☒ | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
☐ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Nebraska | 84-0748903 | ||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | ||||||||||
121 South 13th Street, Suite 100 | |||||||||||
Lincoln, | Nebraska | 68508 | |||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol | Name of each exchange on which registered | ||||||
Class A Common Stock, Par Value $0.01 per Share | NNI | New York Stock Exchange |
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 6. | |||||||||||
NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED BALANCE SHEETS | CONSOLIDATED BALANCE SHEETS | CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||
(Dollars in thousands, except share data) | (Dollars in thousands, except share data) | (Dollars in thousands, except share data) | ||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||
As of | As of | As of | As of | |||||||||||||||||||
September 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||
Assets: | Assets: | Assets: | ||||||||||||||||||||
Loans and accrued interest receivable (net of allowance for loan losses of $138,044 and $175,698, respectively) | $ | 19,304,203 | 20,185,656 | |||||||||||||||||||
Loans and accrued interest receivable (net of allowance for loan losses of $117,825 and $127,113, respectively) | Loans and accrued interest receivable (net of allowance for loan losses of $117,825 and $127,113, respectively) | $ | 17,621,576 | 18,335,197 | ||||||||||||||||||
Cash and cash equivalents: | Cash and cash equivalents: | Cash and cash equivalents: | ||||||||||||||||||||
Cash and cash equivalents - not held at a related party | Cash and cash equivalents - not held at a related party | 31,966 | 33,292 | Cash and cash equivalents - not held at a related party | 36,111 | 30,128 | ||||||||||||||||
Cash and cash equivalents - held at a related party | Cash and cash equivalents - held at a related party | 159,970 | 87,957 | Cash and cash equivalents - held at a related party | 126,674 | 95,435 | ||||||||||||||||
Total cash and cash equivalents | Total cash and cash equivalents | 191,936 | 121,249 | Total cash and cash equivalents | 162,785 | 125,563 | ||||||||||||||||
Investments | Investments | 1,374,913 | 992,940 | Investments | 1,649,578 | 1,588,919 | ||||||||||||||||
Restricted cash | Restricted cash | 764,089 | 553,175 | Restricted cash | 757,954 | 741,981 | ||||||||||||||||
Restricted cash - due to customers | Restricted cash - due to customers | 295,053 | 283,971 | Restricted cash - due to customers | 256,927 | 326,645 | ||||||||||||||||
Accounts receivable (net of allowance for doubtful accounts of $1,458 and $1,824, respectively) | 78,508 | 76,460 | ||||||||||||||||||||
Accounts receivable (net of allowance for doubtful accounts of $1,098 and $1,160, respectively) | Accounts receivable (net of allowance for doubtful accounts of $1,098 and $1,160, respectively) | 144,902 | 163,315 | |||||||||||||||||||
Goodwill | Goodwill | 142,092 | 142,092 | Goodwill | 142,092 | 142,092 | ||||||||||||||||
Intangible assets, net | Intangible assets, net | 55,176 | 75,070 | Intangible assets, net | 49,544 | 52,029 | ||||||||||||||||
Property and equipment, net | Property and equipment, net | 117,296 | 123,527 | Property and equipment, net | 120,779 | 119,413 | ||||||||||||||||
Other assets | Other assets | 79,473 | 92,020 | Other assets | 83,604 | 82,887 | ||||||||||||||||
Total assets | Total assets | $ | 22,402,739 | 22,646,160 | Total assets | $ | 20,989,741 | 21,678,041 | ||||||||||||||
Liabilities: | Liabilities: | Liabilities: | ||||||||||||||||||||
Bonds and notes payable | Bonds and notes payable | $ | 18,610,748 | 19,320,726 | Bonds and notes payable | $ | 16,736,701 | 17,631,089 | ||||||||||||||
Accrued interest payable | Accrued interest payable | 4,441 | 28,701 | Accrued interest payable | 7,216 | 4,566 | ||||||||||||||||
Bank deposits | Bank deposits | 200,651 | 54,633 | Bank deposits | 484,047 | 344,315 | ||||||||||||||||
Other liabilities | Other liabilities | 375,393 | 312,280 | Other liabilities | 400,523 | 379,231 | ||||||||||||||||
Due to customers | Due to customers | 354,543 | 301,471 | Due to customers | 276,191 | 366,002 | ||||||||||||||||
Total liabilities | Total liabilities | 19,545,776 | 20,017,811 | Total liabilities | 17,904,678 | 18,725,203 | ||||||||||||||||
Commitments and contingencies | Commitments and contingencies | 0 | 0 | Commitments and contingencies | 0 | 0 | ||||||||||||||||
Equity: | Equity: | Equity: | ||||||||||||||||||||
Nelnet, Inc. shareholders' equity: | Nelnet, Inc. shareholders' equity: | Nelnet, Inc. shareholders' equity: | ||||||||||||||||||||
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding | Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding | — | — | Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding | — | — | ||||||||||||||||
Common stock: | Common stock: | Common stock: | ||||||||||||||||||||
Class A, $0.01 par value. Authorized 600,000,000 shares; issued and outstanding 27,556,370 shares and 27,193,154 shares, respectively | 276 | 272 | ||||||||||||||||||||
Class B, convertible, $0.01 par value. Authorized 60,000,000 shares; issued and outstanding 10,681,454 shares and 11,155,571 shares, respectively | 107 | 112 | ||||||||||||||||||||
Class A, $0.01 par value. Authorized 600,000,000 shares; issued and outstanding 27,151,270 shares and 27,239,654 shares, respectively | Class A, $0.01 par value. Authorized 600,000,000 shares; issued and outstanding 27,151,270 shares and 27,239,654 shares, respectively | 272 | 272 | |||||||||||||||||||
Class B, convertible, $0.01 par value. Authorized 60,000,000 shares; issued and outstanding 10,674,892 shares and 10,676,642 shares, respectively | Class B, convertible, $0.01 par value. Authorized 60,000,000 shares; issued and outstanding 10,674,892 shares and 10,676,642 shares, respectively | 107 | 107 | |||||||||||||||||||
Additional paid-in capital | Additional paid-in capital | 1,593 | 3,794 | Additional paid-in capital | 1,208 | 1,000 | ||||||||||||||||
Retained earnings | Retained earnings | 2,843,799 | 2,621,762 | Retained earnings | 3,092,226 | 2,940,523 | ||||||||||||||||
Accumulated other comprehensive earnings, net | 13,479 | 6,102 | ||||||||||||||||||||
Accumulated other comprehensive (loss) earnings, net | Accumulated other comprehensive (loss) earnings, net | (5,500) | 9,304 | |||||||||||||||||||
Total Nelnet, Inc. shareholders' equity | Total Nelnet, Inc. shareholders' equity | 2,859,254 | 2,632,042 | Total Nelnet, Inc. shareholders' equity | 3,088,313 | 2,951,206 | ||||||||||||||||
Noncontrolling interests | Noncontrolling interests | (2,291) | (3,693) | Noncontrolling interests | (3,250) | 1,632 | ||||||||||||||||
Total equity | Total equity | 2,856,963 | 2,628,349 | Total equity | 3,085,063 | 2,952,838 | ||||||||||||||||
Total liabilities and equity | Total liabilities and equity | $ | 22,402,739 | 22,646,160 | Total liabilities and equity | $ | 20,989,741 | 21,678,041 | ||||||||||||||
Supplemental information - assets and liabilities of consolidated education and other lending variable interest entities: | Supplemental information - assets and liabilities of consolidated education and other lending variable interest entities: | Supplemental information - assets and liabilities of consolidated education and other lending variable interest entities: | ||||||||||||||||||||
Loans and accrued interest receivable | Loans and accrued interest receivable | $ | 19,032,669 | 20,132,996 | Loans and accrued interest receivable | $ | 17,162,119 | 17,981,414 | ||||||||||||||
Restricted cash | Restricted cash | 699,143 | 499,223 | Restricted cash | 666,369 | 674,073 | ||||||||||||||||
Bonds and notes payable | Bonds and notes payable | (18,465,230) | (19,355,375) | Bonds and notes payable | (16,660,541) | (17,462,456) | ||||||||||||||||
Accrued interest payable and other liabilities | Accrued interest payable and other liabilities | (66,913) | (83,127) | Accrued interest payable and other liabilities | (48,267) | (36,276) | ||||||||||||||||
Net assets of consolidated education and other lending variable interest entities | Net assets of consolidated education and other lending variable interest entities | $ | 1,199,669 | 1,193,717 | Net assets of consolidated education and other lending variable interest entities | $ | 1,119,680 | 1,156,755 |
NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | CONSOLIDATED STATEMENTS OF INCOME | CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except share data) | (Dollars in thousands, except share data) | (Dollars in thousands, except share data) | ||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | Three months ended | ||||||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | March 31, | ||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Interest income: | Interest income: | Interest income: | ||||||||||||||||||||||||||||||||||||||||||||
Loan interest | Loan interest | $ | 124,096 | 134,507 | 370,219 | 462,439 | Loan interest | $ | 111,377 | 124,117 | ||||||||||||||||||||||||||||||||||||
Investment interest | Investment interest | 12,558 | 5,238 | 29,122 | 18,379 | Investment interest | 13,819 | 4,986 | ||||||||||||||||||||||||||||||||||||||
Total interest income | Total interest income | 136,654 | 139,745 | 399,341 | 480,818 | Total interest income | 125,196 | 129,103 | ||||||||||||||||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||||||||||||||||||||||
Interest on bonds and notes payable and bank deposits | 50,176 | 58,423 | 127,939 | 277,788 | ||||||||||||||||||||||||||||||||||||||||||
Interest expense on bonds and notes payable and bank deposits | Interest expense on bonds and notes payable and bank deposits | 48,079 | 27,773 | |||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | 86,478 | 81,322 | 271,402 | 203,030 | Net interest income | 77,117 | 101,330 | ||||||||||||||||||||||||||||||||||||||
Less provision (negative provision) for loan losses | 5,827 | (5,821) | (10,847) | 73,476 | ||||||||||||||||||||||||||||||||||||||||||
Less negative provision for loan losses | Less negative provision for loan losses | (435) | (17,048) | |||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | Net interest income after provision for loan losses | 80,651 | 87,143 | 282,249 | 129,554 | Net interest income after provision for loan losses | 77,552 | 118,378 | ||||||||||||||||||||||||||||||||||||||
Other income/expense: | Other income/expense: | Other income/expense: | ||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | Loan servicing and systems revenue | 112,351 | 113,794 | 335,961 | 337,571 | Loan servicing and systems revenue | 136,368 | 111,517 | ||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | 85,324 | 74,121 | 257,284 | 217,100 | Education technology, services, and payment processing revenue | 112,286 | 95,258 | ||||||||||||||||||||||||||||||||||||||
Communications revenue | — | 20,211 | — | 57,390 | ||||||||||||||||||||||||||||||||||||||||||
Other | Other | 11,867 | 1,502 | 30,183 | 69,910 | Other | 9,877 | (2,168) | ||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | Gain on sale of loans | 3,444 | 14,817 | 18,715 | 33,023 | Gain on sale of loans | 2,989 | — | ||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | (14,159) | — | (12,223) | (34,419) | ||||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments and derivative settlements, net | Derivative market value adjustments and derivative settlements, net | 1,351 | 1,049 | 28,868 | (13,406) | Derivative market value adjustments and derivative settlements, net | 142,925 | 34,505 | ||||||||||||||||||||||||||||||||||||||
Total other income/expense | Total other income/expense | 200,178 | 225,494 | 658,788 | 667,169 | Total other income/expense | 404,445 | 239,112 | ||||||||||||||||||||||||||||||||||||||
Cost of services: | ||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | Cost to provide education technology, services, and payment processing services | 31,335 | 25,243 | 80,063 | 63,424 | Cost to provide education technology, services, and payment processing services | 35,545 | 27,052 | ||||||||||||||||||||||||||||||||||||||
Cost to provide communications services | — | 5,914 | — | 17,240 | ||||||||||||||||||||||||||||||||||||||||||
Total cost of services | 31,335 | 31,157 | 80,063 | 80,664 | ||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | Operating expenses: | Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 128,592 | 126,096 | 363,351 | 365,220 | Salaries and benefits | 149,414 | 115,791 | ||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 15,710 | 30,308 | 56,129 | 87,349 | Depreciation and amortization | 16,956 | 20,184 | ||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 38,324 | 34,744 | 107,611 | 115,184 | Other expenses | 39,499 | 36,698 | ||||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 182,626 | 191,148 | 527,091 | 567,753 | Total operating expenses | 205,869 | 172,673 | ||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 66,868 | 90,332 | 333,883 | 148,306 | Income before income taxes | 240,583 | 157,765 | ||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | 15,649 | 19,156 | 76,747 | 30,286 | Income tax expense | 55,697 | 34,861 | ||||||||||||||||||||||||||||||||||||||
Net income | Net income | 51,219 | 71,176 | 257,136 | 118,020 | Net income | 184,886 | 122,904 | ||||||||||||||||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests | 1,919 | 327 | 3,467 | (568) | ||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | Net loss attributable to noncontrolling interests | 1,761 | 694 | |||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc. | Net income attributable to Nelnet, Inc. | $ | 53,138 | 71,503 | 260,603 | 117,452 | Net income attributable to Nelnet, Inc. | $ | 186,647 | 123,598 | ||||||||||||||||||||||||||||||||||||
Earnings per common share: | Earnings per common share: | Earnings per common share: | ||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc. shareholders - basic and diluted | Net income attributable to Nelnet, Inc. shareholders - basic and diluted | $ | 1.38 | 1.86 | 6.74 | 2.99 | Net income attributable to Nelnet, Inc. shareholders - basic and diluted | $ | 4.91 | 3.20 | ||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding - basic and diluted | Weighted average common shares outstanding - basic and diluted | 38,595,721 | 38,538,476 | 38,646,892 | 39,229,932 | Weighted average common shares outstanding - basic and diluted | 38,041,834 | 38,603,555 |
NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 51,219 | 71,176 | 257,136 | 118,020 | Net income | $ | 184,886 | 122,904 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income: | Other comprehensive (loss) income: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net changes related to foreign currency translation adjustments | Net changes related to foreign currency translation adjustments | $ | (9) | — | (9) | — | Net changes related to foreign currency translation adjustments | $ | 9 | 1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net changes related to available-for-sale debt securities: | Net changes related to available-for-sale debt securities: | Net changes related to available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized gains during period, net | 4,524 | 1,893 | 11,770 | 2,114 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of gains to net income, net | (1,173) | (513) | (2,052) | (390) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized holding (losses) gains arising during period, net | Unrealized holding (losses) gains arising during period, net | (16,698) | 4,349 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of gains recognized in net income, net of losses | Reclassification of gains recognized in net income, net of losses | (2,793) | (508) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax effect | Income tax effect | (804) | 2,547 | (329) | 1,051 | (2,332) | 7,386 | (412) | 1,312 | Income tax effect | 4,678 | (14,813) | (922) | 2,919 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | 2,538 | 1,051 | 7,377 | 1,312 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | Other comprehensive (loss) income | (14,804) | 2,920 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | 53,757 | 72,227 | 264,513 | 119,332 | Comprehensive income | 170,082 | 125,824 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive loss (income) attributable to noncontrolling interests | 1,919 | 327 | 3,467 | (568) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive loss attributable to noncontrolling interests | Comprehensive loss attributable to noncontrolling interests | 1,761 | 694 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to Nelnet, Inc. | Comprehensive income attributable to Nelnet, Inc. | $ | 55,676 | 72,554 | 267,980 | 118,764 | Comprehensive income attributable to Nelnet, Inc. | $ | 171,843 | 126,518 |
NELNET, INC. AND SUBSIDIARIES | CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | (Dollars in thousands, except share data) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nelnet, Inc. Shareholders | Nelnet, Inc. Shareholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock shares | Common stock shares | Preferred stock | Class A common stock | Class B common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive earnings, net | Noncontrolling interests | Total equity | Preferred stock shares | Common stock shares | Preferred stock | Class A common stock | Class B common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive (loss) earnings | Noncontrolling interests | Total equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2020 | — | 27,232,836 | 11,171,609 | $ | — | 272 | 112 | 1,867 | 2,331,312 | 3,233 | 3,990 | 2,340,786 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 14 | 14 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | 71,503 | — | (327) | 71,176�� | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | 1,051 | — | 1,051 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (331) | (331) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends on Class A and Class B common stock - $0.20 per share | — | — | — | — | — | — | — | (7,664) | — | — | (7,664) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures | — | 24,132 | — | — | — | — | 553 | — | — | — | 553 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for stock based awards | — | — | — | — | — | — | 1,864 | — | — | — | 1,864 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | (93,380) | — | — | — | — | (2,580) | (2,038) | — | — | (4,618) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2020 | — | 27,163,588 | 11,171,609 | $ | — | 272 | 112 | 1,704 | 2,393,113 | 4,284 | 3,346 | 2,402,831 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2021 | — | 27,494,942 | 11,054,171 | $ | — | 275 | 111 | 10,158 | 2,812,315 | 10,941 | (5,182) | 2,828,618 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | Balance as of December 31, 2020 | — | 27,193,154 | 11,155,571 | $ | — | 272 | 112 | 3,794 | 2,621,762 | 6,102 | (3,693) | 2,628,349 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of noncontrolling interests | Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 4,935 | 4,935 | Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 1,400 | 1,400 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | — | — | — | — | — | — | — | 53,138 | — | (1,919) | 51,219 | Net income (loss) | — | — | — | — | — | — | — | 123,598 | — | (694) | 122,904 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | Other comprehensive income | — | — | — | — | — | — | — | — | 2,538 | — | 2,538 | Other comprehensive income | — | — | — | — | — | — | — | — | 2,920 | — | 2,920 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (125) | (125) | Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (102) | (102) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends on Class A and Class B common stock - $0.22 per share | Cash dividends on Class A and Class B common stock - $0.22 per share | — | — | — | — | — | — | — | (8,407) | — | — | (8,407) | Cash dividends on Class A and Class B common stock - $0.22 per share | — | — | — | — | — | — | — | (8,437) | — | — | (8,437) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures | Issuance of common stock, net of forfeitures | — | 29,805 | — | — | — | — | 493 | — | — | — | 493 | Issuance of common stock, net of forfeitures | — | 199,442 | — | — | 2 | — | 2,089 | — | — | — | 2,091 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for stock based awards | Compensation expense for stock based awards | — | — | — | — | — | — | 2,770 | — | — | — | 2,770 | Compensation expense for stock based awards | — | — | — | — | — | — | 1,985 | — | — | — | 1,985 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | Repurchase of common stock | — | (341,094) | — | — | (3) | — | (11,828) | (13,247) | — | — | (25,078) | Repurchase of common stock | — | (26,199) | — | — | — | — | (2,009) | — | — | — | (2,009) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of common stock | Conversion of common stock | — | 372,717 | (372,717) | — | 4 | (4) | — | — | — | — | — | Conversion of common stock | — | 1,400 | (1,400) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2021 | — | 27,556,370 | 10,681,454 | $ | — | 276 | 107 | 1,593 | 2,843,799 | 13,479 | (2,291) | 2,856,963 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | Balance as of March 31, 2021 | — | 27,367,797 | 11,154,171 | $ | — | 274 | 112 | 5,859 | 2,736,923 | 9,022 | (3,089) | 2,749,101 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2021 | Balance as of December 31, 2021 | — | 27,239,654 | 10,676,642 | $ | — | 272 | 107 | 1,000 | 2,940,523 | 9,304 | 1,632 | 2,952,838 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of noncontrolling interests | Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 2,004 | 2,004 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | — | — | — | — | — | — | — | 186,647 | — | (1,761) | 184,886 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | — | — | — | — | — | — | — | — | (14,804) | — | (14,804) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (5,125) | (5,125) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends on Class A and Class B common stock - $0.24 per share | Cash dividends on Class A and Class B common stock - $0.24 per share | — | — | — | — | — | — | — | (9,063) | — | — | (9,063) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures | Issuance of common stock, net of forfeitures | — | 289,919 | — | — | 3 | — | 4,382 | — | — | — | 4,385 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for stock based awards | Compensation expense for stock based awards | — | — | — | — | — | — | 2,841 | — | — | — | 2,841 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | Repurchase of common stock | — | (380,053) | — | — | (3) | — | (7,015) | (25,881) | — | — | (32,899) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of common stock | Conversion of common stock | — | 1,750 | (1,750) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2022 | Balance as of March 31, 2022 | — | 27,151,270 | 10,674,892 | $ | — | 272 | 107 | 1,208 | 3,092,226 | (5,500) | (3,250) | 3,085,063 |
NELNET, INC. AND SUBSIDIARIES | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Dollars in thousands, except share data) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nelnet, Inc. Shareholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock shares | Common stock shares | Preferred stock | Class A common stock | Class B common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive earnings, net | Noncontrolling interests | Total equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | — | 28,458,495 | 11,271,609 | $ | — | 285 | 113 | 5,715 | 2,377,627 | 2,972 | 4,382 | 2,391,094 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 66 | 66 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | — | — | 117,452 | — | 568 | 118,020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | 1,312 | — | 1,312 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (920) | (920) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends on Class A and Class B common stock - $0.60 per share | — | — | — | — | — | — | — | (23,343) | — | — | (23,343) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures | — | 196,407 | — | — | 2 | — | 5,153 | — | — | — | 5,155 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for stock based awards | — | — | — | — | — | — | 5,459 | — | — | — | 5,459 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | (1,591,314) | — | — | (16) | — | (14,623) | (58,506) | — | — | (73,145) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of adoption of new accounting standard | — | — | — | — | — | — | — | (18,867) | — | — | (18,867) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of common stock | — | 100,000 | (100,000) | — | 1 | (1) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition of noncontrolling interest | — | — | — | — | — | — | — | (1,250) | — | (750) | (2,000) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2020 | — | 27,163,588 | 11,171,609 | $ | — | 272 | 112 | 1,704 | 2,393,113 | 4,284 | 3,346 | 2,402,831 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | — | 27,193,154 | 11,155,571 | $ | — | 272 | 112 | 3,794 | 2,621,762 | 6,102 | (3,693) | 2,628,349 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 11,823 | 11,823 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | 260,603 | — | (3,467) | 257,136 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | 7,377 | — | 7,377 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (6,954) | (6,954) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends on Class A and Class B common stock - $0.66 per share | — | — | — | — | — | — | — | (25,319) | — | — | (25,319) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures | — | 261,760 | — | — | 3 | — | 4,406 | — | — | — | 4,409 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for stock based awards | — | — | — | — | — | — | 7,628 | — | — | — | 7,628 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | (372,661) | — | — | (4) | — | (14,235) | (13,247) | — | — | (27,486) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of common stock | — | 474,117 | (474,117) | — | 5 | (5) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of September 30, 2021 | — | 27,556,370 | 10,681,454 | $ | — | 276 | 107 | 1,593 | 2,843,799 | 13,479 | (2,291) | 2,856,963 |
NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS | CONSOLIDATED STATEMENTS OF CASH FLOWS | CONSOLIDATED STATEMENTS OF CASH FLOWS | ||||||||||||||||||||
(Dollars in thousands) | (Dollars in thousands) | (Dollars in thousands) | ||||||||||||||||||||
(unaudited) | (unaudited) | (unaudited) | ||||||||||||||||||||
Nine months ended | Three months ended | |||||||||||||||||||||
September 30, | March 31, | |||||||||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||||||||
Net income attributable to Nelnet, Inc. | Net income attributable to Nelnet, Inc. | $ | 260,603 | 117,452 | Net income attributable to Nelnet, Inc. | $ | 186,647 | 123,598 | ||||||||||||||
Net (loss) income attributable to noncontrolling interests | (3,467) | 568 | ||||||||||||||||||||
Net loss attributable to noncontrolling interests | Net loss attributable to noncontrolling interests | (1,761) | (694) | |||||||||||||||||||
Net income | Net income | 257,136 | 118,020 | Net income | 184,886 | 122,904 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||||||||||||
Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs | Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs | 113,651 | 149,175 | Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs | 36,335 | 38,415 | ||||||||||||||||
Loan discount accretion | Loan discount accretion | (25,048) | (27,814) | Loan discount accretion | (9,927) | (7,218) | ||||||||||||||||
(Negative provision) provision for loan losses | (10,847) | 73,476 | ||||||||||||||||||||
Negative provision for loan losses | Negative provision for loan losses | (435) | (17,048) | |||||||||||||||||||
Derivative market value adjustments | Derivative market value adjustments | (44,455) | 21,072 | Derivative market value adjustments | (145,734) | (38,809) | ||||||||||||||||
Proceeds from (payments to) clearinghouse - initial and variation margin, net | 41,033 | (20,405) | ||||||||||||||||||||
Proceeds from clearinghouse - initial and variation margin, net of payments | Proceeds from clearinghouse - initial and variation margin, net of payments | 149,649 | 38,081 | |||||||||||||||||||
Gain from sale of loans | (18,715) | (33,023) | ||||||||||||||||||||
Gain on sale of loans | Gain on sale of loans | (2,989) | — | |||||||||||||||||||
Gain from investments, net | (293) | (37,766) | ||||||||||||||||||||
Loss (gain) from repurchases of debt, net | 3,964 | (508) | ||||||||||||||||||||
Purchases of equity securities - trading, net | (41,591) | — | ||||||||||||||||||||
Deferred income tax expense (benefit) | 33,078 | (10,975) | ||||||||||||||||||||
Loss on investments, net | Loss on investments, net | 2,801 | 13,849 | |||||||||||||||||||
Proceeds from sale (purchases) of equity securities, net | Proceeds from sale (purchases) of equity securities, net | 572 | (13,512) | |||||||||||||||||||
