relationship Investment amount Revenue recognized by the Company from management and performance fees 2023 2022 2021 2023 2022 2021 Union Bank $ 18,456,829 4,881,063 — 152,757 66,568 — F&M — 3,487,000 7,913,000 123,077 123,077 29,491 North Central Bancorp, Inc. (directly and indirectly owned by F&M, Mr. Dunlap, and Ms. Muhleisen) 2,212,394 — 2,466,667 42,769 30,769 14,958 Infovisa, Inc. (directly and indirectly owned by F&M, 737,465 507,781 562,600 12,234 8,369 1,923 Farm and Home Insurance Agency, Inc. (indirectly owned by Mr. Dunlap and Ms. Muhleisen) 737,465 — 116,667 7,846 3,846 962 Funding - Solar Union Bank has provided funding for the following Nelnet Renewable Energy properties and solar fields. Building/solar field Original loan amount Loan amount outstanding as of December 31, 2023 Fixed interest rate Maturity date Office space - Palatine, Illinois $ 287,000 $ 274,860 6.05 % 12/30/2027 Warehouse - Elk Grove Village, Illinois 332,000 278,403 5.35 3/1/2024 Solarfield - Round Lake, Illinois 900,000 882,449 5.00 11/15/2030 Solarfield - Round Lake, Illinois 1,700,000 1,659,076 5.00 11/15/2028 Solarfield - St. Charles, Illinois 2,300,000 2,094,575 5.00 11/15/2028 Solarfield - St. Charles, Illinois 600,000 588,359 5.00 11/15/2030 Stock Repurchase On November 13, 2023, the Company repurchased, in a privately negotiated transaction under the Company’s existing stock repurchase program, a total of 283,112 shares of the Company’s Class A common stock from certain family members of Mr. Dunlap. The shares were repurchased at a discount to the closing market price of the Company’s Class A common stock as of November 10, 2023, and the transaction was separately approved by the Company’s Board of Directors and its Nominating and Corporate Governance Committee. |
Fair Value
Fair Value | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value | Fair Value The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis. There were no transfers into or out of level 1, level 2, or level 3 for the years ended December 31, 2023 and 2022. As of December 31, 2023 As of December 31, 2022 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Investments (a): Asset-backed debt securities - available-for-sale $ 99 955,804 955,903 100 1,388,937 1,389,037 Equity securities 73 — 73 6,719 — 6,719 Equity securities measured at net asset value (b) 50,834 32,363 Total investments 172 955,804 1,006,810 6,819 1,388,937 1,428,119 Derivative instruments (c) — 452 452 — — — Total assets $ 172 956,256 1,007,262 6,819 1,388,937 1,428,119 Liabilities: Derivative instruments (c) $ — 1,976 1,976 — — — Total liabilities $ — 1,976 1,976 — — — (a) Investments represent investments recorded at fair value on a recurring basis. Level 1 investments are measured based upon quoted prices and as of December 31, 2023 and 2022, include investments traded on an active exchange and a single U.S. Treasury security. Level 2 investments include student loan asset-backed, mortgage-backed, collateralized loan obligation, and other consumer loan-backed securities. The fair value for the Level 2 securities is determined using indicative quotes from broker-dealers or an income approach valuation technique (present value using the discount rate adjustment technique) that considers, among other things, rates currently observed in publicly traded debt markets for debt of similar terms issued by companies with comparable credit risk. (b) In accordance with the Fair Value Measurements Topic of the FASB Accounting Standards Codification, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. (c) Nelnet Bank derivatives are accounted for at fair value on a recurring basis. The fair value of derivative financial instruments is determined using a market approach in which derivative pricing models use the stated terms of the contracts and observable yield curves and volatilities from active markets. When determining the fair value of derivatives, Nelnet Bank takes into account counterparty credit risk for positions where it is exposed to the counterparty on a net basis by assessing exposure net of collateral held. The net exposures for each counterparty are adjusted based on market information available for the specific counterparty. The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets: As of December 31, 2023 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Loans receivable $ 12,800,638 12,343,819 — — 12,800,638 Accrued loan interest receivable 764,385 764,385 — 764,385 — Cash and cash equivalents 168,112 168,112 168,112 — — Investments (at fair value) 1,006,810 1,006,810 172 955,804 — Investments - held to maturity 163,622 162,738 — 163,622 — Notes receivable 53,747 53,747 — 53,747 — Beneficial interest in loan securitizations 262,093 225,079 — — 262,093 Restricted cash 488,723 488,723 488,723 — — Restricted cash – due to customers 368,656 368,656 368,656 — — Derivative instruments 452 452 — 452 — Financial liabilities: Bonds and notes payable 11,629,359 11,828,393 — 11,629,359 — Accrued interest payable 35,391 35,391 — 35,391 — Bank deposits 722,973 743,599 467,420 255,553 — Due to customers 425,507 425,507 425,507 — — Derivative instruments 1,976 1,976 — 1,976 — As of December 31, 2022 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Loans receivable $ 14,586,794 14,427,025 — — 14,586,794 Accrued loan interest receivable 816,864 816,864 — 816,864 — Cash and cash equivalents 118,146 118,146 118,146 — — Investments (at fair value) 1,428,119 1,428,119 6,819 1,388,937 — Investments - held to maturity 18,996 18,774 — 18,996 — Notes receivable 31,106 31,106 — 31,106 — Beneficial interest in loan securitizations 162,360 138,738 — — 162,360 Restricted cash 945,159 945,159 945,159 — — Restricted cash – due to customers 294,311 294,311 294,311 — — Financial liabilities: Bonds and notes payable 14,088,666 14,637,195 — 14,088,666 — Accrued interest payable 36,049 36,049 — 36,049 — Bank deposits 664,573 691,322 355,282 309,291 — Due to customers 348,317 348,317 348,317 — — The methodologies for estimating the fair value of financial assets and liabilities that are measured at fair value on a recurring basis are previously discussed. The remaining financial assets and liabilities were estimated using the following methods and assumptions: Loans Receivable Fair values for loans receivable were determined by modeling loan cash flows using stated terms of the assets and internally-developed assumptions. The significant assumptions used to project cash flows are prepayment speeds, default rates, cost of funds, required return on equity, and future interest rate and index relationships. A number of significant inputs into the models are internally derived and not observable to market participants. Investments - Held to Maturity Fair values for investments classified as held to maturity were determined by using indicative quotes from broker-dealers or an income approach valuation technique (present value using the discount rate adjustment technique) that considers, among other things, rates currently observed in publicly traded debt markets for debt of similar terms issued by companies with comparable credit risk. Notes Receivable Fair values for notes receivable were determined by using model-derived valuations with observable inputs, including current market rates. Beneficial Interest in Loan Securitizations Fair values for beneficial interest in loan securitizations were determined by modeling securitization cash flows and internally-developed assumptions. The significant assumptions used to project cash flows are prepayment speeds, default rates, cost of funds, required return on equity, and future interest rate and index relationships. A number of significant inputs into the models are internally derived and not observable to market participants. Cash and Cash Equivalents, Restricted Cash, Restricted Cash – Due to Customers, Accrued Loan Interest Receivable, Accrued Interest Payable, and Due to Customers The carrying amount approximates fair value due to the variable rate of interest and/or the short maturities of these instruments. Bonds and Notes Payable The fair value of student loan asset-backed securitizations and warehouse facilities was determined from quotes from broker-dealers or through standard bond pricing models using the stated terms of the borrowings, observable yield curves, market credit spreads, and weighted average life of underlying collateral. For all other bonds and notes payable, the carrying amount approximates fair value due to the variable rate of interest and/or the short maturities of these instruments. Bank Deposits Some of the Company’s deposits are fixed-rate and the fair value for these deposits are estimated using discounted cash flows based on rates currently offered for deposits of similar maturities. These are level 2 valuations. The fair value of the remaining deposits equal the amounts payable on demand at the balance sheet date and are reported at their carrying value. These are level 1 valuations. Limitations The fair value estimates are made at a specific point in time based on relevant market information and information about the financial instruments. Because no market exists for a significant portion of the Company's financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Therefore, the calculated fair value estimates in many instances cannot be substantiated by comparison to independent markets and, in many cases, may not be realizable in a current sale of the instrument. Changes in assumptions could significantly affect the estimates. |
Legal Proceedings
Legal Proceedings | 12 Months Ended |
Dec. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Proceedings | Legal Proceedings The Company is subject to various claims, lawsuits, and proceedings that arise in the normal course of business. These matters frequently involve claims by student loan borrowers disputing the manner in which their student loans have been serviced or the accuracy of reports to credit bureaus, claims by student loan borrowers or other consumers alleging that state or Federal privacy, cybersecurity, and other consumer protection laws have been violated in the process of servicing loans or conducting other business activities, and disputes with other business entities. In addition, from time to time, the Company receives information and document requests or demands from state or federal regulators concerning its business practices. The Company cooperates with these inquiries and responds to the requests or demands. While the Company cannot predict the ultimate outcome of any claim, regulatory examination, inquiry, or investigation, the Company believes its activities have materially complied with applicable law, including the Higher Education Act, the rules and regulations adopted by the Department thereunder, and the Department's guidance regarding those rules and regulations, and applicable consumer protection laws and regulations. On the basis of present information, anticipated insurance coverage, and advice received from counsel, it is the opinion of the Company's management that the disposition or ultimate determination of claims, lawsuits, and proceedings such as those discussed above will not have a material adverse effect on the Company's business, financial position, or results of operations. |
Condensed Parent Company Financ
Condensed Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Parent Company Financial Statements | Condensed Parent Company Financial Statements The following represents the condensed balance sheets as of December 31, 2023 and 2022 and condensed statements of income, comprehensive income, and cash flows for each of the years in the three-year period ended December 31, 2023 for Nelnet, Inc. The Company is limited in the amount of funds that can be transferred to it by its subsidiaries through intercompany loans, advances, or cash dividends. These limitations relate to the restrictions by trust indentures under the lending subsidiaries debt financing arrangements. Balance Sheets (Parent Company Only) As of December 31, 2023 and 2022 2023 2022 Assets: Cash and cash equivalents $ 31,153 27,201 Investments 1,071,335 1,464,583 Investment in subsidiary debt 287,192 410,191 Restricted cash 61,527 114,820 Investment in subsidiaries 1,951,098 2,200,344 Notes receivable from subsidiaries 102,694 67,012 Other assets 128,903 108,983 Total assets $ 3,633,902 4,393,134 Liabilities: Notes payable, net of debt issuance costs $ 206,520 960,358 Other liabilities 161,890 233,536 Total liabilities 368,410 1,193,894 Equity: Nelnet, Inc. shareholders' equity: Common stock 371 372 Additional paid-in capital 3,096 1,109 Retained earnings 3,279,273 3,234,844 Accumulated other comprehensive loss, net (20,119) (37,366) Total Nelnet, Inc. shareholders' equity 3,262,621 3,198,959 Noncontrolling interests 2,871 281 Total equity 3,265,492 3,199,240 Total liabilities and shareholders' equity $ 3,633,902 4,393,134 Statements of Income (Parent Company Only) Years ended December 31, 2023, 2022, and 2021 2023 2022 2021 Investment interest income $ 86,696 50,465 12,455 Interest expense on bonds and notes payable 31,142 21,489 3,515 Net interest income 55,554 28,976 8,940 Other income (expense): Other, net (57,959) (42,625) 38,761 Equity in subsidiaries income 103,959 228,169 313,451 Impairment expense (2,060) (6,561) (4,637) Derivative market value adjustments and derivative settlements, net (15,662) 264,634 71,446 Total other income (expense), net 28,278 443,617 419,021 Operating expenses 5,445 14,552 7,632 Income before income taxes 78,387 458,041 420,329 Income tax benefit (expense) 12,935 (50,732) (27,101) Net income 91,322 407,309 393,228 Net loss attributable to noncontrolling interests 210 38 58 Net income attributable to Nelnet, Inc. $ 91,532 407,347 393,286 Statements of Comprehensive Income (Parent Company Only) Years ended December 31, 2023, 2022, and 2021 2023 2022 2021 Net income $ 91,322 407,309 393,228 Other comprehensive income (loss): Net changes related to equity in subsidiaries other comprehensive income (loss) $ 9,473 (11,188) 6,692 Net changes related to available-for-sale debt securities: Unrealized holding gains (losses) arising during period, net 6,412 (42,793) (4,220) Reclassification of losses (gains) recognized in net income, net 3,818 (3,894) (372) Income tax effect (2,456) 7,774 11,205 (35,482) 1,102 (3,490) Other comprehensive income (loss) 17,247 (46,670) 3,202 Comprehensive income 108,569 360,639 396,430 Comprehensive loss attributable to noncontrolling interests 210 38 58 Comprehensive income attributable to Nelnet, Inc. $ 108,779 360,677 396,488 Statements of Cash Flows (Parent Company Only) Years ended December 31, 2023, 2022, and 2021 2023 2022 2021 Net income attributable to Nelnet, Inc. $ 91,532 407,347 393,286 Net loss attributable to noncontrolling interest (210) (38) (58) Net income 91,322 407,309 393,228 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 620 619 591 Derivative market value adjustments 40,250 (231,691) (92,813) Proceeds from termination of derivative instruments 164,079 91,786 — (Payments to) proceeds from clearinghouse - initial and variation margin, net (213,923) 148,691 91,294 Equity in earnings of subsidiaries (103,959) (228,169) (313,451) Loss on investments, net 64,584 51,175 721 Proceeds from sale of equity securities, net of purchases 75 42,841 (42,916) Deferred income tax (benefit) expense (71,056) 39,997 47,423 Non-cash compensation expense 16,476 14,176 10,673 Impairment expense 2,060 6,561 4,637 (Increase) decrease in other assets (18,181) 14,816 (2,578) Increase in other liabilities 11,049 10,590 1,784 Net cash (used in) provided by operating activities (16,604) 368,701 98,593 Cash flows from investing activities: Purchases of available-for-sale securities (206,927) (713,681) (640,644) Proceeds from sales of available-for-sale securities 569,670 435,937 133,286 Proceeds from beneficial interest in consumer loan securitization 6,783 345 — Capital distributions from subsidiaries, net 355,790 7,340 294,578 (Increase) decrease in notes receivable from subsidiaries (35,682) (66,698) 20,895 Proceeds from (payments on) subsidiary debt, net 122,999 (36,104) (335,184) Purchases of other investments (60,707) (122,236) (110,184) Proceeds from other investments and repayments of notes receivable 32,732 20,358 129,899 Net cash provided by (used in) investing activities 784,658 (474,739) (507,354) Cash flows from financing activities: Payments on notes payable (954,163) (7,002) (126,530) Proceeds from issuance of notes payable 199,855 233,194 619,259 Payments of debt issuance costs — (10) (1,286) Dividends paid (39,419) (36,608) (34,457) Repurchases of common stock (28,028) (97,685) (58,111) Proceeds from issuance of common stock 1,780 1,633 1,465 Issuance of noncontrolling interest 2,580 — — Net cash (used in) provided by financing activities (817,395) 93,522 400,340 Net decrease in cash, cash equivalents, and restricted cash (49,341) (12,516) (8,421) Cash, cash equivalents, and restricted cash, beginning of period 142,021 154,537 162,958 Cash, cash equivalents, and restricted cash, end of period $ 92,680 142,021 154,537 Cash disbursements made for: Interest $ 34,895 14,649 2,301 Income taxes, net of refunds and credits $ 47,589 57,705 18,659 Non-cash investing and financing activities: (Contributions to) distributions from subsidiary, net $ (6,888) 6,068 835 Issuance of noncontrolling interest $ 220 — — |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Pay vs Performance Disclosure | |||
Net income (loss) attributable to parent | $ 91,532 | $ 407,347 | $ 393,286 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Dec. 31, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies and Practices (Policies) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Consolidation | Consolidation The consolidated financial statements include the accounts of Nelnet, Inc. and its consolidated subsidiaries. In addition, the accounts of all variable interest entities (VIEs) of which the Company has determined that it is the primary beneficiary are included in the consolidated financial statements. All significant intercompany balances and transactions have been eliminated in consolidation. |
Variable Interest Entities | Variable Interest Entities The Company assesses its partnerships and joint ventures to determine if the entity meets the qualifications of a VIE. The Company performs a qualitative assessment of each identified VIE to determine if it is the primary beneficiary. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance, and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. The Company examines specific criteria and uses judgment when determining whether an entity is a VIE and whether it is the primary beneficiary. The Company performs this review initially at the time it enters into a partnership or joint venture agreement and reassess upon reconsideration events. VIEs - Consolidated The Company is required to consolidate VIEs in which it has determined it is the primary beneficiary. The Company's education and other lending subsidiaries are engaged in the securitization of finance assets. These lending subsidiaries hold beneficial interests in eligible loans, subject to creditors with specific interests. The liabilities of the Company's lending subsidiaries are not the direct obligations of Nelnet, Inc. or any of its other subsidiaries. Each lending subsidiary is structured to be bankruptcy remote, meaning that it should not be consolidated in the event of bankruptcy of the parent company or any other subsidiary. The Company is generally the administrator and master servicer of the securitized assets held in its lending subsidiaries and owns the residual interest of the securitization trusts. For accounting purposes, the transfers of loans to the securitization trusts do not qualify as sales. Accordingly, all the financial activities and related assets and liabilities, including debt, of the securitizations are reflected in the Company's consolidated financial statements and are summarized as supplemental information on the balance sheet. VIEs - Not consolidated The Company is not required to consolidate VIEs in which it has determined it is not the primary beneficiary. VIEs not consolidated by the Company include its equity investment in ALLO, tax equity investments, and beneficial interests in loan securitizations. ALLO As of December 31, 2023, the Company owned 45% of the economic rights of ALLO, and has a disproportional 43% of the voting rights related to all operating decisions for ALLO's business. ALLO provides pure fiber optic service to homes and businesses for internet, television, and telephone services. See note 6 for the Company’s carrying value of its voting interest and non-voting preferred membership investments, which is the Company’s maximum exposure to loss. Prior to December 21, 2020, the Company consolidated the operating results of ALLO. In 2020, the Company entered into various agreements with SDC, a third-party global digital infrastructure investor, and ALLO, for various transactions contemplated by the parties in connection with a recapitalization for ALLO. The recapitalization transaction ultimately resulted in the deconsolidation of ALLO from the Company’s consolidated financial statements. As part of the ALLO recapitalization transaction, the Company and SDC entered into an agreement, in which the Company has a contingent payment obligation to pay SDC a contingent payment amount of up to $35.0 million in the event the Company disposes of its voting membership interests of ALLO that it holds and realizes from such disposition certain targeted return levels. The Company recognized the estimated fair value of the contingent payment to be $9.8 million and $7.6 million as of December 31, 2023 and 2022, respectively, which is included in “other liabilities” on the consolidated balance sheets. Tax Equity Investments The Company makes tax equity investments in entities that promote renewable energy sources (solar). The Company’s investments in these entities generate a return primarily through the realization of federal income tax credits, operating cash flows, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These investments are included in "investments and notes receivable" on the consolidated balance sheets. As of December 31, 2023, the Company has funded a total of $470.7 million in solar investments, which included $198.8 million funded by syndication partners. The carrying value of these investments are reduced by tax credits earned when the solar project is placed-in-service. The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are included in “other liabilities” on the consolidated balance sheets when the solar project is placed-in-service. The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment, unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level. The tax credit recapture period ratably decreases over five years from when the project is placed-in-service. While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the energy-producing projects completely fail and do not meet certain government compliance requirements resulting in recapture of the related tax credits. The following table presents a summary of solar investment VIEs that the Company has not consolidated: As of December 31, 2023 2022 Investment carrying amount, excluding third-party investors $ (65,266) (36,863) Tax credits subject to recapture 153,699 88,692 Unfunded capital and other commitments 82,046 33,456 Company’s maximum exposure to loss $ 170,479 85,285 As of December 31, 2023, the Company is committed to fund an additional $154.2 million on new tax equity investments, of which $72.1 million is expected to be provided by syndication partners. Beneficial Interest in Loan Securitizations The Company has partial ownership in consumer, private education, and federally insured student loan third-party securitizations that are classified as “beneficial interest in loan securitizations” and included in “investments and notes receivable” on the Company’s consolidated balance sheets. These residual interests were acquired by AGM or have been received in consideration of AGM selling portfolios of loans to unrelated third parties who securitized such loans. See note 6 for the Company’s carrying value of its beneficial interest in loan securitization investments, which is the Company’s maximum exposure to loss. |
Noncontrolling Interests | Noncontrolling Interests Amounts for noncontrolling interests reflect the share of membership interest (equity) and net income attributable to the holders of minority membership interests in the following entities: • Whitetail Rock Capital Management, LLC - WRCM is the Company’s SEC-registered investment advisor subsidiary. WRCM issued 10% minority membership interests on January 1, 2012. • NGWeb Solutions, LLC - The Company acquired a controlling interest of NGWeb Solutions, LLC on April 30, 2022. Minority membership interests of 20% were maintained by prior interest holders. See note 7 for a description of NGWeb Solutions, LLC, including the primary services offered. • GRNE-Nelnet, LLC and ENRG-Nelnet, LLC - The Company acquired a controlling interest in two subsidiaries of GRNE Solutions, LLC on July 1, 2022. Minority membership interests of 20% were maintained by prior interest holders. See note 7 for additional description of the acquisition, including the primary services offered. |
Use of Estimates | Use of Estimates The preparation of the consolidated financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make a number of estimates and assumptions that affect the reported amounts of assets and liabilities, reported amounts of revenues and expenses, and other disclosures. Actual results may differ from those estimates. |
Loans Receivable / Allowance for Loan Losses / Notes Receivables | Loans Receivable Loans consist of federally insured student, private education, consumer, and other loans. If the Company has the ability and intent to hold loans for the foreseeable future, such loans are held for investment and carried at amortized cost. Amortized cost includes the unamortized premium or discount and capitalized origination costs and fees, all of which are amortized to interest income. Loans which are held-for-investment also have an allowance for loan loss as needed. Any loans the Company has the ability and intent to sell are classified as held for sale and are carried at the lower of cost or fair value. Loans which are held for sale do not have the associated premium or discount and origination costs and fees amortized into interest income and there is also no related allowance for loan losses. There were no loans classified as held for sale as of December 31, 2023 and 2022. Federally insured loans were originated under the FFEL Program by certain eligible lenders as defined by the Higher Education Act of 1965, as amended (the “Higher Education Act”). These loans, including related accrued interest, are guaranteed at their maximum level permitted under the Higher Education Act by an authorized guaranty agency, which has a contract of reinsurance with the Department. The terms of the loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest. Generally, Stafford and PLUS loans have repayment periods between five twelve Substantially all FFELP loan principal and related accrued interest is guaranteed as provided by the Higher Education Act. These guarantees are subject to the performance of certain loan servicing due diligence procedures stipulated by applicable Department regulations. If these due diligence requirements are not met, affected student loans may not be covered by the guarantees in the event of borrower default. Such student loans are subject to “cure” procedures and reinstatement of the guarantee under certain circumstances. Loans also include private education, consumer, and other loans. Private education loans are loans to students or their families that are non-federal loans and loans not insured or guaranteed under the FFEL Program. These loans are used primarily to bridge the gap between the cost of higher education and the amount funded through financial aid, federal loans, or borrowers' personal resources. The terms of the private education loans, which vary on an individual basis, generally provide for repayment in monthly installments of principal and interest over a period of up to thirty years. The private education loans are not covered by a guarantee or collateral in the event of borrower default. Consumer loans are unsecured loans to an individual for personal, family, or household purposes. The terms of the consumer loans, which vary on an individual basis, generally provide for repayment in weekly or monthly installments of principal and interest over a period of up to six years. Other loans consist of home equity lines of credit. These loans are made to an individual primarily for debt consolidation purposes using equity in the borrower’s home as security in the form of primarily second liens. These loans typically have a revolving draw period of five years and a repayment period at the end of the draw period of five On January 1, 2023, the Company adopted new accounting guidance concerning loan modifications. The new guidance requires an entity to evaluate whether a loan modification represents a new loan or a continuation of an existing loan and enhances the disclosure requirements for certain modifications of receivables made to borrowers experiencing financial difficulty. Because federally insured loan modifications are driven by the Higher Education Act, the Company does not consider these events as part of its loan modification programs. Administrative forbearances (e.g. bankruptcy, military service, death and disability, and disaster forbearance) are required by law and therefore are also not considered as part of the Company's loan modification programs. The Company does offer payment delays in the form of deferments or forbearances on certain private education and consumer loan programs for short-term periods. The Company generally considers payment delays to be insignificant when the delay is 3 months or less. The amortized cost of the Company’s private education and consumer loans in which the borrower is experiencing financial difficulty and the financial effect of such loan modifications is not material. Allowance for Loan Losses The Company accounts for the evaluation and estimate of probable losses on loans under the current expected credit loss (CECL) methodology. The CECL methodology utilizes a lifetime “expected credit loss” measurement objective for the recognition of credit losses for financial assets measured at amortized cost at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. The allowance for loan losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans as of the balance sheet date. Such allowance is based on the credit losses expected to arise over the life of the asset which includes consideration of prepayments. Loans are charged off when management determines the loan is uncollectible. Charge-offs are recognized as a reduction to the allowance for loan losses. Expected recoveries of amounts previously charged off, not to exceed the aggregate of the amount previously charged off, are included in the estimate of the allowance for loan losses at the balance sheet date. The Company determines its estimated credit losses for the following financial assets as follows: Loans receivable The Company aggregates loans with similar risk characteristics into pools to estimate its expected credit losses. The Company evaluates such pooling decisions each quarter and makes adjustments as risk characteristics change. Management has determined that the federally insured, private education, consumer, and other loan portfolios each meet the definition of a portfolio segment, which is defined as the level at which an entity develops and documents a systematic method for determining its allowance for loan losses. Accordingly, the portfolio segment disclosures are presented on this basis in note 3 for each of these portfolios. The Company does not disaggregate its portfolio segment loan portfolios into classes of financing receivables. The Company utilizes an undiscounted cash flow methodology in determining its lifetime expected credit losses on its federally insured and private education loan portfolios and a remaining life methodology for its consumer and other loan portfolios. For the undiscounted cash flow models, the expected credit losses are the product of multiplying the Company’s estimates of probability of default and loss given default and the exposure of default over the expected life of the loans. For the remaining life method, the expected credit losses are the product of multiplying the Company’s estimated net loss rate by the exposure at default over the expected life of the loans. Management estimates the allowance balance using relevant available information, from internal and external sources, relating to past events, current economic conditions, and reasonable and supportable forecasts. The Company has determined that, for modeling current expected credit losses, the Company can reasonably estimate expected losses that incorporate current economic conditions and forecasted probability weighted economic scenarios up to a one-year period. Macroeconomic factors used in the models include such variables as unemployment rates, gross domestic product, and consumer price index. After the "reasonable and supportable" period, the Company reverts to its actual long-term historical loss experience in the historical observation period. The Company uses a straight line reversion method over two years. Historical credit loss experience provides the basis for the estimation of expected credit losses. A portion of the allowance is comprised of qualitative adjustments to historical loss experience. Qualitative adjustments consider the following factors, as applicable, for each of the Company’s loan portfolios: student loans in repayment versus those in nonpaying status; delinquency status; type of private education, consumer, or other loan program; trends in defaults in the portfolio based on Company and industry data; past experience; trends in federally insured student loan claims rejected for payment by guarantors; changes in federal student loan programs; and other relevant qualitative factors. The federal government guarantees 97% of the principal of and the interest on federally insured student loans disbursed on and after July 1, 2006 (and 98% for those loans disbursed on and after October 1, 1993 and prior to July 1, 2006), which limits the Company’s loss exposure on the outstanding balance of the Company’s federally insured portfolio. Federally insured student loans disbursed prior to October 1, 1993 are fully insured. Private education and consumer loans are unsecured, with neither a government nor a private insurance guarantee. Accordingly, the Company bears the full risk of loss on these loans if the borrower and co-borrower, if applicable, default. The Company places private education, consumer, and other loans on nonaccrual status when the collection of principal and interest is 90 days past due and charges off the loan when the collection of principal and interest is 120 days or 180 days past due, depending on type of loan program. Collections, if any, are reflected as a recovery through the allowance for loan losses. Purchased Loans Receivable with Credit Deterioration (PCD) The Company has purchased federally insured rehabilitation loans that have experienced more than insignificant credit deterioration since origination. Rehabilitation loans are loans that have previously defaulted, but for which the borrower has made a specified number of on-time payments. Although rehabilitation loans benefit from the same guarantees as other federally insured loans, rehabilitation loans have generally experienced redefault rates that are higher than default rates for federally insured loans that have not previously defaulted. These PCD loans are recorded at the amount paid. An allowance for loan losses is determined using the same methodology as for other loans held for investment. The sum of the loans’ purchase price and allowance for loan losses becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized or accreted into interest income over the life of the loan. Subsequent changes to the allowance for credit losses are recorded through provision expense. Loan Accrued Interest Receivable Accrued interest receivable on loans is combined and presented with the loans receivable amortized cost balance on the Company’s consolidated balance sheets. For the Company’s federally insured loan portfolio, the Company records an allowance for credit losses for accrued interest receivables. For federally insured loans, accrued interest receivable is typically charged-off when the contractual payment of principal or interest has become greater than 270 days past due. Charge-offs of accrued interest receivable are recognized as a reduction to the allowance for loan losses. For the Company’s private education, consumer, and other loan portfolios, the Company does not measure an allowance for credit losses for accrued interest receivables. For private education, consumer, and other loans, the accrual of interest is discontinued when the contractual payment of principal or interest has become 90 days past due. Charge-offs of accrued interest receivable are recognized by reversing interest income. Notes Receivable |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Investments | Investments The Company accounts for purchases and sales of debt securities on a settlement-date basis. When an investment is sold, the cost basis is determined through specific identification of the security sold. The Company classifies its debt securities as either available-for-sale or held-to-maturity. Securities classified as available-for-sale are carried at fair value, with the changes in fair value, net of taxes, carried as a separate component of shareholders’ equity. The amortized cost of debt securities in this classification is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. For available-for-sale debt securities where fair value is less than amortized cost, credit-related impairment, if any, is recognized through an allowance for credit losses and adjusted each period for changes in credit risk. Securities in which the Company has the intent and ability to hold until maturity are classified as held-to-maturity. These securities are carried at amortized cost, with expected future credit losses, if any, recognized through an allowance for credit losses. The Company classifies its residual interest in consumer, private education, and federally insured student loan securitizations as held-to-maturity beneficial interest investments. The Company measures accretable yield initially as the excess of all cash flows expected to be collected attributable to the beneficial interest estimated at the acquisition/transaction date over the initial investment and recognizes interest income over the life of the beneficial interest using the effective interest method. The Company continues to update, over the life of the beneficial interest, the expectation of cash flows to be collected. Beneficial interest investments are evaluated for impairment by comparing the present value of the remaining cash flows as expected to be collected at the initial transaction date (or the last date previously revised) to the present value of the cash flows expected to be collected at the current financial reporting date, both discounted using the same effective rate equal to the current yield used to accrete the beneficial interest. If the present value of remaining cash flows is less than the present value of cash flows expected to be collected and the Company determines a credit loss has occurred, the Company records an allowance for credit losses for the difference. Subsequent favorable changes, if any, decreases the allowance for credit losses. Equity investments with readily determinable fair values are measured at fair value, with changes in the fair value recognized through net income. For equity investments without readily determinable fair values, the Company uses the measurement alternative of cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. The Company uses qualitative factors to identify impairment on its measurement alternative investments. The Company accounts for equity investments over which it has significant influence but not a controlling financial interest using the equity method of accounting. Equity method investments are recorded at cost and subsequently increased or decreased by the amount of the Company’s proportionate share of the net earnings or losses and other comprehensive income of the investee. Equity method investments are evaluated for other-than-temporary impairment using certain impairment indicators such as a series of operating losses of an investee or other factors. These factors may indicate that a decrease in value of the investment has occurred that is other-than-temporary and shall be recognized. In March 2023, the Financial Accounting Standards Board issued new accounting guidance which expands the population of investments for which an investor may elect to apply the proportional amortization method (PAM). The guidance allows an investor in a tax equity investment to elect the PAM for qualifying investments on a tax credit program-by-program basis. The Company elected to early adopt the new accounting guidance as of January 1, 2023 for its tax equity investments in renewable energy sources (solar) tax credit program. There were no investments prior to January 1, 2023 that met the qualification to apply the PAM, thus no cumulative effect adjustment in retained earnings was required. Subsequent to adoption, the Company evaluates each tax equity investment in renewable energy sources (solar) to determine if it meets the qualifications to apply the PAM. For qualifying investments, the Company uses the flow-through method of accounting to account for the related tax credit. The flow-through method requires an investor to amortize the cost of its investment through income tax expense (or benefit) as an offset to the nonrefundable income tax credits and other income tax benefits, such as tax deductions from operating losses of the investment. The Company accounts for its non-qualifying PAM solar investments, voting equity investment in ALLO, and certain real estate investments under the Hypothetical Liquidation at Book Value (HLBV) method of accounting. The HLBV method of accounting is used by the Company for equity method investments when the liquidation rights and priorities as defined by an equity investment agreement differ from what is reflected by the underlying percentage ownership or voting interests. The Company applies the HLBV method using a balance sheet approach. A calculation is prepared at each balance sheet date to determine the amount that the Company would receive if an equity investment entity were to liquidate its net assets and distribute that cash to the investors based on the contractually defined liquidation priorities. The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is the amount the Company recognizes for its share of the earnings or losses from the equity investment for the period. |
