101 unchanged sentences
10.3 Seventeenth Amendment of Amended and Restated Participation Agreement, dated as of August 1, 2019, by and between Union Bank and Trust Company and National Education Loan Network, Inc., filed as Exhibit 10.2 to the registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2019 and incorporated herein by reference.
−Removed: 10.4 Guaranteed Purchase Agreement, dated as of March 19, 2001, by and between NELnet, Inc.
−Removed: (subsequently renamed National Education Loan Network, Inc.) and Union Bank and Trust Company, filed on September 25, 2003 as Exhibit 10.36 to the registrant’s Registration Statement on Form S-1 (Registration No.
−Removed: 333-108070) and incorporated herein by reference.
−Removed: 10.5 First Amendment of Guaranteed Purchase Agreement, dated as of February 1, 2002, by and between NELnet, Inc.
−Removed: (subsequently renamed National Education Loan Network, Inc.) and Union Bank and Trust Company, filed on September 25, 2003 as Exhibit 10.37 to the registrant’s Registration Statement on Form S-1 (Registration No.
−Removed: 333-108070) and incorporated herein by reference.
−Removed: 10.6 Second Amendment of Guaranteed Purchase Agreement, dated as of December 1, 2002, by and between Nelnet, Inc.
−Removed: (f/k/a/ NELnet, Inc.) (subsequently renamed National Education Loan Network, Inc.) and Union Bank and Trust Company, filed on September 25, 2003 as Exhibit 10.38 to the registrant’s Registration Statement on Form S-1 (Registration No.
−Removed: 333-108070) and incorporated herein by reference.
−Removed: 10.7 Guaranteed Purchase Agreement, dated as of September 1, 2010, by and between Nelnet, Inc.
−Removed: and Union Bank and Trust Company, filed as Exhibit 10.3 to the registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2010 and incorporated herein by reference.
−Removed: 10.8 First Amendment of Guaranteed Purchase Agreement, dated as of March 22, 2011, by and between Nelnet, Inc.
−Removed: and Union Bank and Trust Company, filed as Exhibit 10.2 to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 and incorporated herein by reference.
10.4 Amendment of Agreements dated as of February 4, 2005, by and between National Education Loan Network, Inc.
3 unchanged sentences
10.6+ Nelnet, Inc.
−Removed: Restricted Stock Plan, as amended through May 22, 2014, filed as Exhibit 10.1 to the registrant's Current Report on Form 8-K filed on May 28, 2014 and incorporated herein by reference.
−Removed: 10.12+ Amendment to Nelnet, Inc.
−Removed: Restricted Stock Plan, effective as of February 11, 2020, filed as Exhibit 10.21 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 and incorporated herein by reference.
+Added: Restricted Stock Plan, as amended and restated through May 16, 2024, filed as Exhibit 10.1 to the registrant's Current Report on Form 8-K filed on May 21, 2024 and incorporated herein by reference.
10.7+ Nelnet, Inc.
−Removed: Directors Stock Compensation Plan, as amended and restated as of May 18, 202 3 , filed as Exhibit 10.1 to the registrant ’ s Current Report on Form 8-K filed on May 22, 2023 and incorporated herein by re ference.
+Added: Directors Stock Compensation Plan, as amended and restated as of May 18, 2023, filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed on May 22, 2023 and incorporated herein by reference.
10.8+ Nelnet, Inc.
Executive Officers Incentive Compensation Plan, as amended and restated as of May 18, 2023, filed as Exhibit 10.2 to the registrant’s Current Report on Form 8-K filed on May 22, 2023 and incorporated herein by reference.
−Removed: 10.15 Loan Purchase Agreement, dated as of November 25, 2008, by and between Nelnet Education Loan Funding, Inc., f/k/a NEBHELP, INC., acting, where applicable, by and through Wells Fargo Bank, National Association, not individually but as Eligible Lender Trustee for the Seller under the Warehouse Agreement or Eligible Lender Trust Agreement, and Union Bank and Trust Company, acting in its individual capacity and as trustee, filed as Exhibit 10.71 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2008 and incorporated herein by reference.
−Removed: 10.16 Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC, filed as Exhibit 10.1 to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2010 and incorporated herein by reference.
−Removed: 10.17 Modification of Contract dated effective as of June 17, 2014 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC, filed as Exhibit 10.1 to the registrant's Current Report on Form 8-K filed on June 18, 2014 and incorporated herein by reference.
−Removed: 10.18 Modification of Contract dated effective as of September 1, 2014 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC, filed as Exhibit 10.1 to the registrant's Current Report on Form 8-K filed on September 2, 2014 and incorporated herein by reference.
−Removed: 10.19 Modification of Contract dated effective as of June 16, 2019 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC, filed as Exhibit 10.1 to the registrant's Current Report on Form 8-K filed on May 17, 2019 and incorporated herein by reference.
−Removed: 10.20 Modification of Contract dated effective as of November 25, 2019 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC, filed as Exhibit 10.1 to the registrant's Current Report on Form 8-K filed on November 27, 2019 and incorporated herein by reference.
−Removed: 10.21 Modification of Contract dated effective as of December 15, 2020 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC, filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed on December 15, 2020 and incorporated herein by reference.
−Removed: 10.22 Form of Modification of Contract dated effective as of June 15, 2021 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC, filed as Exhibit 10.1 to the registrant's Current Report on Form 8-K filed on June 10, 2021 and incorporated herein by reference.
−Removed: 10.23 Form of Modification of Contract entered into on September 24, 2021 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC, filed as Exhibit 10.1 to the registrant's Current Report on Form 8-K filed on September 27, 2021 and incorporated herein by reference.
−Removed: 10.24 Form of Modification of Contract entered into December 29, 2021 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC, filed as Exhibit 10.32 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2021 and incorporated herein by reference.
−Removed: 10.25 Form of Modification of Contract dated effective as of April 1, 2023 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC , filed as Exhibit 10.1 to the registrant ’ s Current Report on Form 8-K filed on March 30, 2023 and inc orporated herein by ref erence.
10.9++ Student Loan Servicing Contract between the United States Department of Education and Nelnet Diversified Solutions, LLC, filed as Exhibit 10.1 to the registrant’s Current Report on Form 8-K filed on April 25, 2023 and incorporated herein by reference.
−Removed: 10.27 Form of Modification of Contract dated effective as of October 10, 2023 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC , filed as Exhibit 10.
−Removed: 1 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 and incorporated herein by reference.
10.10 Form of Modification of Contract dated effective as of October 10, 2023 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC, filed as Exhibit 10.1 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 and incorporated herein by reference.
−Removed: 10.29*## Form of Modification of Contract dated effective as of December 15, 2023 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC.
−Removed: 10.30*## Form of Modification of Contract dated effective as of December 15, 2023 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC.
−Removed: 10.31*## Form of Modification of Contract dated effective as of December 15, 2023 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC.
−Removed: 10.32*## Form of Modification of Contract dated effective as of December 15, 2023 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC.
−Removed: 10.33 Management Agreement, dated effective as of May 1, 2011, by Whitetail Rock Capital Management, LLC and Union Bank and Trust Company, filed as Exhibit 10.3 to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2011 and incorporated herein by reference.
−Removed: 10.34 Management Agreement, dated effective as of January 20, 2012, by and between Union Bank and Trust Company and Whitetail Rock Capital Management, LLC, filed as Exhibit 10.58 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2011 and incorporated herein by reference.
−Removed: 10.35 Management Agreement, dated effective as of October 27, 2015, by and between Union Bank and Trust Company and Whitetail Rock Capital Management, LLC, filed as Exhibit 10.25 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2015 and incorporated herein by reference.