Deferred income tax expense | Deferred income tax expense | 39,443 | 15,405 | |||||||||||||||||||
Non-cash compensation expense | Non-cash compensation expense | 7,824 | 5,538 | Non-cash compensation expense | 2,920 | 2,052 | ||||||||||||||||
Provision for beneficial interests and impairment expense, net | 12,223 | 34,419 | ||||||||||||||||||||
Increase in loan and investment accrued interest receivable | (41,931) | (27,192) | ||||||||||||||||||||
(Increase) decrease in accounts receivable | (2,137) | 45,475 | ||||||||||||||||||||
Decrease in other assets, net | 35,381 | 19,491 | ||||||||||||||||||||
Decrease in the carrying amount of ROU asset | 5,652 | 9,150 | ||||||||||||||||||||
Decrease in accrued interest payable | (24,260) | (17,673) | ||||||||||||||||||||
Increase in other liabilities, net | 41,040 | 32,733 | ||||||||||||||||||||
Negative provision for beneficial interests | Negative provision for beneficial interests | — | (2,436) | |||||||||||||||||||
Decrease (increase) in loan and investment accrued interest receivable | Decrease (increase) in loan and investment accrued interest receivable | 10,694 | (114) | |||||||||||||||||||
Decrease (increase) in accounts receivable | Decrease (increase) in accounts receivable | 18,442 | (3,831) | |||||||||||||||||||
(Increase) decrease in other assets, net | (Increase) decrease in other assets, net | (1,963) | 5,147 | |||||||||||||||||||
Decrease in the carrying amount of ROU asset, net | Decrease in the carrying amount of ROU asset, net | 1,439 | 1,418 | |||||||||||||||||||
Increase (decrease) in accrued interest payable | Increase (decrease) in accrued interest payable | 2,650 | (23,174) | |||||||||||||||||||
Decrease in other liabilities, net | Decrease in other liabilities, net | (11,824) | (10,375) | |||||||||||||||||||
Decrease in the carrying amount of lease liability | Decrease in the carrying amount of lease liability | (5,158) | (8,484) | Decrease in the carrying amount of lease liability | (1,500) | (1,247) | ||||||||||||||||
Increase (decrease) in due to customers | 53,146 | (151,674) | ||||||||||||||||||||
Decrease in due to customers | Decrease in due to customers | (89,884) | (70,849) | |||||||||||||||||||
Other | Other | (110) | — | |||||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | 389,693 | 173,035 | Net cash provided by operating activities | 185,465 | 48,658 | ||||||||||||||||
Cash flows from investing activities: | Cash flows from investing activities: | Cash flows from investing activities: | ||||||||||||||||||||
Purchases and originations of loans | Purchases and originations of loans | (1,145,775) | (1,032,636) | Purchases and originations of loans | (161,334) | (152,329) | ||||||||||||||||
Purchases of loans from a related party | Purchases of loans from a related party | (21,476) | (75,118) | Purchases of loans from a related party | (1,049) | (19,731) | ||||||||||||||||
Net proceeds from loan repayments, claims, and capitalized interest | Net proceeds from loan repayments, claims, and capitalized interest | 2,010,645 | 2,209,797 | Net proceeds from loan repayments, claims, and capitalized interest | 848,188 | 637,275 | ||||||||||||||||
Proceeds from sale of loans | Proceeds from sale of loans | 85,906 | 136,126 | Proceeds from sale of loans | 15,170 | — | ||||||||||||||||
Purchases of available-for-sale securities | Purchases of available-for-sale securities | (521,565) | (221,427) | Purchases of available-for-sale securities | (139,195) | (44,335) | ||||||||||||||||
Proceeds from sales of available-for-sale securities | Proceeds from sales of available-for-sale securities | 104,520 | 97,278 | Proceeds from sales of available-for-sale securities | 113,980 | 18,077 | ||||||||||||||||
Proceeds from and sale of beneficial interest in loan securitizations | 30,811 | 34,371 | ||||||||||||||||||||
Proceeds from beneficial interest in loan securitizations | Proceeds from beneficial interest in loan securitizations | 7,271 | 8,603 | |||||||||||||||||||
Purchases of other investments | Purchases of other investments | (166,664) | (122,584) | Purchases of other investments | (73,944) | (71,590) | ||||||||||||||||
Proceeds from other investments | Proceeds from other investments | 209,634 | 8,528 | Proceeds from other investments | 9,776 | 110,290 | ||||||||||||||||
Purchases of property and equipment | Purchases of property and equipment | (42,594) | (80,698) | Purchases of property and equipment | (15,794) | (17,898) | ||||||||||||||||
Net cash provided by investing activities | Net cash provided by investing activities | $ | 543,442 | 953,637 | Net cash provided by investing activities | 603,069 | 468,362 |
NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | NELNET, INC. AND SUBSIDIARIES | ||||||||||||||||||||
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) | CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) | CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued) | ||||||||||||||||||||
Nine months ended | Three months ended | |||||||||||||||||||||
September 30, | March 31, | |||||||||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||||||||
Cash flows from financing activities: | Cash flows from financing activities: | Cash flows from financing activities: | ||||||||||||||||||||
Payments on bonds and notes payable | Payments on bonds and notes payable | $ | (2,479,582) | (2,803,214) | Payments on bonds and notes payable | $ | (918,270) | (584,303) | ||||||||||||||
Proceeds from issuance of bonds and notes payable | Proceeds from issuance of bonds and notes payable | 1,738,405 | 1,460,524 | Proceeds from issuance of bonds and notes payable | 13,512 | 7,800 | ||||||||||||||||
Payments of debt issuance costs | Payments of debt issuance costs | (6,778) | (7,144) | Payments of debt issuance costs | (312) | (614) | ||||||||||||||||
Increase in bank deposits, net | Increase in bank deposits, net | 146,018 | — | Increase in bank deposits, net | 139,732 | 57,197 | ||||||||||||||||
Dividends paid | Dividends paid | (25,319) | (23,343) | Dividends paid | (9,063) | (8,437) | ||||||||||||||||
Repurchases of common stock | Repurchases of common stock | (27,486) | (73,145) | Repurchases of common stock | (32,899) | (2,009) | ||||||||||||||||
Proceeds from issuance of common stock | Proceeds from issuance of common stock | 1,108 | 1,250 | Proceeds from issuance of common stock | 435 | 381 | ||||||||||||||||
Acquisition of noncontrolling interest | — | (2,000) | ||||||||||||||||||||
Issuance of noncontrolling interests | Issuance of noncontrolling interests | 13,905 | — | Issuance of noncontrolling interests | 2,004 | 1,940 | ||||||||||||||||
Distribution to noncontrolling interests | Distribution to noncontrolling interests | (548) | (660) | Distribution to noncontrolling interests | (365) | (102) | ||||||||||||||||
Net cash used in financing activities | Net cash used in financing activities | (640,277) | (1,447,732) | Net cash used in financing activities | (805,226) | (528,147) | ||||||||||||||||
Effect of exchange rate changes on cash | Effect of exchange rate changes on cash | (175) | — | Effect of exchange rate changes on cash | 169 | (77) | ||||||||||||||||
Net increase (decrease) in cash, cash equivalents, and restricted cash | 292,683 | (321,060) | ||||||||||||||||||||
Net decrease in cash, cash equivalents, and restricted cash | Net decrease in cash, cash equivalents, and restricted cash | (16,523) | (11,204) | |||||||||||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | Cash, cash equivalents, and restricted cash, beginning of period | 958,395 | 1,222,601 | Cash, cash equivalents, and restricted cash, beginning of period | 1,194,189 | 958,395 | ||||||||||||||||
Cash, cash equivalents, and restricted cash, end of period | Cash, cash equivalents, and restricted cash, end of period | $ | 1,251,078 | 901,541 | Cash, cash equivalents, and restricted cash, end of period | $ | 1,177,666 | 947,191 |
Supplemental disclosures of cash flow information: | Supplemental disclosures of cash flow information: | Supplemental disclosures of cash flow information: | ||||||||||||||||||||
Cash disbursements made for interest | Cash disbursements made for interest | $ | 117,336 | 259,120 | Cash disbursements made for interest | $ | 33,895 | 39,686 | ||||||||||||||
Cash disbursements made for income taxes, net of refunds and credits received (a) | Cash disbursements made for income taxes, net of refunds and credits received (a) | $ | 10,921 | 13,413 | Cash disbursements made for income taxes, net of refunds and credits received (a) | $ | 466 | 199 | ||||||||||||||
Cash disbursements made for operating leases | Cash disbursements made for operating leases | $ | 6,003 | 9,457 | Cash disbursements made for operating leases | $ | 1,887 | 2,098 | ||||||||||||||
Non-cash operating, investing, and financing activity: | Non-cash operating, investing, and financing activity: | Non-cash operating, investing, and financing activity: | ||||||||||||||||||||
ROU assets obtained in exchange for lease obligations | ROU assets obtained in exchange for lease obligations | $ | 4,026 | 4,158 | ROU assets obtained in exchange for lease obligations | $ | 746 | 740 | ||||||||||||||
Receipt of beneficial interest in consumer loan securitizations | $ | 23,506 | 52,501 | |||||||||||||||||||
Receipt of beneficial interest in consumer loan securitization | Receipt of beneficial interest in consumer loan securitization | $ | 3,660 | — | ||||||||||||||||||
Distribution to noncontrolling interests | Distribution to noncontrolling interests | $ | 6,406 | 260 | Distribution to noncontrolling interests | $ | 4,760 | — | ||||||||||||||
Issuance of noncontrolling interests | Issuance of noncontrolling interests | $ | 2,082 | — | Issuance of noncontrolling interests | $ | — | 540 |
As of | As of | As of | As of | As of | As of | As of | As of | |||||||||||||||||||||||||||||||||||||||
September 30, 2021 | December 31, 2020 | September 30, 2020 | December 31, 2019 | March 31, 2022 | December 31, 2021 | March 31, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||
Total cash and cash equivalents | Total cash and cash equivalents | $ | 191,936 | 121,249 | 96,316 | 133,906 | Total cash and cash equivalents | $ | 162,785 | 125,563 | 144,229 | 121,249 | ||||||||||||||||||||||||||||||||||
Restricted cash | Restricted cash | 764,089 | 553,175 | 519,143 | 650,939 | Restricted cash | 757,954 | 741,981 | 609,881 | 553,175 | ||||||||||||||||||||||||||||||||||||
Restricted cash - due to customers | Restricted cash - due to customers | 295,053 | 283,971 | 286,082 | 437,756 | Restricted cash - due to customers | 256,927 | 326,645 | 193,081 | 283,971 | ||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash | Cash, cash equivalents, and restricted cash | $ | 1,251,078 | 958,395 | 901,541 | 1,222,601 | Cash, cash equivalents, and restricted cash | $ | 1,177,666 | 1,194,189 | 947,191 | 958,395 |
As of | As of | As of | As of | |||||||||||||||||||
September 30, 2021 | December 31, 2020 | March 31, 2022 | December 31, 2021 | |||||||||||||||||||
Non-Nelnet Bank: | Non-Nelnet Bank: | Non-Nelnet Bank: | ||||||||||||||||||||
Federally insured student loans: | Federally insured student loans: | Federally insured student loans: | ||||||||||||||||||||
Stafford and other | Stafford and other | $ | 4,142,059 | 4,383,000 | Stafford and other | $ | 3,741,495 | 3,904,000 | ||||||||||||||
Consolidation | Consolidation | 13,939,429 | 14,746,173 | Consolidation | 12,553,882 | 13,187,047 | ||||||||||||||||
Total | Total | 18,081,488 | 19,129,173 | Total | 16,295,377 | 17,091,047 | ||||||||||||||||
Private education loans | Private education loans | 319,212 | 320,589 | Private education loans | 278,537 | 299,442 | ||||||||||||||||
Consumer loans | Consumer loans | 36,994 | 109,346 | Consumer loans | 44,713 | 51,301 | ||||||||||||||||
Non-Nelnet Bank loans | Non-Nelnet Bank loans | 18,437,694 | 19,559,108 | Non-Nelnet Bank loans | 16,618,627 | 17,441,790 | ||||||||||||||||
Nelnet Bank: | Nelnet Bank: | Nelnet Bank: | ||||||||||||||||||||
Federally insured student loans | Federally insured student loans | 93,930 | — | Federally insured student loans | 82,789 | 88,011 | ||||||||||||||||
Private education loans | Private education loans | 98,395 | 17,543 | Private education loans | 285,468 | 169,890 | ||||||||||||||||
Nelnet Bank loans | Nelnet Bank loans | 192,325 | 17,543 | Nelnet Bank loans | 368,257 | 257,901 | ||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 834,831 | 794,611 | Accrued interest receivable | 774,774 | 788,552 | ||||||||||||||||
Loan discount, net of unamortized loan premiums and deferred origination costs | Loan discount, net of unamortized loan premiums and deferred origination costs | (22,603) | (9,908) | Loan discount, net of unamortized loan premiums and deferred origination costs | (22,257) | (25,933) | ||||||||||||||||
Allowance for loan losses: | Allowance for loan losses: | Allowance for loan losses: | ||||||||||||||||||||
Non-Nelnet Bank: | Non-Nelnet Bank: | Non-Nelnet Bank: | ||||||||||||||||||||
Federally insured loans | Federally insured loans | (115,859) | (128,590) | Federally insured loans | (95,995) | (103,381) | ||||||||||||||||
Private education loans | Private education loans | (17,053) | (19,529) | Private education loans | (14,622) | (16,143) | ||||||||||||||||
Consumer loans | Consumer loans | (4,429) | (27,256) | Consumer loans | (5,710) | (6,481) | ||||||||||||||||
Non-Nelnet Bank allowance for loan losses | Non-Nelnet Bank allowance for loan losses | (137,341) | (175,375) | Non-Nelnet Bank allowance for loan losses | (116,327) | (126,005) | ||||||||||||||||
Nelnet Bank: | Nelnet Bank: | Nelnet Bank: | ||||||||||||||||||||
Federally insured loans | Federally insured loans | (289) | — | Federally insured loans | (247) | (268) | ||||||||||||||||
Private education loans | Private education loans | (414) | (323) | Private education loans | (1,251) | (840) | ||||||||||||||||
Nelnet Bank allowance for loan losses | Nelnet Bank allowance for loan losses | (703) | (323) | Nelnet Bank allowance for loan losses | (1,498) | (1,108) | ||||||||||||||||
$ | 19,304,203 | 20,185,656 | $ | 17,621,576 | 18,335,197 |
As of | As of | ||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
Non-Nelnet Bank: | |||||||||||
Federally insured student loans (a) | 0.59 | % | 0.60 | % | |||||||
Private education loans | 5.25 | % | 5.39 | % | |||||||
Consumer loans | 12.77 | % | 12.63 | % | |||||||
Nelnet Bank: | |||||||||||
Federally insured student loans (a) | 0.30 | % | 0.30 | % | |||||||
Private education loans | 0.44 | % | 0.49 | % | |||||||
Balance at beginning of period | Impact of ASC 326 adoption | 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 | Balance at beginning of period | Provision (negative provision) for loan losses | Charge-offs | Recoveries | Initial allowance on loans purchased with credit deterioration (a) | Loan sales | Balance at end of period | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2021 | Three months ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank: | Non-Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | Federally insured loans | $ | 120,802 | — | 4,452 | (10,330) | — | 935 | — | 115,859 | Federally insured loans | $ | 103,381 | (2,748) | (4,761) | — | 123 | — | 95,995 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 19,403 | — | (1,208) | (954) | 113 | — | (301) | 17,053 | Private education loans | 16,143 | (400) | (1,299) | 176 | — | 2 | 14,622 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | Consumer loans | 4,702 | — | 2,696 | (1,133) | 187 | — | (2,023) | 4,429 | Consumer loans | 6,481 | 2,284 | (937) | 166 | — | (2,284) | 5,710 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nelnet Bank | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nelnet Bank: | Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | Federally insured loans | 245 | — | 44 | — | — | — | — | 289 | Federally insured loans | 268 | (21) | — | — | — | — | 247 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 567 | — | (157) | — | 4 | — | — | 414 | Private education loans | 840 | 426 | (13) | — | — | (2) | 1,251 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 145,719 | — | 5,827 | (12,417) | 304 | 935 | (2,324) | 138,044 | $ | 127,113 | (459) | (7,010) | 342 | 123 | (2,284) | 117,825 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2020 | Three months ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank: | Non-Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | Federally insured loans | $ | 144,829 | — | (5,299) | (2,487) | — | 2,900 | — | 139,943 | Federally insured loans | $ | 128,590 | (7,483) | (61) | — | 800 | — | 121,846 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 25,535 | — | (5,650) | (5) | 133 | — | — | 20,013 | Private education loans | 19,529 | 1,431 | (493) | 202 | — | 1 | 20,670 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | Consumer loans | 39,081 | — | 5,128 | (2,723) | 381 | — | (15,924) | 25,943 | Consumer loans | 27,256 | (11,418) | (1,950) | 246 | — | — | 14,134 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nelnet Bank: | Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 323 | 422 | — | — | — | (1) | 744 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 175,698 | (17,048) | (2,504) | 448 | 800 | — | 157,394 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 209,445 | — | (5,821) | (5,215) | 514 | 2,900 | (15,924) | 185,899 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | $ | 128,590 | — | (3,428) | (11,563) | — | 2,260 | — | 115,859 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | 19,529 | — | (781) | (1,850) | 454 | — | (299) | 17,053 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | 27,256 | — | (7,016) | (4,547) | 668 | — | (11,932) | 4,429 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nelnet Bank | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | — | — | 289 | — | — | — | — | 289 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | 323 | — | 89 | — | 4 | — | (2) | 414 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 175,698 | — | (10,847) | (17,960) | 1,126 | 2,260 | (12,233) | 138,044 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | $ | 36,763 | 72,291 | 32,074 | (14,885) | — | 13,700 | — | 139,943 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | 9,597 | 4,797 | 6,471 | (1,360) | 508 | — | — | 20,013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | 15,554 | 13,926 | 34,931 | (9,893) | 849 | — | (29,424) | 25,943 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 61,914 | 91,014 | 73,476 | (26,138) | 1,357 | 13,700 | (29,424) | 185,899 |
As of September 30, 2021 | As of December 31, 2020 | As of September 30, 2020 | As of March 31, 2022 | As of December 31, 2021 | As of March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans - Non-Nelnet Bank: | Federally insured loans - Non-Nelnet Bank: | Federally insured loans - Non-Nelnet Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in-school/grace/deferment | Loans in-school/grace/deferment | $ | 909,228 | 5.0 | % | $ | 1,036,028 | 5.4 | % | $ | 1,037,754 | 5.4 | % | Loans in-school/grace/deferment | $ | 839,566 | 5.2 | % | $ | 829,624 | 4.9 | % | $ | 1,006,605 | 5.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | Loans in forbearance | 1,826,082 | 10.1 | 1,973,175 | 10.3 | 1,916,906 | 10.0 | Loans in forbearance | 1,160,048 | 7.1 | 1,118,667 | 6.5 | 1,936,553 | 10.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 13,525,751 | 88.1 | % | 13,683,054 | 84.9 | % | 14,845,519 | 91.7 | % | Loans current | 12,352,543 | 86.4 | % | 12,847,685 | 84.9 | % | 13,787,038 | 88.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | Loans delinquent 31-60 days | 548,670 | 3.6 | 633,411 | 3.9 | 945,411 | 5.9 | Loans delinquent 31-60 days | 462,750 | 3.2 | 895,656 | 5.9 | 425,599 | 2.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | Loans delinquent 61-90 days | 286,681 | 1.9 | 307,936 | 1.9 | 249,523 | 1.5 | Loans delinquent 61-90 days | 282,810 | 2.0 | 352,449 | 2.3 | 234,871 | 1.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91-120 days | Loans delinquent 91-120 days | 163,447 | 1.1 | 800,257 | 5.0 | 129,994 | 0.8 | Loans delinquent 91-120 days | 202,371 | 1.4 | 251,075 | 1.7 | 125,471 | 0.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 121-270 days | Loans delinquent 121-270 days | 467,441 | 3.0 | 674,975 | 4.2 | 605 | 0.0 | Loans delinquent 121-270 days | 712,753 | 5.0 | 592,449 | 3.9 | 1,026,050 | 6.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 271 days or greater | Loans delinquent 271 days or greater | 354,188 | 2.3 | 20,337 | 0.1 | 19,867 | 0.1 | Loans delinquent 271 days or greater | 282,536 | 2.0 | 203,442 | 1.3 | 63,196 | 0.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 15,346,178 | 84.9 | 100.0 | % | 16,119,970 | 84.3 | 100.0 | % | 16,190,919 | 84.6 | 100.0 | % | Total loans in repayment | 14,295,763 | 87.7 | 100.0 | % | 15,142,756 | 88.6 | 100.0 | % | 15,662,225 | 84.2 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total federally insured loans | Total federally insured loans | 18,081,488 | 100.0 | % | 19,129,173 | 100.0 | % | 19,145,579 | 100.0 | % | Total federally insured loans | 16,295,377 | 100.0 | % | 17,091,047 | 100.0 | % | 18,605,383 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 831,142 | 791,453 | 757,960 | Accrued interest receivable | 770,853 | 784,716 | 791,199 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan discount, net of unamortized premiums and deferred origination costs | Loan discount, net of unamortized premiums and deferred origination costs | (23,229) | (14,505) | (20,554) | Loan discount, net of unamortized premiums and deferred origination costs | (27,317) | (28,309) | (14,608) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (115,859) | (128,590) | (139,943) | Allowance for loan losses | (95,995) | (103,381) | (121,846) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total federally insured loans and accrued interest receivable, net of allowance for loan losses | Total federally insured loans and accrued interest receivable, net of allowance for loan losses | $ | 18,773,542 | $ | 19,777,531 | $ | 19,743,042 | Total federally insured loans and accrued interest receivable, net of allowance for loan losses | $ | 16,942,918 | $ | 17,744,073 | $ | 19,260,128 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans - Non-Nelnet Bank: | Private education loans - Non-Nelnet Bank: | Private education loans - Non-Nelnet Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in-school/grace/deferment | Loans in-school/grace/deferment | $ | 10,282 | 3.2 | % | $ | 5,049 | 1.6 | % | $ | 3,839 | 1.4 | % | Loans in-school/grace/deferment | $ | 10,226 | 3.7 | % | $ | 9,661 | 3.2 | % | $ | 10,405 | 3.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | Loans in forbearance | 3,554 | 1.1 | 2,359 | 0.7 | 5,437 | 2.0 | Loans in forbearance | 2,838 | 1.0 | 3,601 | 1.2 | 7,567 | 2.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 300,231 | 98.3 | % | 310,036 | 99.0 | % | 261,514 | 98.8 | % | Loans current | 260,911 | 98.3 | % | 280,457 | 98.0 | % | 292,840 | 98.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | Loans delinquent 31-60 days | 1,870 | 0.6 | 1,099 | 0.4 | 1,820 | 0.7 | Loans delinquent 31-60 days | 1,699 | 0.6 | 2,403 | 0.8 | 1,343 | 0.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | Loans delinquent 61-90 days | 912 | 0.3 | 675 | 0.2 | 454 | 0.2 | Loans delinquent 61-90 days | 1,040 | 0.4 | 976 | 0.3 | 843 | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91 days or greater | Loans delinquent 91 days or greater | 2,363 | 0.8 | 1,371 | 0.4 | 743 | 0.3 | Loans delinquent 91 days or greater | 1,823 | 0.7 | 2,344 | 0.9 | 1,050 | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 305,376 | 95.7 | 100.0 | % | 313,181 | 97.7 | 100.0 | % | 264,531 | 96.6 | 100.0 | % | Total loans in repayment | 265,473 | 95.3 | 100.0 | % | 286,180 | 95.6 | 100.0 | % | 296,076 | 94.3 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans | Total private education loans | 319,212 | 100.0 | % | 320,589 | 100.0 | % | 273,807 | 100.0 | % | Total private education loans | 278,537 | 100.0 | % | 299,442 | 100.0 | % | 314,048 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 2,076 | 2,131 | 1,960 | Accrued interest receivable | 1,898 | 1,960 | 2,303 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan discount, net of unamortized premiums | Loan discount, net of unamortized premiums | (1,496) | 2,691 | 1,137 | Loan discount, net of unamortized premiums | (598) | (1,123) | 2,673 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (17,053) | (19,529) | (20,013) | Allowance for loan losses | (14,622) | (16,143) | (20,670) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans and accrued interest receivable, net of allowance for loan losses | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 302,739 | $ | 305,882 | $ | 256,891 | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 265,215 | $ | 284,136 | $ | 298,354 |
As of March 31, 2022 | As of December 31, 2021 | As of March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans - Non-Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in deferment | $ | 72 | 0.2 | % | $ | 43 | 0.1 | % | $ | 306 | 0.3 | % | |||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | 43,424 | 97.3 | % | 49,697 | 97.0 | % | 108,126 | 97.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | 255 | 0.5 | 414 | 0.8 | 760 | 0.7 | |||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | 304 | 0.7 | 322 | 0.6 | 577 | 0.5 | |||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91 days or greater | 658 | 1.5 | 825 | 1.6 | 1,023 | 0.9 | |||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | 44,641 | 99.8 | 100.0 | % | 51,258 | 99.9 | 100.0 | % | 110,486 | 99.7 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||
Total consumer loans | 44,713 | 100.0 | % | 51,301 | 100.0 | % | 110,792 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | 374 | 396 | 934 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loan premium | 1,040 | 913 | 1,845 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (5,710) | (6,481) | (14,134) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans and accrued interest receivable, net of allowance for loan losses | $ | 40,417 | $ | 46,129 | $ | 99,437 | |||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans - Nelnet Bank (a): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in-school/grace/deferment | $ | 286 | 0.3 | % | $ | 330 | 0.4 | % | |||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | 948 | 1.2 | 1,057 | 1.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | 80,421 | 98.6 | % | 85,599 | 98.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 30-59 days | 402 | 0.5 | 816 | 1.0 | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 60-89 days | 427 | 0.5 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 90-119 days | 90 | 0.1 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 120-270 days | 157 | 0.2 | 209 | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 271 days or greater | 58 | 0.1 | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | 81,555 | 98.5 | 100.0 | % | 86,624 | 98.4 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||
Total federally insured loans | 82,789 | 100.0 | % | 88,011 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | 1,231 | 1,216 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loan premium | 25 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (247) | (268) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total federally insured loans and accrued interest receivable, net of allowance for loan losses | $ | 83,798 | $ | 88,985 | |||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans - Nelnet Bank (a): | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in-school/grace/deferment | $ | 497 | 0.2 | % | $ | 150 | 0.1 | % | $ | 82 | 0.1 | % | |||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | 317 | 0.1 | 460 | 0.3 | 29 | — | |||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | 284,081 | 99.8 | % | 169,157 | 99.9 | % | 79,120 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 30-59 days | 422 | 0.2 | 51 | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 60-89 days | 78 | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 90 days or greater | 73 | — | 72 | 0.1 | — | ��� | |||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | 284,654 | 99.7 | 100.0 | % | 169,280 | 99.6 | 100.0 | % | 79,120 | 99.9 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||
Total private education loans | 285,468 | 100.0 | % | 169,890 | 100.0 | % | 79,231 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | 418 | 264 | 125 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred origination costs | 4,593 | 2,560 | 999 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (1,251) | (840) | (744) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 289,228 | $ | 171,874 | $ | 79,611 |