Restricted Cash and Restricted Investments | Restricted Cash and Restricted Investments Restricted cash primarily includes amounts for student loan securitizations and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the student loans held as trust assets and when principal and interest is paid on the trust's asset-backed debt securities. Restricted cash also includes collateral deposits with derivative counterparties and third-party clearinghouses. |
Restricted Cash - Due to Customers | Restricted Cash - Due to Customers As a servicer of student loans, the Company collects student loan remittances and subsequently disburses these remittances to the appropriate lending entities. As part of the Company's Education Technology Services and Payments operating segment, the Company collects tuition payments and subsequently remits these payments to the appropriate schools. In addition, Nelnet Insurance Services retains cash it collects on behalf of its third parties to which it has retroceded a portion of its exposure. Cash collected for customers and the related liability are included in the consolidated balance sheets. |
Accounts Receivable | Accounts Receivable Accounts receivable are presented at their net realizable values, which include allowances for doubtful accounts. Allowance estimates are based upon expected loss considering individual customer experience, as well as the age of receivables and likelihood of collection. |
Business Combinations | Business Combinations The Company uses the acquisition method in accounting for acquired businesses. Under the acquisition method, the financial statements reflect the operations of an acquired business starting from the completion of the acquisition. The assets acquired and liabilities assumed are recorded at their respective estimated fair values at the date of acquisition, with the exception of contract assets or liabilities generated from contracts with customers, which are measured as if the Company had originated the acquired contract. Any excess of the purchase price over the estimated fair values of the identifiable net assets acquired is recorded as goodwill. All contingent consideration is measured at fair value on the acquisition date and included in the consideration transferred in the acquisition. Contingent consideration classified as a liability is remeasured to fair value at each reporting date until the contingency is resolved, and changes in fair value are recognized in earnings. |
Goodwill and Intangible Assets | Goodwill The Company reviews goodwill for impairment annually (as of November 30) and whenever triggering events or changes in circumstances indicate its carrying value may not be recoverable. Goodwill is tested for impairment using a fair value approach at the reporting unit level. A reporting unit is the operating segment, or a business one level below that operating segment if discrete financial information is prepared and regularly reviewed by segment management. However, components are aggregated as a single reporting unit if they have similar economic characteristics. The Company tests goodwill for impairment in accordance with applicable accounting guidance. The guidance provides an entity the option to first assess qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not (more than 50%) that the estimated fair value of a reporting unit is less than its carrying amount. If an entity elects to perform a qualitative assessment and determines that an impairment is more likely than not, the entity is then required to perform a quantitative impairment test. If the qualitative assessment determines that an impairment is not more likely than not, no further analysis is required. An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test. For the 2023, 2022, and 2021 annual reviews of goodwill, the Company assessed qualitative factors, with the exception of one reporting unit in 2023, and concluded it was not more likely than not that the fair value of its reporting units were less than their carrying amount. As such, except for the one reporting unit in 2023, no further impairment analysis was required. For the one reporting unit identified in 2023 that the Company concluded it was more likely than not that the fair value was less than its carrying amount, the Company performed a quantitative impairment test and concluded there was an impairment. See note 11 for additional information. Intangible Assets The Company uses estimates to determine the fair value of acquired assets to allocate the purchase price to acquired intangible assets. Such estimates are generally based on estimated future cash flows or cost savings associated with particular assets and are discounted to present value using an appropriate discount rate. The estimates of future cash flows associated with intangible assets are generally prepared using a cost savings method, a lost income method, or an excess return method, as appropriate. In utilizing such methods, management must make certain assumptions about the amount and timing of estimated future cash flows and other economic benefits from the assets, the remaining economic useful life of the assets, and general economic factors concerning the selection of an appropriate discount rate. The Company may also use replacement cost or market comparison approaches to estimate fair value if such methods are determined to be more appropriate. Intangible assets with finite lives are amortized over their estimated lives. Such assets are amortized using a method of amortization that reflects the pattern in which the economic benefits of the intangible asset are consumed or otherwise used up. If that pattern cannot be reliably determined, the Company uses a straight-line amortization method. The Company evaluates the estimated remaining useful lives of purchased intangible assets and whether events or changes in circumstances warrant a revision to the remaining periods of amortization. |
Property and Equipment | Property and Equipment Property and equipment are carried at cost, net of accumulated depreciation. Maintenance and repairs are charged to expense as incurred, and major improvements, including leasehold improvements, are capitalized. Gains and losses from the sale of property and equipment are included in determining net income. The Company uses the straight-line method for recording depreciation over the estimated useful life of the asset. Leasehold improvements are amortized straight-line over the shorter of the lease term or estimated useful life of the asset. The Company evaluates the estimated remaining useful lives of property and equipment and whether events or changes in circumstances warrant a revision to the remaining periods of depreciation. |
Leases | Leases When the Company leases assets from others, it records right-of-use (ROU) assets and lease liabilities. The Company determines if the arrangement is, or contains, a lease at the inception of an arrangement and records the lease in the consolidated financial statements upon lease commencement, which is the date when the underlying asset is made available by the lessor. The Company primarily leases office and data center space and accounts for lease and non-lease components in these contracts together as a single, combined lease component. Leases with an initial term of 12 months or less are not recorded on the balance sheet. The lease expense for these leases is recognized on a straight-line basis over the lease term. All other ROU assets and lease liabilities are recognized based on the present value of lease payments over the lease term at the commencement date. The Company classifies each lease as operating or financing, with the income statement reflecting lease expense for operating leases and amortization/interest expense for financing leases. When the discount rate implicit in the lease cannot be readily determined, the Company uses its incremental borrowing rate. Most leases include one or more options to renew, with renewal terms that can be extended. The exercise of lease renewal options for the majority of leases is at the Company's discretion. Renewal options that the Company is reasonably certain to exercise are included in the lease term. Certain leases include escalating rental payments or rental payments adjusted periodically for inflation. None of the lease agreements include any residual value guarantees, a transfer of title, or a purchase option that is reasonably certain to be exercised. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets The Company reviews its long-lived assets, such as property and equipment, purchased intangibles subject to amortization, and ROU assets, for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. If the carrying amount of an asset exceeds its estimated future cash flows, an impairment charge is recognized by the amount by which the carrying amount of the asset exceeds the fair value of the asset. Assumptions and estimates about future cash flows generated by, remaining useful lives of, and fair values of the Company's intangible and other long-lived assets are complex and subjective. They can be affected by a variety of factors, including external factors such as industry and economic trends, and internal factors such as changes in the Company's business strategy and internal forecasts. Although the Company believes the historical assumptions and estimates used are reasonable and appropriate, different assumptions and estimates could materially impact the reported financial results. |
Fair Value Measurements | Fair Value Measurements The Company uses estimates of fair value in applying various accounting standards for its financial statements. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, the Company's policy in estimating fair values is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value, such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates, and credit spreads, relying first on observable data from active markets. Depending on current market conditions, additional adjustments to fair value may be based on factors such as liquidity, credit, and bid/offer spreads. In some cases fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Transaction costs are not included in the determination of fair value. When possible, the Company seeks to validate the model's output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. Additionally, there may be inherent weaknesses in any calculation technique, and changes in the underlying assumptions used, including discount rates and estimates of future cash flows, could significantly affect the estimates of current or future values. The Company categorizes its fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring assets and liabilities at fair value. Classification is based on the lowest level of input that is significant to the fair value of the instrument. The three levels include: • Level 1: Quoted prices for identical instruments in active markets. The types of financial instruments included in Level 1 are highly liquid instruments with quoted prices. • Level 2: Quoted prices for similar instruments in active markets; quoted prices for identical or similar instruments in markets that are not active; and model-derived valuations whose inputs are observable or whose primary value drivers are observable. • Level 3: Instruments whose primary value drivers are unobservable . Inputs are developed based on the best information available; however, significant judgment is required by management in developing the inputs. |
Revenue Recognition | Revenue Recognition The Company applies the provisions of ASC Topic 606 , Revenue from Contracts with Customers ("Topic 606") , to its fee-based operating segments. The majority of the Company’s revenue earned in its NFS Division, including loan interest and derivative activity earned in its Asset Generation and Management and Nelnet Bank operating segments and reinsurance premiums earned in its Nelnet Insurance Services operating segment, is explicitly excluded from the scope of Topic 606. The Company recognizes revenue under the core principle of Topic 606 to depict the transfer of control of products and services to the Company’s customers in an amount reflecting the consideration to which the Company expects to be entitled. In order to achieve that core principle, the Company applies the following five-step approach: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied. The Company’s contracts with customers often include promises to transfer multiple products and services to a customer. Determining whether products and services are considered distinct performance obligations that should be accounted for separately versus together may require significant judgment. Timing of revenue recognition may differ from the timing of invoicing to customers. The Company records deferred revenue when revenue is received or receivable in advance of the delivery of service. For multi-year contracts, the Company generally invoices customers annually at the beginning of each annual coverage period. Payment terms and conditions vary by contract type, although terms generally include a requirement of payment within 30 to 60 days. In instances where the timing of revenue recognition differs from the timing of invoicing, the Company has determined its contracts do not include a significant financing component. The Company recognizes an asset for the incremental costs of obtaining and/or fulfilling a contract with a customer if it expects the benefit of those costs to be longer than one year. Total capitalized costs to obtain and/or fulfill a contract were immaterial during the periods presented. Additional information related to revenue earned in its Asset Generation and Management, Nelnet Bank, and Nelnet Insurance Services operating segments is provided below. See note 17 for additional information related to the Company's fee-based operating segments. Loan interest income - The Company recognizes loan interest income as earned, net of amortization of loan premiums and deferred origination costs and the accretion of loan discounts. Loan interest income is recognized based upon the expected yield of the loan after giving effect to interest rate reductions resulting from borrower utilization of incentives such as timely payments ("borrower benefits") and other yield adjustments. Loan premiums or discounts, deferred origination costs, and borrower benefits are amortized/accreted over the estimated life of the loans, which includes an estimate of forecasted payments in excess of contractually required payments (the constant prepayment rate). Loan interest on federally insured student loans is paid by the Department or the borrower, depending on the status of the loan at the time of the accrual. The Department makes quarterly interest subsidy payments on certain qualified FFELP loans until the student is required under the provisions of the Higher Education Act to begin repayment. Borrower repayment of FFELP loans normally begins within six months after completion of the borrower's course of study, leaving school, or ceasing to carry at least one-half the normal full-time academic load, as determined by the educational institution. Borrower repayment of PLUS and consolidation loans normally begins within 60 days from the date of loan disbursement. Borrower repayment of private education loans typically begins six months following the borrower's graduation from a qualified institution, and the interest is either paid by the borrower or capitalized annually or at repayment. Repayment of consumer and other loans typically starts upon origination of the loan. The Department provides a special allowance to lenders participating in the FFEL Program. The special allowance rate is accrued based upon either the daily fiscal quarter average of the 13-week Treasury Bill auction rate, the daily fiscal quarter average of the three-month financial commercial paper rate, or the daily fiscal quarter average of the 30-day Average Secured Overnight Financing Rate (SOFR), relative to the yield of the student loan. The constant prepayment rate currently used by the Company to amortize/accrete federally insured loan premiums/discounts is 6% for Stafford loans and 5% for consolidation loans. The Company periodically evaluates the assumptions used to estimate the life of the loans and prepayment rates. In instances where there are changes to the assumptions, amortization/accretion is adjusted on a cumulative basis to reflect the change since the acquisition of the loan. During the fourth quarter of 2022, the Company changed its estimate of the constant prepayment rate on its Stafford loans from 5% to 6% and on its consolidation loans from 4% to 5%, which resulted in a $8.4 million decrease to the Company’s net loan discount balance and a corresponding increase to interest income. During the fourth quarter of 2021, the Company changed its estimate of the constant prepayment rate on its consolidation loans from 3% to 4%, which resulted in a $6.2 million increase to the Company’s net loan discount balance and a corresponding decrease to interest income. The Company also pays the Department an annual 105 basis point rebate fee on Consolidation loans. These rebate fees are netted against loan interest income. Reinsurance premiums earned and related expenses - Premiums are recognized as income, net of applicable retrocessional coverage, over the terms of the related contracts and polices. Unearned premiums represent the portion of premiums written that relate to the unexpired terms of contracts and polices in force. Acquisition costs are incurred when a contract or policy is issued and only the costs directly related to the successful acquisition of new and renewal contract or policies are deferred and amortized over the same period in which the related premiums are earned. Acquisition costs consist principally of commissions and brokerage expenses and are shown net of commissions and brokerage expenses earned on ceded reinsurance. |
Deposits and Interest Expense | Deposits and Interest Expense Deposits are interest-bearing deposits and consist of brokered certificates of deposit (CDs) and retail and other savings deposits and CDs. Retail and other savings deposits include deposits from Educational 529 College Savings (529) and Health Savings plans (HSA), Short Term Federal Investment Trust (STFIT), and commercial and institutional CDs. Union Bank and Trust Company (“Union Bank”), a related party, is the program manager for the Educational 529 College Savings plans and trustee for the STFIT. CDs are accounts that have a stipulated maturity and interest rate. For savings accounts, the depositor may be required to give written notice of any intended withdrawal no less than seven days before the withdrawal is made. Generally, early withdrawal of brokered CDs is prohibited (except in the case of death or legal incapacity). Nelnet Bank has intercompany deposits from Nelnet, Inc. and its subsidiaries. All intercompany deposits held at Nelnet Bank are eliminated for consolidated financial reporting purposes. For bonds and notes payable, interest expense is based upon contractual interest rates, adjusted for the amortization of debt issuance costs and the accretion of discounts. The amortization of debt issuance costs and accretion of discounts are recognized using the effective interest method. |
Transfer of Financial Assets and Extinguishment of Liabilities | Transfer of Financial Assets and Extinguishments of Liabilities The Company accounts for loan sales and debt repurchases in accordance with applicable accounting guidance. If a transfer of loans qualifies as a sale, the Company derecognizes the loan and recognizes a gain or loss as the difference between the carrying basis of the loan sold and the consideration received. The Company from time to time repurchases its outstanding debt and records a gain or loss on the early extinguishment of debt based upon the difference between the carrying amount of the debt and the amount paid to the third party. |
Derivative Accounting | Derivative Accounting All over-the-counter derivative contracts are cleared post-execution at the Chicago Mercantile Exchange (CME), a regulated clearinghouse. Clearing is a process by which a third party, the clearinghouse, steps in between the original counterparties and guarantees the performance of both, by requiring that each post liquid collateral on an initial (initial margin) and mark-to-market (variation margin) basis to cover the clearinghouse’s potential future exposure in the event of default. The CME legally characterizes variation margin payments for over-the-counter derivatives they clear as settlements of the derivatives’ exposure rather than collateral against the exposure. For accounting and presentation purposes, the Company considers variation margin and the corresponding derivative instrument as a single unit of account. As such, variation margin payments are considered in determining the fair value of the centrally cleared derivative portfolio (“settled-to-market”). The Company records settled-to-market derivative contracts on its balance sheet with a fair value of zero due to the payment or receipt of variation margin between the Company and the CME settling the outstanding mark-to-market exposure on such derivatives to a balance of zero on a daily basis, and records the underlying daily changes in the market value of such derivative contracts that result in such receipts or payments on its income statement as realized derivative market value adjustments in “derivative market value adjustments and derivative settlements, net” on the consolidated statements of income. The Company records derivative instruments that are not required to be cleared at a clearinghouse (non-centrally cleared derivatives) in the consolidated balance sheets on a gross basis as either an asset or liability measured at its fair value. Certain non-centrally cleared derivatives are subject to right of offset provisions with counterparties. For these derivatives, the Company does not offset fair value amounts executed with the same counterparty under a master netting arrangement. In addition, the Company does not offset fair value amounts recognized for derivative instruments with respect to the right to reclaim cash collateral (a receivable) or the obligation to return cash collateral (a payable). The Company determines the fair value for its non-centrally cleared derivative instruments using either (i) pricing models that consider current market conditions and the contractual terms of the derivative instrument; or (ii) counterparty valuations. The factors that impact the fair value of the Company’s derivatives include interest rates, time value, forward interest rate curve, and volatility factors. Management has structured all of the Company's derivative transactions with the intent that each is economically effective; however, the Company's derivative instruments do not qualify for hedge accounting in the consolidated financial statements. As a result, the change in market value of derivative instruments is reported in current period earnings. Changes or shifts in the forward yield curve can significantly impact the valuation of the Company’s derivatives, and therefore impact the results of operations of the Company. The changes in fair value of derivative instruments, as well as the settlement payments made on such derivatives, are included in “derivative market value adjustments and derivative settlements, net” on the consolidated statements of income. |
Income Taxes | Income Taxes Income taxes are accounted for under the asset and liability method. Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases and operating loss and tax credit carry forwards. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date. The Company uses the deferred method of accounting for its credits related to state tax incentives and investments that generate investment tax credits. The investment tax credits are recognized as a reduction to the related asset. |
Compensation Expense for Stock Based Awards | Compensation Expense for Stock Based Awards The Company has a restricted stock plan that is intended to provide incentives to attract, retain, and motivate employees in order to achieve long term growth and profitability objectives. The restricted stock plan provides for the grant to eligible employees of awards of restricted shares of Class A common stock. The fair value of restricted stock awards is determined on the grant date based on the Company's stock price and is amortized to compensation cost over the related vesting periods, which range up to ten years. For those awards with only service conditions that have graded vesting schedules, the Company recognizes compensation expense on a straight-line basis over the requisite service period for each separately vesting portion of the award, as if the award was, in substance, multiple awards. Holders of restricted stock are entitled to receive dividends from the date of grant whether or not vested. The Company accounts for forfeitures as they occur. The Company also has a directors stock compensation plan pursuant to which directors can elect to receive their annual retainer fees in the form of fully vested shares of Class A common stock, and also elect to defer receipt of such shares until the termination of their service on the board of directors. The fair value of grants under this plan is determined on the grant date based on the Company's stock price, and is expensed over the board member's annual service period. |
Translation of Foreign Currencies | Translation of Foreign Currencies The Company’s foreign subsidiaries use the local currency of the countries in which they are located as their functional currency. Accordingly, assets and liabilities are translated into U.S. dollars (the Company’s reporting currency) using the exchange rates in effect on the consolidated balance sheet dates. Equity accounts are translated at historical rates, except for the change in retained earnings during the year, which is the result of the income statement translation process. Revenue and expense accounts are translated using the weighted average exchange rate during the period. The cumulative translation adjustments associated with the net assets of foreign subsidiaries are recorded in accumulated other comprehensive earnings in the consolidated statements of shareholders’ equity. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies and Practices (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Solar Investment VIEs Not Consolidated | The following table presents a summary of solar investment VIEs that the Company has not consolidated: As of December 31, 2023 2022 Investment carrying amount, excluding third-party investors $ (65,266) (36,863) Tax credits subject to recapture 153,699 88,692 Unfunded capital and other commitments 82,046 33,456 Company’s maximum exposure to loss $ 170,479 85,285 |
Loans and Accrued Interest Re_2
Loans and Accrued Interest Receivable and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Receivables [Abstract] | |
Loans Receivable and Accrued Interest Receivable | Loans and accrued interest receivable consisted of the following: As of As of December 31, 2023 December 31, 2022 Non-Nelnet Bank: Federally insured loans: Stafford and other $ 2,936,174 3,389,178 Consolidation 8,750,033 10,177,295 Total 11,686,207 13,566,473 Private education loans 277,320 252,383 Consumer and other loans 85,935 350,915 Non-Nelnet Bank loans 12,049,462 14,169,771 Nelnet Bank: Federally insured loans (a) — 65,913 Private education loans 360,520 353,882 Consumer and other loans 72,352 — Nelnet Bank loans 432,872 419,795 Accrued interest receivable 764,385 816,864 Loan discount, net of unamortized loan premiums and deferred origination costs (33,872) (30,714) Allowance for loan losses: Non-Nelnet Bank: Federally insured loans (68,453) (83,593) Private education loans (15,750) (15,411) Consumer and other loans (11,742) (30,263) Non-Nelnet Bank allowance for loan losses (95,945) (129,267) Nelnet Bank: Federally insured loans (a) — (170) Private education loans (3,347) (2,390) Consumer and other loans (5,351) — Nelnet Bank allowance for loan losses (8,698) (2,560) $ 13,108,204 15,243,889 (a) During 2023, Nelnet Bank sold its federally insured loan portfolio to the Company’s AGM (non-Nelnet Bank) operating segment. The following table summarizes the allowance for loan losses as a percentage of the ending loan balance for each of the Company's loan portfolios. As of As of December 31, 2023 December 31, 2022 Non-Nelnet Bank: Federally insured loans (a) 0.59 % 0.62 % Private education loans 5.68 % 6.11 % Consumer and other loans 13.66 % 8.62 % Nelnet Bank: Federally insured loans (a) — 0.26 % Private education loans 0.93 % 0.68 % Consumer and other loans 7.40 % — (a) As of December 31, 2023 and 2022, the allowance for loan losses as a percent of the risk sharing component of federally insured loans not covered by the federal guaranty for non-Nelnet Bank was 21.8% and 22.4%, respectively, and for Nelnet Bank was 10.3% as of December 31, 2022. |
Allowance for Loan Losses | The following table presents the activity in the allowance for loan losses by portfolio segment. 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 Year ended December 31, 2023 Non-Nelnet Bank: Federally insured loans $ 83,593 4,303 (19,593) — 6 144 68,453 Private education loans 15,411 2,865 (3,306) 780 — — 15,750 Consumer and other loans 30,263 49,807 (12,467) 1,474 — (57,335) 11,742 Nelnet Bank: Federally insured loans 170 (14) (12) — — (144) — Private education loans 2,390 2,171 (1,214) — — — 3,347 Consumer and other loans — 6,245 (1,775) 881 — — 5,351 $ 131,827 65,377 (38,367) 3,135 6 (57,335) 104,643 Year ended December 31, 2022 Non-Nelnet Bank: Federally insured loans $ 103,381 3,731 (24,181) — 662 — 83,593 Private education loans 16,143 2,487 (3,879) 656 — 4 15,411 Consumer and other loans 6,481 38,383 (3,725) 592 — (11,468) 30,263 Nelnet Bank: Federally insured loans 268 (93) (5) — — — 170 Private education loans 840 1,860 (306) — — (4) 2,390 $ 127,113 46,368 (32,096) 1,248 662 (11,468) 131,827 Year ended December 31, 2021 Non-Nelnet Bank: Federally insured loans $ 128,590 (7,343) (21,139) — 3,273 — 103,381 Private education loans 19,529 (1,333) (2,476) 721 — (298) 16,143 Consumer and other loans 27,256 (4,544) (5,123) 824 — (11,932) 6,481 Nelnet Bank: Federally insured loans — 268 — — — — 268 Private education loans 323 526 (4) — — (5) 840 $ 175,698 (12,426) (28,742) 1,545 3,273 (12,235) 127,113 (a) During the years ended December 31, 2023, 2022, and 2021 the Company acquired $3.3 million (par value), $12.0 million (par value), and $224.1 million (par value), respectively, of federally insured rehabilitation loans that met the definition of PCD loans when they were purchased by the Company. |
Net Charge-offs as a Percentage of Average Loans | The following table summarizes net charge-offs as a percentage of average loans for each of the Company's loan portfolios. Year ended December 31, 2023 2022 2021 Non-Nelnet Bank: Federally insured loans 0.15 % 0.15 % 0.11 % Private education loans 0.99 % 1.18 % 0.55 % Consumer and other loans 5.67 % 2.05 % 6.21 % Nelnet Bank: Federally insured loans 0.02 % 0.01 % 0.00 % Private education loans 0.34 % 0.10 % 0.00 % Consumer and other loans 2.64 % — — |
