☒ | 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 | |||||||||||||||||||
March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||||||||
Assets: | Assets: | Assets: | ||||||||||||||||||||
Loans and accrued interest receivable (net of allowance for loan losses of $117,825 and $127,113, respectively) | $ | 17,621,576 | 18,335,197 | |||||||||||||||||||
Loans and accrued interest receivable (net of allowance for loan losses of $120,424 and $127,113, respectively) | Loans and accrued interest receivable (net of allowance for loan losses of $120,424 and $127,113, respectively) | $ | 16,916,344 | 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 | 36,111 | 30,128 | Cash and cash equivalents - not held at a related party | 32,849 | 30,128 | ||||||||||||||||
Cash and cash equivalents - held at a related party | Cash and cash equivalents - held at a related party | 126,674 | 95,435 | Cash and cash equivalents - held at a related party | 95,650 | 95,435 | ||||||||||||||||
Total cash and cash equivalents | Total cash and cash equivalents | 162,785 | 125,563 | Total cash and cash equivalents | 128,499 | 125,563 | ||||||||||||||||
Investments | 1,649,578 | 1,588,919 | ||||||||||||||||||||
Investments and notes receivable | Investments and notes receivable | 1,988,450 | 1,588,919 | |||||||||||||||||||
Restricted cash | Restricted cash | 757,954 | 741,981 | Restricted cash | 754,693 | 741,981 | ||||||||||||||||
Restricted cash - due to customers | Restricted cash - due to customers | 256,927 | 326,645 | Restricted cash - due to customers | 290,850 | 326,645 | ||||||||||||||||
Accounts receivable (net of allowance for doubtful accounts of $1,098 and $1,160, respectively) | 144,902 | 163,315 | ||||||||||||||||||||
Accounts receivable (net of allowance for doubtful accounts of $1,342 and $1,160, respectively) | Accounts receivable (net of allowance for doubtful accounts of $1,342 and $1,160, respectively) | 119,774 | 163,315 | |||||||||||||||||||
Goodwill | Goodwill | 142,092 | 142,092 | Goodwill | 149,117 | 142,092 | ||||||||||||||||
Intangible assets, net | Intangible assets, net | 49,544 | 52,029 | Intangible assets, net | 70,086 | 52,029 | ||||||||||||||||
Property and equipment, net | Property and equipment, net | 120,779 | 119,413 | Property and equipment, net | 123,738 | 119,413 | ||||||||||||||||
Other assets | Other assets | 83,604 | 82,887 | Other assets | 82,462 | 82,887 | ||||||||||||||||
Total assets | Total assets | $ | 20,989,741 | 21,678,041 | Total assets | $ | 20,624,013 | 21,678,041 | ||||||||||||||
Liabilities: | Liabilities: | Liabilities: | ||||||||||||||||||||
Bonds and notes payable | Bonds and notes payable | $ | 16,736,701 | 17,631,089 | Bonds and notes payable | $ | 16,115,269 | 17,631,089 | ||||||||||||||
Accrued interest payable | Accrued interest payable | 7,216 | 4,566 | Accrued interest payable | 12,963 | 4,566 | ||||||||||||||||
Bank deposits | Bank deposits | 484,047 | 344,315 | Bank deposits | 588,474 | 344,315 | ||||||||||||||||
Other liabilities | Other liabilities | 400,523 | 379,231 | Other liabilities | 406,686 | 379,231 | ||||||||||||||||
Due to customers | Due to customers | 276,191 | 366,002 | Due to customers | 409,476 | 366,002 | ||||||||||||||||
Total liabilities | Total liabilities | 17,904,678 | 18,725,203 | Total liabilities | 17,532,868 | 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 27,151,270 shares and 27,239,654 shares, respectively | 272 | 272 | ||||||||||||||||||||
Class A, $0.01 par value. Authorized 600,000,000 shares; issued and outstanding 26,613,733 shares and 27,239,654 shares, respectively | Class A, $0.01 par value. Authorized 600,000,000 shares; issued and outstanding 26,613,733 shares and 27,239,654 shares, respectively | 266 | 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 | 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 | 1,208 | 1,000 | Additional paid-in capital | 1,180 | 1,000 | ||||||||||||||||
Retained earnings | Retained earnings | 3,092,226 | 2,940,523 | Retained earnings | 3,127,687 | 2,940,523 | ||||||||||||||||
Accumulated other comprehensive (loss) earnings, net | Accumulated other comprehensive (loss) earnings, net | (5,500) | 9,304 | Accumulated other comprehensive (loss) earnings, net | (31,858) | 9,304 | ||||||||||||||||
Total Nelnet, Inc. shareholders' equity | Total Nelnet, Inc. shareholders' equity | 3,088,313 | 2,951,206 | Total Nelnet, Inc. shareholders' equity | 3,097,382 | 2,951,206 | ||||||||||||||||
Noncontrolling interests | Noncontrolling interests | (3,250) | 1,632 | Noncontrolling interests | (6,237) | 1,632 | ||||||||||||||||
Total equity | Total equity | 3,085,063 | 2,952,838 | Total equity | 3,091,145 | 2,952,838 | ||||||||||||||||
Total liabilities and equity | Total liabilities and equity | $ | 20,989,741 | 21,678,041 | Total liabilities and equity | $ | 20,624,013 | 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 lending variable interest entities: | Supplemental information - assets and liabilities of consolidated education lending variable interest entities: | |||||||||||||||||||||
Loans and accrued interest receivable | Loans and accrued interest receivable | $ | 17,162,119 | 17,981,414 | Loans and accrued interest receivable | $ | 16,294,069 | 17,981,414 | ||||||||||||||
Restricted cash | Restricted cash | 666,369 | 674,073 | Restricted cash | 678,871 | 674,073 | ||||||||||||||||
Bonds and notes payable | Bonds and notes payable | (16,660,541) | (17,462,456) | Bonds and notes payable | (15,823,651) | (17,462,456) | ||||||||||||||||
Accrued interest payable and other liabilities | Accrued interest payable and other liabilities | (48,267) | (36,276) | Accrued interest payable and other liabilities | (60,461) | (36,276) | ||||||||||||||||
Net assets of consolidated education and other lending variable interest entities | $ | 1,119,680 | 1,156,755 | |||||||||||||||||||
Net assets of consolidated education lending variable interest entities | Net assets of consolidated education lending variable interest entities | $ | 1,088,828 | 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 | Three months ended | Six months ended | ||||||||||||||||||||||||||||||||||||||||||||
March 31, | June 30, | June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Interest income: | Interest income: | Interest income: | ||||||||||||||||||||||||||||||||||||||||||||
Loan interest | Loan interest | $ | 111,377 | 124,117 | Loan interest | $ | 134,706 | 122,005 | 246,083 | 246,123 | ||||||||||||||||||||||||||||||||||||
Investment interest | Investment interest | 13,819 | 4,986 | Investment interest | 16,881 | 11,578 | 30,700 | 16,563 | ||||||||||||||||||||||||||||||||||||||
Total interest income | Total interest income | 125,196 | 129,103 | Total interest income | 151,587 | 133,583 | 276,783 | 262,686 | ||||||||||||||||||||||||||||||||||||||
Interest expense on bonds and notes payable and bank deposits | Interest expense on bonds and notes payable and bank deposits | 48,079 | 27,773 | Interest expense on bonds and notes payable and bank deposits | 73,642 | 49,991 | 121,721 | 77,764 | ||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | 77,117 | 101,330 | Net interest income | 77,945 | 83,592 | 155,062 | 184,922 | ||||||||||||||||||||||||||||||||||||||
Less negative provision for loan losses | (435) | (17,048) | ||||||||||||||||||||||||||||||||||||||||||||
Less provision (negative provision) for loan losses | Less provision (negative provision) for loan losses | 9,409 | 374 | 8,974 | (16,674) | |||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | Net interest income after provision for loan losses | 77,552 | 118,378 | Net interest income after provision for loan losses | 68,536 | 83,218 | 146,088 | 201,596 | ||||||||||||||||||||||||||||||||||||||
Other income/expense: | Other income/expense: | Other income/expense: | ||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | Loan servicing and systems revenue | 136,368 | 111,517 | Loan servicing and systems revenue | 124,873 | 112,094 | 261,241 | 223,611 | ||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | 112,286 | 95,258 | Education technology, services, and payment processing revenue | 91,031 | 76,702 | 203,317 | 171,960 | ||||||||||||||||||||||||||||||||||||||
Other | Other | 9,877 | (2,168) | Other | 12,647 | 22,921 | 22,524 | 18,317 | ||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | Gain on sale of loans | 2,989 | — | Gain on sale of loans | — | 15,271 | 2,989 | 15,271 | ||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | Impairment expense and provision for beneficial interests, net | (6,284) | (500) | (6,284) | 1,936 | |||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments and derivative settlements, net | Derivative market value adjustments and derivative settlements, net | 142,925 | 34,505 | Derivative market value adjustments and derivative settlements, net | 45,024 | (6,989) | 187,949 | 27,516 | ||||||||||||||||||||||||||||||||||||||
Total other income/expense | Total other income/expense | 404,445 | 239,112 | Total other income/expense | 267,291 | 219,499 | 671,736 | 458,611 | ||||||||||||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | Cost to provide education technology, services, and payment processing services | 35,545 | 27,052 | Cost to provide education technology, services, and payment processing services | 30,852 | 21,676 | 66,397 | 48,728 | ||||||||||||||||||||||||||||||||||||||
Operating expenses: | Operating expenses: | Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 149,414 | 115,791 | Salaries and benefits | 141,398 | 118,968 | 290,813 | 234,759 | ||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 16,956 | 20,184 | Depreciation and amortization | 18,250 | 20,236 | 35,206 | 40,419 | ||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 39,499 | 36,698 | Other expenses | 36,940 | 32,587 | 76,439 | 69,286 | ||||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 205,869 | 172,673 | Total operating expenses | 196,588 | 171,791 | 402,458 | 344,464 | ||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 240,583 | 157,765 | Income before income taxes | 108,387 | 109,250 | 348,969 | 267,015 | ||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | 55,697 | 34,861 | Income tax expense | 25,483 | 26,237 | 81,180 | 61,098 | ||||||||||||||||||||||||||||||||||||||
Net income | Net income | 184,886 | 122,904 | Net income | 82,904 | 83,013 | 267,789 | 205,917 | ||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | Net loss attributable to noncontrolling interests | 1,761 | 694 | Net loss attributable to noncontrolling interests | 2,225 | 854 | 3,987 | 1,548 | ||||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc. | Net income attributable to Nelnet, Inc. | $ | 186,647 | 123,598 | Net income attributable to Nelnet, Inc. | $ | 85,129 | 83,867 | 271,776 | 207,465 | ||||||||||||||||||||||||||||||||||||
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 | $ | 4.91 | 3.20 | Net income attributable to Nelnet, Inc. shareholders - basic and diluted | $ | 2.26 | 2.16 | 7.18 | 5.36 | ||||||||||||||||||||||||||||||||||||
Weighted average common shares outstanding - basic and diluted | Weighted average common shares outstanding - basic and diluted | 38,041,834 | 38,603,555 | Weighted average common shares outstanding - basic and diluted | 37,710,214 | 38,741,486 | 37,875,108 | 38,672,902 |
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 March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 184,886 | 122,904 | Net income | $ | 82,904 | 83,013 | 267,789 | 205,917 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) 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 | 1 | Net changes related to foreign currency translation adjustments | $ | (8) | (1) | 1 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net changes related to available-for-sale debt securities: | Net changes related to available-for-sale debt securities: | Net changes related to available-for-sale debt securities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized holding (losses) gains arising during period, net | Unrealized holding (losses) gains arising during period, net | (16,698) | 4,349 | Unrealized holding (losses) gains arising during period, net | (33,822) | 2,897 | (50,520) | 7,246 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification of gains recognized in net income, net of losses | Reclassification of gains recognized in net income, net of losses | (2,793) | (508) | Reclassification of gains recognized in net income, net of losses | (849) | (371) | (3,642) | (879) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax effect | Income tax effect | 4,678 | (14,813) | (922) | 2,919 | Income tax effect | 8,321 | (26,350) | (606) | 1,920 | 12,999 | (41,163) | (1,528) | 4,839 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive (loss) income | Other comprehensive (loss) income | (14,804) | 2,920 | Other comprehensive (loss) income | (26,358) | 1,919 | (41,162) | 4,839 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income | Comprehensive income | 170,082 | 125,824 | Comprehensive income | 56,546 | 84,932 | 226,627 | 210,756 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive loss attributable to noncontrolling interests | Comprehensive loss attributable to noncontrolling interests | 1,761 | 694 | Comprehensive loss attributable to noncontrolling interests | 2,225 | 854 | 3,987 | 1,548 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Comprehensive income attributable to Nelnet, Inc. | Comprehensive income attributable to Nelnet, Inc. | $ | 171,843 | 126,518 | Comprehensive income attributable to Nelnet, Inc. | $ | 58,771 | 85,786 | 230,614 | 212,304 |
NELNET, INC. AND SUBSIDIARIES | CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY | (Dollars in thousands, except share data) | (unaudited) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nelnet, Inc. Shareholders | Nelnet, Inc. Shareholders | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred stock shares | Common stock shares | Preferred stock | Class A common stock | Class B common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive (loss) earnings | Noncontrolling interests | Total equity | Preferred stock shares | Common stock shares | Preferred stock | Class A common stock | Class B common stock | Additional paid-in capital | Retained earnings | Accumulated other comprehensive (loss) earnings | Noncontrolling interests | Total equity | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | Class B | Class A | Class B | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | — | 27,193,154 | 11,155,571 | $ | — | 272 | 112 | 3,794 | 2,621,762 | 6,102 | (3,693) | 2,628,349 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of 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 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of noncontrolling interests | Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 1,400 | 1,400 | Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 5,488 | 5,488 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | — | — | — | — | — | — | — | 123,598 | — | (694) | 122,904 | Net income (loss) | — | — | — | — | — | — | — | 83,867 | — | (854) | 83,013 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | Other comprehensive income | — | — | — | — | — | — | — | — | 2,920 | — | 2,920 | Other comprehensive income | — | — | — | — | — | — | — | — | 1,919 | — | 1,919 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (102) | (102) | Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (6,727) | (6,727) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | — | — | — | — | — | — | — | (8,437) | — | — | (8,437) | Cash dividends on Class A and Class B common stock - $0.22 per share | — | — | �� | — | — | — | — | (8,475) | — | — | (8,475) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures | Issuance of common stock, net of forfeitures | — | 199,442 | — | — | 2 | — | 2,089 | — | — | — | 2,091 | Issuance of common stock, net of forfeitures | — | 32,513 | — | — | — | — | 1,824 | — | — | — | 1,824 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for stock based awards | Compensation expense for stock based awards | — | — | — | — | — | — | 1,985 | — | — | — | 1,985 | Compensation expense for stock based awards | — | — | — | — | — | — | 2,874 | — | — | — | 2,874 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | Repurchase of common stock | — | (26,199) | — | — | — | — | (2,009) | — | — | — | (2,009) | Repurchase of common stock | — | (5,368) | — | — | — | — | (399) | — | — | — | (399) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of common stock | Conversion of common stock | — | 1,400 | (1,400) | — | — | — | — | — | — | — | — | Conversion of common stock | — | 100,000 | (100,000) | — | 1 | (1) | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 June 30, 2021 | 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, 2021 | — | 27,239,654 | 10,676,642 | $ | — | 272 | 107 | 1,000 | 2,940,523 | 9,304 | 1,632 | 2,952,838 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of March 31, 2022 | Balance as of March 31, 2022 | — | 27,151,270 | 10,674,892 | $ | — | 272 | 107 | 1,208 | 3,092,226 | (5,500) | (3,250) | 3,085,063 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of noncontrolling interests | Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 2,004 | 2,004 | Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 9,275 | 9,275 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | — | — | — | — | — | — | — | 186,647 | — | (1,761) | 184,886 | Net income (loss) | — | — | — | — | — | — | — | 85,129 | — | (2,225) | 82,904 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | Other comprehensive loss | — | — | — | — | — | — | — | — | (14,804) | — | (14,804) | Other comprehensive loss | — | — | — | — | — | — | — | — | (26,358) | — | (26,358) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (5,125) | (5,125) | Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (10,037) | (10,037) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends on Class A and Class B common stock - $0.24 per share | Cash dividends on Class A and Class B common stock - $0.24 per share | — | — | — | — | — | — | — | (9,063) | — | — | (9,063) | Cash dividends on Class A and Class B common stock - $0.24 per share | — | — | — | — | — | — | — | (8,973) | — | — | (8,973) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures | Issuance of common stock, net of forfeitures | — | 289,919 | — | — | 3 | — | 4,382 | — | — | — | 4,385 | Issuance of common stock, net of forfeitures | — | 20,720 | — | — | — | — | 2,116 | — | — | — | 2,116 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for stock based awards | Compensation expense for stock based awards | — | — | — | — | — | — | 2,841 | — | — | — | 2,841 | Compensation expense for stock based awards | — | — | — | — | — | — | 3,187 | — | — | — | 3,187 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | Repurchase of common stock | — | (380,053) | — | — | (3) | — | (7,015) | (25,881) | — | — | (32,899) | Repurchase of common stock | — | (558,257) | — | — | (6) | — | (5,331) | (40,695) | — | — | (46,032) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of common stock | — | 1,750 | (1,750) | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | Balance as of June 30, 2022 | — | 26,613,733 | 10,674,892 | $ | — | 266 | 107 | 1,180 | 3,127,687 | (31,858) | (6,237) | 3,091,145 |
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 (loss) earnings | Noncontrolling interests | Total equity | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Class A | Class B | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | — | 27,193,154 | 11,155,571 | $ | — | 272 | 112 | 3,794 | 2,621,762 | 6,102 | (3,693) | 2,628,349 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of noncontrolling interests | — | — | — | — | — | — | — | — | — | 6,888 | 6,888 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | 207,465 | — | (1,548) | 205,917 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | — | — | — | 4,839 | — | 4,839 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (6,829) | (6,829) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends on Class A and Class B common stock - $0.44 per share | — | — | — | — | — | — | — | (16,912) | — | — | (16,912) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures | — | 231,955 | — | — | 2 | — | 3,913 | — | — | — | 3,915 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for stock based awards | — | — | — | — | — | — | 4,859 | — | — | — | 4,859 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | (31,567) | — | — | — | — | (2,408) | — | — | — | (2,408) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of common stock | — | 101,400 | (101,400) | — | 1 | (1) | — | — | �� | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 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 | — | — | — | — | — | — | — | — | — | 11,279 | 11,279 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | — | — | — | — | — | — | — | 271,776 | — | (3,987) | 267,789 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | — | — | — | (41,162) | — | (41,162) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Distribution to noncontrolling interests | — | — | — | — | — | — | — | — | — | (15,161) | (15,161) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends on Class A and Class B common stock - $0.48 per share | — | — | — | — | — | — | — | (18,035) | — | — | (18,035) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Issuance of common stock, net of forfeitures | — | 310,639 | — | — | 3 | — | 6,498 | — | — | — | 6,501 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Compensation expense for stock based awards | — | — | — | — | 6,027 | — | — | — | 6,027 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Repurchase of common stock | — | (938,310) | — | — | (9) | — | (12,345) | (66,577) | — | — | (78,931) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Conversion of common stock | — | 1,750 | (1,750) | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance as of June 30, 2022 | — | 26,613,733 | 10,674,892 | $ | — | 266 | 107 | 1,180 | 3,127,687 | (31,858) | (6,237) | 3,091,145 |
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) | ||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||
March 31, | June 30, | |||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||||||||||
Net income attributable to Nelnet, Inc. | Net income attributable to Nelnet, Inc. | $ | 186,647 | 123,598 | Net income attributable to Nelnet, Inc. | $ | 271,776 | 207,465 | ||||||||||||||
Net loss attributable to noncontrolling interests | Net loss attributable to noncontrolling interests | (1,761) | (694) | Net loss attributable to noncontrolling interests | (3,987) | (1,548) | ||||||||||||||||
Net income | Net income | 184,886 | 122,904 | Net income | 267,789 | 205,917 | ||||||||||||||||
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 | 36,335 | 38,415 | Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs | 74,080 | 76,754 | ||||||||||||||||
Loan discount accretion | Loan discount accretion | (9,927) | (7,218) | Loan discount accretion | (19,554) | (14,606) | ||||||||||||||||
Negative provision for loan losses | (435) | (17,048) | ||||||||||||||||||||
Provision (negative provision) for loan losses | Provision (negative provision) for loan losses | 8,974 | (16,674) | |||||||||||||||||||