As of September 30, 2021 | As of December 31, 2020 | As of September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans - Non-Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in deferment | $ | 18 | 0.0 | % | $ | 829 | 0.8 | % | $ | 1,084 | 1.1 | % | |||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | 35,744 | 96.6 | % | 105,650 | 97.4 | % | 96,038 | 96.9 | % | ||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | 319 | 0.9 | 954 | 0.9 | 1,044 | 1.1 | |||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | 243 | 0.7 | 804 | 0.7 | 776 | 0.8 | |||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91 days or greater | 670 | 1.8 | 1,109 | 1.0 | 1,238 | 1.2 | |||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | 36,976 | 100.0 | 100.0 | % | 108,517 | 99.2 | 100.0 | % | 99,096 | 98.9 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||
Total consumer loans | 36,994 | 100.0 | % | 109,346 | 100.0 | % | 100,180 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | 280 | 1,001 | 867 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loan premium | 664 | 1,640 | 1,505 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (4,429) | (27,256) | (25,943) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans and accrued interest receivable, net of allowance for loan losses | $ | 33,509 | $ | 84,731 | $ | 76,609 | |||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans - Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in-school/grace/deferment | $ | 283 | 0.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | 1,722 | 1.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | 91,366 | 99.4 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | 277 | 0.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | 35 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91-120 days | 45 | 0.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 121-270 days | 202 | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 271 days or greater | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | 91,925 | 97.9 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total federally insured loans | 93,930 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | 1,177 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan premium | 28 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (289) | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total federally insured loans and accrued interest receivable, net of allowance for loan losses | $ | 94,846 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans - Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in-school/grace/deferment | $ | 82 | 0.1 | % | $ | — | — | % | |||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | 193 | 0.2 | 29 | 0.2 | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | 98,120 | 100.0 | % | 17,514 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91 days or greater | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | 98,120 | 99.7 | 100.0 | % | 17,514 | 99.8 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||
Total private education loans | 98,395 | 100.0 | % | 17,543 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | 156 | 26 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred origination costs | 1,430 | 266 | |||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | (414) | (323) | |||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 99,567 | $ | 17,512 |
Loan balance as of March 31, 2022 | |||||||||||||||||||||||
Three months ended March 31, 2022 | 2021 | 2020 | Total | ||||||||||||||||||||
FICO at origination: | |||||||||||||||||||||||
Less than 705 | $ | 2,097 | 5,841 | 99 | 8,037 | ||||||||||||||||||
705 - 734 | 10,935 | 11,391 | 272 | 22,598 | |||||||||||||||||||
735 - 764 | 17,278 | 17,906 | 1,049 | 36,233 | |||||||||||||||||||
765 - 794 | 34,510 | 34,100 | 1,389 | 69,999 | |||||||||||||||||||
Greater than 794 | 62,116 | 79,633 | 6,852 | 148,601 | |||||||||||||||||||
$ | 126,936 | 148,871 | 9,661 | 285,468 |
Loan balance as of December 31, 2021 | |||||||||||||||||
2021 | 2020 | Total | |||||||||||||||
FICO at origination: | |||||||||||||||||
Less than 705 | $ | 6,481 | 100 | 6,581 | |||||||||||||
705 - 734 | 11,697 | 276 | 11,973 | ||||||||||||||
735 - 764 | 18,611 | 1,072 | 19,683 | ||||||||||||||
765 - 794 | 36,274 | 1,467 | 37,741 | ||||||||||||||
Greater than 794 | 86,141 | 7,771 | 93,912 | ||||||||||||||
$ | 159,204 | 10,686 | 169,890 |
Nine months ended September 30, 2021 | 2020 | 2019 | 2018 | 2017 | Prior years | Total | Three months ended March 31, 2022 | 2021 | 2020 | 2019 | 2018 | Prior years | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans - Non-Nelnet Bank: | Private education loans - Non-Nelnet Bank: | Private education loans - Non-Nelnet Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in school/grace/deferment | Loans in school/grace/deferment | $ | 1,310 | 2,202 | 4,572 | — | — | 2,198 | 10,282 | Loans in school/grace/deferment | $ | 121 | 3,030 | 1,899 | 3,318 | — | 1,858 | 10,226 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | Loans in forbearance | — | 649 | 657 | 180 | — | 2,068 | 3,554 | Loans in forbearance | — | 10 | 372 | 858 | 181 | 1,417 | 2,838 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 2,252 | 75,514 | 53,814 | 367 | — | 168,284 | 300,231 | Loans current | 1,452 | 2,796 | 60,651 | 46,107 | 284 | 149,621 | 260,911 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | Loans delinquent 31-60 days | — | 147 | 125 | — | — | 1,598 | 1,870 | Loans delinquent 31-60 days | — | 2 | 10 | 239 | — | 1,448 | 1,699 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | Loans delinquent 61-90 days | — | — | — | — | — | 912 | 912 | Loans delinquent 61-90 days | — | 13 | 102 | — | — | 925 | 1,040 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91 days or greater | Loans delinquent 91 days or greater | — | — | — | — | — | 2,363 | 2,363 | Loans delinquent 91 days or greater | — | — | 87 | — | — | 1,736 | 1,823 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 2,252 | 75,661 | 53,939 | 367 | — | 173,157 | 305,376 | Total loans in repayment | 1,452 | 2,811 | 60,850 | 46,346 | 284 | 153,730 | 265,473 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans | Total private education loans | $ | 3,562 | 78,512 | 59,168 | 547 | — | 177,423 | 319,212 | Total private education loans | $ | 1,573 | 5,851 | 63,121 | 50,522 | 465 | 157,005 | 278,537 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 2,076 | Accrued interest receivable | 1,898 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan discount, net of unamortized premiums | Loan discount, net of unamortized premiums | (1,496) | Loan discount, net of unamortized premiums | (598) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (17,053) | Allowance for loan losses | (14,622) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans and accrued interest receivable, net of allowance for loan losses | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 302,739 | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 265,215 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans - Non-Nelnet Bank: | Consumer loans - Non-Nelnet Bank: | Consumer loans - Non-Nelnet Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in deferment | Loans in deferment | $ | — | — | — | 18 | — | — | 18 | Loans in deferment | $ | — | 34 | — | 32 | 6 | — | 72 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 19,710 | 1,295 | 6,915 | 7,695 | 129 | — | 35,744 | Loans current | 17,335 | 17,475 | 574 | 3,738 | 4,243 | 59 | 43,424 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | Loans delinquent 31-60 days | 62 | 80 | 119 | 51 | 7 | — | 319 | Loans delinquent 31-60 days | 32 | 74 | 15 | 99 | 31 | 4 | 255 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | Loans delinquent 61-90 days | 53 | — | 103 | 87 | — | — | 243 | Loans delinquent 61-90 days | — | 181 | 50 | 12 | 57 | 4 | 304 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91 days or greater | Loans delinquent 91 days or greater | 56 | 42 | 250 | 321 | 1 | — | 670 | Loans delinquent 91 days or greater | — | 54 | 39 | 208 | 357 | — | 658 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 19,881 | 1,417 | 7,387 | 8,154 | 137 | — | 36,976 | Total loans in repayment | 17,367 | 17,784 | 678 | 4,057 | 4,688 | 67 | 44,641 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans | Total consumer loans | $ | 19,881 | 1,417 | 7,387 | 8,172 | 137 | — | 36,994 | Total consumer loans | $ | 17,367 | 17,818 | 678 | 4,089 | 4,694 | 67 | 44,713 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 280 | Accrued interest receivable | 374 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan premium | Loan premium | 664 | Loan premium | 1,040 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (4,429) | Allowance for loan losses | (5,710) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans and accrued interest receivable, net of allowance for loan losses | Total consumer loans and accrued interest receivable, net of allowance for loan losses | $ | 33,509 | Total consumer loans and accrued interest receivable, net of allowance for loan losses | $ | 40,417 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans - Nelnet Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans - Nelnet Bank (a): | Private education loans - Nelnet Bank (a): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in school/grace/deferment | Loans in school/grace/deferment | $ | 82 | — | — | — | — | — | 82 | Loans in school/grace/deferment | $ | 133 | 364 | — | — | — | — | 497 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | Loans in forbearance | 193 | — | — | — | — | — | 193 | Loans in forbearance | 139 | 178 | — | — | — | — | 317 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 85,589 | 12,531 | — | — | — | — | 98,120 | Loans current | 126,380 | 148,040 | 9,661 | — | — | — | 284,081 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91 days or greater | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 30-59 days | Loans delinquent 30-59 days | 284 | 138 | — | — | — | — | 422 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 60-89 days | Loans delinquent 60-89 days | — | 78 | — | — | — | — | 78 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 90 days or greater | Loans delinquent 90 days or greater | — | 73 | — | — | — | — | 73 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 85,589 | 12,531 | — | — | — | — | 98,120 | Total loans in repayment | 126,664 | 148,329 | 9,661 | — | — | — | 284,654 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans | Total private education loans | $ | 85,864 | 12,531 | — | — | — | — | 98,395 | Total private education loans | $ | 126,936 | 148,871 | 9,661 | — | — | — | 285,468 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 156 | Accrued interest receivable | 418 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred origination costs | Deferred origination costs | 1,430 | Deferred origination costs | 4,593 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (414) | Allowance for loan losses | (1,251) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans and accrued interest receivable, net of allowance for loan losses | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 99,567 | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 289,228 |
As of September 30, 2021 | As of March 31, 2022 | |||||||||||||||||||||||||||||||||||||||
Carrying amount | Interest rate range | Final maturity | Carrying amount | Interest rate range | Final maturity | |||||||||||||||||||||||||||||||||||
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: | Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: | Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: | ||||||||||||||||||||||||||||||||||||||
Bonds and notes based on indices | Bonds and notes based on indices | $ | 16,784,982 | 0.20% - 2.09% | 5/27/25 - 9/25/69 | Bonds and notes based on indices | $ | 15,144,282 | 0.37% - 2.46% | 5/27/25 - 9/25/69 | ||||||||||||||||||||||||||||||
Bonds and notes based on auction | Bonds and notes based on auction | 450,300 | 0.00% - 2.15% | 3/22/32 - 11/26/46 | Bonds and notes based on auction | 225,535 | 0.00% - 1.43% | 3/22/32 - 8/27/46 | ||||||||||||||||||||||||||||||||
Total FFELP variable-rate bonds and notes | Total FFELP variable-rate bonds and notes | 17,235,282 | Total FFELP variable-rate bonds and notes | 15,369,817 | ||||||||||||||||||||||||||||||||||||
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | 860,434 | 1.42% - 3.45% | 10/25/67 - 8/27/68 | Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | 736,079 | 1.42% - 3.45% | 10/25/67 - 8/27/68 | ||||||||||||||||||||||||||||||||
FFELP warehouse facilities | 5,446 | 0.17% | 11/22/22 / 2/26/24 | |||||||||||||||||||||||||||||||||||||
FFELP loan warehouse facility | FFELP loan warehouse facility | 5,017 | 0.61% | 5/22/23 | ||||||||||||||||||||||||||||||||||||
Private education loan warehouse facility | Private education loan warehouse facility | 118,299 | 0.19% | 2/13/23 | Private education loan warehouse facility | 96,714 | 0.55% | 6/30/23 | ||||||||||||||||||||||||||||||||
Variable-rate bonds and notes issued in private education loan asset-backed securitizations | Variable-rate bonds and notes issued in private education loan asset-backed securitizations | 35,648 | 1.65% / 1.84% | 12/26/40 / 6/25/49 | Variable-rate bonds and notes issued in private education loan asset-backed securitizations | 28,039 | 1.90% / 2.21% | 12/26/40 / 6/25/49 | ||||||||||||||||||||||||||||||||
Fixed-rate bonds and notes issued in private education loan asset-backed securitization | Fixed-rate bonds and notes issued in private education loan asset-backed securitization | 30,409 | 3.60% / 5.35% | 12/26/40 / 12/28/43 | Fixed-rate bonds and notes issued in private education loan asset-backed securitization | 26,764 | 3.60% / 5.35% | 12/26/40 / 12/28/43 | ||||||||||||||||||||||||||||||||
Unsecured line of credit | Unsecured line of credit | — | — | 9/22/26 | Unsecured line of credit | — | — | 9/22/26 | ||||||||||||||||||||||||||||||||
Participation agreement | Participation agreement | 194,190 | 0.78% | 5/4/22 | Participation agreement | 267,481 | 1.08% | 5/4/22 | ||||||||||||||||||||||||||||||||
Repurchase agreements | Repurchase agreements | 334,473 | 0.57% - 1.13% | 11/15/21 - 12/20/23 | Repurchase agreements | 384,343 | 0.95% - 1.46% | 4/14/22 - 12/20/23 | ||||||||||||||||||||||||||||||||
Secured line of credit | Secured line of credit | 5,000 | 1.84% | 5/30/22 | Secured line of credit | 5,000 | 2.05% | 5/30/22 | ||||||||||||||||||||||||||||||||
18,819,181 | 16,919,254 | |||||||||||||||||||||||||||||||||||||||
Discount on bonds and notes payable and debt issuance costs | Discount on bonds and notes payable and debt issuance costs | (208,433) | Discount on bonds and notes payable and debt issuance costs | (182,553) | ||||||||||||||||||||||||||||||||||||
Total | Total | $ | 18,610,748 | Total | $ | 16,736,701 |
As of December 31, 2020 | As of December 31, 2021 | |||||||||||||||||||||||||||||||||
Carrying amount | Interest rate range | Final maturity | Carrying amount | Interest rate range | Final maturity | |||||||||||||||||||||||||||||
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: | Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: | Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: | ||||||||||||||||||||||||||||||||
Bonds and notes based on indices | Bonds and notes based on indices | $ | 17,127,643 | 0.28% - 2.05% | 5/27/25 - 10/25/68 | Bonds and notes based on indices | $ | 15,887,295 | 0.23% - 2.10% | 5/27/25 - 9/25/69 | ||||||||||||||||||||||||
Bonds and notes based on auction | Bonds and notes based on auction | 749,925 | 1.12% - 2.14% | 3/22/32 - 11/26/46 | Bonds and notes based on auction | 248,550 | 0.00% - 1.09% | 3/22/32 - 8/27/46 | ||||||||||||||||||||||||||
Total FFELP variable-rate bonds and notes | Total FFELP variable-rate bonds and notes | 17,877,568 | Total FFELP variable-rate bonds and notes | 16,135,845 | ||||||||||||||||||||||||||||||
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | 923,076 | 1.42% - 3.45% | 10/25/67 - 8/27/68 | Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | 772,935 | 1.42% - 3.45% | 10/25/67 - 8/27/68 | ||||||||||||||||||||||||||
FFELP warehouse facilities | 252,165 | 0.27% / 0.31% | 5/20/22 / 2/26/23 | |||||||||||||||||||||||||||||||
FFELP loan warehouse facility | FFELP loan warehouse facility | 5,048 | 0.21% | 5/22/23 | ||||||||||||||||||||||||||||||
Private education loan warehouse facility | Private education loan warehouse facility | 150,397 | 0.28% | 2/13/22 | Private education loan warehouse facility | 107,011 | 0.24% | 2/13/23 | ||||||||||||||||||||||||||
Consumer loan warehouse facility | 25,809 | 0.28% | 4/23/22 | |||||||||||||||||||||||||||||||
Variable-rate bonds and notes issued in private education loan asset-backed securitizations | Variable-rate bonds and notes issued in private education loan asset-backed securitizations | 49,025 | 1.65% / 1.90% | 12/26/40 / 6/25/49 | Variable-rate bonds and notes issued in private education loan asset-backed securitizations | 31,818 | 1.65% / 1.85% | 12/26/40 / 6/25/49 | ||||||||||||||||||||||||||
Fixed-rate bonds and notes issued in private education loan asset-backed securitization | Fixed-rate bonds and notes issued in private education loan asset-backed securitization | 37,251 | 3.60% / 5.35% | 12/26/40 / 12/28/43 | Fixed-rate bonds and notes issued in private education loan asset-backed securitization | 28,613 | 3.60% / 5.35% | 12/26/40 / 12/28/43 | ||||||||||||||||||||||||||
Unsecured line of credit | Unsecured line of credit | 120,000 | 1.65% | 12/16/24 | Unsecured line of credit | — | — | 9/22/26 | ||||||||||||||||||||||||||
Participation agreement | Participation agreement | 118,558 | 0.84% | 5/4/21 | Participation agreement | 253,969 | 0.78% | 5/4/22 | ||||||||||||||||||||||||||
Repurchase agreements | Repurchase agreements | 483,848 | 0.66% - 1.46% | 5/27/22 - 12/20/23 | ||||||||||||||||||||||||||||||
Secured line of credit | Secured line of credit | 5,000 | 1.90% | 5/30/22 | Secured line of credit | 5,000 | 1.91% | 5/30/22 | ||||||||||||||||||||||||||
19,558,849 | 17,824,087 | |||||||||||||||||||||||||||||||||
Discount on bonds and notes payable and debt issuance costs | Discount on bonds and notes payable and debt issuance costs | (238,123) | Discount on bonds and notes payable and debt issuance costs | (192,998) | ||||||||||||||||||||||||||||||
Total | Total | $ | 19,320,726 | Total | $ | 17,631,089 |
NFSLW-I (a) | NHELP-II (b) | Total | ||||||||||||||||||
Maximum financing amount | $ | 60,000 | 50,000 | 110,000 | ||||||||||||||||
Amount outstanding | 5,446 | — | 5,446 | |||||||||||||||||
Amount available | $ | 54,554 | 50,000 | 104,554 | ||||||||||||||||
Expiration of liquidity provisions | November 22, 2021 | February 26, 2022 | ||||||||||||||||||
Final maturity date | November 22, 2022 | February 26, 2024 | ||||||||||||||||||
Advanced as equity support | $ | 328 | 115 | 443 |
NSLT 2021-1 | NSLT 2021-2 | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Date securities issued | 6/30/21 | 8/31/21 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total original principal amount | $ | 797,000 | 531,300 | 1,328,300 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A senior notes: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total principal amount | $ | 781,000 | 520,600 | 1,301,600 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of funds | 1-month LIBOR plus 0.50% | 1-month LIBOR plus 0.50% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Final maturity date | 7/25/69 | 9/25/69 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class B subordinated notes: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total principal amount | $ | 16,000 | 10,700 | 26,700 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of funds | 1-month LIBOR plus 1.25% | 1-month LIBOR plus 1.20% | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Final maturity date | 7/25/69 | 9/25/69 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Purchase price | $ | (184,827) | (6,054) | (205,269) | (7,572) | ||||||||||||||||||
Par value | 184,781 | 6,163 | 204,597 | 8,090 | |||||||||||||||||||
Remaining unamortized cost of issuance | (3,222) | (4) | (3,292) | (10) | |||||||||||||||||||
(Loss) gain | $ | (3,268) | 105 | (3,964) | 508 |
Maturity | Notional amount | |||||||||||||
As of | As of | |||||||||||||
September 30, 2021 | December 31, 2020 | |||||||||||||
2021 | $ | — | 250,000 | |||||||||||
2022 | 2,000,000 | 2,000,000 | ||||||||||||
2023 | 750,000 | 750,000 | ||||||||||||
2024 | 1,750,000 | 1,750,000 | ||||||||||||
2026 | 1,150,000 | 1,150,000 | ||||||||||||
2027 | 250,000 | 250,000 | ||||||||||||
$ | 5,900,000 | 6,150,000 |
Maturity | Notional amount | |||||||||||||
2022 | $ | 2,000,000 | ||||||||||||
2023 | 750,000 | |||||||||||||
2024 | 1,750,000 | |||||||||||||
2026 | 1,150,000 | |||||||||||||
2027 | 250,000 | |||||||||||||
$ | 5,900,000 |
As of September 30, 2021 | As of December 31, 2020 | |||||||||||||||||||||||||
Maturity | Notional amount | Weighted average fixed rate paid by the Company (a) | Notional amount | Weighted average fixed rate paid by the Company (a) | ||||||||||||||||||||||
2021 | $ | 100,000 | 2.95 | % | $ | 600,000 | 2.15 | % | ||||||||||||||||||
2022 | 500,000 | 0.94 | 500,000 | 0.94 | ||||||||||||||||||||||
2023 | 900,000 | 0.62 | 900,000 | 0.62 | ||||||||||||||||||||||
2024 | 2,500,000 | 0.35 | 2,000,000 | 0.32 | ||||||||||||||||||||||
2025 | 500,000 | 0.35 | 500,000 | 0.35 | ||||||||||||||||||||||
2026 | 300,000 | 0.81 | — | — | ||||||||||||||||||||||
2031 | 100,000 | 1.53 | — | — | ||||||||||||||||||||||
$ | 4,900,000 | 0.56 | % | $ | 4,500,000 | 0.70 | % |
As of March 31, 2022 | As of December 31, 2021 | |||||||||||||||||||||||||
Maturity | Notional amount | Weighted average fixed rate paid by the Company (a) | Notional amount | Weighted average fixed rate paid by the Company (a) | ||||||||||||||||||||||
2022 | $ | — | — | % | $ | 500,000 | 0.94 | % | ||||||||||||||||||
2023 | 750,000 | 0.30 | 900,000 | 0.62 | ||||||||||||||||||||||
2024 | 2,500,000 | 0.35 | 2,500,000 | 0.35 | ||||||||||||||||||||||
2025 | 500,000 | 0.35 | 500,000 | 0.35 | ||||||||||||||||||||||
2026 | 500,000 | 1.02 | 500,000 | 1.02 | ||||||||||||||||||||||
2031 | 100,000 | 1.53 | 100,000 | 1.53 | ||||||||||||||||||||||
$ | 4,350,000 | 0.44 | % | $ | 5,000,000 | 0.55 | % |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Settlements: | |||||||||||||||||||||||
1:3 basis swaps | $ | (700) | 1,197 | (939) | 10,438 | ||||||||||||||||||
Interest rate swaps - floor income hedges | (5,209) | (3,588) | (14,648) | (2,772) | |||||||||||||||||||
Total settlements - (expense) income | (5,909) | (2,391) | (15,587) | 7,666 | |||||||||||||||||||
Change in fair value: | |||||||||||||||||||||||
1:3 basis swaps | 1,061 | (161) | 2,755 | (1,475) | |||||||||||||||||||
Interest rate swaps - floor income hedges | 6,199 | 3,601 | 41,700 | (19,597) | |||||||||||||||||||
Total change in fair value - income (expense) | 7,260 | 3,440 | 44,455 | (21,072) | |||||||||||||||||||
Derivative market value adjustments and derivative settlements, net - income (expense) | $ | 1,351 | 1,049 | 28,868 | (13,406) |
Three months ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Settlements: | |||||||||||||||||||||||
1:3 basis swaps | $ | 396 | (19) | ||||||||||||||||||||
Interest rate swaps - floor income hedges | (3,205) | (4,285) | |||||||||||||||||||||
Total settlements - income (expense) | (2,809) | (4,304) | |||||||||||||||||||||
Change in fair value: | |||||||||||||||||||||||
1:3 basis swaps | 889 | 2,799 | |||||||||||||||||||||
Interest rate swaps - floor income hedges | 144,845 | 36,010 | |||||||||||||||||||||
Total change in fair value - income (expense) | 145,734 | 38,809 | |||||||||||||||||||||
Derivative market value adjustments and derivative settlements, net - income (expense) | $ | 142,925 | 34,505 |
As of September 30, 2021 | As of December 31, 2020 | As of March 31, 2022 | As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | Amortized cost | Gross unrealized gains | Gross unrealized losses (a) | Fair value | Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments (at fair value): | Investments (at fair value): | Investments (at fair value): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FFELP loan asset-backed securities- available-for-sale | FFELP loan asset-backed securities- available-for-sale | $ | 387,777 | 15,932 | (49) | 403,660 | 338,475 | 8,040 | (13) | 346,502 | FFELP loan asset-backed securities- available-for-sale | $ | 507,378 | 12,079 | (2,388) | 517,069 | 480,691 | 14,710 | (719) | 494,682 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loan asset-backed securities - available-for-sale | Private education loan asset-backed securities - available-for-sale | 369,859 | 1,865 | — | 371,724 | — | — | — | — | Private education loan asset-backed securities - available-for-sale | 388,736 | — | (16,851) | 371,885 | 414,286 | 507 | (2,241) | 412,552 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other debt securities - available-for-sale | Other debt securities - available-for-sale | 2,337 | — | — | 2,337 | 2,103 | 2 | — | 2,105 | Other debt securities - available-for-sale | 49,306 | 4 | (78) | 49,232 | 22,435 | — | — | 22,435 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total available-for-sale debt securities | Total available-for-sale debt securities | $ | 945,420 | 12,083 | (19,317) | 938,186 | 917,412 | 15,217 | (2,960) | 929,669 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | 58,336 | 13,302 | (1,594) | 70,044 | 36,227 | 8,768 | (2,954) | 42,041 | Equity securities | 71,698 | 71,986 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investments (at fair value) | Total investments (at fair value) | $ | 818,309 | 31,099 | (1,643) | 847,765 | 376,805 | 16,810 | (2,967) | 390,648 | Total investments (at fair value) | 1,009,884 | 1,001,655 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Investments (not measured at fair value): | Other Investments (not measured at fair value): | Other Investments (not measured at fair value): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other debt securities - held-to-maturity | Other debt securities - held-to-maturity | 8,200 | 8,200 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Venture capital and funds: | Venture capital and funds: | Venture capital and funds: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Measurement alternative (c) | 151,100 | 144,795 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Measurement alternative | Measurement alternative | 164,368 | 157,609 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method | Equity method | 37,020 | 14,018 | Equity method | 74,339 | 67,840 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 804 | 894 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total venture capital and funds | Total venture capital and funds | 188,924 | 159,707 | Total venture capital and funds | 238,707 | 225,449 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | Real estate: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method | Equity method | 35,605 | 50,291 | Equity method | 50,257 | 47,226 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes receivable | Notes receivable | 3,500 | 847 | Notes receivable | 4,169 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total real estate | Total real estate | 39,105 | 51,138 | Total real estate | 54,426 | 47,226 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in ALLO: | Investment in ALLO: | Investment in ALLO: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Voting interest/equity method (d) | Voting interest/equity method (d) | 97,776 | 129,396 | Voting interest/equity method (d) | 108,773 | 87,247 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred membership interest and accrued and unpaid preferred return (e) | Preferred membership interest and accrued and unpaid preferred return (e) | 135,300 | 228,916 | Preferred membership interest and accrued and unpaid preferred return (e) | 139,459 | 137,342 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investment in ALLO | Total investment in ALLO | 233,076 | 358,312 | Total investment in ALLO | 248,232 | 224,589 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Solar (f) | (46,539) | (30,373) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial interest in private education loan securitizations, including accrued interest (g) | 44,902 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial interest in consumer loan securitizations, net of allowance for credit losses of $4,449 as of December 31, 2020 (g) | 37,021 | 27,954 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial interest in federally insured student loan securitizations (g) | 26,904 | 30,377 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax liens and affordable housing | 3,755 | 5,177 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial interest in loan securitizations (f): | Beneficial interest in loan securitizations (f): | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 73,915 | 66,008 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | Consumer loans | 31,222 | 28,366 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured student loans | Federally insured student loans | 25,217 | 25,768 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total beneficial interest in loan securitizations | Total beneficial interest in loan securitizations | 130,354 | 120,142 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Solar (g) | Solar (g) | (44,354) | (42,457) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax liens, affordable housing, and other | Tax liens, affordable housing, and other | 4,129 | 4,115 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investments (not measured at fair value) | Total investments (not measured at fair value) | 527,148 | 602,292 | Total investments (not measured at fair value) | 639,694 | 587,264 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investments | Total investments | $ | 1,374,913 | $ | 992,940 | Total investments | $ | 1,649,578 | $ | 1,588,919 |