Loan Status and Delinquencies | Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs. The following table presents the Company’s loan status and delinquency amounts. As of December 31, 2023 2022 2021 Federally insured loans - Non-Nelnet Bank: Loans in-school/grace/deferment (a) $ 522,304 4.5 % $ 637,919 4.7 % $ 829,624 4.9 % Loans in forbearance (b) 979,588 8.4 1,103,181 8.1 1,118,667 6.5 Loans in repayment status: Loans current 8,416,624 82.6 % 10,173,859 86.0 % 12,847,685 84.9 % Loans delinquent 31-60 days (c) 377,108 3.7 415,305 3.5 895,656 5.9 Loans delinquent 61-90 days (c) 254,553 2.5 253,565 2.2 352,449 2.3 Loans delinquent 91-120 days (c) 187,145 1.9 180,029 1.5 251,075 1.7 Loans delinquent 121-270 days (c) 685,829 6.7 534,410 4.5 592,449 3.9 Loans delinquent 271 days or greater (c)(d) 263,056 2.6 268,205 2.3 203,442 1.3 Total loans in repayment 10,184,315 87.1 100.0 % 11,825,373 87.2 100.0 % 15,142,756 88.6 100.0 % Total federally insured loans 11,686,207 100.0 % 13,566,473 100.0 % 17,091,047 100.0 % Accrued interest receivable 757,713 808,150 784,716 Loan discount, net of unamortized premiums and deferred origination costs (28,963) (35,468) (28,309) Allowance for loan losses (68,453) (83,593) (103,381) Total federally insured loans and accrued interest receivable, net of allowance for loan losses $ 12,346,504 $ 14,255,562 $ 17,744,073 Private education loans - Non-Nelnet Bank: Loans in-school/grace/deferment (a) $ 9,475 3.4 % $ 12,756 5.1 % $ 9,661 3.2 % Loans in forbearance (b) 2,529 0.9 2,017 0.8 3,601 1.2 Loans in repayment status: Loans current 257,639 97.1 % 232,539 97.9 % 280,457 98.0 % Loans delinquent 31-60 days (c) 3,395 1.3 2,410 1.0 2,403 0.8 Loans delinquent 61-90 days (c) 1,855 0.7 767 0.3 976 0.3 Loans delinquent 91 days or greater (c) 2,427 0.9 1,894 0.8 2,344 0.9 Total loans in repayment 265,316 95.7 100.0 % 237,610 94.1 100.0 % 286,180 95.6 100.0 % Total private education loans 277,320 100.0 % 252,383 100.0 % 299,442 100.0 % Accrued interest receivable 2,653 2,146 1,960 Loan discount, net of unamortized premiums (8,037) (38) (1,123) Allowance for loan losses (15,750) (15,411) (16,143) Total private education loans and accrued interest receivable, net of allowance for loan losses $ 256,186 $ 239,080 $ 284,136 Consumer and other loans - Non-Nelnet Bank: Loans in deferment $ 146 0.2 % $ 109 0.0 % $ 43 0.1 % Loans in repayment status: Loans current 81,195 94.6 % 346,812 98.9 % 49,697 97.0 % Loans delinquent 31-60 days (c) 2,035 2.4 1,906 0.5 414 0.8 Loans delinquent 61-90 days (c) 1,189 1.4 764 0.2 322 0.6 Loans delinquent 91 days or greater (c) 1,370 1.6 1,324 0.4 825 1.6 Total loans in repayment 85,789 99.8 100.0 % 350,806 100.0 100.0 % 51,258 99.9 100.0 % Total consumer and other loans 85,935 100.0 % 350,915 100.0 % 51,301 100.0 % Accrued interest receivable 861 3,658 396 Loan discount, net of unamortized premiums (2,474) (588) 913 Allowance for loan losses (11,742) (30,263) (6,481) Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 72,580 $ 323,722 $ 46,129 As of December 31, 2023 2022 2021 Federally insured loans - Nelnet Bank (e): Loans in-school/grace/deferment (a) $ 241 0.4 % $ 330 0.4 % Loans in forbearance (b) 981 1.5 1,057 1.2 Loans in repayment status: Loans current 63,225 97.8 % 85,599 98.8 % Loans delinquent 30-59 days (c) 436 0.7 816 1.0 Loans delinquent 60-89 days (c) 466 0.7 — — Loans delinquent 90-119 days (c) 222 0.3 — — Loans delinquent 120-270 days (c) 183 0.3 209 0.2 Loans delinquent 271 days or greater (c)(d) 159 0.2 — — Total loans in repayment 64,691 98.1 100.0 % 86,624 98.4 100.0 % Total federally insured loans 65,913 100.0 % 88,011 100.0 % Accrued interest receivable 1,758 1,216 Loan premium 20 26 Allowance for loan losses (170) (268) Total federally insured loans and accrued interest receivable, net of allowance for loan losses $ 67,521 $ 88,985 Private education loans - Nelnet Bank (e): Loans in-school/grace/deferment (a) $ 25,957 7.2 % $ 11,580 3.3 % $ 150 0.1 % Loans in forbearance (b) 1,285 0.4 864 0.2 460 0.3 Loans in repayment status: Loans current 331,580 99.4 % 340,830 99.8 % 169,157 99.9 % Loans delinquent 30-59 days (c) 839 0.3 167 0.1 51 0.0 Loans delinquent 60-89 days (c) 253 0.1 32 0.0 — — Loans delinquent 90 days or greater (c) 606 0.2 409 0.1 72 0.1 Total loans in repayment 333,278 92.4 100.0 % 341,438 96.5 100.0 % 169,280 99.6 100.0 % Total private education loans 360,520 100.0 % 353,882 100.0 % 169,890 100.0 % Accrued interest receivable 2,023 1,152 264 Deferred origination costs, net of unaccreted discount 5,608 5,360 2,560 Allowance for loan losses (3,347) (2,390) (840) Total private education loans and accrued interest receivable, net of allowance for loan losses $ 364,804 $ 358,004 $ 171,874 Consumer and other loans - Nelnet Bank (e): Loans in deferment $ 103 0.1 % Loans in repayment status: Loans current 69,584 96.3 % Loans delinquent 30-59 days (c) 1,075 1.5 Loans delinquent 60-89 days (c) 941 1.3 Loans delinquent 90 days or greater (c) 649 0.9 Total loans in repayment 72,249 99.9 100.0 % Total consumer and other loans 72,352 100.0 % Accrued interest receivable 575 Loan discount (6) Allowance for loan losses (5,351) Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 67,570 (a) Loans for borrowers who still may be attending school or engaging in other permitted educational activities and are not yet required to make payments on the loans, e.g. , residency periods for medical students or a grace period for bar exam preparation for law students. (b) Loans for borrowers who have temporarily ceased making full payments due to hardship or other factors, according to a schedule approved by the servicer consistent with the established loan program servicing procedures and policies. (c) The period of delinquency is based on the number of days scheduled payments are contractually past due and relate to repayment loans, that is, receivables not charged off, and not in school, grace, deferment, or forbearance. (d) A portion of loans included in loans delinquent 271 days or greater includes loans in claim status, which are loans that have gone into default and have been submitted to the guaranty agency for reinsurance. (e) For the periods presented for Nelnet Bank, the delinquency bucket periods conform with the delinquency bucket periods reflected in Nelnet Bank's Call Reports filed with the Federal Deposit Insurance Corporation. |
Loans Receivable Credit Quality Indicators | The following tables highlight the gross principal balance of Nelnet Bank's portfolios, by year of origination, stratified by FICO score at the time of origination. Nelnet Bank Private Education Loans Loan balance as of December 31, 2023 2023 2022 2021 2020 Total FICO at origination: Less than 705 $ 3,840 5,495 4,647 386 14,368 705 - 734 9,534 21,961 8,805 525 40,825 735 - 764 8,648 32,969 14,910 1,358 57,885 765 - 794 5,776 52,045 27,221 1,374 86,416 Greater than 794 15,057 77,996 58,695 5,226 156,974 No FICO score available or required (a) 4,052 — — — 4,052 $ 46,907 190,466 114,278 8,869 360,520 Loan balance as of December 31, 2022 2022 2021 2020 Total FICO at origination: Less than 705 $ 5,898 5,389 348 11,635 705 - 734 23,392 10,543 542 34,477 735 - 764 35,456 16,686 1,473 53,615 765 - 794 57,141 31,035 1,622 89,798 Greater than 794 87,959 70,135 6,263 164,357 $ 209,846 133,788 10,248 353,882 Nelnet Bank Consumer and Other Loans Loan balance as of December 31, 2023 2023 2022 2021 Total FICO at origination: Less than 720 $ 21,412 — — 21,412 720 - 769 33,571 51 — 33,622 Greater than 769 16,484 109 — 16,593 No FICO score available or required (a) 386 284 55 725 $ 71,853 444 55 72,352 (a) Loans with no FICO score available or required refers to loans issued to borrowers for which the Company cannot obtain a FICO score or are not required to under a special purpose credit program. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk. The following table presents the amortized cost of the Company's private education, consumer, and other loans by loan status and delinquency amount as of December 31, 2023 based on year of origination. Effective July 1, 2010, no new loan originations can be made under the FFEL Program and all new federal loan originations must be made under the Federal Direct Loan Program. As such, all the Company’s federally insured loans were originated prior to July 1, 2010. 2023 2022 2021 2020 2019 Prior years Total Private education loans - Non-Nelnet Bank: Loans in-school/grace/deferment $ — 832 4,029 779 1,279 2,556 9,475 Loans in forbearance — 83 26 603 324 1,493 2,529 Loans in repayment status: Loans current 211 4,450 4,928 45,341 38,213 164,496 257,639 Loans delinquent 31-60 days — 6 102 424 232 2,631 3,395 Loans delinquent 61-90 days — 7 57 218 113 1,460 1,855 Loans delinquent 91 days or greater — — 23 70 — 2,334 2,427 Total loans in repayment 211 4,463 5,110 46,053 38,558 170,921 265,316 Total private education loans $ 211 5,378 9,165 47,435 40,161 174,970 277,320 Accrued interest receivable 2,653 Loan discount, net of unamortized premiums (8,037) Allowance for loan losses (15,750) Total private education loans and accrued interest receivable, net of allowance for loan losses $ 256,186 Gross charge-offs - year ended December 31, 2023 $ — 39 10 297 615 2,345 3,306 Consumer and other loans - Non-Nelnet Bank: Loans in deferment $ 146 — — — — — 146 Loans in repayment status: Loans current 74,677 5,170 590 330 386 42 81,195 Loans delinquent 31-60 days 764 973 291 — 5 2 2,035 Loans delinquent 61-90 days 329 759 73 25 3 — 1,189 Loans delinquent 91 days or greater 424 841 79 6 18 2 1,370 Total loans in repayment 76,194 7,743 1,033 361 412 46 85,789 Total consumer and other loans $ 76,340 7,743 1,033 361 412 46 85,935 Accrued interest receivable 861 Loan discount, net of unamortized premiums (2,474) Allowance for loan losses (11,742) Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 72,580 Gross charge-offs - year ended December 31, 2023 $ 3,995 6,850 830 36 292 464 12,467 Private education loans - Nelnet Bank (a): Loans in-school/grace/deferment $ 14,410 10,315 708 524 — — 25,957 Loans in forbearance 230 786 269 — — — 1,285 Loans in repayment status: Loans current 31,940 178,700 112,619 8,321 — — 331,580 Loans delinquent 30-59 days 147 248 420 24 — — 839 Loans delinquent 60-89 days 49 131 73 — — — 253 Loans delinquent 90 days or greater 131 286 189 — — — 606 Total loans in repayment 32,267 179,365 113,301 8,345 — — 333,278 Total private education loans $ 46,907 190,466 114,278 8,869 — — 360,520 Accrued interest receivable 2,023 Deferred origination costs, net of unaccreted discount 5,608 Allowance for loan losses (3,347) Total private education loans and accrued interest receivable, net of allowance for loan losses $ 364,804 Gross charge-offs - year ended December 31, 2023 $ 23 869 285 37 — — 1,214 2023 2022 2021 2020 2019 Prior years Total Consumer and other loans - Nelnet Bank (a): Loans in deferment $ 103 — — — — — 103 Loans in repayment status: Loans current 69,085 444 55 — — — 69,584 Loans delinquent 30-59 days 1,075 — — — — — 1,075 Loans delinquent 60-89 days 941 — — — — — 941 Loans delinquent 90 days or greater 649 — — — — — 649 Total loans in repayment 71,750 444 55 — — — 72,249 Total consumer and other loans $ 71,853 444 55 — — — 72,352 Accrued interest receivable 575 Loan discount (6) Allowance for loan losses (5,351) Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 67,570 Gross charge-offs - year ended December 31, 2023 $ 1,775 — — — — — 1,775 (a) For the periods presented for Nelnet Bank, the delinquency bucket periods conform with the delinquency bucket periods reflected in Nelnet Bank's Call Reports filed with the Federal Deposit Insurance Corporation. |
Bonds and Notes payable (Tables
Bonds and Notes payable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Debt Disclosure [Abstract] | |
Outstanding Debt Obligations | The following tables summarize the Company’s outstanding debt obligations by type of instrument: As of December 31, 2023 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 $ 9,552,667 5.45% - 7.47% 8/26/30 - 9/25/69 Bonds and notes based on auction 87,360 0.00% - 6.45% 3/22/32 - 11/26/46 Total FFELP variable-rate bonds and notes 9,640,027 Fixed-rate bonds and notes issued in FFELP loan asset-backed 471,427 1.42% - 3.45% 10/25/67 - 8/27/68 FFELP loan warehouse facilities 1,398,485 5.41% - 5.70% 4/2/25 / 5/22/25 Consumer loan warehouse facility 23,691 5.70% 11/14/25 Variable-rate bonds and notes issued in private education loan asset-backed securitizations 80,393 6.90% / 7.57% 6/25/49 / 11/25/53 Fixed-rate bonds and notes issued in private education loan asset-backed securitizations 80,130 5.35% / 7.15% 12/28/43 / 11/25/53 Unsecured line of credit — — 9/22/26 Participation agreements 10,063 5.58% - 6.08% 3/12/24 / 5/4/24 Repurchase agreement 208,164 6.35% - 6.81% 1/22/24 - 12/20/24 Other - due to related party 5,778 5.00% - 6.05% 3/1/24 - 11/15/30 11,918,158 Discount on bonds and notes payable and debt issuance costs (89,765) Total $ 11,828,393 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 securitizations 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 |
Long-term Debt Maturities | Bonds and notes outstanding as of December 31, 2023 are due in varying amounts as shown below. 2024 $ 218,505 2025 1,422,176 2026 — 2027 275 2028 3,754 2029 and thereafter 10,273,448 $ 11,918,158 |
Outstanding Line of Credit Facilities | The following table summarizes the Company's warehouse facilities as of December 31, 2023. Type of loans Maximum financing amount Amount outstanding Amount available Expiration of liquidity provisions Final maturity date Advance rate Advanced as equity support FFELP $ 1,250,000 1,016,023 233,977 5/22/2024 5/22/2025 note (a) $ 70,739 FFELP 432,000 382,462 49,538 4/2/2024 4/2/2025 92 % 31,955 $ 1,682,000 1,398,485 283,515 $ 102,694 Consumer 200,000 23,691 176,309 11/14/2024 11/14/2025 70 % 10,352 (a) This facility has a static advance rate until the expiration date of the liquidity provisions. The maximum advance rates for this facility are 90% to 96%, and the minimum advance rates are 84% to 90%. In the event the liquidity provisions are not extended, the valuation agent has the right to perform a one-time mark to market on the underlying loans funded in this facility, subject to a floor. The loans would then be funded at this new advance rate until the final maturity date of the facility. |
Debt Repurchased | The following table summarizes the Company's repurchases of its own debt. Gains/losses recorded by the Company from the repurchase of debt are included in “other, net” in "other income (expense)" on the Company’s consolidated statements of income. Year ended December 31, 2023 2022 2021 Purchase price $ (5,112) (67,081) (407,487) Par value 5,941 69,133 406,875 Remaining unamortized cost of issuance (14) (821) (6,163) Gain (loss), net $ 815 1,231 (6,775) |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Notional Amounts on Outstanding Derivatives | The following table summarizes the Company’s 1:3 Basis Swaps outstanding: As of December 31, 2023 2022 Maturity Notional amount Notional amount 2023 $ — 750,000 2024 1,750,000 1,750,000 2026 1,150,000 1,150,000 2027 250,000 250,000 $ 3,150,000 3,900,000 The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income. As of December 31, 2023 As of December 31, 2022 (a) Maturity Notional amount Weighted average fixed rate paid by the Company (b) Notional amount Weighted average fixed rate paid by the Company (b) 2024 $ — — % $ 2,000,000 0.35 % 2026 200,000 3.92 500,000 1.02 2028 50,000 3.56 — — 2029 (c) 50,000 3.17 — — 2030 (d) 100,000 3.63 — — 2031 — — 100,000 1.53 2032 — — 200,000 2.92 $ 400,000 3.71 % $ 2,800,000 0.70 % (a) On March 15, 2023, to minimize the Company's exposure to market volatility and increase liquidity, the Company terminated its entire derivative portfolio hedging loans earning fixed rate floor income ($2.8 billion in notional amount of derivatives) prior to their maturity. Through March 15, 2023, the Company had received cash or had a receivable from the clearinghouse related to variation margin equal to the fair value of the $2.8 billion notional amount of fixed rate floor derivatives as of March 15, 2023 of $183.2 million, which included $19.1 million related to current period settlements. In 2022, the Company terminated $2.4 billion in notional amount of derivatives prior to their maturity for net proceeds of $91.8 million. (b) For all interest rate derivatives, the Company receives payments based on SOFR, the majority of which reset quarterly. (c) This $50 million notional amount derivative has a forward effective start date in January 2026. (d) A $50 million notional amount derivative maturing in 2030 has a forward effective start date in November 2025. The following table summarizes the outstanding derivative instruments used by Nelnet Bank to hedge exposure to variability in cash flows related to variable rate intercompany deposits. As of December 31, 2023 Maturity Notional amount Weighted average fixed rate paid by the Company (a) 2028 $ 40,000 3.33 % 2030 (b) 50,000 3.06 2032 (c) 25,000 4.03 2033 (d) 25,000 3.90 $ 140,000 3.46 % (a) For all interest rate derivatives, the Company receives payments based on SOFR that reset monthly or quarterly. (b) These $25 million notional amount derivatives have forward effective start dates in April 2026 and May 2026, respectively. (c) This $25 million notional amount derivative has a forward effective start date in February 2027. (d) This $25 million notional amount derivative has a forward effective start date in November 2025. |
Derivative Impact on Statement of Income | The following table summarizes the components of "derivative market value adjustments and derivative settlements, net" included in the consolidated statements of income. Year ended December 31, 2023 2022 2021 Settlements: 1:3 basis swaps $ 1,544 (206) (1,638) Interest rate swaps - floor income hedges 23,044 33,149 (19,729) Interest rate swaps - Nelnet Bank 484 — — Total settlements - income (expense) 25,072 32,943 (21,367) Change in fair value: 1:3 basis swaps (567) 2,262 5,027 Interest rate swaps - floor income hedges (39,683) 229,429 87,786 Interest rate swaps - Nelnet Bank (1,523) — — Total change in fair value - (expense) income (41,773) 231,691 92,813 Derivative market value adjustments and derivative settlements, net - (expense) income $ (16,701) 264,634 71,446 |
Investments and Notes Receiva_2
Investments and Notes Receivable (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Investments [Abstract] | |
Investments and Notes Receivable | A summary of the Company's “restricted investments” and “investments and notes receivable” follows: As of December 31, 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 Restricted investments (at fair value): FFELP loan asset-backed securities $ 16,993 1,069 (93) 17,969 — — — — Investments (at fair value): Available-for-sale asset-backed securities Non-Nelnet Bank: FFELP loan $ 271,479 4,883 (5,393) 270,969 463,861 3,498 (11,105) 456,254 Private education loan (a) 281,791 — (28,874) 252,917 335,903 — (29,438) 306,465 Other debt securities 41,693 2,020 (1,275) 42,438 158,589 151 (3,790) 154,950 Total Non-Nelnet Bank 594,963 6,903 (35,542) 566,324 958,353 3,649 (44,333) 917,669 Nelnet Bank: FFELP loan (b) 321,638 4,508 (2,296) 323,850 349,855 955 (8,853) 341,957 Other debt securities 49,284 117 (1,641) 47,760 133,422 18 (4,029) 129,411 Total Nelnet Bank 370,922 4,625 (3,937) 371,610 483,277 973 (12,882) 471,368 Total available-for-sale asset-backed securities $ 965,885 11,528 (39,479) 937,934 1,441,630 4,622 (57,215) 1,389,037 Equity securities 50,907 39,082 Total investments at fair value 988,841 1,428,119 Other Investments and Notes Receivable (not measured at fair value): Held to maturity investments Non-Nelnet Bank: Debt securities (c) 4,700 18,554 Nelnet Bank: FFELP loan asset-backed securities (b) 158,038 — Other debt securities — 220 Total Nelnet Bank 158,038 220 Total held to maturity investments 162,738 18,774 Venture capital and funds: Measurement alternative (d) 194,084 160,052 Equity method 91,464 89,332 Total venture capital and funds 285,548 249,384 Real estate: Equity method 103,811 80,364 Investment in ALLO: Voting interest/equity method (e) 10,693 67,538 Preferred membership interest (f) 155,047 145,926 Total investment in ALLO 165,740 213,464 Beneficial interest in loan securitizations (g): Consumer loans 134,113 39,249 Private education loans 68,372 75,261 Federally insured student loans 22,594 24,228 Total beneficial interest in loan securitizations 225,079 138,738 Solar (h) (121,779) (55,448) Notes receivable 53,747 31,106 Tax liens, affordable housing, and other 7,243 7,416 Total investments (not measured at fair value) 882,127 683,798 Total investments and notes receivable $ 1,870,968 $ 2,111,917 (a) In December 2020, Wells Fargo announced the sale of its approximately $10 billion portfolio of private education loans. The Company entered into a joint venture with other investors to acquire the loans. Under the terms of the joint venture agreements, the Company serves as the sponsor and administrator for the loan securitizations completed by the joint venture to permanently finance the loans acquired. As sponsor of the loan securitizations, the Company is required to provide a certain level of risk retention, and has purchased bonds issued in such securitizations to satisfy this requirement. The bonds purchased to satisfy the risk retention requirement are included in the above table and as of December 31, 2023, the par value and fair value of these securities was $282.2 million and $252.9 million, respectively. The Company must retain these investment securities until the latest of (i) two years from the closing date of the securitization, (ii) the date the aggregate outstanding principal balance of the loans in the securitization is 33% or less of the initial loan balance, and (iii) the date the aggregate outstanding principal balance of the bonds is 33% or less of the aggregate initial outstanding principal balance of the bonds, at which time the Company can sell its investment securities (bonds) to a third party. A portion of the private education loan asset-backed securities were subject to a repurchase agreement with third parties, as discussed in note 4 under “Repurchase Agreements.” As of December 31, 2023, the par value and fair value of securities subject to the participation was $155.9 million and $134.1 million, respectively. (b) On March 31, 2023, securities at Nelnet Bank with a fair value of $149.2 million were transferred from available-for-sale to held to maturity. The securities were reclassified at fair value at the time of the transfer, and such transfer represented a non-cash transaction. Accumulated other comprehensive income as of March 31, 2023 included pre-tax unrealized losses of $3.7 million related to the transfer. These unrealized losses are being amortized, consistent with the amortization of any discounts on such securities, over the remaining lives of the respective securities as an adjustment of yield. (c) On March 31, 2023, certain Non-Nelnet Bank debt securities were transferred from held to maturity to available-for-sale. (d) The Company has an investment in Agile Sports Technologies, Inc. (doing business as “Hudl”) that is included in “venture capital and funds” in the above table. During the first quarter of 2023, the Company acquired additional ownership interests in Hudl for $31.5 million from existing Hudl investors. This transaction was not considered an observable market transaction (not orderly) because it was not subject to customary marketing activities. Accordingly, the Company did not adjust its carrying value of its Hudl investment to the transaction value. As of December 31, 2023, the carrying amount of the Company's investment in Hudl is $165.5 million. David S. Graff, who has served on the Company's Board of Directors since May 2014, is CEO, co-founder, and a director of Hudl. The Company's equity ownership interests in Hudl consist of preferred stock with certain liquidation preferences that are considered substantive. Accordingly, for accounting purposes, the Company's equity ownership interests are not considered in-substance common stock and the Company is accounting for its equity investment in Hudl using the measurement alternative method. (e) During the first quarter of 2023, the Company contributed $8.4 million of additional equity in ALLO. As a result of this equity contribution, the Company's voting membership interests percentage in ALLO did not materially change. The Company recognized losses under the HLBV method of accounting on its ALLO voting membership interests investment of $65.3 million, $68.0 million, and $42.1 million during the years ended December 31, 2023, 2022, and 2021, respectively. Losses from the Company's investment in ALLO are included in "other, net" in "other income (expense)" on the consolidated statements of income. (f) As of December 31, 2023, the outstanding preferred membership interests of ALLO held by the Company was $155.0 million. Accrued and unpaid preferred return capitalizes to preferred membership interests annually on each December 31. The preferred membership interests of ALLO held by the Company currently earn a preferred annual return of 6.25% that will increase to 10.00% in April 2024. The Company recognized income on its ALLO preferred membership interests of $9.1 million, $8.6 million, and $8.4 million during the years ended December 31, 2023, 2022, and 2021, respectively. This income is included in "other, net" in "other income (expense)" on the consolidated statements of income. (g) The Company has partial ownership in certain consumer, private education, and federally insured student loan securitizations. As of the latest remittance reports filed by the various trusts prior to or as of December 31, 2023, the Company's ownership correlates to approximately $910 million, $515 million, and $335 million of consumer, private education, and federally insured student loans, respectively, included in these securitizations. (h) The solar investment balance as of December 31, 2023 represents the sum of total tax credits earned on solar projects placed-in-service through December 31, 2023 and the calculated HLBV net losses being larger than the total investment contributions made by the Company on such projects. |
Investments Classified by Contractual Maturity Date | The following table presents, by remaining contractual maturity, the amortized cost and fair value of debt securities as of December 31, 2023: As of December 31, 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 Restricted Investments: FFELP loan $ — — — 16,993 16,993 Fair value — — — 17,969 17,969 Non-Nelnet Bank: FFELP loan — 15,025 27,366 229,088 271,479 Private education loan — — — 281,791 281,791 Other debt securities — 99 — 41,594 41,693 Total Non-Nelnet Bank — 15,124 27,366 552,473 594,963 Fair value — 14,821 26,502 525,001 566,324 Nelnet Bank: FFELP loan 64,623 12,671 58,903 185,441 321,638 Other debt securities — 20,499 11,862 16,923 49,284 Total Nelnet Bank 64,623 33,170 70,765 202,364 370,922 Fair value 64,596 32,693 70,255 204,066 371,610 Total available-for-sale asset-backed securities at amortized cost $ 64,623 48,294 98,131 771,830 982,878 Total available-for-sale asset-backed securities at fair value $ 64,596 47,514 96,757 747,036 955,903 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 — 3,452 1,524 153,062 158,038 Other debt securities — — — — — Total Nelnet Bank — 3,452 1,524 153,062 158,038 Fair value — 3,506 1,539 153,877 158,922 Total held-to-maturity investments at amortized cost $ 4,700 3,452 1,524 153,062 162,738 Total held-to-maturity investments at fair value $ 4,700 3,506 1,539 153,877 163,622 |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value | The following table presents securities classified as available-for-sale that have gross unrealized losses at December 31, 2023 and the fair value of such securities as of December 31, 2023. These securities are segregated between investments that had been in a continuous unrealized loss position for less than twelve months and twelve months or more, based on the point in time that the fair value declined below the amortized cost basis. All securities in the table below have been evaluated to determine if a credit loss exists. As part of that assessment, the Company concluded it currently has the intent and ability to retain these investments, and none of the unrealized losses were due to credit losses. As of December 31, 2023 Unrealized loss position less than 12 months Unrealized loss position 12 months or more Total Unrealized loss Fair value Unrealized loss Fair value Unrealized loss Fair value Available-for-sale asset-backed securities Restricted Investments: FFELP loan $ (93) 2,392 — — (93) 2,392 Non-Nelnet Bank: FFELP loan (966) 28,912 (4,427) 146,613 (5,393) 175,525 Private education loan — — (28,874) 252,916 (28,874) 252,916 Other debt securities — — (1,275) 20,144 (1,275) 20,144 Total Non-Nelnet Bank (966) 28,912 (34,576) 419,673 (35,542) 448,585 Nelnet Bank: FFELP loan (1,168) 77,677 (1,128) 53,397 (2,296) 131,074 Other debt securities (90) 19,821 (1,551) 14,822 (1,641) 34,643 Total Nelnet Bank (1,258) 97,498 (2,679) 68,219 (3,937) 165,717 Total available-for-sale asset-backed securities $ (2,317) 128,802 (37,255) 487,892 (39,572) 616,694 |
Gross Proceeds Received and Gross Realized Gains and Losses for Sales of Available-for-Sale Asset-Backed Securities | The following table summarizes the gross proceeds received and gross realized gains and losses related to sales of available-for-sale asset-backed securities. Year ended December 31, 2023 2022 2021 Gross proceeds from sales $ 963,117 511,124 160,976 Gross realized gains $ 4,517 6,702 3,127 Gross realized losses (8,021) (800) (432) Net (losses) gains $ (3,504) 5,902 2,695 |
Business Combination (Tables)
Business Combination (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Estimated Fair Values of Assets Acquired and Liabilities Assumed | The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. Cash and cash equivalents $ 1,885 Accounts receivable 1,315 Property and equipment 800 Other assets 201 Intangible assets 15,250 Excess cost over fair value of net assets acquired (goodwill) 15,937 Other liabilities (4,550) Net assets acquired 30,838 Minority interest (6,291) Remeasurement of previously held investment (15,342) Total consideration paid by the Company $ 9,205 The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date. Cash and cash equivalents $ 1,742 Restricted cash 2,200 Accounts receivable 3,983 Property and equipment 8,720 Other assets 2,296 Intangible assets 11,683 Excess cost over fair value of net assets acquired (goodwill) 13,873 Bonds and notes payable (750) Other liabilities (7,624) Net assets acquired 36,123 Minority interest (7,225) Total consideration paid by the Company $ 28,898 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |
Intangible Assets | Intangible assets consisted of the following: Weighted average remaining useful life as of December 31, 2023 (months) As of December 31, 2023 2022 Amortizable intangible assets, net: Customer relationships (net of accumulated amortization of $46,573 and $55,116, respectively) 104 $ 43,031 51,738 Trade names (net of accumulated amortization of $8,268 and $617, respectively) 100 642 8,293 Computer software (net of accumulated amortization of $574 and $6,400, respectively) 40 1,146 1,520 Other (net of accumulated amortization of $490) — — 1,950 Total - amortizable intangible assets, net 102 $ 44,819 63,501 |
Intangible Assets Future Amortization Expense | As of December 31, 2023, the Company estimates it will record amortization expense as follows: 2024 $ 8,491 2025 6,099 2026 6,012 2027 5,714 2028 5,354 2029 and thereafter 13,149 $ 44,819 |
Goodwill (Tables)
Goodwill (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill [Abstract] | |
Schedule of Goodwill | The change in the carrying amount of goodwill by reportable operating segment was as follows: Nelnet Financial Services Loan Servicing and Systems Education Technology Services and Payments Asset Generation and Management (a) Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Total Balance as of December 31, 2021 $ 23,639 76,570 41,883 — — — 142,092 Goodwill acquired — 15,937 — — — 18,873 34,810 Balance as of December 31, 2022 23,639 92,507 41,883 — — 18,873 176,902 Impairment (see note 11) — — — — — (18,873) (18,873) Balance as of December 31, 2023 $ 23,639 92,507 41,883 — — — 158,029 (a) As a result of the Reconciliation Act of 2010, the Company no longer originates new FFELP loans, and net interest income from the Company's existing FFELP loan portfolio will decline over time as the Company's portfolio pays down. As a result, as this revenue stream winds down, goodwill impairment will be triggered for the Asset Generation and Management reporting unit due to the passage of time and depletion of projected cash flows stemming from its FFELP student loan portfolio. Management believes the elimination of FFELP loan originations will not have an adverse impact on the fair value of the Company's other reporting units. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment | Property and equipment consisted of the following: As of December 31, Useful life 2023 2022 Computer equipment and software 1-5 years $ 260,224 237,487 Building and building improvements 5-48 years 50,747 50,475 Office furniture and equipment 1-10 years 17,197 22,386 Solar facilities 5-35 years 12,850 3,547 Transportation equipment 5-10 years 7,101 6,207 Leasehold improvements 1-15 years 6,149 10,410 Land — 3,279 3,181 Construction in progress — 23,245 22,987 380,792 356,680 Accumulated depreciation (253,784) (234,154) Total property and equipment, net $ 127,008 122,526 |
Impairment Expense (Tables)
Impairment Expense (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Impairment Charges by Asset and Segment | The following table presents the impairment charges by asset and reportable operating segment recognized by the Company during 2023, 2022, and 2021. The Company’s impairment charges are included in “impairment expense” in the consolidated statements of income. Nelnet Financial Services Loan Servicing and Systems Education Technology Services and Payments Asset Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Total Year ended December 31, 2023 Goodwill (a) $ — — — — — 18,873 18,873 Leases, buildings, and associated improvements (b) 296 — — — — 4,678 4,974 Property and equipment - internally developed software — 4,310 — — — — 4,310 Investments - venture capital and funds (c) — — — — — 2,060 2,060 Intangible assets (a) — — — — — 1,708 1,708 $ 296 4,310 — — — 27,319 31,925 Year ended December 31, 2022 Leases, buildings, and associated improvements (b) $ 1,774 — — — — 998 2,772 Property and equipment - internally developed software 3,737 — — 214 — — 3,951 Investments - venture capital and funds (c) — — — — — 6,561 6,561 Intangible asset — 2,239 — — — — 2,239 $ 5,511 2,239 — 214 — 7,559 15,523 Year ended December 31, 2021 Leases, buildings, and associated improvements (b) $ 13,243 — — — — 916 14,159 Investments - venture capital and funds (c) — — — — — 4,637 4,637 Beneficial interest in loan securitizations — — (2,436) — — — (2,436) $ 13,243 — (2,436) — — 5,553 16,360 (a) As part of the November 2023 annual goodwill impairment assessment completed in conjunction with the Company’s annual November budget process, the Company determined it was more likely than not that the estimated fair value of the GRNE operating segment was less than its carrying amount. As part of the qualitative assessment, the Company used the discounted cash flow method under the income approach to estimate the fair value of the reporting unit, which concluded that the estimated fair value was less than its carrying amount. As a result, the Company recorded a non-cash impairment charge in the fourth quarter of 2023. No remaining goodwill is attributable to the GRNE operating segment. The Company also recorded a non-cash impairment charge for GRNE operating segment’s remaining intangible assets. (b) The Company continues to evaluate the use of office space as a large number of employees continue to work from home. As a result, the Company recorded non-cash impairment charges related to operating lease assets and associated leasehold improvements and to building and building improvements. The Corporate and Other Activities amount for the year ended December 31, 2023 includes a $2.4 million lease termination fee paid to Union Bank, a related party. (c) The Company recorded non-cash impairment charges related to several of its venture capital investments accounted for under the measurement alternative method. |
Bank Deposits (Tables)
Bank Deposits (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Deposits [Abstract] | |
Interest-Bearing Deposits | The following table summarizes Nelnet Bank’s interest-bearing deposits, excluding intercompany deposits. As of December 31, 2023 and December 31, 2022, Nelnet Bank had intercompany deposits from Nelnet, Inc. and its subsidiaries totaling $104.0 million and $98.3 million, respectively, including a $40.0 million pledged deposit from Nelnet, Inc. as required under a Capital and Liquidity Maintenance Agreement with the FDIC. All intercompany deposits held at Nelnet Bank are eliminated for consolidated financial reporting purposes. As of December 31, 2023 2022 Brokered CDs, net of brokered deposit fees $ 203,522 254,817 Commercial 2,057 — Retail and other savings (529, STFIT, and HSA) 517,960 410,556 Retail and other CDs (commercial and institutional) 20,060 25,949 Total interest-bearing deposits $ 743,599 691,322 |
Certificates of Deposit Maturities | The following table presents certificates of deposit remaining maturities as of December 31, 2023: One year or less $ — After one year to two years 2,740 After two years to three years 146,424 After three years to four years 74,071 After four years to five years 347 After five years — Total $ 223,582 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Equity [Abstract] | |
Schedule of Stock Repurchases | Shares repurchased by the Company during 2023, 2022, and 2021 are shown in the table below. In accordance with the corporate laws of the state in which the Company is incorporated, all shares repurchased by the Company are legally retired upon acquisition by the Company. Total shares repurchased Purchase price Average price of shares repurchased (per share) (a) Year ended December 31, 2023 336,943 $ 28,028 $ 83.18 Year ended December 31, 2022 1,162,533 97,685 84.03 Year ended December 31, 2021 713,274 58,111 81.47 (a) The average price of shares repurchased for the year ended December 31, 2023 includes excise taxes. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Earnings Per Share [Abstract] | |