−Removed: 10.36# Appendix A, dated July 29, 2020, to Management Agreement dated effective as of October 27, 2015, by and between Union Bank and Trust Company and Whitetail Rock Capital Management, LLC, filed as Exhibit 10.4 to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 and incorporated herein by reference.
−Removed: 10.37 Management Agreement, dated effective as of January 4, 2016, by and between Union Bank and Trust Company and Whitetail Rock Capital Management, LLC, filed as Exhibit 10.1 to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2016 and incorporated herein by reference.
−Removed: 10.38 Management Agreement, dated effective as of March 23, 2017, by and between Union Bank and Trust Company and Whitetail Rock Capital Management, LLC, filed as Exhibit 10.1 to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2017 and incorporated herein by reference.
−Removed: 10.39 Amended Appendix A, dated May 8, 2019, to Management Agreement, dated effective as of March 23, 2017, by and between Union Bank and Trust Company and Whitetail Rock Capital Management, LLC, filed as Exhibit 10.3 to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2019 and incorporated herein by reference.
−Removed: 10.40# Amended Appendix A, dated July 29, 2020, to Management Agreement dated effective as of March 23, 2017, by and between Union Bank and Trust Company and Whitetail Rock Capital Management, LLC, filed as Exhibit 10.5 to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 and incorporated herein by reference.
−Removed: 10.41# Management Agreement dated effective as of July 29, 2020, by and between Union Bank and Trust Company and Whitetail Rock Capital Management, LLC, filed as Exhibit 10.6 to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 and incorporated herein by reference.
−Removed: 10.42 Investment Management Agreement, dated effective as of February 10, 2012, by and among Whitetail Rock SLAB Fund I, LLC, Whitetail Rock Fund Management, LLC, and Whitetail Rock Capital Management, LLC, filed as Exhibit 10.4 to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2012 and incorporated herein by reference.
−Removed: 10.43 Investment Management Agreement, dated effective as of February 14, 2013, by and among Whitetail Rock SLAB Fund III, LLC, Whitetail Rock Fund Management, LLC, and Whitetail Rock Capital Management, LLC, filed as Exhibit 10.31 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2013 and incorporated herein by reference.
−Removed: 10.44 Form of Custodian Agreement for Whitetail Rock SLAB Funds by and among the Fund, Whitetail Rock Fund Management, LLC, and Union Bank and Trust Company, filed as Exhibit 10.27 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2014 and incorporated herein by reference.
−Removed: 10.45 Amended and Restated Form of Custodian Agreement for Whitetail Rock SLAB Funds by and among the Fund, Whitetail Rock Fund Management, LLC, and Union Bank and Trust Company , filed as Exhibit 10.
−Removed: 5 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 and incorporated herein by reference.
−Removed: 10.46 Form of Administrative Services Agreement for Whitetail Rock SLAB Funds by and among the Fund, Whitetail Rock Fund Management, LLC, Adminisystems, Inc., and Union Bank and Trust Company, filed as Exhibit 10.28 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2014 and incorporated herein by reference.
−Removed: 10.47 Subordination Agreement effective as of July 26, 2019, by and between Union Bank and Trust Company, Nelnet, Inc., and Agile Sports Technologies, Inc., filed as Exhibit 10.7 to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 and incorporated herein by reference.
+Added: 10.11 Form of Modification of Contract dated effective as of October 11, 2023 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC, filed as Exhibit 10.2 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023 and incorporated herein by reference.
+Added: 10.12 Form of Modification of Contract dated effective as of December 15, 2023 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC, filed as Exhibit 10.29 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2023 and incorporated herein by reference.
+Added: 10.13 Form of Modification of Contract dated effective as of December 15, 2023 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC, filed as Exhibit 10.30 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2023 and incorporated herein by reference.
+Added: 10.14 Form of Modification of Contract dated effective as of December 15, 2023 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC, filed as Exhibit 10.31 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2023 and incorporated herein by reference.
+Added: 10.15 Form of Modification of Contract dated effective as of December 15, 2023 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC, filed as Exhibit 10.32 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2023 and incorporated herein by reference.
+Added: 10.16 Modification of Contract dated effective as of March 26, 2024 for Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC, filed as Exhibit 10.2 to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2024 and incorporated herein by reference.
10.17# Third Amended and Restated Credit Agreement dated as of September 22, 2021, among Nelnet, Inc., U.S.
13 unchanged sentences
signatories thereto, in favor of U.S.
−Removed: Bank National Association, as Administrative Agent , filed as Exhibit 10.
−Removed: 4 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 and incorporated herein by reference.
−Removed: 10.53 Amended and Restated Consulting and Services Agreement made and entered into as of October 1, 2013, by and between Nelnet, Inc.
−Removed: and Union Bank and Trust Company, filed as Exhibit 10.2 to the registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2013 and incorporated herein by reference.
−Removed: 10.54 Master Private Loan Program Agreement dated as of August 22, 2018, by and between Union Bank and Trust Company and Nelnet, Inc., filed as Exhibit 10.1 to the registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 and incorporated herein by reference.
−Removed: 10.55± Education Loan Marketing Agreement dated as of August 22, 2018, by and between Nelnet Consumer Finance, Inc.
−Removed: and Union Bank and Trust Company, filed as Exhibit 10.2 to the registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 and incorporated herein by reference.
−Removed: 10.56± Private Student Loan Origination and Servicing Agreement dated as of August 22, 2018, by and between Nelnet Servicing, LLC, d/b/a Firstmark Services, and Union Bank and Trust Company, filed as Exhibit 10.3 to the registrant's Quarterly Report on Form 10-Q for the quarter ended September 30, 2018 and incorporated herein by reference.
−Removed: 10.57±± Private Student Loan Purchase Agreement dated as of November 19, 2019, by and among National Education Loan Network, Inc., as Purchaser, Union Bank and Trust Company, as Purchaser Lender Trustee, and Union Bank and Trust Company, as Seller, filed as Exhibit 10.56 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2019 and incorporated herein by reference .
−Removed: 10.58 Private Loan Sale Agreement dated as of October 9, 2014, by and between Nelnet, Inc.
−Removed: and Union Bank and Trust Company, filed as Exhibit 10.47 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2014 and incorporated herein by reference.
−Removed: 10.59 Private Student Loan Servicing Agreement dated as of October 9, 2014, by and between Nelnet Servicing, LLC and Union Bank and Trust Company, filed as Exhibit 10.48 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2014 and incorporated herein by reference.
−Removed: 10.60 First Amendment of Loan Servicing Agreement dated as of September 27, 2013, by and between Nelnet, Inc.
−Removed: and Union Bank and Trust Company, filed as Exhibit 10.49 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2014 and incorporated herein by reference.
−Removed: 10.61 Private Loan Servicing Letter Agreement dated as of February 27, 2017, by and between Nelnet Servicing, LLC and Union Bank and Trust Company, filed as Exhibit 10.54 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2017 and incorporated herein by reference.
+Added: Bank National Association, as Administrative Agent, filed as Exhibit 10.4 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 and incorporated herein by reference.
+Added: 10.22 Guaranty Supplement to the Third Amended and Restated Guaranty, dated as of March 15, 2024, in favor of U.S.
+Added: Bank National Association, as Administrative Agent, filed as Exhibit 10.1 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended March 31, 2024 and incorporated herein by reference.
10.23 Form of Trust/Custodial/Safekeeping Agreement by and between National Education Loan Network, Inc., as Principal, and Union Bank and Trust Company, as Trustee, filed as Exhibit 10.55 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2017 and incorporated herein by reference.