Weighted average remaining useful life as of September 30, 2021 (months) | |||||||||||||||||
As of | As of | ||||||||||||||||
September 30, 2021 | December 31, 2020 | ||||||||||||||||
Amortizable intangible assets, net: | |||||||||||||||||
Customer relationships (net of accumulated amortization of $94,767 and $83,419, respectively) | 105 | $ | 50,525 | 66,974 | |||||||||||||
Computer software (net of accumulated amortization of $3,143 and $4,127, respectively) | 27 | 4,651 | 6,430 | ||||||||||||||
Trade names (net of accumulated amortization of $3,455) | — | — | 1,666 | ||||||||||||||
Total - amortizable intangible assets, net | 98 | $ | 55,176 | 75,070 |
Weighted average remaining useful life as of March 31, 2022 (months) | |||||||||||||||||
As of | As of | ||||||||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||||||||
Amortizable intangible assets, net: | |||||||||||||||||
Customer relationships (net of accumulated amortization of $99,366 and $97,398, respectively) | 100 | $ | 45,926 | 47,894 | |||||||||||||
Computer software (net of accumulated amortization of $4,236 and $3,669, respectively) | 21 | 3,618 | 4,135 | ||||||||||||||
Total - amortizable intangible assets, net | 94 | $ | 49,544 | 52,029 |
2021 (October 1 - December 31) | $ | 3,147 | ||||||||
2022 | 9,939 | |||||||||
2022 (April 1 - December 31) | 2022 (April 1 - December 31) | $ | 7,454 | |||||||
2023 | 2023 | 9,830 | 2023 | 9,830 | ||||||
2024 | 2024 | 7,457 | 2024 | 7,457 | ||||||
2025 | 2025 | 4,644 | 2025 | 4,644 | ||||||
2026 and thereafter | 20,159 | |||||||||
2026 | 2026 | 4,517 | ||||||||
2027 and thereafter | 2027 and thereafter | 15,642 | ||||||||
$ | 55,176 | $ | 49,544 |
Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Total | ||||||||||||||||||||||||||||||
Goodwill balance | $ | 23,639 | 76,570 | 41,883 | — | — | 142,092 | ||||||||||||||||||||||||||||
As of | As of | ||||||||||||||||
Useful life | September 30, 2021 | December 31, 2020 | |||||||||||||||
Computer equipment and software | 1-5 years | $ | 220,509 | 172,664 | |||||||||||||
Building and building improvements | 5-48 years | 46,018 | 52,444 | ||||||||||||||
Office furniture and equipment | 1-10 years | 23,819 | 21,899 | ||||||||||||||
Leasehold improvements | 1-15 years | 9,330 | 9,168 | ||||||||||||||
Transportation equipment | 5-10 years | 4,857 | 4,857 | ||||||||||||||
Land | — | 3,642 | 3,642 | ||||||||||||||
Construction in progress | — | 3,783 | 18,478 | ||||||||||||||
311,958 | 283,152 | ||||||||||||||||
Accumulated depreciation | (194,662) | (159,625) | |||||||||||||||
Total property and equipment, net | $ | 117,296 | 123,527 |
Three months ended September 30, | Three months ended March 31, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shareholders | Unvested restricted stock shareholders | Total | Common shareholders | Unvested restricted stock shareholders | Total | Common shareholders | Unvested restricted stock shareholders | Total | Common shareholders | Unvested restricted stock shareholders | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Numerator: | Numerator: | Numerator: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc. | Net income attributable to Nelnet, Inc. | $ | 52,245 | 893 | 53,138 | 70,483 | 1,020 | 71,503 | Net income attributable to Nelnet, Inc. | $ | 183,328 | 3,319 | 186,647 | 121,766 | 1,832 | 123,598 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Denominator: | Denominator: | Denominator: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding - basic and diluted | Weighted-average common shares outstanding - basic and diluted | 37,947,257 | 648,464 | 38,595,721 | 37,988,584 | 549,892 | 38,538,476 | Weighted-average common shares outstanding - basic and diluted | 37,365,339 | 676,495 | 38,041,834 | 38,031,267 | 572,288 | 38,603,555 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share - basic and diluted | Earnings per share - basic and diluted | $ | 1.38 | 1.38 | 1.38 | 1.86 | 1.86 | 1.86 | Earnings per share - basic and diluted | $ | 4.91 | 4.91 | 4.91 | 3.20 | 3.20 | 3.20 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shareholders | Unvested restricted stock shareholders | Total | Common shareholders | Unvested restricted stock shareholders | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Numerator: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc. | $ | 256,416 | 4,187 | 260,603 | 115,794 | 1,658 | 117,452 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Denominator: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding - basic and diluted | 38,025,898 | 620,994 | 38,646,892 | 38,676,092 | 553,840 | 39,229,932 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share - basic and diluted | $ | 6.74 | 6.74 | 6.74 | 2.99 | 2.99 | 2.99 |
Three months ended September 30, 2021 | Three months ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Communications (a) | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Eliminations | Total | Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest income | Total interest income | $ | 31 | 344 | — | 131,781 | 2,061 | 2,609 | (172) | 136,654 | Total interest income | $ | 67 | 339 | 118,598 | 3,030 | 3,992 | (828) | 125,196 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 24 | — | — | 48,662 | 421 | 1,242 | (172) | 50,176 | Interest expense | 24 | — | 46,003 | 856 | 2,026 | (828) | 48,079 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | 7 | 344 | — | 83,119 | 1,640 | 1,367 | — | 86,478 | Net interest income | 43 | 339 | 72,595 | 2,174 | 1,966 | — | 77,117 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less provision (negative provision) for loan losses | — | — | — | 5,940 | (113) | — | — | 5,827 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less (negative provision) provision for loan losses | Less (negative provision) provision for loan losses | — | — | (864) | 429 | — | — | (435) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | Net interest income after provision for loan losses | 7 | 344 | — | 77,179 | 1,753 | 1,367 | — | 80,651 | Net interest income after provision for loan losses | 43 | 339 | 73,459 | 1,745 | 1,966 | — | 77,552 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income/expense: | Other income/expense: | Other income/expense: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | Loan servicing and systems revenue | 112,351 | — | — | — | — | — | — | 112,351 | Loan servicing and systems revenue | 136,368 | — | — | — | — | — | 136,368 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 8,621 | 3 | — | — | — | — | (8,624) | — | Intersegment revenue | 8,480 | 3 | — | — | — | (8,483) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | — | 85,324 | — | — | — | — | — | 85,324 | Education technology, services, and payment processing revenue | — | 112,286 | — | — | — | — | 112,286 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Communications revenue | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 727 | 13 | — | (7,275) | 450 | 17,952 | — | 11,867 | Other | 740 | — | 6,511 | 1,500 | 1,125 | — | 9,877 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | Gain on sale of loans | — | — | — | 3,444 | — | — | — | 3,444 | Gain on sale of loans | — | — | 2,989 | — | — | — | 2,989 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | (13,243) | — | — | — | — | (916) | — | (14,159) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | Derivative settlements, net | — | — | — | (5,909) | — | — | — | (5,909) | Derivative settlements, net | — | — | (2,809) | — | — | — | (2,809) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | Derivative market value adjustments, net | — | — | — | 7,260 | — | — | — | 7,260 | Derivative market value adjustments, net | — | — | 145,734 | — | — | — | 145,734 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income/expense | Total other income/expense | 108,456 | 85,340 | — | (2,480) | 450 | 17,036 | (8,624) | 200,178 | Total other income/expense | 145,588 | 112,289 | 152,425 | 1,500 | 1,125 | (8,483) | 404,445 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | — | 31,335 | — | — | — | — | — | 31,335 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide communications services | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of services | — | 31,335 | — | — | — | — | — | 31,335 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services | Cost of services | — | 35,545 | — | — | — | — | 35,545 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | Operating expenses: | Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 75,305 | 29,119 | — | 542 | 890 | 22,735 | — | 128,592 | Salaries and benefits | 91,972 | 31,286 | 591 | 1,554 | 24,012 | — | 149,414 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 4,245 | 2,762 | — | — | — | 8,702 | — | 15,710 | Depreciation and amortization | 4,954 | 2,315 | — | 3 | 9,684 | — | 16,956 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 12,738 | 4,804 | — | 5,420 | 445 | 14,918 | — | 38,324 | Other expenses | 16,213 | 5,764 | 3,033 | 682 | 13,804 | — | 39,499 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | Intersegment expenses, net | 19,217 | 3,672 | — | 8,652 | 32 | (22,949) | (8,624) | — | Intersegment expenses, net | 20,398 | 4,605 | 8,831 | 45 | (25,396) | (8,483) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 111,505 | 40,357 | — | 14,614 | 1,367 | 23,406 | (8,624) | 182,626 | Total operating expenses | 133,537 | 43,970 | 12,455 | 2,284 | 22,104 | (8,483) | 205,869 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | Income (loss) before income taxes | (3,042) | 13,992 | — | 60,085 | 836 | (5,003) | — | 66,868 | Income (loss) before income taxes | 12,094 | 33,113 | 213,429 | 961 | (19,013) | — | 240,583 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit (b) | 730 | (3,358) | — | (14,421) | (200) | 1,600 | — | (15,649) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | Income tax (expense) benefit | (2,903) | (7,947) | (51,223) | (223) | 6,598 | — | (55,697) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | (2,312) | 10,634 | — | 45,664 | 636 | (3,403) | — | 51,219 | Net income (loss) | 9,191 | 25,166 | 162,206 | 738 | (12,415) | — | 184,886 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests | — | — | — | — | — | 1,919 | — | 1,919 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | Net loss attributable to noncontrolling interests | — | — | — | — | 1,761 | — | 1,761 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Nelnet, Inc. | Net income (loss) attributable to Nelnet, Inc. | $ | (2,312) | 10,634 | — | 45,664 | 636 | (1,484) | — | 53,138 | Net income (loss) attributable to Nelnet, Inc. | $ | 9,191 | 25,166 | 162,206 | 738 | (10,654) | — | 186,647 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets as of September 30, 2021 | $ | 238,602 | 415,178 | — | 20,001,997 | 413,155 | 1,740,060 | (406,253) | 22,402,739 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets as of March 31, 2022 | Total assets as of March 31, 2022 | $ | 259,712 | 376,794 | 18,158,972 | 656,242 | 2,066,417 | (528,396) | 20,989,741 |
Three months ended September 30, 2020 | Three months ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Communications | Asset Generation and Management | Nelnet Bank (a) | Corporate and Other Activities | Eliminations | Total | Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest income | Total interest income | $ | 34 | 367 | — | 137,959 | — | 1,646 | (261) | 139,745 | Total interest income | $ | 34 | 263 | 126,402 | 1,376 | 1,246 | (218) | 129,103 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 24 | 16 | — | 57,755 | — | 888 | (261) | 58,423 | Interest expense | 23 | — | 26,950 | 194 | 824 | (218) | 27,773 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | 10 | 351 | — | 80,204 | — | 758 | — | 81,322 | Net interest income | 11 | 263 | 99,452 | 1,182 | 422 | — | 101,330 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less provision (negative provision) for loan losses | — | — | — | (5,821) | — | — | — | (5,821) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less (negative provision) provision for loan losses | Less (negative provision) provision for loan losses | — | — | (17,470) | 422 | — | — | (17,048) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | Net interest income after provision for loan losses | 10 | 351 | — | 86,025 | — | 758 | — | 87,143 | Net interest income after provision for loan losses | 11 | 263 | 116,922 | 760 | 422 | — | 118,378 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income/expense: | Other income/expense: | Other income/expense: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | Loan servicing and systems revenue | 113,794 | — | — | — | — | — | — | 113,794 | Loan servicing and systems revenue | 111,517 | — | — | — | — | — | 111,517 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 8,287 | 3 | — | — | — | — | (8,290) | — | Intersegment revenue | 8,268 | 3 | — | — | — | (8,271) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | — | 74,121 | — | — | — | — | — | 74,121 | Education technology, services, and payment processing revenue | — | 95,258 | — | — | — | — | 95,258 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Communications revenue | — | — | 20,211 | — | — | — | — | 20,211 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 2,353 | 373 | 511 | 1,004 | — | (2,737) | — | 1,502 | Other | 1,113 | — | 2,881 | 22 | (6,184) | — | (2,168) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | Gain on sale of loans | — | — | — | 14,817 | — | — | — | 14,817 | Gain on sale of loans | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | Derivative settlements, net | — | — | — | (2,391) | — | — | — | (2,391) | Derivative settlements, net | — | — | (4,304) | — | — | — | (4,304) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | Derivative market value adjustments, net | — | — | — | 3,440 | — | — | — | 3,440 | Derivative market value adjustments, net | — | — | 38,809 | — | — | — | 38,809 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income/expense | Total other income/expense | 124,434 | 74,497 | 20,722 | 16,870 | — | (2,737) | (8,290) | 225,494 | Total other income/expense | 120,898 | 95,261 | 37,386 | 22 | (6,184) | (8,271) | 239,112 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | — | 25,243 | — | — | — | — | — | 25,243 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide communications services | — | — | 5,914 | — | — | — | — | 5,914 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of services | — | 25,243 | 5,914 | — | — | — | — | 31,157 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services | Cost of services | — | 27,052 | — | — | — | — | 27,052 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | Operating expenses: | Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 72,912 | 25,460 | 5,485 | 438 | — | 21,801 | — | 126,096 | Salaries and benefits | 66,458 | 25,941 | 495 | 1,488 | 21,409 | — | 115,791 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 9,951 | 2,366 | 11,152 | — | — | 6,839 | — | 30,308 | Depreciation and amortization | 8,192 | 3,071 | — | — | 8,920 | — | 20,184 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 12,407 | 3,126 | 2,219 | 3,672 | — | 13,320 | — | 34,744 | Other expenses | 13,285 | 4,822 | 3,777 | 545 | 14,272 | — | 36,698 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | Intersegment expenses, net | 15,834 | 3,610 | 491 | 8,868 | — | (20,513) | (8,290) | — | Intersegment expenses, net | 16,890 | 3,664 | 8,427 | 3 | (20,713) | (8,271) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 111,104 | 34,562 | 19,347 | 12,978 | — | 21,447 | (8,290) | 191,148 | Total operating expenses | 104,825 | 37,498 | 12,699 | 2,036 | 23,888 | (8,271) | 172,673 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | Income (loss) before income taxes | 13,340 | 15,043 | (4,539) | 89,917 | — | (23,426) | — | 90,332 | Income (loss) before income taxes | 16,084 | 30,974 | 141,609 | (1,254) | (29,650) | — | 157,765 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | Income tax (expense) benefit | (3,201) | (3,610) | 1,089 | (21,580) | — | 8,146 | — | (19,156) | Income tax (expense) benefit | (3,860) | (7,434) | (33,987) | 286 | 10,133 | — | (34,861) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | 10,139 | 11,433 | (3,450) | 68,337 | — | (15,280) | — | 71,176 | Net income (loss) | 12,224 | 23,540 | 107,622 | (968) | (19,517) | — | 122,904 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests | — | — | — | — | — | 327 | — | 327 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | Net loss attributable to noncontrolling interests | — | — | — | — | 694 | — | 694 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Nelnet, Inc. | Net income (loss) attributable to Nelnet, Inc. | $ | 10,139 | 11,433 | (3,450) | 68,337 | — | (14,953) | — | 71,503 | Net income (loss) attributable to Nelnet, Inc. | $ | 12,224 | 23,540 | 107,622 | (968) | (18,823) | — | 123,598 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets as of September 30, 2020 | $ | 211,726 | 382,608 | 305,276 | 20,686,478 | — | 770,621 | (134,183) | 22,222,526 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets as of March 31, 2021 | Total assets as of March 31, 2021 | $ | 191,910 | 372,315 | 20,367,532 | 296,908 | 1,148,560 | (210,017) | 22,167,208 |
Nine months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Communications (a) | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||
Total interest income | $ | 95 | 818 | — | 388,149 | 5,479 | 5,379 | (578) | 399,341 | ||||||||||||||||||||||||||||||||||||||
Interest expense | 70 | — | — | 124,282 | 1,007 | 3,158 | (578) | 127,939 | |||||||||||||||||||||||||||||||||||||||
Net interest income | 25 | 818 | — | 263,867 | 4,472 | 2,221 | — | 271,402 | |||||||||||||||||||||||||||||||||||||||
Less provision (negative provision) for loan losses | — | — | — | (11,225) | 378 | — | — | (10,847) | |||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 25 | 818 | — | 275,092 | 4,094 | 2,221 | — | 282,249 | |||||||||||||||||||||||||||||||||||||||
Other income/expense: | |||||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | 335,961 | — | — | — | — | — | — | 335,961 | |||||||||||||||||||||||||||||||||||||||
Intersegment revenue | 25,369 | 9 | — | — | — | — | (25,378) | — | |||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | — | 257,284 | — | — | — | — | — | 257,284 | |||||||||||||||||||||||||||||||||||||||
Communications revenue | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Other | 2,541 | 13 | — | (4,514) | 475 | 31,668 | — | 30,183 | |||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | — | — | — | 18,715 | — | — | — | 18,715 | |||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | (13,243) | — | — | 2,436 | — | (1,416) | — | (12,223) | |||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | — | — | — | (15,587) | — | — | — | (15,587) | |||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | — | — | — | 44,455 | — | — | — | 44,455 | |||||||||||||||||||||||||||||||||||||||
Total other income/expense | 350,628 | 257,306 | — | 45,505 | 475 | 30,252 | (25,378) | 658,788 | |||||||||||||||||||||||||||||||||||||||
Cost of services: | |||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | — | 80,063 | — | — | — | — | — | 80,063 | |||||||||||||||||||||||||||||||||||||||
Cost to provide communications services | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||
Total cost of services | — | 80,063 | — | — | — | — | — | 80,063 | |||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | 210,151 | 82,154 | — | 1,594 | 3,956 | 65,496 | — | 363,351 | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 20,411 | 8,789 | — | — | — | 26,927 | — | 56,129 | |||||||||||||||||||||||||||||||||||||||
Other expenses | 39,296 | 14,063 | — | 12,763 | 1,227 | 40,265 | — | 107,611 | |||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | 52,241 | 10,856 | — | 25,627 | 72 | (63,419) | (25,378) | — | |||||||||||||||||||||||||||||||||||||||
Total operating expenses | 322,099 | 115,862 | — | 39,984 | 5,255 | 69,269 | (25,378) | 527,091 | |||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 28,554 | 62,199 | — | 280,613 | (686) | (36,796) | — | 333,883 | |||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit (b) | (6,853) | (14,928) | — | (67,347) | 151 | 12,230 | — | (76,747) | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | 21,701 | 47,271 | — | 213,266 | (535) | (24,566) | — | 257,136 | |||||||||||||||||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests | — | — | — | — | — | 3,467 | — | 3,467 | |||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Nelnet, Inc. | $ | 21,701 | 47,271 | — | 213,266 | (535) | (21,099) | — | 260,603 | ||||||||||||||||||||||||||||||||||||||
Total assets as of September 30, 2021 | $ | 238,602 | 415,178 | — | 20,001,997 | 413,155 | 1,740,060 | (406,253) | 22,402,739 |
Nine months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Communications | Asset Generation and Management | Nelnet Bank (a) | Corporate and Other Activities | Eliminations | Total | ||||||||||||||||||||||||||||||||||||||||
Total interest income | $ | 403 | 2,777 | — | 474,468 | — | 4,397 | (1,228) | 480,818 | ||||||||||||||||||||||||||||||||||||||
Interest expense | 97 | 54 | — | 275,492 | — | 3,373 | (1,228) | 277,788 | |||||||||||||||||||||||||||||||||||||||
Net interest income | 306 | 2,723 | — | 198,976 | — | 1,024 | — | 203,030 | |||||||||||||||||||||||||||||||||||||||
Less provision (negative provision) for loan losses | — | — | — | 73,476 | — | — | — | 73,476 | |||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 306 | 2,723 | — | 125,500 | — | 1,024 | — | 129,554 | |||||||||||||||||||||||||||||||||||||||
Other income/expense: | |||||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | 337,571 | — | — | — | — | — | — | 337,571 | |||||||||||||||||||||||||||||||||||||||
Intersegment revenue | 27,878 | 17 | — | — | — | — | (27,895) | — | |||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | — | 217,100 | — | — | — | — | — | 217,100 | |||||||||||||||||||||||||||||||||||||||
Communications revenue | — | — | 57,390 | — | — | — | — | 57,390 | |||||||||||||||||||||||||||||||||||||||
Other | 6,897 | 373 | 1,256 | 4,951 | — | 56,435 | — | 69,910 | |||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | — | — | — | 33,023 | — | — | — | 33,023 | |||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | — | — | — | (26,303) | — | (8,116) | — | (34,419) | |||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | — | — | — | 7,666 | — | — | — | 7,666 | |||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | — | — | — | (21,072) | — | — | — | (21,072) | |||||||||||||||||||||||||||||||||||||||
Total other income/expense | 372,346 | 217,490 | 58,646 | (1,735) | — | 48,319 | (27,895) | 667,169 | |||||||||||||||||||||||||||||||||||||||
Cost of services: | |||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | — | 63,424 | — | — | — | — | — | 63,424 | |||||||||||||||||||||||||||||||||||||||
Cost to provide communications services | — | — | 17,240 | — | — | — | — | 17,240 | |||||||||||||||||||||||||||||||||||||||
Total cost of services | — | 63,424 | 17,240 | — | — | — | — | 80,664 | |||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | 211,806 | 73,678 | 16,471 | 1,301 | — | 61,964 | — | 365,220 | |||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 27,941 | 7,115 | 32,482 | — | — | 19,811 | — | 87,349 | |||||||||||||||||||||||||||||||||||||||
Other expenses | 43,277 | 11,544 | 9,681 | 12,253 | — | 38,428 | — | 115,184 | |||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | 48,069 | 10,366 | 1,650 | 29,839 | — | (62,030) | (27,895) | — | |||||||||||||||||||||||||||||||||||||||
Total operating expenses | 331,093 | 102,703 | 60,284 | 43,393 | — | 58,173 | (27,895) | 567,753 | |||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 41,559 | 54,086 | (18,878) | 80,372 | — | (8,830) | — | 148,306 | |||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | (9,974) | (12,981) | 4,531 | (19,289) | — | 7,426 | — | (30,286) | |||||||||||||||||||||||||||||||||||||||
Net income (loss) | 31,585 | 41,105 | (14,347) | 61,083 | — | (1,404) | — | 118,020 | |||||||||||||||||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests | — | — | — | — | — | (568) | — | (568) | |||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Nelnet, Inc. | $ | 31,585 | 41,105 | (14,347) | 61,083 | — | (1,972) | — | 117,452 | ||||||||||||||||||||||||||||||||||||||
Total assets as of September 30, 2020 | $ | 211,726 | 382,608 | 305,276 | 20,686,478 | — | 770,621 | (134,183) | 22,222,526 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Government servicing - Nelnet | $ | 37,595 | 36,295 | 107,843 | 112,305 | ||||||||||||||||||
Government servicing - Great Lakes | 46,489 | 45,350 | 133,654 | 137,010 | |||||||||||||||||||
Private education and consumer loan servicing | 13,198 | 7,928 | 34,563 | 24,733 | |||||||||||||||||||
FFELP servicing | 4,557 | 4,912 | 13,930 | 15,443 | |||||||||||||||||||
Software services | 6,952 | 10,426 | 22,779 | 32,395 | |||||||||||||||||||
Outsourced services | 3,560 | 8,883 | 23,192 | 15,685 | |||||||||||||||||||
Loan servicing and systems revenue | $ | 112,351 | 113,794 | 335,961 | 337,571 |
Three months ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Government servicing - Nelnet | $ | 61,049 | 34,872 | ||||||||||||||||||||
Government servicing - Great Lakes | 48,076 | 43,302 | |||||||||||||||||||||
Private education and consumer loan servicing | 12,873 | 8,548 | |||||||||||||||||||||
FFELP servicing | 4,248 | 4,670 | |||||||||||||||||||||
Software services | 7,400 | 8,454 | |||||||||||||||||||||
Outsourced services and other | 2,722 | 11,671 | |||||||||||||||||||||
Loan servicing and systems revenue | $ | 136,368 | 111,517 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Tuition payment plan services | $ | 23,618 | 22,477 | 79,706 | 77,011 | ||||||||||||||||||
Payment processing | 39,852 | 35,420 | 97,898 | 88,329 | |||||||||||||||||||
Education technology and services | 21,098 | 15,840 | 78,153 | 50,820 | |||||||||||||||||||
Other | 756 | 384 | 1,527 | 940 | |||||||||||||||||||
Education technology, services, and payment processing revenue | $ | 85,324 | 74,121 | 257,284 | 217,100 |
Three months ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Tuition payment plan services | $ | 30,716 | 29,550 | ||||||||||||||||||||
Payment processing | 38,071 | 33,038 | |||||||||||||||||||||
Education technology and services | 43,251 | 32,527 | |||||||||||||||||||||
Other | 248 | 143 | |||||||||||||||||||||
Education technology, services, and payment processing revenue | $ | 112,286 | 95,258 |
Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | ||||||||||||||||||||
Income/gains from investments, net | $ | 16,050 | 1,687 | 40,141 | 51,772 | ||||||||||||||||||
Investment advisory services | 2,400 | 4,463 | 6,242 | 8,187 | |||||||||||||||||||
ALLO preferred return | 2,043 | — | 6,384 | — | |||||||||||||||||||
Management fee revenue | 727 | 2,353 | 2,541 | 6,897 | |||||||||||||||||||
Borrower late fee income | 514 | 871 | 1,698 | 4,377 | |||||||||||||||||||
Loss from ALLO voting membership interest investment | (10,495) | — | (31,620) | — | |||||||||||||||||||
Loss from solar investments | (3,393) | (11,839) | (7,375) | (12,638) | |||||||||||||||||||
(Loss) gain on debt repurchased | (3,268) | 105 | (3,964) | 508 | |||||||||||||||||||
Other | 7,289 | 3,862 | 16,136 | 10,807 | |||||||||||||||||||
$ | 11,867 | 1,502 | 30,183 | 69,910 |
Three months ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Income/gains from investments, net | $ | 11,856 | 8,498 | ||||||||||||||||||||
Borrower late fee income | 2,431 | 442 | |||||||||||||||||||||
ALLO preferred return | 2,117 | 2,321 | |||||||||||||||||||||
Investment advisory services | 1,282 | 2,697 | |||||||||||||||||||||
Negative provision for beneficial interests investment | — | 2,436 | |||||||||||||||||||||
Loss from ALLO voting membership interest investment | (13,130) | (22,219) | |||||||||||||||||||||
Loss from solar investments | (1,030) | (1,679) | |||||||||||||||||||||
Other | 6,351 | 5,336 | |||||||||||||||||||||
$ | 9,877 | (2,168) |