Derivative market value adjustments | Derivative market value adjustments | (145,734) | (38,809) | Derivative market value adjustments | (186,135) | (37,194) | ||||||||||||||||
Proceeds from termination of derivative instruments, net | Proceeds from termination of derivative instruments, net | 68,021 | — | |||||||||||||||||||
Proceeds from clearinghouse - initial and variation margin, net of payments | Proceeds from clearinghouse - initial and variation margin, net of payments | 149,649 | 38,081 | Proceeds from clearinghouse - initial and variation margin, net of payments | 133,622 | 38,440 | ||||||||||||||||
Gain on sale of loans | Gain on sale of loans | (2,989) | — | Gain on sale of loans | (2,989) | (15,271) | ||||||||||||||||
Loss on investments, net | Loss on investments, net | 3,207 | 812 | |||||||||||||||||||
(Gain) loss from repurchases of debt, net | (Gain) loss from repurchases of debt, net | (1,071) | 695 | |||||||||||||||||||
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) | Proceeds from sale (purchases) of equity securities, net | 42,398 | (19,764) | ||||||||||||||||
Deferred income tax expense | Deferred income tax expense | 39,443 | 15,405 | Deferred income tax expense | 49,890 | 18,173 | ||||||||||||||||
Non-cash compensation expense | Non-cash compensation expense | 2,920 | 2,052 | Non-cash compensation expense | 6,171 | 4,980 | ||||||||||||||||
Negative provision for beneficial interests | — | (2,436) | ||||||||||||||||||||
Provision (negative provision) for beneficial interests and impairment expense, net | Provision (negative provision) for beneficial interests and impairment expense, net | 6,284 | (1,936) | |||||||||||||||||||
Decrease (increase) in loan and investment accrued interest receivable | Decrease (increase) in loan and investment accrued interest receivable | 10,694 | (114) | Decrease (increase) in loan and investment accrued interest receivable | 184 | (40,488) | ||||||||||||||||
Decrease (increase) in accounts receivable | Decrease (increase) in accounts receivable | 18,442 | (3,831) | Decrease (increase) in accounts receivable | 44,786 | (9,446) | ||||||||||||||||
(Increase) decrease in other assets, net | (Increase) decrease in other assets, net | (1,963) | 5,147 | (Increase) decrease in other assets, net | (8,015) | 32,241 | ||||||||||||||||
Decrease in the carrying amount of ROU asset, net | Decrease in the carrying amount of ROU asset, net | 1,439 | 1,418 | Decrease in the carrying amount of ROU asset, net | 2,735 | 3,962 | ||||||||||||||||
Increase (decrease) in accrued interest payable | Increase (decrease) in accrued interest payable | 2,650 | (23,174) | Increase (decrease) in accrued interest payable | 8,397 | (23,779) | ||||||||||||||||
Decrease in other liabilities, net | Decrease in other liabilities, net | (11,824) | (10,375) | Decrease in other liabilities, net | (12,200) | (13,663) | ||||||||||||||||
Decrease in the carrying amount of lease liability | Decrease in the carrying amount of lease liability | (1,500) | (1,247) | Decrease in the carrying amount of lease liability | (2,860) | (3,288) | ||||||||||||||||
Decrease in due to customers | (89,884) | (70,849) | ||||||||||||||||||||
Other | (110) | — | ||||||||||||||||||||
Net cash provided by operating activities | Net cash provided by operating activities | 185,465 | 48,658 | Net cash provided by operating activities | 483,714 | 185,865 | ||||||||||||||||
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 | (161,334) | (152,329) | Purchases and originations of loans | (396,486) | (1,040,573) | ||||||||||||||||
Purchases of loans from a related party | Purchases of loans from a related party | (1,049) | (19,731) | Purchases of loans from a related party | (7,675) | (20,847) | ||||||||||||||||
Net proceeds from loan repayments, claims, and capitalized interest | Net proceeds from loan repayments, claims, and capitalized interest | 848,188 | 637,275 | Net proceeds from loan repayments, claims, and capitalized interest | 1,792,930 | 1,047,645 | ||||||||||||||||
Proceeds from sale of loans | Proceeds from sale of loans | 15,170 | — | Proceeds from sale of loans | 15,278 | 65,224 | ||||||||||||||||
Purchases of available-for-sale securities | Purchases of available-for-sale securities | (139,195) | (44,335) | Purchases of available-for-sale securities | (735,140) | (363,485) | ||||||||||||||||
Proceeds from sales of available-for-sale securities | Proceeds from sales of available-for-sale securities | 113,980 | 18,077 | Proceeds from sales of available-for-sale securities | 319,752 | 38,511 | ||||||||||||||||
Proceeds from beneficial interest in loan securitizations | Proceeds from beneficial interest in loan securitizations | 7,271 | 8,603 | Proceeds from beneficial interest in loan securitizations | 13,212 | 19,077 | ||||||||||||||||
Purchases of other investments | (73,944) | (71,590) | ||||||||||||||||||||
Purchases of other investments and issuance of notes receivable | Purchases of other investments and issuance of notes receivable | (147,400) | (128,011) | |||||||||||||||||||
Proceeds from other investments | Proceeds from other investments | 9,776 | 110,290 | Proceeds from other investments | 23,955 | 167,821 | ||||||||||||||||
Purchases of property and equipment | Purchases of property and equipment | (15,794) | (17,898) | Purchases of property and equipment | (34,152) | (28,784) | ||||||||||||||||
Business acquisition, net of cash acquired | Business acquisition, net of cash acquired | (7,320) | — | |||||||||||||||||||
Net cash provided by (used in) investing activities | Net cash provided by (used in) investing activities | 836,954 | (243,422) | |||||||||||||||||||
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) | ||||||||||||||||||||
Three months ended | Six months ended | |||||||||||||||||||||
March 31, | June 30, | |||||||||||||||||||||
2022 | 2021 | 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 | $ | (918,270) | (584,303) | Payments on bonds and notes payable | $ | (1,695,697) | (1,073,523) | ||||||||||||||
Proceeds from issuance of bonds and notes payable | Proceeds from issuance of bonds and notes payable | 13,512 | 7,800 | Proceeds from issuance of bonds and notes payable | 159,931 | 1,114,821 | ||||||||||||||||
Payments of debt issuance costs | Payments of debt issuance costs | (312) | (614) | Payments of debt issuance costs | (851) | (3,035) | ||||||||||||||||
Increase in bank deposits, net | Increase in bank deposits, net | 139,732 | 57,197 | Increase in bank deposits, net | 244,159 | 148,208 | ||||||||||||||||
Increase in due to customers | Increase in due to customers | 43,544 | 1,746 | |||||||||||||||||||
Dividends paid | Dividends paid | (9,063) | (8,437) | Dividends paid | (18,035) | (16,912) | ||||||||||||||||
Repurchases of common stock | Repurchases of common stock | (32,899) | (2,009) | Repurchases of common stock | (78,931) | (2,408) | ||||||||||||||||
Proceeds from issuance of common stock | Proceeds from issuance of common stock | 435 | 381 | Proceeds from issuance of common stock | 801 | 689 | ||||||||||||||||
Issuance of noncontrolling interests | Issuance of noncontrolling interests | 2,004 | 1,940 | Issuance of noncontrolling interests | 5,142 | 7,480 | ||||||||||||||||
Distribution to noncontrolling interests | Distribution to noncontrolling interests | (365) | (102) | Distribution to noncontrolling interests | (699) | (423) | ||||||||||||||||
Net cash used in financing activities | (805,226) | (528,147) | ||||||||||||||||||||
Net cash (used in) provided by financing activities | Net cash (used in) provided by financing activities | (1,340,636) | 176,643 | |||||||||||||||||||
Effect of exchange rate changes on cash | Effect of exchange rate changes on cash | 169 | (77) | Effect of exchange rate changes on cash | (179) | (108) | ||||||||||||||||
Net decrease in cash, cash equivalents, and restricted cash | (16,523) | (11,204) | ||||||||||||||||||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | Net (decrease) increase in cash, cash equivalents, and restricted cash | (20,147) | 118,978 | |||||||||||||||||||
Cash, cash equivalents, and restricted cash, beginning of period | Cash, cash equivalents, and restricted cash, beginning of period | 1,194,189 | 958,395 | Cash, cash equivalents, and restricted cash, beginning of period | 1,194,189 | 958,395 | ||||||||||||||||
Cash, cash equivalents, and restricted cash, end of period | Cash, cash equivalents, and restricted cash, end of period | $ | 1,177,666 | 947,191 | Cash, cash equivalents, and restricted cash, end of period | $ | 1,174,042 | 1,077,373 |
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 | $ | 33,895 | 39,686 | Cash disbursements made for interest | $ | 89,281 | 78,904 | ||||||||||||||
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) | $ | 466 | 199 | Cash disbursements made for income taxes, net of refunds and credits received (a) | $ | 21,137 | 14,229 | ||||||||||||||
Cash disbursements made for operating leases | Cash disbursements made for operating leases | $ | 1,887 | 2,098 | Cash disbursements made for operating leases | $ | 3,538 | 4,096 | ||||||||||||||
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 | $ | 746 | 740 | ROU assets obtained in exchange for lease obligations | $ | 746 | 823 | ||||||||||||||
Receipt of beneficial interest in consumer loan securitization | Receipt of beneficial interest in consumer loan securitization | $ | 3,660 | — | Receipt of beneficial interest in consumer loan securitization | $ | 3,660 | 19,280 | ||||||||||||||
Distribution to noncontrolling interests | Distribution to noncontrolling interests | $ | 4,760 | — | Distribution to noncontrolling interests | $ | 14,462 | 6,406 | ||||||||||||||
Issuance of noncontrolling interests | Issuance of noncontrolling interests | $ | — | 540 | Issuance of noncontrolling interests | $ | 6,137 | 592 |
As of | As of | As of | As of | As of | As of | As of | As of | |||||||||||||||||||||||||||||||||||||||
March 31, 2022 | December 31, 2021 | March 31, 2021 | December 31, 2020 | June 30, 2022 | December 31, 2021 | June 30, 2021 | December 31, 2020 | |||||||||||||||||||||||||||||||||||||||
Total cash and cash equivalents | Total cash and cash equivalents | $ | 162,785 | 125,563 | 144,229 | 121,249 | Total cash and cash equivalents | $ | 128,499 | 125,563 | 212,989 | 121,249 | ||||||||||||||||||||||||||||||||||
Restricted cash | Restricted cash | 757,954 | 741,981 | 609,881 | 553,175 | Restricted cash | 754,693 | 741,981 | 616,711 | 553,175 | ||||||||||||||||||||||||||||||||||||
Restricted cash - due to customers | Restricted cash - due to customers | 256,927 | 326,645 | 193,081 | 283,971 | Restricted cash - due to customers | 290,850 | 326,645 | 247,673 | 283,971 | ||||||||||||||||||||||||||||||||||||
Cash, cash equivalents, and restricted cash | Cash, cash equivalents, and restricted cash | $ | 1,177,666 | 1,194,189 | 947,191 | 958,395 | Cash, cash equivalents, and restricted cash | $ | 1,174,042 | 1,194,189 | 1,077,373 | 958,395 |
As of | As of | ||||||||||
March 31, 2022 | December 31, 2021 | ||||||||||
Non-Nelnet Bank: | |||||||||||
Federally insured student loans: | |||||||||||
Stafford and other | $ | 3,741,495 | 3,904,000 | ||||||||
Consolidation | 12,553,882 | 13,187,047 | |||||||||
Total | 16,295,377 | 17,091,047 | |||||||||
Private education loans | 278,537 | 299,442 | |||||||||
Consumer loans | 44,713 | 51,301 | |||||||||
Non-Nelnet Bank loans | 16,618,627 | 17,441,790 | |||||||||
Nelnet Bank: | |||||||||||
Federally insured student loans | 82,789 | 88,011 | |||||||||
Private education loans | 285,468 | 169,890 | |||||||||
Nelnet Bank loans | 368,257 | 257,901 | |||||||||
Accrued interest receivable | 774,774 | 788,552 | |||||||||
Loan discount, net of unamortized loan premiums and deferred origination costs | (22,257) | (25,933) | |||||||||
Allowance for loan losses: | |||||||||||
Non-Nelnet Bank: | |||||||||||
Federally insured loans | (95,995) | (103,381) | |||||||||
Private education loans | (14,622) | (16,143) | |||||||||
Consumer loans | (5,710) | (6,481) | |||||||||
Non-Nelnet Bank allowance for loan losses | (116,327) | (126,005) | |||||||||
Nelnet Bank: | |||||||||||
Federally insured loans | (247) | (268) | |||||||||
Private education loans | (1,251) | (840) | |||||||||
Nelnet Bank allowance for loan losses | (1,498) | (1,108) | |||||||||
$ | 17,621,576 | 18,335,197 |
As of | As of | ||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||
Non-Nelnet Bank: | |||||||||||
Federally insured student loans: | |||||||||||
Stafford and other | $ | 3,548,901 | 3,904,000 | ||||||||
Consolidation | 11,880,710 | 13,187,047 | |||||||||
Total | 15,429,611 | 17,091,047 | |||||||||
Private education loans | 272,943 | 299,442 | |||||||||
Consumer and other loans | 152,583 | 51,301 | |||||||||
Non-Nelnet Bank loans | 15,855,137 | 17,441,790 | |||||||||
Nelnet Bank: | |||||||||||
Federally insured student loans | 77,428 | 88,011 | |||||||||
Private education loans | 346,125 | 169,890 | |||||||||
Nelnet Bank loans | 423,553 | 257,901 | |||||||||
Accrued interest receivable | 780,691 | 788,552 | |||||||||
Loan discount, net of unamortized loan premiums and deferred origination costs | (22,613) | (25,933) | |||||||||
Allowance for loan losses: | |||||||||||
Non-Nelnet Bank: | |||||||||||
Federally insured loans | (92,593) | (103,381) | |||||||||
Private education loans | (15,253) | (16,143) | |||||||||
Consumer and other loans | (10,576) | (6,481) | |||||||||
Non-Nelnet Bank allowance for loan losses | (118,422) | (126,005) | |||||||||
Nelnet Bank: | |||||||||||
Federally insured loans | (258) | (268) | |||||||||
Private education loans | (1,744) | (840) | |||||||||
Nelnet Bank allowance for loan losses | (2,002) | (1,108) | |||||||||
$ | 16,916,344 | 18,335,197 |
As of | As of | As of | As of | |||||||||||||||||||
March 31, 2022 | December 31, 2021 | June 30, 2022 | December 31, 2021 | |||||||||||||||||||
Non-Nelnet Bank: | Non-Nelnet Bank: | Non-Nelnet Bank: | ||||||||||||||||||||
Federally insured student loans (a) | Federally insured student loans (a) | 0.59 | % | 0.60 | % | Federally insured student loans (a) | 0.60 | % | 0.60 | % | ||||||||||||
Private education loans | Private education loans | 5.25 | % | 5.39 | % | Private education loans | 5.59 | % | 5.39 | % | ||||||||||||
Consumer loans | 12.77 | % | 12.63 | % | ||||||||||||||||||
Consumer and other loans (b) | Consumer and other loans (b) | 6.93 | % | 12.63 | % | |||||||||||||||||
Nelnet Bank: | Nelnet Bank: | Nelnet Bank: | ||||||||||||||||||||
Federally insured student loans (a) | Federally insured student loans (a) | 0.30 | % | 0.30 | % | Federally insured student loans (a) | 0.33 | % | 0.30 | % | ||||||||||||
Private education loans | Private education loans | 0.44 | % | 0.49 | % | Private education loans | 0.50 | % | 0.49 | % |
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 | 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 March 31, 2022 | Three months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank: | Non-Nelnet Bank: | Non-Nelnet Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | Federally insured loans | $ | 103,381 | (2,748) | (4,761) | — | 123 | — | 95,995 | Federally insured loans | $ | 95,995 | 2,365 | (5,788) | — | 21 | — | 92,593 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 16,143 | (400) | (1,299) | 176 | — | 2 | 14,622 | Private education loans | 14,622 | 1,217 | (707) | 118 | — | 3 | 15,253 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | 6,481 | 2,284 | (937) | 166 | — | (2,284) | 5,710 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer and other loans | Consumer and other loans | 5,710 | 5,245 | (531) | 152 | — | — | 10,576 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nelnet Bank: | Nelnet Bank: | Nelnet Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | Federally insured loans | 268 | (21) | — | — | — | — | 247 | Federally insured loans | 247 | 13 | (2) | — | — | — | 258 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 840 | 426 | (13) | — | — | (2) | 1,251 | Private education loans | 1,251 | 569 | (73) | — | — | (3) | 1,744 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 127,113 | (459) | (7,010) | 342 | 123 | (2,284) | 117,825 | $ | 117,825 | 9,409 | (7,101) | 270 | 21 | — | 120,424 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2021 | Three months ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank: | Non-Nelnet Bank: | Non-Nelnet Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | Federally insured loans | $ | 128,590 | (7,483) | (61) | — | 800 | — | 121,846 | Federally insured loans | $ | 121,846 | (397) | (1,172) | — | 525 | — | 120,802 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 19,529 | 1,431 | (493) | 202 | — | 1 | 20,670 | Private education loans | 20,670 | (1,004) | (403) | 139 | — | 1 | 19,403 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | 27,256 | (11,418) | (1,950) | 246 | — | — | 14,134 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer and other loans | Consumer and other loans | 14,134 | 1,706 | (1,464) | 235 | — | (9,909) | 4,702 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nelnet Bank: | Nelnet Bank: | Nelnet Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | Federally insured loans | — | 245 | — | — | — | — | 245 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 323 | 422 | — | — | — | (1) | 744 | Private education loans | 744 | (176) | — | — | — | (1) | 567 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 175,698 | (17,048) | (2,504) | 448 | 800 | — | 157,394 | $ | 157,394 | 374 | (3,039) | 374 | 525 | (9,909) | 145,719 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank | Non-Nelnet Bank | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | Federally insured loans | $ | 103,381 | (383) | (10,549) | — | 144 | — | 92,593 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 16,143 | 817 | (2,006) | 295 | — | 4 | 15,253 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer and other loans | Consumer and other loans | 6,481 | 7,529 | (1,469) | 319 | — | (2,284) | 10,576 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nelnet Bank | Nelnet Bank | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | Federally insured loans | 268 | (8) | (2) | — | — | — | 258 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 840 | 995 | (87) | — | — | (4) | 1,744 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 127,113 | 8,950 | (14,113) | 614 | 144 | (2,284) | 120,424 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-Nelnet Bank | Non-Nelnet Bank | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | Federally insured loans | $ | 128,590 | (7,880) | (1,233) | — | 1,325 | — | 120,802 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 19,529 | 427 | (896) | 341 | — | 2 | 19,403 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer and other loans | Consumer and other loans | 27,256 | (9,712) | (3,414) | 481 | — | (9,909) | 4,702 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nelnet Bank | Nelnet Bank | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans | Federally insured loans | — | 245 | — | — | — | — | 245 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 323 | 246 | — | — | — | (2) | 567 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 175,698 | (16,674) | (5,543) | 822 | 1,325 | (9,909) | 145,719 |
As of March 31, 2022 | As of December 31, 2021 | As of March 31, 2021 | As of June 30, 2022 | As of December 31, 2021 | As of June 30, 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 | $ | 839,566 | 5.2 | % | $ | 829,624 | 4.9 | % | $ | 1,006,605 | 5.4 | % | Loans in-school/grace/deferment | $ | 763,957 | 4.9 | % | $ | 829,624 | 4.9 | % | $ | 955,227 | 5.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | Loans in forbearance | 1,160,048 | 7.1 | 1,118,667 | 6.5 | 1,936,553 | 10.4 | Loans in forbearance | 1,246,882 | 8.1 | 1,118,667 | 6.5 | 2,079,368 | 11.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 12,352,543 | 86.4 | % | 12,847,685 | 84.9 | % | 13,787,038 | 88.0 | % | Loans current | 11,551,817 | 86.1 | % | 12,847,685 | 84.9 | % | 13,995,297 | 88.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | Loans delinquent 31-60 days | 462,750 | 3.2 | 895,656 | 5.9 | 425,599 | 2.7 | Loans delinquent 31-60 days | 464,234 | 3.5 | 895,656 | 5.9 | 580,602 | 3.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | Loans delinquent 61-90 days | 282,810 | 2.0 | 352,449 | 2.3 | 234,871 | 1.5 | Loans delinquent 61-90 days | 309,252 | 2.3 | 352,449 | 2.3 | 262,353 | 1.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91-120 days | Loans delinquent 91-120 days | 202,371 | 1.4 | 251,075 | 1.7 | 125,471 | 0.8 | Loans delinquent 91-120 days | 187,452 | 1.4 | 251,075 | 1.7 | 104,124 | 0.7 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 121-270 days | Loans delinquent 121-270 days | 712,753 | 5.0 | 592,449 | 3.9 | 1,026,050 | 6.6 | Loans delinquent 121-270 days | 638,189 | 4.7 | 592,449 | 3.9 | 398,965 | 2.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 271 days or greater | Loans delinquent 271 days or greater | 282,536 | 2.0 | 203,442 | 1.3 | 63,196 | 0.4 | Loans delinquent 271 days or greater | 267,828 | 2.0 | 203,442 | 1.3 | 562,928 | 3.5 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | 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 loans in repayment | 13,418,772 | 87.0 | 100.0 | % | 15,142,756 | 88.6 | 100.0 | % | 15,904,269 | 84.0 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total federally insured loans | Total federally insured loans | 16,295,377 | 100.0 | % | 17,091,047 | 100.0 | % | 18,605,383 | 100.0 | % | Total federally insured loans | 15,429,611 | 100.0 | % | 17,091,047 | 100.0 | % | 18,938,864 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 770,853 | 784,716 | 791,199 | Accrued interest receivable | 775,337 | 784,716 | 830,973 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan discount, net of unamortized premiums and deferred origination costs | Loan discount, net of unamortized premiums and deferred origination costs | (27,317) | (28,309) | (14,608) | Loan discount, net of unamortized premiums and deferred origination costs | (26,674) | (28,309) | (24,129) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (95,995) | (103,381) | (121,846) | Allowance for loan losses | (92,593) | (103,381) | (120,802) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 16,942,918 | $ | 17,744,073 | $ | 19,260,128 | Total federally insured loans and accrued interest receivable, net of allowance for loan losses | $ | 16,085,681 | $ | 17,744,073 | $ | 19,624,906 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 10,226 | 3.7 | % | $ | 9,661 | 3.2 | % | $ | 10,405 | 3.3 | % | Loans in-school/grace/deferment | $ | 15,403 | 5.6 | % | $ | 9,661 | 3.2 | % | $ | 10,195 | 2.9 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | Loans in forbearance | 2,838 | 1.0 | 3,601 | 1.2 | 7,567 | 2.4 | Loans in forbearance | 2,447 | 0.9 | 3,601 | 1.2 | 3,884 | 1.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 260,911 | 98.3 | % | 280,457 | 98.0 | % | 292,840 | 98.9 | % | Loans current | 250,268 | 98.1 | % | 280,457 | 98.0 | % | 330,097 | 98.3 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | Loans delinquent 31-60 days | 1,699 | 0.6 | 2,403 | 0.8 | 1,343 | 0.5 | Loans delinquent 31-60 days | 1,980 | 0.8 | 2,403 | 0.8 | 3,962 | 1.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | Loans delinquent 61-90 days | 1,040 | 0.4 | 976 | 0.3 | 843 | 0.3 | Loans delinquent 61-90 days | 782 | 0.3 | 976 | 0.3 | 818 | 0.2 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91 days or greater | Loans delinquent 91 days or greater | 1,823 | 0.7 | 2,344 | 0.9 | 1,050 | 0.3 | Loans delinquent 91 days or greater | 2,063 | 0.8 | 2,344 | 0.9 | 1,138 | 0.3 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 265,473 | 95.3 | 100.0 | % | 286,180 | 95.6 | 100.0 | % | 296,076 | 94.3 | 100.0 | % | Total loans in repayment | 255,093 | 93.5 | 100.0 | % | 286,180 | 95.6 | 100.0 | % | 336,015 | 96.0 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans | Total private education loans | 278,537 | 100.0 | % | 299,442 | 100.0 | % | 314,048 | 100.0 | % | Total private education loans | 272,943 | 100.0 | % | 299,442 | 100.0 | % | 350,094 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 1,898 | 1,960 | 2,303 | Accrued interest receivable | 2,058 | 1,960 | 2,360 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan discount, net of unamortized premiums | (598) | (1,123) | 2,673 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan premium, net of unamortized discount | Loan premium, net of unamortized discount | 94 | (1,123) | (1,547) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (14,622) | (16,143) | (20,670) | Allowance for loan losses | (15,253) | (16,143) | (19,403) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 265,215 | $ | 284,136 | $ | 298,354 | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 259,842 | $ | 284,136 | $ | 331,504 |