Basic and Diluted Earnings per Share | Presented below is a summary of the components used to calculate basic and diluted earnings per share. The Company applies the two-class method in computing both basic and diluted earnings per share, which requires the calculation of separate earnings per share amounts for common stock and unvested share-based awards. Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock. Year ended December 31, 2023 2022 2021 Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Common shareholders Unvested restricted stock shareholders Total Numerator: Net income attributable to Nelnet, Inc. $ 89,606 1,926 91,532 399,564 7,783 407,347 386,865 6,421 393,286 Denominator: Weighted-average common shares outstanding - basic and diluted 36,629,437 787,184 37,416,621 36,884,548 718,485 37,603,033 37,943,032 629,769 38,572,801 Earnings per share - basic and diluted $ 2.45 2.45 2.45 10.83 10.83 10.83 10.20 10.20 10.20 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of gross unrecognized tax benefits follows: Year ended December 31, 2023 2022 Gross balance - beginning of year $ 16,835 19,678 Additions based on tax positions of prior years 819 2,269 Additions based on tax positions related to the current year 2,242 2,521 Settlements with taxing authorities (247) (2,818) Reductions for tax positions of prior years (460) (2,580) Reductions due to lapse of applicable statutes of limitations (2,105) (2,235) Gross balance - end of year $ 17,084 16,835 |
Provision for Income Tax Expense (Benefit) | The provision for income taxes consists of the following components: Year ended December 31, 2023 2022 2021 Current: Federal $ 65,952 67,649 55,239 State 5,732 10,984 4,792 Foreign 32 (49) 169 Total current provision 71,716 78,584 60,200 Deferred: Federal (41,705) 32,422 46,145 State (10,270) 2,198 9,647 Foreign 12 20 (170) Total deferred provision (51,963) 34,640 55,622 Provision for income tax expense $ 19,753 113,224 115,822 |
Effective Income Tax Rate Reconciliation | The differences between the income tax provision computed at the statutory federal corporate tax rate and the financial statement provision for income taxes are shown below: Year ended December 31, 2023 2022 2021 Tax expense at federal rate 21.0 % 21.0 % 21.0 % Increase (decrease) resulting from: State tax, net of federal income tax benefit (0.6) 2.8 3.0 Tax credits (4.1) (0.6) (0.8) Change in valuation allowance 0.4 (0.5) — Other 1.1 (0.9) (0.4) Effective tax rate 17.8 % 21.8 % 22.8 % |
Deferred Tax Assets and Liabilities | The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following: As of December 31, 2023 2022 Deferred tax assets: Deferred revenue $ 17,399 27,410 Student loans 16,489 20,569 State tax credit carryforwards 12,190 9,431 Accrued expenses 9,623 10,824 Stock compensation 6,584 5,345 Net operating losses 4,563 2,613 Lease liability 2,929 3,432 Intangible assets 987 — Debt and equity investments — 1,430 Total gross deferred tax assets 70,764 81,054 Less state tax valuation allowance (562) (161) Net deferred tax assets 70,202 80,893 Deferred tax liabilities: Partnership basis 73,876 99,184 Basis in certain derivative contracts 26,139 65,224 Depreciation 9,526 11,306 Debt and equity investments 4,711 — Lease right of use asset 2,770 3,073 Loan origination services 2,635 3,264 Securitization 267 363 Intangible assets — 1,474 Other 3,784 2,679 Total gross deferred tax liabilities 123,708 186,567 Net deferred tax asset (liability) $ (53,506) (105,674) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Reportable Operating Segments Reconciled to Consolidated Financial Statements | The following tables present the results of each of the Company's reportable operating segments reconciled to the consolidated financial statements. Year ended December 31, 2023 Nelnet Financial Services Loan Servicing and Systems Education Technology Services and Payments Asset Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Eliminations Total Total interest income $ 4,845 26,962 977,158 57,859 74,857 12,141 (44,021) 1,109,800 Interest expense — — 823,084 34,704 29,747 1,578 (44,021) 845,091 Net interest income 4,845 26,962 154,074 23,155 45,110 10,563 — 264,709 Less provision (negative provision) for loan losses — — 56,975 8,475 — — — 65,450 Net interest income after provision for loan losses 4,845 26,962 97,099 14,680 45,110 10,563 — 199,259 Other income (expense): Loan servicing and systems revenue 517,954 — — — — — — 517,954 Intersegment revenue 28,911 253 — — — — (29,164) — Education technology services and payments revenue — 463,311 — — — — — 463,311 Solar construction revenue — — — — — 31,669 — 31,669 Other, net 2,587 — 11,269 1,095 26,648 (90,385) — (48,787) Gain on sale of loans, net — — 39,673 — — — — 39,673 Impairment expense (296) (4,310) — — — (27,319) — (31,925) Derivative settlements, net — — 24,588 484 — — — 25,072 Derivative market value adjustments, net — — (40,250) (1,523) — — — (41,773) Total other income (expense), net 549,156 459,254 35,280 56 26,648 (86,035) (29,164) 955,194 Cost of services: Cost to provide education technology services and payments — 171,183 — — — — — 171,183 Cost to provide solar construction services — — — — — 48,576 — 48,576 Total cost of services — 171,183 — — — 48,576 — 219,759 Operating expenses: Salaries and benefits 317,885 155,296 4,191 9,074 1,130 105,531 (1,571) 591,537 Depreciation and amortization 19,257 11,319 — 574 — 47,969 — 79,118 Other expenses 60,517 34,133 14,728 4,994 19,172 56,307 — 189,851 Intersegment expenses, net 78,628 23,184 32,824 462 584 (108,089) (27,593) — Total operating expenses 476,287 223,932 51,743 15,104 20,886 101,718 (29,164) 860,506 Income (loss) before income taxes 77,714 91,101 80,636 (368) 50,872 (225,766) — 74,188 Income tax (expense) benefit (18,651) (21,891) (19,353) 153 (12,073) 52,061 — (19,753) Net income (loss) 59,063 69,210 61,283 (215) 38,799 (173,705) — 54,435 Net loss (income) attributable to noncontrolling interests — 109 — — (568) 37,556 — 37,097 Net income (loss) attributable to Nelnet, Inc. $ 59,063 69,319 61,283 (215) 38,231 (136,149) — 91,532 Total assets as of December 31, 2023 $ 294,376 490,296 13,488,561 991,252 1,115,292 897,886 (541,018) 16,736,645 Year ended December 31, 2022 Nelnet Financial Services Loan Servicing and Systems Education Technology Services and Payments Asset Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Eliminations Total Total interest income $ 2,722 9,377 676,557 25,973 40,377 2,199 (14,399) 742,806 Interest expense 44 — 411,900 11,055 21,974 (436) (14,399) 430,137 Net interest income 2,678 9,377 264,657 14,918 18,403 2,635 — 312,669 Less provision (negative provision) for loan losses — — 44,601 1,840 — — — 46,441 Net interest income after provision for loan losses 2,678 9,377 220,056 13,078 18,403 2,635 — 266,228 Other income (expense): Loan servicing and systems revenue 535,459 — — — — — — 535,459 Intersegment revenue 33,170 81 — — — — (33,251) — Education technology services and payments revenue — 408,543 — — — — — 408,543 Solar construction revenue — — — — — 24,543 — 24,543 Other, net 2,543 — 21,170 2,625 35,259 (36,112) — 25,486 Gain on sale of loans, net — — 2,903 — — — — 2,903 Impairment expense (5,511) (2,239) — (214) — (7,559) — (15,523) Derivative settlements, net — — 32,943 — — — — 32,943 Derivative market value adjustments, net — — 231,691 — — — — 231,691 Total other income (expense), net 565,661 406,385 288,707 2,411 35,259 (19,128) (33,251) 1,246,045 Cost of services: Cost to provide education technology services and payments — 148,403 — — — — — 148,403 Cost to provide solar construction services — — — — — 19,971 — 19,971 Total cost of services — 148,403 — — — 19,971 — 168,374 Operating expenses: Salaries and benefits 344,809 133,428 2,524 6,948 880 100,990 — 589,579 Depreciation and amortization 24,255 10,184 — 15 — 39,623 — 74,077 Other expenses 59,674 30,104 16,835 3,925 2,453 57,788 — 170,778 Intersegment expenses, net 75,145 19,538 34,679 244 (1,173) (95,182) (33,251) — Total operating expenses 503,883 193,254 54,038 11,132 2,160 103,219 (33,251) 834,434 Income (loss) before income taxes 64,456 74,105 454,725 4,357 51,502 (139,683) — 509,465 Income tax (expense) benefit (15,470) (17,785) (109,134) (1,013) (12,237) 42,415 — (113,224) Net income (loss) 48,986 56,320 345,591 3,344 39,265 (97,268) — 396,241 Net loss (income) attributable to noncontrolling interests — (3) — — (516) 11,625 — 11,106 Net income (loss) attributable to Nelnet, Inc. $ 48,986 56,317 345,591 3,344 38,749 (85,643) — 407,347 Total assets as of December 31, 2022 $ 273,072 484,976 15,945,762 918,716 1,499,785 907,180 (655,447) 19,374,044 Year ended December 31, 2021 Nelnet Financial Services Loan Servicing and Systems Education Technology Services and Payments Asset Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Eliminations Total Total interest income $ 137 1,075 506,901 7,721 9,466 336 (1,800) 523,835 Interest expense 94 — 172,918 1,507 2,756 760 (1,800) 176,233 Net interest income 43 1,075 333,983 6,214 6,710 (424) — 347,602 Less provision (negative provision) for loan losses — — (13,220) 794 — — — (12,426) Net interest income after provision for loan losses 43 1,075 347,203 5,420 6,710 (424) — 360,028 Other income (expense): Loan servicing and systems revenue 486,363 — — — — — — 486,363 Intersegment revenue 33,956 12 — — — — (33,968) — Education technology services and payments revenue — 338,234 — — — — — 338,234 Solar construction revenue — — — — — — — — Other, net 3,307 — 34,306 713 38,449 1,907 — 78,681 Gain on sale of loans, net — — 18,715 — — — — 18,715 Impairment expense (13,243) — 2,436 — — (5,553) — (16,360) Derivative settlements, net — — (21,367) — — — — (21,367) Derivative market value adjustments, net — — 92,813 — — — — 92,813 Total other income (expense), net 510,383 338,246 126,903 713 38,449 (3,646) (33,968) 977,079 Cost of services: Cost to provide education technology services and payments — 108,660 — — — — — 108,660 Cost to provide solar construction services — — — — — — — — Total cost of services — 108,660 — — — — — 108,660 Operating expenses: Salaries and benefits 297,406 112,046 2,135 5,042 830 89,673 — 507,132 Depreciation and amortization 25,649 11,404 — — — 36,682 — 73,741 Other expenses 52,720 19,318 13,487 1,776 2,585 55,589 — 145,469 Intersegment expenses, net 72,206 15,180 34,868 107 (1,379) (87,014) (33,968) — Total operating expenses 447,981 157,948 50,490 6,925 2,036 94,930 (33,968) 726,342 Income (loss) before income taxes 62,445 72,713 423,616 (792) 43,123 (99,000) — 502,105 Income tax (expense) benefit (14,987) (17,451) (101,668) 175 (10,175) 28,284 — (115,822) Net income (loss) 47,458 55,262 321,948 (617) 32,948 (70,716) — 386,283 Net loss (income) attributable to noncontrolling interests — — — — (726) 7,729 — 7,003 Net income (loss) attributable to Nelnet, Inc. $ 47,458 55,262 321,948 (617) 32,222 (62,987) — 393,286 Total assets as of December 31, 2021 $ 296,618 443,788 18,965,371 535,948 1,208,430 754,602 (526,716) 21,678,041 |
Disaggregated Revenue and Def_2
Disaggregated Revenue and Deferred Revenue (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated Revenue | The following table presents disaggregated revenue by service offering: Year ended December 31, 2023 2022 2021 Government loan servicing $ 412,478 423,066 360,793 Private education and consumer loan servicing 48,984 49,210 47,302 FFELP loan servicing 13,704 16,016 18,281 Software services 29,208 33,409 34,600 Outsourced services 13,580 13,758 25,387 Loan servicing and systems revenue $ 517,954 535,459 486,363 The following table presents disaggregated revenue by service offering: Year ended December 31, 2023 2022 2021 Tuition payment plan services $ 125,326 110,802 103,970 Payment processing 163,859 148,212 127,080 Education technology services 170,754 146,679 105,975 Other 3,372 2,850 1,209 Education technology services and payments revenue $ 463,311 408,543 338,234 The following table presents disaggregated revenue by service offering and customer type. The amounts listed for 2022 reflect activity subsequent to GRNE Solar acquisition on July 1, 2022. Year ended December 31, 2023 Period from July 1, 2022 - December 31, 2022 Solar construction $ 31,474 24,386 Operations and maintenance 195 157 Solar construction revenue $ 31,669 24,543 Commercial revenue $ 18,541 16,891 Residential revenue 11,830 7,495 Other 1,298 157 Solar construction revenue $ 31,669 24,543 |
Components of Other Income | The following table presents the components of "other, net" in “other income (expense)” on the consolidated statements of income: Year ended December 31, 2023 2022 2021 Reinsurance premiums $ 20,067 157 — ALLO preferred return 9,120 8,584 8,427 Borrower late fee income 8,997 10,809 3,444 Administration/sponsor fee income 6,793 7,898 3,656 Investment advisory services (WRCM) 6,760 6,026 7,773 Management fee revenue 2,587 2,543 3,307 Loss from ALLO voting membership interest investment (65,277) (67,966) (42,148) Loss from solar investments (46,702) (9,479) (10,132) Investment activity, net (8,586) 51,493 91,593 Other 17,454 15,421 12,761 Other, net $ (48,787) 25,486 78,681 |
Deferred Revenue Reconciliation | Activity in the deferred revenue balance, which is included in "other liabilities" on the consolidated balance sheets, is shown below: Loan Servicing and Systems Education Technology Services and Payments Corporate and Other Activities Total Balance as of December 31, 2020 $ 1,378 33,267 1,551 36,196 Deferral of revenue 5,882 109,278 5,775 120,935 Recognition of revenue (4,844) (105,801) (5,316) (115,961) Balance as of December 31, 2021 2,416 36,744 2,010 41,170 Deferral of revenue 2,607 138,086 13,963 154,656 Recognition of revenue (2,713) (129,433) (12,940) (145,086) Business acquisitions — 3,917 1,997 5,914 Balance as of December 31, 2022 2,310 49,314 5,030 56,654 Deferral of revenue 3,954 149,815 53,019 206,788 Recognition of revenue (2,808) (147,405) (40,676) (190,889) Balance as of December 31, 2023 $ 3,456 51,724 17,373 72,553 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Leases [Abstract] | |
Supplemental Balance Sheet Information | The following table presents supplemental balance sheet information related to leases: As of December 31, 2023 2022 Operating lease ROU assets, which is included in " other assets consolidated balance sheets $ 13,565 14,852 Operating lease liabilities, which is included in " other liabilities consolidated balance sheets $ 14,291 16,414 |
Lease Expense, Cash Flow Information, Weighted Average Remaining Lease Term, and Discount Rate | The following table presents components of lease expense: Year ended December 31, 2023 2022 2021 Rental expense, which is included in “other expenses” on the consolidated statements of income (a) $ 7,495 6,841 9,386 (a) Includes short-term and variable lease costs, which are immaterial. Weighted average remaining lease term and discount rate are shown below: As of December 31, 2023 2022 Weighted average remaining lease term (years) 5.36 6.01 Weighted average discount rate 4.72 % 3.90 % |
Maturity of Lease Liabilities | Maturity of lease liabilities are shown below: 2024 $ 4,503 2025 3,268 2026 2,130 2027 2,040 2028 1,030 2029 and thereafter 3,297 Total lease payments 16,268 Imputed interest (1,977) Total $ 14,291 |
Stock Based Compensation Plans
Stock Based Compensation Plans (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Restricted Stock Activity | The following table summarizes restricted stock activity: Year ended December 31, 2023 2022 2021 Non-vested shares at beginning of year 752,622 660,166 552,456 Granted 239,041 272,212 249,096 Vested (156,569) (136,076) (116,842) Canceled (48,332) (43,680) (24,544) Non-vested shares at end of year 786,762 752,622 660,166 |
Unrecognized Compensation Costs | As of December 31, 2023, there was $31.5 million of unrecognized compensation cost included in equity on the consolidated balance sheet related to restricted stock, which is expected to be recognized as compensation expense in future periods as shown in the table below. 2024 $ 12,586 2025 7,485 2026 4,621 2027 2,765 2028 1,642 2029 and thereafter 2,389 $ 31,488 |
Non-employee Directors Compensation Plan | The following table presents the number of shares awarded under this plan for the years ended December 31, 2023, 2022, and 2021. Shares issued - Shares issued- Total Year ended December 31, 2023 6,782 10,022 16,804 Year ended December 31, 2022 11,861 12,937 24,798 Year ended December 31, 2021 9,958 12,072 22,030 |
Related Parties (Tables)
Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | The Company has co-invested in Company-managed limited liability companies with related parties that invest in renewable energy (solar) (as summarized below). As part of these transactions, the Company receives management and performance fees under a management agreement. Entity/Relationship Investment amount Revenue recognized by the Company from management and performance fees 2023 2022 2021 2023 2022 2021 Union Bank $ 18,456,829 4,881,063 — 152,757 66,568 — F&M — 3,487,000 7,913,000 123,077 123,077 29,491 North Central Bancorp, Inc. (directly and indirectly owned by F&M, Mr. Dunlap, and Ms. Muhleisen) 2,212,394 — 2,466,667 42,769 30,769 14,958 Infovisa, Inc. (directly and indirectly owned by F&M, 737,465 507,781 562,600 12,234 8,369 1,923 Farm and Home Insurance Agency, Inc. (indirectly owned by Mr. Dunlap and Ms. Muhleisen) 737,465 — 116,667 7,846 3,846 962 Union Bank has provided funding for the following Nelnet Renewable Energy properties and solar fields. Building/solar field Original loan amount Loan amount outstanding as of December 31, 2023 Fixed interest rate Maturity date Office space - Palatine, Illinois $ 287,000 $ 274,860 6.05 % 12/30/2027 Warehouse - Elk Grove Village, Illinois 332,000 278,403 5.35 3/1/2024 Solarfield - Round Lake, Illinois 900,000 882,449 5.00 11/15/2030 Solarfield - Round Lake, Illinois 1,700,000 1,659,076 5.00 11/15/2028 Solarfield - St. Charles, Illinois 2,300,000 2,094,575 5.00 11/15/2028 Solarfield - St. Charles, Illinois 600,000 588,359 5.00 11/15/2030 |
Fair Value (Tables)
Fair Value (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets and Liabilities Measured on Recurring Basis | The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis. There were no transfers into or out of level 1, level 2, or level 3 for the years ended December 31, 2023 and 2022. As of December 31, 2023 As of December 31, 2022 Level 1 Level 2 Total Level 1 Level 2 Total Assets: Investments (a): Asset-backed debt securities - available-for-sale $ 99 955,804 955,903 100 1,388,937 1,389,037 Equity securities 73 — 73 6,719 — 6,719 Equity securities measured at net asset value (b) 50,834 32,363 Total investments 172 955,804 1,006,810 6,819 1,388,937 1,428,119 Derivative instruments (c) — 452 452 — — — Total assets $ 172 956,256 1,007,262 6,819 1,388,937 1,428,119 Liabilities: Derivative instruments (c) $ — 1,976 1,976 — — — Total liabilities $ — 1,976 1,976 — — — (a) Investments represent investments recorded at fair value on a recurring basis. Level 1 investments are measured based upon quoted prices and as of December 31, 2023 and 2022, include investments traded on an active exchange and a single U.S. Treasury security. Level 2 investments include student loan asset-backed, mortgage-backed, collateralized loan obligation, and other consumer loan-backed securities. The fair value for the Level 2 securities is determined using indicative quotes from broker-dealers or an income approach valuation technique (present value using the discount rate adjustment technique) that considers, among other things, rates currently observed in publicly traded debt markets for debt of similar terms issued by companies with comparable credit risk. (b) In accordance with the Fair Value Measurements Topic of the FASB Accounting Standards Codification, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy. (c) Nelnet Bank derivatives are accounted for at fair value on a recurring basis. The fair value of derivative financial instruments is determined using a market approach in which derivative pricing models use the stated terms of the contracts and observable yield curves and volatilities from active markets. When determining the fair value of derivatives, Nelnet Bank takes into account counterparty credit risk for positions where it is exposed to the counterparty on a net basis by assessing exposure net of collateral held. The net exposures for each counterparty are adjusted based on market information available for the specific counterparty. |
Fair Value, by Balance Sheet Grouping | The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets: As of December 31, 2023 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Loans receivable $ 12,800,638 12,343,819 — — 12,800,638 Accrued loan interest receivable 764,385 764,385 — 764,385 — Cash and cash equivalents 168,112 168,112 168,112 — — Investments (at fair value) 1,006,810 1,006,810 172 955,804 — Investments - held to maturity 163,622 162,738 — 163,622 — Notes receivable 53,747 53,747 — 53,747 — Beneficial interest in loan securitizations 262,093 225,079 — — 262,093 Restricted cash 488,723 488,723 488,723 — — Restricted cash – due to customers 368,656 368,656 368,656 — — Derivative instruments 452 452 — 452 — Financial liabilities: Bonds and notes payable 11,629,359 11,828,393 — 11,629,359 — Accrued interest payable 35,391 35,391 — 35,391 — Bank deposits 722,973 743,599 467,420 255,553 — Due to customers 425,507 425,507 425,507 — — Derivative instruments 1,976 1,976 — 1,976 — As of December 31, 2022 Fair value Carrying value Level 1 Level 2 Level 3 Financial assets: Loans receivable $ 14,586,794 14,427,025 — — 14,586,794 Accrued loan interest receivable 816,864 816,864 — 816,864 — Cash and cash equivalents 118,146 118,146 118,146 — — Investments (at fair value) 1,428,119 1,428,119 6,819 1,388,937 — Investments - held to maturity 18,996 18,774 — 18,996 — Notes receivable 31,106 31,106 — 31,106 — Beneficial interest in loan securitizations 162,360 138,738 — — 162,360 Restricted cash 945,159 945,159 945,159 — — Restricted cash – due to customers 294,311 294,311 294,311 — — Financial liabilities: Bonds and notes payable 14,088,666 14,637,195 — 14,088,666 — Accrued interest payable 36,049 36,049 — 36,049 — Bank deposits 664,573 691,322 355,282 309,291 — Due to customers 348,317 348,317 348,317 — — |
Condensed Parent Company Fina_2
Condensed Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2023 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Parent Balance Sheets | Balance Sheets (Parent Company Only) As of December 31, 2023 and 2022 2023 2022 Assets: Cash and cash equivalents $ 31,153 27,201 Investments 1,071,335 1,464,583 Investment in subsidiary debt 287,192 410,191 Restricted cash 61,527 114,820 Investment in subsidiaries 1,951,098 2,200,344 Notes receivable from subsidiaries 102,694 67,012 Other assets 128,903 108,983 Total assets $ 3,633,902 4,393,134 Liabilities: Notes payable, net of debt issuance costs $ 206,520 960,358 Other liabilities 161,890 233,536 Total liabilities 368,410 1,193,894 Equity: Nelnet, Inc. shareholders' equity: Common stock 371 372 Additional paid-in capital 3,096 1,109 Retained earnings 3,279,273 3,234,844 Accumulated other comprehensive loss, net (20,119) (37,366) Total Nelnet, Inc. shareholders' equity 3,262,621 3,198,959 Noncontrolling interests 2,871 281 Total equity 3,265,492 3,199,240 Total liabilities and shareholders' equity $ 3,633,902 4,393,134 |
Condensed Parent Statements of Income | Statements of Income (Parent Company Only) Years ended December 31, 2023, 2022, and 2021 2023 2022 2021 Investment interest income $ 86,696 50,465 12,455 Interest expense on bonds and notes payable 31,142 21,489 3,515 Net interest income 55,554 28,976 8,940 Other income (expense): Other, net (57,959) (42,625) 38,761 Equity in subsidiaries income 103,959 228,169 313,451 Impairment expense (2,060) (6,561) (4,637) Derivative market value adjustments and derivative settlements, net (15,662) 264,634 71,446 Total other income (expense), net 28,278 443,617 419,021 Operating expenses 5,445 14,552 7,632 Income before income taxes 78,387 458,041 420,329 Income tax benefit (expense) 12,935 (50,732) (27,101) Net income 91,322 407,309 393,228 Net loss attributable to noncontrolling interests 210 38 58 Net income attributable to Nelnet, Inc. $ 91,532 407,347 393,286 |
Condensed Parent Statement of Comprehensive Income | Statements of Comprehensive Income (Parent Company Only) Years ended December 31, 2023, 2022, and 2021 2023 2022 2021 Net income $ 91,322 407,309 393,228 Other comprehensive income (loss): Net changes related to equity in subsidiaries other comprehensive income (loss) $ 9,473 (11,188) 6,692 Net changes related to available-for-sale debt securities: Unrealized holding gains (losses) arising during period, net 6,412 (42,793) (4,220) Reclassification of losses (gains) recognized in net income, net 3,818 (3,894) (372) Income tax effect (2,456) 7,774 11,205 (35,482) 1,102 (3,490) Other comprehensive income (loss) 17,247 (46,670) 3,202 Comprehensive income 108,569 360,639 396,430 Comprehensive loss attributable to noncontrolling interests 210 38 58 Comprehensive income attributable to Nelnet, Inc. $ 108,779 360,677 396,488 |
Condensed Parent Statements of Cash Flows | Statements of Cash Flows (Parent Company Only) Years ended December 31, 2023, 2022, and 2021 2023 2022 2021 Net income attributable to Nelnet, Inc. $ 91,532 407,347 393,286 Net loss attributable to noncontrolling interest (210) (38) (58) Net income 91,322 407,309 393,228 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Depreciation and amortization 620 619 591 Derivative market value adjustments 40,250 (231,691) (92,813) Proceeds from termination of derivative instruments 164,079 91,786 — (Payments to) proceeds from clearinghouse - initial and variation margin, net (213,923) 148,691 91,294 Equity in earnings of subsidiaries (103,959) (228,169) (313,451) Loss on investments, net 64,584 51,175 721 Proceeds from sale of equity securities, net of purchases 75 42,841 (42,916) Deferred income tax (benefit) expense (71,056) 39,997 47,423 Non-cash compensation expense 16,476 14,176 10,673 Impairment expense 2,060 6,561 4,637 (Increase) decrease in other assets (18,181) 14,816 (2,578) Increase in other liabilities 11,049 10,590 1,784 Net cash (used in) provided by operating activities (16,604) 368,701 98,593 Cash flows from investing activities: Purchases of available-for-sale securities (206,927) (713,681) (640,644) Proceeds from sales of available-for-sale securities 569,670 435,937 133,286 Proceeds from beneficial interest in consumer loan securitization 6,783 345 — Capital distributions from subsidiaries, net 355,790 7,340 294,578 (Increase) decrease in notes receivable from subsidiaries (35,682) (66,698) 20,895 Proceeds from (payments on) subsidiary debt, net 122,999 (36,104) (335,184) Purchases of other investments (60,707) (122,236) (110,184) Proceeds from other investments and repayments of notes receivable 32,732 20,358 129,899 Net cash provided by (used in) investing activities 784,658 (474,739) (507,354) Cash flows from financing activities: Payments on notes payable (954,163) (7,002) (126,530) Proceeds from issuance of notes payable 199,855 233,194 619,259 Payments of debt issuance costs — (10) (1,286) Dividends paid (39,419) (36,608) (34,457) Repurchases of common stock (28,028) (97,685) (58,111) Proceeds from issuance of common stock 1,780 1,633 1,465 Issuance of noncontrolling interest 2,580 — — Net cash (used in) provided by financing activities (817,395) 93,522 400,340 Net decrease in cash, cash equivalents, and restricted cash (49,341) (12,516) (8,421) Cash, cash equivalents, and restricted cash, beginning of period 142,021 154,537 162,958 Cash, cash equivalents, and restricted cash, end of period $ 92,680 142,021 154,537 Cash disbursements made for: Interest $ 34,895 14,649 2,301 Income taxes, net of refunds and credits $ 47,589 57,705 18,659 Non-cash investing and financing activities: (Contributions to) distributions from subsidiary, net $ (6,888) 6,068 835 Issuance of noncontrolling interest $ 220 — — |
Description of Business (Detail
Description of Business (Details) | Dec. 31, 2023 division |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of divisions providing service and technology | 4 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies and Practices - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2023 USD ($) unit | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | Jul. 01, 2022 | Apr. 30, 2022 | Sep. 30, 2021 | Jan. 01, 2012 | |
Variable Interest Entity [Line Items] | ||||||||||
Contingent consideration, liability, higher estimate | $ 35,000,000 | |||||||||
Fair value of contingent payment | $ 7,600,000 | $ 9,800,000 | $ 7,600,000 | |||||||
Amount funded or committed to fund by partners | 198,800,000 | |||||||||
Amount funded or committed to fund | 470,700,000 | |||||||||
Equity method investment, amount committed to fund | 154,200,000 | |||||||||
Equity method investment, amount committed to fund by partners | 72,100,000 | |||||||||
Loans classified as held for sale | 0 | $ 0 | 0 | |||||||
Financing receivable, payment delays not significant, period (or less) | 3 months | |||||||||
Straight line reversion method period | 2 years | |||||||||
Due from federal reserve bank | 5,200,000 | $ 7,000,000 | 5,200,000 | |||||||
Loss from equity investment | 46,700,000 | 9,500,000 | $ 10,100,000 | |||||||
Net loss attributable to noncontrolling interests | 37,097,000 | 11,106,000 | 7,003,000 | |||||||
Net income (loss) attributable to parent | 91,532,000 | 407,347,000 | 393,286,000 | |||||||
Cash collected for customers and held | $ 55,000,000 | $ 57,500,000 | 55,000,000 | |||||||
Reporting units, impaired (in units) | unit | 1 | |||||||||
Pre tax increase (decrease) to interest income | $ 1,109,800,000 | $ 742,806,000 | $ 523,835,000 | |||||||
Rebate fee on consolidation loans | 1.05% | |||||||||
Restricted Stock | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Vesting period (up to) | 10 years | |||||||||
Minimum | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Revenue, payment period | 30 days | |||||||||
Maximum | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Revenue, payment period | 60 days | |||||||||
Stafford Loan | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Federally insured loans repayment period | 5 years | |||||||||
Stafford Loan | Federally insured loans | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Constant prepayment rate | 6% | 5% | 6% | 5% | ||||||
Student Loans, PLUS | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Federally insured loans repayment period | 10 years | |||||||||
Federal Family Education Loan Program (FFELP) Guaranteed Loans | Minimum | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Federally insured loans repayment period | 12 years | |||||||||
Federal Family Education Loan Program (FFELP) Guaranteed Loans | Maximum | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Federally insured loans repayment period | 30 years | |||||||||
Private Education Loans | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Uninsured loans, repayment period | 30 years | |||||||||
Consumer Loans | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Uninsured loans, repayment period | 6 years | |||||||||
Other Loans, Non-Nelnet Bank | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Financing receivable, revolving, draw period | 5 years | |||||||||
Other Loans, Non-Nelnet Bank | Minimum | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Financing receivable, repayment period | 5 years | |||||||||
Other Loans, Non-Nelnet Bank | Maximum | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Financing receivable, repayment period | 10 years | |||||||||
Consolidation loans | Federally insured loans | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Constant prepayment rate | 5% | 4% | 5% | 4% | 3% | |||||
Increase (decrease) to net loan discount | $ (8,400,000) | $ 6,200,000 | ||||||||
Pre tax increase (decrease) to interest income | $ 8,400,000 | $ (6,200,000) | ||||||||
Solar | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Net loss attributable to noncontrolling interests | $ 26,400,000 | $ 10,900,000 | $ 7,400,000 | |||||||
Net income (loss) attributable to parent | $ (20,300,000) | $ 1,400,000 | $ (2,700,000) | |||||||
Whitetail Rock | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Noncontrolling interest, ownership percentage | 10% | |||||||||
NGWeb Solutions, LLC | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Noncontrolling interest, ownership percentage | 20% | |||||||||
GRNE Solutions, LLC | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Noncontrolling interest, ownership percentage | 20% | |||||||||
Variable Interest Entity, Primary Beneficiary | ALLO Communications | ||||||||||
Variable Interest Entity [Line Items] | ||||||||||
Ownership percentage by parent | 45% | |||||||||
Percent of operating decision voting power | 43% |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies and Practices - Variable Interest Entities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Variable Interest Entity, Not Primary Beneficiary | ||
Variable Interest Entity, Not Primary Beneficiary, Disclosures [Abstract] | ||
Investment carrying amount, excluding third-party investors | $ (65,266) | $ (36,863) |
Tax credits subject to recapture | 153,699 | 88,692 |
Unfunded capital and other commitments | 82,046 | 33,456 |
Company’s maximum exposure to loss | $ 170,479 | $ 85,285 |
ALLO Communications | Variable Interest Entity, Primary Beneficiary | ||
Variable Interest Entity [Line Items] | ||
Ownership percentage by parent | 45% | |
Percent of operating decision voting power | 43% |
Loans and Accrued Interest Re_3
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Loans Receivable and Accrued Interest Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Accrued interest receivable | $ 764,385 | $ 816,864 | ||
Loan discount, net of unamortized premiums and deferred origination costs | (33,872) | (30,714) | ||
Allowance for loan losses | (104,643) | (131,827) | $ (127,113) | $ (175,698) |
Financing receivable, after allowance for credit loss | 13,108,204 | 15,243,889 | ||
Non-Nelnet Bank loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 12,049,462 | 14,169,771 | ||
Allowance for loan losses | (95,945) | (129,267) | ||
Federally insured loans - Non-Nelnet Bank | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 11,686,207 | 13,566,473 | 17,091,047 | |
Accrued interest receivable | 757,713 | 808,150 | 784,716 | |
Loan discount, net of unamortized premiums and deferred origination costs | (28,963) | (35,468) | (28,309) | |
Allowance for loan losses | (68,453) | (83,593) | (103,381) | (128,590) |
Financing receivable, after allowance for credit loss | 12,346,504 | 14,255,562 | 17,744,073 | |
Federally insured loans - Non-Nelnet Bank | Stafford and other | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 2,936,174 | 3,389,178 | ||
Federally insured loans - Non-Nelnet Bank | Consolidation | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 8,750,033 | 10,177,295 | ||
Private education loans - Non-Nelnet Bank | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 277,320 | 252,383 | 299,442 | |
Accrued interest receivable | 2,653 | 2,146 | 1,960 | |
Loan discount, net of unamortized premiums and deferred origination costs | (8,037) | (38) | (1,123) | |
Allowance for loan losses | (15,750) | (15,411) | (16,143) | (19,529) |
Financing receivable, after allowance for credit loss | 256,186 | 239,080 | 284,136 | |
Consumer loans and other loans - Non-Nelnet Bank | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 85,935 | 350,915 | 51,301 | |
Accrued interest receivable | 861 | 3,658 | 396 | |
Loan discount, net of unamortized premiums and deferred origination costs | (2,474) | (588) | 913 | |
Allowance for loan losses | (11,742) | (30,263) | (6,481) | (27,256) |
Financing receivable, after allowance for credit loss | 72,580 | 323,722 | 46,129 | |
Nelnet Bank loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 432,872 | 419,795 | ||
Allowance for loan losses | (8,698) | (2,560) | ||
Federally insured loans - Nelnet Bank | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 0 | 65,913 | 88,011 | |
Accrued interest receivable | 1,758 | 1,216 | ||
Loan discount, net of unamortized premiums and deferred origination costs | 20 | 26 | ||
Allowance for loan losses | 0 | (170) | (268) | 0 |
Financing receivable, after allowance for credit loss | 67,521 | 88,985 | ||
Private education loans - Nelnet Bank | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 360,520 | 353,882 | 169,890 | |
Accrued interest receivable | 2,023 | 1,152 | 264 | |
Loan discount, net of unamortized premiums and deferred origination costs | 5,608 | 5,360 | 2,560 | |
Allowance for loan losses | (3,347) | (2,390) | (840) | $ (323) |
Financing receivable, after allowance for credit loss | 364,804 | 358,004 | $ 171,874 | |
Consumer and other loans - Nelnet Bank | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans receivable, gross | 72,352 | 0 | ||
Accrued interest receivable | 575 | |||
Loan discount, net of unamortized premiums and deferred origination costs | (6) | |||
Allowance for loan losses | (5,351) | $ 0 | ||
Financing receivable, after allowance for credit loss | $ 67,570 |
Loans and Accrued Interest Re_4
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Allowance for Loan Losses as a Percentage of the Ending Balance (Details) | Dec. 31, 2023 | Dec. 31, 2022 |
Federally insured loans - Non-Nelnet Bank | ||
Financing Receivable, Credit Ratio [Line Items] | ||
Allowance for loan losses as a percentage of the ending balance | 0.59% | 0.62% |
Allowance for loan losses as a percentage of the risk sharing component, not covered by the federal guaranty | 21.80% | 22.40% |
Private education loans - Non-Nelnet Bank | ||
Financing Receivable, Credit Ratio [Line Items] | ||
Allowance for loan losses as a percentage of the ending balance | 5.68% | 6.11% |
Consumer loans and other loans - Non-Nelnet Bank | ||
Financing Receivable, Credit Ratio [Line Items] | ||
Allowance for loan losses as a percentage of the ending balance | 13.66% | 8.62% |
Federally insured loans - Nelnet Bank | ||
Financing Receivable, Credit Ratio [Line Items] | ||
Allowance for loan losses as a percentage of the ending balance | 0% | 0.26% |
Allowance for loan losses as a percentage of the risk sharing component, not covered by the federal guaranty | 10.30% | |
Private education loans - Nelnet Bank | ||
Financing Receivable, Credit Ratio [Line Items] | ||
Allowance for loan losses as a percentage of the ending balance | 0.93% | 0.68% |