As of September 30, 2021 | As of December 31, 2020 | As of March 31, 2022 | As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | Level 1 | Level 2 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | Assets: | Assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments: | Investments: | Investments: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FFELP loan asset-backed debt securities - available-for-sale | FFELP loan asset-backed debt securities - available-for-sale | $ | — | 403,660 | 403,660 | — | 346,502 | 346,502 | FFELP loan asset-backed debt securities - available-for-sale | $ | — | 517,069 | 517,069 | — | 494,682 | 494,682 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loan asset-backed debt securities - available-for-sale | Private education loan asset-backed debt securities - available-for-sale | — | 371,724 | 371,724 | — | — | — | Private education loan asset-backed debt securities - available-for-sale | — | 371,885 | 371,885 | — | 412,552 | 412,552 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other debt securities - available-for-sale | Other debt securities - available-for-sale | 100 | 2,237 | 2,337 | 103 | 2,002 | 2,105 | Other debt securities - available-for-sale | 100 | 49,132 | 49,232 | 100 | 22,335 | 22,435 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | 61,573 | — | 61,573 | 10,114 | — | 10,114 | Equity securities | 59,943 | — | 59,943 | 63,154 | — | 63,154 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities measured at net asset value | Equity securities measured at net asset value | 8,471 | 31,927 | Equity securities measured at net asset value | 11,755 | 8,832 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investments | Total investments | 61,673 | 777,621 | 847,765 | 10,217 | 348,504 | 390,648 | Total investments | 60,043 | 938,086 | 1,009,884 | 63,254 | 929,569 | 1,001,655 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | Total assets | $ | 61,673 | 777,621 | 847,765 | 10,217 | 348,504 | 390,648 | Total assets | $ | 60,043 | 938,086 | 1,009,884 | 63,254 | 929,569 | 1,001,655 |
As of September 30, 2021 | As of March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value | Carrying value | Level 1 | Level 2 | Level 3 | Fair value | Carrying value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets: | Financial assets: | Financial assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans receivable | Loans receivable | $ | 19,690,209 | 18,469,372 | — | — | 19,690,209 | Loans receivable | $ | 17,656,032 | 16,846,802 | — | — | 17,656,032 | ||||||||||||||||||||||||||||||||||||||||||||
Accrued loan interest receivable | Accrued loan interest receivable | 834,831 | 834,831 | — | 834,831 | — | Accrued loan interest receivable | 774,774 | 774,774 | — | 774,774 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | 191,936 | 191,936 | 191,936 | — | — | Cash and cash equivalents | 162,785 | 162,785 | 162,785 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Investments (at fair value) | Investments (at fair value) | 847,765 | 847,765 | 61,673 | 777,621 | — | Investments (at fair value) | 1,009,884 | 1,009,884 | 60,043 | 938,086 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Beneficial interest in loan securitizations | Beneficial interest in loan securitizations | 127,364 | 108,827 | — | — | 127,364 | Beneficial interest in loan securitizations | 145,623 | 130,354 | — | — | 145,623 | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | Restricted cash | 764,089 | 764,089 | 764,089 | — | — | Restricted cash | 757,954 | 757,954 | 757,954 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash – due to customers | Restricted cash – due to customers | 295,053 | 295,053 | 295,053 | — | — | Restricted cash – due to customers | 256,927 | 256,927 | 256,927 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Financial liabilities: | Financial liabilities: | Financial liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds and notes payable | Bonds and notes payable | 18,854,255 | 18,610,748 | — | 18,854,255 | — | Bonds and notes payable | 16,705,877 | 16,736,701 | — | 16,705,877 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest payable | Accrued interest payable | 4,441 | 4,441 | — | 4,441 | — | Accrued interest payable | 7,216 | 7,216 | — | 7,216 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Bank deposits | Bank deposits | 199,372 | 200,651 | 42,585 | 156,787 | — | Bank deposits | 469,559 | 484,047 | 189,319 | 280,240 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Due to customers | Due to customers | 354,543 | 354,543 | 354,543 | — | — | Due to customers | 276,191 | 276,191 | 276,191 | — | — |
As of December 31, 2020 | As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair value | Carrying value | Level 1 | Level 2 | Level 3 | Fair value | Carrying value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||||||||||||||||||||||
Financial assets: | Financial assets: | Financial assets: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans receivable | Loans receivable | $ | 20,454,132 | 19,391,045 | — | — | 20,454,132 | Loans receivable | $ | 18,576,272 | 17,546,645 | — | — | 18,576,272 | ||||||||||||||||||||||||||||||||||||||||||||
Accrued loan interest receivable | Accrued loan interest receivable | 794,611 | 794,611 | — | 794,611 | — | Accrued loan interest receivable | 788,552 | 788,552 | — | 788,552 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | 121,249 | 121,249 | 121,249 | — | — | Cash and cash equivalents | 125,563 | 125,563 | 125,563 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Investments (at fair value) | Investments (at fair value) | 390,648 | 390,648 | 10,217 | 348,504 | — | Investments (at fair value) | 1,001,655 | 1,001,655 | 63,254 | 929,569 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Beneficial interest in loan securitizations | Beneficial interest in loan securitizations | 58,709 | 58,331 | — | — | 58,709 | Beneficial interest in loan securitizations | 142,391 | 120,142 | — | — | 142,391 | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | Restricted cash | 553,175 | 553,175 | 553,175 | — | — | Restricted cash | 741,981 | 741,981 | 741,981 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash – due to customers | Restricted cash – due to customers | 283,971 | 283,971 | 283,971 | — | — | Restricted cash – due to customers | 326,645 | 326,645 | 326,645 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Financial liabilities: | Financial liabilities: | Financial liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds and notes payable | Bonds and notes payable | 19,270,810 | 19,320,726 | — | 19,270,810 | — | Bonds and notes payable | 17,819,902 | 17,631,089 | — | 17,819,902 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest payable | Accrued interest payable | 28,701 | 28,701 | — | 28,701 | — | Accrued interest payable | 4,566 | 4,566 | — | 4,566 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Bank deposits | Bank deposits | 54,599 | 54,633 | 48,422 | 6,177 | — | Bank deposits | 342,463 | 344,315 | 184,897 | 157,566 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Due to customers | Due to customers | 301,471 | 301,471 | 301,471 | — | — | Due to customers | 366,002 | 366,002 | 366,002 | — | — |
Three months ended September 30, | Nine months ended September 30, | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
GAAP net income attributable to Nelnet, Inc. | GAAP net income attributable to Nelnet, Inc. | $ | 53,138 | 71,503 | 260,603 | 117,452 | GAAP net income attributable to Nelnet, Inc. | $ | 186,647 | 123,598 | ||||||||||||||||||||||||||||||||||||
Realized and unrealized derivative market value adjustments | Realized and unrealized derivative market value adjustments | (7,260) | (3,440) | (44,455) | 21,072 | Realized and unrealized derivative market value adjustments | (145,734) | (38,809) | ||||||||||||||||||||||||||||||||||||||
Tax effect (a) | Tax effect (a) | 1,742 | 826 | 10,669 | (5,057) | Tax effect (a) | 34,976 | 9,314 | ||||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | Net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | $ | 47,620 | 68,889 | 226,817 | 133,467 | Net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | $ | 75,889 | 94,103 | ||||||||||||||||||||||||||||||||||||
Earnings per share: | Earnings per share: | Earnings per share: | ||||||||||||||||||||||||||||||||||||||||||||
GAAP net income attributable to Nelnet, Inc. | GAAP net income attributable to Nelnet, Inc. | $ | 1.38 | 1.86 | 6.74 | 2.99 | GAAP net income attributable to Nelnet, Inc. | $ | 4.91 | 3.20 | ||||||||||||||||||||||||||||||||||||
Realized and unrealized derivative market value adjustments | Realized and unrealized derivative market value adjustments | (0.19) | (0.09) | (1.15) | 0.54 | Realized and unrealized derivative market value adjustments | (3.83) | (1.01) | ||||||||||||||||||||||||||||||||||||||
Tax effect (a) | Tax effect (a) | 0.04 | 0.02 | 0.28 | (0.13) | Tax effect (a) | 0.91 | 0.25 | ||||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | Net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | $ | 1.23 | 1.79 | 5.87 | 3.40 | Net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | $ | 1.99 | 2.44 |
Three months ended March 31, | |||||||||||||||||
2022 | 2021 | Certain Items Impacting Comparability (All dollar amounts below are pre-tax) | |||||||||||||||
NDS | $ | 12,094 | 16,084 | ||||||||||||||
NBS | 33,113 | 30,974 | |||||||||||||||
AGM | 213,429 | 141,609 | •A net gain of $145.7 million related to changes in the fair values of derivative instruments that do not qualify for hedge accounting in the first quarter of 2022 as compared to a net gain of $38.8 million for the same period in 2021 •An increase of $6.5 million in investment interest income in 2022 as compared to 2021 primarily from beneficial interest investments •A decrease of $23.8 million in interest expense during the first quarter of 2021 as a result of the Company reversing a historical accrued interest liability on certain bonds, which liability the Company determined is no longer probable of being required to be paid •The recognition of $17.5 million negative provision for loan losses on AGM’s loan portfolio in the first quarter of 2021, as compared to a negative provision of $0.9 million for the same period in 2022 •A decrease of $8.2 million in net interest income due to the decrease in the average balance of loans and the decrease in fixed rate floor income in the first quarter of 2022 as compared to 2021 •The recognition of $3.0 million on the sale of loans during the first quarter of 2022 | ||||||||||||||
Nelnet Bank | 961 | (1,254) | |||||||||||||||
Corporate | (19,013) | (29,650) | •The recognition of a net loss of $13.1 million for the first quarter of 2022 related to the Company’s investment in ALLO, as compared to a net loss of $22.2 million for the same period in 2021 | ||||||||||||||
Net income before taxes | 240,583 | 157,765 | |||||||||||||||
Income tax expense | (55,697) | (34,861) | |||||||||||||||
Net loss attributable to noncontrolling interests | 1,761 | 694 | |||||||||||||||
Net income | $ | 186,647 | 123,598 |
Three months ended | Nine months ended | Three months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 30, | September 30, | March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | Additional information | 2022 | 2021 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||||
Loan interest | Loan interest | $ | 124,096 | 134,507 | 370,219 | 462,439 | Decrease was due primarily to decreases in the gross yield earned on loans and the average balance of loans, partially offset by an increase in gross fixed rate floor income during the nine months ended September 30, 2021 due to lower interest rates in 2021 as compared to 2020. | Loan interest | $ | 111,377 | 124,117 | Decrease was due primarily to a decrease in the average balance of loans and in gross fixed rate floor income, partially offset by an increase in the gross yield earned on loans in 2022 as compared to 2021. | ||||||||||||||||||||||||||||||||||||||||||||||
Investment interest | Investment interest | 12,558 | 5,238 | 29,122 | 18,379 | Includes income from unrestricted interest-earning deposits and investments and funds in asset-backed securitizations. Increase was due to interest income earned on loan beneficial interest investments, partially offset by a decrease in interest rates in 2021 as compared to 2020. | Investment interest | 13,819 | 4,986 | Includes income from unrestricted interest-earning deposits and investments and funds in asset-backed securitizations. Increase was due to interest income earned on loan beneficial interest investments and an increase in interest rates in 2022 as compared to 2021. | ||||||||||||||||||||||||||||||||||||||||||||||||
Total interest income | Total interest income | 136,654 | 139,745 | 399,341 | 480,818 | Total interest income | 125,196 | 129,103 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 50,176 | 58,423 | 127,939 | 277,788 | Decrease was due primarily to a decrease in cost of funds and a decrease in the average balance of debt outstanding. In addition, during the first quarter of 2021, the Company reduced interest expense by $23.8 million as a result of reversing a historical accrued interest liability on certain bonds, which liability the Company determined is no longer probable of being required to be paid. The liability was initially recorded when certain asset-backed securitizations were acquired in 2011 and 2013. | Interest expense | 48,079 | 27,773 | During the first quarter of 2021, the Company reduced interest expense by $23.8 million as a result of reversing a historical accrued interest liability on certain bonds. which liability the Company determined is no longer probable of being required to be paid. The liability was initially recorded when certain asset-backed securitizations were acquired in 2011 and 2013. Excluding this reduction, interest expense decreased in 2022 as compared to 2021. This decrease was due to a decrease in the average balance of debt outstanding, partially offset by an increase in cost of funds. | ||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | 86,478 | 81,322 | 271,402 | 203,030 | Net interest income | 77,117 | 101,330 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Less provision (negative provision) for loan losses | 5,827 | (5,821) | (10,847) | 73,476 | During the first quarter of 2020, the Company recognized an incremental provision of $63.0 million as a result of an increase in expected defaults due to the COVID-19 pandemic. During the third quarter of 2020, the Company recognized negative provision of $5.8 million due to management's estimate of improved economic conditions. The Company recognized a negative provision of $17.0 million in the first quarter of 2021 due to management's estimate of improved economic conditions as of March 31, 2021 in comparison to management's estimate of economic conditions used to determine the allowance for loan losses as of December 31, 2020. Provision expense recognized for the three months ended September 30, 2021 represents provision primarily for new loans originated and acquired during the period. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Less negative provision for loan losses | Less negative provision for loan losses | (435) | (17,048) | The Company recorded a negative provision for loan losses for its federally insured loan portfolio for the three months ended March 31, 2022 due to the amortization of the portfolio and an increase in expected prepayments as a result of an initiative offered by the Department for FFELP borrowers to consolidate their loans into Federal Direct Loan Program loans with the Department by October 31, 2022 to qualify for loan forgiveness under the Public Service Loan Forgiveness program. This negative provision was partially offset by the Company recording a provision for loan losses for loans acquired and originated during the period. The Company recorded a negative provision for loan losses for the three months ended March 31, 2021 due to management's estimate of certain improved economic conditions as of March 31, 2021 in comparison to management's estimate of economic conditions used to determine the allowance for loan losses as of December 31, 2020. The negative provision recorded during the first quarter of 2021 was partially offset by the Company recording a provision expense for loans originated and acquired during the period as well as recording additional provision expense for its private education loan portfolio as a result of an increase of loans in forbearance. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | Net interest income after provision for loan losses | 80,651 | 87,143 | 282,249 | 129,554 | Net interest income after provision for loan losses | 77,552 | 118,378 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other income/expense: | Other income/expense: | Other income/expense: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LSS revenue | LSS revenue | 112,351 | 113,794 | 335,961 | 337,571 | See LSS operating segment - results of operations. | LSS revenue | 136,368 | 111,517 | See LSS operating segment - results of operations. | ||||||||||||||||||||||||||||||||||||||||||||||||
ETS&PP revenue | ETS&PP revenue | 85,324 | 74,121 | 257,284 | 217,100 | See ETS&PP operating segment - results of operations. | ETS&PP revenue | 112,286 | 95,258 | See ETS&PP operating segment - results of operations. | ||||||||||||||||||||||||||||||||||||||||||||||||
Communications revenue | — | 20,211 | — | 57,390 | As discussed above, on December 21, 2020, the Company deconsolidated ALLO from the Company’s consolidated financial statements. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 11,867 | 1,502 | 30,183 | 69,910 | See table below for the components of "other." | Other | 9,877 | (2,168) | See table below for the components of "other." | ||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | Gain on sale of loans | 3,444 | 14,817 | 18,715 | 33,023 | On May 14, 2021 and September 29, 2021, the Company sold $77.4 million (par value) and $18.4 million (par value) of consumer loans, respectively, to an unrelated third party and recognized a gain of $15.3 million (pre-tax) and $3.2 million (pre-tax), respectively. The Company also sold $124.2 million (par value) and $60.8 million (par value) of consumer loans in January 2020 and July 2020, respectively, and recognized gains of $18.2 million and $14.8 million, respectively. | Gain on sale of loans | 2,989 | — | On January 26, 2022, the Company sold $18.1 million (par value) of consumer loans to an unrelated third party and recognized a gain of $3.0 million. | ||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | (14,159) | — | (12,223) | (34,419) | During the third quarter of 2021, the Company evaluated the use of office space as a large number of employees continue to work from home due to COVID-19. As a result of this evaluation, the Company recorded an impairment charge during the third quarter of 2021 of $14.2 million. The impairment charge related primarily to building and operating lease assets. During the first quarter of 2020, the Company recognized impairments of $26.3 million and $7.8 million related to beneficial interest in consumer loan securitization investments and several venture capital investments, respectively. Such impairments were the result of estimated impacts from the COVID-19 pandemic. During the first quarter of 2021, the Company reversed the remaining allowance of $2.4 million related to the beneficial interest in consumer loan securitizations due to continued improved economic conditions. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | Derivative settlements, net | (2,809) | (4,304) | The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce the economic effect of interest rate volatility. Derivative settlements for each applicable period should be evaluated with the Company's net interest income. See AGM operating segment - results of operations. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | Derivative market value adjustments, net | 145,734 | 38,809 | Includes the realized and unrealized gains and losses that are caused by changes in fair values of derivatives which do not qualify for "hedge treatment" under GAAP. The majority of the derivative market value adjustments related to the changes in fair value of the Company's floor income interest rate swaps. An increase in the forward yield curve during the three months ended March 31, 2022 and 2021 resulted in an increase in the fair value of such swaps. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income/expense | Total other income/expense | 404,445 | 239,112 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services: | Cost of services: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | Cost to provide education technology, services, and payment processing services | 35,545 | 27,052 | Represents primarily direct costs to provide payment processing and instructional services in the ETS&PP operating segment. Increase in 2022 compared to 2021 was primarily due to additional instructional services costs. See ETS&PP operating segment - results of operations. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cost of services | Total cost of services | 35,545 | 27,052 |
Derivative settlements, net | (5,909) | (2,391) | (15,587) | 7,666 | The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce the economic effect of interest rate volatility. Derivative settlements for each applicable period should be evaluated with the Company's net interest income. See AGM operating segment - results of operations. | ||||||||||||||||||||||||
Derivative market value adjustments, net | 7,260 | 3,440 | 44,455 | (21,072) | Includes the realized and unrealized gains and losses that are caused by changes in fair values of derivatives which do not qualify for "hedge treatment" under GAAP. The majority of the derivative market value adjustments during the three and nine months ended September 30, 2021 and 2020 related to the changes in fair value of the Company's floor income interest rate swaps. Such changes reflect that a decrease in the forward yield curve during a reporting period results in a decrease in the fair value of the Company's floor income interest rate swaps, and an increase in the forward yield curve during a reporting period results in an increase in the fair value of such swaps. | ||||||||||||||||||||||||
Total other income/expense | 200,178 | 225,494 | 658,788 | 667,169 | |||||||||||||||||||||||||
Cost of services: | |||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | 31,335 | 25,243 | 80,063 | 63,424 | Represents primarily direct costs to provide payment processing and instructional services in the ETS&PP operating segment. Increase in 2021 compared to 2020 was primarily due to additional instructional services costs. | ||||||||||||||||||||||||
Cost to provide communications services | — | 5,914 | — | 17,240 | As discussed above, on December 21, 2020, the Company deconsolidated ALLO from the Company’s consolidated financial statements. | ||||||||||||||||||||||||
Total cost of services | 31,335 | 31,157 | 80,063 | 80,664 | |||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 128,592 | 126,096 | 363,351 | 365,220 | Increase in the three months ended September 30, 2021 compared to the same period in 2020 was due to an increase in headcount in the (i) LSS operating segment as the Company prepares for the resumption of federal student loan payments and other activities after the CARES Act suspension expires on January 31, 2022; and (ii) ETS&PP operating segment to support the growth of its customer base, the investment in the development of new technologies, and businesses it acquired in December 2020. These increases were partially offset by the deconsolidation of ALLO from the Company's consolidated financial statements. Decrease in the nine months ended September 30, 2021 compared to the same period in 2020 was due to (i) a decrease in contact center operations and support personnel throughout the first half of 2021 in the LSS operating segment as a result of the suspension of federal student loan payments under the CARES Act; and (ii) the deconsolidation of ALLO from the Company's consolidated financial statements. These decreases were partially offset by an increase in expenses in the ETS&PP operating segment due to the items discussed above. | ||||||||||||||||||||||||
Depreciation and amortization | 15,710 | 30,308 | 56,129 | 87,349 | Decrease was primarily due to the deconsolidation of ALLO from the Company's consolidated financial statements on December 21, 2020, resulting in no ALLO depreciation expense for the Company in 2021. | ||||||||||||||||||||||||
Other expenses | 38,324 | 34,744 | 107,611 | 115,184 | Other expenses includes expenses necessary for operations, such as postage and distribution, consulting and professional fees, occupancy, communications, and certain information technology-related costs. Increase in the three months ended September 30, 2021 as compared to the same period in 2020 was due to (i) an increase in expenses in the ETS&PP operating segment due to higher costs for consulting and professional fees due to investments in new technologies, an increase in travel and in-person conferences, and businesses it acquired in December 2020. These items were partially offset by the deconsolidation of ALLO in December 2020. Decrease in the nine months ended September 30, 2021 compared to the same period in 2020 was due to (i) cost savings in the LSS segment from an increase in the adoption of electronic borrower statements and correspondence and a decrease in printing and postage while loan payments are suspended as a result of COVID-19 borrower relief efforts; and (ii) the deconsolidation of ALLO in December 2020. These items were partially offset by an increase in costs in the ETS&PP operating segment due to the items discussed above. | ||||||||||||||||||||||||
Total operating expenses | 182,626 | 191,148 | 527,091 | 567,753 | |||||||||||||||||||||||||
Income before income taxes | 66,868 | 90,332 | 333,883 | 148,306 | |||||||||||||||||||||||||
Income tax expense | 15,649 | 19,156 | 76,747 | 30,286 | The effective tax rate was 22.75% and 21.13% for the three months ended September 30, 2021 and 2020, respectively, and 22.75% and 20.50% for the nine months ended September 30, 2021 and 2020, respectively. The Company currently expects its effective tax rate for 2021 will range between 22 and 24 percent. | ||||||||||||||||||||||||
Net income | 51,219 | 71,176 | 257,136 | 118,020 | |||||||||||||||||||||||||
Net loss (income) attributable to noncontrolling interests | 1,919 | 327 | 3,467 | (568) | |||||||||||||||||||||||||
Net income attributable to Nelnet, Inc. | $ | 53,138 | 71,503 | 260,603 | 117,452 | ||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||
Salaries and benefits | 149,414 | 115,791 | Increase was due to an increase in headcount in the (i) LSS operating segment as the Company prepares for the resumption of federal student loan payments and other activities after the CARES Act suspension expires on August 31, 2022; and (ii) ETS&PP operating segment to support the growth of its customer base and the investment in the development of new technologies. | ||||||||||||||||||||||||||
Depreciation and amortization | 16,956 | 20,184 | Includes depreciation of property and equipment and the amortization of intangibles from prior business acquisitions. Amortization of intangible assets for the three months ended March 31, 2022 and 2021 was $2.5 million and $8.4 million, respectively. The decrease in the amortization of intangibles during 2022 as compared to 2021 was due to the majority of intangible assets recorded from the acquisition of Great Lakes in February 2018 becoming fully amortized as of June 30, 2021. | ||||||||||||||||||||||||||
Other expenses | 39,499 | 36,698 | Other expenses includes expenses necessary for operations, such as postage and distribution, consulting and professional fees, occupancy, communications, and certain information technology-related costs. Increase was due to (i) an increase in expenses in the LSS operating segment due to costs associated with Nelnet Renewable Energy activities and technology costs associated with the growth of borrowers under the government servicing contracts; and (ii) an increase in expenses in the ETS&PP operating segment due to higher costs for consulting, professional fees, and technology services resulting from investments in new technologies. | ||||||||||||||||||||||||||
Total operating expenses | 205,869 | 172,673 | |||||||||||||||||||||||||||
Income before income taxes | 240,583 | 157,765 | |||||||||||||||||||||||||||
Income tax expense | 55,697 | 34,861 | The effective tax rate was 23% and 22% for the three months ended March 31, 2022 and 2021, respectively. The Company currently expects its effective tax rate for 2022 will range between 22 and 24 percent. | ||||||||||||||||||||||||||
Net income | 184,886 | 122,904 | |||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | 1,761 | 694 | Amounts for noncontrolling interests reflect the net income/loss attributable to the holders of minority membership interests in WRCM and multiple solar entities. | ||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc. | $ | 186,647 | 123,598 | ||||||||||||||||||||||||||