As of March 31, 2022 | As of December 31, 2021 | As of March 31, 2021 | As of June 30, 2022 | As of December 31, 2021 | As of June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans - Non-Nelnet Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer and other loans - Non-Nelnet Bank: | Consumer and other loans - Non-Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in deferment | Loans in deferment | $ | 72 | 0.2 | % | $ | 43 | 0.1 | % | $ | 306 | 0.3 | % | Loans in deferment | $ | 64 | 0.0 | % | $ | 43 | 0.1 | % | $ | 38 | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 43,424 | 97.3 | % | 49,697 | 97.0 | % | 108,126 | 97.9 | % | Loans current | 150,812 | 98.9 | % | 49,697 | 97.0 | % | 41,039 | 96.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | Loans delinquent 31-60 days | 255 | 0.5 | 414 | 0.8 | 760 | 0.7 | Loans delinquent 31-60 days | 515 | 0.3 | 414 | 0.8 | 387 | 0.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | Loans delinquent 61-90 days | 304 | 0.7 | 322 | 0.6 | 577 | 0.5 | Loans delinquent 61-90 days | 435 | 0.3 | 322 | 0.6 | 484 | 1.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91 days or greater | Loans delinquent 91 days or greater | 658 | 1.5 | 825 | 1.6 | 1,023 | 0.9 | Loans delinquent 91 days or greater | 757 | 0.5 | 825 | 1.6 | 819 | 1.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 44,641 | 99.8 | 100.0 | % | 51,258 | 99.9 | 100.0 | % | 110,486 | 99.7 | % | 100.0 | % | Total loans in repayment | 152,519 | 100.0 | 100.0 | % | 51,258 | 99.9 | 100.0 | % | 42,729 | 99.9 | % | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans | 44,713 | 100.0 | % | 51,301 | 100.0 | % | 110,792 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer and other loans | Total consumer and other loans | 152,583 | 100.0 | % | 51,301 | 100.0 | % | 42,767 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 374 | 396 | 934 | Accrued interest receivable | 1,376 | 396 | 328 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan premium | 1,040 | 913 | 1,845 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan discount, net of unamortized premiums | Loan discount, net of unamortized premiums | (1,965) | 913 | 377 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (5,710) | (6,481) | (14,134) | Allowance for loan losses | (10,576) | (6,481) | (4,702) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans and accrued interest receivable, net of allowance for loan losses | $ | 40,417 | $ | 46,129 | $ | 99,437 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | $ | 141,418 | $ | 46,129 | $ | 38,770 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured loans - Nelnet Bank (a): | Federally insured loans - Nelnet Bank (a): | Federally insured loans - Nelnet Bank (a): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in-school/grace/deferment | Loans in-school/grace/deferment | $ | 286 | 0.3 | % | $ | 330 | 0.4 | % | Loans in-school/grace/deferment | $ | 283 | 0.4 | % | $ | 330 | 0.4 | % | $ | 103 | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | Loans in forbearance | 948 | 1.2 | 1,057 | 1.2 | Loans in forbearance | 1,029 | 1.3 | 1,057 | 1.2 | 1,026 | 1.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 80,421 | 98.6 | % | 85,599 | 98.8 | % | Loans current | 74,883 | 98.4 | % | 85,599 | 98.8 | % | 95,402 | 99.3 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 30-59 days | Loans delinquent 30-59 days | 402 | 0.5 | 816 | 1.0 | Loans delinquent 30-59 days | 587 | 0.8 | 816 | 1.0 | 593 | 0.6 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 60-89 days | Loans delinquent 60-89 days | 427 | 0.5 | — | — | Loans delinquent 60-89 days | 165 | 0.2 | — | — | 43 | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 90-119 days | Loans delinquent 90-119 days | 90 | 0.1 | — | — | Loans delinquent 90-119 days | 245 | 0.3 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 120-270 days | Loans delinquent 120-270 days | 157 | 0.2 | 209 | 0.2 | Loans delinquent 120-270 days | 236 | 0.3 | 209 | 0.2 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 271 days or greater | Loans delinquent 271 days or greater | 58 | 0.1 | — | — | Loans delinquent 271 days or greater | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 81,555 | 98.5 | 100.0 | % | 86,624 | 98.4 | 100.0 | % | Total loans in repayment | 76,116 | 98.3 | 100.0 | % | 86,624 | 98.4 | 100.0 | % | 96,038 | 98.8 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total federally insured loans | Total federally insured loans | 82,789 | 100.0 | % | 88,011 | 100.0 | % | Total federally insured loans | 77,428 | 100.0 | % | 88,011 | 100.0 | % | 97,167 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 1,231 | 1,216 | Accrued interest receivable | 1,381 | 1,216 | 1,179 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan premium | Loan premium | 25 | 26 | Loan premium | 23 | 26 | 29 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (247) | (268) | Allowance for loan losses | (258) | (268) | (245) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 83,798 | $ | 88,985 | Total federally insured loans and accrued interest receivable, net of allowance for loan losses | $ | 78,574 | $ | 88,985 | $ | 98,130 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans - Nelnet Bank (a): | Private education loans - Nelnet Bank (a): | Private education loans - Nelnet Bank (a): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in-school/grace/deferment | Loans in-school/grace/deferment | $ | 497 | 0.2 | % | $ | 150 | 0.1 | % | $ | 82 | 0.1 | % | Loans in-school/grace/deferment | $ | 1,160 | 0.3 | % | $ | 150 | 0.1 | % | $ | 82 | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | Loans in forbearance | 317 | 0.1 | 460 | 0.3 | 29 | — | Loans in forbearance | 1,236 | 0.4 | 460 | 0.3 | 133 | 0.1 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 284,081 | 99.8 | % | 169,157 | 99.9 | % | 79,120 | 100.0 | % | Loans current | 343,148 | 99.8 | % | 169,157 | 99.9 | % | 93,189 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 30-59 days | Loans delinquent 30-59 days | 422 | 0.2 | 51 | — | — | — | Loans delinquent 30-59 days | 169 | 0.1 | 51 | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 60-89 days | Loans delinquent 60-89 days | 78 | — | — | — | — | — | Loans delinquent 60-89 days | 412 | 0.1 | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 90 days or greater | Loans delinquent 90 days or greater | 73 | — | 72 | 0.1 | — | ��� | Loans delinquent 90 days or greater | — | — | 72 | 0.1 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 284,654 | 99.7 | 100.0 | % | 169,280 | 99.6 | 100.0 | % | 79,120 | 99.9 | 100.0 | % | Total loans in repayment | 343,729 | 99.3 | 100.0 | % | 169,280 | 99.6 | 100.0 | % | 93,189 | 99.8 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans | Total private education loans | 285,468 | 100.0 | % | 169,890 | 100.0 | % | 79,231 | 100.0 | % | Total private education loans | 346,125 | 100.0 | % | 169,890 | 100.0 | % | 93,404 | 100.0 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 418 | 264 | 125 | Accrued interest receivable | 539 | 264 | 149 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred origination costs | Deferred origination costs | 4,593 | 2,560 | 999 | Deferred origination costs | 5,909 | 2,560 | 1,374 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (1,251) | (840) | (744) | Allowance for loan losses | (1,744) | (840) | (567) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 289,228 | $ | 171,874 | $ | 79,611 | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 350,829 | $ | 171,874 | $ | 94,360 |
Loan balance as of March 31, 2022 | Loan balance as of June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2022 | 2021 | 2020 | Total | Six months ended June 30, 2022 | 2021 | 2020 | Total | |||||||||||||||||||||||||||||||||||||||
FICO at origination: | FICO at origination: | FICO at origination: | ||||||||||||||||||||||||||||||||||||||||||||
Less than 705 | Less than 705 | $ | 2,097 | 5,841 | 99 | 8,037 | Less than 705 | $ | 4,042 | 5,627 | 95 | 9,764 | ||||||||||||||||||||||||||||||||||
705 - 734 | 705 - 734 | 10,935 | 11,391 | 272 | 22,598 | 705 - 734 | 18,060 | 10,959 | 264 | 29,283 | ||||||||||||||||||||||||||||||||||||
735 - 764 | 735 - 764 | 17,278 | 17,906 | 1,049 | 36,233 | 735 - 764 | 31,516 | 17,165 | 1,007 | 49,688 | ||||||||||||||||||||||||||||||||||||
765 - 794 | 765 - 794 | 34,510 | 34,100 | 1,389 | 69,999 | 765 - 794 | 54,493 | 33,080 | 1,353 | 88,926 | ||||||||||||||||||||||||||||||||||||
Greater than 794 | Greater than 794 | 62,116 | 79,633 | 6,852 | 148,601 | Greater than 794 | 85,571 | 76,274 | 6,619 | 168,464 | ||||||||||||||||||||||||||||||||||||
$ | 126,936 | 148,871 | 9,661 | 285,468 | $ | 193,682 | 143,105 | 9,338 | 346,125 |
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 |
Three months ended March 31, 2022 | 2021 | 2020 | 2019 | 2018 | Prior years | Total | Six months ended June 30, 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 | $ | 121 | 3,030 | 1,899 | 3,318 | — | 1,858 | 10,226 | Loans in school/grace/deferment | $ | 1,601 | 7,311 | 1,784 | 3,093 | — | 1,614 | 15,403 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | Loans in forbearance | — | 10 | 372 | 858 | 181 | 1,417 | 2,838 | Loans in forbearance | — | — | 368 | 632 | 47 | 1,400 | 2,447 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 1,452 | 2,796 | 60,651 | 46,107 | 284 | 149,621 | 260,911 | Loans current | 3,947 | 3,071 | 57,126 | 44,044 | 410 | 141,670 | 250,268 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | Loans delinquent 31-60 days | — | 2 | 10 | 239 | — | 1,448 | 1,699 | Loans delinquent 31-60 days | — | — | 104 | 421 | — | 1,455 | 1,980 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | Loans delinquent 61-90 days | — | 13 | 102 | — | — | 925 | 1,040 | Loans delinquent 61-90 days | — | 20 | 52 | — | — | 710 | 782 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91 days or greater | Loans delinquent 91 days or greater | — | — | 87 | — | — | 1,736 | 1,823 | Loans delinquent 91 days or greater | — | 7 | 111 | 79 | — | 1,866 | 2,063 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 1,452 | 2,811 | 60,850 | 46,346 | 284 | 153,730 | 265,473 | Total loans in repayment | 3,947 | 3,098 | 57,393 | 44,544 | 410 | 145,701 | 255,093 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans | Total private education loans | $ | 1,573 | 5,851 | 63,121 | 50,522 | 465 | 157,005 | 278,537 | Total private education loans | $ | 5,548 | 10,409 | 59,545 | 48,269 | 457 | 148,715 | 272,943 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 1,898 | Accrued interest receivable | 2,058 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan discount, net of unamortized premiums | (598) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan premium, net of unamortized discount | Loan premium, net of unamortized discount | 94 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (14,622) | Allowance for loan losses | (15,253) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans and accrued interest receivable, net of allowance for loan losses | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 265,215 | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 259,842 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans - Non-Nelnet Bank: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer and other loans - Non-Nelnet Bank: | Consumer and other loans - Non-Nelnet Bank: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in deferment | Loans in deferment | $ | — | 34 | — | 32 | 6 | — | 72 | Loans in deferment | $ | 16 | 38 | — | — | 10 | — | 64 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 17,335 | 17,475 | 574 | 3,738 | 4,243 | 59 | 43,424 | Loans current | 101,890 | 40,772 | 1,865 | 3,118 | 3,130 | 37 | 150,812 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 31-60 days | Loans delinquent 31-60 days | 32 | 74 | 15 | 99 | 31 | 4 | 255 | Loans delinquent 31-60 days | 163 | 219 | 26 | 60 | 44 | 3 | 515 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 61-90 days | Loans delinquent 61-90 days | — | 181 | 50 | 12 | 57 | 4 | 304 | Loans delinquent 61-90 days | 151 | 194 | 14 | 46 | 30 | — | 435 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 91 days or greater | Loans delinquent 91 days or greater | — | 54 | 39 | 208 | 357 | — | 658 | Loans delinquent 91 days or greater | 68 | 119 | 16 | 196 | 358 | — | 757 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 17,367 | 17,784 | 678 | 4,057 | 4,688 | 67 | 44,641 | Total loans in repayment | 102,272 | 41,304 | 1,921 | 3,420 | 3,562 | 40 | 152,519 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans | $ | 17,367 | 17,818 | 678 | 4,089 | 4,694 | 67 | 44,713 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer and other loans | Total consumer and other loans | $ | 102,288 | 41,342 | 1,921 | 3,420 | 3,572 | 40 | 152,583 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 374 | Accrued interest receivable | 1,376 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan premium | 1,040 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan discount, net of unamortized premiums | Loan discount, net of unamortized premiums | (1,965) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (5,710) | Allowance for loan losses | (10,576) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer loans and accrued interest receivable, net of allowance for loan losses | $ | 40,417 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | $ | 141,418 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans - Nelnet Bank (a): | Private education loans - Nelnet Bank (a): | Private education loans - Nelnet Bank (a): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in school/grace/deferment | Loans in school/grace/deferment | $ | 133 | 364 | — | — | — | — | 497 | Loans in school/grace/deferment | $ | 863 | 297 | — | — | — | — | 1,160 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in forbearance | Loans in forbearance | 139 | 178 | — | — | — | — | 317 | Loans in forbearance | 665 | 440 | 131 | — | — | — | 1,236 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans in repayment status: | Loans in repayment status: | Loans in repayment status: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans current | Loans current | 126,380 | 148,040 | 9,661 | — | — | — | 284,081 | Loans current | 192,101 | 141,840 | 9,207 | — | — | — | 343,148 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 30-59 days | Loans delinquent 30-59 days | 284 | 138 | — | — | — | — | 422 | Loans delinquent 30-59 days | — | 169 | — | — | — | — | 169 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 60-89 days | Loans delinquent 60-89 days | — | 78 | — | — | — | — | 78 | Loans delinquent 60-89 days | 53 | 359 | — | — | — | — | 412 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans delinquent 90 days or greater | Loans delinquent 90 days or greater | — | 73 | — | — | — | — | 73 | Loans delinquent 90 days or greater | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total loans in repayment | Total loans in repayment | 126,664 | 148,329 | 9,661 | — | — | — | 284,654 | Total loans in repayment | 192,154 | 142,368 | 9,207 | — | — | — | 343,729 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans | Total private education loans | $ | 126,936 | 148,871 | 9,661 | — | — | — | 285,468 | Total private education loans | $ | 193,682 | 143,105 | 9,338 | — | — | — | 346,125 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest receivable | Accrued interest receivable | 418 | Accrued interest receivable | 539 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deferred origination costs | Deferred origination costs | 4,593 | Deferred origination costs | 5,909 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses | Allowance for loan losses | (1,251) | Allowance for loan losses | (1,744) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total private education loans and accrued interest receivable, net of allowance for loan losses | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 289,228 | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 350,829 |
As of March 31, 2022 | As of June 30, 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 | $ | 15,144,282 | 0.37% - 2.46% | 5/27/25 - 9/25/69 | Bonds and notes based on indices | $ | 14,323,434 | 1.22% - 3.62% | 2/27/28 - 9/25/69 | ||||||||||||||||||||||||||||||
Bonds and notes based on auction | Bonds and notes based on auction | 225,535 | 0.00% - 1.43% | 3/22/32 - 8/27/46 | Bonds and notes based on auction | 221,385 | 0.00% - 2.30% | 3/32/32 - 8/27/46 | ||||||||||||||||||||||||||||||||
Total FFELP variable-rate bonds and notes | Total FFELP variable-rate bonds and notes | 15,369,817 | Total FFELP variable-rate bonds and notes | 14,544,819 | ||||||||||||||||||||||||||||||||||||
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | 736,079 | 1.42% - 3.45% | 10/25/67 - 8/27/68 | Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | 703,600 | 1.42% - 3.45% | 10/25/67 - 8/27/68 | ||||||||||||||||||||||||||||||||
FFELP loan warehouse facility | FFELP loan warehouse facility | 5,017 | 0.61% | 5/22/23 | FFELP loan warehouse facility | 4,618 | 1.64% | 11/22/23 | ||||||||||||||||||||||||||||||||
Private education loan warehouse facility | Private education loan warehouse facility | 96,714 | 0.55% | 6/30/23 | Private education loan warehouse facility | 89,466 | 1.71% | 10/31/23 | ||||||||||||||||||||||||||||||||
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 | 28,039 | 1.90% / 2.21% | 12/26/40 / 6/25/49 | Variable-rate bonds and notes issued in private education loan asset-backed securitizations | 24,737 | 3.10% / 3.37% | 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 | 26,764 | 3.60% / 5.35% | 12/26/40 / 12/28/43 | Fixed-rate bonds and notes issued in private education loan asset-backed securitization | 25,200 | 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 | 267,481 | 1.08% | 5/4/22 | Participation agreement | 393,480 | 2.41% | 5/4/23 | ||||||||||||||||||||||||||||||||
Repurchase agreements | Repurchase agreements | 384,343 | 0.95% - 1.46% | 4/14/22 - 12/20/23 | Repurchase agreements | 500,690 | 0.97% - 2.81% | 8/8/22 - 11/27/24 | ||||||||||||||||||||||||||||||||
Secured line of credit | 5,000 | 2.05% | 5/30/22 | |||||||||||||||||||||||||||||||||||||
16,919,254 | 16,286,610 | |||||||||||||||||||||||||||||||||||||||
Discount on bonds and notes payable and debt issuance costs | Discount on bonds and notes payable and debt issuance costs | (182,553) | Discount on bonds and notes payable and debt issuance costs | (171,341) | ||||||||||||||||||||||||||||||||||||
Total | Total | $ | 16,736,701 | Total | $ | 16,115,269 |
As of December 31, 2021 | |||||||||||||||||
Carrying amount | Interest rate range | Final maturity | |||||||||||||||
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations: | |||||||||||||||||
Bonds and notes based on indices | $ | 15,887,295 | 0.23% - 2.10% | 5/27/25 - 9/25/69 | |||||||||||||
Bonds and notes based on auction | 248,550 | 0.00% - 1.09% | 3/22/32 - 8/27/46 | ||||||||||||||
Total FFELP variable-rate bonds and notes | 16,135,845 | ||||||||||||||||
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations | 772,935 | 1.42% - 3.45% | 10/25/67 - 8/27/68 | ||||||||||||||
FFELP loan warehouse facility | 5,048 | 0.21% | 5/22/23 | ||||||||||||||
Private education loan warehouse facility | 107,011 | 0.24% | 2/13/23 | ||||||||||||||
Variable-rate bonds and notes issued in private education loan asset-backed securitizations | 31,818 | 1.65% / 1.85% | 12/26/40 / 6/25/49 | ||||||||||||||
Fixed-rate bonds and notes issued in private education loan asset-backed securitization | 28,613 | 3.60% / 5.35% | 12/26/40 / 12/28/43 | ||||||||||||||
Unsecured line of credit | — | — | 9/22/26 | ||||||||||||||
Participation agreement | 253,969 | 0.78% | 5/4/22 | ||||||||||||||
Repurchase agreements | 483,848 | 0.66% - 1.46% | 5/27/22 - 12/20/23 | ||||||||||||||
Secured line of credit | 5,000 | 1.91% | 5/30/22 | ||||||||||||||
17,824,087 | |||||||||||||||||
Discount on bonds and notes payable and debt issuance costs | (192,998) | ||||||||||||||||
Total | $ | 17,631,089 |
Maturity | Maturity | Notional amount | Maturity | Notional amount | ||||||||||||||||||||||||
As of | As of | |||||||||||||||||||||||||||
June 30, 2022 | December 31, 2021 | |||||||||||||||||||||||||||
2022 | 2022 | $ | 2,000,000 | 2022 | $ | 1,000,000 | 2,000,000 | |||||||||||||||||||||
2023 | 2023 | 750,000 | 2023 | 750,000 | 750,000 | |||||||||||||||||||||||
2024 | 2024 | 1,750,000 | 2024 | 1,750,000 | 1,750,000 | |||||||||||||||||||||||
2026 | 2026 | 1,150,000 | 2026 | 1,150,000 | 1,150,000 | |||||||||||||||||||||||
2027 | 2027 | 250,000 | 2027 | 250,000 | 250,000 | |||||||||||||||||||||||
$ | 5,900,000 | $ | 4,900,000 | 5,900,000 |
As of March 31, 2022 | As of December 31, 2021 | As of June 30, 2022 | As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
Maturity | Maturity | Notional amount | Weighted average fixed rate paid by the Company (a) | Notional amount | Weighted average fixed rate paid by the Company (a) | Maturity | Notional amount | Weighted average fixed rate paid by the Company (a) | Notional amount | Weighted average fixed rate paid by the Company (a) | ||||||||||||||||||||||||||||||||||||||||||
2022 | 2022 | $ | — | — | % | $ | 500,000 | 0.94 | % | 2022 | $ | — | — | % | $ | 500,000 | 0.94 | % | ||||||||||||||||||||||||||||||||||
2023 | 2023 | 750,000 | 0.30 | 900,000 | 0.62 | 2023 | 250,000 | 0.32 | 900,000 | 0.62 | ||||||||||||||||||||||||||||||||||||||||||
2024 | 2024 | 2,500,000 | 0.35 | 2,500,000 | 0.35 | 2024 | 2,250,000 | 0.35 | 2,500,000 | 0.35 | ||||||||||||||||||||||||||||||||||||||||||