1 unchanged sentence
and its affiliates, as Principal under the Form of Trust/Custodial/Safekeeping Agreement between Principal and Union Bank and Trust Company, as Trustee, filed as Exhibit 10.56 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2017 and incorporated herein by reference.
−Removed: 10.64 Loan Participation Agreement dated as of January 1, 2018 between Union Bank and Trust Company and Union Bank and Trust Company as trustee for National Education Loan Network, Inc., filed as Exhibit 10.1 to the registrant's Quarterly Report on Form 10-Q for the quarter ended March 31, 2018 and incorporated herein by reference.
−Removed: 10.65 Amended and Restated Trust Agreement dated as of December 21, 2018 among Nelnet Private Student Loan Financing Corporation, as Depositor, Union Bank and Trust Company, as Trustee, and U.S.
−Removed: Bank Trust National Association, as Delaware Trustee, filed as Exhibit 10.57 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2018 and incorporated herein by reference.
+Added: 10.25* First Amended and Restated Loan Participation Agreement dated as of June 21, 2018 between Union Bank and Trust Company and Union Bank and Trust Company as trustee for National Education Loan Network, Inc.
10.26±± Amended and Restated Trust Agreement, dated effective as of January 11, 2019, by and among Nelnet Private Student Loan Financing Corporation, as Depositor, Union Bank and Trust Company, as Trustee, National Education Loan Network, Inc., as Administrator, and U.S.
Bank Trust National Association, as Delaware Trustee, filed as Exhibit 10.1 to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 and incorporated herein by reference.
−Removed: 10.67±± Interim Trust Agreement, dated effective as of January 11, 2019, by and among ACM F Acquisition, LLC, as ACM Seller, National Education Loan Network, Inc., as NELN Seller, and Union Bank and Trust Company, as Interim Trustee, filed as Exhibit 10.2 to the registrant's Quarterly Report on Form 10-Q for the quarter ended June 30, 2019 and incorporated herein by reference.
10.27 SLABS Participation Agreement, dated effective as of May 5, 2020, by and between National Education Loan Network, Inc., and Union Bank and Trust Company, as Trustee, filed as Exhibit 10.1 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 and incorporated herein by reference.
2 unchanged sentences
10.30 Capital and Liquidity Maintenance Agreement, dated as of June 26, 2020, by and among the Federal Deposit Insurance Corporation, Nelnet, Inc., Michael Dunlap, and Nelnet Bank, filed as Exhibit 10.3 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2020 and incorporated herein by reference.
−Removed: 10.72++ Master Agreement entered into as of October 1, 2020, by and among SDC Allo Holdings, LLC, Nelnet, Inc., and ALLO Communications LLC, filed as Exhibit 10.1 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 and incorporated herein by reference.
−Removed: 10.73++ Membership Unit Purchase Agreement, dated as of October 1, 2020, by and among SDC Allo Holdings, LLC, Nelnet, Inc., and ALLO Communications LLC, filed as Exhibit 10.2 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 and incorporated herein by reference.
−Removed: 10.74 Omnibus Amendment dated as of October 15, 2020 to the Master Agreement and the Membership Unit Purchase Agreement, by and among SDC Allo Holdings, LLC, Nelnet, Inc., and ALLO Communications LLC, filed as Exhibit 10.3 to the registrant’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2020 and incorporated herein by reference.
10.31±± Form of Amended & Restated Limited Liability Company Operating Agreement for solar energy investments managed by a subsidiary of Nelnet, Inc.
4 unchanged sentences
have participated, filed as Exhibit 10.84 to the registrant’s Annual Report on Form 10-K for the year ended December 31, 2021 and incorporated herein by reference.
+Added: 19* Nelnet, Inc.
+Added: Securities Trading Policy dated February 1, 2024.
21.1* Subsidiaries of Nelnet, Inc.
5 unchanged sentences
97 Nelnet, Inc.
−Removed: Incentive Compensation Clawback Policy dated November 9, 2023.
+Added: Incentive Compensation Clawback Policy dated November 9, 2023, filed as Exhibit 97 to the registrant's Annual Report on Form 10-K for the year ended December 31, 2023 and incorporated herein by reference.
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.
13 unchanged sentences
In addition, information concerning the subject matter of the representations, warranties, and covenants may change after the date of the agreement, which subsequent information may or may not be fully reflected in the registrant's public disclosures.
−Removed: ± Certain portions of this exhibit have been redacted and are subject to a confidential treatment order granted by the U.S.
−Removed: Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934.
±± Certain portions of this exhibit have been omitted pursuant to Item 601(b)(10)(iv) of Regulation S-K.
# Schedules, exhibits, and similar attachments to this exhibit have been omitted pursuant to Item 601(a)(5) of Regulation S-K.
−Removed: ## Provided herewith for purposes of providing a complete set of all modifications to the Student Loan Servicing Contract between the United States Department of Education and Nelnet Servicing, LLC.
FORM 10-K SUMMARY
69 unchanged sentences
A portion of the ALL is comprised of qualitative adjustments to historical loss experience.
−Removed: We identified the assessment of the ALL as a critical audit matter.
+Added: We identified the assessment of the allowance for loan losses as a critical audit matter.
A high degree of audit effort, including specialized skills and knowledge, and subjective and complex auditor judgment was involved in the assessment due to significant measurement uncertainty.
Specifically, the assessment encompassed the evaluation of the ALL methodology, including the methods, models, and significant assumptions used to estimate the PD and LGD.
−Removed: Such assumptions included the economic forecast scenario and macroeconomic assumptions, the reasonable and supportable forecast periods, and the historical observation period.
+Added: Such assumptions included the economic forecast scenario and macroeconomic assumptions, and the reasonable and supportable forecast periods.
The assessment also included an evaluation of the conceptual soundness and performance of the PD and LGD models.
14 unchanged sentences
• evaluating the selection of the economic forecast scenarios and underlying assumptions by comparing it to the Company’s business environment and relevant industry practices
−Removed: • evaluating the historical observation period and reasonable and supportable forecast periods by comparing to specific portfolio risk characteristics and trends
We also assessed the cumulative results of the procedures performed to assess the sufficiency of the audit evidence obtained related to the ALL estimate by evaluating the:
17 unchanged sentences
Investments and notes receivable:
+Added: Investments at fair value 1,160,320 1,006,810
+Added: Other investments and notes receivable, net 1,040,376 857,866
+Added: Total investments and notes receivable 2,200,696 1,864,676
Restricted cash 332,100 488,723
Restricted cash - due to customers 404,402 368,656
−Removed: Restricted investments 17,969 —
Accounts receivable (net of allowance for doubtful accounts of $ 2,877 and $ 4,304 , respectively)
27 unchanged sentences
Retained earnings 3,340,540 3,270,403
−Removed: Accumulated other comprehensive loss, net ( 20,119 ) ( 37,366 )
+Added: Accumulated other comprehensive earnings (loss), net 1,470 ( 20,119 )
Total Nelnet, Inc.