Consumer and other loans - Nelnet Bank | ||
Financing Receivable, Credit Ratio [Line Items] | ||
Allowance for loan losses as a percentage of the ending balance | 7.40% | 0% |
Loans and Accrued Interest Re_5
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance at beginning of period | $ 131,827 | $ 127,113 | $ 175,698 |
Provision (negative provision) for loan losses | 65,377 | 46,368 | (12,426) |
Charge-offs | (38,367) | (32,096) | (28,742) |
Recoveries | 3,135 | 1,248 | 1,545 |
Initial allowance on loans purchased with credit deterioration | 6 | 662 | 3,273 |
Loan sales | (57,335) | (11,468) | (12,235) |
Balance at end of period | 104,643 | 131,827 | 127,113 |
Par value of loans purchased with deteriorated credit quality | 3,300 | 12,000 | 224,100 |
Federally insured loans - Non-Nelnet Bank | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance at beginning of period | 83,593 | 103,381 | 128,590 |
Provision (negative provision) for loan losses | 4,303 | 3,731 | (7,343) |
Charge-offs | (19,593) | (24,181) | (21,139) |
Recoveries | 0 | 0 | 0 |
Initial allowance on loans purchased with credit deterioration | 6 | 662 | 3,273 |
Loan sales | 144 | 0 | 0 |
Balance at end of period | 68,453 | 83,593 | 103,381 |
Private education loans - Non-Nelnet Bank | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance at beginning of period | 15,411 | 16,143 | 19,529 |
Provision (negative provision) for loan losses | 2,865 | 2,487 | (1,333) |
Charge-offs | (3,306) | (3,879) | (2,476) |
Recoveries | 780 | 656 | 721 |
Initial allowance on loans purchased with credit deterioration | 0 | 0 | 0 |
Loan sales | 0 | 4 | (298) |
Balance at end of period | 15,750 | 15,411 | 16,143 |
Consumer loans and other loans - Non-Nelnet Bank | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance at beginning of period | 30,263 | 6,481 | 27,256 |
Provision (negative provision) for loan losses | 49,807 | 38,383 | (4,544) |
Charge-offs | (12,467) | (3,725) | (5,123) |
Recoveries | 1,474 | 592 | 824 |
Initial allowance on loans purchased with credit deterioration | 0 | 0 | 0 |
Loan sales | (57,335) | (11,468) | (11,932) |
Balance at end of period | 11,742 | 30,263 | 6,481 |
Federally insured loans - Nelnet Bank | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance at beginning of period | 170 | 268 | 0 |
Provision (negative provision) for loan losses | (14) | (93) | 268 |
Charge-offs | (12) | (5) | 0 |
Recoveries | 0 | 0 | 0 |
Initial allowance on loans purchased with credit deterioration | 0 | 0 | 0 |
Loan sales | (144) | 0 | 0 |
Balance at end of period | 0 | 170 | 268 |
Private education loans - Nelnet Bank | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance at beginning of period | 2,390 | 840 | 323 |
Provision (negative provision) for loan losses | 2,171 | 1,860 | 526 |
Charge-offs | (1,214) | (306) | (4) |
Recoveries | 0 | 0 | 0 |
Initial allowance on loans purchased with credit deterioration | 0 | 0 | 0 |
Loan sales | 0 | (4) | (5) |
Balance at end of period | 3,347 | 2,390 | $ 840 |
Consumer and other loans - Nelnet Bank | |||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | |||
Balance at beginning of period | 0 | ||
Provision (negative provision) for loan losses | 6,245 | ||
Charge-offs | (1,775) | ||
Recoveries | 881 | ||
Initial allowance on loans purchased with credit deterioration | 0 | ||
Loan sales | 0 | ||
Balance at end of period | $ 5,351 | $ 0 |
Loans and Accrued Interest Re_6
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Net Charge-offs as a Percentage of Average Loans (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Federally insured loans - Non-Nelnet Bank | |||
Financing Receivable, Credit Ratio [Line Items] | |||
Net charge-offs as a percentage of average loans | 0.15% | 0.15% | 0.11% |
Private education loans - Non-Nelnet Bank | |||
Financing Receivable, Credit Ratio [Line Items] | |||
Net charge-offs as a percentage of average loans | 0.99% | 1.18% | 0.55% |
Consumer loans and other loans - Non-Nelnet Bank | |||
Financing Receivable, Credit Ratio [Line Items] | |||
Net charge-offs as a percentage of average loans | 5.67% | 2.05% | 6.21% |
Federally insured loans - Nelnet Bank | |||
Financing Receivable, Credit Ratio [Line Items] | |||
Net charge-offs as a percentage of average loans | 0.02% | 0.01% | 0% |
Private education loans - Nelnet Bank | |||
Financing Receivable, Credit Ratio [Line Items] | |||
Net charge-offs as a percentage of average loans | 0.34% | 0.10% | 0% |
Consumer and other loans - Nelnet Bank | |||
Financing Receivable, Credit Ratio [Line Items] | |||
Net charge-offs as a percentage of average loans | 2.64% | 0% | 0% |
Loans and Accrued Interest Re_7
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans sold | $ 728,100 | $ 167,000 | $ 101,100 |
Gain on sale of loans, net | 39,673 | 2,903 | $ 18,715 |
Consumer Portfolio Segment, Unfunded Private Education Loan Commitments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Liability related to unfunded private education loan commitments | 158 | ||
Unfunded private education loan commitments | 12,300 | ||
Provision for loan losses | $ 73 | $ 73 |
Loans and Accrued Interest Re_8
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Loan Status and Delinquencies (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Loans in repayment status: | ||||
Accrued interest receivable | $ 764,385 | $ 816,864 | ||
Loan premium (discount) | (33,872) | (30,714) | ||
Allowance for loan losses | (104,643) | (131,827) | $ (127,113) | $ (175,698) |
Financing receivable, after allowance for credit loss | 13,108,204 | 15,243,889 | ||
Federally insured loans - Non-Nelnet Bank | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans in-school/grace/deferment | $ 522,304 | $ 637,919 | $ 829,624 | |
Loans in grace and deferment, percent | 4.50% | 4.70% | 4.90% | |
Loans in forbearance | $ 979,588 | $ 1,103,181 | $ 1,118,667 | |
Loans in forbearance, percent | 8.40% | 8.10% | 6.50% | |
Loans in repayment status: | ||||
Loans receivable, gross | $ 11,686,207 | $ 13,566,473 | $ 17,091,047 | |
Total loans in repayment | $ 10,184,315 | $ 11,825,373 | $ 15,142,756 | |
Loans in repayment, percent | 87.10% | 87.20% | 88.60% | |
Total loans in repayment, percentage | 100% | 100% | 100% | |
Total loans, percent | 100% | 100% | 100% | |
Accrued interest receivable | $ 757,713 | $ 808,150 | $ 784,716 | |
Loan premium (discount) | (28,963) | (35,468) | (28,309) | |
Allowance for loan losses | (68,453) | (83,593) | (103,381) | (128,590) |
Financing receivable, after allowance for credit loss | 12,346,504 | 14,255,562 | 17,744,073 | |
Federally insured loans - Non-Nelnet Bank | Loans current | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 8,416,624 | $ 10,173,859 | $ 12,847,685 | |
Loans current, percentage | 82.60% | 86% | 84.90% | |
Federally insured loans - Non-Nelnet Bank | Loans delinquent 31-60 days | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 377,108 | $ 415,305 | $ 895,656 | |
Loans past due, percentage | 3.70% | 3.50% | 5.90% | |
Federally insured loans - Non-Nelnet Bank | Loans delinquent 61-90 days | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 254,553 | $ 253,565 | $ 352,449 | |
Loans past due, percentage | 2.50% | 2.20% | 2.30% | |
Federally insured loans - Non-Nelnet Bank | Loans delinquent 91-120 days | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 187,145 | $ 180,029 | $ 251,075 | |
Loans past due, percentage | 1.90% | 1.50% | 1.70% | |
Federally insured loans - Non-Nelnet Bank | Loans delinquent 121-270 days | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 685,829 | $ 534,410 | $ 592,449 | |
Loans past due, percentage | 6.70% | 4.50% | 3.90% | |
Federally insured loans - Non-Nelnet Bank | Loans delinquent 271 days or greater | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 263,056 | $ 268,205 | $ 203,442 | |
Loans past due, percentage | 2.60% | 2.30% | 1.30% | |
Private education loans - Non-Nelnet Bank | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans in-school/grace/deferment | $ 9,475 | $ 12,756 | $ 9,661 | |
Loans in grace and deferment, percent | 3.40% | 5.10% | 3.20% | |
Loans in forbearance | $ 2,529 | $ 2,017 | $ 3,601 | |
Loans in forbearance, percent | 0.90% | 0.80% | 1.20% | |
Loans in repayment status: | ||||
Loans receivable, gross | $ 277,320 | $ 252,383 | $ 299,442 | |
Total loans in repayment | $ 265,316 | $ 237,610 | $ 286,180 | |
Loans in repayment, percent | 95.70% | 94.10% | 95.60% | |
Total loans in repayment, percentage | 100% | 100% | 100% | |
Total loans, percent | 100% | 100% | 100% | |
Accrued interest receivable | $ 2,653 | $ 2,146 | $ 1,960 | |
Loan premium (discount) | (8,037) | (38) | (1,123) | |
Allowance for loan losses | (15,750) | (15,411) | (16,143) | (19,529) |
Financing receivable, after allowance for credit loss | 256,186 | 239,080 | 284,136 | |
Private education loans - Non-Nelnet Bank | Loans current | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 257,639 | $ 232,539 | $ 280,457 | |
Loans current, percentage | 97.10% | 97.90% | 98% | |
Private education loans - Non-Nelnet Bank | Loans delinquent 31-60 days | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 3,395 | $ 2,410 | $ 2,403 | |
Loans past due, percentage | 1.30% | 1% | 0.80% | |
Private education loans - Non-Nelnet Bank | Loans delinquent 61-90 days | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 1,855 | $ 767 | $ 976 | |
Loans past due, percentage | 0.70% | 0.30% | 0.30% | |
Private education loans - Non-Nelnet Bank | Loans delinquent 91 days or greater | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 2,427 | $ 1,894 | $ 2,344 | |
Loans past due, percentage | 0.90% | 0.80% | 0.90% | |
Consumer loans and other loans - Non-Nelnet Bank | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans in-school/grace/deferment | $ 146 | $ 109 | $ 43 | |
Loans in grace and deferment, percent | 0.20% | 0% | 0.10% | |
Loans in repayment status: | ||||
Loans receivable, gross | $ 85,935 | $ 350,915 | $ 51,301 | |
Total loans in repayment | $ 85,789 | $ 350,806 | $ 51,258 | |
Loans in repayment, percent | 99.80% | 100% | 99.90% | |
Total loans in repayment, percentage | 100% | 100% | 100% | |
Total loans, percent | 100% | 100% | 100% | |
Accrued interest receivable | $ 861 | $ 3,658 | $ 396 | |
Loan premium (discount) | (2,474) | (588) | 913 | |
Allowance for loan losses | (11,742) | (30,263) | (6,481) | (27,256) |
Financing receivable, after allowance for credit loss | 72,580 | 323,722 | 46,129 | |
Consumer loans and other loans - Non-Nelnet Bank | Loans current | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 81,195 | $ 346,812 | $ 49,697 | |
Loans current, percentage | 94.60% | 98.90% | 97% | |
Consumer loans and other loans - Non-Nelnet Bank | Loans delinquent 31-60 days | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 2,035 | $ 1,906 | $ 414 | |
Loans past due, percentage | 2.40% | 0.50% | 0.80% | |
Consumer loans and other loans - Non-Nelnet Bank | Loans delinquent 61-90 days | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 1,189 | $ 764 | $ 322 | |
Loans past due, percentage | 1.40% | 0.20% | 0.60% | |
Consumer loans and other loans - Non-Nelnet Bank | Loans delinquent 91 days or greater | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 1,370 | $ 1,324 | $ 825 | |
Loans past due, percentage | 1.60% | 0.40% | 1.60% | |
Federally insured loans - Nelnet Bank | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans in-school/grace/deferment | $ 241 | $ 330 | ||
Loans in grace and deferment, percent | 0.40% | 0.40% | ||
Loans in forbearance | $ 981 | $ 1,057 | ||
Loans in forbearance, percent | 1.50% | 1.20% | ||
Loans in repayment status: | ||||
Loans receivable, gross | $ 0 | $ 65,913 | $ 88,011 | |
Total loans in repayment | $ 64,691 | $ 86,624 | ||
Loans in repayment, percent | 98.10% | 98.40% | ||
Total loans in repayment, percentage | 100% | 100% | ||
Total loans, percent | 100% | 100% | ||
Accrued interest receivable | $ 1,758 | $ 1,216 | ||
Loan premium (discount) | 20 | 26 | ||
Allowance for loan losses | 0 | (170) | (268) | 0 |
Financing receivable, after allowance for credit loss | 67,521 | 88,985 | ||
Federally insured loans - Nelnet Bank | Loans current | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 63,225 | $ 85,599 | ||
Loans current, percentage | 97.80% | 98.80% | ||
Federally insured loans - Nelnet Bank | Loans delinquent 30-59 days | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 436 | $ 816 | ||
Loans past due, percentage | 0.70% | 1% | ||
Federally insured loans - Nelnet Bank | Loans delinquent 60-89 days | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 466 | $ 0 | ||
Loans past due, percentage | 0.70% | 0% | ||
Federally insured loans - Nelnet Bank | Loans delinquent 90-119 days | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 222 | $ 0 | ||
Loans past due, percentage | 0.30% | 0% | ||
Federally insured loans - Nelnet Bank | Loans delinquent 120-270 days | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 183 | $ 209 | ||
Loans past due, percentage | 0.30% | 0.20% | ||
Federally insured loans - Nelnet Bank | Loans delinquent 271 days or greater | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 159 | $ 0 | ||
Loans past due, percentage | 0.20% | 0% | ||
Private education loans - Nelnet Bank | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans in-school/grace/deferment | $ 25,957 | $ 11,580 | $ 150 | |
Loans in grace and deferment, percent | 7.20% | 3.30% | 0.10% | |
Loans in forbearance | $ 1,285 | $ 864 | $ 460 | |
Loans in forbearance, percent | 0.40% | 0.20% | 0.30% | |
Loans in repayment status: | ||||
Loans receivable, gross | $ 360,520 | $ 353,882 | $ 169,890 | |
Total loans in repayment | $ 333,278 | $ 341,438 | $ 169,280 | |
Loans in repayment, percent | 92.40% | 96.50% | 99.60% | |
Total loans in repayment, percentage | 100% | 100% | 100% | |
Total loans, percent | 100% | 100% | 100% | |
Accrued interest receivable | $ 2,023 | $ 1,152 | $ 264 | |
Loan premium (discount) | 5,608 | 5,360 | 2,560 | |
Allowance for loan losses | (3,347) | (2,390) | (840) | $ (323) |
Financing receivable, after allowance for credit loss | 364,804 | 358,004 | 171,874 | |
Private education loans - Nelnet Bank | Loans current | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 331,580 | $ 340,830 | $ 169,157 | |
Loans current, percentage | 99.40% | 99.80% | 99.90% | |
Private education loans - Nelnet Bank | Loans delinquent 30-59 days | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 839 | $ 167 | $ 51 | |
Loans past due, percentage | 0.30% | 0.10% | 0% | |
Private education loans - Nelnet Bank | Loans delinquent 60-89 days | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 253 | $ 32 | $ 0 | |
Loans past due, percentage | 0.10% | 0% | 0% | |
Private education loans - Nelnet Bank | Loans delinquent 90 days or greater | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 606 | $ 409 | $ 72 | |
Loans past due, percentage | 0.20% | 0.10% | 0.10% | |
Consumer and other loans - Nelnet Bank | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans in-school/grace/deferment | $ 103 | |||
Loans in grace and deferment, percent | 0.10% | |||
Loans in repayment status: | ||||
Loans receivable, gross | $ 72,352 | $ 0 | ||
Total loans in repayment | $ 72,249 | |||
Loans in repayment, percent | 99.90% | |||
Total loans in repayment, percentage | 100% | |||
Total loans, percent | 100% | |||
Accrued interest receivable | $ 575 | |||
Loan premium (discount) | (6) | |||
Allowance for loan losses | (5,351) | $ 0 | ||
Financing receivable, after allowance for credit loss | 67,570 | |||
Consumer and other loans - Nelnet Bank | Loans current | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 69,584 | |||
Loans current, percentage | 96.30% | |||
Consumer and other loans - Nelnet Bank | Loans delinquent 30-59 days | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 1,075 | |||
Loans past due, percentage | 1.50% | |||
Consumer and other loans - Nelnet Bank | Loans delinquent 60-89 days | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 941 | |||
Loans past due, percentage | 1.30% | |||
Consumer and other loans - Nelnet Bank | Loans delinquent 90 days or greater | ||||
Loans in repayment status: | ||||
Loans receivable, gross | $ 649 | |||
Loans past due, percentage | 0.90% |
Loans and Accrued Interest Re_9
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Nelnet Bank's Private Education Loans by FICO Score at Origination (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Private education loans - Nelnet Bank | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | $ 46,907 | $ 209,846 | |
Fiscal year before current fiscal year | 190,466 | 133,788 | |
Fiscal year two years before current fiscal year | 114,278 | 10,248 | |
Fiscal year three years before current fiscal year | 8,869 | ||
Total loans | 360,520 | 353,882 | $ 169,890 |
Private education loans - Nelnet Bank | Less than 705 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 3,840 | 5,898 | |
Fiscal year before current fiscal year | 5,495 | 5,389 | |
Fiscal year two years before current fiscal year | 4,647 | 348 | |
Fiscal year three years before current fiscal year | 386 | ||
Total loans | 14,368 | 11,635 | |
Private education loans - Nelnet Bank | 705 - 734 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 9,534 | 23,392 | |
Fiscal year before current fiscal year | 21,961 | 10,543 | |
Fiscal year two years before current fiscal year | 8,805 | 542 | |
Fiscal year three years before current fiscal year | 525 | ||
Total loans | 40,825 | 34,477 | |
Private education loans - Nelnet Bank | 735 - 764 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 8,648 | 35,456 | |
Fiscal year before current fiscal year | 32,969 | 16,686 | |
Fiscal year two years before current fiscal year | 14,910 | 1,473 | |
Fiscal year three years before current fiscal year | 1,358 | ||
Total loans | 57,885 | 53,615 | |
Private education loans - Nelnet Bank | 765 - 794 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 5,776 | 57,141 | |
Fiscal year before current fiscal year | 52,045 | 31,035 | |
Fiscal year two years before current fiscal year | 27,221 | 1,622 | |
Fiscal year three years before current fiscal year | 1,374 | ||
Total loans | 86,416 | 89,798 | |
Private education loans - Nelnet Bank | Greater than 794 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 15,057 | 87,959 | |
Fiscal year before current fiscal year | 77,996 | 70,135 | |
Fiscal year two years before current fiscal year | 58,695 | 6,263 | |
Fiscal year three years before current fiscal year | 5,226 | ||
Total loans | 156,974 | 164,357 | |
Private education loans - Nelnet Bank | No FICO score available or required | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 4,052 | ||
Fiscal year before current fiscal year | 0 | ||
Fiscal year two years before current fiscal year | 0 | ||
Fiscal year three years before current fiscal year | 0 | ||
Total loans | 4,052 | ||
Consumer and other loans - Nelnet Bank | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 71,853 | ||
Fiscal year before current fiscal year | 444 | ||
Fiscal year two years before current fiscal year | 55 | ||
Fiscal year three years before current fiscal year | 0 | ||
Total loans | 72,352 | $ 0 | |
Consumer and other loans - Nelnet Bank | Less than 720 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 21,412 | ||
Fiscal year before current fiscal year | 0 | ||
Fiscal year two years before current fiscal year | 0 | ||
Total loans | 21,412 | ||
Consumer and other loans - Nelnet Bank | 720 - 769 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 33,571 | ||
Fiscal year before current fiscal year | 51 | ||
Fiscal year two years before current fiscal year | 0 | ||
Total loans | 33,622 | ||
Consumer and other loans - Nelnet Bank | Greater than 769 | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 16,484 | ||
Fiscal year before current fiscal year | 109 | ||
Fiscal year two years before current fiscal year | 0 | ||
Total loans | 16,593 | ||
Consumer and other loans - Nelnet Bank | No FICO score available or required | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Current fiscal year | 386 | ||
Fiscal year before current fiscal year | 284 | ||
Fiscal year two years before current fiscal year | 55 | ||
Total loans | $ 725 |
Loans and Accrued Interest R_10
Loans and Accrued Interest Receivable and Allowance for Loan Losses - Loans by Year of Origination (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Accrued interest receivable | $ 764,385 | $ 816,864 | ||
Loan premium (discount) | (33,872) | (30,714) | ||
Allowance for loan losses | (104,643) | (131,827) | $ (127,113) | $ (175,698) |
Financing receivable, after allowance for credit loss | 13,108,204 | 15,243,889 | ||
Private education loans - Non-Nelnet Bank | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 211 | |||
2022 | 5,378 | |||
2021 | 9,165 | |||
Fiscal year three years before current fiscal year | 47,435 | |||
2019 | 40,161 | |||
Prior years | 174,970 | |||
Total loans | 277,320 | 252,383 | 299,442 | |
Accrued interest receivable | 2,653 | 2,146 | 1,960 | |
Loan premium (discount) | (8,037) | (38) | (1,123) | |
Allowance for loan losses | (15,750) | (15,411) | (16,143) | (19,529) |
Financing receivable, after allowance for credit loss | 256,186 | 239,080 | 284,136 | |
Current period gross charge-offs, current fiscal year | 0 | |||
Current period gross charge-offs, fiscal year before current fiscal year | 39 | |||
Current period gross charge-offs, two years before current fiscal year | 10 | |||
Current period gross charge-offs, three years before current fiscal year | 297 | |||
Current period gross charge-offs, more than five years before current fiscal year | 615 | |||
Current period gross charge-offs, total | 2,345 | |||
Current period gross charge-offs, total | 3,306 | |||
Private education loans - Non-Nelnet Bank | Loans current | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 257,639 | 232,539 | 280,457 | |
Private education loans - Non-Nelnet Bank | Loans delinquent 31-60 days | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 3,395 | 2,410 | 2,403 | |
Private education loans - Non-Nelnet Bank | Loans delinquent 61-90 days | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 1,855 | 767 | 976 | |
Private education loans - Non-Nelnet Bank | Loans delinquent 91 days or greater | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 2,427 | 1,894 | 2,344 | |
Private education loans - Non-Nelnet Bank | Loans in-school/grace/deferment | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 0 | |||
2022 | 832 | |||
2021 | 4,029 | |||
Fiscal year three years before current fiscal year | 779 | |||
2019 | 1,279 | |||
Prior years | 2,556 | |||
Total loans | 9,475 | |||
Private education loans - Non-Nelnet Bank | Loans in forbearance | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 0 | |||
2022 | 83 | |||
2021 | 26 | |||
Fiscal year three years before current fiscal year | 603 | |||
2019 | 324 | |||
Prior years | 1,493 | |||
Total loans | 2,529 | |||
Private education loans - Non-Nelnet Bank | Loans in repayment status: | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 211 | |||
2022 | 4,463 | |||
2021 | 5,110 | |||
Fiscal year three years before current fiscal year | 46,053 | |||
2019 | 38,558 | |||
Prior years | 170,921 | |||
Total loans | 265,316 | |||
Private education loans - Non-Nelnet Bank | Loans in repayment status: | Loans current | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 211 | |||
2022 | 4,450 | |||
2021 | 4,928 | |||
Fiscal year three years before current fiscal year | 45,341 | |||
2019 | 38,213 | |||
Prior years | 164,496 | |||
Total loans | 257,639 | |||
Private education loans - Non-Nelnet Bank | Loans in repayment status: | Loans delinquent 31-60 days | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 0 | |||
2022 | 6 | |||
2021 | 102 | |||
Fiscal year three years before current fiscal year | 424 | |||
2019 | 232 | |||
Prior years | 2,631 | |||
Total loans | 3,395 | |||
Private education loans - Non-Nelnet Bank | Loans in repayment status: | Loans delinquent 61-90 days | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 0 | |||
2022 | 7 | |||
2021 | 57 | |||
Fiscal year three years before current fiscal year | 218 | |||
2019 | 113 | |||
Prior years | 1,460 | |||
Total loans | 1,855 | |||
Private education loans - Non-Nelnet Bank | Loans in repayment status: | Loans delinquent 91 days or greater | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 0 | |||
2022 | 0 | |||
2021 | 23 | |||
Fiscal year three years before current fiscal year | 70 | |||
2019 | 0 | |||
Prior years | 2,334 | |||
Total loans | 2,427 | |||
Consumer loans and other loans - Non-Nelnet Bank | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 76,340 | |||
2022 | 7,743 | |||
2021 | 1,033 | |||
Fiscal year three years before current fiscal year | 361 | |||
2019 | 412 | |||
Prior years | 46 | |||
Total loans | 85,935 | 350,915 | 51,301 | |
Accrued interest receivable | 861 | 3,658 | 396 | |
Loan premium (discount) | (2,474) | (588) | 913 | |
Allowance for loan losses | (11,742) | (30,263) | (6,481) | (27,256) |
Financing receivable, after allowance for credit loss | 72,580 | 323,722 | 46,129 | |
Current period gross charge-offs, current fiscal year | 3,995 | |||
Current period gross charge-offs, fiscal year before current fiscal year | 6,850 | |||
Current period gross charge-offs, two years before current fiscal year | 830 | |||
Current period gross charge-offs, three years before current fiscal year | 36 | |||
Current period gross charge-offs, more than five years before current fiscal year | 292 | |||
Current period gross charge-offs, total | 464 | |||
Current period gross charge-offs, total | 12,467 | |||
Consumer loans and other loans - Non-Nelnet Bank | Loans current | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 81,195 | 346,812 | 49,697 | |
Consumer loans and other loans - Non-Nelnet Bank | Loans delinquent 31-60 days | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 2,035 | 1,906 | 414 | |
Consumer loans and other loans - Non-Nelnet Bank | Loans delinquent 61-90 days | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 1,189 | 764 | 322 | |
Consumer loans and other loans - Non-Nelnet Bank | Loans delinquent 91 days or greater | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 1,370 | 1,324 | 825 | |
Consumer loans and other loans - Non-Nelnet Bank | Loans in-school/grace/deferment | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 146 | |||
2022 | 0 | |||
2021 | 0 | |||
Fiscal year three years before current fiscal year | 0 | |||
2019 | 0 | |||
Prior years | 0 | |||
Total loans | 146 | |||
Consumer loans and other loans - Non-Nelnet Bank | Loans in repayment status: | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 76,194 | |||
2022 | 7,743 | |||
2021 | 1,033 | |||
Fiscal year three years before current fiscal year | 361 | |||
2019 | 412 | |||
Prior years | 46 | |||
Total loans | 85,789 | |||
Consumer loans and other loans - Non-Nelnet Bank | Loans in repayment status: | Loans current | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 74,677 | |||
2022 | 5,170 | |||
2021 | 590 | |||
Fiscal year three years before current fiscal year | 330 | |||
2019 | 386 | |||
Prior years | 42 | |||
Total loans | 81,195 | |||
Consumer loans and other loans - Non-Nelnet Bank | Loans in repayment status: | Loans delinquent 31-60 days | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 764 | |||
2022 | 973 | |||
2021 | 291 | |||
Fiscal year three years before current fiscal year | 0 | |||
2019 | 5 | |||
Prior years | 2 | |||
Total loans | 2,035 | |||
Consumer loans and other loans - Non-Nelnet Bank | Loans in repayment status: | Loans delinquent 61-90 days | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 329 | |||
2022 | 759 | |||
2021 | 73 | |||
Fiscal year three years before current fiscal year | 25 | |||
2019 | 3 | |||
Prior years | 0 | |||
Total loans | 1,189 | |||
Consumer loans and other loans - Non-Nelnet Bank | Loans in repayment status: | Loans delinquent 91 days or greater | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 424 | |||
2022 | 841 | |||
2021 | 79 | |||
Fiscal year three years before current fiscal year | 6 | |||
2019 | 18 | |||
Prior years | 2 | |||
Total loans | 1,370 | |||
Private education loans - Nelnet Bank | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 46,907 | 209,846 | ||
2022 | 190,466 | 133,788 | ||
2021 | 114,278 | 10,248 | ||
Fiscal year three years before current fiscal year | 8,869 | |||
2019 | 0 | |||
Prior years | 0 | |||
Total loans | 360,520 | 353,882 | 169,890 | |
Accrued interest receivable | 2,023 | 1,152 | 264 | |
Loan premium (discount) | 5,608 | 5,360 | 2,560 | |
Deferred origination costs, net of unaccreted discount | 5,608 | |||
Allowance for loan losses | (3,347) | (2,390) | (840) | $ (323) |
Financing receivable, after allowance for credit loss | 364,804 | 358,004 | 171,874 | |
Current period gross charge-offs, current fiscal year | 23 | |||
Current period gross charge-offs, fiscal year before current fiscal year | 869 | |||
Current period gross charge-offs, two years before current fiscal year | 285 | |||
Current period gross charge-offs, three years before current fiscal year | 37 | |||
Current period gross charge-offs, more than five years before current fiscal year | 0 | |||
Current period gross charge-offs, total | 0 | |||
Current period gross charge-offs, total | 1,214 | |||
Private education loans - Nelnet Bank | Loans current | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 331,580 | 340,830 | 169,157 | |
Private education loans - Nelnet Bank | Loans delinquent 30-59 days | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 839 | 167 | 51 | |
Private education loans - Nelnet Bank | Loans delinquent 60-89 days | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 253 | 32 | 0 | |
Private education loans - Nelnet Bank | Loans delinquent 90 days or greater | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 606 | 409 | $ 72 | |
Private education loans - Nelnet Bank | Loans in-school/grace/deferment | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 14,410 | |||
2022 | 10,315 | |||
2021 | 708 | |||
Fiscal year three years before current fiscal year | 524 | |||
2019 | 0 | |||
Prior years | 0 | |||
Total loans | 25,957 | |||
Private education loans - Nelnet Bank | Loans in forbearance | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 230 | |||
2022 | 786 | |||
2021 | 269 | |||
Fiscal year three years before current fiscal year | 0 | |||
2019 | 0 | |||
Prior years | 0 | |||
Total loans | 1,285 | |||
Private education loans - Nelnet Bank | Loans in repayment status: | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 32,267 | |||
2022 | 179,365 | |||
2021 | 113,301 | |||
Fiscal year three years before current fiscal year | 8,345 | |||
2019 | 0 | |||
Prior years | 0 | |||
Total loans | 333,278 | |||
Private education loans - Nelnet Bank | Loans in repayment status: | Loans current | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 31,940 | |||
2022 | 178,700 | |||
2021 | 112,619 | |||
Fiscal year three years before current fiscal year | 8,321 | |||
2019 | 0 | |||
Prior years | 0 | |||
Total loans | 331,580 | |||
Private education loans - Nelnet Bank | Loans in repayment status: | Loans delinquent 30-59 days | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 147 | |||
2022 | 248 | |||
2021 | 420 | |||
Fiscal year three years before current fiscal year | 24 | |||
2019 | 0 | |||
Prior years | 0 | |||
Total loans | 839 | |||
Private education loans - Nelnet Bank | Loans in repayment status: | Loans delinquent 60-89 days | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 49 | |||
2022 | 131 | |||
2021 | 73 | |||
Fiscal year three years before current fiscal year | 0 | |||
2019 | 0 | |||
Prior years | 0 | |||
Total loans | 253 | |||
Private education loans - Nelnet Bank | Loans in repayment status: | Loans delinquent 90 days or greater | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 131 | |||
2022 | 286 | |||
2021 | 189 | |||
Fiscal year three years before current fiscal year | 0 | |||
2019 | 0 | |||
Prior years | 0 | |||
Total loans | 606 | |||
Consumer and other loans - Nelnet Bank | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 71,853 | |||
2022 | 444 | |||
2021 | 55 | |||
Fiscal year three years before current fiscal year | 0 | |||
2019 | 0 | |||
Prior years | 0 | |||
Total loans | 72,352 | 0 | ||
Accrued interest receivable | 575 | |||
Loan premium (discount) | (6) | |||
Allowance for loan losses | (5,351) | $ 0 | ||
Financing receivable, after allowance for credit loss | 67,570 | |||
Current period gross charge-offs, current fiscal year | 1,775 | |||
Current period gross charge-offs, fiscal year before current fiscal year | 0 | |||
Current period gross charge-offs, two years before current fiscal year | 0 | |||
Current period gross charge-offs, three years before current fiscal year | 0 | |||
Current period gross charge-offs, more than five years before current fiscal year | 0 | |||
Current period gross charge-offs, total | 0 | |||
Current period gross charge-offs, total | 1,775 | |||
Consumer and other loans - Nelnet Bank | Loans current | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 69,584 | |||
Consumer and other loans - Nelnet Bank | Loans delinquent 30-59 days | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 1,075 | |||
Consumer and other loans - Nelnet Bank | Loans delinquent 60-89 days | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 941 | |||
Consumer and other loans - Nelnet Bank | Loans delinquent 90 days or greater | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
Total loans | 649 | |||
Consumer and other loans - Nelnet Bank | Consumer And Other Loans In Deferment | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 103 | |||
2022 | 0 | |||
2021 | 0 | |||
Fiscal year three years before current fiscal year | 0 | |||
2019 | 0 | |||
Prior years | 0 | |||
Total loans | 103 | |||
Consumer and other loans - Nelnet Bank | Consumer And Other Loans In Repayment | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 71,750 | |||
2022 | 444 | |||
2021 | 55 | |||
Fiscal year three years before current fiscal year | 0 | |||
2019 | 0 | |||
Prior years | 0 | |||
Total loans | 72,249 | |||
Consumer and other loans - Nelnet Bank | Consumer And Other Loans In Repayment | Loans current | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 69,085 | |||
2022 | 444 | |||
2021 | 55 | |||
Fiscal year three years before current fiscal year | 0 | |||
2019 | 0 | |||
Prior years | 0 | |||
Total loans | 69,584 | |||
Consumer and other loans - Nelnet Bank | Consumer And Other Loans In Repayment | Loans delinquent 30-59 days | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 1,075 | |||
2022 | 0 | |||
2021 | 0 | |||
Fiscal year three years before current fiscal year | 0 | |||
2019 | 0 | |||
Prior years | 0 | |||
Total loans | 1,075 | |||
Consumer and other loans - Nelnet Bank | Consumer And Other Loans In Repayment | Loans delinquent 60-89 days | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 941 | |||
2022 | 0 | |||
2021 | 0 | |||
Fiscal year three years before current fiscal year | 0 | |||
2019 | 0 | |||
Prior years | 0 | |||
Total loans | 941 | |||
Consumer and other loans - Nelnet Bank | Consumer And Other Loans In Repayment | Loans delinquent 90 days or greater | ||||
Financing Receivable, Credit Quality Indicator [Line Items] | ||||
2023 | 649 | |||
2022 | 0 | |||
2021 | 0 | |||
Fiscal year three years before current fiscal year | 0 | |||
2019 | 0 | |||
Prior years | 0 | |||
Total loans | $ 649 |
Bonds and Notes Payable - Outst
Bonds and Notes Payable - Outstanding Debt Obligations (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Bonds and notes payable, gross | $ 11,918,158 | $ 14,785,283 |
Discount on bonds and notes payable and debt issuance costs | (89,765) | (148,088) |
Total | 11,828,393 | 14,637,195 |
Unsecured line of credit | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable, gross | $ 0 | $ 0 |
Interest rate | 0% | 0% |
Participation agreements | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable, gross | $ 10,063 | $ 395,432 |
Interest rate | 5.02% | |
Repurchase agreement | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable, gross | 208,164 | $ 567,254 |
Other - due to related party | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable, gross | 5,778 | 6,187 |
Federally insured | Bonds and notes based on indices | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable, gross | 9,552,667 | 11,868,190 |
Federally insured | Bonds and notes based on auction | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable, gross | 87,360 | 178,960 |
Federally insured | Variable-rate bonds and notes | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable, gross | 9,640,027 | 12,047,150 |
Federally insured | Fixed rate bonds and notes | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable, gross | 471,427 | 594,051 |
Federally insured | Warehouse facilities | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable, gross | 1,398,485 | 978,956 |
Private education | Variable-rate bonds and notes | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable, gross | 80,393 | 19,865 |
Private education | Fixed rate bonds and notes | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable, gross | 80,130 | 23,032 |
Private education | Warehouse facilities | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable, gross | $ 64,356 | |
Interest rate | 4.72% | |
Consumer loans | Warehouse facilities | ||
Debt Instrument [Line Items] | ||
Bonds and notes payable, gross | $ 23,691 | $ 89,000 |
Interest rate | 5.70% | 4.73% |
Minimum | Participation agreements | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.58% | |
Minimum | Repurchase agreement | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.35% | 0.97% |
Minimum | Other - due to related party | ||
Debt Instrument [Line Items] | ||
Interest rate | 5% | 3.55% |
Minimum | Federally insured | Bonds and notes based on indices | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.45% | 4.47% |
Minimum | Federally insured | Bonds and notes based on auction | ||