2025 | 2025 | 500,000 | 0.35 | 500,000 | 0.35 | 2025 | — | — | 500,000 | 0.35 | ||||||||||||||||||||||||||||||||||||||||||
2026 | 2026 | 500,000 | 1.02 | 500,000 | 1.02 | 2026 | 500,000 | 1.02 | 500,000 | 1.02 | ||||||||||||||||||||||||||||||||||||||||||
2031 | 2031 | 100,000 | 1.53 | 100,000 | 1.53 | 2031 | 100,000 | 1.53 | 100,000 | 1.53 | ||||||||||||||||||||||||||||||||||||||||||
$ | 4,350,000 | 0.44 | % | $ | 5,000,000 | 0.55 | % | $ | 3,100,000 | 0.49 | % | $ | 5,000,000 | 0.55 | % |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Settlements: | Settlements: | Settlements: | ||||||||||||||||||||||||||||||||||||||||||||
1:3 basis swaps | 1:3 basis swaps | $ | 396 | (19) | 1:3 basis swaps | $ | 931 | (221) | 1,327 | (240) | ||||||||||||||||||||||||||||||||||||
Interest rate swaps - floor income hedges | Interest rate swaps - floor income hedges | (3,205) | (4,285) | Interest rate swaps - floor income hedges | 3,692 | (5,153) | 487 | (9,438) | ||||||||||||||||||||||||||||||||||||||
Total settlements - income (expense) | Total settlements - income (expense) | (2,809) | (4,304) | Total settlements - income (expense) | 4,623 | (5,374) | 1,814 | (9,678) | ||||||||||||||||||||||||||||||||||||||
Change in fair value: | Change in fair value: | Change in fair value: | ||||||||||||||||||||||||||||||||||||||||||||
1:3 basis swaps | 1:3 basis swaps | 889 | 2,799 | 1:3 basis swaps | (148) | (1,106) | 741 | 1,693 | ||||||||||||||||||||||||||||||||||||||
Interest rate swaps - floor income hedges | Interest rate swaps - floor income hedges | 144,845 | 36,010 | Interest rate swaps - floor income hedges | 40,549 | (509) | 185,394 | 35,501 | ||||||||||||||||||||||||||||||||||||||
Total change in fair value - income (expense) | Total change in fair value - income (expense) | 145,734 | 38,809 | Total change in fair value - income (expense) | 40,401 | (1,615) | 186,135 | 37,194 | ||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments and derivative settlements, net - income (expense) | Derivative market value adjustments and derivative settlements, net - income (expense) | $ | 142,925 | 34,505 | Derivative market value adjustments and derivative settlements, net - income (expense) | $ | 45,024 | (6,989) | 187,949 | 27,516 |
As of March 31, 2022 | As of December 31, 2021 | As of June 30, 2022 | As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized cost | Gross unrealized gains | Gross unrealized losses (a) | Fair value | Amortized cost | Gross unrealized gains | Gross unrealized losses | Fair value | 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 (b) | FFELP loan asset-backed securities- available-for-sale (b) | $ | 507,378 | 12,079 | (2,388) | 517,069 | 480,691 | 14,710 | (719) | 494,682 | FFELP loan asset-backed securities- available-for-sale (b) | $ | 821,154 | 4,509 | (16,028) | 809,635 | 480,691 | 14,710 | (719) | 494,682 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loan asset-backed securities - available-for-sale (c) | Private education loan asset-backed securities - available-for-sale (c) | 388,736 | — | (16,851) | 371,885 | 414,286 | 507 | (2,241) | 412,552 | Private education loan asset-backed securities - available-for-sale (c) | 366,602 | — | (28,161) | 338,441 | 414,286 | 507 | (2,241) | 412,552 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other debt securities - available-for-sale | Other debt securities - available-for-sale | 49,306 | 4 | (78) | 49,232 | 22,435 | — | — | 22,435 | Other debt securities - available-for-sale | 148,686 | 24 | (2,249) | 146,461 | 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 | Total available-for-sale debt securities | $ | 1,336,442 | 4,533 | (46,438) | 1,294,537 | 917,412 | 15,217 | (2,960) | 929,669 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | 71,698 | 71,986 | Equity securities | 36,945 | 71,986 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investments (at fair value) | Total investments (at fair value) | 1,009,884 | 1,001,655 | Total investments (at fair value) | 1,331,482 | 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 | Other debt securities - held-to-maturity | 8,200 | 8,200 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Venture capital and funds: | Venture capital and funds: | Venture capital and funds: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Measurement alternative | Measurement alternative | 164,368 | 157,609 | Measurement alternative | 159,332 | 157,609 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method | Equity method | 74,339 | 67,840 | Equity method | 82,147 | 67,840 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total venture capital and funds | Total venture capital and funds | 238,707 | 225,449 | Total venture capital and funds | 241,479 | 225,449 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Real estate: | Real estate: | Real estate: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity method | Equity method | 50,257 | 47,226 | Equity method | 57,532 | 47,226 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes receivable | Notes receivable | 4,169 | — | Notes receivable | 5,069 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total real estate | Total real estate | 54,426 | 47,226 | Total real estate | 62,601 | 47,226 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment in ALLO: | Investment in ALLO: | Investment in ALLO: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Voting interest/equity method (d) | Voting interest/equity method (d) | 108,773 | 87,247 | Voting interest/equity method (d) | 91,832 | 87,247 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Preferred membership interest and accrued and unpaid preferred return (e) | Preferred membership interest and accrued and unpaid preferred return (e) | 139,459 | 137,342 | Preferred membership interest and accrued and unpaid preferred return (e) | 141,599 | 137,342 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investment in ALLO | Total investment in ALLO | 248,232 | 224,589 | Total investment in ALLO | 233,431 | 224,589 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Beneficial interest in loan securitizations (f): | Beneficial interest in loan securitizations (f): | Beneficial interest in loan securitizations (f): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans | 73,915 | 66,008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loans, including accrued interest | Private education loans, including accrued interest | 77,308 | 66,008 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consumer loans | Consumer loans | 31,222 | 28,366 | Consumer loans | 26,197 | 28,366 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Federally insured student loans | Federally insured student loans | 25,217 | 25,768 | Federally insured student loans | 24,300 | 25,768 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total beneficial interest in loan securitizations | Total beneficial interest in loan securitizations | 130,354 | 120,142 | Total beneficial interest in loan securitizations | 127,805 | 120,142 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Solar (g) | Solar (g) | (44,354) | (42,457) | Solar (g) | (54,499) | (42,457) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Notes receivable | Notes receivable | 33,012 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax liens, affordable housing, and other | Tax liens, affordable housing, and other | 4,129 | 4,115 | Tax liens, affordable housing, and other | 4,939 | 4,115 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investments (not measured at fair value) | Total investments (not measured at fair value) | 639,694 | 587,264 | Total investments (not measured at fair value) | 656,968 | 587,264 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investments | $ | 1,649,578 | $ | 1,588,919 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investments and notes receivable | Total investments and notes receivable | $ | 1,988,450 | $ | 1,588,919 |
Cash and cash equivalents | $ | 1,885 | |||
Accounts receivable | 1,315 | ||||
Property and equipment | 800 | ||||
Other assets | 201 | ||||
Intangible assets | 23,395 | ||||
Excess cost over fair value of net assets acquired (goodwill) | 7,025 | ||||
Other liabilities | (3,937) | ||||
Net assets acquired | 30,684 | ||||
Minority interest | (6,137) | ||||
Remeasurement of previously held investment | (15,342) | ||||
Total consideration paid by the Company | $ | 9,205 |
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 |
Weighted average remaining useful life as of June 30, 2022 (months) | |||||||||||||||||
As of | As of | ||||||||||||||||
June 30, 2022 | December 31, 2021 | ||||||||||||||||
Amortizable intangible assets, net: | |||||||||||||||||
Customer relationships (net of accumulated amortization of $47,328 and $97,398, respectively) | 96 | $ | 48,552 | 47,894 | |||||||||||||
Computer software (net of accumulated amortization of $3,411 and $3,669, respectively) | 52 | 21,534 | 4,135 | ||||||||||||||
Total - amortizable intangible assets, net | 82 | $ | 70,086 | 52,029 |
2022 (April 1 - December 31) | $ | 7,454 | ||||||||
2022 (July 1 - December 31) | 2022 (July 1 - December 31) | $ | 7,176 | |||||||
2023 | 2023 | 9,830 | 2023 | 14,243 | ||||||
2024 | 2024 | 7,457 | 2024 | 11,870 | ||||||
2025 | 2025 | 4,644 | 2025 | 9,057 | ||||||
2026 | 2026 | 4,517 | 2026 | 8,930 | ||||||
2027 and thereafter | 2027 and thereafter | 15,642 | 2027 and thereafter | 18,810 | ||||||
$ | 49,544 | $ | 70,086 |
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 | ||||||||||||||||||||||||||||
Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Total | ||||||||||||||||||||||||||||||
Balance as of December 31, 2021 and March 31, 2022 | $ | 23,639 | 76,570 | 41,883 | — | — | 142,092 | ||||||||||||||||||||||||||||
Goodwill acquired | — | 7,025 | — | — | — | 7,025 | |||||||||||||||||||||||||||||
Balance as of June 30, 2022 | $ | 23,639 | 83,595 | 41,883 | — | — | 149,117 | ||||||||||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 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. | $ | 183,328 | 3,319 | 186,647 | 121,766 | 1,832 | 123,598 | Net income attributable to Nelnet, Inc. | $ | 83,485 | 1,644 | 85,129 | 82,479 | 1,388 | 83,867 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Denominator: | Denominator: | Denominator: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding - basic and diluted | Weighted-average common shares outstanding - basic and diluted | 37,365,339 | 676,495 | 38,041,834 | 38,031,267 | 572,288 | 38,603,555 | Weighted-average common shares outstanding - basic and diluted | 36,981,990 | 728,224 | 37,710,214 | 38,100,092 | 641,394 | 38,741,486 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share - basic and diluted | Earnings per share - basic and diluted | $ | 4.91 | 4.91 | 4.91 | 3.20 | 3.20 | 3.20 | Earnings per share - basic and diluted | $ | 2.26 | 2.26 | 2.26 | 2.16 | 2.16 | 2.16 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common shareholders | Unvested restricted stock shareholders | Total | Common shareholders | Unvested restricted stock shareholders | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Numerator: | Numerator: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc. | Net income attributable to Nelnet, Inc. | $ | 266,735 | 5,041 | 271,776 | 204,209 | 3,256 | 207,465 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Denominator: | Denominator: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-average common shares outstanding - basic and diluted | Weighted-average common shares outstanding - basic and diluted | 37,172,606 | 702,502 | 37,875,108 | 38,065,869 | 607,033 | 38,672,902 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings per share - basic and diluted | Earnings per share - basic and diluted | $ | 7.18 | 7.18 | 7.18 | 5.36 | 5.36 | 5.36 |
Three months ended March 31, 2022 | Three months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Eliminations | Total | Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total interest income | Total interest income | $ | 67 | 339 | 118,598 | 3,030 | 3,992 | (828) | 125,196 | Total interest income | $ | 246 | 874 | 140,396 | 5,212 | 6,235 | (1,376) | 151,587 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | Interest expense | 24 | — | 46,003 | 856 | 2,026 | (828) | 48,079 | Interest expense | 20 | — | 69,708 | 1,639 | 3,652 | (1,376) | 73,642 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | 43 | 339 | 72,595 | 2,174 | 1,966 | — | 77,117 | Net interest income | 226 | 874 | 70,688 | 3,573 | 2,583 | — | 77,945 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less (negative provision) provision for loan losses | — | — | (864) | 429 | — | — | (435) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less provision (negative provision) for loan losses | Less provision (negative provision) for loan losses | — | — | 8,827 | 582 | — | — | 9,409 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | Net interest income after provision for loan losses | 43 | 339 | 73,459 | 1,745 | 1,966 | — | 77,552 | Net interest income after provision for loan losses | 226 | 874 | 61,861 | 2,991 | 2,583 | — | 68,536 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income/expense: | Other income/expense: | Other income/expense: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | Loan servicing and systems revenue | 136,368 | — | — | — | — | — | 136,368 | Loan servicing and systems revenue | 124,873 | — | — | — | — | — | 124,873 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 8,480 | 3 | — | — | — | (8,483) | — | Intersegment revenue | 8,381 | 7 | — | — | — | (8,388) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | — | 112,286 | — | — | — | — | 112,286 | Education technology, services, and payment processing revenue | — | 91,031 | — | — | — | — | 91,031 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 740 | — | 6,511 | 1,500 | 1,125 | — | 9,877 | Other | 611 | — | 5,133 | 157 | 6,747 | — | 12,647 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | Gain on sale of loans | — | — | 2,989 | — | — | — | 2,989 | Gain on sale of loans | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | Impairment expense and provision for beneficial interests, net | — | — | — | — | (6,284) | — | (6,284) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | Derivative settlements, net | — | — | (2,809) | — | — | — | (2,809) | Derivative settlements, net | — | — | 4,623 | — | — | — | 4,623 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | Derivative market value adjustments, net | — | — | 145,734 | — | — | — | 145,734 | Derivative market value adjustments, net | — | — | 40,401 | — | — | — | 40,401 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income/expense | Total other income/expense | 145,588 | 112,289 | 152,425 | 1,500 | 1,125 | (8,483) | 404,445 | Total other income/expense | 133,865 | 91,038 | 50,157 | 157 | 463 | (8,388) | 267,291 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services | Cost of services | — | 35,545 | — | — | — | — | 35,545 | Cost of services | — | 30,852 | — | — | — | — | 30,852 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | Operating expenses: | Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | Salaries and benefits | 91,972 | 31,286 | 591 | 1,554 | 24,012 | — | 149,414 | Salaries and benefits | 83,220 | 32,120 | 614 | 1,714 | 23,729 | — | 141,398 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | Depreciation and amortization | 4,954 | 2,315 | — | 3 | 9,684 | — | 16,956 | Depreciation and amortization | 5,318 | 2,698 | — | 4 | 10,230 | — | 18,250 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | Other expenses | 16,213 | 5,764 | 3,033 | 682 | 13,804 | — | 39,499 | Other expenses | 13,507 | 6,750 | 3,543 | 899 | 12,241 | — | 36,940 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | Intersegment expenses, net | 20,398 | 4,605 | 8,831 | 45 | (25,396) | (8,483) | — | Intersegment expenses, net | 18,558 | 4,805 | 8,513 | 57 | (23,545) | (8,388) | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 133,537 | 43,970 | 12,455 | 2,284 | 22,104 | (8,483) | 205,869 | Total operating expenses | 120,603 | 46,373 | 12,670 | 2,674 | 22,655 | (8,388) | 196,588 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | Income (loss) before income taxes | 12,094 | 33,113 | 213,429 | 961 | (19,013) | — | 240,583 | Income (loss) before income taxes | 13,488 | 14,687 | 99,348 | 474 | (19,609) | — | 108,387 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | Income tax (expense) benefit | (2,903) | (7,947) | (51,223) | (223) | 6,598 | — | (55,697) | Income tax (expense) benefit | (3,237) | (3,525) | (23,844) | (106) | 5,228 | — | (25,483) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) | Net income (loss) | 9,191 | 25,166 | 162,206 | 738 | (12,415) | — | 184,886 | Net income (loss) | 10,251 | 11,162 | 75,504 | 368 | (14,381) | — | 82,904 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | Net loss attributable to noncontrolling interests | — | — | — | — | 1,761 | — | 1,761 | Net loss attributable to noncontrolling interests | — | 53 | — | — | 2,172 | — | 2,225 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Nelnet, Inc. | Net income (loss) attributable to Nelnet, Inc. | $ | 9,191 | 25,166 | 162,206 | 738 | (10,654) | — | 186,647 | Net income (loss) attributable to Nelnet, Inc. | $ | 10,251 | 11,215 | 75,504 | 368 | (12,209) | — | 85,129 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets as of March 31, 2022 | $ | 259,712 | 376,794 | 18,158,972 | 656,242 | 2,066,417 | (528,396) | 20,989,741 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets as of June 30, 2022 | Total assets as of June 30, 2022 | $ | 240,437 | 546,235 | 17,388,228 | 864,659 | 2,273,216 | (688,762) | 20,624,013 |
Three months ended March 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 34 | 263 | 126,402 | 1,376 | 1,246 | (218) | 129,103 | |||||||||||||||||||||||||||||||||||||||
Interest expense | 23 | — | 26,950 | 194 | 824 | (218) | 27,773 | ||||||||||||||||||||||||||||||||||||||||
Net interest income | 11 | 263 | 99,452 | 1,182 | 422 | — | 101,330 | ||||||||||||||||||||||||||||||||||||||||
Less (negative provision) provision for loan losses | — | — | (17,470) | 422 | — | — | (17,048) | ||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 11 | 263 | 116,922 | 760 | 422 | — | 118,378 | ||||||||||||||||||||||||||||||||||||||||
Other income/expense: | |||||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | 111,517 | — | — | — | — | — | 111,517 | ||||||||||||||||||||||||||||||||||||||||
Intersegment revenue | 8,268 | 3 | — | — | — | (8,271) | — | ||||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | — | 95,258 | — | — | — | — | 95,258 | ||||||||||||||||||||||||||||||||||||||||
Other | 1,113 | — | 2,881 | 22 | (6,184) | — | (2,168) | ||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | — | — | (4,304) | — | — | — | (4,304) | ||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | — | — | 38,809 | — | — | — | 38,809 | ||||||||||||||||||||||||||||||||||||||||
Total other income/expense | 120,898 | 95,261 | 37,386 | 22 | (6,184) | (8,271) | 239,112 | ||||||||||||||||||||||||||||||||||||||||
Cost of services | — | 27,052 | — | — | — | — | 27,052 | ||||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | 66,458 | 25,941 | 495 | 1,488 | 21,409 | — | 115,791 | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 8,192 | 3,071 | — | — | 8,920 | — | 20,184 | ||||||||||||||||||||||||||||||||||||||||
Other expenses | 13,285 | 4,822 | 3,777 | 545 | 14,272 | — | 36,698 | ||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | 16,890 | 3,664 | 8,427 | 3 | (20,713) | (8,271) | — | ||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 104,825 | 37,498 | 12,699 | 2,036 | 23,888 | (8,271) | 172,673 | ||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 16,084 | 30,974 | 141,609 | (1,254) | (29,650) | — | 157,765 | ||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | (3,860) | (7,434) | (33,987) | 286 | 10,133 | — | (34,861) | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 12,224 | 23,540 | 107,622 | (968) | (19,517) | — | 122,904 | ||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | 694 | — | 694 | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Nelnet, Inc. | $ | 12,224 | 23,540 | 107,622 | (968) | (18,823) | — | 123,598 | |||||||||||||||||||||||||||||||||||||||
Total assets as of March 31, 2021 | $ | 191,910 | 372,315 | 20,367,532 | 296,908 | 1,148,560 | (210,017) | 22,167,208 |
Three months ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 30 | 210 | 129,965 | 2,041 | 1,524 | (187) | 133,583 | |||||||||||||||||||||||||||||||||||||||
Interest expense | 23 | — | 48,670 | 392 | 1,093 | (187) | 49,991 | ||||||||||||||||||||||||||||||||||||||||
Net interest income | 7 | 210 | 81,295 | 1,649 | 431 | — | 83,592 | ||||||||||||||||||||||||||||||||||||||||
Less provision (negative provision) for loan losses | — | — | 305 | 69 | — | — | 374 | ||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 7 | 210 | 80,990 | 1,580 | 431 | — | 83,218 | ||||||||||||||||||||||||||||||||||||||||
Other income/expense: | |||||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | 112,094 | — | — | — | — | — | 112,094 | ||||||||||||||||||||||||||||||||||||||||
Intersegment revenue | 8,480 | 3 | — | — | — | (8,483) | — | ||||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | — | 76,702 | — | — | — | — | 76,702 | ||||||||||||||||||||||||||||||||||||||||
Other | 701 | — | 2,316 | 4 | 19,900 | — | 22,921 | ||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | — | — | 15,271 | — | — | — | 15,271 | ||||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | — | — | — | �� | (500) | — | (500) | ||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | — | — | (5,374) | — | — | — | (5,374) | ||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | — | — | (1,615) | — | — | — | (1,615) | ||||||||||||||||||||||||||||||||||||||||
Total other income/expense | 121,275 | 76,705 | 10,598 | 4 | 19,400 | (8,483) | 219,499 | ||||||||||||||||||||||||||||||||||||||||
Cost of services | — | 21,676 | — | — | — | — | 21,676 | ||||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | 68,388 | 27,094 | 556 | 1,578 | 21,351 | — | 118,968 | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 7,974 | 2,956 | — | — | 9,305 | — | 20,236 | ||||||||||||||||||||||||||||||||||||||||
Other expenses | 13,273 | 4,437 | 3,567 | 237 | 11,074 | — | 32,587 | ||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | 16,134 | 3,520 | 8,549 | 37 | (19,757) | (8,483) | — | ||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 105,769 | 38,007 | 12,672 | 1,852 | 21,973 | (8,483) | 171,791 | ||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 15,513 | 17,232 | 78,916 | (268) | (2,142) | — | 109,250 | ||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | (3,723) | (4,136) | (18,940) | 64 | 497 | — | (26,237) | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 11,790 | 13,096 | 59,976 | (204) | (1,645) | — | 83,013 | ||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | 854 | — | 854 | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Nelnet, Inc. | $ | 11,790 | 13,096 | 59,976 | (204) | (791) | — | 83,867 | |||||||||||||||||||||||||||||||||||||||
Total assets as of June 30, 2021 | $ | 205,214 | 424,079 | 20,783,755 | 407,611 | 1,489,212 | (281,008) | 23,028,863 |
Six months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||