21 unchanged sentences
Net interest income 292,862 264,709 312,669
−Removed: Less provision (negative provision) for loan losses 65,450 46,441 ( 12,426 )
+Added: Less provision for loan losses 54,607 8,115 34,973
Net interest income after provision for loan losses 238,255 256,594 277,696
2 unchanged sentences
Education technology services and payments revenue 486,962 463,311 408,543
+Added: Reinsurance premiums earned 62,923 20,067 157
Solar construction revenue 56,569 31,669 24,543
Other, net 61,602 ( 74,327 ) 17,709
−Removed: Gain on sale of loans, net 39,673 2,903 18,715
−Removed: Impairment expense ( 31,925 ) ( 15,523 ) ( 16,360 )
+Added: Loss on sale of loans, net ( 1,643 ) ( 17,662 ) ( 8,565 )
Derivative market value adjustments and derivative settlements, net 16,258 ( 16,701 ) 264,634
Total other income (expense), net 1,165,079 924,311 1,242,480
−Removed: Cost of services:
+Added: Cost of services and expenses:
+Added: Costs incurred to provide loan servicing 1,889 — —
Cost to provide education technology services and payments 172,763 171,183 148,403
1 unchanged sentence
Total cost of services 252,325 219,759 168,374
−Removed: Operating expenses:
Salaries and benefits 576,931 591,537 589,579
Depreciation and amortization 58,116 79,118 74,077
+Added: Reinsurance losses and underwriting expenses 55,246 16,781 154
Other expenses 189,503 173,070 170,624
Total operating expenses 879,796 860,506 834,434
+Added: Impairment expense and provision for beneficial interests 42,629 31,925 15,523
+Added: Total expenses 1,174,750 1,112,190 1,018,331
Income before income taxes 228,584 68,715 501,845
19 unchanged sentences
Unrealized holding gains (losses) arising during period, net 33,479 18,379 ( 58,946 )
−Removed: Reclassification of losses (gains) recognized in net income, net 3,504 ( 5,902 ) ( 2,695 )
+Added: Reclassification of (gains) losses recognized in net income, net ( 4,534 ) 3,504 ( 5,902 )
Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity 779 202 —
1 unchanged sentence
Net changes related to equity method investee's other comprehensive income:
−Removed: Gain on cash flow hedges 622 3,452 —
+Added: (Loss) gain on cash flow hedge ( 1,331 ) 622 3,452
Income tax effect 319 ( 1,012 ) ( 149 ) 473 ( 829 ) 2,623
12 unchanged sentences
Balance as of December 31, 2021 — 27,239,654 10,676,642 $ — 272 107 1,000 2,933,807 9,304 ( 859 ) 2,943,631
−Removed: Issuance of noncontrolling interests — — — — — — — — — 61,087 61,087
Net income (loss) — — — — — — — 406,899 — ( 18,154 ) 388,745
−Removed: Other comprehensive income
−Removed: — — — — — — — — 3,202 — 3,202
+Added: Other comprehensive loss — — — — — — — — ( 46,670 ) — ( 46,670 )
+Added: Issuance of noncontrolling interests — — — — — — — — — 67,003 67,003
Distribution to noncontrolling interests — — — — — — — — — ( 56,586 ) ( 56,586 )
6 unchanged sentences
Balance as of December 31, 2022 — 26,461,651 10,668,460 — 265 107 1,109 3,227,680 ( 37,366 ) ( 8,596 ) 3,183,199
−Removed: Issuance of noncontrolling interests — — — — — — — — — 67,003 67,003
Net income (loss) — — — — — — — 89,826 — ( 40,496 ) 49,330
−Removed: Other comprehensive loss
−Removed: — — — — — — — — ( 46,670 ) — ( 46,670 )
+Added: Other comprehensive income — — — — — — — — 17,247 — 17,247
+Added: Issuance of noncontrolling interests — — — — — — — — — 101,237 101,237
Distribution to noncontrolling interests — — — — — — — — — ( 105,789 ) ( 105,789 )
6 unchanged sentences
Balance as of December 31, 2023 — 26,400,630 10,663,088 — 264 107 3,096 3,270,403 ( 20,119 ) ( 53,644 ) 3,200,107
−Removed: Issuance of noncontrolling interests — — — — — — — — — 101,237 101,237
Net income (loss) — — — — — — — 184,045 — ( 8,130 ) 175,915
Other comprehensive income — — — — — — — — 21,589 — 21,589
−Removed: — — — — — — — — 17,247 — 17,247
+Added: Issuance of noncontrolling interests — — — — — — — — — 84,770 84,770
Distribution to noncontrolling interests — — — — — — — — — ( 75,734 ) ( 75,734 )
5 unchanged sentences
Conversion of common stock — 4,484 ( 4,484 ) — — — — — — — —
+Added: Acquisition of remaining 20 % of GRNE Solar, net of tax
+Added: — — — — — — — ( 2,340 ) — 2,093 ( 247 )
Balance as of December 31, 2024 — 25,634,748 10,658,604 $ — 256 107 7,389 3,340,540 1,470 ( 50,645 ) 3,299,117
9 unchanged sentences
Net income 175,915 49,330 388,745
−Removed: Adjustments to reconcile net income to net cash provided by operating activities, net of business acquisitions:
+Added: Adjustments to reconcile net income to net cash provided by operating activities, net of acquisitions:
Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs 132,527 145,393 176,248
−Removed: Loan discount accretion ( 30,813 ) ( 67,480 ) ( 7,990 )
−Removed: Provision (negative provision) for loan losses 65,450 46,441 ( 12,426 )
+Added: Loan discount and deferred lender fees accretion ( 54,053 ) ( 30,813 ) ( 67,480 )
+Added: Provision for loan losses 54,607 8,115 34,973
Derivative market value adjustments ( 10,124 ) 41,773 ( 231,691 )
Proceeds from termination of derivative instruments — 164,079 91,786
−Removed: (Payments to) proceeds from clearinghouse - initial and variation margin, net ( 213,923 ) 148,691 91,294
−Removed: Gain on sale of loans, net ( 39,673 ) ( 2,903 ) ( 18,715 )
−Removed: Loss (gain) on investments, net 117,968 24,643 ( 3,811 )
+Added: Proceeds from (payments to) clearinghouse - initial and variation margin, net 2,374 ( 213,923 ) 148,691
+Added: Loss on sale of loans, net 1,643 17,662 8,565
+Added: (Gain) loss on investments, net ( 7,952 ) 122,492 31,264
Proceeds from sale of equity securities, net of purchases 137 75 42,841
1 unchanged sentence
Non-cash compensation expense 12,045 16,476 14,176
−Removed: Impairment expense 29,539 15,523 16,360
+Added: Impairment expense and provision for beneficial interests 42,629 29,539 15,523
+Added: Changes in operating assets and liabilities:
Decrease (increase) in loan and investment accrued interest receivable 220,938 47,217 ( 38,500 )
−Removed: Increase in accounts receivable ( 1,356 ) ( 26,358 ) ( 86,982 )
+Added: Decrease (increase) in accounts receivable 36,106 ( 1,356 ) ( 26,358 )
Decrease (increase) in other assets, net 64,842 3,891 ( 11,783 )
3 unchanged sentences
Decrease in the carrying amount of lease liability ( 3,807 ) ( 5,352 ) ( 5,642 )
+Added: Total adjustments 486,975 382,697 294,315
Net cash provided by operating activities 662,890 432,027 683,060
−Removed: Cash flows from investing activities, net of business acquisitions:
−Removed: Purchases and originations of loans ( 735,003 ) ( 1,452,018 ) ( 1,318,605 )
−Removed: Purchases of loans from a related party ( 467,554 ) ( 8,310 ) ( 22,678 )
+Added: Cash flows from investing activities, net of acquisitions:
+Added: Purchases and originations of loans, including purchase of student loan residual interests ( 973,942 ) ( 1,202,557 ) ( 1,460,328 )
Net proceeds from loan repayments, claims, and capitalized interest 3,179,752 2,559,384 4,394,183
2 unchanged sentences
Proceeds from sales of available-for-sale securities 445,946 963,117 511,124
−Removed: Proceeds from and sale of beneficial interest in loan securitizations 32,149 21,531 40,602
+Added: Proceeds from beneficial interest in loan securitizations 52,234 32,149 21,531
Purchases of other investments and issuance of notes receivable ( 483,714 ) ( 344,918 ) ( 263,346 )
5 unchanged sentences
Net cash provided by investing activities $ 2,412,733 1,939,030 2,273,026
−Removed: AND SUBSIDIARIES
−Removed: Consolidated Statements of Cash Flows (Continued)
+Added: AND SUBSIDIARIES (Continued)
+Added: Consolidated Statements of Cash Flows
+Added: Years ended December 31, 2024, 2023, and 2022
2024 2023 2022
(Dollars in thousands)
−Removed: Cash flows from financing activities, net of business acquisitions:
+Added: Cash flows from financing activities, net of acquisitions:
Payments on bonds and notes payable $ ( 3,644,658 ) ( 3,606,160 ) ( 4,339,164 )
6 unchanged sentences
Proceeds from issuance of common stock 1,946 1,780 1,633
+Added: Acquisition of noncontrolling interest ( 325 ) — —