Debt Instrument [Line Items] | ||
Interest rate | 0% | 0% |
Minimum | Federally insured | Fixed rate bonds and notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 1.42% | 1.42% |
Minimum | Federally insured | Warehouse facilities | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.41% | 4.69% |
Minimum | Private education | Variable-rate bonds and notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.90% | 5.90% |
Minimum | Private education | Fixed rate bonds and notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.35% | 3.60% |
Maximum | Participation agreements | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.08% | |
Maximum | Repurchase agreement | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.81% | 5.60% |
Maximum | Other - due to related party | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.05% | 6.05% |
Maximum | Federally insured | Bonds and notes based on indices | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.47% | 6.39% |
Maximum | Federally insured | Bonds and notes based on auction | ||
Debt Instrument [Line Items] | ||
Interest rate | 6.45% | 4.02% |
Maximum | Federally insured | Fixed rate bonds and notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 3.45% | 3.45% |
Maximum | Federally insured | Warehouse facilities | ||
Debt Instrument [Line Items] | ||
Interest rate | 5.70% | 4.71% |
Maximum | Private education | Variable-rate bonds and notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.57% | 6.14% |
Maximum | Private education | Fixed rate bonds and notes | ||
Debt Instrument [Line Items] | ||
Interest rate | 7.15% | 5.35% |
Bonds and Notes Payable - Out_2
Bonds and Notes Payable - Outstanding Lines of Credit (Details) - Secured line of credit - Warehouse facilities $ in Thousands | 12 Months Ended |
Dec. 31, 2023 USD ($) | |
FFELP Warehouse Facilities | |
Line of Credit Facility [Line Items] | |
Maximum financing amount | $ 1,682,000 |
Amount outstanding | 1,398,485 |
Amount available | 283,515 |
Advanced as equity support | 102,694 |
FFELP Warehouse Facility Due November 2024 | |
Line of Credit Facility [Line Items] | |
Maximum financing amount | 1,250,000 |
Amount outstanding | 1,016,023 |
Amount available | 233,977 |
Advanced as equity support | $ 70,739 |
Advance rate, maximum, lower range | 90% |
Advance rate, maximum, higher range | 96% |
Advance rate, minimum, lower range | 84% |
Advance rate, minimum, higher range | 90% |
FFELP Warehouse Facility Due April 2025 | |
Line of Credit Facility [Line Items] | |
Maximum financing amount | $ 432,000 |
Amount outstanding | 382,462 |
Amount available | $ 49,538 |
Advance rate | 92% |
Advanced as equity support | $ 31,955 |
Consumer Loan Warehouse Facility | |
Line of Credit Facility [Line Items] | |
Maximum financing amount | 200,000 |
Amount outstanding | 23,691 |
Amount available | $ 176,309 |
Advance rate | 70% |
Advanced as equity support | $ 10,352 |
Bonds and Notes Payable - Narra
Bonds and Notes Payable - Narrative (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Jun. 30, 2023 | Dec. 31, 2023 | Dec. 31, 2021 | Dec. 21, 2023 | Nov. 16, 2023 | Dec. 31, 2022 | |
Debt Instrument [Line Items] | ||||||
Amount of participation, student loan asset-backed securities at par value | $ 63,000 | $ 395,400,000 | ||||
Other borrowing agreement, termination notice period | 5 days | |||||
Bonds and notes payable, gross | $ 11,918,158,000 | 14,785,283,000 | ||||
Other borrowings, maximum | $ 400,000,000 | |||||
Repurchase agreements, contractual maturity adjustment, written notice period | 180 days | |||||
Repurchase agreements, amount collateralized by private education loan asset-backed securities | $ 208,200,000 | 299,800,000 | ||||
Additional repurchase agreement, amount collateralized by private education loan asset-backed securities | 267,500,000 | |||||
Amount drawn on federal funds lines of credit | 0 | $ 0 | ||||
Decrease in interest on bonds, notes payable, and bank deposits | $ 23,800,000 | |||||
Par value of asset-based securities | 955,903,000 | |||||
Asset-backed Securities, Securitized Loans and Receivables | ||||||
Debt Instrument [Line Items] | ||||||
Par value of asset-based securities | 312,000,000 | |||||
Asset-based securities serving as collateral on secured debt repurchase agreements | 118,900,000 | |||||
Private Education Loan Asset-Backed Securitization | Secured line of credit | ||||||
Debt Instrument [Line Items] | ||||||
Debt, face amount | $ 189,600,000 | |||||
Consumer Loan Warehouse Facility | Warehouse facilities | Secured line of credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum financing amount | 200,000,000 | |||||
Amount outstanding | 23,691,000 | |||||
Amount available | 176,309,000 | |||||
Unsecured Line of Credit | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Amount outstanding | 0 | |||||
Amount available | 495,000,000 | |||||
Unsecured Line of Credit | Unsecured line of credit | Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum financing amount | 495,000,000 | |||||
Federal Funds Lines Of Credit With Correspondent Banks | Line of Credit | Federal Funds Purchased | ||||||
Debt Instrument [Line Items] | ||||||
Maximum financing amount | 40,000,000 | |||||
Federal Funds Lines Of Credit With Federal Reserve Bank | Line of Credit | Federal Funds Purchased | ||||||
Debt Instrument [Line Items] | ||||||
Collateral amount | 145,000,000 | |||||
Federal Family Education Loan Program (FFELP) Loan Asset-Backed Securities | Secured line of credit | ||||||
Debt Instrument [Line Items] | ||||||
Payments to extinguish debt | $ 188,600,000 | |||||
Payments to extinguish debt, bonds owned by entity | 140,500,000 | |||||
Write off of unamortized debt discount | $ 25,900,000 | |||||
Participation agreements | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 5.02% | |||||
Bonds and notes payable, gross | $ 10,063,000 | $ 395,432,000 | ||||
Participation agreements | Minimum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 5.58% | |||||
Participation agreements | Maximum | ||||||
Debt Instrument [Line Items] | ||||||
Interest rate | 6.08% | |||||
Participation agreements | Secured line of credit | ||||||
Debt Instrument [Line Items] | ||||||
Bonds and notes payable, gross | $ 10,000,000 |
Bonds and Notes Payable - Long-
Bonds and Notes Payable - Long-term Debt Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Debt Disclosure [Abstract] | ||
2024 | $ 218,505 | |
2025 | 1,422,176 | |
2026 | 0 | |
2027 | 275 | |
2028 | 3,754 | |
2029 and thereafter | 10,273,448 | |
Bonds and notes payable, gross | $ 11,918,158 | $ 14,785,283 |
Bonds and Notes Payable - Debt
Bonds and Notes Payable - Debt Repurchased (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |||
Purchase price | $ (5,112) | $ (67,081) | $ (407,487) |
Par value | 5,941 | 69,133 | 406,875 |
Remaining unamortized cost of issuance | (14) | (821) | (6,163) |
Gain (loss), net | $ 815 | $ 1,231 | $ (6,775) |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Loans and accrued interest receivable | $ 13,108,204 | $ 15,243,889 | |
Basis Swap | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Variable interest rate spread | 0.101% | ||
Basis Swap | London Interbank Offered Rate (LIBOR) | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Variable interest rate spread | 0.097% | ||
Interest Rate Swap, Nelnet Bank | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Derivative asset, gross fair value | $ 500 | ||
Derivative liability, gross fair value | 2,000 | ||
Interest Rate Swap , Non-Nelnet Bank | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Student loan assets, fixed floor income | 300,000 | $ 900,000 | $ 7,200,000 |
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate, 30 Day Average, Reset Daily | Basis Swap | Nelnet Bank | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Loans and accrued interest receivable | 10,900,000 | ||
Three-month commercial paper rate | Basis Swap | Nelnet Bank | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Loans and accrued interest receivable | 400,000 | ||
Three-month treasury bill, Daily reset | Basis Swap | Nelnet Bank | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Loans and accrued interest receivable | 400,000 | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate, 90 Day Average, 3 Month CME Term, Reset Quarterly | Basis Swap | Nelnet Bank | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Bonds and notes payable | 2,800,000 | ||
Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate, 30 Day Average, 1 Month CME Term, Reset Monthly | Basis Swap | Nelnet Bank | |||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||
Bonds and notes payable | $ 6,800,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Outstanding Basis Swap (Details) - USD ($) | Dec. 31, 2023 | Dec. 31, 2022 |
Basis Swap | ||
Derivative [Line Items] | ||
Notional amount | $ 3,150,000,000 | $ 3,900,000,000 |
2023 | ||
Derivative [Line Items] | ||
Notional amount | 0 | 750,000,000 |
2024 | ||
Derivative [Line Items] | ||
Notional amount | 1,750,000,000 | 1,750,000,000 |
2026 | ||
Derivative [Line Items] | ||
Notional amount | 1,150,000,000 | 1,150,000,000 |
2027 | ||
Derivative [Line Items] | ||
Notional amount | $ 250,000,000 | $ 250,000,000 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Interest Rate Swaps, Floor Income Hedge (Details) - USD ($) | 12 Months Ended | ||
Mar. 15, 2023 | Dec. 31, 2022 | Dec. 31, 2023 | |
Interest Rate Swap , Non-Nelnet Bank | |||
Derivative [Line Items] | |||
Notional amount | $ 2,800,000,000 | $ 400,000,000 | |
Weighted average fixed rate paid by the Company | 0.70% | 3.71% | |
Derivative, notional amount, terminated | $ 2,800,000,000 | $ 2,400,000,000 | |
Cash received or receivable from derivative | 183,200,000 | ||
Proceeds for settlement of terminated derivatives | $ 19,100,000 | 91,800,000 | |
2024 | |||
Derivative [Line Items] | |||
Notional amount | $ 2,000,000,000 | $ 0 | |
Weighted average fixed rate paid by the Company | 0.35% | 0% | |
2026 | |||
Derivative [Line Items] | |||
Notional amount | $ 500,000,000 | $ 200,000,000 | |
Weighted average fixed rate paid by the Company | 1.02% | 3.92% | |
2028 | |||
Derivative [Line Items] | |||
Notional amount | $ 0 | $ 50,000,000 | |
Weighted average fixed rate paid by the Company | 0% | 3.56% | |
2029 | |||
Derivative [Line Items] | |||
Notional amount | $ 0 | $ 50,000,000 | |
Weighted average fixed rate paid by the Company | 0% | 3.17% | |
2030 | |||
Derivative [Line Items] | |||
Notional amount | $ 0 | $ 100,000,000 | |
Weighted average fixed rate paid by the Company | 0% | 3.63% | |
Interest Rate Swap, 2030 With November 2025 Effective Start Date | |||
Derivative [Line Items] | |||
Notional amount | $ 50,000,000 | ||
2031 | |||
Derivative [Line Items] | |||
Notional amount | $ 100,000,000 | $ 0 | |
Weighted average fixed rate paid by the Company | 1.53% | 0% | |
2032 | |||
Derivative [Line Items] | |||
Notional amount | $ 200,000,000 | $ 0 | |
Weighted average fixed rate paid by the Company | 2.92% | 0% |
Derivative Financial Instrume_6
Derivative Financial Instruments - Interest Rate Swaps (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Interest Rate Swap, Nelnet Bank | |
Derivative [Line Items] | |
Notional amount | $ 140,000 |
Weighted average fixed rate paid by the Company | 3.46% |
2028 | |
Derivative [Line Items] | |
Notional amount | $ 40,000 |
Weighted average fixed rate paid by the Company | 3.33% |
2030 | |
Derivative [Line Items] | |
Notional amount | $ 50,000 |
Weighted average fixed rate paid by the Company | 3.06% |
Interest Rate Swap, Nelnet Bank, 2030 With Forward Effective Date Of April 2026 | |
Derivative [Line Items] | |
Notional amount | $ 25,000 |
Interest Rate Swap, Nelnet Bank, 2030 With Forward Effective Date Of May 2026 | |
Derivative [Line Items] | |
Notional amount | 25,000 |
2032 | |
Derivative [Line Items] | |
Notional amount | $ 25,000 |
Weighted average fixed rate paid by the Company | 4.03% |
2033 | |
Derivative [Line Items] | |
Notional amount | $ 25,000 |
Weighted average fixed rate paid by the Company | 3.90% |
Derivative Financial Instrume_7
Derivative Financial Instruments - Derivative Impact on Statement of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative settlements, net | $ 25,072 | $ 32,943 | $ (21,367) |
Change in fair value | $ (41,773) | 231,691 | 92,813 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Derivative market value adjustments and derivative settlements, net | ||
Derivative market value adjustments and derivative settlements, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative settlements, net | $ 25,072 | 32,943 | (21,367) |
Derivative market value adjustments and derivative settlements, net - (expense) income | (16,701) | 264,634 | 71,446 |
1:3 basis swaps | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value | (567) | 2,262 | 5,027 |
1:3 basis swaps | Derivative market value adjustments and derivative settlements, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative settlements, net | 1,544 | (206) | (1,638) |
Interest rate swaps - floor income hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value | (39,683) | 229,429 | 87,786 |
Interest rate swaps - floor income hedges | Derivative market value adjustments and derivative settlements, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative settlements, net | 23,044 | 33,149 | (19,729) |
Interest rate swaps - Nelnet Bank | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Change in fair value | (1,523) | 0 | 0 |
Interest rate swaps - Nelnet Bank | Derivative market value adjustments and derivative settlements, net | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative settlements, net | $ 484 | $ 0 | $ 0 |
Investments and Notes Receiva_3
Investments and Notes Receivable - Summary of Investments (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2023 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2020 USD ($) | |
Investments (at fair value): | ||||||
Amortized cost | $ 982,878 | |||||
Fair value | 955,903 | |||||
Fair value | 50,907 | $ 39,082 | ||||
Total investments at fair value | 988,841 | 1,428,119 | ||||
Held to maturity investments | ||||||
Fair value | 162,738 | 18,774 | ||||
Beneficial interest in securitizations | 225,079 | 138,738 | ||||
Notes receivable | 53,747 | 31,106 | ||||
Other investments | 882,127 | 683,798 | ||||
Total investments and notes receivable | 1,870,968 | 2,111,917 | ||||
Loans and accrued interest receivable | 13,108,204 | 15,243,889 | ||||
Bond securities, par value | $ 282,200 | |||||
Retention period after investment securitization | 2 years | |||||
Debt covenant, percent of principle balance debt issue required before liquidation | 0.33 | |||||
Private education loan asset-backed securities subject to repurchase agreements with third-parties, par value | $ 155,900 | |||||
Private education loan asset-backed securities subject to repurchase agreements with third-parties, fair value | 134,100 | |||||
Debt securities, held-to-maturity, transfer from available-for-sale | $ 149,200 | $ 149,200 | ||||
Debt securities, held-to-maturity, transfer from available-for-sale, unrealized loss | $ 3,700 | |||||
Recognized income | 9,120 | 8,584 | $ 8,427 | |||
Private education loans - Non-Nelnet Bank | ||||||
Held to maturity investments | ||||||
Loans and accrued interest receivable | 256,186 | 239,080 | 284,136 | |||
Private education loans - Non-Nelnet Bank | Non-federally insured student loans | Wells Fargo | ||||||
Held to maturity investments | ||||||
Loans and accrued interest receivable | $ 10,000,000 | |||||
Asset-Backed Securities, Available-For-Sale, Federal Family Education Loan Program (FFELP) Loans, Restricted Investments | ||||||
Investments (at fair value): | ||||||
Amortized cost | 16,993 | 0 | ||||
Gross unrealized gains | 1,069 | 0 | ||||
Gross unrealized losses | (93) | 0 | ||||
Fair value | 17,969 | 0 | ||||
Asset-Backed Securities, Available-For-Sale, Non-Nelnet And Nelnet Bank | ||||||
Investments (at fair value): | ||||||
Amortized cost | 965,885 | 1,441,630 | ||||
Gross unrealized gains | 11,528 | 4,622 | ||||
Gross unrealized losses | (39,479) | (57,215) | ||||
Fair value | 937,934 | 1,389,037 | ||||
Asset-Backed Securities, Available-For-Sale, Non-Nelnet Bank | ||||||
Investments (at fair value): | ||||||
Amortized cost | 594,963 | 958,353 | ||||
Gross unrealized gains | 6,903 | 3,649 | ||||
Gross unrealized losses | (35,542) | (44,333) | ||||
Fair value | 566,324 | 917,669 | ||||
Asset-Backed Securities, Available-For-Sale, Federal Family Education Loan Program (FFELP) Loans, Non-Nelnet Bank | ||||||
Investments (at fair value): | ||||||
Amortized cost | 271,479 | 463,861 | ||||
Gross unrealized gains | 4,883 | 3,498 | ||||
Gross unrealized losses | (5,393) | (11,105) | ||||
Fair value | 270,969 | 456,254 | ||||
Asset-Backed Securities, Available-For-Sale, Private Education Loans, Non-Nelnet Bank | ||||||
Investments (at fair value): | ||||||
Amortized cost | 281,791 | 335,903 | ||||
Gross unrealized gains | 0 | 0 | ||||
Gross unrealized losses | (28,874) | (29,438) | ||||
Fair value | 252,917 | 306,465 | ||||
Asset-Backed Securities, Available-For-Sale, Other, Non-Nelnet Bank | ||||||
Investments (at fair value): | ||||||
Amortized cost | 41,693 | 158,589 | ||||
Gross unrealized gains | 2,020 | 151 | ||||
Gross unrealized losses | (1,275) | (3,790) | ||||
Fair value | 42,438 | 154,950 | ||||
Asset-Backed Securities, Available-For-Sale, Nelnet Bank | ||||||
Investments (at fair value): | ||||||
Amortized cost | 370,922 | 483,277 | ||||
Gross unrealized gains | 4,625 | 973 | ||||
Gross unrealized losses | (3,937) | (12,882) | ||||
Fair value | 371,610 | 471,368 | ||||
Asset-Backed Securities, Available-For-Sale, Federal Family Education Loan Program (FFELP) Loans, Nelnet Bank | ||||||
Investments (at fair value): | ||||||
Amortized cost | 321,638 | 349,855 | ||||
Gross unrealized gains | 4,508 | 955 | ||||
Gross unrealized losses | (2,296) | (8,853) | ||||
Fair value | 323,850 | 341,957 | ||||
Asset-Backed Securities, Available-For-Sale, Other, Nelnet Bank | ||||||
Investments (at fair value): | ||||||
Amortized cost | 49,284 | 133,422 | ||||
Gross unrealized gains | 117 | 18 | ||||
Gross unrealized losses | (1,641) | (4,029) | ||||
Fair value | 47,760 | 129,411 | ||||
Debt Securities, Held-To-Maturity, Non-Nelnet Bank | ||||||
Held to maturity investments | ||||||
Fair value | 4,700 | 18,554 | ||||
Held-To-Maturity Investments, Nelnet Bank | ||||||
Held to maturity investments | ||||||
Fair value | 158,038 | 220 | ||||
Asset-Backed Securities, Held-To-Maturity, Federal Family Education Loan Program (FFELP) Loans, Nelnet Bank | ||||||
Held to maturity investments | ||||||
Fair value | 158,038 | 0 | ||||
Debt Securities, Held-To-Maturity, Other, Nelnet Bank | ||||||
Held to maturity investments | ||||||
Fair value | 0 | 220 | ||||
Venture capital funds | ||||||
Held to maturity investments | ||||||
Measurement alternative | 194,084 | 160,052 | ||||
Equity method | 91,464 | 89,332 | ||||
Other investments | 285,548 | 249,384 | ||||
Venture capital funds | Hudl | ||||||
Held to maturity investments | ||||||
Measurement alternative | 165,500 | |||||
Payment to acquire additional ownership interests in investment | 31,500 | |||||
Real estate | ||||||
Held to maturity investments | ||||||
Equity method | 103,811 | 80,364 | ||||
Partnership Interest | ||||||
Held to maturity investments | ||||||
Equity method | 10,693 | 67,538 | ||||
Preferred membership interest and accrued and unpaid preferred return | 155,047 | 145,926 | ||||
Other investments | 165,740 | 213,464 | ||||
Additional equity investment | $ 8,400 | |||||
Equity securities, realized loss | 65,300 | 68,000 | 42,100 | |||
Partnership Interest | ALLO | ||||||
Held to maturity investments | ||||||
Preferred membership interest and accrued and unpaid preferred return | 155,000 | |||||
Beneficial interest in consumer loan securitizations | ||||||
Held to maturity investments | ||||||
Beneficial interest in securitizations | 134,113 | 39,249 | ||||
Loans corresponding to beneficial interest | 910,000 | |||||
Beneficial interest in private education loan securitizations | ||||||
Held to maturity investments | ||||||
Beneficial interest in securitizations | 68,372 | 75,261 | ||||
Loans corresponding to beneficial interest | 515,000 | |||||
Beneficial interest in federally insured loan securitizations | ||||||
Held to maturity investments | ||||||
Beneficial interest in securitizations | 22,594 | 24,228 | ||||
Loans corresponding to beneficial interest | 335,000 | |||||
Solar | ||||||
Held to maturity investments | ||||||
Solar | (121,779) | (55,448) | ||||
Tax liens, affordable housing, and other | ||||||
Held to maturity investments | ||||||
Other investments | $ 7,243 | 7,416 | ||||
Preferred Partnership Interest | ||||||
Held to maturity investments | ||||||
Equity method investment, preferred annual return | 6.25% | |||||
Equity method investment, preferred annual, after increase | 10% | |||||
Recognized income | $ 9,100 | $ 8,600 | $ 8,400 |
Investments and Notes Receiva_4
Investments and Notes Receivable - Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Available-for-sale asset-backed securities | ||
Amortized cost, 1 year or less | $ 64,623 | |
Amortized cost, after 1 year through 5 years | 48,294 | |
Amortized cost, after 5 years through 10 years | 98,131 | |
Amortized cost, after 10 years | 771,830 | |
Amortized cost | 982,878 | |
Available-for-sale asset-backed securities, at fair value | ||
Fair value, 1 year or less | 64,596 | |
Fair value, after 1 year through 5 years | 47,514 | |
Fair value, after 5 years through 10 years | 96,757 | |
Fair value, after 10 years | 747,036 | |
Total | 955,903 | |
Held to maturity investments | ||
Amortized cost, 1 year or less | 4,700 | |
Amortized cost, after 1 year through 5 years | 3,452 | |
Amortized cost, after 5 years through 10 years | 1,524 | |
Amortized cost, after 10 years | 153,062 | |
Total | 162,738 | $ 18,774 |
Held to maturity investments, at fair value | ||
Fair value, 1 year or less | 4,700 | |
Fair value, after 1 year through 5 years | 3,506 | |
Fair value, after 5 years through 10 years | 1,539 | |
Fair value, after 10 years | 153,877 | |
Total | 163,622 | |
Asset-Backed Securities, Available-For-Sale, Federal Family Education Loan Program (FFELP) Loans, Restricted Investments | ||
Available-for-sale asset-backed securities | ||
Amortized cost, 1 year or less | 0 | |
Amortized cost, after 1 year through 5 years | 0 | |
Amortized cost, after 5 years through 10 years | 0 | |
Amortized cost, after 10 years | 16,993 | |
Amortized cost | 16,993 | 0 |
Available-for-sale asset-backed securities, at fair value | ||
Fair value, 1 year or less | 0 | |
Fair value, after 1 year through 5 years | 0 | |
Fair value, after 5 years through 10 years | 0 | |
Fair value, after 10 years | 17,969 | |
Total | 17,969 | 0 |
Asset-Backed Securities, Available-For-Sale, Non-Nelnet Bank | ||
Available-for-sale asset-backed securities | ||
Amortized cost, 1 year or less | 0 | |
Amortized cost, after 1 year through 5 years | 15,124 | |
Amortized cost, after 5 years through 10 years | 27,366 | |
Amortized cost, after 10 years | 552,473 | |
Amortized cost | 594,963 | 958,353 |
Available-for-sale asset-backed securities, at fair value | ||
Fair value, 1 year or less | 0 | |
Fair value, after 1 year through 5 years | 14,821 | |
Fair value, after 5 years through 10 years | 26,502 | |
Fair value, after 10 years | 525,001 | |
Total | 566,324 | 917,669 |
Asset-Backed Securities, Available-For-Sale, Federal Family Education Loan Program (FFELP) Loans, Non-Nelnet Bank | ||
Available-for-sale asset-backed securities | ||
Amortized cost, 1 year or less | 0 | |
Amortized cost, after 1 year through 5 years | 15,025 | |
Amortized cost, after 5 years through 10 years | 27,366 | |
Amortized cost, after 10 years | 229,088 | |
Amortized cost | 271,479 | 463,861 |
Available-for-sale asset-backed securities, at fair value | ||
Total | 270,969 | 456,254 |
Asset-Backed Securities, Available-For-Sale, Private Education Loans, Non-Nelnet Bank | ||
Available-for-sale asset-backed securities | ||
Amortized cost, 1 year or less | 0 | |
Amortized cost, after 1 year through 5 years | 0 | |
Amortized cost, after 5 years through 10 years | 0 | |
Amortized cost, after 10 years | 281,791 | |
Amortized cost | 281,791 | 335,903 |
Available-for-sale asset-backed securities, at fair value | ||
Total | 252,917 | 306,465 |
Asset-Backed Securities, Available-For-Sale, Other, Non-Nelnet Bank | ||
Available-for-sale asset-backed securities | ||
Amortized cost, 1 year or less | 0 | |
Amortized cost, after 1 year through 5 years | 99 | |
Amortized cost, after 5 years through 10 years | 0 | |
Amortized cost, after 10 years | 41,594 | |
Amortized cost | 41,693 | 158,589 |
Available-for-sale asset-backed securities, at fair value | ||
Total | 42,438 | 154,950 |
Asset-Backed Securities, Available-For-Sale, Nelnet Bank | ||
Available-for-sale asset-backed securities | ||
Amortized cost, 1 year or less | 64,623 | |
Amortized cost, after 1 year through 5 years | 33,170 | |
Amortized cost, after 5 years through 10 years | 70,765 | |
Amortized cost, after 10 years | 202,364 | |
Amortized cost | 370,922 | 483,277 |
Available-for-sale asset-backed securities, at fair value | ||
Fair value, 1 year or less | 64,596 | |
Fair value, after 1 year through 5 years | 32,693 | |
Fair value, after 5 years through 10 years | 70,255 | |
Fair value, after 10 years | 204,066 | |
Total | 371,610 | 471,368 |
Asset-Backed Securities, Available-For-Sale, Federal Family Education Loan Program (FFELP) Loans, Nelnet Bank | ||
Available-for-sale asset-backed securities | ||
Amortized cost, 1 year or less | 64,623 | |
Amortized cost, after 1 year through 5 years | 12,671 | |
Amortized cost, after 5 years through 10 years | 58,903 | |
Amortized cost, after 10 years | 185,441 | |
Amortized cost | 321,638 | 349,855 |
Available-for-sale asset-backed securities, at fair value | ||
Total | 323,850 | 341,957 |
Asset-Backed Securities, Available-For-Sale, Other, Nelnet Bank | ||
Available-for-sale asset-backed securities | ||
Amortized cost, 1 year or less | 0 | |
Amortized cost, after 1 year through 5 years | 20,499 | |
Amortized cost, after 5 years through 10 years | 11,862 | |
Amortized cost, after 10 years | 16,923 | |
Amortized cost | 49,284 | 133,422 |
Available-for-sale asset-backed securities, at fair value | ||
Total | 47,760 | 129,411 |
Debt Securities, Held-To-Maturity, Non-Nelnet Bank | ||
Held to maturity investments | ||
Amortized cost, 1 year or less | 4,700 | |
Amortized cost, after 1 year through 5 years | 0 | |
Amortized cost, after 5 years through 10 years | 0 | |
Amortized cost, after 10 years | 0 | |
Total | 4,700 | 18,554 |
Held to maturity investments, at fair value | ||
Fair value, 1 year or less | 4,700 | |
Fair value, after 1 year through 5 years | 0 | |
Fair value, after 5 years through 10 years | 0 | |
Fair value, after 10 years | 0 | |
Total | 4,700 | |
Held-To-Maturity Investments, Nelnet Bank | ||
Held to maturity investments | ||
Amortized cost, 1 year or less | 0 | |
Amortized cost, after 1 year through 5 years | 3,452 | |
Amortized cost, after 5 years through 10 years | 1,524 | |
Amortized cost, after 10 years | 153,062 | |
Total | 158,038 | 220 |
Held to maturity investments, at fair value | ||
Fair value, 1 year or less | 0 | |
Fair value, after 1 year through 5 years | 3,506 | |
Fair value, after 5 years through 10 years | 1,539 | |
Fair value, after 10 years | 153,877 | |
Total | 158,922 | |
Asset-Backed Securities, Held-To-Maturity, Federal Family Education Loan Program (FFELP) Loans, Nelnet Bank | ||
Held to maturity investments | ||
Amortized cost, 1 year or less | 0 | |
Amortized cost, after 1 year through 5 years | 3,452 | |
Amortized cost, after 5 years through 10 years | 1,524 | |
Amortized cost, after 10 years | 153,062 | |
Total | 158,038 | 0 |
Debt Securities, Held-To-Maturity, Other, Nelnet Bank | ||
Held to maturity investments | ||
Amortized cost, 1 year or less | 0 | |
Amortized cost, after 1 year through 5 years | 0 | |
Amortized cost, after 5 years through 10 years | 0 | |
Amortized cost, after 10 years | 0 | |
Total | $ 0 | $ 220 |
Investments and Notes Receiva_5
Investments and Notes Receivable - Debt Securities, Available-for-Sale, Unrealized Loss Position, Fair Value (Details) | Dec. 31, 2023 USD ($) |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Line Items] | |
Asset -backed securities unrealized loss position not due to credit loss | $ 0 |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, unrealized loss | (2,317,000) |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, unrealized loss | (37,255,000) |
Total, unrealized loss | (39,572,000) |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, fair value | 128,802,000 |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, fair value | 487,892,000 |
Total, fair value | 616,694,000 |
Asset-Backed Securities, Available-For-Sale, Federal Family Education Loan Program (FFELP) Loans, Restricted Investments | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, unrealized loss | (93,000) |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, unrealized loss | 0 |
Total, unrealized loss | (93,000) |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, fair value | 2,392,000 |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, fair value | 0 |
Total, fair value | 2,392,000 |
Asset-Backed Securities, Available-For-Sale, Non-Nelnet Bank | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, unrealized loss | (966,000) |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, unrealized loss | (34,576,000) |
Total, unrealized loss | (35,542,000) |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, fair value | 28,912,000 |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, fair value | 419,673,000 |
Total, fair value | 448,585,000 |
Asset-Backed Securities, Available-For-Sale, Federal Family Education Loan Program (FFELP) Loans, Non-Nelnet Bank | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, unrealized loss | (966,000) |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, unrealized loss | (4,427,000) |
Total, unrealized loss | (5,393,000) |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, fair value | 28,912,000 |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, fair value | 146,613,000 |
Total, fair value | 175,525,000 |
Asset-Backed Securities, Available-For-Sale, Private Education Loans, Non-Nelnet Bank | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, unrealized loss | 0 |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, unrealized loss | (28,874,000) |
Total, unrealized loss | (28,874,000) |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, fair value | 0 |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, fair value | 252,916,000 |
Total, fair value | 252,916,000 |
Asset-Backed Securities, Available-For-Sale, Other, Non-Nelnet Bank | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, unrealized loss | 0 |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, unrealized loss | (1,275,000) |
Total, unrealized loss | (1,275,000) |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, fair value | 0 |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, fair value | 20,144,000 |
Total, fair value | 20,144,000 |
Asset-Backed Securities, Available-For-Sale, Nelnet Bank | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, unrealized loss | (1,258,000) |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, unrealized loss | (2,679,000) |
Total, unrealized loss | (3,937,000) |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, fair value | 97,498,000 |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, fair value | 68,219,000 |
Total, fair value | 165,717,000 |
Asset-Backed Securities, Available-For-Sale, Federal Family Education Loan Program (FFELP) Loans, Nelnet Bank | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, unrealized loss | (1,168,000) |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, unrealized loss | (1,128,000) |
Total, unrealized loss | (2,296,000) |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, fair value | 77,677,000 |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, fair value | 53,397,000 |
Total, fair value | 131,074,000 |
Asset-Backed Securities, Available-For-Sale, Other, Nelnet Bank | |
Debt Securities, Available-for-Sale, Unrealized Loss Position [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, unrealized loss | (90,000) |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, unrealized loss | (1,551,000) |
Total, unrealized loss | (1,641,000) |
Debt Securities, Available-for-Sale, Unrealized Loss Position, Accumulated Loss [Abstract] | |
Available-for-sale asset-backed securities, unrealized loss position less than 12 months, fair value | 19,821,000 |
Available-for-sale asset-backed securities, unrealized loss position 12 months or more, fair value | 14,822,000 |
Total, fair value | $ 34,643,000 |
Investments and Notes Receiva_6
Investments and Notes Receivable - Gross Proceeds and Gross Realized Gains and Losses of Available-for-Sale Asset-Backed Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investments [Abstract] | |||
Gross proceeds from sales | $ 963,117 | $ 511,124 | $ 160,976 |
Gross realized gains | 4,517 | 6,702 | 3,127 |
Gross realized losses | (8,021) | (800) | (432) |
Net (losses) gains | $ (3,504) | $ 5,902 | $ 2,695 |
Business Combination - Narrativ
Business Combination - Narrative (Details) $ in Thousands | Jul. 01, 2022 USD ($) subsidiary | Apr. 30, 2022 USD ($) | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Jul. 02, 2022 USD ($) | Apr. 29, 2022 | Dec. 31, 2021 USD ($) |
Business Acquisition [Line Items] | |||||||
Intangible asset useful life | 102 months | ||||||
Goodwill | $ 158,029 | $ 176,902 | $ 142,092 | ||||
NGWeb Solutions, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of voting interests acquired | 30% | ||||||
Payment to acquire business | $ 9,205 | ||||||
Equity interest previously held | 50% | ||||||
Revaluation gain | 15,200 | ||||||
Intangible assets | $ 15,250 | ||||||
Acquired intangible asset useful life | 14 years | ||||||
Goodwill | $ 15,937 | ||||||
GRNE Solar | |||||||
Business Acquisition [Line Items] | |||||||
Percentage of voting interests acquired | 80% | ||||||
Payment to acquire business | $ 28,898 | ||||||
Intangible assets | $ 11,683 | ||||||
Acquired intangible asset useful life | 8 years | ||||||
Goodwill | $ 13,873 | $ 18,900 | |||||
Number of subsidiaries voting interest acquired | subsidiary | 2 | ||||||
Contingent consideration, liability | $ 5,000 | ||||||
Customer Relationships | |||||||
Business Acquisition [Line Items] | |||||||
Intangible asset useful life | 104 months | ||||||
Customer Relationships | NGWeb Solutions, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 12,800 | ||||||
Intangible asset useful life | 15 years | ||||||
Customer Relationships | GRNE Solar | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 1,100 | ||||||
Intangible asset useful life | 3 years | ||||||
Computer Software | |||||||
Business Acquisition [Line Items] | |||||||
Intangible asset useful life | 40 months | ||||||
Computer Software | NGWeb Solutions, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 1,700 | ||||||
Intangible asset useful life | 5 years | ||||||
Trade Names | |||||||
Business Acquisition [Line Items] | |||||||
Intangible asset useful life | 100 months | ||||||
Trade Names | NGWeb Solutions, LLC | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 800 | ||||||
Intangible asset useful life | 10 years | ||||||
Trade Names | GRNE Solar | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 8,100 | ||||||
Intangible asset useful life | 10 years | ||||||
Other Intangible Assets | GRNE Solar | |||||||
Business Acquisition [Line Items] | |||||||
Intangible assets | $ 2,500 | ||||||
Intangible asset useful life | 5 years |
Business Combinations - Recogni
Business Combinations - Recognized Identified Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Jul. 01, 2022 | Apr. 30, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Jul. 02, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||||||
Excess cost over fair value of net assets acquired (goodwill) | $ 158,029 | $ 176,902 | $ 142,092 | |||
NGWeb Solutions, LLC | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 1,885 | |||||
Accounts receivable | 1,315 | |||||
Property and equipment | 800 | |||||
Other assets | 201 | |||||
Intangible assets | 15,250 | |||||
Excess cost over fair value of net assets acquired (goodwill) | 15,937 | |||||
Other liabilities | (4,550) | |||||
Net assets acquired | 30,838 | |||||
Minority interest | (6,291) | |||||
Remeasurement of previously held investment | (15,342) | |||||
Total consideration paid by the Company | $ 9,205 | |||||
GRNE Solar | ||||||
Business Acquisition [Line Items] | ||||||
Cash and cash equivalents | $ 1,742 | |||||
Restricted cash | 2,200 | |||||
Accounts receivable | 3,983 | |||||
Property and equipment | 8,720 | |||||
Other assets | 2,296 | |||||
Intangible assets | 11,683 | |||||
Excess cost over fair value of net assets acquired (goodwill) | 13,873 | $ 18,900 | ||||
Bonds and notes payable | (750) | |||||
Other liabilities | (7,624) | |||||
Net assets acquired | 36,123 | |||||
Minority interest | (7,225) | |||||
Total consideration paid by the Company | $ 28,898 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset useful life | 102 months | |
Finite lived intangible assets | $ 44,819 | $ 63,501 |
Customer Relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset useful life | 104 months | |
Finite lived intangible assets | $ 43,031 | 51,738 |
Accumulated amortization | $ 46,573 | 55,116 |
Trade Names | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset useful life | 100 months | |
Finite lived intangible assets | $ 642 | 8,293 |
Accumulated amortization | $ 8,268 | 617 |
Computer Software | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible asset useful life | 40 months | |
Finite lived intangible assets | $ 1,146 | 1,520 |
Accumulated amortization | 574 | 6,400 |