Three months ended September 30, | Nine months ended September 30, | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Income/gains from investments, net (a) | Income/gains from investments, net (a) | $ | 16,050 | 1,687 | 40,141 | 51,772 | Income/gains from investments, net (a) | $ | 11,856 | 8,498 | ||||||||||||||||||||||||||||||||||||
Investment advisory services (b) | 2,400 | 4,463 | 6,242 | 8,187 | ||||||||||||||||||||||||||||||||||||||||||
Borrower late fee income (b) | Borrower late fee income (b) | 2,431 | 442 | |||||||||||||||||||||||||||||||||||||||||||
ALLO preferred return (c) | ALLO preferred return (c) | 2,043 | — | 6,384 | — | ALLO preferred return (c) | 2,117 | 2,321 | ||||||||||||||||||||||||||||||||||||||
Management fee revenue (d) | 727 | 2,353 | 2,541 | 6,897 | ||||||||||||||||||||||||||||||||||||||||||
Borrower late fee income (e) | 514 | 871 | 1,698 | 4,377 | ||||||||||||||||||||||||||||||||||||||||||
Investment advisory services (d) | Investment advisory services (d) | 1,282 | 2,697 | |||||||||||||||||||||||||||||||||||||||||||
Negative provision for beneficial interests investment (e) | Negative provision for beneficial interests investment (e) | — | 2,436 | |||||||||||||||||||||||||||||||||||||||||||
Loss from ALLO voting membership interest investment (f) | Loss from ALLO voting membership interest investment (f) | (10,495) | — | (31,620) | — | Loss from ALLO voting membership interest investment (f) | (13,130) | (22,219) | ||||||||||||||||||||||||||||||||||||||
Loss from solar investments (g) | Loss from solar investments (g) | (3,393) | (11,839) | (7,375) | (12,638) | Loss from solar investments (g) | (1,030) | (1,679) | ||||||||||||||||||||||||||||||||||||||
(Loss) gain on debt repurchased | (3,268) | 105 | (3,964) | 508 | ||||||||||||||||||||||||||||||||||||||||||
Other | Other | 7,289 | 3,862 | 16,136 | 10,807 | Other | 6,351 | 5,336 | ||||||||||||||||||||||||||||||||||||||
Other income | Other income | $ | 11,867 | 1,502 | 30,183 | 69,910 | Other income | $ | 9,877 | (2,168) |
As of | |||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2019 | March 31, 2020 | June 30, 2020 | September 30, 2020 | December 31, 2020 | March 31, 2021 | June 30, 2021 | September 30, 2021 | ||||||||||||||||||||||||||||||||||||||||
Servicing volume (dollars in millions): | |||||||||||||||||||||||||||||||||||||||||||||||
Nelnet Servicing: | |||||||||||||||||||||||||||||||||||||||||||||||
Government | $ | 183,790 | 185,477 | 185,315 | 189,932 | 191,678 | 195,875 | 195,030 | 198,743 | ||||||||||||||||||||||||||||||||||||||
FFELP | 33,185 | 32,326 | 31,392 | 31,122 | 30,763 | 30,084 | 29,361 | 28,244 | |||||||||||||||||||||||||||||||||||||||
Private and consumer | 16,033 | 16,364 | 16,223 | 16,267 | 16,226 | 21,397 | 24,758 | 24,229 | |||||||||||||||||||||||||||||||||||||||
Great Lakes: | |||||||||||||||||||||||||||||||||||||||||||||||
Government | 239,980 | 243,205 | 243,609 | 249,723 | 251,570 | 257,806 | 257,420 | 262,311 | |||||||||||||||||||||||||||||||||||||||
Total | $ | 472,988 | 477,372 | 476,539 | 487,044 | 490,237 | 505,162 | 506,569 | 513,527 | ||||||||||||||||||||||||||||||||||||||
Number of servicing borrowers: | |||||||||||||||||||||||||||||||||||||||||||||||
Nelnet Servicing: | |||||||||||||||||||||||||||||||||||||||||||||||
Government | 5,574,001 | 5,498,872 | 5,496,662 | 5,604,685 | 5,645,946 | 5,664,094 | 5,636,781 | 5,791,521 | |||||||||||||||||||||||||||||||||||||||
FFELP | 1,478,703 | 1,423,286 | 1,370,007 | 1,332,908 | 1,300,677 | 1,233,461 | 1,198,863 | 1,150,214 | |||||||||||||||||||||||||||||||||||||||
Private and consumer | 682,836 | 670,702 | 653,281 | 649,258 | 636,136 | 882,477 | 1,039,537 | 1,097,252 | |||||||||||||||||||||||||||||||||||||||
Great Lakes: | |||||||||||||||||||||||||||||||||||||||||||||||
Government | 7,396,657 | 7,344,509 | 7,346,691 | 7,542,679 | 7,605,984 | 7,637,270 | 7,616,270 | 7,778,535 | |||||||||||||||||||||||||||||||||||||||
Total | 15,132,197 | 14,937,369 | 14,866,641 | 15,129,530 | 15,188,743 | 15,417,302 | 15,491,451 | 15,817,522 | |||||||||||||||||||||||||||||||||||||||
Number of remote hosted borrowers: | 6,433,324 | 6,354,158 | 6,264,559 | 6,251,598 | 6,555,841 | 4,307,342 | 4,338,570 | 4,548,541 |
As of | |||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | March 31, 2021 | June 30, 2021 | September 30, 2021 | December 31, 2021 | March 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||
Servicing volume (dollars in millions): | |||||||||||||||||||||||||||||||||||||||||||||||
Nelnet Servicing: | |||||||||||||||||||||||||||||||||||||||||||||||
Government | $ | 191,678 | 195,875 | 195,030 | 198,743 | 215,797 | 243,011 | ||||||||||||||||||||||||||||||||||||||||
FFELP | 30,763 | 30,084 | 29,361 | 28,244 | 26,916 | 25,646 | |||||||||||||||||||||||||||||||||||||||||
Private and consumer | 16,226 | 21,397 | 24,758 | 24,229 | 23,702 | 23,433 | |||||||||||||||||||||||||||||||||||||||||
Great Lakes: | |||||||||||||||||||||||||||||||||||||||||||||||
Government | 251,570 | 257,806 | 257,420 | 262,311 | 262,605 | 264,642 | |||||||||||||||||||||||||||||||||||||||||
Total | $ | 490,237 | 505,162 | 506,569 | 513,527 | 529,020 | 556,732 | ||||||||||||||||||||||||||||||||||||||||
Number of servicing borrowers: | |||||||||||||||||||||||||||||||||||||||||||||||
Nelnet Servicing: | |||||||||||||||||||||||||||||||||||||||||||||||
Government | 5,645,946 | 5,664,094 | 5,636,781 | 5,791,521 | 6,399,414 | 6,978,548 | |||||||||||||||||||||||||||||||||||||||||
FFELP | 1,300,677 | 1,233,461 | 1,198,863 | 1,150,214 | 1,092,066 | 1,034,913 | |||||||||||||||||||||||||||||||||||||||||
Private and consumer | 636,136 | 882,477 | 1,039,537 | 1,097,252 | 1,065,439 | 1,030,863 | |||||||||||||||||||||||||||||||||||||||||
Great Lakes: | |||||||||||||||||||||||||||||||||||||||||||||||
Government | 7,605,984 | 7,637,270 | 7,616,270 | 7,778,535 | 7,797,106 | 7,749,312 | |||||||||||||||||||||||||||||||||||||||||
Total | 15,188,743 | 15,417,302 | 15,491,451 | 15,817,522 | 16,354,025 | 16,793,636 | |||||||||||||||||||||||||||||||||||||||||
Number of remote hosted borrowers: | 6,555,841 | 4,307,342 | 4,338,570 | 4,548,541 | 4,799,368 | 5,487,943 |
Three months ended September 30, | Nine months ended September 30, | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | Additional information | 2022 | 2021 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | $ | 7 | 10 | 25 | 306 | Decrease was due to lower interest rates in 2021 as compared to 2020. | Net interest income | $ | 43 | 11 | |||||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | Loan servicing and systems revenue | 112,351 | 113,794 | 335,961 | 337,571 | See table below for additional information. | Loan servicing and systems revenue | 136,368 | 111,517 | See table below for additional information. | ||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment servicing revenue | Intersegment servicing revenue | 8,621 | 8,287 | 25,369 | 27,878 | Represents revenue earned by the LSS operating segment from servicing loans for the AGM and Nelnet Bank operating segments. Increase in the three months ended September 20, 2021 as compared to the same period in 2020 was due to an increase in private loan servicing revenue from AGM related to AGM's partial ownership of the former Wells Fargo private education loan portfolio, partially offset by the expected amortization of AGM's FFELP portfolio. Decrease in the nine months ended September 30, 2021 compared to the same period in 2020 was due to the impact of borrower relief policies implemented in March 2020 in response to the COVID-19 pandemic and the expected amortization of AGM's FFELP portfolio. FFELP intersegment servicing revenue will continue to decrease as AGM's FFELP portfolio pays off. | Intersegment servicing revenue | 8,480 | 8,268 | Represents revenue earned by the LSS operating segment from servicing loans for the AGM and Nelnet Bank operating segments. Increase was due to ending COVID-19 pandemic borrower relief policies which increased servicing activities performed for AGM in the first quarter of 2022 as compared to the same period in 2021. Increase was partially offset by the expected amortization of AGM's FFELP portfolio. FFELP intersegment servicing revenue will continue to decrease as AGM's FFELP portfolio pays off. | ||||||||||||||||||||||||||||||||||||||||||||||||
Other income | Other income | 727 | 2,353 | 2,541 | 6,897 | Represents revenue earned from providing administrative support and marketing services, which primarily was to Great Lakes’ former parent company under a contract that expired in January 2021. | Other income | 740 | 1,113 | Represents revenue earned from providing administrative support and marketing services, which primarily was to Great Lakes’ former parent company under a contract that expired on January 31, 2021. | ||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense | (13,243) | — | (13,243) | — | During the third quarter of 2021, the Company evaluated use of office space as a large number of employees continue to work from home due to COVID-19. As a result of this evaluation, the Company recorded a non-cash impairment charge during the third quarter of 2021. The impairment charge recognized by the LSS operating segment related primarily to building and building improvement assets. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income | Total other income | 108,456 | 124,434 | 350,628 | 372,346 | Total other income | 145,588 | 120,898 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 91,972 | 66,458 | Increase in 2022 compared to 2021 was due to the Company hiring contact center operations and support associates to prepare for the resumption of federal student loan payments and other activities after the CARES Act suspension. The CARES Act suspension was originally expected to expire on January 31, 2022 and has been extended two additional times to May 1, 2022 and again to August 31, 2022. The Company currently expects salaries and benefits to continue to be higher throughout 2022 as compared to the same periods in 2021 as it continues to stand ready for the suspension provisions of the CARES Act to expire on August 31, 2022. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 4,954 | 8,192 | Includes amortization of intangibles from the Great Lakes acquisition in February 2018 and depreciation on property and equipment. Amortization of intangible assets for the three months ended March 31, 2022 and 2021 was $0.4 million and $5.5 million, respectively. The majority of the Great Lakes intangible assets became fully amortized as of June 30, 2021. Excluding amortization of intangible assets, the increase in 2022 compared to 2021 was due to scaling of the Nelnet servicing platform for the PHEAA loan volume transferred to Nelnet's platform. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 16,213 | 13,285 | Increase in 2022 compared to 2021 was due to costs associated with Nelnet Renewable Energy activities and technology costs associated with the growth of borrowers under the government servicing contracts. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses | Intersegment expenses | 20,398 | 16,890 | Intersegment expenses represent costs for certain corporate activities and services that are allocated to each operating segment based on estimated use of such activities and services. Increase in 2022 as compared to 2021 was due to the Company hiring contact center operations and support associates throughout 2021 and 2022 in preparation for the federal student loan payment pause under the CARES Act to expire. The Company currently expects intersegment expenses to be higher throughout 2022 as compared to the same periods in 2021 as it continues to stand ready for the payment pause to expire on August 31, 2022. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 133,537 | 104,825 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 12,094 | 16,084 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | (2,903) | (3,860) | Represents income tax expense at an effective tax rate of 24%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 9,191 | 12,224 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Before tax operating margin | Before tax operating margin | 8.3 | % | 13.3 | % | Before tax operating margin is a measure of before tax operating profitability as a percentage of revenue, and for the LSS segment is calculated as income before income taxes divided by the total of loan servicing and systems revenue, intersegment servicing revenue, and other income revenue. The Company uses this metric to monitor and assess the segment’s performance, manage operating costs, identify and evaluate business trends affecting the segment, and make strategic decisions, and believes that it provides additional information to facilitate an understanding of the operating performance of the segment and provides a meaningful comparison of the results of operations between periods. Before tax operating margin decreased in 2022 as compared to 2021 due to increased operating expenses as the Company prepared for a January 31, 2022 expiration of the federal student loan payment pause under the CARES Act, which was extended to May 1, 2022 (and then again to August 31, 2022). |
Salaries and benefits | 75,305 | 72,912 | 210,151 | 211,806 | Decrease in the nine months ended September 30, 2021 compared to the same period in 2020 was due to a decrease in contact center operations and support personnel as a result of the suspension of federal student loan payments beginning in March 2020 under the CARES Act. Increase in the three months ended September 30, 2021 compared to the same period in 2020 was due to the Company hiring contact center operations and support associates to prepare for the resumption of federal student loan payments and other activities after the CARES Act suspension expires on January 31, 2022. The Company currently expects salaries and benefits to continue to increase as it prepares for the provisions of the CARES Act to expire. | ||||||||||||||||||||||||
Depreciation and amortization | 4,245 | 9,951 | 20,411 | 27,941 | Includes depreciation on property and equipment and amortization of intangibles from the Great Lakes acquisition in February 2018. Amortization of intangible assets for the three months ended September 30, 2021 and 2020 was $0.7 million and $5.6 million, respectively, and for the nine months ended September 30, 2021 and 2020 was $11.6 million and $15.4 million, respectively. The majority of the Great Lakes intangible assets became fully amortized at June 30, 2021. Excluding amortization of intangible assets, the decrease in 2021 compared to 2020 was due to certain purchases to integrate Great Lakes and expand servicing capacity becoming fully depreciated. | ||||||||||||||||||||||||
Other expenses | 12,738 | 12,407 | 39,296 | 43,277 | Decrease in the nine months ended September 30, 2021 compared to the same period in 2020 was due to cost savings as a result of the impact of the COVID-19 pandemic and the resulting CARES Act (which became effective March 13, 2020), primarily through a significant reduction of borrower statement printing and postage costs while student loan payments are suspended. The Company currently expects these costs will increase when the provisions of the CARES Act expire, scheduled for January 31, 2022. Decrease was also due to cost savings from an increase in the adoption of electronic borrower statements and correspondence. | ||||||||||||||||||||||||
Intersegment expenses | 19,217 | 15,834 | 52,241 | 48,069 | Intersegment expenses represent costs for certain corporate activities and services that are allocated to each operating segment based on estimated use of such activities and services. Increase in 2021 was due to the Company hiring contact center operations and support associates during the third quarter of 2021 in preparation for the provisions of the CARES Act to expire January 31, 2022. The Company currently expects intersegment expenses to continue to increase as it prepares for the provisions of the CARES Act to expire. | ||||||||||||||||||||||||
Total operating expenses | 111,505 | 111,104 | 322,099 | 331,093 | |||||||||||||||||||||||||
(Loss) income before income taxes | (3,042) | 13,340 | 28,554 | 41,559 | |||||||||||||||||||||||||
Income tax benefit (expense) | 730 | (3,201) | (6,853) | (9,974) | Represents income tax expense at an effective tax rate of 24%. | ||||||||||||||||||||||||
Net (loss) income | $ | (2,312) | 10,139 | 21,701 | 31,585 | ||||||||||||||||||||||||
GAAP before tax operating margin | (2.5) | % | 10.7 | % | 7.9 | % | 11.2 | % | Before tax operating margin, excluding impairment expense, is a non-GAAP measure of before tax operating profitability as a percentage of revenue, and for the LSS segment is calculated as income before income taxes (excluding impairment expense) divided by the total of loan servicing and systems revenue, intersegment servicing revenue, and other income revenue. The Company uses this metric to monitor and assess the segment’s performance, manage operating costs, identify and evaluate business trends affecting the segment, and make strategic decisions, and believes that it provides additional information to facilitate an understanding of the operating performance of the segment and provides a meaningful comparison of the results of operations between periods. Before tax operating margin, excluding impairment expense, decreased for the three months ended September 30, 2021 as compared to the same period in 2020 due to increased operating expenses as the Company prepares for the provisions of the CARES Act to expire on January 31, 2022. Before tax operating margin, excluding impairment expense, increased for the nine months ended September 30, 2021 as compared to the same period in 2020 due to operating expenses being lower throughout the first half of 2021 as a result of the suspension of federal student loan payments under the CARES Act as discussed above. | ||||||||||||||||||||
Impairment expense | 10.9 | % | — | 3.6 | % | — | |||||||||||||||||||||||
Non-GAAP before tax operating margin, excluding impairment expense | 8.4 | % | 10.7 | % | 11.5 | % | 11.2 | % |
Three months ended September 30, | Nine months ended September 30, | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | Additional information | 2022 | 2021 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||||
Government servicing - Nelnet | Government servicing - Nelnet | $ | 37,595 | 36,295 | 107,843 | 112,305 | Represents revenue from Nelnet Servicing's Department servicing contract. Decrease in the nine months ended September 30, 2021 compared to the same period in 2020 was due to a decrease in revenue from the administration of the Total and Permanent Disability (TPD) Discharge program, decrease in fees earned from the Department for originating consolidation loans, decrease in revenue earned per borrower as a result of the suspension of federal student loan payments under the CARES Act, and further decrease in revenue earned per borrower (from the monthly rate of $2.19 per borrower to $2.05 per borrower) as a result of the Department issuing a change request effective October 1, 2020. These items were partially offset by an increase in the number of borrowers serviced. Increase in revenue for the three months ended September 30, 2021 compared to the same period in 2020 was a result of an increase in the number of borrowers serviced, partially offset by a decrease in revenue earned per borrower (from the monthly rate of $2.19 per borrower to $2.05 per borrower) as a result of the Department issuing a change request effective October 1, 2020. | Government servicing - Nelnet | $ | 61,049 | 34,872 | Represents revenue from Nelnet Servicing's Department servicing contract. Increase in 2022 compared to 2021 was due to (i) an increase in the number of borrowers serviced, including PHEAA borrowers transferred to Nelnet Servicing’s platform; (ii) a per borrower rate increase beginning September 1, 2021 to reflect the increase in the cost of labor (Economic Cost Index) per the provisions of the contract; (iii) the recognition of $6.7 million of revenue in the first quarter of 2022 for incremental work related primarily to CARES Act forbearance exit outreach activities to borrowers; and (iv) the recognition of $10.5 million of revenue in the first quarter of 2022 related to the discharge of borrowers under the Total and Permanent Disability ("TPD") discharge program. Nelnet Servicing earns revenue per each borrower that satisfies the requirements for their loan to be discharged under the TPD discharge program. The revenue earned by Nelnet Servicing for the discharge of TPD borrowers and CARES Act forbearance exit outreach is expected to be minimal for the remainder of 2022. | ||||||||||||||||||||||||||||||||||||||||||||||
Government servicing - Great Lakes | Government servicing - Great Lakes | 46,489 | 45,350 | 133,654 | 137,010 | Represents revenue from Great Lakes' Department servicing contract. Changes among the current and comparable prior periods were due to the same factors as discussed immediately above for Nelnet Servicing, except that Great Lakes does not administer the TPD discharge program. | Government servicing - Great Lakes | 48,076 | 43,302 | Represents revenue from the Great Lakes' Department servicing contract. Increase in 2022 compared to 2021 was due to (i) an increase in the number of borrowers serviced; (ii) a per borrower rate increase beginning September 1, 2021 to reflect the increase in the cost of labor (Economic Cost Index) per the provisions of the contract; and (iii) the recognition of $2.4 million of revenue in the first quarter of 2022 for incremental work related to CARES Act forbearance exit outreach activities to borrowers. The revenue earned by Great Lakes for CARES Act forbearance exit outreach is expected to be minimal for the remainder of 2022. | ||||||||||||||||||||||||||||||||||||||||||||||||
Private education and consumer loan servicing | Private education and consumer loan servicing | 13,198 | 7,928 | 34,563 | 24,733 | Increase for the three and nine months ended September 30, 2021 compared to the same periods in 2020 was due to the addition of the former Wells Fargo private education loan borrowers converted to the Company's servicing platform during March and the second quarter of 2021. Excluding revenue earned on the former Wells Fargo portfolio, revenue for the three and nine months ended September 30, 2021 decreased compared to the comparable periods in 2020. The decrease in revenue was due to a decrease in the number of legacy borrowers serviced, a decrease in origination fee revenue, and the impact of borrower relief policies implemented by private lenders in response to the COVID-19 pandemic. | Private education and consumer loan servicing | 12,873 | 8,548 | Increase in 2022 compared to 2021 was due to the addition of the former Wells Fargo private education loan borrowers converted to the Company's servicing platform during March and the second quarter of 2021. Excluding revenue earned on the former Wells Fargo portfolio, revenue for 2022 decreased compared to 2021. The decrease in revenue was due to a decrease in client requested enhanced delinquency services. | ||||||||||||||||||||||||||||||||||||||||||||||||
FFELP servicing | FFELP servicing | 4,557 | 4,912 | 13,930 | 15,443 | Decrease in 2021 compared to 2020 was due to a decrease in the number of borrowers serviced. In addition, decrease during the nine months ended September 30, 2021 as compared to the same period in 2020 was due to the impact of borrower relief policies implemented by lenders in response to the COVID-19 pandemic. Over time, FFELP servicing revenue will continue to decrease as third-party customers' FFELP portfolios pay off. | FFELP servicing | 4,248 | 4,670 | Decrease in 2022 compared to 2021 was due to a decrease in the number of borrowers serviced. Over time, FFELP servicing revenue will continue to decrease as third-party customers' FFELP portfolios pay off. | ||||||||||||||||||||||||||||||||||||||||||||||||
Software services | Software services | 6,952 | 10,426 | 22,779 | 32,395 | Decrease in 2021 compared to 2020 was due to many of the services provided under the Company's remote hosted servicing and system support contract with Great Lakes' former parent, representing 2.3 million borrowers, expiring in January 2021. This decrease in revenue was partially offset by an increase in the number of remote hosted servicing borrowers in 2021 as compared to 2020. | Software services | 7,400 | 8,454 | Decrease in 2022 compared to 2021 was due to many of the services provided under the Company's remote hosted servicing and system support contract with Great Lakes' former parent, representing 2.3 million borrowers, expiring on January 31, 2021. This decrease in revenue was partially offset by an increase in 2022 as compared to 2021 in the number of remote hosted servicing borrowers from the Company's remaining customers. | ||||||||||||||||||||||||||||||||||||||||||||||||
Outsourced services | 3,560 | 8,883 | 23,192 | 15,685 | The majority of this revenue relates to providing contact center and back office operational outsourcing services. During 2020, the Company began providing services to state agencies to process unemployment claims and conduct certain health tracing support activities (including vaccination registration support). Outsourcing activities provided to state agencies are performed under shorter-term contracts. Revenue from providing these services to state agencies was $1.3 million and $6.6 million for the three months ended September 30, 2021 and 2020, respectively, and $16.3 million and $9.7 million during the nine months ended September 30, 2021 and 2020, respectively. Outsourcing activities provided to state agencies decreased during the third quarter of 2021 as the needs for such services have decreased from prior periods. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Outsourced services and other | Outsourced services and other | 2,722 | 11,671 | The majority of this revenue relates to providing contact center and back office operational outsourcing services, including services to state agencies to assist with COVID-19 specific activities that have been performed under shorter-term contracts. Revenue from providing COVID-19 related services to state agencies was $0.3 million and $9.7 million for the three months ended March 31, 2022 and 2021, respectively. Outsourcing activities provided for these activities decreased in 2022 as the needs for such services have decreased from prior periods. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | Loan servicing and systems revenue | $ | 112,351 | 113,794 | 335,961 | 337,571 | Loan servicing and systems revenue | $ | 136,368 | 111,517 |
Three months ended September 30, | Nine months ended September 30, | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | Additional information | 2022 | 2021 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | $ | 344 | 351 | 818 | 2,723 | Represents interest income on tuition funds held in custody for schools. Decrease was due to a significant decrease in interest rates in March 2020. If interest rates remain at current levels, the Company anticipates this segment will earn minimal interest income in future periods. | Net interest income | $ | 339 | 263 | Represents interest income on tuition funds held in custody for schools. | ||||||||||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | 85,324 | 74,121 | 257,284 | 217,100 | See table below for additional information. | Education technology, services, and payment processing revenue | 112,286 | 95,258 | See table below for additional information. | ||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 3 | 3 | 9 | 17 | Intersegment revenue | 3 | 3 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Other income | 13 | 373 | 13 | 373 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income | Total other income | 85,340 | 74,497 | 257,306 | 217,490 | Total other income | 112,289 | 95,261 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | 31,335 | 25,243 | 80,063 | 63,424 | See table below for additional information. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services | Cost of services | 35,545 | 27,052 | See table below for additional information. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 29,119 | 25,460 | 82,154 | 73,678 | Increase in 2021 compared to 2020 was due to an increase in headcount to support the growth of the customer base, the investment in the development of new technologies, and the acquisitions of HigherSchool and CD2. | Salaries and benefits | 31,286 | 25,941 | Increase in 2022 compared to 2021 was due to an increase in headcount to support the growth of the customer base, and the investment in the development of new technologies. | ||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 2,762 | 2,366 | 8,789 | 7,115 | Represents primarily amortization of intangible assets from prior business acquisitions. Amortization of intangible assets related to business acquisitions was $2.6 million and $2.4 million for the three months ended September 30, 2021 and 2020, respectively, and $8.3 million and $7.1 million for the nine months ended September 30, 2021 and 2020, respectively. The increase in 2021 compared to 2020 was due to the acquisitions of HigherSchool and CD2. | Depreciation and amortization | 2,315 | 3,071 | Represents primarily amortization of intangible assets from prior business acquisitions. Amortization of intangible assets related to business acquisitions was $2.1 million and $2.9 million for the three months ended March 31, 2022 and 2021, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 4,804 | 3,126 | 14,063 | 11,544 | Increase was due to higher costs for consulting and professional fees due to investments in new technologies, the acquisitions of HigherSchool and CD2, and an increase in travel and in-person conferences during the third quarter of 2021. | Other expenses | 5,764 | 4,822 | Increase was due to higher costs for consulting, professional fees, and technology services resulting from investments in new technologies. | ||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | Intersegment expenses, net | 3,672 | 3,610 | 10,856 | 10,366 | Intersegment expenses represent costs for certain corporate activities and services that are allocated to each operating segment based on estimated use of such activities and services. | Intersegment expenses, net | 4,605 | 3,664 | Intersegment expenses represent costs for certain corporate activities and services that are allocated to each operating segment based on estimated use of such activities and services. | ||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 40,357 | 34,562 | 115,862 | 102,703 | Total operating expenses | 43,970 | 37,498 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 13,992 | 15,043 | 62,199 | 54,086 | Income before income taxes | 33,113 | 30,974 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | (3,358) | (3,610) | (14,928) | (12,981) | Represents income tax expense at an effective tax rate of 24%. | Income tax expense | (7,947) | (7,434) | Represents income tax expense at an effective tax rate of 24%. | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 10,634 | 11,433 | 47,271 | 41,105 | Net income | $ | 25,166 | 23,540 |