Issuance of noncontrolling interests 79,625 88,389 55,777
1 unchanged sentence
Net cash used in financing activities ( 3,169,657 ) ( 2,703,198 ) ( 2,792,499 )
−Removed: Effect of exchange rate changes on cash 16 ( 160 ) ( 121 )
+Added: Effect of exchange rate changes on cash and restricted cash ( 437 ) 16 ( 160 )
Net (decrease) increase in cash, cash equivalents, and restricted cash ( 94,471 ) ( 332,125 ) 163,427
7 unchanged sentences
ROU assets obtained in exchange for lease obligations $ 1,331 18,860 7,728
−Removed: Business acquisition deferred purchase price $ — 5,000 —
Receipt of beneficial interest in consumer loan securitizations as consideration from sale of loans $ 12,493 89,130 19,069
Receipt of asset-backed investment securities as consideration from sale of loans $ 10,000 66,546 13,806
−Removed: Asset-backed investment securities held as collateral for reinsurance treaties $ 17,969 — —
+Added: Student loans and other assets acquired $ 121,634 — —
+Added: Borrowings and other liabilities assumed in acquisition of student loans $ 54,662 — —
Distribution to noncontrolling interests $ 69,759 101,132 53,038
14 unchanged sentences
Description of Business
−Removed: and its subsidiaries (“Nelnet” or the “Company”) is a diverse, innovative company with a purpose to serve others and a vision to make dreams possible.
+Added: and its subsidiaries (“Nelnet” or the “Company”) is a diversified hybrid holding company with primary businesses being consumer lending, loan servicing, payments, and technology – with many of these businesses serving customers in the education space.
The largest operating businesses engage in loan servicing and education technology services and payments.
A significant portion of the Company's revenue is net interest income earned on a portfolio of federally insured student loans.
−Removed: The Company also makes investments to further diversify both within and outside of its historical core education-related businesses including, but not limited to, investments in a fiber communications company (ALLO), early-stage and emerging growth companies (venture capital investments), real estate, and renewable energy (solar).
+Added: The Company also makes and manages investments to further diversify both within and outside of its historical core education-related businesses including, but not limited to, investments in a fiber communications company (ALLO), early-stage and emerging growth companies (venture capital investments), real estate, reinsurance, and renewable energy (solar).
Substantially all revenue from external customers is earned, and all long-lived assets are located, in the United States.
9 unchanged sentences
This expansion has been accomplished through internal growth and innovation as well as business and certain investment acquisitions.
−Removed: The Company is also actively expanding its private education, consumer, and other loan portfolios, or investment interests therein, and as part of this strategy launched Nelnet Bank in 2020.
+Added: The Company is also actively expanding its private education and consumer loan portfolios, or investment interests therein, and as part of this strategy launched Nelnet Bank in 2020.
In addition, the Company has been servicing federally owned student loans for the Department since 2009.
4 unchanged sentences
• Nelnet Bank, part of the NFS division
−Removed: A description of each reportable operating segments is included below.
+Added: A description of each reportable operating segment is included below.
See note 16 for additional information on the Company's segment reporting.
Loan Servicing and Systems
−Removed: The primary service offerings of the Loan Servicing and Systems reportable operating segment (known as Nelnet Diversified Services (NDS)) include:
+Added: The primary service offerings of the Loan Servicing and Systems reportable operating segment (referred to as Nelnet Diversified Services (NDS)) include:
• Servicing federally owned student loans for the Department
3 unchanged sentences
• Providing student loan servicing software and other information technology products and services
−Removed: • Providing outsourced services including call center, processing, and technology services
+Added: • Providing outsourced services including contact center, processing, and administrative services
LSS provides for the servicing of the Company's student loan portfolio and the portfolios of third parties.
1 unchanged sentence
These activities are performed internally for the Company's portfolio, in addition to generating external fee revenue when performed for third-party clients.
−Removed: In addition, LSS provides backup servicing to third parties, which allows a transfer of the customer’s servicing volume to the Company’s platform and becoming a full servicing customer if their existing servicer cannot perform their duties.
+Added: In addition, LSS
AND SUBSIDIARIES
1 unchanged sentence
(Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: Nelnet Servicing, LLC (Nelnet Servicing), a subsidiary of the Company, is one of the current four private sector entities that have student loan servicing contracts with the Department to service loans that include Federal Direct Loan Program loans originated directly by the Department and FFEL Program loans purchased by the Department.
+Added: provides backup servicing to third parties, which allows a transfer of the customer’s servicing volume to the Company’s platform and becoming a full servicing customer if their existing servicer cannot perform their duties.
+Added: Nelnet Servicing, LLC (Nelnet Servicing), a subsidiary of the Company, is one of the current five private sector entities that have student loan servicing contracts with the Department to service loans that include Federal Direct Loan Program loans originated directly by the Department and FFEL Program loans purchased by the Department.
LSS also provides student loan servicing software, which is used internally and licensed to third-party student loan holders and servicers.
1 unchanged sentence
This segment also provides business process outsourcing primarily specializing in contact center management.
−Removed: The contact center solutions and services include taking inbound calls, helping with outreach campaigns and sales, interacting with customers through multi-channels, and processing and technology services.
+Added: The contact center solutions and services include taking inbound calls, helping with outreach campaigns and sales, interacting with customers through multi-channels, and processing and administrative services.
Education Technology Services and Payments
−Removed: The Education Technology Services and Payments reportable operating segment (known as Nelnet Business Services (NBS)) provides education and payment technology and services for K-12 schools, higher education institutions, churches, and businesses in the United States and internationally.
+Added: The Education Technology Services and Payments reportable operating segment (referred to as Nelnet Business Services (NBS)) provides education and payment technology and services for K-12 schools, higher education institutions, churches, and businesses in the United States and internationally.
NBS provides service and technology under four divisions as described below.
−Removed: FACTS provides solutions that elevate the education experience in the K-12 private and faith-based markets for school administrators, teachers, and families.
+Added: FACTS provides solutions that elevate the educational experience in the K-12 private and faith-based markets for school administrators, teachers, and families.
FACTS offers a comprehensive suite of services and technology in the following categories:
(i) financial management, including tuition payment plans, incidental billing, payment forms, advanced accounting, financial needs assessments (grant and aid), and a donation platform;
−Removed: (ii) school management, including a school management platform and application and enrollment services;
−Removed: and (iii) learning management.