Other Intangible Assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite lived intangible assets | $ 0 | 1,950 |
Accumulated amortization | $ 490 |
Intangible Assets - Narrative (
Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Amortization of intangible assets | $ 17 | $ 15 | $ 23 |
Intangible Assets - Future Amor
Intangible Assets - Future Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
2024 | $ 8,491 | |
2025 | 6,099 | |
2026 | 6,012 | |
2027 | 5,714 | |
2028 | 5,354 | |
2029 and thereafter | 13,149 | |
Finite lived intangible assets, net | $ 44,819 | $ 63,501 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | $ 176,902 | $ 142,092 |
Goodwill acquired | 34,810 | |
Impairment | (18,873) | |
Goodwill, ending balance | 158,029 | 176,902 |
NFS Other Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 0 | 0 |
Goodwill acquired | 0 | |
Impairment | 0 | |
Goodwill, ending balance | 0 | 0 |
Corporate and Other Activities | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 18,873 | 0 |
Goodwill acquired | 18,873 | |
Impairment | (18,873) | |
Goodwill, ending balance | 0 | 18,873 |
Loan Servicing and Systems | Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 23,639 | 23,639 |
Goodwill acquired | 0 | |
Impairment | 0 | |
Goodwill, ending balance | 23,639 | 23,639 |
Education Technology Services and Payments | Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 92,507 | 76,570 |
Goodwill acquired | 15,937 | |
Impairment | 0 | |
Goodwill, ending balance | 92,507 | 92,507 |
Nelnet Financial Services - Asset Generation and Management | Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 41,883 | 41,883 |
Goodwill acquired | 0 | |
Impairment | 0 | |
Goodwill, ending balance | 41,883 | 41,883 |
Nelnet Financial Services - Nelnet Bank | Operating Segments | ||
Goodwill [Roll Forward] | ||
Goodwill, beginning balance | 0 | 0 |
Goodwill acquired | 0 | |
Impairment | 0 | |
Goodwill, ending balance | $ 0 | $ 0 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Property, Plant and Equipment [Line Items] | ||
Property and plant gross | $ 380,792 | $ 356,680 |
Accumulated depreciation | (253,784) | (234,154) |
Property and equipment, net | 127,008 | 122,526 |
Computer equipment and software | ||
Property, Plant and Equipment [Line Items] | ||
Property and plant gross | $ 260,224 | 237,487 |
Computer equipment and software | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 1 year | |
Computer equipment and software | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | |
Building and building improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and plant gross | $ 50,747 | 50,475 |
Building and building improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | |
Building and building improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 48 years | |
Office furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and plant gross | $ 17,197 | 22,386 |
Office furniture and equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 1 year | |
Office furniture and equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 10 years | |
Solar facilities | ||
Property, Plant and Equipment [Line Items] | ||
Property and plant gross | $ 12,850 | 3,547 |
Solar facilities | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | |
Solar facilities | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 35 years | |
Transportation equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and plant gross | $ 7,101 | 6,207 |
Transportation equipment | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 5 years | |
Transportation equipment | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 10 years | |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and plant gross | $ 3,279 | 3,181 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and plant gross | $ 6,149 | 10,410 |
Leasehold improvements | Minimum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 1 year | |
Leasehold improvements | Maximum | ||
Property, Plant and Equipment [Line Items] | ||
Useful life | 15 years | |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and plant gross | $ 23,245 | $ 22,987 |
Property and Equipment - Narrat
Property and Equipment - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 62.1 | $ 59.1 | $ 50.7 |
Impairment Expense (Details)
Impairment Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | |||
Goodwill impairment | $ 18,873 | ||
Investments - venture capital and funds | 2,060 | $ 6,561 | $ 4,637 |
Beneficial interest in loan securitizations | (2,436) | ||
Impairment expense | 31,925 | 15,523 | 16,360 |
Lease Arrangements, Omaha, Nebraska, Termination Fee | |||
Segment Reporting Information [Line Items] | |||
Related party transaction | 2,400 | ||
Customer Relationships | |||
Segment Reporting Information [Line Items] | |||
Intangible assets | 1,708 | ||
Computer Software | |||
Segment Reporting Information [Line Items] | |||
Intangible assets | 2,239 | ||
Leases, buildings, and associated improvements | |||
Segment Reporting Information [Line Items] | |||
Impairment, long-lived asset | 4,974 | 2,772 | 14,159 |
Property and equipment - internally developed software | |||
Segment Reporting Information [Line Items] | |||
Impairment, long-lived asset | 4,310 | 3,951 | |
Operating Segments | Loan Servicing and Systems | |||
Segment Reporting Information [Line Items] | |||
Goodwill impairment | 0 | ||
Investments - venture capital and funds | 0 | 0 | 0 |
Beneficial interest in loan securitizations | 0 | ||
Impairment expense | 296 | 5,511 | 13,243 |
Operating Segments | Loan Servicing and Systems | Customer Relationships | |||
Segment Reporting Information [Line Items] | |||
Intangible assets | 0 | ||
Operating Segments | Loan Servicing and Systems | Computer Software | |||
Segment Reporting Information [Line Items] | |||
Intangible assets | 0 | ||
Operating Segments | Loan Servicing and Systems | Leases, buildings, and associated improvements | |||
Segment Reporting Information [Line Items] | |||
Impairment, long-lived asset | 296 | 1,774 | 13,243 |
Operating Segments | Loan Servicing and Systems | Property and equipment - internally developed software | |||
Segment Reporting Information [Line Items] | |||
Impairment, long-lived asset | 0 | 3,737 | |
Operating Segments | Education Technology Services and Payments | |||
Segment Reporting Information [Line Items] | |||
Goodwill impairment | 0 | ||
Investments - venture capital and funds | 0 | 0 | 0 |
Beneficial interest in loan securitizations | 0 | ||
Impairment expense | 4,310 | 2,239 | 0 |
Operating Segments | Education Technology Services and Payments | Customer Relationships | |||
Segment Reporting Information [Line Items] | |||
Intangible assets | 0 | ||
Operating Segments | Education Technology Services and Payments | Computer Software | |||
Segment Reporting Information [Line Items] | |||
Intangible assets | 2,239 | ||
Operating Segments | Education Technology Services and Payments | Leases, buildings, and associated improvements | |||
Segment Reporting Information [Line Items] | |||
Impairment, long-lived asset | 0 | 0 | 0 |
Operating Segments | Education Technology Services and Payments | Property and equipment - internally developed software | |||
Segment Reporting Information [Line Items] | |||
Impairment, long-lived asset | 4,310 | 0 | |
Operating Segments | Nelnet Financial Services - Asset Generation and Management | |||
Segment Reporting Information [Line Items] | |||
Goodwill impairment | 0 | ||
Investments - venture capital and funds | 0 | 0 | 0 |
Beneficial interest in loan securitizations | (2,436) | ||
Impairment expense | 0 | 0 | (2,436) |
Operating Segments | Nelnet Financial Services - Asset Generation and Management | Customer Relationships | |||
Segment Reporting Information [Line Items] | |||
Intangible assets | 0 | ||
Operating Segments | Nelnet Financial Services - Asset Generation and Management | Computer Software | |||
Segment Reporting Information [Line Items] | |||
Intangible assets | 0 | ||
Operating Segments | Nelnet Financial Services - Asset Generation and Management | Leases, buildings, and associated improvements | |||
Segment Reporting Information [Line Items] | |||
Impairment, long-lived asset | 0 | 0 | 0 |
Operating Segments | Nelnet Financial Services - Asset Generation and Management | Property and equipment - internally developed software | |||
Segment Reporting Information [Line Items] | |||
Impairment, long-lived asset | 0 | 0 | |
Operating Segments | Nelnet Bank | |||
Segment Reporting Information [Line Items] | |||
Goodwill impairment | 0 | ||
Investments - venture capital and funds | 0 | 0 | 0 |
Beneficial interest in loan securitizations | 0 | ||
Impairment expense | 0 | 214 | 0 |
Operating Segments | Nelnet Bank | Customer Relationships | |||
Segment Reporting Information [Line Items] | |||
Intangible assets | 0 | ||
Operating Segments | Nelnet Bank | Computer Software | |||
Segment Reporting Information [Line Items] | |||
Intangible assets | 0 | ||
Operating Segments | Nelnet Bank | Leases, buildings, and associated improvements | |||
Segment Reporting Information [Line Items] | |||
Impairment, long-lived asset | 0 | 0 | 0 |
Operating Segments | Nelnet Bank | Property and equipment - internally developed software | |||
Segment Reporting Information [Line Items] | |||
Impairment, long-lived asset | 0 | 214 | |
NFS Other Operating Segments | |||
Segment Reporting Information [Line Items] | |||
Goodwill impairment | 0 | ||
Investments - venture capital and funds | 0 | 0 | 0 |
Beneficial interest in loan securitizations | 0 | ||
Impairment expense | 0 | 0 | 0 |
NFS Other Operating Segments | Customer Relationships | |||
Segment Reporting Information [Line Items] | |||
Intangible assets | 0 | ||
NFS Other Operating Segments | Computer Software | |||
Segment Reporting Information [Line Items] | |||
Intangible assets | 0 | ||
NFS Other Operating Segments | Leases, buildings, and associated improvements | |||
Segment Reporting Information [Line Items] | |||
Impairment, long-lived asset | 0 | 0 | 0 |
NFS Other Operating Segments | Property and equipment - internally developed software | |||
Segment Reporting Information [Line Items] | |||
Impairment, long-lived asset | 0 | 0 | |
Corporate and Other Activities | |||
Segment Reporting Information [Line Items] | |||
Goodwill impairment | 18,873 | ||
Investments - venture capital and funds | 2,060 | 6,561 | 4,637 |
Beneficial interest in loan securitizations | 0 | ||
Impairment expense | 27,319 | 7,559 | 5,553 |
Corporate and Other Activities | Customer Relationships | |||
Segment Reporting Information [Line Items] | |||
Intangible assets | 1,708 | ||
Corporate and Other Activities | Computer Software | |||
Segment Reporting Information [Line Items] | |||
Intangible assets | 0 | ||
Corporate and Other Activities | Leases, buildings, and associated improvements | |||
Segment Reporting Information [Line Items] | |||
Impairment, long-lived asset | 4,678 | 998 | $ 916 |
Corporate and Other Activities | Property and equipment - internally developed software | |||
Segment Reporting Information [Line Items] | |||
Impairment, long-lived asset | $ 0 | $ 0 |
Bank Deposits - Narrative (Deta
Bank Deposits - Narrative (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Deposits [Abstract] | |||
Brokered deposit fee expense | $ 200,000 | $ 300,000 | $ 100,000 |
Fees paid to third-party brokers related to certificates of deposits | 0 | 600,000 | $ 400,000 |
Deposits exceeding the FDIC insurance limits | 0 | 0 | |
Accrued interest on deposits | $ 700,000 | $ 700,000 |
Bank Deposits - Interest-Bearin
Bank Deposits - Interest-Bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Deposit Liability [Line Items] | ||||
Intercompany deposits | $ 104,000 | $ 98,300 | ||
Restricted cash | 488,723 | 945,159 | $ 741,981 | $ 553,175 |
Brokered CDs, net of brokered deposit fees | 203,522 | 254,817 | ||
Commercial | 2,057 | 0 | ||
Retail and other savings (529, STFIT, and HSA) | 517,960 | 410,556 | ||
Retail and other CDs (commercial and institutional) | 20,060 | 25,949 | ||
Total interest-bearing deposits | 743,599 | $ 691,322 | ||
Nelnet Bank | Asset Pledged as Collateral | ||||
Deposit Liability [Line Items] | ||||
Restricted cash | $ 40,000 |
Bank Deposits - Certificates of
Bank Deposits - Certificates of Deposit Maturities (Details) $ in Thousands | Dec. 31, 2023 USD ($) |
Deposits [Abstract] | |
One year or less | $ 0 |
After one year to two years | 2,740 |
After two years to three years | 146,424 |
After three years to four years | 74,071 |
After four years to five years | 347 |
After five years | 0 |
Total | $ 223,582 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 vote class shares | |
Class of Stock [Line Items] | |
Classes of common stock (in classes) | class | 2 |
Repurchase shares authorized (in shares) | shares | 5,000,000 |
Remaining number of shares authorized to be repurchased (in shares) | shares | 4,200,000 |
Class B | |
Class of Stock [Line Items] | |
Votes per common share (in votes) | vote | 10 |
Common stock, convertible, conversion ratio | 1 |
Class A | |
Class of Stock [Line Items] | |
Votes per common share (in votes) | vote | 1 |
Shareholders' Equity - Stock Re
Shareholders' Equity - Stock Repurchases (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | |||
Total shares repurchased (in shares) | 336,943 | 1,162,533 | 713,274 |
Purchase price | $ 28,028 | $ 97,685 | $ 58,111 |
Average price of shares repurchased (in dollars per share) | $ 83.18 | $ 84.03 | $ 81.47 |
Earnings per Common Share - Bas
Earnings per Common Share - Basic and Diluted Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Net income attributable to Nelnet, Inc., basic | $ 91,532 | $ 407,347 | $ 393,286 |
Net income attributable to Nelnet, Inc., diluted | $ 91,532 | $ 407,347 | $ 393,286 |
Weighted-average common shares outstanding - basic (in shares) | 37,416,621 | 37,603,033 | 38,572,801 |
Weighted-average common shares outstanding - diluted (in shares) | 37,416,621 | 37,603,033 | 38,572,801 |
Earnings per share - basic (in dollars per share) | $ 2.45 | $ 10.83 | $ 10.20 |
Earnings per share - diluted (in dollars per share) | $ 2.45 | $ 10.83 | $ 10.20 |
Common shareholders | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Net income attributable to Nelnet, Inc., basic | $ 89,606 | $ 399,564 | $ 386,865 |
Net income attributable to Nelnet, Inc., diluted | $ 89,606 | $ 399,564 | $ 386,865 |
Weighted-average common shares outstanding - basic (in shares) | 36,629,437 | 36,884,548 | 37,943,032 |
Weighted-average common shares outstanding - diluted (in shares) | 36,629,437 | 36,884,548 | 37,943,032 |
Earnings per share - basic (in dollars per share) | $ 2.45 | $ 10.83 | $ 10.20 |
Earnings per share - diluted (in dollars per share) | $ 2.45 | $ 10.83 | |
Unvested restricted stock shareholders | |||
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |||
Net income attributable to Nelnet, Inc., basic | $ 1,926 | $ 7,783 | $ 6,421 |
Net income attributable to Nelnet, Inc., diluted | $ 1,926 | $ 7,783 | $ 6,421 |
Weighted-average common shares outstanding - basic (in shares) | 787,184 | 718,485 | 629,769 |
Weighted-average common shares outstanding - diluted (in shares) | 787,184 | 718,485 | 629,769 |
Earnings per share - basic (in dollars per share) | $ 2.45 | $ 10.83 | $ 10.20 |
Earnings per share - diluted (in dollars per share) | $ 2.45 | $ 10.83 |
Earnings per Common Share - Nar
Earnings per Common Share - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 shares | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 |
Shares Issued - Deferred | |
Earnings Per Share, Diluted, by Common Class, Including Two Class Method [Line Items] | |
Director stock, cumulative deferred shares (in shares) | 163,136 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Contingency [Line Items] | |||
Unrecognized tax benefits | $ 17,084 | $ 16,835 | $ 19,678 |
Tax benefits which would favorable affect effective tax rate | 13,500 | ||
Anticipated uncertain tax position adjustment | 2,700 | ||
Income tax penalties and interest accrued | 4,800 | 4,000 | |
Interest expense related to uncertain tax positions | 800 | ||
Interest benefit related to uncertain tax positions | 1,100 | $ 300 | |
Income taxes receivable | 67,400 | ||
Current income tax payable | 5,200 | ||
Other Assets | |||
Income Tax Contingency [Line Items] | |||
Net deferred tax assets | 21,800 | 34,400 | |
Other Liabilities | |||
Income Tax Contingency [Line Items] | |||
Net deferred tax liabilities | 75,300 | $ 140,100 | |
Favorably affect the effective tax rate | |||
Income Tax Contingency [Line Items] | |||
Anticipated uncertain tax position adjustment | $ 2,100 |
Income Taxes - Unrecognized Tax
Income Taxes - Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Gross balance - beginning of year | $ 16,835 | $ 19,678 |
Additions based on tax positions of prior years | 819 | 2,269 |
Additions based on tax positions related to the current year | 2,242 | 2,521 |
Settlements with taxing authorities | (247) | (2,818) |
Reductions for tax positions of prior years | (460) | (2,580) |
Reductions due to lapse of applicable statutes of limitations | (2,105) | (2,235) |
Gross balance - end of year | $ 17,084 | $ 16,835 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Current: | |||
Federal | $ 65,952 | $ 67,649 | $ 55,239 |
State | 5,732 | 10,984 | 4,792 |
Foreign | 32 | (49) | 169 |
Total current provision | 71,716 | 78,584 | 60,200 |
Deferred: | |||
Federal | (41,705) | 32,422 | 46,145 |
State | (10,270) | 2,198 | 9,647 |
Foreign | 12 | 20 | (170) |
Total deferred provision | (51,963) | 34,640 | 55,622 |
Provision for income tax expense | $ 19,753 | $ 113,224 | $ 115,822 |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |||
Tax expense at federal rate | 21% | 21% | 21% |
Increase (decrease) resulting from: | |||
State tax, net of federal income tax benefit | (0.60%) | 2.80% | 3% |
Tax credits | (4.10%) | (0.60%) | (0.80%) |
Change in valuation allowance | 0.40% | (0.50%) | 0% |
Other | 1.10% | (0.90%) | (0.40%) |
Effective tax rate | 17.80% | 21.80% | 22.80% |
Income Taxes - Deferred Tax Ass
Income Taxes - Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Deferred tax assets: | ||
Deferred revenue | $ 17,399 | $ 27,410 |
Student loans | 16,489 | 20,569 |
State tax credit carryforwards | 12,190 | 9,431 |
Accrued expenses | 9,623 | 10,824 |
Stock compensation | 6,584 | 5,345 |
Net operating losses | 4,563 | 2,613 |
Lease liability | 2,929 | 3,432 |
Intangible assets | 987 | 0 |
Debt and equity investments | 0 | 1,430 |
Total gross deferred tax assets | 70,764 | 81,054 |
Less state tax valuation allowance | (562) | (161) |
Net deferred tax assets | 70,202 | 80,893 |
Deferred tax liabilities: | ||
Partnership basis | 73,876 | 99,184 |
Basis in certain derivative contracts | 26,139 | 65,224 |
Depreciation | 9,526 | 11,306 |
Debt and equity investments | 4,711 | 0 |
Lease right of use asset | 2,770 | 3,073 |
Loan origination services | 2,635 | 3,264 |
Securitization | 267 | 363 |
Intangible assets | 0 | 1,474 |
Other | 3,784 | 2,679 |
Total gross deferred tax liabilities | 123,708 | 186,567 |
Net deferred tax asset (liability) | $ (53,506) | $ (105,674) |
Segment Reporting - Narrative (
Segment Reporting - Narrative (Details) | 12 Months Ended |
Dec. 31, 2023 | |
Segment Reporting [Abstract] | |
Income tax allocation to segments, percent | 24% |
Segment Reporting - Reportable
Segment Reporting - Reportable Operating Segments Reconciled to Consolidated Financial Statements (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Information [Line Items] | ||||
Total interest income | $ 1,109,800 | $ 742,806 | $ 523,835 | |
Interest expense | 845,091 | 430,137 | 176,233 | |
Net interest income | 264,709 | 312,669 | 347,602 | |
Less provision (negative provision) for loan losses | 65,450 | 46,441 | (12,426) | |
Net interest income after provision for loan losses | 199,259 | 266,228 | 360,028 | |
Other income (expense): | ||||
Intersegment revenue | 0 | 0 | 0 | |
Other, net | (48,787) | 25,486 | 78,681 | |
Gain on sale of loans, net | 39,673 | 2,903 | 18,715 | |
Impairment expense | (31,925) | (15,523) | (16,360) | |
Derivative settlements, net | 25,072 | 32,943 | (21,367) | |
Derivative market value adjustments, net | (41,773) | 231,691 | 92,813 | |
Total other income (expense), net | 955,194 | 1,246,045 | 977,079 | |
Cost of services: | ||||
Cost of services | 219,759 | 168,374 | 108,660 | |
Operating expenses: | ||||
Salaries and benefits | 591,537 | 589,579 | 507,132 | |
Depreciation and amortization | 79,118 | 74,077 | 73,741 | |
Other expenses | 189,851 | 170,778 | 145,469 | |
Intersegment expenses, net | 0 | 0 | 0 | |
Total operating expenses | 860,506 | 834,434 | 726,342 | |
Income (loss) before income taxes | 74,188 | 509,465 | 502,105 | |
Income tax (expense) benefit | (19,753) | (113,224) | (115,822) | |
Net income | 54,435 | 396,241 | 386,283 | |
Net loss attributable to noncontrolling interests | 37,097 | 11,106 | 7,003 | |
Net income attributable to Nelnet, Inc. | 91,532 | 407,347 | 393,286 | |
Total assets | $ 19,374,044 | 16,736,645 | 19,374,044 | 21,678,041 |
Operating Segments | Loan Servicing and Systems | ||||
Segment Reporting Information [Line Items] | ||||
Total interest income | 4,845 | 2,722 | 137 | |
Interest expense | 0 | 44 | 94 | |
Net interest income | 4,845 | 2,678 | 43 | |
Less provision (negative provision) for loan losses | 0 | 0 | 0 | |
Net interest income after provision for loan losses | 4,845 | 2,678 | 43 | |
Other income (expense): | ||||
Intersegment revenue | 28,911 | 33,170 | 33,956 | |
Other, net | 2,587 | 2,543 | 3,307 | |
Gain on sale of loans, net | 0 | 0 | 0 | |
Impairment expense | (296) | (5,511) | (13,243) | |
Derivative settlements, net | 0 | 0 | 0 | |
Derivative market value adjustments, net | 0 | 0 | 0 | |
Total other income (expense), net | 549,156 | 565,661 | 510,383 | |
Cost of services: | ||||
Cost of services | 0 | 0 | 0 | |
Operating expenses: | ||||
Salaries and benefits | 317,885 | 344,809 | 297,406 | |
Depreciation and amortization | 19,257 | 24,255 | 25,649 | |
Other expenses | 60,517 | 59,674 | 52,720 | |
Intersegment expenses, net | 78,628 | 75,145 | 72,206 | |
Total operating expenses | 476,287 | 503,883 | 447,981 | |
Income (loss) before income taxes | 77,714 | 64,456 | 62,445 | |
Income tax (expense) benefit | (18,651) | (15,470) | (14,987) | |
Net income | 59,063 | 48,986 | 47,458 | |
Net loss attributable to noncontrolling interests | 0 | 0 | 0 | |
Net income attributable to Nelnet, Inc. | 59,063 | 48,986 | 47,458 | |
Total assets | 273,072 | 294,376 | 273,072 | 296,618 |
Operating Segments | Education Technology Services and Payments | ||||
Segment Reporting Information [Line Items] | ||||
Total interest income | 26,962 | 9,377 | 1,075 | |
Interest expense | 0 | 0 | 0 | |
Net interest income | 26,962 | 9,377 | 1,075 | |
Less provision (negative provision) for loan losses | 0 | 0 | 0 | |
Net interest income after provision for loan losses | 26,962 | 9,377 | 1,075 | |
Other income (expense): | ||||
Intersegment revenue | 253 | 81 | 12 | |
Other, net | 0 | 0 | 0 | |
Gain on sale of loans, net | 0 | 0 | 0 | |
Impairment expense | (4,310) | (2,239) | 0 | |
Derivative settlements, net | 0 | 0 | 0 | |
Derivative market value adjustments, net | 0 | 0 | 0 | |
Total other income (expense), net | 459,254 | 406,385 | 338,246 | |
Cost of services: | ||||
Cost of services | 171,183 | 148,403 | 108,660 | |
Operating expenses: | ||||
Salaries and benefits | 155,296 | 133,428 | 112,046 | |
Depreciation and amortization | 11,319 | 10,184 | 11,404 | |
Other expenses | 34,133 | 30,104 | 19,318 | |
Intersegment expenses, net | 23,184 | 19,538 | 15,180 | |
Total operating expenses | 223,932 | 193,254 | 157,948 | |
Income (loss) before income taxes | 91,101 | 74,105 | 72,713 | |
Income tax (expense) benefit | (21,891) | (17,785) | (17,451) | |
Net income | 69,210 | 56,320 | 55,262 | |
Net loss attributable to noncontrolling interests | 109 | (3) | 0 | |
Net income attributable to Nelnet, Inc. | 69,319 | 56,317 | 55,262 | |
Total assets | 484,976 | 490,296 | 484,976 | 443,788 |
Operating Segments | Nelnet Financial Services - Asset Generation and Management | ||||
Segment Reporting Information [Line Items] | ||||
Total interest income | 977,158 | 676,557 | 506,901 | |
Interest expense | 823,084 | 411,900 | 172,918 | |
Net interest income | 154,074 | 264,657 | 333,983 | |
Less provision (negative provision) for loan losses | 56,975 | 44,601 | (13,220) | |
Net interest income after provision for loan losses | 97,099 | 220,056 | 347,203 | |
Other income (expense): | ||||
Intersegment revenue | 0 | 0 | 0 | |
Other, net | 11,269 | 21,170 | 34,306 | |
Gain on sale of loans, net | 39,673 | 2,903 | 18,715 | |
Impairment expense | 0 | 0 | 2,436 | |
Derivative settlements, net | 24,588 | 32,943 | (21,367) | |
Derivative market value adjustments, net | (40,250) | 231,691 | 92,813 | |
Total other income (expense), net | 35,280 | 288,707 | 126,903 | |
Cost of services: | ||||
Cost of services | 0 | 0 | 0 | |
Operating expenses: | ||||
Salaries and benefits | 4,191 | 2,524 | 2,135 | |
Depreciation and amortization | 0 | 0 | 0 | |
Other expenses | 14,728 | 16,835 | 13,487 | |
Intersegment expenses, net | 32,824 | 34,679 | 34,868 | |
Total operating expenses | 51,743 | 54,038 | 50,490 | |
Income (loss) before income taxes | 80,636 | 454,725 | 423,616 | |
Income tax (expense) benefit | (19,353) | (109,134) | (101,668) | |
Net income | 61,283 | 345,591 | 321,948 | |
Net loss attributable to noncontrolling interests | 0 | 0 | 0 | |
Net income attributable to Nelnet, Inc. | 61,283 | 345,591 | 321,948 | |
Total assets | 15,945,762 | 13,488,561 | 15,945,762 | 18,965,371 |
Operating Segments | Nelnet Financial Services - Nelnet Bank | ||||
Segment Reporting Information [Line Items] | ||||
Total interest income | 57,859 | 25,973 | 7,721 | |
Interest expense | 34,704 | 11,055 | 1,507 | |
Net interest income | 23,155 | 14,918 | 6,214 | |
Less provision (negative provision) for loan losses | 8,475 | 1,840 | 794 | |
Net interest income after provision for loan losses | 14,680 | 13,078 | 5,420 | |
Other income (expense): | ||||
Intersegment revenue | 0 | 0 | 0 | |
Other, net | 1,095 | 2,625 | 713 | |
Gain on sale of loans, net | 0 | 0 | 0 | |
Impairment expense | 0 | (214) | 0 | |
Derivative settlements, net | 484 | 0 | 0 | |
Derivative market value adjustments, net | (1,523) | 0 | 0 | |
Total other income (expense), net | 56 | 2,411 | 713 | |
Cost of services: | ||||
Cost of services | 0 | 0 | 0 | |
Operating expenses: | ||||
Salaries and benefits | 9,074 | 6,948 | 5,042 | |
Depreciation and amortization | 574 | 15 | 0 | |
Other expenses | 4,994 | 3,925 | 1,776 | |
Intersegment expenses, net | 462 | 244 | 107 | |
Total operating expenses | 15,104 | 11,132 | 6,925 | |
Income (loss) before income taxes | (368) | 4,357 | (792) | |
Income tax (expense) benefit | 153 | (1,013) | 175 | |
Net income | (215) | 3,344 | (617) | |
Net loss attributable to noncontrolling interests | 0 | 0 | 0 | |
Net income attributable to Nelnet, Inc. | (215) | 3,344 | (617) | |
Total assets | 918,716 | 991,252 | 918,716 | 535,948 |
NFS Other Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total interest income | 74,857 | 40,377 | 9,466 | |
Interest expense | 29,747 | 21,974 | 2,756 | |
Net interest income | 45,110 | 18,403 | 6,710 | |
Less provision (negative provision) for loan losses | 0 | 0 | 0 | |
Net interest income after provision for loan losses | 45,110 | 18,403 | 6,710 | |
Other income (expense): | ||||
Intersegment revenue | 0 | 0 | 0 | |
Other, net | 26,648 | 35,259 | 38,449 | |
Gain on sale of loans, net | 0 | 0 | 0 | |
Impairment expense | 0 | 0 | 0 | |
Derivative settlements, net | 0 | 0 | 0 | |
Derivative market value adjustments, net | 0 | 0 | 0 | |
Total other income (expense), net | 26,648 | 35,259 | 38,449 | |
Cost of services: | ||||
Cost of services | 0 | 0 | 0 | |
Operating expenses: | ||||
Salaries and benefits | 1,130 | 880 | 830 | |
Depreciation and amortization | 0 | 0 | 0 | |
Other expenses | 19,172 | 2,453 | 2,585 | |
Intersegment expenses, net | 584 | (1,173) | (1,379) | |
Total operating expenses | 20,886 | 2,160 | 2,036 | |
Income (loss) before income taxes | 50,872 | 51,502 | 43,123 | |
Income tax (expense) benefit | (12,073) | (12,237) | (10,175) | |
Net income | 38,799 | 39,265 | 32,948 | |
Net loss attributable to noncontrolling interests | (568) | (516) | (726) | |
Net income attributable to Nelnet, Inc. | 38,231 | 38,749 | 32,222 | |
Total assets | 1,499,785 | 1,115,292 | 1,499,785 | 1,208,430 |
Corporate and Other Activities | ||||
Segment Reporting Information [Line Items] | ||||
Total interest income | 12,141 | 2,199 | 336 | |
Interest expense | 1,578 | (436) | 760 | |
Net interest income | 10,563 | 2,635 | (424) | |
Less provision (negative provision) for loan losses | 0 | 0 | 0 | |
Net interest income after provision for loan losses | 10,563 | 2,635 | (424) | |
Other income (expense): | ||||
Intersegment revenue | 0 | 0 | 0 | |
Other, net | (90,385) | (36,112) | 1,907 | |
Gain on sale of loans, net | 0 | 0 | 0 | |
Impairment expense | (27,319) | (7,559) | (5,553) | |
Derivative settlements, net | 0 | 0 | 0 | |
Derivative market value adjustments, net | 0 | 0 | 0 | |
Total other income (expense), net | (86,035) | (19,128) | (3,646) | |
Cost of services: | ||||
Cost of services | 48,576 | 19,971 | 0 | |
Operating expenses: | ||||
Salaries and benefits | 105,531 | 100,990 | 89,673 | |
Depreciation and amortization | 47,969 | 39,623 | 36,682 | |
Other expenses | 56,307 | 57,788 | 55,589 | |
Intersegment expenses, net | (108,089) | (95,182) | (87,014) | |
Total operating expenses | 101,718 | 103,219 | 94,930 | |
Income (loss) before income taxes | (225,766) | (139,683) | (99,000) | |
Income tax (expense) benefit | 52,061 | 42,415 | 28,284 | |
Net income | (173,705) | (97,268) | (70,716) | |
Net loss attributable to noncontrolling interests | 37,556 | 11,625 | 7,729 | |
Net income attributable to Nelnet, Inc. | (136,149) | (85,643) | (62,987) | |
Total assets | 907,180 | 897,886 | 907,180 | 754,602 |
Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Total interest income | (44,021) | (14,399) | (1,800) | |
Interest expense | (44,021) | (14,399) | (1,800) | |
Net interest income | 0 | 0 | 0 | |
Less provision (negative provision) for loan losses | 0 | 0 | 0 | |
Net interest income after provision for loan losses | 0 | 0 | 0 | |
Other income (expense): | ||||
Intersegment revenue | (29,164) | (33,251) | (33,968) | |
Other, net | 0 | 0 | 0 | |
Gain on sale of loans, net | 0 | 0 | 0 | |
Impairment expense | 0 | 0 | 0 | |
Derivative settlements, net | 0 | 0 | 0 | |
Derivative market value adjustments, net | 0 | 0 | 0 | |
Total other income (expense), net | (29,164) | (33,251) | (33,968) | |
Cost of services: | ||||
Cost of services | 0 | 0 | 0 | |
Operating expenses: | ||||
Salaries and benefits | (1,571) | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | |
Other expenses | 0 | 0 | 0 | |
Intersegment expenses, net | (27,593) | (33,251) | (33,968) | |
Total operating expenses | (29,164) | (33,251) | (33,968) | |
Income (loss) before income taxes | 0 | 0 | 0 | |
Income tax (expense) benefit | 0 | 0 | 0 | |
Net income | 0 | 0 | 0 | |
Net loss attributable to noncontrolling interests | 0 | 0 | 0 | |
Net income attributable to Nelnet, Inc. | 0 | 0 | 0 | |
Total assets | (655,447) | (541,018) | (655,447) | (526,716) |
Loan servicing and systems | ||||
Other income (expense): | ||||
Revenue | 517,954 | 535,459 | 486,363 | |
Loan servicing and systems | Operating Segments | Loan Servicing and Systems | ||||
Other income (expense): | ||||
Revenue | 517,954 | 535,459 | 486,363 | |
Loan servicing and systems | Operating Segments | Education Technology Services and Payments | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Loan servicing and systems | Operating Segments | Nelnet Financial Services - Asset Generation and Management | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Loan servicing and systems | Operating Segments | Nelnet Financial Services - Nelnet Bank | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Loan servicing and systems | NFS Other Operating Segments | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Loan servicing and systems | Corporate and Other Activities | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Loan servicing and systems | Eliminations | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Education technology services and payments | ||||
Other income (expense): | ||||
Revenue | 463,311 | 408,543 | 338,234 | |
Cost of services: | ||||
Cost of services | 171,183 | 148,403 | 108,660 | |
Education technology services and payments | Operating Segments | Loan Servicing and Systems | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Cost of services: | ||||
Cost of services | 0 | 0 | 0 | |
Education technology services and payments | Operating Segments | Education Technology Services and Payments | ||||
Other income (expense): | ||||
Revenue | 463,311 | 408,543 | 338,234 | |
Cost of services: | ||||
Cost of services | 171,183 | 148,403 | 108,660 | |
Education technology services and payments | Operating Segments | Nelnet Financial Services - Asset Generation and Management | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Cost of services: | ||||
Cost of services | 0 | 0 | 0 | |
Education technology services and payments | Operating Segments | Nelnet Financial Services - Nelnet Bank | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Cost of services: | ||||
Cost of services | 0 | 0 | 0 | |
Education technology services and payments | NFS Other Operating Segments | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Cost of services: | ||||
Cost of services | 0 | 0 | 0 | |
Education technology services and payments | Corporate and Other Activities | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Cost of services: | ||||
Cost of services | 0 | 0 | 0 | |
Education technology services and payments | Eliminations | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Cost of services: | ||||
Cost of services | 0 | 0 | 0 | |
Solar construction | ||||
Other income (expense): | ||||
Revenue | $ 24,543 | 31,669 | 24,543 | 0 |
Cost of services: | ||||
Cost of services | 48,576 | 19,971 | 0 | |
Solar construction | Operating Segments | Loan Servicing and Systems | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Cost of services: | ||||
Cost of services | 0 | 0 | 0 | |
Solar construction | Operating Segments | Education Technology Services and Payments | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Cost of services: | ||||
Cost of services | 0 | 0 | 0 | |
Solar construction | Operating Segments | Nelnet Financial Services - Asset Generation and Management | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Cost of services: | ||||
Cost of services | 0 | 0 | 0 | |
Solar construction | Operating Segments | Nelnet Financial Services - Nelnet Bank | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Cost of services: | ||||
Cost of services | 0 | 0 | 0 | |
Solar construction | NFS Other Operating Segments | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Cost of services: | ||||
Cost of services | 0 | 0 | 0 | |
Solar construction | Corporate and Other Activities | ||||
Other income (expense): | ||||
Revenue | 31,669 | 24,543 | 0 | |
Cost of services: | ||||
Cost of services | 48,576 | 19,971 | 0 | |
Solar construction | Eliminations | ||||
Other income (expense): | ||||
Revenue | 0 | 0 | 0 | |
Cost of services: | ||||
Cost of services | $ 0 | $ 0 | $ 0 |
Disaggregated Revenue and Def_3
Disaggregated Revenue and Deferred Revenue - Schedule of Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Solar construction revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 24,543 | $ 31,669 | ||
Commercial revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 16,891 | 18,541 | ||
Residential revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 7,495 | 11,830 | ||
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 157 | 1,298 | ||
Loan servicing and systems revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 517,954 | $ 535,459 | $ 486,363 | |
Government loan servicing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 412,478 | 423,066 | 360,793 | |
Private education and consumer loan servicing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 48,984 | 49,210 | 47,302 | |
FFELP loan servicing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 13,704 | 16,016 | 18,281 | |
Software services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 29,208 | 33,409 | 34,600 | |
Outsourced services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 13,580 | 13,758 | 25,387 | |
Education technology services and payments | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 463,311 | 408,543 | 338,234 | |
Tuition payment plan services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 125,326 | 110,802 | 103,970 | |
Payment processing | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 163,859 | 148,212 | 127,080 | |
Education technology services | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 170,754 | 146,679 | 105,975 | |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 3,372 | 2,850 | 1,209 | |
Solar construction revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24,543 | 31,669 | $ 24,543 | $ 0 |
Solar construction | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 24,386 | 31,474 | ||
Operations and maintenance | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 157 | $ 195 |
Disaggregated Revenue and Def_4
Disaggregated Revenue and Deferred Revenue - Components of Other Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Disaggregation of Revenue [Line Items] | |||
Reinsurance premiums | $ 20,067 | $ 157 | $ 0 |
ALLO preferred return | 9,120 | 8,584 | 8,427 |
Borrower late fee income | $ 8,997 | 10,809 | 3,444 |
Late Fee Income, Servicing Financial Asset, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other, net | ||
Administration/sponsor fee income | $ 6,793 | 7,898 | 3,656 |
Contractually Specified Servicing Fee Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Other, net | ||