Three months ended September 30, | Nine months ended September 30, | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | Additional information | 2022 | 2021 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||||
Tuition payment plan services | Tuition payment plan services | $ | 23,618 | 22,477 | 79,706 | 77,011 | Revenue increased for the three and nine months ended September 30, 2021 as compared to the same periods in 2020 as a result of a higher number of payment plans in the K-12 market, partially offset due to enrollment for institutions of higher education decreasing as a result of COVID-19. | Tuition payment plan services | $ | 30,716 | 29,550 | Revenue increased in 2022 as compared to 2021 as a result of a higher number of payment plans in the K-12 market, partially offset by lower revenues for institutions of higher education as a result of lower enrollment trends. | ||||||||||||||||||||||||||||||||||||||||||||||
Payment processing | Payment processing | 39,852 | 35,420 | 97,898 | 88,329 | Payment volumes in 2021 increased as compared to 2020 in both the K-12 and higher education markets. The increase in payments volume is driven by both new customers and an increase in volume from existing customers. | Payment processing | 38,071 | 33,038 | Payment volumes in 2022 increased as compared to 2021 in both the K-12 and higher education markets. The increase in payments volume is driven by both new customers and an increase in volume from existing customers. | ||||||||||||||||||||||||||||||||||||||||||||||||
Education technology and services | Education technology and services | 21,098 | 15,840 | 78,153 | 50,820 | Increase in 2021 compared to 2020 was primarily the result of the HigherSchool and CD2 acquisitions. Additionally, revenues from the Company’s school information system software, application and enrollment products, grant and aid assessments, and FACTS Education Solutions instructional and professional development services increased compared to the prior year. | Education technology and services | 43,251 | 32,527 | Increase in 2022 compared to 2021 was due to an increase in revenues from the Company’s school information system software, enrollment and communication products, and FACTS Education Solutions instructional and professional development services. FACTS Education Solutions instructional services revenue was the largest component of this increase driven by the Emergency Assistance to Non-Public Schools (“EANS”) program which provides funds to non-public schools to address the impact the COVID-19 pandemic has had or continues to have on school students and teachers. | ||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 756 | 384 | 1,527 | 940 | Other | 248 | 143 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | 85,324 | 74,121 | 257,284 | 217,100 | Education technology, services, and payment processing revenue | 112,286 | 95,258 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | 31,335 | 25,243 | 80,063 | 63,424 | Costs primarily relate to payment processing revenue and such costs decrease/increase in relationship to payment volumes. Costs to provide instructional services are also included as a component of this expense and were a driver in the increase in 2021 compared to 2020 due to the acquisition of HigherSchool and growth in the FACTS Education Solutions division. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services | Cost of services | 35,545 | 27,052 | Costs primarily relate to payment processing revenue and such costs decrease/increase in relationship to payment volumes. Costs to provide instructional services are also included as a component of this expense and were the primary driver in the increase in 2022 compared to 2021 due to the increase in instructional services resulting from the EANS program as noted for Education technology and services revenue above. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenue | Net revenue | $ | 53,989 | 48,878 | 177,221 | 153,676 | Net revenue | $ | 76,741 | 68,206 | ||||||||||||||||||||||||||||||||||||||||||||||||
Before tax operating margin | Before tax operating margin | 25.9 | % | 30.8 | % | 35.1% | 35.2% | Before tax operating margin is a measure of before tax operating profitability as a percentage of revenue, and for the ETS&PP segment is calculated as income before income taxes divided by net revenue. The Company uses this metric to monitor and assess the segment’s performance, manage operating costs, identify and evaluate business trends affecting the segment, and make strategic decisions, and believes that it facilitates an understanding of the operating performance of the segment and provides a meaningful comparison of the results of operations between periods. The decrease in margin for the three months ended September 30, 2021 as compared to the same period in 2020 was due to investment in the development of new technologies and increase in travel and in-person conferences in 2021. | Before tax operating margin | 43.1 | % | 45.4 | % | Before tax operating margin is a measure of before tax operating profitability as a percentage of revenue, and for the ETS&PP segment is calculated as income before income taxes divided by net revenue. The Company uses this metric to monitor and assess the segment’s performance, manage operating costs, identify and evaluate business trends affecting the segment, and make strategic decisions, and believes that it facilitates an understanding of the operating performance of the segment and provides a meaningful comparison of the results of operations between periods. The decrease in margin for 2022 as compared to 2021 was due to investments in (i) the development of new services and technologies; and (ii) superior customer experiences to align with the Company’s strategies to grow, retain, and diversify revenues. The Company currently anticipates before tax operating margin will be lower throughout 2022 as compared to the same periods in 2021 as the Company continues to invest in these areas. |
Three months ended September 30, | Nine months ended September 30, | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 19,331,725 | 19,830,397 | 19,559,108 | 20,798,719 | Beginning balance | $ | 17,441,790 | 19,559,108 | ||||||||||||||||||||||||||||||||||||
Loan acquisitions: | Loan acquisitions: | Loan acquisitions: | ||||||||||||||||||||||||||||||||||||||||||||
Federally insured student loans | Federally insured student loans | 70,844 | 137,714 | 833,313 | 947,288 | Federally insured student loans | 10,202 | 64,731 | ||||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 1,680 | — | 88,131 | 80,908 | Private education loans | 1,026 | 23,038 | ||||||||||||||||||||||||||||||||||||||
Consumer loans | Consumer loans | 20,939 | 26,446 | 61,319 | 112,257 | Consumer loans | 18,522 | 19,456 | ||||||||||||||||||||||||||||||||||||||
Total loan acquisitions | Total loan acquisitions | 93,463 | 164,160 | 982,763 | 1,140,453 | Total loan acquisitions | 29,750 | 107,225 | ||||||||||||||||||||||||||||||||||||||
Repayments, claims, capitalized interest, participations, and other, net | Repayments, claims, capitalized interest, participations, and other, net | (818,554) | (277,949) | (1,415,249) | (1,715,214) | Repayments, claims, capitalized interest, participations, and other, net | (447,140) | (406,565) | ||||||||||||||||||||||||||||||||||||||
Consolidation loans lost to external parties | (145,270) | (136,263) | (587,841) | (519,364) | ||||||||||||||||||||||||||||||||||||||||||
Loans lost to external parties | Loans lost to external parties | (387,648) | (229,545) | |||||||||||||||||||||||||||||||||||||||||||
Consumer loans sold | Consumer loans sold | (18,390) | (60,779) | (95,807) | (185,028) | Consumer loans sold | (18,125) | — | ||||||||||||||||||||||||||||||||||||||
Other loans sold | (5,280) | — | (5,280) | — | ||||||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | $ | 18,437,694 | 19,519,566 | 18,437,694 | 19,519,566 | Ending balance | $ | 16,618,627 | 19,030,223 |
Three months ended September 30, | Nine months ended September 30, | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Variable loan yield, gross | Variable loan yield, gross | 2.61 | % | 2.77 | % | 2.65 | % | 3.29 | % | Variable loan yield, gross | 2.75 | % | 2.71 | % | ||||||||||||||||||||||||||||||||
Consolidation rebate fees | Consolidation rebate fees | (0.85) | (0.84) | (0.84) | (0.84) | Consolidation rebate fees | (0.85) | (0.84) | ||||||||||||||||||||||||||||||||||||||
Discount accretion, net of premium and deferred origination costs amortization | Discount accretion, net of premium and deferred origination costs amortization | 0.03 | 0.01 | 0.01 | 0.02 | Discount accretion, net of premium and deferred origination costs amortization | 0.03 | 0.00 | ||||||||||||||||||||||||||||||||||||||
Variable loan yield, net | Variable loan yield, net | 1.79 | 1.94 | 1.82 | 2.47 | Variable loan yield, net | 1.93 | 1.87 | ||||||||||||||||||||||||||||||||||||||
Loan cost of funds - interest expense (a) (b) | (0.99) | (1.16) | (1.03) | (1.82) | ||||||||||||||||||||||||||||||||||||||||||
Loan cost of funds - derivative settlements (c) (d) | (0.02) | 0.02 | (0.01) | 0.07 | ||||||||||||||||||||||||||||||||||||||||||
Loan cost of funds - interest expense (a) | Loan cost of funds - interest expense (a) | (1.09) | (1.07) | |||||||||||||||||||||||||||||||||||||||||||
Loan cost of funds - derivative settlements (b) (c) | Loan cost of funds - derivative settlements (b) (c) | 0.01 | (0.00 | ) | ||||||||||||||||||||||||||||||||||||||||||
Variable loan spread | Variable loan spread | 0.78 | 0.80 | 0.78 | 0.72 | Variable loan spread | 0.85 | 0.80 | ||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, gross | Fixed rate floor income, gross | 0.75 | 0.73 | 0.75 | 0.58 | Fixed rate floor income, gross | 0.68 | 0.74 | ||||||||||||||||||||||||||||||||||||||
Fixed rate floor income - derivative settlements (c) (e) | (0.11) | (0.07) | (0.10) | (0.02) | ||||||||||||||||||||||||||||||||||||||||||
Fixed rate floor income - derivative settlements (b) (d) | Fixed rate floor income - derivative settlements (b) (d) | (0.08) | (0.09) | |||||||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, net of settlements on derivatives | Fixed rate floor income, net of settlements on derivatives | 0.64 | 0.66 | 0.65 | 0.56 | Fixed rate floor income, net of settlements on derivatives | 0.60 | 0.65 | ||||||||||||||||||||||||||||||||||||||
Core loan spread | Core loan spread | 1.42 | % | 1.46 | % | 1.43 | % | 1.28 | % | Core loan spread | 1.45 | % | 1.45 | % | ||||||||||||||||||||||||||||||||
Average balance of AGM's loans | Average balance of AGM's loans | $ | 19,084,320 | 19,866,040 | 19,178,788 | 20,300,617 | Average balance of AGM's loans | $ | 17,208,909 | 19,494,002 | ||||||||||||||||||||||||||||||||||||
Average balance of AGM's debt outstanding | Average balance of AGM's debt outstanding | 18,863,730 | 19,632,675 | 18,890,832 | 20,153,478 | Average balance of AGM's debt outstanding | 16,773,698 | 19,156,797 |
Three months ended September 30, | Nine months ended September 30, | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Core loan spread | Core loan spread | 1.42 | % | 1.46 | % | 1.43 | % | 1.28 | % | Core loan spread | 1.45 | % | 1.45 | % | ||||||||||||||||||||||||||||||||
Derivative settlements (1:3 basis swaps) | Derivative settlements (1:3 basis swaps) | 0.02 | (0.02) | 0.01 | (0.07) | Derivative settlements (1:3 basis swaps) | (0.01) | 0.00 | ||||||||||||||||||||||||||||||||||||||
Derivative settlements (fixed rate floor income) | Derivative settlements (fixed rate floor income) | 0.11 | 0.07 | 0.10 | 0.02 | Derivative settlements (fixed rate floor income) | 0.08 | 0.09 | ||||||||||||||||||||||||||||||||||||||
Loan spread | Loan spread | 1.55 | % | 1.51 | % | 1.54 | % | 1.23 | % | Loan spread | 1.52 | % | 1.54 | % |
Three months ended September 30, | Nine months ended September 30, | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, gross | Fixed rate floor income, gross | $ | 35,850 | 36,633 | 108,029 | 87,258 | Fixed rate floor income, gross | $ | 28,993 | 35,539 | ||||||||||||||||||||||||||||||||||||
Derivative settlements (a) | Derivative settlements (a) | (5,209) | (3,588) | (14,648) | (2,772) | Derivative settlements (a) | (3,205) | (4,285) | ||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, net | Fixed rate floor income, net | $ | 30,641 | 33,045 | 93,381 | 84,486 | Fixed rate floor income, net | $ | 25,788 | 31,254 | ||||||||||||||||||||||||||||||||||||
Fixed rate floor income contribution to spread, net | Fixed rate floor income contribution to spread, net | 0.64 | % | 0.66 | % | 0.65 | % | 0.56 | % | Fixed rate floor income contribution to spread, net | 0.60 | % | 0.65 | % |
Three months ended September 30, | Nine months ended September 30, | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | Additional information | 2022 | 2021 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | Net interest income after provision for loan losses | $ | 77,179 | 86,025 | 275,092 | 125,500 | See table below for additional analysis. | Net interest income after provision for loan losses | $ | 73,459 | 116,922 | See table below for additional analysis. | ||||||||||||||||||||||||||||||||||||||||||||||
Other (expense) income | (7,275) | 1,004 | (4,514) | 4,951 | During the third quarter of 2021, the Company recognized a loss of $6.3 million and $3.4 million from an investment accounted for under the equity method and from certain repurchases of its own debt, respectively. These items were partially offset by $1.7 million in fees earned for serving as sponsor and administrator on certain non-consolidated securitizations of private education loans sold by Wells Fargo. Excluding these items, other income consists primarily of borrower late fees. Borrower late fees for the three months ended September 30, 2021 and 2020 was $0.5 million and $0.9 million, respectively, and for the nine months ended September 30, 2021 and 2020 was $1.7 million and $4.4 million, respectively. The decrease in borrower late fees in the nine months ended September 30, 2021 as compared to the same period in 2020 was due to the Company suspending borrower late fees effective March 13, 2020 to provide borrowers relief as a result of the COVID-19 pandemic. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income | Other income | 6,511 | 2,881 | Other income includes borrower late fees, which were $2.4 million and $0.4 million during the three months ended March 31, 2022 and 2021, respectively. The Company suspended borrower late fees in March 2020 to provide borrowers relief as a result of the COVID-19 pandemic. The Company began to recognize borrower late fees again in May 2021 (for private education loans) and October 2021 (for federally insured student loans). The Company also recognized revenue of $2.1 million in the first quarter of 2022 as administrator and sponsor for the securitizations completed by the joint venture to purchase and securitize private education loans sold by Wells Fargo and recognized income of $1.9 million in the first quarter of 2022 related to its investment in the joint venture. In the first quarter of 2021, due to improved economic conditions, the Company recorded a negative provision of $2.4 million related to its remaining allowance on a consumer loan securitization beneficial interest investment. Such allowance was initially recorded in March 2020 as a result of the COVID-19 pandemic. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | Gain on sale of loans | 2,989 | — | On January 26, 2022, the Company sold $18.1 million (par value) of consumer loans to an unrelated third party and recognized a gain of $3.0 million. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | Derivative settlements, net | (2,809) | (4,304) | The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce the economic effect of interest rate volatility. Derivative settlements for each applicable period should be evaluated with the Company's net interest income as reflected in the table below. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | Derivative market value adjustments, net | 145,734 | 38,809 | Includes the realized and unrealized gains and losses that are caused by changes in fair values of derivatives which do not qualify for "hedge treatment" under GAAP. The majority of the derivative market value adjustments during the three months ended March 31, 2022 and 2021 related to the changes in fair value of the Company's floor income interest rate swaps. An increase in the forward yield curve during the three months ended March 31, 2022 and 2021 resulted in an increase in the fair value of such swaps. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income/expense | Total other income/expense | 152,425 | 37,386 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 591 | 495 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 3,033 | 3,777 | The primary component of other expenses is servicing fees paid to third parties. The decrease in 2022 as compared to 2021 was due to a decrease in AGM's loan portfolio. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses | Intersegment expenses | 8,831 | 8,427 | Amounts include fees paid to the LSS operating segment for the servicing of AGM’s loan portfolio. These amounts exceed the actual cost of servicing the loans. The increase in servicing fees in 2022 as compared to 2021 was due to ending COVID-19 pandemic borrower relief policies which increased servicing activities in the first quarter of 2022 as compared to the same period in 2021. These increases were partially offset by the expected amortization of AGM's FFELP portfolio. Intersegment expenses also include costs for certain corporate activities and services that are allocated to each operating segment based on estimated use of such activities and services. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 12,455 | 12,699 | Total operating expenses were 29 basis points and 26 basis points of the average balance of loans for the three months ended March 31, 2022 and 2021, respectively. The increase in operating expenses as a percent of the average balance of loans in 2022 as compared to 2021 was due to ending COVID-19 pandemic borrower relief policies which increased servicing activities in the first quarter of 2022 as compared to the same period in 2021. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 213,429 | 141,609 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | (51,223) | (33,987) | Represents income tax expense at an effective tax rate of 24%. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 162,206 | 107,622 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Additional information: | Additional information: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 162,206 | 107,622 | See "Overview - GAAP Net Income and Non-GAAP Net Income, Excluding Adjustments" above for additional information about non-GAAP net income, excluding derivative market value adjustments. | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | Derivative market value adjustments, net | (145,734) | (38,809) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax effect | Tax effect | 34,976 | 9,314 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income, excluding derivative market value adjustments | Net income, excluding derivative market value adjustments | $ | 51,448 | 78,127 |
Gain on sale of loans | 3,444 | 14,817 | 18,715 | 33,023 | On May 14, 2021 and September 29, 2021, the Company sold $77.4 million (par value) and $18.4 million (par value) of consumer loans, respectively, to an unrelated third party and recognized a gain of $15.3 million (pre-tax) and $3.2 million (pre-tax), respectively. The Company also sold $124.2 million (par value) and $60.8 million (par value) of consumer loans in January 2020 and July 2020, respectively, and recognized gains of $18.2 million and $14.8 million, respectively. | ||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | — | — | 2,436 | (26,303) | In March 2020, the Company recognized a provision expense of $26.3 million related to its beneficial interest in consumer loan securitization investments as a result of the estimated impacts of the COVID-19 pandemic. During the first quarter of 2021, $2.4 million of such provision was reversed due to improved economic conditions. | ||||||||||||||||||||||||
Derivative settlements, net | (5,909) | (2,391) | (15,587) | 7,666 | The Company maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce the economic effect of interest rate volatility. Derivative settlements for each applicable period should be evaluated with the Company's net interest income as reflected in the table below. | ||||||||||||||||||||||||
Derivative market value adjustments, net | 7,260 | 3,440 | 44,455 | (21,072) | Includes the realized and unrealized gains and losses that are caused by changes in fair values of derivatives which do not qualify for "hedge treatment" under GAAP. The majority of the derivative market value adjustments during the three and nine months ended September 30, 2021 and 2020 related to the changes in fair value of the Company's floor income interest rate swaps. Such changes reflect that a decrease in the forward yield curve during a reporting period results in a decrease in the fair value of the Company's floor income interest rate swaps, and an increase in the forward yield curve during a reporting period results in an increase in the fair value of such swaps. | ||||||||||||||||||||||||
Total other income/expense | (2,480) | 16,870 | 45,505 | (1,735) | |||||||||||||||||||||||||
Salaries and benefits | 542 | 438 | 1,594 | 1,301 | |||||||||||||||||||||||||
Other expenses | 5,420 | 3,672 | 12,763 | 12,253 | The primary component of other expenses is servicing fees paid to third parties. Increase for the three and nine months ended September 30, 2021 as compared to the same periods in 2020 was due to $2.3 million of enhanced servicing costs incurred during the third quarter of 2021 on the Company's consumer loan portfolio, partially offset by a decrease of servicing fees as AGM's portfolio decreases. | ||||||||||||||||||||||||
Intersegment expenses | 8,652 | 8,868 | 25,627 | 29,839 | Amounts include fees paid to the LSS operating segment for the servicing of AGM’s loan portfolio. These amounts exceed the actual cost of servicing the loans. The decrease in servicing fees for the nine months ended September 30, 2021 as compared to the same period in 2020 was due to the expected amortization of AGM's FFELP portfolio and a decrease in certain servicing activities due to borrower relief initiatives and policies as a result of the COVID-19 pandemic. The decrease in servicing fees for the three months ended September 30, 2021 as compared to the same period in 2020 was due to the expected amortization of AGM's FFELP portfolio. Intersegment expenses also include costs for certain corporate activities and services that are allocated to each operating segment based on estimated use of such activities and services. | ||||||||||||||||||||||||
Total operating expenses | 14,614 | 12,978 | 39,984 | 43,393 | Total operating expenses were 31 basis points and 26 basis points of the average balance of loans for the three months ended September 30, 2021 and 2020, respectively, and 28 basis points and 29 basis points for the nine months ended September 30, 2021 and 2020, respectively. The increase for the three months ended September 30, 2021 as compared to the same period in 2020 was due to enhanced servicing costs incurred during the third quarter of 2021 on the Company's consumer loan portfolio. The decrease for the nine months ended September 30, 2021 as compared to the same period in 2020 was due to a decrease in certain servicing activities beginning in March 2020 due to borrower relief initiatives and policies as a result of the COVID-19 pandemic, partially offset by enhanced servicing costs incurred during the third quarter of 2021 on the Company's consumer loan portfolio. | ||||||||||||||||||||||||
Income before income taxes | 60,085 | 89,917 | 280,613 | 80,372 | |||||||||||||||||||||||||
Income tax expense | (14,421) | (21,580) | (67,347) | (19,289) | Represents income tax expense at an effective tax rate of 24%. | ||||||||||||||||||||||||
Net income | $ | 45,664 | 68,337 | 213,266 | 61,083 | ||||||||||||||||||||||||
Additional information: | |||||||||||||||||||||||||||||
Net income | $ | 45,664 | 68,337 | 213,266 | 61,083 | See "Overview - GAAP Net Income and Non-GAAP Net Income, Excluding Adjustments" above for additional information about non-GAAP net income, excluding derivative market value adjustments. | |||||||||||||||||||||||
Derivative market value adjustments, net | (7,260) | (3,440) | (44,455) | 21,072 | |||||||||||||||||||||||||
Tax effect | 1,742 | 826 | 10,669 | (5,057) | |||||||||||||||||||||||||
Net income, excluding derivative market value adjustments | $ | 40,146 | 65,723 | 179,480 | 77,098 |
Three months ended September 30, | Nine months ended September 30, | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | Additional information | 2022 | 2021 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||||
Variable interest income, gross | Variable interest income, gross | $ | 126,270 | 138,986 | 379,705 | 500,141 | Decrease in 2021 compared to 2020 was due to a decrease in the gross yield earned on loans and a decrease in the average balance of loans. | Variable interest income, gross | $ | 115,753 | 129,170 | Decrease in 2022 compared to 2021 was due to a decrease in the average balance of loans, partially offset by an increase in the gross yield earned on loans. | ||||||||||||||||||||||||||||||||||||||||||||||
Consolidation rebate fees | Consolidation rebate fees | (40,340) | (41,768) | (121,662) | (127,292) | Decrease in 2021 compared to 2020 was due to a decrease in the average consolidation loan balance. | Consolidation rebate fees | (36,771) | (41,073) | Decrease in 2022 compared to 2021 was due to a decrease in the average consolidation loan balance. | ||||||||||||||||||||||||||||||||||||||||||||||||
Discount accretion, net of premium and deferred origination costs amortization | Discount accretion, net of premium and deferred origination costs amortization | 1,230 | 656 | 1,776 | 2,332 | Net discount accretion is due to the Company's purchases of loans at a net discount over the last several years. | Discount accretion, net of premium and deferred origination costs amortization | 1,459 | 118 | Net discount accretion is due to the Company's purchases of loans at a net discount over the last several years. | ||||||||||||||||||||||||||||||||||||||||||||||||