Loan Servicing and Systems | Education Technology, Services, and Payment Processing | Asset Generation and Management | Nelnet Bank | Corporate and Other Activities | Eliminations | Total | |||||||||||||||||||||||||||||||||||||||||
Total interest income | $ | 313 | 1,213 | 258,994 | 8,241 | 10,227 | (2,205) | 276,783 | |||||||||||||||||||||||||||||||||||||||
Interest expense | 44 | — | 115,711 | 2,494 | 5,678 | (2,205) | 121,721 | ||||||||||||||||||||||||||||||||||||||||
Net interest income | 269 | 1,213 | 143,283 | 5,747 | 4,549 | — | 155,062 | ||||||||||||||||||||||||||||||||||||||||
Less provision (negative provision) for loan losses | — | — | 7,963 | 1,011 | — | — | 8,974 | ||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 269 | 1,213 | 135,320 | 4,736 | 4,549 | — | 146,088 | ||||||||||||||||||||||||||||||||||||||||
Other income/expense: | |||||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | 261,241 | — | — | — | — | — | 261,241 | ||||||||||||||||||||||||||||||||||||||||
Intersegment revenue | 16,860 | 10 | — | — | — | (16,870) | — | ||||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | — | 203,317 | — | — | — | — | 203,317 | ||||||||||||||||||||||||||||||||||||||||
Other | 1,350 | — | 11,644 | 1,659 | 7,872 | — | 22,524 | ||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | — | — | 2,989 | — | — | — | 2,989 | ||||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | — | — | — | — | (6,284) | — | (6,284) | ||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | — | — | 1,814 | — | — | — | 1,814 | ||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | — | — | 186,135 | — | — | — | 186,135 | ||||||||||||||||||||||||||||||||||||||||
Total other income/expense | 279,451 | 203,327 | 202,582 | 1,659 | 1,588 | (16,870) | 671,736 | ||||||||||||||||||||||||||||||||||||||||
Cost of services | — | 66,397 | — | — | — | — | 66,397 | ||||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | 175,192 | 63,406 | 1,205 | 3,268 | 47,742 | — | 290,813 | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 10,272 | 5,013 | — | 7 | 19,914 | — | 35,206 | ||||||||||||||||||||||||||||||||||||||||
Other expenses | 29,721 | 12,514 | 6,576 | 1,584 | 26,045 | — | 76,439 | ||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | 38,955 | 9,410 | 17,344 | 102 | (48,941) | (16,870) | — | ||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 254,140 | 90,343 | 25,125 | 4,961 | 44,760 | (16,870) | 402,458 | ||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 25,580 | 47,800 | 312,777 | 1,434 | (38,623) | — | 348,969 | ||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | (6,139) | (11,472) | (75,066) | (328) | 11,826 | — | (81,180) | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 19,441 | 36,328 | 237,711 | 1,106 | (26,797) | — | 267,789 | ||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | 53 | — | — | 3,934 | — | 3,987 | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Nelnet, Inc. | $ | 19,441 | 36,381 | 237,711 | 1,106 | (22,863) | — | 271,776 | |||||||||||||||||||||||||||||||||||||||
Total assets as of June 30, 2022 | $ | 240,437 | 546,235 | 17,388,228 | 864,659 | 2,273,216 | (688,762) | 20,624,013 |
Six months ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
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 | $ | 63 | 473 | 256,367 | 3,418 | 2,770 | (405) | 262,686 | |||||||||||||||||||||||||||||||||||||||
Interest expense | 47 | — | 75,620 | 586 | 1,916 | (405) | 77,764 | ||||||||||||||||||||||||||||||||||||||||
Net interest income | 16 | 473 | 180,747 | 2,832 | 854 | — | 184,922 | ||||||||||||||||||||||||||||||||||||||||
Less provision (negative provision) for loan losses | — | — | (17,165) | 491 | — | — | (16,674) | ||||||||||||||||||||||||||||||||||||||||
Net interest income after provision for loan losses | 16 | 473 | 197,912 | 2,341 | 854 | — | 201,596 | ||||||||||||||||||||||||||||||||||||||||
Other income/expense: | |||||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | 223,611 | — | — | — | — | — | 223,611 | ||||||||||||||||||||||||||||||||||||||||
Intersegment revenue | 16,748 | 6 | — | — | — | (16,754) | — | ||||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | — | 171,960 | — | — | — | — | 171,960 | ||||||||||||||||||||||||||||||||||||||||
Other | 1,814 | — | 2,760 | 26 | 13,716 | — | 18,317 | ||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | — | — | 15,271 | — | — | — | 15,271 | ||||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | — | — | 2,436 | — | (500) | — | 1,936 | ||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | — | — | (9,678) | — | — | — | (9,678) | ||||||||||||||||||||||||||||||||||||||||
Derivative market value adjustments, net | — | — | 37,194 | — | — | — | 37,194 | ||||||||||||||||||||||||||||||||||||||||
Total other income/expense | 242,173 | 171,966 | 47,983 | 26 | 13,216 | (16,754) | 458,611 | ||||||||||||||||||||||||||||||||||||||||
Cost of services | — | 48,728 | — | — | — | — | 48,728 | ||||||||||||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | 134,846 | 53,035 | 1,051 | 3,065 | 42,761 | — | 234,759 | ||||||||||||||||||||||||||||||||||||||||
Depreciation and amortization | 16,166 | 6,027 | — | — | 18,225 | — | 40,419 | ||||||||||||||||||||||||||||||||||||||||
Other expenses | 26,557 | 9,259 | 7,344 | 781 | 25,346 | — | 69,286 | ||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | 33,024 | 7,184 | 16,976 | 40 | (40,470) | (16,754) | — | ||||||||||||||||||||||||||||||||||||||||
Total operating expenses | 210,593 | 75,505 | 25,371 | 3,886 | 45,862 | (16,754) | 344,464 | ||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes | 31,596 | 48,206 | 220,524 | (1,519) | (31,792) | — | 267,015 | ||||||||||||||||||||||||||||||||||||||||
Income tax (expense) benefit | (7,583) | (11,570) | (52,926) | 351 | 10,630 | — | (61,098) | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) | 24,013 | 36,636 | 167,598 | (1,168) | (21,162) | — | 205,917 | ||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | — | — | — | — | 1,548 | — | 1,548 | ||||||||||||||||||||||||||||||||||||||||
Net income (loss) attributable to Nelnet, Inc. | $ | 24,013 | 36,636 | 167,598 | (1,168) | (19,614) | — | 207,465 | |||||||||||||||||||||||||||||||||||||||
Total assets as of June 30, 2021 | $ | 205,214 | 424,079 | 20,783,755 | 407,611 | 1,489,212 | (281,008) | 23,028,863 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Government servicing - Nelnet | $ | 61,049 | 34,872 | |||||||||||||||||||||||||||||||||||||||||||
Government servicing - Great Lakes | 48,076 | 43,302 | ||||||||||||||||||||||||||||||||||||||||||||
Government servicing | Government servicing | $ | 98,815 | 79,239 | 207,940 | 157,413 | ||||||||||||||||||||||||||||||||||||||||
Private education and consumer loan servicing | Private education and consumer loan servicing | 12,873 | 8,548 | Private education and consumer loan servicing | 12,122 | 12,816 | 24,995 | 21,364 | ||||||||||||||||||||||||||||||||||||||
FFELP servicing | FFELP servicing | 4,248 | 4,670 | FFELP servicing | 4,011 | 4,703 | 8,259 | 9,373 | ||||||||||||||||||||||||||||||||||||||
Software services | Software services | 7,400 | 8,454 | Software services | 7,907 | 7,374 | 15,308 | 15,827 | ||||||||||||||||||||||||||||||||||||||
Outsourced services and other | Outsourced services and other | 2,722 | 11,671 | Outsourced services and other | 2,018 | 7,962 | 4,739 | 19,634 | ||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | Loan servicing and systems revenue | $ | 136,368 | 111,517 | Loan servicing and systems revenue | $ | 124,873 | 112,094 | 261,241 | 223,611 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Tuition payment plan services | Tuition payment plan services | $ | 30,716 | 29,550 | Tuition payment plan services | $ | 27,637 | 26,538 | 58,352 | 56,088 | ||||||||||||||||||||||||||||||||||||
Payment processing | Payment processing | 38,071 | 33,038 | Payment processing | 27,968 | 25,008 | 66,039 | 58,046 | ||||||||||||||||||||||||||||||||||||||
Education technology and services | Education technology and services | 43,251 | 32,527 | Education technology and services | 34,956 | 24,930 | 78,207 | 57,457 | ||||||||||||||||||||||||||||||||||||||
Other | Other | 248 | 143 | Other | 470 | 226 | 719 | 369 | ||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | $ | 112,286 | 95,258 | Education technology, services, and payment processing revenue | $ | 91,031 | 76,702 | 203,317 | 171,960 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Income/gains from investments, net | Income/gains from investments, net | $ | 11,856 | 8,498 | Income/gains from investments, net | $ | 18,127 | 15,591 | 29,983 | 24,089 | ||||||||||||||||||||||||||||||||||||
Borrower late fee income | Borrower late fee income | 2,431 | 442 | Borrower late fee income | 2,436 | 744 | 4,867 | 1,184 | ||||||||||||||||||||||||||||||||||||||
ALLO preferred return | ALLO preferred return | 2,117 | 2,321 | ALLO preferred return | 2,140 | 2,020 | 4,257 | 4,342 | ||||||||||||||||||||||||||||||||||||||
Administration/sponsor fee income | Administration/sponsor fee income | 2,012 | — | 4,134 | — | |||||||||||||||||||||||||||||||||||||||||
Investment advisory services | Investment advisory services | 1,282 | 2,697 | Investment advisory services | 1,482 | 1,145 | 2,764 | 3,842 | ||||||||||||||||||||||||||||||||||||||
Negative provision for beneficial interests investment | — | 2,436 | ||||||||||||||||||||||||||||||||||||||||||||
Loss from ALLO voting membership interest investment | Loss from ALLO voting membership interest investment | (13,130) | (22,219) | Loss from ALLO voting membership interest investment | (16,941) | 1,094 | (30,071) | (21,125) | ||||||||||||||||||||||||||||||||||||||
Loss from solar investments | Loss from solar investments | (1,030) | (1,679) | Loss from solar investments | (1,854) | (2,302) | (2,884) | (3,982) | ||||||||||||||||||||||||||||||||||||||
Other | Other | 6,351 | 5,336 | Other | 5,245 | 4,629 | 9,474 | 9,967 | ||||||||||||||||||||||||||||||||||||||
$ | 9,877 | (2,168) | $ | 12,647 | 22,921 | 22,524 | 18,317 |
As of March 31, 2022 | As of December 31, 2021 | As of June 30, 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 | $ | — | 517,069 | 517,069 | — | 494,682 | 494,682 | FFELP loan asset-backed debt securities - available-for-sale | $ | — | 809,635 | 809,635 | — | 494,682 | 494,682 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private education loan asset-backed debt securities - available-for-sale | Private education loan asset-backed debt securities - available-for-sale | — | 371,885 | 371,885 | — | 412,552 | 412,552 | Private education loan asset-backed debt securities - available-for-sale | — | 338,441 | 338,441 | — | 412,552 | 412,552 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other debt securities - available-for-sale | Other debt securities - available-for-sale | 100 | 49,132 | 49,232 | 100 | 22,335 | 22,435 | Other debt securities - available-for-sale | 100 | 146,361 | 146,461 | 100 | 22,335 | 22,435 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities | Equity securities | 59,943 | — | 59,943 | 63,154 | — | 63,154 | Equity securities | 7,298 | — | 7,298 | 63,154 | — | 63,154 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity securities measured at net asset value (a) | Equity securities measured at net asset value (a) | 11,755 | 8,832 | Equity securities measured at net asset value (a) | 29,647 | 8,832 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total investments | Total investments | 60,043 | 938,086 | 1,009,884 | 63,254 | 929,569 | 1,001,655 | Total investments | 7,398 | 1,294,437 | 1,331,482 | 63,254 | 929,569 | 1,001,655 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | Total assets | $ | 60,043 | 938,086 | 1,009,884 | 63,254 | 929,569 | 1,001,655 | Total assets | $ | 7,398 | 1,294,437 | 1,331,482 | 63,254 | 929,569 | 1,001,655 |
As of March 31, 2022 | As of June 30, 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 | $ | 17,656,032 | 16,846,802 | — | — | 17,656,032 | Loans receivable | $ | 16,533,011 | 16,135,653 | — | — | 16,533,011 | ||||||||||||||||||||||||||||||||||||||||||||
Accrued loan interest receivable | Accrued loan interest receivable | 774,774 | 774,774 | — | 774,774 | — | Accrued loan interest receivable | 780,691 | 780,691 | — | 780,691 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Cash and cash equivalents | Cash and cash equivalents | 162,785 | 162,785 | 162,785 | — | — | Cash and cash equivalents | 128,499 | 128,499 | 128,499 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Investments (at fair value) | Investments (at fair value) | 1,009,884 | 1,009,884 | 60,043 | 938,086 | — | Investments (at fair value) | 1,331,482 | 1,331,482 | 7,398 | 1,294,437 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Beneficial interest in loan securitizations | Beneficial interest in loan securitizations | 145,623 | 130,354 | — | — | 145,623 | Beneficial interest in loan securitizations | 137,726 | 127,805 | — | — | 137,726 | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash | Restricted cash | 757,954 | 757,954 | 757,954 | — | — | Restricted cash | 754,693 | 754,693 | 754,693 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Restricted cash – due to customers | Restricted cash – due to customers | 256,927 | 256,927 | 256,927 | — | — | Restricted cash – due to customers | 290,850 | 290,850 | 290,850 | — | — | ||||||||||||||||||||||||||||||||||||||||||||||
Financial liabilities: | Financial liabilities: | Financial liabilities: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Bonds and notes payable | Bonds and notes payable | 16,705,877 | 16,736,701 | — | 16,705,877 | — | Bonds and notes payable | 15,765,820 | 16,115,269 | — | 15,765,820 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Accrued interest payable | Accrued interest payable | 7,216 | 7,216 | — | 7,216 | — | Accrued interest payable | 12,963 | 12,963 | — | 12,963 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Bank deposits | Bank deposits | 469,559 | 484,047 | 189,319 | 280,240 | — | Bank deposits | 566,293 | 588,474 | 208,003 | 358,290 | — | ||||||||||||||||||||||||||||||||||||||||||||||
Due to customers | Due to customers | 276,191 | 276,191 | 276,191 | — | — | Due to customers | 409,476 | 409,476 | 409,476 | — | — |
As of December 31, 2021 | |||||||||||||||||||||||||||||
Fair value | Carrying value | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Loans receivable | $ | 18,576,272 | 17,546,645 | — | — | 18,576,272 | |||||||||||||||||||||||
Accrued loan interest receivable | 788,552 | 788,552 | — | 788,552 | — | ||||||||||||||||||||||||
Cash and cash equivalents | 125,563 | 125,563 | 125,563 | — | — | ||||||||||||||||||||||||
Investments (at fair value) | 1,001,655 | 1,001,655 | 63,254 | 929,569 | — | ||||||||||||||||||||||||
Beneficial interest in loan securitizations | 142,391 | 120,142 | — | — | 142,391 | ||||||||||||||||||||||||
Restricted cash | 741,981 | 741,981 | 741,981 | — | — | ||||||||||||||||||||||||
Restricted cash – due to customers | 326,645 | 326,645 | 326,645 | — | — | ||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Bonds and notes payable | 17,819,902 | 17,631,089 | — | 17,819,902 | — | ||||||||||||||||||||||||
Accrued interest payable | 4,566 | 4,566 | — | 4,566 | — | ||||||||||||||||||||||||
Bank deposits | 342,463 | 344,315 | 184,897 | 157,566 | — | ||||||||||||||||||||||||
Due to customers | 366,002 | 366,002 | 366,002 | — | — | ||||||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
GAAP net income attributable to Nelnet, Inc. | GAAP net income attributable to Nelnet, Inc. | $ | 186,647 | 123,598 | GAAP net income attributable to Nelnet, Inc. | $ | 85,129 | 83,867 | 271,776 | 207,465 | ||||||||||||||||||||||||||||||||||||
Realized and unrealized derivative market value adjustments | Realized and unrealized derivative market value adjustments | (145,734) | (38,809) | Realized and unrealized derivative market value adjustments | (40,401) | 1,615 | (186,135) | (37,194) | ||||||||||||||||||||||||||||||||||||||
Tax effect (a) | Tax effect (a) | 34,976 | 9,314 | Tax effect (a) | 9,696 | (388) | 44,672 | 8,927 | ||||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | Net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | $ | 75,889 | 94,103 | Net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | $ | 54,424 | 85,094 | 130,313 | 179,198 | ||||||||||||||||||||||||||||||||||||
Earnings per share: | Earnings per share: | Earnings per share: | ||||||||||||||||||||||||||||||||||||||||||||
GAAP net income attributable to Nelnet, Inc. | GAAP net income attributable to Nelnet, Inc. | $ | 4.91 | 3.20 | GAAP net income attributable to Nelnet, Inc. | $ | 2.26 | 2.16 | 7.18 | 5.36 | ||||||||||||||||||||||||||||||||||||
Realized and unrealized derivative market value adjustments | Realized and unrealized derivative market value adjustments | (3.83) | (1.01) | Realized and unrealized derivative market value adjustments | (1.07) | 0.04 | (4.91) | (0.96) | ||||||||||||||||||||||||||||||||||||||
Tax effect (a) | Tax effect (a) | 0.91 | 0.25 | Tax effect (a) | 0.25 | — | 1.17 | 0.23 | ||||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | Net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | $ | 1.99 | 2.44 | Net income attributable to Nelnet, Inc., excluding derivative market value adjustments (b) | $ | 1.44 | 2.20 | 3.44 | 4.63 |
Three months ended March 31, | Three months ended June 30, | |||||||||||||||||||||||||||||||||
2022 | 2021 | Certain Items Impacting Comparability (All dollar amounts below are pre-tax) | 2022 | 2021 | Certain Items Impacting Comparability (All dollar amounts below are pre-tax) | |||||||||||||||||||||||||||||
NDS | NDS | $ | 12,094 | 16,084 | NDS | $ | 13,488 | 15,513 | ||||||||||||||||||||||||||
NBS | NBS | 33,113 | 30,974 | NBS | 14,687 | 17,232 | ||||||||||||||||||||||||||||
AGM | 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 | AGM | 99,348 | 78,916 | •A net gain of $40.4 million related to changes in the fair values of derivative instruments that do not qualify for hedge accounting in the second quarter of 2022 as compared to a net loss of $1.6 million for the same period in 2021 •An increase of $8.2 million in net interest income due to an increase in FFELP core loan spread in 2022 as compared to 2021 •A decrease of $10.1 million in net interest income due to the decrease in the average balance of FFELP loans in the second quarter of 2022 as compared to 2021 •The recognition of an $8.8 million provision for loan losses in the second quarter of 2022, as compared to $0.3 million for the same period in 2021 •The recognition of a gain of $15.3 million on the sale of loans during the second quarter of 2021 | ||||||||||||||||||||||||||
Nelnet Bank | Nelnet Bank | 961 | (1,254) | Nelnet Bank | 474 | (268) | ||||||||||||||||||||||||||||
Corporate | 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 | Corporate | (19,609) | (2,142) | •The recognition of a net loss of $16.9 million for the second quarter of 2022 related to the Company’s investment in ALLO, as compared to net income of $1.1 million for the same period in 2021. During the second quarter of 2021, the Company recorded an adjustment to reflect the cumulative net impact on prior periods (since the deconsolidation of ALLO on December 21, 2020) for the correction of an error that resulted in a $14.0 million increase to the Company’s ALLO investment balance and a corresponding pre-tax increase to income. •The recognition of an impairment charge of $6.3 million in the second quarter of 2022 related primarily to a venture capital investment and certain real estate leases (as the Company continues to downsize its facility footprint as a result of associates working from home) •The recognition of a $15.2 million gain in the second quarter of 2022 as a result of the revaluation of the Company's previously held 50 percent ownership interests in NGWeb Solutions, LLC ("NextGen") (previously accounted for under the equity method) as a result of the Company purchasing an additional 30 percent ownership interests •Investment income of $3.1 million in the second quarter of 2022 as compared to $14.3 million for the same period in 2021. During the second quarter of 2021, the Company recognized realized and unrealized gains from certain real estate and venture capital investments, including realized gains of $6.0 million from the sale of certain real estate investments. | ||||||||||||||||||||||||||
Net income before taxes | 240,583 | 157,765 | ||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 108,387 | 109,250 | |||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | (55,697) | (34,861) | Income tax expense | (25,483) | (26,237) | ||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | Net loss attributable to noncontrolling interests | 1,761 | 694 | Net loss attributable to noncontrolling interests | 2,225 | 854 | ||||||||||||||||||||||||||||
Net income | Net income | $ | 186,647 | 123,598 | Net income | $ | 85,129 | 83,867 |
Six months ended June 30, | |||||||||||||||||
2022 | 2021 | Certain Items Impacting Comparability (All dollar amounts below are pre-tax) | |||||||||||||||
NDS | $ | 25,580 | 31,596 | ||||||||||||||
NBS | 47,800 | 48,206 | |||||||||||||||
AGM | 312,777 | 220,524 | •A net gain of $186.1 million related to changes in the fair values of derivative instruments that do not qualify for hedge accounting in the first half of 2022 as compared to a net gain of $37.2 million for the same period in 2021 •A decrease of $23.8 million in interest expense during the first quarter of 2021 as a result of the Company reversing a historical accrued interest liability on certain bonds, which liability the Company determined is no longer probable of being required to be paid •The recognition of provision for loan losses of $8.0 million in the first half of 2022 as compared to negative provision of $17.2 million for the same period in 2021 •The recognition of a gain of $15.3 million on the sale of loans during the second quarter of 2021 •An increase of $8.4 million in net interest income due to an increase in FFELP core loan spread in 2022 as compared to 2021 •A decrease of $18.4 million in net interest income due to the decrease in the average balance of FFELP loans in the first half of 2022 as compared to 2021 •An increase of $6.3 million in investment interest income in 2022 as compared to 2021 primarily related to AGM's investments in private education loan beneficial interests obtained throughout 2021 as securitizations were being completed by the joint venture to purchase and securitize loans sold by Wells Fargo, and an increase of $4.1 million in revenue recognized during the first half of 2022 from serving as administrator and sponsor for such securitizations | ||||||||||||||
Nelnet Bank | 1,434 | (1,519) | |||||||||||||||