Investment activity, net | $ (8,586) | 51,493 | 91,593 |
Other | 17,454 | 15,421 | 12,761 |
Other, net | (48,787) | 25,486 | 78,681 |
ALLO Voting Membership Interests Investment | |||
Disaggregation of Revenue [Line Items] | |||
Gain (loss) on investments | (65,277) | (67,966) | (42,148) |
Solar | |||
Disaggregation of Revenue [Line Items] | |||
Gain (loss) on investments | (46,702) | (9,479) | (10,132) |
Investment advisory services (WRCM) | |||
Disaggregation of Revenue [Line Items] | |||
Investment advisory services / Management fee revenue | 6,760 | 6,026 | 7,773 |
Management fee revenue | |||
Disaggregation of Revenue [Line Items] | |||
Investment advisory services / Management fee revenue | $ 2,587 | $ 2,543 | $ 3,307 |
Disaggregated Revenue and Def_5
Disaggregated Revenue and Deferred Revenue - Deferred Revenue Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Contract With Customer, Liability [Roll Forward] | |||
Beginning balance | $ 56,654 | $ 41,170 | $ 36,196 |
Deferral of revenue | 206,788 | 154,656 | 120,935 |
Recognition of revenue | (190,889) | (145,086) | (115,961) |
Business acquisitions | 5,914 | ||
Ending balance | 72,553 | 56,654 | 41,170 |
Corporate and Other Activities | |||
Contract With Customer, Liability [Roll Forward] | |||
Beginning balance | 5,030 | 2,010 | 1,551 |
Deferral of revenue | 53,019 | 13,963 | 5,775 |
Recognition of revenue | (40,676) | (12,940) | (5,316) |
Business acquisitions | 1,997 | ||
Ending balance | 17,373 | 5,030 | 2,010 |
Loan Servicing and Systems | Operating Segments | |||
Contract With Customer, Liability [Roll Forward] | |||
Beginning balance | 2,310 | 2,416 | 1,378 |
Deferral of revenue | 3,954 | 2,607 | 5,882 |
Recognition of revenue | (2,808) | (2,713) | (4,844) |
Business acquisitions | 0 | ||
Ending balance | 3,456 | 2,310 | 2,416 |
Education Technology Services and Payments | Operating Segments | |||
Contract With Customer, Liability [Roll Forward] | |||
Beginning balance | 49,314 | 36,744 | 33,267 |
Deferral of revenue | 149,815 | 138,086 | 109,278 |
Recognition of revenue | (147,405) | (129,433) | (105,801) |
Business acquisitions | 3,917 | ||
Ending balance | $ 51,724 | $ 49,314 | $ 36,744 |
Major Customer (Details)
Major Customer (Details) - Government loan servicing $ in Thousands | 12 Months Ended | |||
Apr. 24, 2023 extension | Dec. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Concentration Risk [Line Items] | ||||
Revenue | $ | $ 412,478 | $ 423,066 | $ 360,793 | |
Contract with customer, contract term | 5 years | |||
Contract with customer, option to extend, option one, number of extensions | 2 | |||
Contract with customer, option to extend, option one, extension period | 2 years | |||
Contract with customer, option to extend, option two, extension period | 1 | |||
Contract with customer, option to extend, option two, extension period | 1 year |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information Related to Leases (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Operating lease ROU assets, which is included in "other assets" on the consolidated balance sheets | $ 13,565 | $ 14,852 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Operating lease liabilities, which is included in "other liabilities" on the consolidated balance sheets | $ 14,291 | $ 16,414 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Leases - Lease Expense, Cash Fl
Leases - Lease Expense, Cash Flow Information, Weighted Average Remaining Lease Term, and Discount Rate (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Total operating rental expense | $ 7,495 | $ 6,841 | $ 9,386 |
Weighted average remaining lease term | 5 years 4 months 9 days | 6 years 3 days | |
Weighted average discount rate | 4.72% | 3.90% |
Leases - Lease Liability Maturi
Leases - Lease Liability Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Lessee, Operating Lease, Liability, Payment, Due [Abstract] | ||
2024 | $ 4,503 | |
2025 | 3,268 | |
2026 | 2,130 | |
2027 | 2,040 | |
2028 | 1,030 | |
2029 and thereafter | 3,297 | |
Total lease payments | 16,268 | |
Imputed interest | (1,977) | |
Total | $ 14,291 | $ 16,414 |
Defined Contribution Benefit _2
Defined Contribution Benefit Plan (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Contribution Benefit Plan [Line Items] | |||
Maximum annual employee contribution percentage | 100% | ||
Defined contribution plan cost | $ 14.2 | $ 12.9 | $ 11.2 |
Employer Match on Employee Contributions up to Three Percent of Employee Salary | |||
Defined Contribution Benefit Plan [Line Items] | |||
Employer match percentage | 100% | ||
Employer Match on Employee Contributions Between Three and Five Percent of Employee Salary | |||
Defined Contribution Benefit Plan [Line Items] | |||
Employer match percentage | 50% | ||
Maximum Employee Contribution Percentage Eligible for 100 Percent Employer Match | |||
Defined Contribution Benefit Plan [Line Items] | |||
Maximum annual employee contribution percentage | 3% | ||
Maximum Employee Contribution Percentage Eligible for 50 Percent Employer Match After 100 Percent Employer Match | |||
Defined Contribution Benefit Plan [Line Items] | |||
Maximum annual employee contribution percentage | 2% |
Stock Based Compensation Plan_2
Stock Based Compensation Plans - Restricted Stock Activity (Details) - Restricted Stock - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Restricted Stock Activity | |||
Non-vested shares at beginning of year (in shares) | 752,622 | 660,166 | 552,456 |
Granted (in shares) | 239,041 | 272,212 | 249,096 |
Vested (in shares) | (156,569) | (136,076) | (116,842) |
Canceled (in shares) | (48,332) | (43,680) | (24,544) |
Non-vested shares at end of year (in shares) | 786,762 | 752,622 | 660,166 |
Stock Based Compensation Plan_3
Stock Based Compensation Plans - Unrecognized Compensation Costs (Details) - Restricted Stock $ in Thousands | Dec. 31, 2023 USD ($) |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 31,488 |
2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | 12,586 |
2025 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | 7,485 |
2026 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | 4,621 |
2027 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | 2,765 |
2028 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | 1,642 |
2029 and thereafter | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation cost | $ 2,389 |
Stock Based Compensation Plan_4
Stock Based Compensation Plans - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Discount from market price as of purchase date | 15% | ||
Director stock at lower cost | 85% | ||
Expense related to directors compensation plan | $ 1.6 | $ 1.7 | $ 1.4 |
Shares Issued - Deferred | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Director stock, cumulative deferred shares (in shares) | 163,136 | ||
Restricted Stock | Salaries and Benefits | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 16.2 | 13.9 | 10.4 |
Employee Share Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based compensation expense | $ 0.1 | $ 0.1 | $ 0.2 |
Shares issued (in shares) | 26,585 | 26,011 | 24,205 |
Stock Based Compensation Plan_5
Stock Based Compensation Plans - Non-employee Directors Compensation Plan (Details) - Nonemployee - shares | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||
Shares issued under non-employee director plan (in shares) | 16,804 | 24,798 | 22,030 |
Shares issued - not deferred | |||
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||
Shares issued under non-employee director plan (in shares) | 6,782 | 11,861 | 9,958 |
Shares issued- deferred | |||
Share-based Goods and Nonemployee Services Transaction [Line Items] | |||
Shares issued under non-employee director plan (in shares) | 10,022 | 12,937 | 12,072 |
Related Parties - Narrative (De
Related Parties - Narrative (Details) | 1 Months Ended | 12 Months Ended | |||||||||
Nov. 13, 2023 shares | Feb. 28, 2023 USD ($) | May 31, 2021 USD ($) | May 31, 2020 USD ($) | Dec. 31, 2023 USD ($) shares | Dec. 31, 2022 USD ($) ft² | Dec. 31, 2021 USD ($) | Dec. 30, 2022 USD ($) | Dec. 31, 2020 USD ($) | Oct. 22, 2019 USD ($) | May 01, 2018 USD ($) | |
Related Party Transaction [Line Items] | |||||||||||
Loans and accrued interest receivable | $ 13,108,204,000 | $ 15,243,889,000 | |||||||||
Amount of participation, student loan asset-backed securities at par value | 63,000 | 395,400,000 | |||||||||
Loan amount outstanding | 11,918,158,000 | 14,785,283,000 | |||||||||
Cash and cash equivalents | 168,112,000 | 118,146,000 | $ 125,563,000 | $ 121,249,000 | |||||||
Restricted cash - due to customers | 368,656,000 | 294,311,000 | 326,645,000 | $ 283,971,000 | |||||||
Total interest income | 1,109,800,000 | 742,806,000 | 523,835,000 | ||||||||
Bank deposits | $ 743,599,000 | 691,322,000 | |||||||||
Operating Lease Income Comprehensive Income Extensible List Not Disclosed Flag | commercial rent and storage income | ||||||||||
401 Building | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Ownership percentage | 50% | ||||||||||
330-333 | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Ownership percentage | 50% | ||||||||||
TDP Phase III | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Ownership percentage | 25% | ||||||||||
Loan Origination Purchase Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party transaction | 100,000 | 100,000 | |||||||||
FFELP Participation Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party transaction period | 5 days | ||||||||||
Call Center Services Provided | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party transaction | $ 0 | 0 | 400,000 | ||||||||
Other Fees Paid | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party transaction | 592,000 | 177,000 | 280,000 | ||||||||
Employee Sharing Arrangement, Fees Received | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party transaction | 351,000 | 342,000 | 342,000 | ||||||||
Plan Administration Of 401K, Fees Paid | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party transaction | 852,000 | 793,000 | 766,000 | ||||||||
Whitetail Rock Capital Management Agreement, Union Bank Established Trusts, Fees Earned | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party transaction | 5,500,000 | 4,900,000 | 6,300,000 | ||||||||
Whitetail Rock Capital Management Agreement, Other Related Party Established Trusts | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party transaction | $ 249,000 | 216,000 | 213,000 | ||||||||
Whitetail Rock Capital Management Agreement, Other Related Party Established Trusts | Class A | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of shares for which related party is investment advisor | shares | 501,786 | ||||||||||
Whitetail Rock Capital Management Agreement, Other Related Party Established Trusts | Class B | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of shares for which related party is investment advisor | shares | 4,500,000 | ||||||||||
SLABS Fund-I, SLABS Fund-II, SLABS Fund-III, SLABS Fund-IV, And SLABS Fund-V, Custodian Fee Paid | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party transaction | $ 300,000 | 300,000 | 300,000 | ||||||||
Transactions With Agile Sports Technologies, Inc. | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party transaction | $ 31,500,000 | ||||||||||
Transactions With Agile Sports Technologies, Inc., Payment For Use Of Cafeteria | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party transaction | 558,000 | 158,000 | |||||||||
Lease Arrangements, Omaha, Nebraska, Termination Fee | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Related party transaction | 2,400,000 | ||||||||||
Related Party | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Cash and cash equivalents | 133,200,000 | 93,562,000 | |||||||||
Related Party | Loan Origination Purchase Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Loans purchased, net premium paid | 0 | 200,000 | 400,000 | ||||||||
Related party transaction | 0 | ||||||||||
Related Party | Loan Servicing | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Loans and accrued interest receivable | 173,800,000 | 203,400,000 | 262,600,000 | ||||||||
Revenue | 300,000 | 400,000 | 500,000 | ||||||||
Related Party | FFELP Participation Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Amount of participation, FFELP student loans | 295,100,000 | 734,700,000 | |||||||||
Maximum participation to Union Bank FFELP loans | 900,000,000 | ||||||||||
Amount of participation, student loan asset-backed securities at par value | 100,000 | 395,400,000 | |||||||||
Related Party | Real Estate Funding, 401 Building, LLC | Notes Payable to Banks | Promissory Note | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Loan amount outstanding | $ 1,500,000 | ||||||||||
Interest rate | 6% | ||||||||||
Related Party | Real Estate Funding, 30-333, LLC | Notes Payable to Banks | Promissory Note | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Loan amount outstanding | $ 162,000 | ||||||||||
Interest rate | 6% | ||||||||||
Related Party | Real Estate Funding, TDP Phase III | Notes Payable to Banks | Promissory Note | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Loan amount outstanding | $ 20,000,000 | ||||||||||
Interest rate | 5.85% | ||||||||||
Related Party | Operating Cash Accounts | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Cash and cash equivalents | 459,100,000 | 362,000,000 | |||||||||
Restricted cash - due to customers | 325,900,000 | 268,400,000 | |||||||||
Total interest income | 4,700,000 | 1,200,000 | 200,000 | ||||||||
Related Party | Administration Service Fees | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Revenue | 2,500,000 | 2,100,000 | 3,500,000 | ||||||||
Related Party | College Savings Plans | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Bank deposits | 413,200,000 | $ 355,300,000 | |||||||||
Related Party | Lease Arrangements | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Square footage leased to related party (in square feet) | ft² | 4,100 | ||||||||||
Lease income | 55,000 | $ 82,000 | 81,000 | ||||||||
Related Party | Lease Arrangements, Omaha, Nebraska | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Operating lease expense | 1,100,000 | ||||||||||
Related Party | Whitetail Rock Capital Management Agreement, Union Bank Established Trusts | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Amount invested in funds | $ 2,400,000,000 | ||||||||||
Related Party | Whitetail Rock Capital Management Agreement, Union Bank Established Trusts | Minimum | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Basis points earned | 0.10% | ||||||||||
Related Party | Whitetail Rock Capital Management Agreement, Union Bank Established Trusts | Maximum | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Basis points earned | 0.25% | ||||||||||
Related Party | Whitetail Rock Capital Management Agreement, Other Related Party Established Trusts | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Basis points earned | 0.05% | ||||||||||
Related Party | SLABS Fund-I, SLABS Fund-II, SLABS Fund-III, SLABS Fund-IV, and SLABS Fund-V | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Basis points earned | 0.50% | ||||||||||
Amount invested in funds | $ 131,700,000 | ||||||||||
Percentage of basis points paid | 50% | ||||||||||
Related Party | Combined Direct Ownership Interest In Agile Sports Technologies, Inc. | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Ownership percentage | 21% | ||||||||||
Related Party | Combined Indirect Ownership Interest In Agile Sports Technologies, Inc. | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Ownership percentage | 4% | ||||||||||
Related Party | Transactions With Agile Sports Technologies, Inc. | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Payment to acquire additional ownership interests in investment | $ 5,000,000 | $ 26,000,000 | |||||||||
Related Party | Shares Purchased Under Repurchase Program | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Number of shares repurchased | shares | 283,112 | ||||||||||
Federally Insured Loans | Related Party | Loan Origination Purchase Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Loans purchased | $ 467,600,000 | ||||||||||
Private Education Loans | Related Party | Loan Origination Purchase Agreement | |||||||||||
Related Party Transaction [Line Items] | |||||||||||
Loans purchased | $ 8,100,000 | $ 22,300,000 |
Related Parties - Management an
Related Parties - Management and Performance Fees under a Management Agreement (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investment amount | Union Bank | |||
Related Party Transaction [Line Items] | |||
Investment amount | $ 18,456,829 | $ 4,881,063 | $ 0 |
Investment amount | F&M | |||
Related Party Transaction [Line Items] | |||
Investment amount | 0 | 3,487,000 | 7,913,000 |
Investment amount | North Central Bancorp, Inc. | |||
Related Party Transaction [Line Items] | |||
Investment amount | 2,212,394 | 0 | 2,466,667 |
Investment amount | Infovisa, Inc. | |||
Related Party Transaction [Line Items] | |||
Investment amount | 737,465 | 507,781 | 562,600 |
Investment amount | Farm and Home Insurance Agency Inc. | |||
Related Party Transaction [Line Items] | |||
Investment amount | 737,465 | 0 | 116,667 |
Revenue recognized by the Company from management and performance fees | Union Bank | |||
Related Party Transaction [Line Items] | |||
Related party transaction | 152,757 | 66,568 | 0 |
Revenue recognized by the Company from management and performance fees | F&M | |||
Related Party Transaction [Line Items] | |||
Related party transaction | 123,077 | 123,077 | 29,491 |
Revenue recognized by the Company from management and performance fees | North Central Bancorp, Inc. | |||
Related Party Transaction [Line Items] | |||
Related party transaction | 42,769 | 30,769 | 14,958 |
Revenue recognized by the Company from management and performance fees | Infovisa, Inc. | |||
Related Party Transaction [Line Items] | |||
Related party transaction | 12,234 | 8,369 | 1,923 |
Revenue recognized by the Company from management and performance fees | Farm and Home Insurance Agency Inc. | |||
Related Party Transaction [Line Items] | |||
Related party transaction | $ 7,846 | $ 3,846 | $ 962 |
Related Parties - Solar Funding
Related Parties - Solar Funding (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2023 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | ||
Loan amount outstanding | $ 11,918,158,000 | $ 14,785,283,000 |
Office space - Palatine, Illinois | ||
Related Party Transaction [Line Items] | ||
Original loan amount | $ 287,000 | |
Fixed interest rate | 6.05% | |
Office space - Palatine, Illinois | Related Party | ||
Related Party Transaction [Line Items] | ||
Loan amount outstanding | $ 274,860 | |
Warehouse - Elk Grove Village, Illinois | ||
Related Party Transaction [Line Items] | ||
Original loan amount | $ 332,000 | |
Fixed interest rate | 5.35% | |
Warehouse - Elk Grove Village, Illinois | Related Party | ||
Related Party Transaction [Line Items] | ||
Loan amount outstanding | $ 278,403 | |
Solarfield - Round Lake, Illinois | ||
Related Party Transaction [Line Items] | ||
Original loan amount | $ 900,000 | |
Fixed interest rate | 5% | |
Solarfield - Round Lake, Illinois | Related Party | ||
Related Party Transaction [Line Items] | ||
Loan amount outstanding | $ 882,449 | |
Solarfield - Round Lake, Illinois | ||
Related Party Transaction [Line Items] | ||
Original loan amount | $ 1,700,000 | |
Fixed interest rate | 5% | |
Solarfield - Round Lake, Illinois | Related Party | ||
Related Party Transaction [Line Items] | ||
Loan amount outstanding | $ 1,659,076 | |
Solarfield - St. Charles, Illinois | ||
Related Party Transaction [Line Items] | ||
Original loan amount | $ 2,300,000 | |
Fixed interest rate | 5% | |
Solarfield - St. Charles, Illinois | Related Party | ||
Related Party Transaction [Line Items] | ||
Loan amount outstanding | $ 2,094,575 | |
Solarfield - St. Charles, Illinois | ||
Related Party Transaction [Line Items] | ||
Original loan amount | $ 600,000 | |
Fixed interest rate | 5% | |
Solarfield - St. Charles, Illinois | Related Party | ||
Related Party Transaction [Line Items] | ||
Loan amount outstanding | $ 588,359 |
Fair Value - Fair Value, Assets
Fair Value - Fair Value, Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Investments | $ 1,006,810 | $ 1,428,119 |
Derivative instruments | $ 452 | 0 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | |
Total assets | $ 1,007,262 | 1,428,119 |
Liabilities: | ||
Derivative instruments | $ 1,976 | 0 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | |
Total liabilities | $ 1,976 | 0 |
Asset-backed debt securities - available-for-sale | ||
Assets: | ||
Investments | 955,903 | 1,389,037 |
Equity securities | ||
Assets: | ||
Investments | 73 | 6,719 |
Equity securities measured at net asset value | ||
Assets: | ||
Investments | 50,834 | 32,363 |
Level 1 | ||
Assets: | ||
Investments | 172 | 6,819 |
Derivative instruments | 0 | 0 |
Total assets | 172 | 6,819 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Total liabilities | 0 | 0 |
Level 1 | Asset-backed debt securities - available-for-sale | ||
Assets: | ||
Investments | 99 | 100 |
Level 1 | Equity securities | ||
Assets: | ||
Investments | 73 | 6,719 |
Level 2 | ||
Assets: | ||
Investments | 955,804 | 1,388,937 |
Derivative instruments | 452 | 0 |
Total assets | 956,256 | 1,388,937 |
Liabilities: | ||
Derivative instruments | 1,976 | 0 |
Total liabilities | 1,976 | 0 |
Level 2 | Asset-backed debt securities - available-for-sale | ||
Assets: | ||
Investments | 955,804 | 1,388,937 |
Level 2 | Equity securities | ||
Assets: | ||
Investments | $ 0 | $ 0 |
Fair Value - Fair Value of Fina
Fair Value - Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financial assets: | ||||
Loans receivable | $ 13,108,204 | $ 15,243,889 | ||
Accrued loan interest receivable | 764,385 | 816,864 | ||
Cash and cash equivalents | 168,112 | 118,146 | $ 125,563 | $ 121,249 |
Investments - held to maturity | 163,622 | |||
Restricted cash - due to customers | 368,656 | 294,311 | $ 326,645 | $ 283,971 |
Financial liabilities: | ||||
Accrued interest payable | 35,391 | 36,049 | ||
Bank deposits | 743,599 | 691,322 | ||
Due to customers | 425,507 | 348,317 | ||
Fair value | ||||
Financial assets: | ||||
Loans receivable | 12,800,638 | 14,586,794 | ||
Accrued loan interest receivable | 764,385 | 816,864 | ||
Cash and cash equivalents | 168,112 | 118,146 | ||
Investments (at fair value) | 1,006,810 | 1,428,119 | ||
Investments - held to maturity | 163,622 | 18,996 | ||
Notes receivable | 53,747 | 31,106 | ||
Beneficial interest in loan securitizations | 262,093 | 162,360 | ||
Restricted cash | 488,723 | 945,159 | ||
Restricted cash - due to customers | 368,656 | 294,311 | ||
Derivative instruments | 452 | |||
Financial liabilities: | ||||
Bonds and notes payable | 11,629,359 | 14,088,666 | ||
Accrued interest payable | 35,391 | 36,049 | ||
Bank deposits | 722,973 | 664,573 | ||
Due to customers | 425,507 | 348,317 | ||
Derivative instruments | 1,976 | |||
Fair value | Level 1 | ||||
Financial assets: | ||||
Loans receivable | 0 | 0 | ||
Accrued loan interest receivable | 0 | 0 | ||
Cash and cash equivalents | 168,112 | 118,146 | ||
Investments (at fair value) | 172 | 6,819 | ||
Investments - held to maturity | 0 | 0 | ||
Notes receivable | 0 | 0 | ||
Beneficial interest in loan securitizations | 0 | 0 | ||
Restricted cash | 488,723 | 945,159 | ||
Restricted cash - due to customers | 368,656 | 294,311 | ||
Derivative instruments | 0 | |||
Financial liabilities: | ||||
Bonds and notes payable | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Bank deposits | 467,420 | 355,282 | ||
Due to customers | 425,507 | 348,317 | ||
Derivative instruments | 0 | |||
Fair value | Level 2 | ||||
Financial assets: | ||||
Loans receivable | 0 | 0 | ||
Accrued loan interest receivable | 764,385 | 816,864 | ||
Cash and cash equivalents | 0 | 0 | ||
Investments (at fair value) | 955,804 | 1,388,937 | ||
Investments - held to maturity | 163,622 | 18,996 | ||
Notes receivable | 53,747 | 31,106 | ||
Beneficial interest in loan securitizations | 0 | 0 | ||
Restricted cash | 0 | 0 | ||
Restricted cash - due to customers | 0 | 0 | ||
Derivative instruments | 452 | |||
Financial liabilities: | ||||
Bonds and notes payable | 11,629,359 | 14,088,666 | ||
Accrued interest payable | 35,391 | 36,049 | ||
Bank deposits | 255,553 | 309,291 | ||
Due to customers | 0 | 0 | ||
Derivative instruments | 1,976 | |||
Fair value | Level 3 | ||||
Financial assets: | ||||
Loans receivable | 12,800,638 | 14,586,794 | ||
Accrued loan interest receivable | 0 | 0 | ||
Cash and cash equivalents | 0 | 0 | ||
Investments (at fair value) | 0 | 0 | ||
Investments - held to maturity | 0 | 0 | ||
Notes receivable | 0 | 0 | ||
Beneficial interest in loan securitizations | 262,093 | 162,360 | ||
Restricted cash | 0 | 0 | ||
Restricted cash - due to customers | 0 | 0 | ||
Derivative instruments | 0 | |||
Financial liabilities: | ||||
Bonds and notes payable | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Bank deposits | 0 | 0 | ||
Due to customers | 0 | 0 | ||
Derivative instruments | 0 | |||
Carrying value | ||||
Financial assets: | ||||
Loans receivable | 12,343,819 | 14,427,025 | ||
Accrued loan interest receivable | 764,385 | 816,864 | ||
Cash and cash equivalents | 168,112 | 118,146 | ||
Investments (at fair value) | 1,006,810 | 1,428,119 | ||
Investments - held to maturity | 162,738 | 18,774 | ||
Notes receivable | 53,747 | 31,106 | ||
Beneficial interest in loan securitizations | 225,079 | 138,738 | ||
Restricted cash | 488,723 | 945,159 | ||
Restricted cash - due to customers | 368,656 | 294,311 | ||
Derivative instruments | 452 | |||
Financial liabilities: | ||||
Bonds and notes payable | 11,828,393 | 14,637,195 | ||
Accrued interest payable | 35,391 | 36,049 | ||
Bank deposits | 743,599 | 691,322 | ||
Due to customers | 425,507 | $ 348,317 | ||
Derivative instruments | $ 1,976 |
Condensed Parent Company Fina_3
Condensed Parent Company Financial Statements - Condensed Parent Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||||
Total cash and cash equivalents | $ 168,112 | $ 118,146 | $ 125,563 | $ 121,249 |
Restricted cash | 488,723 | 945,159 | 741,981 | 553,175 |
Other assets | 187,957 | 102,842 | ||
Total assets | 16,736,645 | 19,374,044 | 21,678,041 | |
Liabilities: | ||||
Other liabilities | 481,840 | 461,259 | ||
Total liabilities | 13,514,730 | 16,174,142 | ||
Nelnet, Inc. shareholders' equity: | ||||
Additional paid-in capital | 3,096 | 1,109 | ||
Retained earnings | 3,279,273 | 3,234,844 | ||
Accumulated other comprehensive loss, net | (20,119) | (37,366) | ||
Total Nelnet, Inc. shareholders' equity | 3,262,621 | 3,198,959 | ||
Noncontrolling interests | (40,706) | 943 | ||
Total equity | 3,221,915 | 3,199,902 | $ 2,952,838 | $ 2,628,349 |
Total liabilities and equity | 16,736,645 | 19,374,044 | ||
Parent Company | ||||
Assets: | ||||
Total cash and cash equivalents | 31,153 | 27,201 | ||
Investments and notes receivable | 1,071,335 | 1,464,583 | ||
Investment in subsidiary debt | 287,192 | 410,191 | ||
Restricted cash | 61,527 | 114,820 | ||
Investment in subsidiaries | 1,951,098 | 2,200,344 | ||
Notes receivable from subsidiaries | 102,694 | 67,012 | ||
Other assets | 128,903 | 108,983 | ||
Total assets | 3,633,902 | 4,393,134 | ||
Liabilities: | ||||
Notes payable, net of debt issuance costs | 206,520 | 960,358 | ||
Other liabilities | 161,890 | 233,536 | ||
Total liabilities | 368,410 | 1,193,894 | ||
Nelnet, Inc. shareholders' equity: | ||||
Common stock | 371 | 372 | ||
Additional paid-in capital | 3,096 | 1,109 | ||
Retained earnings | 3,279,273 | 3,234,844 | ||
Accumulated other comprehensive loss, net | (20,119) | (37,366) | ||
Total Nelnet, Inc. shareholders' equity | 3,262,621 | 3,198,959 | ||
Noncontrolling interests | 2,871 | 281 | ||
Total equity | 3,265,492 | 3,199,240 | ||
Total liabilities and equity | $ 3,633,902 | $ 4,393,134 |
Condensed Parent Company Fina_4
Condensed Parent Company Financial Statements - Condensed Parent Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Investment interest | $ 177,855 | $ 91,601 | $ 41,498 |
Interest expense on bonds and notes payable and bank deposits | 845,091 | 430,137 | 176,233 |
Net interest income | 264,709 | 312,669 | 347,602 |
Other income (expense): | |||
Other, net | (48,787) | 25,486 | 78,681 |
Impairment expense | (31,925) | (15,523) | (16,360) |
Derivative market value adjustments and derivative settlements, net | (16,701) | 264,634 | 71,446 |
Total other income (expense), net | 955,194 | 1,246,045 | 977,079 |
Operating expenses | 860,506 | 834,434 | 726,342 |
Income (loss) before income taxes | 74,188 | 509,465 | 502,105 |
Income tax benefit (expense) | (19,753) | (113,224) | (115,822) |
Net income | 54,435 | 396,241 | 386,283 |
Net loss attributable to noncontrolling interests | 37,097 | 11,106 | 7,003 |
Net income attributable to Nelnet, Inc. | 91,532 | 407,347 | 393,286 |
Parent Company | |||
Investment interest | 86,696 | 50,465 | 12,455 |
Interest expense on bonds and notes payable and bank deposits | 31,142 | 21,489 | 3,515 |
Net interest income | 55,554 | 28,976 | 8,940 |
Other income (expense): | |||
Other, net | (57,959) | (42,625) | 38,761 |
Equity in subsidiaries income | 103,959 | 228,169 | 313,451 |
Impairment expense | (2,060) | (6,561) | (4,637) |
Derivative market value adjustments and derivative settlements, net | (15,662) | 264,634 | 71,446 |
Total other income (expense), net | 28,278 | 443,617 | 419,021 |
Operating expenses | 5,445 | 14,552 | 7,632 |
Income (loss) before income taxes | 78,387 | 458,041 | 420,329 |
Income tax benefit (expense) | 12,935 | (50,732) | (27,101) |
Net income | 91,322 | 407,309 | 393,228 |
Net loss attributable to noncontrolling interests | 210 | 38 | 58 |
Net income attributable to Nelnet, Inc. | $ 91,532 | $ 407,347 | $ 393,286 |
Condensed Parent Company Fina_5
Condensed Parent Company Financial Statements - Condensed Parent Statements of Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Net income | $ 54,435 | $ 396,241 | $ 386,283 |
Net changes related to available-for-sale debt securities: | |||
Unrealized holding gains (losses) arising during period, net | 18,379 | (58,946) | 6,921 |
Reclassification of losses (gains) recognized in net income, net | 3,504 | (5,902) | (2,695) |
Income tax effect | (5,301) | 15,564 | (1,014) |
Unrealized gains (losses) during period after reclassifications and tax | 16,784 | (49,284) | 3,212 |
Other comprehensive income (loss) | 17,247 | (46,670) | 3,202 |
Comprehensive income | 71,682 | 349,571 | 389,485 |
Comprehensive loss attributable to noncontrolling interests | 37,097 | 11,106 | 7,003 |
Comprehensive income attributable to Nelnet, Inc. | 108,779 | 360,677 | 396,488 |
Parent Company | |||
Net income | 91,322 | 407,309 | 393,228 |
Net changes related to equity in subsidiaries other comprehensive income (loss) | 9,473 | (11,188) | 6,692 |
Net changes related to available-for-sale debt securities: | |||
Unrealized holding gains (losses) arising during period, net | 6,412 | (42,793) | (4,220) |
Reclassification of losses (gains) recognized in net income, net | 3,818 | (3,894) | (372) |
Income tax effect | (2,456) | 11,205 | 1,102 |
Unrealized gains (losses) during period after reclassifications and tax | 7,774 | (35,482) | (3,490) |
Other comprehensive income (loss) | 17,247 | (46,670) | 3,202 |
Comprehensive income | 108,569 | 360,639 | 396,430 |
Comprehensive loss attributable to noncontrolling interests | 210 | 38 | 58 |
Comprehensive income attributable to Nelnet, Inc. | $ 108,779 | $ 360,677 | $ 396,488 |
Condensed Parent Company Fina_6
Condensed Parent Company Financial Statements - Condensed Parent Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | ||
Net income attributable to Nelnet, Inc. | $ 91,532 | $ 407,347 | $ 393,286 | |
Net loss attributable to noncontrolling interest | (37,097) | (11,106) | (7,003) | |
Net income | 54,435 | 396,241 | 386,283 | |
Adjustments to reconcile net income to net cash provided by operating activities, net of business acquisitions: | ||||
Depreciation and amortization | 145,393 | 176,248 | 132,325 | |
Derivative market value adjustments | 41,773 | (231,691) | (92,813) | |
Proceeds from termination of derivative instruments | 164,079 | 91,786 | 0 | |
(Payments to) proceeds from clearinghouse - initial and variation margin, net | (213,923) | 148,691 | 91,294 | |
Loss (gain) on investments, net | 117,968 | 24,643 | (3,811) | |
Proceeds from sale of equity securities, net of purchases | 75 | 42,841 | (42,916) | |
Deferred income tax (benefit) expense | (51,963) | 34,640 | 55,622 | |
Non-cash compensation expense | 16,476 | 14,176 | 10,673 | |
Impairment expense | 29,539 | 15,523 | 16,360 | |
(Increase) decrease in other assets | 3,890 | (11,783) | 46,214 | |
Increase in other liabilities | 85,537 | 40,001 | 29,775 | |
Net cash provided by operating activities | 432,975 | 684,059 | 480,328 | |
Cash flows from investing activities, net of business acquisitions: | ||||
Purchases of available-for-sale securities | (581,522) | (1,029,438) | (734,817) | |
Proceeds from sales of available-for-sale securities | 963,117 | 511,124 | 160,976 | |
Proceeds from beneficial interest in consumer loan securitization | 32,149 | 21,531 | 40,602 | |
Proceeds from other investments and repayments of notes receivable | 41,309 | 65,369 | 191,821 | |
Net cash provided by investing activities | 1,938,082 | 2,272,027 | 1,185,935 | |
Cash flows from financing activities, net of business acquisitions: | ||||
Payments on notes payable | (3,606,160) | (4,339,164) | (3,683,770) | |
Proceeds from issuance of notes payable | 761,182 | 1,301,554 | 1,947,559 | |
Payments of debt issuance costs | (5,744) | (3,795) | (7,093) | |
Dividends paid | (39,419) | (36,608) | (34,457) | |
Repurchases of common stock | (28,028) | (97,685) | (58,111) | |
Proceeds from issuance of common stock | 1,780 | 1,633 | 1,465 | |
Issuance of noncontrolling interests | 88,389 | 55,777 | 50,716 | |
Net cash used in financing activities | (2,703,198) | (2,792,499) | (1,430,348) | |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (332,125) | 163,427 | 235,794 | |
Cash, cash equivalents, and restricted cash, beginning of period | 1,357,616 | 1,194,189 | 958,395 | |
Cash, cash equivalents, and restricted cash, end of period | 1,025,491 | 1,357,616 | 1,194,189 | |
Cash disbursements made for: | ||||
Interest | 781,307 | 350,662 | 152,173 | |
Income taxes, net of refunds and credits | [1] | 47,589 | 57,705 | 18,659 |
Non-cash operating, investing, and financing activity: | ||||
Issuance of noncontrolling interests | 12,848 | 11,226 | 10,371 | |
Parent Company | ||||
Net income attributable to Nelnet, Inc. | 91,532 | 407,347 | 393,286 | |
Net loss attributable to noncontrolling interest | (210) | (38) | (58) | |
Net income | 91,322 | 407,309 | 393,228 | |
Adjustments to reconcile net income to net cash provided by operating activities, net of business acquisitions: | ||||
Depreciation and amortization | 620 | 619 | 591 | |
Derivative market value adjustments | 40,250 | (231,691) | (92,813) | |
Proceeds from termination of derivative instruments | 164,079 | 91,786 | 0 | |
(Payments to) proceeds from clearinghouse - initial and variation margin, net | (213,923) | 148,691 | 91,294 | |
Equity in earnings of subsidiaries | (103,959) | (228,169) | (313,451) | |
Loss (gain) on investments, net | 64,584 | 51,175 | 721 | |
Proceeds from sale of equity securities, net of purchases | 75 | 42,841 | (42,916) | |
Deferred income tax (benefit) expense | (71,056) | 39,997 | 47,423 | |
Non-cash compensation expense | 16,476 | 14,176 | 10,673 | |
Impairment expense | 2,060 | 6,561 | 4,637 | |
(Increase) decrease in other assets | (18,181) | 14,816 | (2,578) | |
Increase in other liabilities | 11,049 | 10,590 | 1,784 | |
Net cash provided by operating activities | (16,604) | 368,701 | 98,593 | |
Cash flows from investing activities, net of business acquisitions: | ||||
Purchases of available-for-sale securities | (206,927) | (713,681) | (640,644) | |
Proceeds from sales of available-for-sale securities | 569,670 | 435,937 | 133,286 | |
Proceeds from beneficial interest in consumer loan securitization | 6,783 | 345 | 0 | |
Capital distributions from subsidiaries, net | 355,790 | 7,340 | 294,578 | |
(Increase) decrease in notes receivable from subsidiaries | (35,682) | (66,698) | 20,895 | |
Proceeds from (payments on) subsidiary debt, net | 122,999 | (36,104) | (335,184) | |
Purchases of other investments | (60,707) | (122,236) | (110,184) | |
Proceeds from other investments and repayments of notes receivable | 32,732 | 20,358 | 129,899 | |
Net cash provided by investing activities | 784,658 | (474,739) | (507,354) | |
Cash flows from financing activities, net of business acquisitions: | ||||
Payments on notes payable | (954,163) | (7,002) | (126,530) | |
Proceeds from issuance of notes payable | 199,855 | 233,194 | 619,259 | |
Payments of debt issuance costs | 0 | (10) | (1,286) | |
Dividends paid | (39,419) | (36,608) | (34,457) | |
Repurchases of common stock | (28,028) | (97,685) | (58,111) | |
Proceeds from issuance of common stock | 1,780 | 1,633 | 1,465 | |
Issuance of noncontrolling interests | 2,580 | 0 | 0 | |
Net cash used in financing activities | (817,395) | 93,522 | 400,340 | |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (49,341) | (12,516) | (8,421) | |
Cash, cash equivalents, and restricted cash, beginning of period | 142,021 | 154,537 | 162,958 | |
Cash, cash equivalents, and restricted cash, end of period | 92,680 | 142,021 | 154,537 | |
Cash disbursements made for: | ||||
Interest | 34,895 | 14,649 | 2,301 | |
Income taxes, net of refunds and credits | 47,589 | 57,705 | 18,659 | |
Non-cash operating, investing, and financing activity: | ||||
(Contributions to) distributions from subsidiary, net | (6,888) | 6,068 | 835 | |
Issuance of noncontrolling interests | $ 220 | $ 0 | $ 0 | |
[1]For 2023, 2022, and 2021 the Company utilized $53.8 million, $11.2 million, and $34.1 million of federal and state tax credits, respectively, related primarily to renewable energy. |