Variable interest income, net | Variable interest income, net | 87,160 | 97,874 | 259,819 | 375,181 | Variable interest income, net | 80,441 | 88,215 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest on bonds and notes payable | Interest on bonds and notes payable | (48,549) | (57,510) | (123,861) | (274,318) | Decrease in 2021 compared to 2020 was due to a decrease in cost of funds and a decrease in the average balance of debt outstanding. In addition, during the first quarter of 2021, the Company reduced interest expense by $23.8 million as a result of reversing a historical accrued interest liability on certain bonds. | Interest on bonds and notes payable | (45,209) | (26,771) | During the first quarter of 2021, the Company reduced interest expense by $23.8 million as a result of reversing a historical accrued interest liability on certain bonds. Excluding this adjustment, interest expense decreased in 2022 as compared to 2021. This decrease was due to a decrease in the average balance of debt outstanding, partially offset by an increase in cost of funds. | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net (a) | Derivative settlements, net (a) | (700) | 1,197 | (939) | 10,438 | Derivative settlements include the net settlements (paid) received related to the Company’s 1:3 basis swaps. | Derivative settlements, net (a) | 396 | (19) | Derivative settlements include the net settlements received (paid) related to the Company’s 1:3 basis swaps. | ||||||||||||||||||||||||||||||||||||||||||||||||
Variable loan interest margin, net of settlements on derivatives (a) | Variable loan interest margin, net of settlements on derivatives (a) | 37,911 | 41,561 | 135,019 | 111,301 | Variable loan interest margin, net of settlements on derivatives (a) | 35,628 | 61,425 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, gross | Fixed rate floor income, gross | 35,850 | 36,633 | 108,029 | 87,258 | Increase in the nine months ended September 30, 2021 compared to the same period in 2020 was due to lower interest rates in 2021 as compared to 2020. Decrease in the three months ended September 30, 2021 compared to the same period in 2020 was due to a decrease in the balance of fixed rate floor loans, partially offset by a decrease in interest rates. | Fixed rate floor income, gross | 28,993 | 35,539 | Decrease in 2022 compared to 2021 was due to higher interest rates in 2022 as compared to 2021. On May 4, 2022, the Federal Reserve increased interest rates, and it is currently anticipated that interest rates may continue to rise in 2022 as a result of inflationary pressures in the U.S. economy; increases in interest rates will reduce the amount of fixed rate floor income the Company is currently receiving. | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net (a) | Derivative settlements, net (a) | (5,209) | (3,588) | (14,648) | (2,772) | Derivative settlements include the settlements paid related to the Company's floor income interest rate swaps. The increase in net settlements paid in 2021 as compared to the same periods in 2020 was due to a decrease in interest rates and an increase in the notional amount of derivatives outstanding. | Derivative settlements, net (a) | (3,205) | (4,285) | Derivative settlements include the settlements paid related to the Company's floor income interest rate swaps. The decrease in net settlements paid in 2022 as compared to 2021 was due to an increase in interest rates and a decrease in the notional amount of derivatives outstanding. | ||||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, net of settlements on derivatives | Fixed rate floor income, net of settlements on derivatives | 30,641 | 33,045 | 93,381 | 84,486 | Fixed rate floor income, net of settlements on derivatives | 25,788 | 31,254 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Core loan interest income (a) | Core loan interest income (a) | 68,552 | 74,606 | 228,400 | 195,787 | Core loan interest income (a) | 61,416 | 92,679 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment interest | Investment interest | 8,771 | 3,452 | 20,301 | 12,029 | Increase in 2021 compared to 2020 was due to an increase in interest income on the Company's loan beneficial interest investments, partially offset by lower interest rates in 2021 as compared to 2020. | Investment interest | 9,164 | 2,648 | Increase in 2022 compared to 2021 was due primarily to an increase in interest income on the Company's loan beneficial interest investments. | ||||||||||||||||||||||||||||||||||||||||||||||||
Intercompany interest | Intercompany interest | (113) | (245) | (421) | (1,174) | Decrease in 2021 compared to 2020 was due to lower interest rates and lower weighted average debt outstanding in 2021 as compared to 2020. | Intercompany interest | (794) | (179) | |||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) negative provision for loan losses - federally insured loans | (4,452) | 5,299 | 3,428 | (32,074) | See "Allowance for Loan Losses and Loan Delinquencies" included above under "Asset Generation and Management Operating Segment - Results of Operations." | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Negative provision for loan losses - federally insured loans | Negative provision for loan losses - federally insured loans | 2,748 | 7,483 | See "Allowance for Loan Losses and Loan Delinquencies" included above under "Asset Generation and Management Operating Segment - Results of Operations." | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Negative provision (provision) for loan losses - private education loans | Negative provision (provision) for loan losses - private education loans | 1,208 | 5,650 | 781 | (6,471) | Negative provision (provision) for loan losses - private education loans | 400 | (1,431) | ||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) negative provision for loan losses - consumer loans | (Provision) negative provision for loan losses - consumer loans | (2,696) | (5,128) | 7,016 | (34,931) | See "Allowance for Loan Losses and Loan Delinquencies" included above under "Asset Generation and Management Operating Segment - Results of Operations." | (Provision) negative provision for loan losses - consumer loans | (2,284) | 11,418 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses (net of settlements on derivatives) (a) | Net interest income after provision for loan losses (net of settlements on derivatives) (a) | $ | 71,270 | 83,634 | 259,505 | 133,166 | Net interest income after provision for loan losses (net of settlements on derivatives) (a) | $ | 70,650 | 112,618 | Decrease in 2022 as compared to 2021 was due to (i) a decrease in the average balance of loans; (ii) the reversal of a historical accrued interest liability on certain bonds in 2021; and (iii) the Company recognizing a larger negative provision for loan losses in 2021 as compared to 2022. These items were partially offset by an increase in interest income on the Company's loan beneficial interest investments in 2022 as compared to 2021. |
Three months ended | Nine months ended | Three months ended March 31, | ||||||||||||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||
Beginning balance: | Beginning balance: | $ | 190,571 | 17,543 | Beginning balance: | $ | 257,901 | 17,543 | ||||||||||||||||||||||||||
Federally insured student loan acquisitions | — | 99,973 | ||||||||||||||||||||||||||||||||
Private education loan originations | Private education loan originations | 13,006 | 99,161 | Private education loan originations | 130,342 | 64,909 | ||||||||||||||||||||||||||||
Repayments | Repayments | (10,865) | (21,863) | Repayments | (18,394) | (1,995) | ||||||||||||||||||||||||||||
Sales to AGM segment | Sales to AGM segment | (387) | (2,489) | Sales to AGM segment | (1,592) | (1,226) | ||||||||||||||||||||||||||||
Ending balance: | Ending balance: | $ | 192,325 | 192,325 | Ending balance: | $ | 368,257 | 79,231 |
Three months ended | Nine months ended | ||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | ||||||||||||||||||||||
Balance | Rate | Balance | Rate | ||||||||||||||||||||
Average assets | |||||||||||||||||||||||
Federally insured student loans | $ | 95,510 | 1.36 | % | 56,000 | 1.36 | % | ||||||||||||||||
Private education loans | 95,752 | 3.14 | 75,522 | 3.19 | |||||||||||||||||||
Cash and investments | 206,802 | 1.87 | 215,213 | 1.93 | |||||||||||||||||||
Total interest-earning assets | 398,064 | 2.05 | % | 346,735 | 2.11 | % | |||||||||||||||||
Non-interest-earning assets | 10,452 | 8,758 | |||||||||||||||||||||
Total assets | $ | 408,516 | 355,493 | ||||||||||||||||||||
Average liabilities and equity | |||||||||||||||||||||||
Brokered deposits | 84,175 | 0.84 | % | 53,459 | 0.84 | % | |||||||||||||||||
Intercompany deposits | 98,436 | 0.24 | 83,004 | 0.25 | |||||||||||||||||||
Retail and other deposits | 117,360 | 0.62 | 112,255 | 0.61 | |||||||||||||||||||
Total interest-bearing liabilities | 299,971 | 0.56 | % | 248,718 | 0.54 | % | |||||||||||||||||
Non-interest-bearing liabilities | 5,340 | 4,178 | |||||||||||||||||||||
Equity | 103,205 | 102,597 | |||||||||||||||||||||
Total liabilities and equity | $ | 408,516 | 355,493 | ||||||||||||||||||||
Three months ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Balance | Rate | Balance | Rate | ||||||||||||||||||||
Average assets | |||||||||||||||||||||||
Federally insured student loans | $ | 85,266 | 1.42 | % | — | — | % | ||||||||||||||||
Private education loans | 228,934 | 2.91 | 43,746 | 3.37 | |||||||||||||||||||
Cash and investments | 265,101 | 1.66 | 215,613 | 1.91 | |||||||||||||||||||
Total interest-earning assets | 579,301 | 2.12 | % | 259,359 | 2.15 | % | |||||||||||||||||
Non-interest-earning assets | 15,275 | 6,541 | |||||||||||||||||||||
Total assets | $ | 594,576 | 265,900 | ||||||||||||||||||||
Average liabilities and equity | |||||||||||||||||||||||
Brokered deposits | 144,527 | 1.20 | % | 2,984 | 0.55 | % | |||||||||||||||||
Intercompany deposits | 70,576 | 0.20 | 56,684 | 0.28 | |||||||||||||||||||
Retail and other deposits | 269,027 | 0.59 | 101,462 | 0.60 | |||||||||||||||||||
Total interest-bearing liabilities | 484,130 | 0.72 | % | 161,130 | 0.49 | % | |||||||||||||||||
Non-interest-bearing liabilities | 6,427 | 2,870 | |||||||||||||||||||||
Equity | 104,019 | 101,900 | |||||||||||||||||||||
Total liabilities and equity | $ | 594,576 | 265,900 | ||||||||||||||||||||
Three months ended | Nine months ended | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
September 30, 2021 | September 30, 2021 | Additional information | 2022 | 2021 | Additional information | |||||||||||||||||||||||||||||||||||||||||
Total interest income | Total interest income | $ | 2,061 | 5,479 | Represents interest earned on Nelnet Bank's FFELP and private education student loans, cash, and investments. | Total interest income | $ | 3,030 | 1,376 | Represents interest earned on Nelnet Bank's FFELP and private education student loans, cash, and investments. Increase is due to an increase of these balances in 2022 as compared to 2021. | ||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 421 | 1,007 | Represents interest expense on deposits. | Interest expense | 856 | 194 | Represents interest expense on deposits. Increase is due to an increase of deposits and interest rates in 2022 as compared to 2021. | ||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | 1,640 | 4,472 | Net interest income | 2,174 | 1,182 | ||||||||||||||||||||||||||||||||||||||||
(Negative provision) provision for loan losses | (113) | 378 | ||||||||||||||||||||||||||||||||||||||||||||
Provision for loan losses | Provision for loan losses | 429 | 422 | |||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | Net interest income after provision for loan losses | 1,753 | 4,094 | Net interest income after provision for loan losses | 1,745 | 760 | ||||||||||||||||||||||||||||||||||||||||
Other income | Other income | 450 | 475 | Other income | 1,500 | 22 | Represents primarily income and gains from investments. During the first quarter of 2022, Nelnet Bank recognized gains of approximately $1.1 million on certain asset-backed securities that were sold or called during the quarter. | |||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 890 | 3,956 | Represents salaries and benefits of Nelnet Bank associates and third-party contract labor. | Salaries and benefits | 1,554 | 1,488 | Represents salaries and benefits of Nelnet Bank associates and third-party contract labor. | ||||||||||||||||||||||||||||||||||||||
Depreciation | Depreciation | 3 | — | |||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 445 | 1,227 | Represents various expenses such as postage, consulting and professional fees, Nelnet Bank director fees, occupancy, certain information technology-related costs, insurance, marketing, and other operating expenses. | Other expenses | 682 | 545 | Represents various expenses such as consulting and professional fees, Nelnet Bank director fees, occupancy, certain information technology-related costs, insurance, marketing, and other operating expenses. | ||||||||||||||||||||||||||||||||||||||
Intersegment expenses | Intersegment expenses | 32 | 72 | Represents primarily servicing costs paid to the LSS operating segment. | Intersegment expenses | 45 | 3 | Represents primarily servicing costs paid to the LSS operating segment. Certain shared service and support costs incurred by the Company to support Nelnet Bank are not and will not be reflected as part of the Nelnet Bank operating segment through 2023 (when the bank's de novo period will end). The shared service and support costs incurred by the Company related to Nelnet Bank and not reflected in the bank's operating segment were $1.3 million and $0.7 million for the three months ended March 31, 2022 and 2021, respectively. | ||||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 1,367 | 5,255 | Total operating expenses | 2,284 | 2,036 | ||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | Income (loss) before income taxes | 836 | (686) | Income (loss) before income taxes | 961 | (1,254) | ||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | Income tax (expense) benefit | (200) | 151 | Represents income tax (expense) benefit at an effective tax rate of 24.0% and 22.0% for the three and nine months ended September 30, 2021, respectively. | Income tax (expense) benefit | (223) | 286 | Represents income tax (expense) benefit at an effective tax rate of 23.2% and 22.8% for the three months ended March 31, 2022 and 2021, respectively. | ||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | $ | 636 | (535) | Net income (loss) | $ | 738 | (968) |
As of | |||||||||||
Carrying amount | Final maturity | ||||||||||
Bonds and notes issued in asset-backed securitizations | $ | 5/27/25 - 9/25/69 | |||||||||
FFELP and private education loan warehouse facilities | |||||||||||
$ |
Increase in prepayment rate | Reduction in forecasted cash flow from table above | Forecasted cash flow using increased prepayment rate | ||||||||||||
2x | $0.13 billion | $1.70 billion | ||||||||||||
4x | $0.35 billion | $1.48 billion | ||||||||||||
10x | $0.63 billion | $1.20 billion |
Total shares repurchased | Purchase price (in thousands) | Average price of shares repurchased (per share) | |||||||||||||||
Quarter ended March 31, 2021 | 26,199 | $ | 2,009 | 76.70 | |||||||||||||
Quarter ended June 30, 2021 | 5,368 | 399 | 74.25 | ||||||||||||||
Quarter ended September 30, 2021 | 341,094 | 25,078 | 73.52 | ||||||||||||||
Total | 372,661 | $ | 27,486 | 73.76 |
Total shares repurchased | Purchase price (in thousands) | Average price of shares repurchased (per share) | |||||||||||||||
Quarter ended March 31, 2022 | 380,053 | $ | 32,899 | 86.56 | |||||||||||||
As of September 30, 2021 | As of December 31, 2020 | As of March 31, 2022 | As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||||||||||||||||||||||||||||||||||
Fixed-rate loan assets | Fixed-rate loan assets | $ | 7,866,098 | 42.7 | % | $ | 8,720,480 | 44.6 | % | Fixed-rate loan assets | $ | 6,954,856 | 41.8 | % | $ | 7,434,068 | 42.6 | % | ||||||||||||||||||||||||||||
Variable-rate loan assets | Variable-rate loan assets | 10,571,596 | 57.3 | 10,838,628 | 55.4 | Variable-rate loan assets | 9,663,771 | 58.2 | 10,007,722 | 57.4 | ||||||||||||||||||||||||||||||||||||
Total | Total | $ | 18,437,694 | 100.0 | % | $ | 19,559,108 | 100.0 | % | Total | $ | 16,618,627 | 100.0 | % | $ | 17,441,790 | 100.0 | % | ||||||||||||||||||||||||||||
Fixed-rate debt instruments | Fixed-rate debt instruments | $ | 890,843 | 4.9 | % | $ | 960,327 | 5.0 | % | Fixed-rate debt instruments | $ | 762,843 | 4.7 | % | $ | 801,548 | 4.7 | % | ||||||||||||||||||||||||||||
Variable-rate debt instruments | Variable-rate debt instruments | 17,394,675 | 95.1 | 18,354,964 | 95.0 | Variable-rate debt instruments | 15,499,587 | 95.3 | 16,279,722 | 95.3 | ||||||||||||||||||||||||||||||||||||
Total | Total | $ | 18,285,518 | 100.0 | % | $ | 19,315,291 | 100.0 | % | Total | $ | 16,262,430 | 100.0 | % | $ | 17,081,270 | 100.0 | % |
Three months ended September 30, | Nine months ended September 30, | Three months ended March 31, | ||||||||||||||||||||||||||||||||||||||||||||
2021 | 2020 | 2021 | 2020 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, gross | Fixed rate floor income, gross | $ | 35,850 | 36,633 | 108,029 | 87,258 | Fixed rate floor income, gross | $ | 28,993 | 35,539 | ||||||||||||||||||||||||||||||||||||
Derivative settlements (a) | Derivative settlements (a) | (5,209) | (3,588) | (14,648) | (2,772) | Derivative settlements (a) | (3,205) | (4,285) | ||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, net | Fixed rate floor income, net | $ | 30,641 | 33,045 | 93,381 | 84,486 | Fixed rate floor income, net | $ | 25,788 | 31,254 |
Fixed interest rate range | Fixed interest rate range | Borrower/lender weighted average yield | Estimated variable conversion rate (a) | Loan balance | Fixed interest rate range | Borrower/lender weighted average yield | Estimated variable conversion rate (a) | Loan balance | ||||||||||||||||||||||||||||||||
< 3.0% | < 3.0% | 2.87% | 0.23% | $ | 1,097,529 | < 3.0% | 2.88% | 0.24% | $ | 896,417 | ||||||||||||||||||||||||||||||
3.0 - 3.49% | 3.0 - 3.49% | 3.19% | 0.55% | 1,384,287 | 3.0 - 3.49% | 3.19% | 0.55% | 1,216,340 | ||||||||||||||||||||||||||||||||
3.5 - 3.99% | 3.5 - 3.99% | 3.65% | 1.01% | 1,311,190 | 3.5 - 3.99% | 3.65% | 1.01% | 1,170,382 | ||||||||||||||||||||||||||||||||
4.0 - 4.49% | 4.0 - 4.49% | 4.20% | 1.56% | 979,349 | 4.0 - 4.49% | 4.19% | 1.55% | 881,110 | ||||||||||||||||||||||||||||||||
4.5 - 4.99% | 4.5 - 4.99% | 4.71% | 2.07% | 612,533 | 4.5 - 4.99% | 4.71% | 2.07% | 547,249 | ||||||||||||||||||||||||||||||||
5.0 - 5.49% | 5.0 - 5.49% | 5.22% | 2.58% | 409,149 | 5.0 - 5.49% | 5.22% | 2.58% | 368,303 | ||||||||||||||||||||||||||||||||
5.5 - 5.99% | 5.5 - 5.99% | 5.67% | 3.03% | 272,253 | 5.5 - 5.99% | 5.67% | 3.03% | 239,988 | ||||||||||||||||||||||||||||||||
6.0 - 6.49% | 6.0 - 6.49% | 6.19% | 3.55% | 311,004 | 6.0 - 6.49% | 6.19% | 3.55% | 277,698 | ||||||||||||||||||||||||||||||||
6.5 - 6.99% | 6.5 - 6.99% | 6.70% | 4.06% | 304,230 | 6.5 - 6.99% | 6.70% | 4.06% | 274,368 | ||||||||||||||||||||||||||||||||
7.0 - 7.49% | 7.0 - 7.49% | 7.17% | 4.53% | 114,190 | 7.0 - 7.49% | 7.17% | 4.53% | 102,274 | ||||||||||||||||||||||||||||||||
7.5 - 7.99% | 7.5 - 7.99% | 7.71% | 5.07% | 206,858 | 7.5 - 7.99% | 7.71% | 5.07% | 189,295 | ||||||||||||||||||||||||||||||||
8.0 - 8.99% | 8.0 - 8.99% | 8.18% | 5.54% | 486,961 | 8.0 - 8.99% | 8.18% | 5.54% | 444,724 | ||||||||||||||||||||||||||||||||
> 9.0% | > 9.0% | 9.05% | 6.41% | 186,168 | > 9.0% | 9.05% | 6.41% | 172,229 | ||||||||||||||||||||||||||||||||
$ | 7,675,701 | $ | 6,780,377 |
Maturity | Notional amount | Weighted average fixed rate paid by the Company (a) | ||||||||||||
2021 | $ | 100,000 | 2.95 | % | ||||||||||
2022 | 500,000 | 0.94 | ||||||||||||
2023 | 900,000 | 0.62 | ||||||||||||
2024 | 2,500,000 | 0.35 | ||||||||||||
2025 | 500,000 | 0.35 | ||||||||||||
2026 | 300,000 | 0.81 | ||||||||||||
2031 | 100,000 | 1.53 | ||||||||||||
$ | 4,900,000 | 0.56 | % |
Maturity | Notional amount | Weighted average fixed rate paid by the Company (a) | ||||||||||||
2023 | $ | 750,000 | 0.30 | % | ||||||||||
2024 | 2,500,000 | 0.35 | ||||||||||||
2025 | 500,000 | 0.35 | ||||||||||||
2026 | 500,000 | 1.02 | ||||||||||||
2031 | 100,000 | 1.53 | ||||||||||||
$ | 4,350,000 | 0.44 | % |
Index | Index | Frequency of variable resets | Assets | Funding of student loan assets | Index | Frequency of variable resets | Assets | Funding of student loan assets | ||||||||||||||||||||||||||||||||
1 month LIBOR (a) | 1 month LIBOR (a) | Daily | $ | 16,867,459 | — | 1 month LIBOR (a) | Daily | $ | 15,198,552 | — | ||||||||||||||||||||||||||||||
3 month H15 financial commercial paper | 3 month H15 financial commercial paper | Daily | 656,099 | — | 3 month H15 financial commercial paper | Daily | 587,763 | — | ||||||||||||||||||||||||||||||||
3 month Treasury bill | 3 month Treasury bill | Daily | 557,930 | — | 3 month Treasury bill | Daily | 509,062 | — | ||||||||||||||||||||||||||||||||
1 month LIBOR | 1 month LIBOR | Monthly | — | 11,147,340 | 1 month LIBOR | Monthly | — | 10,069,293 | ||||||||||||||||||||||||||||||||
3 month LIBOR (a) | 3 month LIBOR (a) | Quarterly | — | 5,637,642 | 3 month LIBOR (a) | Quarterly | — | 5,074,989 | ||||||||||||||||||||||||||||||||
Fixed rate | Fixed rate | — | — | 860,434 | Fixed rate | — | — | 736,079 | ||||||||||||||||||||||||||||||||
Auction-rate (b) | Auction-rate (b) | Varies | — | 450,300 | Auction-rate (b) | Varies | — | 225,535 | ||||||||||||||||||||||||||||||||
Asset-backed commercial paper (c) | Asset-backed commercial paper (c) | Varies | — | 5,446 | Asset-backed commercial paper (c) | Varies | — | 5,017 | ||||||||||||||||||||||||||||||||
Other (d) | Other (d) | — | 1,526,469 | 1,506,795 | Other (d) | — | 1,431,818 | 1,616,282 | ||||||||||||||||||||||||||||||||
$ | 19,607,957 | 19,607,957 | $ | 17,727,195 | 17,727,195 |
Maturity | Notional amount (i) | |||||||
2022 | $ | 2,000,000 | ||||||
2023 | 750,000 | |||||||
2024 | 1,750,000 | |||||||
2026 | 1,150,000 | |||||||
2027 | 250,000 | |||||||
$ | 5,900,000 |
Interest rates | Asset and funding index mismatches | ||||||||||||||||||||||||||||||||||||||||||||||
Change from increase of 100 basis points | Change from increase of 300 basis points | Increase of 10 basis points | Increase of 30 basis points | ||||||||||||||||||||||||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Decrease in pre-tax net income before impact of derivative settlements | $ | (14,394) | (21.5) | % | $ | (27,280) | (40.8) | % | $ | (1,484) | (2.2) | % | $ | (4,453) | (6.7) | % | |||||||||||||||||||||||||||||||
Impact of derivative settlements | 12,252 | 18.3 | 36,756 | 55.0 | 1,487 | 2.2 | 4,461 | 6.7 | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | (2,142) | (3.2) | % | $ | 9,476 | 14.2 | % | $ | 3 | 0.0 | % | $ | 8 | 0.0 | % | |||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | (0.04) | $ | 0.19 | $ | 0.00 | $ | 0.00 | |||||||||||||||||||||||||||||||||||||||
Three months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Decrease in pre-tax net income before impact of derivative settlements | $ | (16,328) | (18.1) | % | $ | (31,947) | (35.4) | % | $ | (1,737) | (1.9) | % | $ | (5,212) | (5.7) | % | |||||||||||||||||||||||||||||||
Impact of derivative settlements | 2,643 | 2.9 | 7,930 | 8.8 | 1,546 | 1.7 | 4,638 | 5.1 | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | (13,685) | (15.2) | % | $ | (24,017) | (26.6) | % | $ | (191) | (0.2) | % | $ | (574) | (0.6) | % | |||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | (0.27) | $ | (0.47) | (0.00 | ) | $ | (0.01) | |||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Decrease in pre-tax net income before impact of derivative settlements | $ | (42,749) | (12.8) | % | $ | (79,285) | (23.7) | % | $ | (4,659) | (1.4) | % | $ | (13,980) | (4.2) | % | |||||||||||||||||||||||||||||||
Impact of derivative settlements | 30,944 | 9.3 | 92,831 | 27.8 | 4,474 | 1.3 | 13,423 | 4.0 | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | (11,805) | (3.5) | % | $ | 13,546 | 4.1 | % | $ | (185) | (0.1) | % | $ | (557) | (0.2) | % | |||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | (0.23) | $ | 0.27 | (0.00 | ) | $ | (0.01) | |||||||||||||||||||||||||||||||||||||||
Nine months ended September 30, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Decrease in pre-tax net income before impact of derivative settlements | $ | (42,577) | (28.7) | % | $ | (79,919) | (53.9) | % | $ | (5,491) | (3.7) | % | $ | (16,479) | (11.1) | % | |||||||||||||||||||||||||||||||
Impact of derivative settlements | 8,859 | 6.0 | 26,577 | 17.9 | 4,566 | 3.1 | 13,698 | 9.2 | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | (33,718) | (22.7) | % | $ | (53,342) | (36.0) | % | $ | (925) | (0.6) | % | $ | (2,781) | (1.9) | % | |||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | (0.65) | $ | (1.03) | $ | (0.02) | $ | (0.05) |
Interest rates | Asset and funding index mismatches | ||||||||||||||||||||||||||||||||||||||||||||||
Change from increase of 100 basis points | Change from increase of 300 basis points | Increase of 10 basis points | Increase of 30 basis points | ||||||||||||||||||||||||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | Dollars | Percent | ||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Decrease in pre-tax net income before impact of derivative settlements | $ | (10,141) | (4.2) | % | $ | (17,647) | (7.3) | % | $ | (1,262) | (0.5) | % | $ | (3,786) | (1.6) | % | |||||||||||||||||||||||||||||||
Impact of derivative settlements | 10,726 | 4.5 | 32,178 | 13.4 | 1,455 | 0.6 | 4,364 | 1.8 | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | 585 | 0.3 | % | $ | 14,531 | 6.1 | % | $ | 193 | 0.1 | % | $ | 578 | 0.2 | % | |||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | 0.01 | $ | 0.29 | $ | 0.00 | $ | 0.01 | |||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||
Decrease in pre-tax net income before impact of derivative settlements | $ | (14,282) | (9.1) | % | $ | (26,218) | (16.6) | % | $ | (1,605) | (1.0) | % | $ | (4,814) | (3.1) | % | |||||||||||||||||||||||||||||||
Impact of derivative settlements | 9,130 | 5.8 | 27,390 | 17.3 | 1,516 | 1.0 | 4,549 | 2.9 | |||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | $ | (5,152) | (3.3) | % | $ | 1,172 | 0.7 | % | $ | (89) | — | % | $ | (265) | (0.2) | % | |||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | $ | (0.10) | $ | 0.02 | (0.00 | ) | $ | (0.01) | |||||||||||||||||||||||||||||||||||||||
As of September 30, 2021 | As of December 31, 2020 | As of March 31, 2022 | As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||||||||||||||||||||||||||||||||||
Fixed-rate loan assets | Fixed-rate loan assets | $ | 126,633 | 65.8 | % | $ | 16,866 | 96.1 | % | Fixed-rate loan assets | $ | 278,450 | 75.6 | % | $ | 191,410 | 74.2 | % | ||||||||||||||||||||||||||||
Variable-rate loan assets | Variable-rate loan assets | 65,692 | 34.2 | 677 | 3.9 | Variable-rate loan assets | 89,807 | 24.4 | 66,491 | 25.8 | ||||||||||||||||||||||||||||||||||||
Total | Total | $ | 192,325 | 100.0 | % | $ | 17,543 | 100.0 | % | Total | $ | 368,257 | 100.0 | % | $ | 257,901 | 100.0 | % | ||||||||||||||||||||||||||||
Fixed-rate deposits | Fixed-rate deposits | $ | 200,651 | 66.4 | % | $ | 54,633 | 48.3 | % | Fixed-rate deposits | $ | 484,047 | 88.5 | % | $ | 344,315 | 80.9 | % | ||||||||||||||||||||||||||||
Variable-rate deposits | Variable-rate deposits | 101,564 | 33.6 | 58,413 | 51.7 | Variable-rate deposits | 62,623 | 11.5 | 81,085 | 19.1 | ||||||||||||||||||||||||||||||||||||
Total | Total | $ | 302,215 | 100.0 | % | $ | 113,046 | 100.0 | % | Total | $ | 546,670 | 100.0 | % | $ | 425,400 | 100.0 | % |
Period | Total number of shares purchased (a) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs (b) | Maximum number of shares that may yet be purchased under the plans or programs (b) | ||||||||||||||||||||||
July 1 - July 31, 2021 | — | $ | — | — | 3,246,732 | |||||||||||||||||||||
August 1 - August 31, 2021 | 337,717 | 73.46 | 337,717 | 2,909,015 | ||||||||||||||||||||||
September 1 - September 30, 2021 | 3,377 | 80.04 | — | 2,909,015 | ||||||||||||||||||||||
Total | 341,094 | $ | 73.52 | 337,717 |
Period | Total number of shares purchased (a) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs (b) | Maximum number of shares that may yet be purchased under the plans or programs (b) | ||||||||||||||||||||||
January 1 - January 31, 2022 | 142,619 | $ | 90.39 | 142,619 | 2,429,061 | |||||||||||||||||||||
February 1 - February 28, 2022 | 12,952 | 87.24 | 12,952 | 2,416,109 | ||||||||||||||||||||||
March 1 - March 31, 2022 | 224,482 | 84.09 | 193,250 | 2,222,859 | ||||||||||||||||||||||
Total | 380,053 | $ | 86.56 | 348,821 |
31.1* | |||||
31.2* | |||||
32** | |||||
101.INS* | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
101.SCH* | Inline XBRL Taxonomy Extension Schema Document | ||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
* | Filed herewith | ||||
** | Furnished herewith | ||||
NELNET, INC. | ||||||||||||||
Date: | By: | /s/ JEFFREY R. NOORDHOEK | ||||||||||||
Name: | Jeffrey R. Noordhoek | |||||||||||||
Title: | Chief Executive Officer Principal Executive Officer | |||||||||||||
Date: | By: | /s/ JAMES D. KRUGER | ||||||||||||
Name: | James D. Kruger | |||||||||||||
Title: | Chief Financial Officer Principal Financial Officer and Principal Accounting Officer |