Corporate | (38,623) | (31,792) | •The recognition of a net loss of $30.1 million for the first half of 2022 related to the Company’s investment in ALLO, as compared to a net loss of $21.1 million for the same period in 2021 •The recognition of a $15.2 million gain in the second quarter of 2022 as a result of the revaluation of the Company's previously held 50 percent ownership interests in NextGen (previously accounted for under the equity method) as a result of the Company purchasing an additional 30 percent ownership interests •Investment income of $11.9 million for the first half of 2022 as compared to $22.8 million for the same period in 2021. During the first half of 2021, the Company recognized realized and unrealized gains from certain real estate and venture capital investments, including realized gains of $11.1 million from the sale of certain real estate investments. •The recognition of an impairment charge of $6.3 million in the second quarter of 2022 related primarily to a venture capital investment and certain real estate leases (as the Company continues to downsize its facility footprint as a result of associates working from home) | ||||||||||||||
Income before income taxes | 348,969 | 267,015 | |||||||||||||||
Income tax expense | (81,180) | (61,098) | |||||||||||||||
Net loss attributable to noncontrolling interests | 3,987 | 1,548 | |||||||||||||||
Net income | $ | 271,776 | 207,465 |
Three months ended | |||||||||||||||||||||||||||||
March 31, | |||||||||||||||||||||||||||||
2022 | 2021 | Additional information | |||||||||||||||||||||||||||
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 | 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 | 125,196 | 129,103 | |||||||||||||||||||||||||||
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 | 77,117 | 101,330 | |||||||||||||||||||||||||||
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 | 77,552 | 118,378 | |||||||||||||||||||||||||||
Other income/expense: | |||||||||||||||||||||||||||||
LSS revenue | 136,368 | 111,517 | See LSS operating segment - results of operations. | ||||||||||||||||||||||||||
ETS&PP revenue | 112,286 | 95,258 | See ETS&PP operating segment - results of operations. | ||||||||||||||||||||||||||
Other | 9,877 | (2,168) | See table below for the components of "other." | ||||||||||||||||||||||||||
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 | (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 | 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 | 404,445 | 239,112 | |||||||||||||||||||||||||||
Cost of 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 | 35,545 | 27,052 | |||||||||||||||||||||||||||
Three months ended | Six months ended | ||||||||||||||||||||||||||||
June 30, | June 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | Additional information | |||||||||||||||||||||||||
Loan interest | $ | 134,706 | 122,005 | 246,083 | 246,123 | Increase for the three months ended June 30, 2022 compared to the same period in 2021 was due primarily to an increase in the gross yield earned on loans, partially offset by a decrease in the average balance of loans and in gross fixed rate floor income. For the six months ended June 30, 2022 compared to the same period in 2021, the decrease in the average balance of loans and in gross fixed rate floor income offset the increase in the gross yield earned on loans. | |||||||||||||||||||||||
Investment interest | 16,881 | 11,578 | 30,700 | 16,563 | Includes income from interest-earning deposits and investments and funds in asset-backed securitizations. Increase was due to an increase in interest earning investments and an increase in interest rates in 2022 as compared to 2021. | ||||||||||||||||||||||||
Total interest income | 151,587 | 133,583 | 276,783 | 262,686 | |||||||||||||||||||||||||
Interest expense | 73,642 | 49,991 | 121,721 | 77,764 | Interest expense increased in 2022 as compared to 2021 due to an increase in cost of funds, partially offset by a decrease in the average balance of debt outstanding. In addition, during the first quarter of 2021, the Company reduced interest expense by $23.8 million as a result of reversing a historical accrued interest liability on certain bonds, which liability the Company determined is no longer probable of being required to be paid. The liability was initially recorded when certain asset-backed securitizations were acquired in 2011 and 2013. | ||||||||||||||||||||||||
Net interest income | 77,945 | 83,592 | 155,062 | 184,922 | |||||||||||||||||||||||||
Less provision (negative provision) for loan losses | 9,409 | 374 | 8,974 | (16,674) | Represents the current period provision (negative provision) to reflect the lifetime expected credit losses related to the Company's loan portfolio. See note 2 of the notes to consolidated financial statements included under Part I, Item 1 of this report for the activity in the Company's allowance for loan losses. |
Net interest income after provision for loan losses | Net interest income after provision for loan losses | 68,536 | 83,218 | 146,088 | 201,596 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Other income/expense: | Other income/expense: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LSS revenue | LSS revenue | 124,873 | 112,094 | 261,241 | 223,611 | See LSS operating segment - results of operations. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
ETS&PP revenue | ETS&PP revenue | 91,031 | 76,702 | 203,317 | 171,960 | See ETS&PP operating segment - results of operations. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | Other | 12,647 | 22,921 | 22,524 | 18,317 | See table below for the components of "other." | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Gain on sale of loans | Gain on sale of loans | — | 15,271 | 2,989 | 15,271 | The Company sold $18.1 million (par value) and $77.4 million (par value) of consumer loans in January 2022 and May 2021, respectively, and recognized gains of $3.0 million and $15.3 million, respectively. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | Impairment expense and provision for beneficial interests, net | (6,284) | (500) | (6,284) | 1,936 | During the second quarter of 2022, the Company recorded impairment expense related primarily to a venture capital investment and certain real estate leases. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net | Derivative settlements, net | 4,623 | (5,374) | 1,814 | (9,678) | 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 | 40,401 | (1,615) | 186,135 | 37,194 | Includes the realized and unrealized gains and losses that are caused by changes in fair values of derivatives which do not qualify for "hedge treatment" under GAAP. The majority of the derivative market value adjustments related to the changes in fair value of the Company's floor income interest rate swaps. Such changes reflect that a decrease in the forward yield curve during a reporting period results in a decrease in the fair value of the Company's floor income interest rate swaps, and an increase in the forward yield curve during a reporting period results in an increase in the fair value of such swaps. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income/expense | Total other income/expense | 267,291 | 219,499 | 671,736 | 458,611 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost to provide education technology, services, and payment processing services | Cost to provide education technology, services, and payment processing services | 30,852 | 21,676 | 66,397 | 48,728 | 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. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating expenses: | Operating expenses: | Operating expenses: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | 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. | Salaries and benefits | 141,398 | 118,968 | 290,813 | 234,759 | 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 | 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. | Depreciation and amortization | 18,250 | 20,236 | 35,206 | 40,419 | Includes depreciation of property and equipment and the amortization of intangibles from prior business acquisitions. Amortization of intangible assets for the three months ended June 30, 2022 and 2021 was $2.9 million and $8.3 million, respectively, and for the six months ended June 30 2022 and 2021 was $5.3 million and $16.6 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 Educational Loan Services, Inc. ("Great Lakes") in February 2018 becoming fully amortized as of June 30, 2021. | ||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | 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. | Other expenses | 36,940 | 32,587 | 76,439 | 69,286 | Other expenses includes expenses necessary for operations, such as postage and distribution, consulting and professional fees, occupancy, communications, and certain information technology-related costs. Increase was due to (i) an increase in expenses in the LSS operating segment due to growth of borrowers under the government servicing contracts; and (ii) an increase in expenses in the ETS&PP operating segment due to higher costs for consulting, professional fees, and technology services resulting from investments in new technologies, and an increase in costs for travel and in-person hosted conferences that subsided in 2021 due to the COVID pandemic. | ||||||||||||||||||||||||||||||||||||||||||||||||
Total operating expenses | Total operating expenses | 205,869 | 172,673 | Total operating expenses | 196,588 | 171,791 | 402,458 | 344,464 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 240,583 | 157,765 | Income before income taxes | 108,387 | 109,250 | 348,969 | 267,015 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | 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. | Income tax expense | 25,483 | 26,237 | 81,180 | 61,098 | The effective tax rate was 23.0% and 23.8% for the three months ended June 30, 2022 and 2021, respectively, and 23.0% and 22.8% for the six months ended June 30, 2022 and 2021, respectively. The Company currently expects its effective tax rate for 2022 will range between 22 and 24 percent. | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | 184,886 | 122,904 | Net income | 82,904 | 83,013 | 267,789 | 205,917 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | 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 loss attributable to noncontrolling interests | 2,225 | 854 | 3,987 | 1,548 | Amounts for noncontrolling interests primarily 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. | Net income attributable to Nelnet, Inc. | $ | 186,647 | 123,598 | Net income attributable to Nelnet, Inc. | $ | 85,129 | 83,867 | 271,776 | 207,465 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Income/gains from investments, net (a) | Income/gains from investments, net (a) | $ | 11,856 | 8,498 | Income/gains from investments, net (a) | $ | 18,127 | 15,591 | 29,983 | 24,089 | ||||||||||||||||||||||||||||||||||||
Borrower late fee income (b) | Borrower late fee income (b) | 2,431 | 442 | Borrower late fee income (b) | 2,436 | 744 | 4,867 | 1,184 | ||||||||||||||||||||||||||||||||||||||
ALLO preferred return (c) | ALLO preferred return (c) | 2,117 | 2,321 | ALLO preferred return (c) | 2,140 | 2,020 | 4,257 | 4,342 | ||||||||||||||||||||||||||||||||||||||
Investment advisory services (d) | 1,282 | 2,697 | ||||||||||||||||||||||||||||||||||||||||||||
Negative provision for beneficial interests investment (e) | — | 2,436 | ||||||||||||||||||||||||||||||||||||||||||||
Administration/sponsor fee income (d) | Administration/sponsor fee income (d) | 2,012 | — | 4,134 | — | |||||||||||||||||||||||||||||||||||||||||
Investment advisory services (e) | Investment advisory services (e) | 1,482 | 1,145 | 2,764 | 3,842 | |||||||||||||||||||||||||||||||||||||||||
Loss from ALLO voting membership interest investment (f) | Loss from ALLO voting membership interest investment (f) | (13,130) | (22,219) | Loss from ALLO voting membership interest investment (f) | (16,941) | 1,094 | (30,071) | (21,125) | ||||||||||||||||||||||||||||||||||||||
Loss from solar investments (g) | Loss from solar investments (g) | (1,030) | (1,679) | Loss from solar investments (g) | (1,854) | (2,302) | (2,884) | (3,982) | ||||||||||||||||||||||||||||||||||||||
Other | Other | 6,351 | 5,336 | Other | 5,245 | 4,629 | 9,474 | 9,967 | ||||||||||||||||||||||||||||||||||||||
Other income | Other income | $ | 9,877 | (2,168) | Other income | $ | 12,647 | 22,921 | 22,524 | 18,317 |
As of | As of | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
December 31, 2020 | March 31, 2021 | June 30, 2021 | September 30, 2021 | December 31, 2021 | March 31, 2022 | December 31, 2020 | March 31, 2021 | June 30, 2021 | September 30, 2021 | December 31, 2021 | March 31, 2022 | June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Servicing volume (dollars in millions): | Servicing volume (dollars in millions): | Servicing volume (dollars in millions): | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nelnet Servicing: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government | Government | $ | 191,678 | 195,875 | 195,030 | 198,743 | 215,797 | 243,011 | Government | $ | 443,248 | 453,681 | 452,450 | 461,054 | 478,402 | 507,653 | 542,398 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FFELP | FFELP | 30,763 | 30,084 | 29,361 | 28,244 | 26,916 | 25,646 | FFELP | 30,763 | 30,084 | 29,361 | 28,244 | 26,916 | 25,646 | 24,224 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private and consumer | Private and consumer | 16,226 | 21,397 | 24,758 | 24,229 | 23,702 | 23,433 | Private and consumer | 16,226 | 21,397 | 24,758 | 24,229 | 23,702 | 23,433 | 22,838 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Great Lakes: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government | 251,570 | 257,806 | 257,420 | 262,311 | 262,605 | 264,642 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | $ | 490,237 | 505,162 | 506,569 | 513,527 | 529,020 | 556,732 | Total | $ | 490,237 | 505,162 | 506,569 | 513,527 | 529,020 | 556,732 | 589,460 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of servicing borrowers: | Number of servicing borrowers: | Number of servicing borrowers: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Nelnet Servicing: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government | Government | 5,645,946 | 5,664,094 | 5,636,781 | 5,791,521 | 6,399,414 | 6,978,548 | Government | 13,251,930 | 13,301,364 | 13,253,051 | 13,570,056 | 14,196,520 | 14,727,860 | 15,426,607 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FFELP | FFELP | 1,300,677 | 1,233,461 | 1,198,863 | 1,150,214 | 1,092,066 | 1,034,913 | FFELP | 1,300,677 | 1,233,461 | 1,198,863 | 1,150,214 | 1,092,066 | 1,034,913 | 977,785 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Private and consumer | Private and consumer | 636,136 | 882,477 | 1,039,537 | 1,097,252 | 1,065,439 | 1,030,863 | Private and consumer | 636,136 | 882,477 | 1,039,537 | 1,097,252 | 1,065,439 | 1,030,863 | 998,454 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Great Lakes: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government | 7,605,984 | 7,637,270 | 7,616,270 | 7,778,535 | 7,797,106 | 7,749,312 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | Total | 15,188,743 | 15,417,302 | 15,491,451 | 15,817,522 | 16,354,025 | 16,793,636 | Total | 15,188,743 | 15,417,302 | 15,491,451 | 15,817,522 | 16,354,025 | 16,793,636 | 17,402,846 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of remote hosted borrowers: | Number of remote hosted borrowers: | 6,555,841 | 4,307,342 | 4,338,570 | 4,548,541 | 4,799,368 | 5,487,943 | Number of remote hosted borrowers: | 6,555,841 | 4,307,342 | 4,338,570 | 4,548,541 | 4,799,368 | 5,487,943 | 5,738,381 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Additional information | 2022 | 2021 | 2022 | 2021 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | $ | 43 | 11 | Net interest income | $ | 226 | 7 | 269 | 16 | Increase was due to higher interest rates in 2022 as compared to 2021. | |||||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | Loan servicing and systems revenue | 136,368 | 111,517 | See table below for additional information. | Loan servicing and systems revenue | 124,873 | 112,094 | 261,241 | 223,611 | See table below for additional information. | ||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment servicing revenue | 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. | Intersegment servicing revenue | 8,381 | 8,480 | 16,860 | 16,748 | Represents revenue earned by the LSS operating segment from servicing loans for the AGM and Nelnet Bank operating segments. Increase in the six months ended June 30, 2022 compared to the same period in 2021 was due to ending COVID-19 pandemic borrower relief policies, which increased servicing activities performed for AGM. 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 | 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. | Other income | 611 | 701 | 1,350 | 1,814 | Represents revenue earned from providing administrative support and marketing services, which primarily were to Great Lakes’ former parent company under a contract that expired on January 31, 2021. | ||||||||||||||||||||||||||||||||||||||||||||||||
Total other income | Total other income | 145,588 | 120,898 | Total other income | 133,865 | 121,275 | 279,451 | 242,173 | ||||||||||||||||||||||||||||||||||||||||||||||||||
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. | Salaries and benefits | 83,220 | 68,388 | 175,192 | 134,846 | Increase in 2022 compared to 2021 was due to the Company hiring contact center operations and support associates to prepare for the resumption of federal student loan payments and other activities after the CARES Act suspension expires. The CARES Act suspension was 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. | Depreciation and amortization | 5,318 | 7,974 | 10,272 | 16,166 | 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 June 30, 2022 and 2021 was $0.4 million and $5.5 million, respectively, and for the six months ended June 30, 2022 and 2021 was $0.7 million and $11.0 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 Company's servicing platform for the PHEAA loan volume transferred to its 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. | Other expenses | 13,507 | 13,273 | 29,721 | 26,557 | Increase in 2022 compared to 2021 was due to additional 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. | Intersegment expenses | 18,558 | 16,134 | 38,955 | 33,024 | 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 | Total operating expenses | 120,603 | 105,769 | 254,140 | 210,593 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 12,094 | 16,084 | Income before income taxes | 13,488 | 15,513 | 25,580 | 31,596 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | (2,903) | (3,860) | Represents income tax expense at an effective tax rate of 24%. | Income tax expense | (3,237) | (3,723) | (6,139) | (7,583) | Represents income tax expense at an effective tax rate of 24%. | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 9,191 | 12,224 | Net income | $ | 10,251 | 11,790 | 19,441 | 24,013 | ||||||||||||||||||||||||||||||||||||||||||||||||
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). |
Before tax operating margin | 10.1 | % | 12.8 | % | 9.2 | % | 13.0 | % | 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). | ||||||||||||||||||||
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Additional information | 2022 | 2021 | 2022 | 2021 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 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. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government servicing | Government servicing | $ | 98,815 | 79,239 | 207,940 | 157,413 | Represents revenue from the Company's Department servicing contracts. Increase in the three and six months ended June 30, 2022 compared to the same periods in 2021 was due to (i) an increase in the number of borrowers serviced, including PHEAA borrowers transferred to the Company's servicing platform; (ii) a per borrower rate increase beginning September 1, 2021 to reflect the increase in the cost of labor (Economic Cost Index) per the provisions of the contract; and (iii) a CARES Act forbearance rate increase effective May 1, 2022. Increase in the six months ended June 30, 2022 compared to the same period in 2021 was also due to (i) the recognition of $9.1 million of revenue in the first quarter of 2022 for incremental work related primarily to CARES Act forbearance exit outreach activities to borrowers; and (ii) the recognition of $10.5 million of revenue in the first quarter of 2022 related to the discharge of borrowers under the Total and Permanent Disability ("TPD") discharge program. The Company earns revenue per each borrower that satisfies the requirements for their loan to be discharged under the TPD discharge program. The revenue earned by the Company for the discharge of TPD borrowers and 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 | 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. | Private education and consumer loan servicing | 12,122 | 12,816 | 24,995 | 21,364 | Increase for the six months ended June 30, 2022 compared to the same period in 2021 was due to the addition of the former Wells Fargo private education loan borrowers converted to the Company's servicing platform during March and the second quarter of 2021. Excluding revenue earned on the former Wells Fargo portfolio, revenue for 2022 decreased compared to 2021. The decrease in revenue was due to a decrease in client requested enhanced delinquency services. | ||||||||||||||||||||||||||||||||||||||||||||||||
FFELP servicing | 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. | FFELP servicing | 4,011 | 4,703 | 8,259 | 9,373 | Decrease in 2022 compared to 2021 was due to a decrease in the number of borrowers serviced. Over time, FFELP servicing revenue will continue to decrease as third-party customers' FFELP portfolios pay off. Since late 2021, the Company has experienced accelerated run-off of its FFELP servicing portfolio due to FFELP borrowers consolidating their loans into Federal Direct Loan Program loans as a result of the continued extension of borrower relief under the CARES Act and an initiative offered by the Department for FFELP borrowers to consolidate their loans to qualify for loan forgiveness under the Public Service Loan Forgiveness program. | ||||||||||||||||||||||||||||||||||||||||||||||||
Software services | 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. | Software services | 7,907 | 7,374 | 15,308 | 15,827 | Decrease for the six months ended 2022 compared to the same period in 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 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. | Outsourced services and other | 2,018 | 7,962 | 4,739 | 19,634 | 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 $5.4 million and $15.1 million during the three and six months ended June 30, 2021. There was no revenue for these services during the three and six months ended June 30, 2022. | ||||||||||||||||||||||||||||||||||||||||||||||||
Loan servicing and systems revenue | Loan servicing and systems revenue | $ | 136,368 | 111,517 | Loan servicing and systems revenue | $ | 124,873 | 112,094 | 261,241 | 223,611 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Additional information | 2022 | 2021 | 2022 | 2021 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||||