+Added: (ii) education technology, including a school management platform and application and enrollment services;
+Added: and (iii) education services.
Nelnet Campus Commerce delivers payment technology to higher education institutions.
3 unchanged sentences
Nelnet Payment Services supports and provides payment processing services, including credit card and electronic transfers, to the other divisions of NBS and Nelnet in addition to other industries and software platforms across the United States.
−Removed: Nelnet International provides its services and technology in Australia, New Zealand, and the Asia-Pacific region.
+Added: Nelnet International provides its services and technology internationally, primarily in Australia, New Zealand, and the Asia-Pacific region.
Nelnet International serves customers in the education, local government, and health care industries.
−Removed: Nelnet International’s suite of services include an integrated commerce payment platform, financial management and tuition payment plan services, and a school management platform that provides administrative, information management, financial management, and communication functions for K-12 schools.
+Added: Nelnet International’s suite of services include (i) an integrated commerce payment platform, financial management and tuition payment plan services, and (ii) a school management platform that provides administrative, information management, financial management, and communication functions for K-12 schools.
Nelnet Financial Services
7 unchanged sentences
AGM generates a substantial portion of its earnings from the spread, referred to as loan spread, between the yield it receives on its loan portfolio and the associated costs to finance such portfolio.
−Removed: The loan assets are held in a series of lending subsidiaries and associated securitization trusts designed specifically for this purpose.
−Removed: In addition to the loan spread earned on its portfolio, all costs and activity associated with managing the portfolio, such as servicing of the assets and debt maintenance, are included in this segment.
+Added: The loan assets are primarily held in a series of lending subsidiaries and associated securitization trusts designed specifically for this purpose.
+Added: In addition to the loan spread earned on
AND SUBSIDIARIES
1 unchanged sentence
(Dollars in thousands, except share amounts, unless otherwise noted)
+Added: its portfolio, all costs and activity associated with managing the portfolio, such as servicing of the assets, debt maintenance, and administration costs, are included in this segment.
In addition to ownership of loan assets, AGM has partial ownership in consumer, private education, and federally insured student loan third-party securitizations.
1 unchanged sentence
AGM’s partial ownership percentage in each loan securitization grants AGM the right to receive the corresponding percentage of cash flows generated by the securitization.
+Added: Income generated by these investment interests is considered investment interest income and is not a component of the Company’s loan interest income.
Nelnet Bank operates as an internet Utah-chartered industrial bank franchise with a home office in Salt Lake City, Utah.
−Removed: Nelnet Bank is focused on the private education and consumer loan marketplace.
+Added: Nelnet Bank is focused on the private education and unsecured consumer loan marketplace.
NFS Other Operating Segments
−Removed: In addition to the reportable operating segments of AGM and Nelnet Bank being part of the NFS division, NFS’s other operating segments that are not reportable include:
+Added: NFS’s other operating segments that are not reportable include:
• The operating results of Whitetail Rock Capital Management, LLC (WRCM), the Company's U.S.
Securities and Exchange Commission (SEC)-registered investment advisor subsidiary
−Removed: • The operating results of Nelnet Insurance Services, which primarily includes multiple reinsurance treaties on property and causality policies
+Added: • The operating results of Nelnet Insurance Services, which primarily includes multiple reinsurance treaties on property and casualty policies
• The operating results of the Company’s investment activities in real estate
−Removed: • The operating results of the Company’s investment debt securities (primarily student loan and other asset-backed securities) and interest expense incurred on debt used to finance such investments
+Added: • The operating results of the Company’s investment in debt securities (primarily student loan and other asset-backed securities) and interest expense incurred on debt used to finance such investments
Corporate and Other Activities
4 unchanged sentences
• Corporate costs and overhead functions not allocated to operating segments, including executive management, investments in innovation, and other holding company organizational costs
−Removed: • The operating results of Nelnet Renewable Energy, which include solar tax equity investments made by the Company, administrative and management services provided by the Company on tax equity investments made by third parties, and solar construction and development
+Added: • The operating results of solar tax equity investments made by the Company and administrative and management services provided by the Company on tax equity investments made by third parties
+Added: • The operating results of Nelnet Renewable Energy, the Company’s solar engineering, procurement, and construction business
• The operating results of certain of the Company’s investment activities, including its investment in ALLO Holdings LLC, a holding company for ALLO Communications LLC (collectively referred to as “ALLO”) and early-stage and emerging growth companies (venture capital investments)
5 unchanged sentences
and its consolidated subsidiaries.
−Removed: In addition, the accounts of all variable interest entities (VIEs) of which the Company has determined that it is the primary beneficiary are included in the consolidated financial statements.
−Removed: All significant intercompany balances and transactions have been eliminated in consolidation.
+Added: In addition, the accounts of all variable interest entities (VIEs) of which the Company has determined that it is the primary beneficiary are
AND SUBSIDIARIES
1 unchanged sentence
(Dollars in thousands, except share amounts, unless otherwise noted)
+Added: included in the consolidated financial statements.
+Added: Amounts for noncontrolling interests reflect the share of membership interest (equity) and net income attributable to the holders of noncontrolling membership interests of non-wholly owned consolidated subsidiaries.
+Added: All significant intercompany balances and transactions have been eliminated in consolidation.
Variable Interest Entities
17 unchanged sentences
The Company is not required to consolidate VIEs in which it has determined it is not the primary beneficiary.
−Removed: VIEs not consolidated by the Company include its equity investment in ALLO, tax equity investments, and beneficial interests in loan securitizations.
−Removed: As of December 31, 2023, the Company owned 45 % of the economic rights of ALLO, and has a disproportional 43 % of the voting rights related to all operating decisions for ALLO's business.
+Added: VIEs not consolidated by the Company include its equity investment in ALLO, solar tax equity investments, beneficial interest in loan securitizations, and an equity investment in a certain co-investment fund.
+Added: As of December 31, 2024, the Company owned 45 % of the economic rights of ALLO and has a disproportionate 43 % of the voting rights related to all operating decisions for ALLO's business.
ALLO provides pure fiber optic service to homes and businesses for internet, television, and telephone services.
3 unchanged sentences
The recapitalization transaction ultimately resulted in the deconsolidation of ALLO from the Company’s consolidated financial statements.
−Removed: As part of the ALLO recapitalization transaction, the Company and SDC entered into an agreement, in which the Company has a contingent payment obligation to pay SDC a contingent payment amount of up to $ 35.0 million in the event the Company disposes of its voting membership interests of ALLO that it holds and realizes from such disposition certain targeted return levels.
−Removed: The Company recognized the estimated fair value of the contingent payment to be $ 9.8 million and $ 7.6 million as of December 31, 2023 and 2022, respectively, which is included in “other liabilities” on the consolidated balance sheets.
−Removed: Tax Equity Investments
−Removed: The Company makes tax equity investments in entities that promote renewable energy sources (solar).
+Added: As part of the ALLO recapitalization transaction, the Company and SDC entered into an agreement in which the Company has a contingent obligation to pay SDC an amount up to $ 35.0 million in the event the Company disposes of its voting membership interests of ALLO that it holds, and realizes from such disposition certain targeted return levels.
+Added: The estimated fair value of the contingent payment was $ 8.3 million and $ 9.8 million as of December 31, 2024 and 2023, respectively, which is included in “other liabilities” on the consolidated balance sheets.
+Added: Solar Tax Equity Investments
+Added: The Company makes solar tax equity investments in entities that promote renewable energy sources.
The Company’s investments in these entities generate a return primarily through the realization of federal income tax credits, operating cash flows, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods.