Net interest income | Net interest income | $ | 339 | 263 | Represents interest income on tuition funds held in custody for schools. | Net interest income | $ | 874 | 210 | 1,213 | 473 | Represents interest income on tuition funds held in custody for schools. Increase was due to higher interest rates in 2022 as compared to 2021. | ||||||||||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | 112,286 | 95,258 | See table below for additional information. | Education technology, services, and payment processing revenue | 91,031 | 76,702 | 203,317 | 171,960 | See table below for additional information. | ||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment revenue | Intersegment revenue | 3 | 3 | Intersegment revenue | 7 | 3 | 10 | 6 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Total other income | Total other income | 112,289 | 95,261 | Total other income | 91,038 | 76,705 | 203,327 | 171,966 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of services | Cost of services | 35,545 | 27,052 | See table below for additional information. | Cost of services | 30,852 | 21,676 | 66,397 | 48,728 | See table below for additional information. | ||||||||||||||||||||||||||||||||||||||||||||||||
Salaries and benefits | 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. | Salaries and benefits | 32,120 | 27,094 | 63,406 | 53,035 | 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 | 2,315 | 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. | Depreciation and amortization | 2,698 | 2,956 | 5,013 | 6,027 | Represents primarily amortization of intangible assets from prior business acquisitions. Amortization of intangible assets related to business acquisitions was $2.5 million and $2.8 million for the three months ended June 30, 2022 and 2021, respectively, and $4.6 million and $5.7 million for the six months ended June 30, 2022 and 2021, respectively. Amortization of intangible assets is expected to increase in future periods as a result of the business combination with NextGen. See note 6 of the notes to the consolidated financial statements included under Part I, Item 1 of this report. | ||||||||||||||||||||||||||||||||||||||||||||||||
Other expenses | 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. | Other expenses | 6,750 | 4,437 | 12,514 | 9,259 | Increase was due to higher costs for consulting, professional fees, and technology services resulting from investments in new technologies. Increase was also due to an increase in costs for travel and in-person hosted conferences that subsided in 2021 due to the COVID pandemic. | ||||||||||||||||||||||||||||||||||||||||||||||||
Intersegment expenses, net | 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. | Intersegment expenses, net | 4,805 | 3,520 | 9,410 | 7,184 | 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 | 43,970 | 37,498 | Total operating expenses | 46,373 | 38,007 | 90,343 | 75,505 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income before income taxes | Income before income taxes | 33,113 | 30,974 | Income before income taxes | 14,687 | 17,232 | 47,800 | 48,206 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax expense | Income tax expense | (7,947) | (7,434) | Represents income tax expense at an effective tax rate of 24%. | Income tax expense | (3,525) | (4,136) | (11,472) | (11,570) | Represents income tax expense at an effective tax rate of 24%. | ||||||||||||||||||||||||||||||||||||||||||||||||
Net income | Net income | $ | 25,166 | 23,540 | Net income | 11,162 | 13,096 | 36,328 | 36,636 | |||||||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to noncontrolling interests | Net loss attributable to noncontrolling interests | 53 | — | 53 | — | Amounts for noncontrolling interests reflect the net loss attributable to the holders of minority membership interests in NextGen, of which the Company became the majority owner on April 30, 2022. See note 6 of the notes to consolidated financial statements included under Part I, Item 1 of this report for additional information. | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to Nelnet, Inc. | Net income attributable to Nelnet, Inc. | $ | 11,215 | 13,096 | 36,381 | 36,636 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Additional information | 2022 | 2021 | 2022 | 2021 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||||
Tuition payment plan services | 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. | Tuition payment plan services | $ | 27,637 | 26,538 | 58,352 | 56,088 | 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 | 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. | Payment processing | 27,968 | 25,008 | 66,039 | 58,046 | Payment volumes in 2022 increased as compared to 2021 for both the K-12 and higher education markets due to new customers and an increase in volume from existing customers. | ||||||||||||||||||||||||||||||||||||||||||||||||
Education technology and services | 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. | Education technology and services | 34,956 | 24,930 | 78,207 | 57,457 | 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 | 248 | 143 | Other | 470 | 226 | 719 | 369 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Education technology, services, and payment processing revenue | Education technology, services, and payment processing revenue | 112,286 | 95,258 | Education technology, services, and payment processing revenue | 91,031 | 76,702 | 203,317 | 171,960 | ||||||||||||||||||||||||||||||||||||||||||||||||||
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. | Cost of services | 30,852 | 21,676 | 66,397 | 48,728 | 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 | $ | 76,741 | 68,206 | Net revenue | $ | 60,179 | 55,026 | 136,920 | 123,232 | ||||||||||||||||||||||||||||||||||||||||||||||||
Before tax operating margin | 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. | Before tax operating margin | 24.4 | % | 31.3 | % | 34.9% | 39.1% | 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 March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 17,441,790 | 19,559,108 | Beginning balance | $ | 16,618,627 | 19,030,223 | 17,441,790 | 19,559,108 | ||||||||||||||||||||||||||||||||||||
Loan acquisitions: | Loan acquisitions: | Loan acquisitions: | ||||||||||||||||||||||||||||||||||||||||||||
Federally insured student loans | Federally insured student loans | 10,202 | 64,731 | Federally insured student loans | 43,747 | 697,738 | 53,949 | 762,469 | ||||||||||||||||||||||||||||||||||||||
Private education loans | Private education loans | 1,026 | 23,038 | Private education loans | 6,484 | 63,413 | 7,510 | 86,451 | ||||||||||||||||||||||||||||||||||||||
Consumer loans | 18,522 | 19,456 | ||||||||||||||||||||||||||||||||||||||||||||
Consumer and other loans | Consumer and other loans | 118,012 | 20,924 | 136,534 | 40,380 | |||||||||||||||||||||||||||||||||||||||||
Total loan acquisitions | Total loan acquisitions | 29,750 | 107,225 | Total loan acquisitions | 168,243 | 782,075 | 197,993 | 889,300 | ||||||||||||||||||||||||||||||||||||||
Repayments, claims, capitalized interest, participations, and other, net | Repayments, claims, capitalized interest, participations, and other, net | (447,140) | (406,565) | Repayments, claims, capitalized interest, participations, and other, net | (478,461) | (190,130) | (925,601) | (596,695) | ||||||||||||||||||||||||||||||||||||||
Loans lost to external parties | Loans lost to external parties | (387,648) | (229,545) | Loans lost to external parties | (453,158) | (213,026) | (840,806) | (442,571) | ||||||||||||||||||||||||||||||||||||||
Consumer loans sold | (18,125) | — | ||||||||||||||||||||||||||||||||||||||||||||
Loans sold | Loans sold | (114) | (77,417) | (18,239) | (77,417) | |||||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | $ | 16,618,627 | 19,030,223 | Ending balance | $ | 15,855,137 | 19,331,725 | 15,855,137 | 19,331,725 |
Three months ended March 31, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Variable loan yield, gross | 2.75 | % | 2.71 | % | |||||||||||||||||||
Consolidation rebate fees | (0.85) | (0.84) | |||||||||||||||||||||
Discount accretion, net of premium and deferred origination costs amortization | 0.03 | 0.00 | |||||||||||||||||||||
Variable loan yield, net | 1.93 | 1.87 | |||||||||||||||||||||
Loan cost of funds - interest expense (a) | (1.09) | (1.07) | |||||||||||||||||||||
Loan cost of funds - derivative settlements (b) (c) | 0.01 | (0.00 | ) | ||||||||||||||||||||
Variable loan spread | 0.85 | 0.80 | |||||||||||||||||||||
Fixed rate floor income, gross | 0.68 | 0.74 | |||||||||||||||||||||
Fixed rate floor income - derivative settlements (b) (d) | (0.08) | (0.09) | |||||||||||||||||||||
Fixed rate floor income, net of settlements on derivatives | 0.60 | 0.65 | |||||||||||||||||||||
Core loan spread | 1.45 | % | 1.45 | % | |||||||||||||||||||
Average balance of AGM's loans | $ | 17,208,909 | 19,494,002 | ||||||||||||||||||||
Average balance of AGM's debt outstanding | 16,773,698 | 19,156,797 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||
Variable loan yield, gross | 3.59 | % | 2.63 | % | 3.16 | % | 2.67 | % | |||||||||||||||
Consolidation rebate fees | (0.85) | (0.84) | (0.85) | (0.85) | |||||||||||||||||||
Discount accretion, net of premium and deferred origination costs amortization | 0.03 | 0.01 | 0.03 | 0.01 | |||||||||||||||||||
Variable loan yield, net | 2.77 | 1.80 | 2.34 | 1.83 | |||||||||||||||||||
Loan cost of funds - interest expense (a) | (1.73) | (1.04) | (1.41) | (1.06) | |||||||||||||||||||
Loan cost of funds - derivative settlements (b) (c) | 0.02 | (0.01) | 0.02 | (0.00 | ) | ||||||||||||||||||
Variable loan spread | 1.06 | 0.75 | 0.95 | 0.77 | |||||||||||||||||||
Fixed rate floor income, gross | 0.46 | 0.78 | 0.57 | 0.76 | |||||||||||||||||||
Fixed rate floor income - derivative settlements (b) (d) | 0.09 | (0.12) | 0.01 | (0.10) | |||||||||||||||||||
Fixed rate floor income, net of settlements on derivatives | 0.55 | 0.66 | 0.58 | 0.66 | |||||||||||||||||||
Core loan spread | 1.61 | % | 1.41 | % | 1.53 | % | 1.43 | % | |||||||||||||||
Average balance of AGM's loans | $ | 16,437,861 | 18,958,042 | 16,823,385 | 19,226,022 | ||||||||||||||||||
Average balance of AGM's debt outstanding | 15,923,648 | 18,656,465 | 16,335,310 | 18,905,249 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Core loan spread | Core loan spread | 1.45 | % | 1.45 | % | Core loan spread | 1.61 | % | 1.41 | % | 1.53 | % | 1.43 | % | ||||||||||||||||||||||||||||||||
Derivative settlements (1:3 basis swaps) | Derivative settlements (1:3 basis swaps) | (0.01) | 0.00 | Derivative settlements (1:3 basis swaps) | (0.02) | 0.01 | (0.02) | 0.00 | ||||||||||||||||||||||||||||||||||||||
Derivative settlements (fixed rate floor income) | Derivative settlements (fixed rate floor income) | 0.08 | 0.09 | Derivative settlements (fixed rate floor income) | (0.09) | 0.12 | (0.01) | 0.10 | ||||||||||||||||||||||||||||||||||||||
Loan spread | Loan spread | 1.52 | % | 1.54 | % | Loan spread | 1.50 | % | 1.54 | % | 1.50 | % | 1.53 | % |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, gross | Fixed rate floor income, gross | $ | 28,993 | 35,539 | Fixed rate floor income, gross | $ | 18,292 | 36,639 | 47,285 | 72,178 | ||||||||||||||||||||||||||||||||||||
Derivative settlements (a) | Derivative settlements (a) | (3,205) | (4,285) | Derivative settlements (a) | 3,692 | (5,153) | 487 | (9,438) | ||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, net | Fixed rate floor income, net | $ | 25,788 | 31,254 | Fixed rate floor income, net | $ | 21,984 | 31,486 | 47,772 | 62,740 | ||||||||||||||||||||||||||||||||||||
Fixed rate floor income contribution to spread, net | Fixed rate floor income contribution to spread, net | 0.60 | % | 0.65 | % | Fixed rate floor income contribution to spread, net | 0.55 | % | 0.66 | % | 0.58 | % | 0.66 | % |
Three months ended March 31, | |||||||||||||||||||||||||||||
2022 | 2021 | Additional information | |||||||||||||||||||||||||||
Net interest income after provision for loan losses | $ | 73,459 | 116,922 | See table below for additional analysis. | |||||||||||||||||||||||||
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 | 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 | (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 | 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 | 152,425 | 37,386 | |||||||||||||||||||||||||||
Salaries and benefits | 591 | 495 | |||||||||||||||||||||||||||
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 | 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 | 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 | 213,429 | 141,609 | |||||||||||||||||||||||||||
Income tax expense | (51,223) | (33,987) | Represents income tax expense at an effective tax rate of 24%. | ||||||||||||||||||||||||||
Net income | $ | 162,206 | 107,622 | ||||||||||||||||||||||||||
Additional information: | |||||||||||||||||||||||||||||
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 | (145,734) | (38,809) | |||||||||||||||||||||||||||
Tax effect | 34,976 | 9,314 | |||||||||||||||||||||||||||
Net income, excluding derivative market value adjustments | $ | 51,448 | 78,127 |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | Additional information | |||||||||||||||||||||||||
Net interest income after provision for loan losses | $ | 61,861 | 80,990 | 135,320 | 197,912 | See table below for additional analysis. | |||||||||||||||||||||||
Other income | 5,133 | 2,316 | 11,644 | 2,760 | Other income includes primarily borrower late fees, income from providing administration activities for third-parties, and income from AGM's investment in a joint venture. Borrower late fees for the three months ended June 30, 2022 and 2021 were $2.4 million and $0.7 million, respectively, and for the six months ended June 30, 2022 and 2021 were $4.9 million and $1.2 million, respectively. The Company suspended borrower late fees in March 2020 to provide borrowers relief as a result of the COVID-19 pandemic. The Company began to recognize borrower late fees again in May 2021 (for private education loans) and October 2021 (for federally insured student loans). The Company recognized revenue of $2.0 million and $4.1 million for the three and six months ended June 30, 2022, respectively, as administrator and sponsor for the securitizations completed during 2021 by the joint venture to purchase and securitize private education loans sold by Wells Fargo. No administrator and sponsor revenue was earned during the first half of 2021. The Company also recognized a loss of $0.4 million and income of $1.2 million for the three months ended June 30, 2022 and 2021, respectively, and income of $1.6 million and $1.2 million for the six months ended June 30, 2022 and 2021, respectively, related to its investment in the joint venture. | ||||||||||||||||||||||||
Gain on sale of loans | — | 15,271 | 2,989 | 15,271 | The Company sold $18.1 million (par value) and $77.4 million (par value) of consumer loans in January 2022 and May 2021, respectively, and recognized gains of $3.0 million and $15.3 million, respectively. | ||||||||||||||||||||||||
Impairment expense and provision for beneficial interests, net | — | — | — | 2,436 | In the first quarter of 2021, due to improved economic conditions, the Company recorded a negative provision of $2.4 million related to its remaining allowance on a consumer loan securitization beneficial interest investment. Such allowance was initially recorded in March 2020 as a result of the COVID-19 pandemic. | ||||||||||||||||||||||||
Derivative settlements, net | 4,623 | (5,374) | 1,814 | (9,678) | 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 | 40,401 | (1,615) | 186,135 | 37,194 | Includes the realized and unrealized gains and losses that are caused by changes in fair values of derivatives which do not qualify for "hedge treatment" under GAAP. The majority of the derivative market value adjustments during 2022 and 2021 related to the changes in fair value of the Company's floor income interest rate swaps. Such changes reflect that a decrease in the forward yield curve during a reporting period results in a decrease in the fair value of the Company's floor income interest rate swaps, and an increase in the forward yield curve during a reporting period results in an increase in the fair value of such swaps. | ||||||||||||||||||||||||
Total other income/expense | 50,157 | 10,598 | 202,582 | 47,983 | |||||||||||||||||||||||||
Salaries and benefits | 614 | 556 | 1,205 | 1,051 | |||||||||||||||||||||||||
Other expenses | 3,543 | 3,567 | 6,576 | 7,344 | The primary component of other expenses is servicing fees paid to third parties. The decrease in 2022 as compared to 2021 was due to a decrease in AGM's loan portfolio. These decreases were partially offset by increased costs due to ending COVID-19 pandemic borrower relief policies which increased servicing activities in the first half of 2022 as compared to the same period in 2021. | ||||||||||||||||||||||||
Intersegment expenses | 8,513 | 8,549 | 17,344 | 16,976 | Amounts include fees paid to the LSS operating segment for the servicing of AGM’s loan portfolio. These amounts exceed the actual cost of servicing the loans. The increase in servicing fees for the six months ended June 30, 2022 as compared to the same period in 2021 was due to ending COVID-19 pandemic borrower relief policies which increased servicing activities in the first half 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 | 12,670 | 12,672 | 25,125 | 25,371 | Total operating expenses were 31 basis points and 27 basis points of the average balance of loans for the three months ended June 30, 2022 and 2021, respectively, and 30 basis points and 26 basis points for the six months ended June 30, 2022 and 2021, respectively. The increase in operating expenses as a percent of the average balance of loans in 2022 as compared to 2021 was due to ending COVID-19 pandemic borrower relief policies which increased servicing activities in the first half of 2022 as compared to the same period in 2021. | ||||||||||||||||||||||||
Income before income taxes | 99,348 | 78,916 | 312,777 | 220,524 | |||||||||||||||||||||||||
Income tax expense | (23,844) | (18,940) | (75,066) | (52,926) | Represents income tax expense at an effective tax rate of 24%. | ||||||||||||||||||||||||
Net income | $ | 75,504 | 59,976 | 237,711 | 167,598 | ||||||||||||||||||||||||
Additional information: | |||||||||||||||||||||||||||||
Net income | $ | 75,504 | 59,976 | 237,711 | 167,598 | 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 | (40,401) | 1,615 | (186,135) | (37,194) | |||||||||||||||||||||||||
Tax effect | 9,696 | (388) | 44,672 | 8,927 | |||||||||||||||||||||||||
Net income, excluding derivative market value adjustments | $ | 44,799 | 61,203 | 96,248 | 139,331 |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | Additional information | 2022 | 2021 | 2022 | 2021 | Additional information | |||||||||||||||||||||||||||||||||||||||||||||||||||
Variable interest income, gross | 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. | Variable interest income, gross | $ | 146,911 | 124,267 | 262,663 | 253,436 | Increase in 2022 compared to 2021 was due to an increase in the gross yield earned on loans, partially offset by a decrease in the average balance of loans. | ||||||||||||||||||||||||||||||||||||||||||||||
Consolidation rebate fees | Consolidation rebate fees | (36,771) | (41,073) | Decrease in 2022 compared to 2021 was due to a decrease in the average consolidation loan balance. | Consolidation rebate fees | (34,952) | (40,250) | (71,723) | (81,323) | 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 | 1,459 | 118 | 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 | 1,474 | 427 | 2,934 | 546 | 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 | 80,441 | 88,215 | Variable interest income, net | 113,433 | 84,444 | 193,874 | 172,659 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest on bonds and notes payable | 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. | Interest on bonds and notes payable | (68,616) | (48,542) | (113,825) | (75,312) | Increase in 2022 compared to 2021 was due to an increase in cost of funds, partially offset by a decrease in the average balance of debt outstanding. In addition, during the first quarter of 2021, the Company reduced interest expense by $23.8 million as a result of reversing a historical accrued interest liability on certain bonds. | ||||||||||||||||||||||||||||||||||||||||||||||||
Derivative settlements, net (a) | Derivative settlements, net (a) | 396 | (19) | Derivative settlements include the net settlements received (paid) related to the Company’s 1:3 basis swaps. | Derivative settlements, net (a) | 931 | (221) | 1,327 | (240) | 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) | 35,628 | 61,425 | Variable loan interest margin, net of settlements on derivatives (a) | 45,748 | 35,681 | 81,376 | 97,107 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, gross | 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. | Fixed rate floor income, gross | 18,292 | 36,639 | 47,285 | 72,178 | Decrease in 2022 compared to 2021 was due to higher interest rates in 2022 as compared to 2021. Subsequent to June 30, 2022 (on July 27, 2022), the Federal Reserve again 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) | (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. | Derivative settlements, net (a) | 3,692 | (5,153) | 487 | (9,438) | Derivative settlements include the settlements received (paid) related to the Company's floor income interest rate swaps. The increase in net derivative settlements received by the Company during the three and six months ended June 30, 2022, as compared to net derivative settlements paid during the same periods in 2021, was due to an increase in interest rates, partially offset by 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 | 25,788 | 31,254 | Fixed rate floor income, net of settlements on derivatives | 21,984 | 31,486 | 47,772 | 62,740 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Core loan interest income (a) | Core loan interest income (a) | 61,416 | 92,679 | Core loan interest income (a) | 67,732 | 67,167 | 129,148 | 159,847 | ||||||||||||||||||||||||||||||||||||||||||||||||||
Investment interest | 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. | Investment interest | 8,671 | 8,882 | 17,835 | 11,530 | Increase for the six months ended June 30, 2022 compared to 2021 was due primarily to an increase in the Company's loan beneficial interest investments during the first half of 2021. | ||||||||||||||||||||||||||||||||||||||||||||||||
Intercompany interest | Intercompany interest | (794) | (179) | Intercompany interest | (1,092) | (128) | (1,886) | (308) | ||||||||||||||||||||||||||||||||||||||||||||||||||
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 | 400 | (1,431) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) negative provision for loan losses - consumer loans | (2,284) | 11,418 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) negative provision for loan losses - federally insured loans | (Provision) negative provision for loan losses - federally insured loans | (2,365) | 397 | 383 | 7,880 | 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 - private education loans | (Provision) negative provision for loan losses - private education loans | (1,217) | 1,004 | (817) | (427) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(Provision) negative provision for loan losses - consumer and other loans | (Provision) negative provision for loan losses - consumer and other loans | (5,245) | (1,706) | (7,529) | 9,712 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
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) | $ | 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. | Net interest income after provision for loan losses (net of settlements on derivatives) (a) | $ | 66,484 | 75,616 | 137,134 | 188,234 | Decrease for the three months ended June 30, 2022 as compared to the same period in 2021 was due to (i) a decrease in the average balance of loans; and (ii) an increase in provision for loan losses. These items were partially offset by an increase in core loan spread. Decrease for the six months ended June 30, 2022 as compared to the same period in 2021 was due to (i) a decrease in the average balance of loans; (ii) an increase in provision for loan losses; and (iii) the reversal of a historical accrued interest liability on certain bonds in the first quarter of 2021. These items were partially offset by an increase in core loan spread and an increase in interest income as a result of an increase in the Company's loan beneficial interest investments during the first half of 2021. |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Beginning balance: | $ | 257,901 | 17,543 | |||||||||||||||||||||||||||||||||||||||||||
Beginning balance | Beginning balance | $ | 368,257 | 79,231 | 257,901 | 17,543 | ||||||||||||||||||||||||||||||||||||||||
Federally insured student loan acquisitions | Federally insured student loan acquisitions | — | 99,973 | — | 99,973 | |||||||||||||||||||||||||||||||||||||||||
Private education loan originations | Private education loan originations | 130,342 | 64,909 | Private education loan originations | 75,204 | 21,246 | 205,546 | 86,155 | ||||||||||||||||||||||||||||||||||||||
Repayments | Repayments | (18,394) | (1,995) | Repayments | (17,373) | (9,004) | (35,767) | (10,998) | ||||||||||||||||||||||||||||||||||||||
Sales to AGM segment | Sales to AGM segment | (1,592) | (1,226) | Sales to AGM segment | (2,535) | (875) | (4,127) | (2,102) | ||||||||||||||||||||||||||||||||||||||
Ending balance: | $ | 368,257 | 79,231 | |||||||||||||||||||||||||||||||||||||||||||
Ending balance | Ending balance | $ | 423,553 | 190,571 | 423,553 | 190,571 |
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 June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | ||||||||||||||||||||||||||||||||||||||||||||
Balance | Rate | Balance | Rate | Balance | Rate | Balance | Rate | ||||||||||||||||||||||||||||||||||||||||
Average assets | |||||||||||||||||||||||||||||||||||||||||||||||
Federally insured student loans | $ | 80,424 | 2.18 | % | $ | 71,440 | 1.35 | % | $ | 82,832 | 1.79 | % | $ | 35,917 | 1.35 | % | |||||||||||||||||||||||||||||||
Private education loans | 331,584 | 3.08 | 86,497 | 3.16 | 280,542 | 3.01 | 65,240 | 3.23 | |||||||||||||||||||||||||||||||||||||||
Cash and investments | 354,336 | 2.53 | 223,322 | 2.01 | 309,965 | 2.16 | 219,489 | 1.96 | |||||||||||||||||||||||||||||||||||||||
Total interest-earning assets | 766,344 | 2.73 | % | 381,259 | 2.15 | % | 673,339 | 2.47 | % | 320,646 | 2.15 | % | |||||||||||||||||||||||||||||||||||
Non-interest-earning assets | 17,144 | 9,237 | 16,214 | 7,896 | |||||||||||||||||||||||||||||||||||||||||||
Total assets | $ | 783,488 | $ | 390,496 | $ | 689,553 | $ | 328,542 | |||||||||||||||||||||||||||||||||||||||
Average liabilities and equity | |||||||||||||||||||||||||||||||||||||||||||||||
Brokered deposits | $ | 249,830 | 1.31 | % | $ | 72,324 | 0.84 | % | $ | 197,783 | 1.27 | % | $ | 37,846 | 0.83 | % | |||||||||||||||||||||||||||||||
Intercompany deposits | 137,812 | 0.83 | 93,434 | 0.25 | 104,380 | 0.62 | 75,161 | 0.26 | |||||||||||||||||||||||||||||||||||||||
Retail and other deposits | 287,656 | 0.75 | 117,770 | 0.62 | 278,393 | 0.68 | 109,661 | 0.61 | |||||||||||||||||||||||||||||||||||||||
Total interest-bearing liabilities | 675,298 | 0.97 | % | 283,528 | 0.55 | % | 580,556 | 0.87 | % | 222,668 | 0.53 | % | |||||||||||||||||||||||||||||||||||
Non-interest-bearing liabilities | 5,226 | 4,297 | 5,509 | 3,587 | |||||||||||||||||||||||||||||||||||||||||||
Equity | 102,964 | 102,671 | 103,488 | 102,287 | |||||||||||||||||||||||||||||||||||||||||||
Total liabilities and equity | $ | 783,488 | $ | 390,496 | $ | 689,553 | $ | 328,542 | |||||||||||||||||||||||||||||||||||||||
Three months ended March 31, | |||||||||||||||||||||||||||||
2022 | 2021 | Additional information | |||||||||||||||||||||||||||
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 | 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 | 2,174 | 1,182 | |||||||||||||||||||||||||||
Provision for loan losses | 429 | 422 | |||||||||||||||||||||||||||
Net interest income after provision for loan losses | 1,745 | 760 | |||||||||||||||||||||||||||
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 | 1,554 | 1,488 | Represents salaries and benefits of Nelnet Bank associates and third-party contract labor. | ||||||||||||||||||||||||||
Depreciation | 3 | — | |||||||||||||||||||||||||||
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 | 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 | 2,284 | 2,036 | |||||||||||||||||||||||||||
Income (loss) before income taxes | 961 | (1,254) | |||||||||||||||||||||||||||
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) | $ | 738 | (968) |
Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | Additional information | |||||||||||||||||||||||||
Total interest income | $ | 5,212 | 2,041 | 8,241 | 3,418 | Represents interest earned on Nelnet Bank's FFELP and private education student loans, cash, and investments. Increase was due to an increase of these balances and interest rates in 2022 as compared to 2021. | |||||||||||||||||||||||
Interest expense | 1,639 | 392 | 2,494 | 586 | Represents interest expense on deposits. Increase was due to an increase of deposits and interest rates in 2022 as compared to 2021. | ||||||||||||||||||||||||
Net interest income | 3,573 | 1,649 | 5,747 | 2,832 | |||||||||||||||||||||||||
Provision for loan losses | 582 | 69 | 1,011 | 491 | Represents the current period provision expense to reflect the current lifetime expected credit losses related to Nelnet Bank's loan portfolio. Increase was due to an increase in loans originated in 2022 as compared to 2021. | ||||||||||||||||||||||||
Net interest income after provision for loan losses | 2,991 | 1,580 | 4,736 | 2,341 | |||||||||||||||||||||||||
Other income | 157 | 4 | 1,659 | 26 | 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 | 1,714 | 1,578 | 3,268 | 3,065 | Represents salaries and benefits of Nelnet Bank associates and third-party contract labor. | ||||||||||||||||||||||||
Other expenses | 903 | 237 | 1,591 | 781 | Represents various expenses such as consulting and professional fees, Nelnet Bank director fees, occupancy, certain information technology-related costs, insurance, marketing, and other operating expenses. Increase was due to the overall growth of Nelnet Bank activities. | ||||||||||||||||||||||||
Intersegment expenses | 57 | 37 | 102 | 40 | 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 $1.5 million and $1.0 million for the three months ended June 30, 2022 and 2021, respectively, and $2.8 million and $1.7 million for the six months ended June 30, 2022 and 2021, respectively. | ||||||||||||||||||||||||
Total operating expenses | 2,674 | 1,852 | 4,961 | 3,886 | |||||||||||||||||||||||||
Income (loss) before income taxes | 474 | (268) | 1,434 | (1,519) | |||||||||||||||||||||||||
Income tax (expense) benefit | (106) | 64 | (328) | 351 | Represents income tax (expense) benefit at an effective tax rate of 22.3% and 24.1% for the three months ended June 30, 2022 and 2021, respectively, and 22.9% and 23.1% for the six months ended June 30, 2022 and 2021, respectively. | ||||||||||||||||||||||||
Net income (loss) | $ | 368 | (204) | 1,106 | (1,168) |
Cash and cash equivalents | $ | 128,499 | ||||||
Less: Cash and cash equivalents held at Nelnet Bank (1) | (33,218) | |||||||
Net cash and cash equivalents | 95,281 | |||||||
Available-for-sale (AFS) debt securities (investments) - at fair value | 1,294,537 | |||||||
Less: AFS debt securities held at Nelnet Bank - at fair value (1) | (393,457) | |||||||
AFS debt securities serving as collateral on participation agreement - at fair value (2) | (370,522) | |||||||
AFS debt securities serving as collateral on repurchase agreements - at fair value (3) | (338,441) | |||||||
Net AFS debt securities (investments) - at fair value | 192,117 | |||||||
Unencumbered private, consumer, and other loans (Non-Nelnet Bank) | 244,234 | |||||||
Repurchased Nelnet issued asset-backed debt securities - at par (not included on consolidated financial statements) (4) | 431,211 | |||||||
Less: Repurchased Nelnet issued asset-backed debt securities serving as collateral on repurchase agreements - at par | (206,925) | |||||||
224,286 | ||||||||
Unused capacity on unsecured line of credit (5) | 495,000 | |||||||
Sources of liquidity as of June 30, 2022 | $ | 1,250,918 |
As of | |||||||||||
Carrying amount | Final maturity | ||||||||||
Bonds and notes issued in asset-backed securitizations | $ | ||||||||||
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 | $ | ||||||||||||
4x | $ | $ | ||||||||||||
10x | $ | $ |
Total shares repurchased | Purchase price (in thousands) | Average price of shares repurchased (per share) | |||||||||||||||
Quarter ended March 31, 2022 | 380,053 | $ | 32,899 | 86.56 | |||||||||||||
Total shares repurchased | Purchase price (in thousands) | Average price of shares repurchased (per share) | |||||||||||||||
Quarter ended March 31, 2022 | 380,053 | $ | 32,899 | 86.56 | |||||||||||||
Quarter ended June 30, 2022 | 558,257 | 46,032 | 82.46 | ||||||||||||||
Total | 938,310 | $ | 78,931 | 84.12 |
As of March 31, 2022 | As of December 31, 2021 | As of June 30, 2022 | As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||||||||||||||||||||||||||||||||||
Fixed-rate loan assets | Fixed-rate loan assets | $ | 6,954,856 | 41.8 | % | $ | 7,434,068 | 42.6 | % | Fixed-rate loan assets | $ | 3,972,191 | 25.1 | % | $ | 7,434,068 | 42.6 | % | ||||||||||||||||||||||||||||
Variable-rate loan assets | Variable-rate loan assets | 9,663,771 | 58.2 | 10,007,722 | 57.4 | Variable-rate loan assets | 11,882,946 | 74.9 | 10,007,722 | 57.4 | ||||||||||||||||||||||||||||||||||||
Total | Total | $ | 16,618,627 | 100.0 | % | $ | 17,441,790 | 100.0 | % | Total | $ | 15,855,137 | 100.0 | % | $ | 17,441,790 | 100.0 | % | ||||||||||||||||||||||||||||
Fixed-rate debt instruments | Fixed-rate debt instruments | $ | 762,843 | 4.7 | % | $ | 801,548 | 4.7 | % | Fixed-rate debt instruments | $ | 728,800 | 4.7 | % | $ | 801,548 | 4.7 | % | ||||||||||||||||||||||||||||
Variable-rate debt instruments | Variable-rate debt instruments | 15,499,587 | 95.3 | 16,279,722 | 95.3 | Variable-rate debt instruments | 14,663,640 | 95.3 | 16,279,722 | 95.3 | ||||||||||||||||||||||||||||||||||||
Total | Total | $ | 16,262,430 | 100.0 | % | $ | 17,081,270 | 100.0 | % | Total | $ | 15,392,440 | 100.0 | % | $ | 17,081,270 | 100.0 | % |
Three months ended March 31, | Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||||||||||||||||||||||
2022 | 2021 | 2022 | 2021 | 2022 | 2021 | |||||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, gross | Fixed rate floor income, gross | $ | 28,993 | 35,539 | Fixed rate floor income, gross | $ | 18,292 | 36,639 | 47,285 | 72,178 | ||||||||||||||||||||||||||||||||||||
Derivative settlements (a) | Derivative settlements (a) | (3,205) | (4,285) | Derivative settlements (a) | 3,692 | (5,153) | 487 | (9,438) | ||||||||||||||||||||||||||||||||||||||
Fixed rate floor income, net | Fixed rate floor income, net | $ | 25,788 | 31,254 | Fixed rate floor income, net | $ | 21,984 | 31,486 | 47,772 | 62,740 |
Fixed interest rate range | Borrower/lender weighted average yield | Estimated variable conversion rate (a) | Loan balance | |||||||||||||||||
< 3.0% | 2.88% | 0.24% | $ | 896,417 | ||||||||||||||||
3.0 - 3.49% | 3.19% | 0.55% | 1,216,340 | |||||||||||||||||
3.5 - 3.99% | 3.65% | 1.01% | 1,170,382 | |||||||||||||||||
4.0 - 4.49% | 4.19% | 1.55% | 881,110 | |||||||||||||||||
4.5 - 4.99% | 4.71% | 2.07% | 547,249 | |||||||||||||||||
5.0 - 5.49% | 5.22% | 2.58% | 368,303 | |||||||||||||||||
5.5 - 5.99% | 5.67% | 3.03% | 239,988 | |||||||||||||||||
6.0 - 6.49% | 6.19% | 3.55% | 277,698 | |||||||||||||||||
6.5 - 6.99% | 6.70% | 4.06% | 274,368 | |||||||||||||||||
7.0 - 7.49% | 7.17% | 4.53% | 102,274 | |||||||||||||||||
7.5 - 7.99% | 7.71% | 5.07% | 189,295 | |||||||||||||||||
8.0 - 8.99% | 8.18% | 5.54% | 444,724 | |||||||||||||||||
> 9.0% | 9.05% | 6.41% | 172,229 | |||||||||||||||||
$ | 6,780,377 |
Fixed interest rate range | Borrower/lender weighted average yield | Estimated variable conversion rate (a) | Loan balance | |||||||||||||||||
3.5 - 3.99% | 3.81% | 1.17% | $ | 390,523 | ||||||||||||||||
4.0 - 4.49% | 4.20% | 1.56% | 812,050 | |||||||||||||||||
4.5 - 4.99% | 4.71% | 2.07% | 516,568 | |||||||||||||||||
5.0 - 5.49% | 5.22% | 2.58% | 355,095 | |||||||||||||||||
5.5 - 5.99% | 5.67% | 3.03% | 224,241 | |||||||||||||||||
6.0 - 6.49% | 6.19% | 3.55% | 263,638 | |||||||||||||||||
6.5 - 6.99% | 6.70% | 4.06% | 258,430 | |||||||||||||||||
7.0 - 7.49% | 7.17% | 4.53% | 96,676 | |||||||||||||||||
7.5 - 7.99% | 7.71% | 5.07% | 182,195 | |||||||||||||||||
8.0 - 8.99% | 8.18% | 5.54% | 424,181 | |||||||||||||||||
> 9.0% | 9.05% | 6.41% | 164,979 | |||||||||||||||||
$ | 3,688,576 |
Maturity | Maturity | Notional amount | Weighted average fixed rate paid by the Company (a) | Maturity | Notional amount | Weighted average fixed rate paid by the Company (a) | ||||||||||||||||||||||
2023 | 2023 | $ | 750,000 | 0.30 | % | 2023 | $ | 250,000 | 0.32 | % | ||||||||||||||||||
2024 | 2024 | 2,500,000 | 0.35 | 2024 | 2,250,000 | 0.35 | ||||||||||||||||||||||
2025 | 500,000 | 0.35 | ||||||||||||||||||||||||||
2026 | 2026 | 500,000 | 1.02 | 2026 | 500,000 | 1.02 | ||||||||||||||||||||||
2031 | 2031 | 100,000 | 1.53 | 2031 | 100,000 | 1.53 | ||||||||||||||||||||||
$ | 4,350,000 | 0.44 | % | $ | 3,100,000 | 0.49 | % |
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 | $ | 15,198,552 | — | 1 month LIBOR (a) | Daily | $ | 14,389,927 | — | ||||||||||||||||||||||||||||||
3 month H15 financial commercial paper | 3 month H15 financial commercial paper | Daily | 587,763 | — | 3 month H15 financial commercial paper | Daily | 552,971 | — | ||||||||||||||||||||||||||||||||
3 month Treasury bill | 3 month Treasury bill | Daily | 509,062 | — | 3 month Treasury bill | Daily | 486,713 | — | ||||||||||||||||||||||||||||||||
1 month LIBOR | 1 month LIBOR | Monthly | — | 10,069,293 | 1 month LIBOR | Monthly | — | 9,585,812 | ||||||||||||||||||||||||||||||||
3 month LIBOR (a) | 3 month LIBOR (a) | Quarterly | — | 5,074,989 | 3 month LIBOR (a) | Quarterly | — | 4,737,622 | ||||||||||||||||||||||||||||||||
Fixed rate | Fixed rate | — | — | 736,079 | Fixed rate | — | — | 703,600 | ||||||||||||||||||||||||||||||||
Auction-rate (b) | Auction-rate (b) | Varies | — | 225,535 | Auction-rate (b) | Varies | — | 221,385 | ||||||||||||||||||||||||||||||||
Asset-backed commercial paper (c) | Asset-backed commercial paper (c) | Varies | — | 5,017 | Asset-backed commercial paper (c) | Varies | — | 4,618 | ||||||||||||||||||||||||||||||||
Other (d) | Other (d) | — | 1,431,818 | 1,616,282 | Other (d) | — | 1,450,609 | 1,627,183 | ||||||||||||||||||||||||||||||||
$ | 17,727,195 | 17,727,195 | $ | 16,880,220 | 16,880,220 |
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 |
Maturity | Notional amount (i) | |||||||
2022 | $ | 1,000,000 | ||||||
2023 | 750,000 | |||||||
2024 | 1,750,000 | |||||||
2026 | 1,150,000 | |||||||
2027 | 250,000 | |||||||
$ | 4,900,000 |
Interest rates | Asset and funding index mismatches | 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 | 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 | Dollars | Percent | Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2022 | Three months ended June 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | Effect on earnings: | Effect on earnings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in pre-tax net income before impact of derivative settlements | 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) | % | Decrease in pre-tax net income before impact of derivative settlements | $ | (5,927) | (5.4) | % | $ | (10,505) | (9.7) | % | $ | (1,199) | (1.1) | % | $ | (3,597) | (3.3) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of derivative settlements | Impact of derivative settlements | 10,726 | 4.5 | 32,178 | 13.4 | 1,455 | 0.6 | 4,364 | 1.8 | Impact of derivative settlements | 7,729 | 7.1 | 23,187 | 21.4 | 1,222 | 1.1 | 3,664 | 3.4 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | Increase (decrease) in net income before taxes | $ | 585 | 0.3 | % | $ | 14,531 | 6.1 | % | $ | 193 | 0.1 | % | $ | 578 | 0.2 | % | Increase (decrease) in net income before taxes | $ | 1,802 | 1.7 | % | $ | 12,682 | 11.7 | % | $ | 23 | 0.0 | % | $ | 67 | 0.1 | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | Increase (decrease) in basic and diluted earnings per share | $ | 0.01 | $ | 0.29 | $ | 0.00 | $ | 0.01 | Increase (decrease) in basic and diluted earnings per share | $ | 0.04 | $ | 0.26 | $ | 0.00 | $ | 0.00 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended March 31, 2021 | Three months ended June 30, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | Effect on earnings: | Effect on earnings: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in pre-tax net income before impact of derivative settlements | 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) | % | Decrease in pre-tax net income before impact of derivative settlements | $ | (14,023) | (12.8) | % | $ | (25,636) | (23.5) | % | $ | (1,571) | (1.4) | % | $ | (4,713) | (4.3) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of derivative settlements | Impact of derivative settlements | 9,130 | 5.8 | 27,390 | 17.3 | 1,516 | 1.0 | 4,549 | 2.9 | Impact of derivative settlements | 9,562 | 8.7 | 28,685 | 26.3 | 1,471 | 1.3 | 4,413 | 4.0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | Increase (decrease) in net income before taxes | $ | (5,152) | (3.3) | % | $ | 1,172 | 0.7 | % | $ | (89) | — | % | $ | (265) | (0.2) | % | Increase (decrease) in net income before taxes | $ | (4,461) | (4.1) | % | $ | 3,049 | 2.8 | % | $ | (100) | (0.1) | % | $ | (300) | (0.3) | % | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | Increase (decrease) in basic and diluted earnings per share | $ | (0.10) | $ | 0.02 | (0.00 | ) | $ | (0.01) | Increase (decrease) in basic and diluted earnings per share | $ | (0.09) | $ | 0.06 | $ | (0.00) | $ | (0.01) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in pre-tax net income before impact of derivative settlements | Decrease in pre-tax net income before impact of derivative settlements | $ | (16,068) | (4.6) | % | $ | (28,152) | (8.1) | % | $ | (2,461) | (0.7) | % | $ | (7,383) | (2.1) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of derivative settlements | Impact of derivative settlements | 18,455 | 5.3 | 55,365 | 15.9 | 2,677 | 0.8 | 8,028 | 2.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | Increase (decrease) in net income before taxes | $ | 2,387 | 0.7 | % | $ | 27,213 | 7.8 | % | $ | 216 | 0.1 | % | $ | 645 | 0.2 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | Increase (decrease) in basic and diluted earnings per share | $ | 0.05 | $ | 0.55 | $ | 0.00 | $ | 0.01 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Six months ended June 30, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect on earnings: | Effect on earnings: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Decrease in pre-tax net income before impact of derivative settlements | Decrease in pre-tax net income before impact of derivative settlements | $ | (28,355) | (10.6) | % | $ | (52,005) | (19.5) | % | $ | (3,175) | (1.2) | % | $ | (9,527) | (3.6) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of derivative settlements | Impact of derivative settlements | 18,692 | 7.0 | 56,075 | 21.0 | 2,987 | 1.1 | 8,962 | 3.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in net income before taxes | Increase (decrease) in net income before taxes | $ | (9,663) | (3.6) | % | $ | 4,070 | 1.5 | % | $ | (188) | (0.1) | % | $ | (565) | (0.2) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Increase (decrease) in basic and diluted earnings per share | Increase (decrease) in basic and diluted earnings per share | $ | (0.19) | $ | 0.08 | $ | (0.00) | $ | (0.01) |
As of March 31, 2022 | As of December 31, 2021 | As of June 30, 2022 | As of December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||
Dollars | Percent | Dollars | Percent | Dollars | Percent | Dollars | Percent | |||||||||||||||||||||||||||||||||||||||
Fixed-rate loan assets | Fixed-rate loan assets | $ | 278,450 | 75.6 | % | $ | 191,410 | 74.2 | % | Fixed-rate loan assets | $ | 334,984 | 79.1 | % | $ | 191,410 | 74.2 | % | ||||||||||||||||||||||||||||
Variable-rate loan assets | Variable-rate loan assets | 89,807 | 24.4 | 66,491 | 25.8 | Variable-rate loan assets | 88,569 | 20.9 | 66,491 | 25.8 | ||||||||||||||||||||||||||||||||||||
Total | Total | $ | 368,257 | 100.0 | % | $ | 257,901 | 100.0 | % | Total | $ | 423,553 | 100.0 | % | $ | 257,901 | 100.0 | % | ||||||||||||||||||||||||||||
Fixed-rate deposits | Fixed-rate deposits | $ | 484,047 | 88.5 | % | $ | 344,315 | 80.9 | % | Fixed-rate deposits | $ | 380,471 | 50.6 | % | $ | 344,315 | 80.9 | % | ||||||||||||||||||||||||||||
Variable-rate deposits | Variable-rate deposits | 62,623 | 11.5 | 81,085 | 19.1 | Variable-rate deposits | 370,874 | 49.4 | 81,085 | 19.1 | ||||||||||||||||||||||||||||||||||||
Total | Total | $ | 546,670 | 100.0 | % | $ | 425,400 | 100.0 | % | Total | $ | 751,345 | 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) | ||||||||||||||||||||||
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 |
Period | Total number of shares purchased (a) | Average price paid per share | Total number of shares purchased as part of publicly announced plans or programs (b) | Maximum number of shares that may yet be purchased under the plans or programs (b) | ||||||||||||||||||||||
April 1 - April 30, 2022 | 155,510 | $ | 84.38 | 155,510 | 2,067,349 | |||||||||||||||||||||
May 1 - May 31, 2022 | 275,161 | 82.18 | 275,161 | 4,806,205 | ||||||||||||||||||||||
June 1 - June 30, 2022 | 127,586 | 80.71 | 122,368 | 4,683,837 | ||||||||||||||||||||||
Total | 558,257 | $ | 82.46 | 553,039 |
3.1 | |||||
3.2* | |||||
10.1*+ | |||||
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 | ||||
101.CAL* | Inline XBRL Taxonomy Extension Calculation Linkbase | ||||
101.DEF* | Inline XBRL Taxonomy Extension Definition Linkbase |
101.LAB* | Inline XBRL Taxonomy Extension Label Linkbase | ||||
101.PRE* | Inline XBRL Taxonomy Extension Presentation Linkbase | ||||
104* | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). |
* | Filed herewith | ||||
** | Furnished herewith | ||||
+ | Filed herewith for purposes of providing a complete set of all documents to the Third Amended and Restated Guaranty related to the Third Amended and Restated Credit Agreement, both dated September 22, 2021. | ||||
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 |