−Removed: These investments are included in "investments and notes receivable" on the consolidated balance sheets.
−Removed: As of December 31, 2023, the Company has funded a total of $ 470.7 million in solar investments, which included $ 198.8 million funded by syndication partners.
−Removed: The carrying value of these investments are reduced by tax credits earned when the solar project is placed-in-service.
−Removed: The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are included in “other liabilities” on the consolidated balance sheets when the solar project is placed-in-service.
+Added: These investments are included in "other investments and notes receivable, net" on the consolidated balance sheets.
+Added: As of December 31, 2024, the Company has invested a total of $ 314.8 million and its third-party investors have invested $ 271.4
AND SUBSIDIARIES
1 unchanged sentence
(Dollars in thousands, except share amounts, unless otherwise noted)
+Added: million in tax equity investments that remain outstanding in renewable energy solar partnerships that support the development and operations of solar projects throughout the country.
+Added: The carrying value of these investments is reduced by tax credits earned when the solar project is placed in service.
+Added: The Company’s unfunded capital and other commitments related to these unconsolidated VIEs are accrued when the solar project is placed in service and are included in “other liabilities” on the consolidated balance sheets.
The Company’s maximum exposure to loss from these unconsolidated VIEs include the investment, unfunded capital commitments, and previously recorded tax credits which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level.
1 unchanged sentence
While the Company believes potential losses from these investments are remote, the maximum exposure was determined by assuming a scenario where the energy-producing projects completely fail and do not meet certain government compliance requirements resulting in recapture of the related tax credits.
−Removed: The following table presents a summary of solar investment VIEs that the Company has not consolidated:
+Added: The following table presents a summary of solar investment VIEs that the Company has not consolidated, excluding all third-party investor impacts:
As of December 31,
−Removed: Investment carrying amount, excluding third-party investors $ ( 65,266 ) ( 36,863 )
+Added: Investment carrying amount $ ( 87,853 ) ( 77,402 )
Tax credits subject to recapture 173,822 153,699
3 unchanged sentences
Beneficial Interest in Loan Securitizations
−Removed: The Company has partial ownership in consumer, private education, and federally insured student loan third-party securitizations that are classified as “beneficial interest in loan securitizations” and included in “investments and notes receivable” on the Company’s consolidated balance sheets.
+Added: The Company has partial ownership in consumer, private education, and federally insured student loan third-party securitizations that are classified as “beneficial interest in loan securitizations” and included in “other investments and notes receivable, net” on the Company’s consolidated balance sheets.
These residual interests were acquired by AGM or have been received in consideration of AGM selling portfolios of loans to unrelated third parties who securitized such loans.
−Removed: See note 6 for the Company’s carrying value of its beneficial interest in loan securitization investments, which is the Company’s maximum exposure to loss.
−Removed: Noncontrolling Interests
−Removed: Amounts for noncontrolling interests reflect the share of membership interest (equity) and net income attributable to the holders of minority membership interests in the following entities:
−Removed: • Whitetail Rock Capital Management, LLC - WRCM is the Company’s SEC-registered investment advisor subsidiary.
−Removed: WRCM issued 10 % minority membership interests on January 1, 2012.
−Removed: • NGWeb Solutions, LLC - The Company acquired a controlling interest of NGWeb Solutions, LLC on April 30, 2022.
−Removed: Minority membership interests of 20 % were maintained by prior interest holders.
−Removed: See note 7 for a description of NGWeb Solutions, LLC, including the primary services offered.
−Removed: • GRNE-Nelnet, LLC and ENRG-Nelnet, LLC - The Company acquired a controlling interest in two subsidiaries of GRNE Solutions, LLC on July 1, 2022.
−Removed: Minority membership interests of 20 % were maintained by prior interest holders.
−Removed: See note 7 for additional description of the acquisition, including the primary services offered.
−Removed: In addition, the Company has established multiple entities for the purpose of investing in renewable energy (solar) and federal opportunity zone programs in which it has noncontrolling members.
+Added: For certain transactions, the Company is the sponsor and as sponsor, is required to provide a certain level of risk retention.
+Added: To satisfy this requirement, the Company has purchased bonds issued in the securitizations, which are classified as available-for-sale investments.
+Added: See note 6 for the Company’s carrying value of its beneficial interest in loan securitization investments and the carrying value and fair value of bonds held as risk retention.
+Added: The carrying value of its beneficial interest in loan securitization investments and bonds held as risk retention is the Company’s maximum exposure to loss.
+Added: Fund Investment
+Added: During 2024, the Company acquired an equity interest in a certain co-investment fund, which has a carrying value of $ 48.5 million at December 31, 2024.
+Added: Such investment is classified within “venture capital, funds, and other” in note 6, and is included in “other investments and notes receivable, net” on the Company’s consolidated balance sheets.
+Added: The Company’s maximum exposure to loss related to this investment is its current carrying value plus the Company’s unfunded commitment to the fund of $ 1.5 million.
+Added: Reclassification and Immaterial Error Corrections
+Added: Certain amounts previously reported have been reclassified to conform to the current period presentation.
+Added: These reclassifications include:
+Added: • Reclassifying “investments at fair value” and “other investments and notes receivable, net” that were previously included in “investments and notes receivable” and “restricted investments” on the Company’s consolidated balance sheet;
+Added: • Reclassifying “reinsurance premiums earned” and “reinsurance losses and underwriting expenses” as new line items on the Company’s consolidated statements of income, which were previously included in “other, net” in “other income (expense)” and “other expenses” in “operating expenses,” respectively;
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
+Added: • Reclassifying the line item “impairment expense and provision for beneficial interests” in “other income (expense)” and presenting such expense as part of “total expenses” on the Company’s consolidated statements of income.
+Added: During the second quarter of 2024, the Company identified certain immaterial errors in the previously issued consolidated financial statements that have been corrected to conform to the December 31, 2024 presentation.
+Added: The Company determined the reversal of provision for loan losses resulting from the sale of loans should be presented as a reduction to the provision for loan losses rather than the historical presentation as a gain/(loss) on sale of loans included in "other income (expense)" on the consolidated statements of income.
+Added: Prior period amounts have been corrected to conform to the current period presentation resulting in a reclassification of $ 57.3 million and $ 11.5 million for the years ended December 31, 2023 and 2022, respectively.
+Added: This correction had no impact on previously reported consolidated assets, liabilities, equity, net income, and cash flows from operating activities.
+Added: Solar Tax Equity Investments
+Added: The Company relies on audited financial statements provided by third parties to record its share of earnings or losses on its solar tax equity investments.
+Added: The Company determined that the Hypothetical Liquidation at Book Value (HLBV) method of accounting was not consistently adopted by all third parties in such audited financial statements for those solar tax equity investments made under a lease pass-through structure.
+Added: The adoption of the HLBV method of accounting accelerates accounting losses in the initial years of the investment but has no impact on the overall economics of the transaction.
+Added: During the second quarter of 2024, the Company fully adopted HLBV accounting for these investments and prior period amounts have been corrected, resulting in an increase in solar investment losses included in "other, net" in "other income (expense)" on the consolidated statements of income of $ 5.5 million and $ 7.6 million for the years ended December 31, 2023 and 2022, respectively, partially offset by an increase in "net loss attributable to noncontrolling interests" of $ 3.4 million and $ 7.0 million for the years ended December 31, 2023 and 2022, respectively.
+Added: The after-tax net income impact to Nelnet, Inc.
+Added: was a reduction of $ 1.7 million and $ 0.4 million for the years ended December 31, 2023 and 2022, respectively.
+Added: Consolidated "total equity" on the consolidated balance sheet was reduced $ 21.8 million as of December 31, 2023, $ 16.7 million as of December 31, 2022, and $ 9.2 million as of December 31, 2021, with the 2021 impact reflecting the cumulative impact of this correction through such date.
Use of Estimates
5 unchanged sentences
If the Company has the ability and intent to hold loans for the foreseeable future, such loans are held for investment and carried at amortized cost.
−Removed: Amortized cost includes the unamortized premium or discount and capitalized origination costs and fees, all of which are amortized to interest
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
+Added: Amortized cost includes the unamortized premium or discount and capitalized origination costs and fees, all of which are amortized to interest income.
Loans which are held for investment also have an allowance for loan loss as needed.
1 unchanged sentence
Loans which are held for sale do not have the associated premium or discount and origination costs and fees amortized into interest income and there is also no related allowance for loan losses.
+Added: In addition, once a loan is classified as held for sale, any allowance for loan losses that existed immediately prior to the reclassification to held for sale is reversed through provision.
There were no loans classified as held for sale as of December 31, 2024 and 2023.
5 unchanged sentences
FFELP loans do not require repayment while the borrower is in-school, and during the grace period immediately upon leaving school.
−Removed: Under the Higher Education Act, a borrower may also be granted a deferment or forbearance for a period of time based on need, during which time the borrower is not considered to be in repayment.
+Added: Under the Higher Education Act, a borrower may also be granted a deferment or forbearance for a period of time based on need, during which time the borrower is
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
+Added: not considered to be in repayment.
Interest continues to accrue on loans in the in-school, deferment, and forbearance program periods.
13 unchanged sentences
The terms of the consumer loans, which vary on an individual basis, generally provide for repayment in weekly or monthly installments of principal and interest over a period of up to six years .
−Removed: Other loans consist of home equity lines of credit.
−Removed: These loans are made to an individual primarily for debt consolidation purposes using equity in the borrower’s home as security in the form of primarily second liens.
+Added: Other loans consist of home equity lines of credit and small business loans.
+Added: Home equity loans are made to an individual primarily for debt consolidation purposes using equity in the borrower’s home as security in the form of primarily second liens.
These loans typically have a revolving draw period of five years and a repayment period at the end of the draw period of five to ten years .
Principal and interest payments are generally required to be made during the draw and repayment periods.
−Removed: On January 1, 2023, the Company adopted new accounting guidance concerning loan modifications.
−Removed: The new guidance requires an entity to evaluate whether a loan modification represents a new loan or a continuation of an existing loan and enhances the disclosure requirements for certain modifications of receivables made to borrowers experiencing financial difficulty.
−Removed: Because federally insured loan modifications are driven by the Higher Education Act, the Company does not consider these events as part of its loan modification programs.
+Added: Small business loans have no stated coupon rate but the borrower is charged a one-time lender fee that is accreted to interest income over the estimated life of the loan.
+Added: Minimum payments on such loans are due every 60 days.
+Added: For loan modifications, the Company evaluates whether a loan modification represents a new loan or a continuation of an existing loan.
+Added: Modifications of federally insured loans are driven by the Higher Education Act;
+Added: thus, the Company does not consider these events as part of its loan modification programs.
Administrative forbearances (e.g.
8 unchanged sentences
The allowance for loan losses is a valuation account that is deducted from the loans’ amortized cost basis to present the net amount expected to be collected on the loans as of the balance sheet date.
−Removed: Such allowance is based on the credit losses expected
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: to arise over the life of the asset which includes consideration of prepayments.
+Added: Such allowance is based on the credit losses expected to arise over the life of the asset which includes consideration of prepayments.
Loans are charged off when management determines the loan is uncollectible.
5 unchanged sentences
The Company evaluates such pooling decisions each quarter and makes adjustments as risk characteristics change.
−Removed: Management has determined that the federally insured, private education, consumer, and other loan portfolios each meet the definition of a portfolio segment, which is defined as the level at which an entity develops and documents a systematic method for determining its allowance for loan losses.
+Added: Management has determined that the federally insured, private education, and consumer and other loan portfolios each meet the definition of a
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
+Added: portfolio segment, which is defined as the level at which an entity develops and documents a systematic method for determining its allowance for loan losses.
Accordingly, the portfolio segment disclosures are presented on this basis in note 3 for each of these portfolios.
11 unchanged sentences
Qualitative adjustments consider the following factors, as applicable, for each of the Company’s loan portfolios:
−Removed: student loans in repayment versus those in nonpaying status;
+Added: student loans in repayment versus those in non-paying status;
delinquency status;
12 unchanged sentences
Purchased Loans Receivable with Credit Deterioration (PCD)
−Removed: The Company has purchased federally insured rehabilitation loans that have experienced more than insignificant credit deterioration since origination.
−Removed: Rehabilitation loans are loans that have previously defaulted, but for which the borrower has made a specified number of on-time payments.
−Removed: Although rehabilitation loans benefit from the same guarantees as other federally insured loans, rehabilitation loans have generally experienced redefault rates that are higher than default rates for federally insured loans that have not previously defaulted.
+Added: The Company has purchased loans that have experienced more than insignificant credit deterioration since origination.
+Added: A variety of factors are considered when identifying PCD loans, including, but not limited to delinquency, status, FICO scores, and other qualitative factors.
These PCD loans are recorded at the amount paid.
3 unchanged sentences
Subsequent changes to the allowance for credit losses are recorded through provision expense.
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
Loan Accrued Interest Receivable
6 unchanged sentences
Charge-offs of accrued interest receivable are recognized by reversing interest income.
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
Cash and Cash Equivalents
1 unchanged sentence
Cash and cash equivalents include amounts due to Nelnet Bank from the Federal Reserve Bank of $ 30.5 million and $ 7.0 million as of December 31, 2024 and 2023, respectively.
−Removed: The Company accounts for purchases and sales of debt securities on a settlement-date basis.
+Added: The Company accounts for purchases and sales of Non-Nelnet Bank debt securities on a settlement-date basis and Nelnet Bank debt securities on a trade-date basis.
When an investment is sold, the cost basis is determined through specific identification of the security sold.
8 unchanged sentences
The Company continues to update, over the life of the beneficial interest, the expectation of cash flows to be collected.
−Removed: Beneficial interest investments are evaluated for impairment by comparing the present value of the remaining cash flows as expected to be collected at the initial transaction date (or the last date previously revised) to the present value of the cash flows expected to be collected at the current financial reporting date, both discounted using the same effective rate equal to the current yield used to accrete the beneficial interest.
−Removed: If the present value of remaining cash flows is less than the present value of cash flows expected to be collected and the Company determines a credit loss has occurred, the Company records an allowance for credit losses for the difference.
−Removed: Subsequent favorable changes, if any, decreases the allowance for credit losses.
+Added: Beneficial interest investments are evaluated for impairment by comparing the carrying value of the investment to the present value of the cash flows expected to be collected at the current financial reporting date.
+Added: If the carrying value is less than the present value of cash flows expected to be collected and the Company determines a credit loss has occurred, the Company records an allowance for credit losses for the difference.
+Added: Subsequent favorable changes, if any, decrease the allowance for credit losses.
Equity investments with readily determinable fair values are measured at fair value, with changes in the fair value recognized through net income.
5 unchanged sentences
These factors may indicate that a decrease in value of the investment has occurred that is other-than-temporary and shall be recognized.
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: In March 2023, the Financial Accounting Standards Board issued new accounting guidance which expands the population of investments for which an investor may elect to apply the proportional amortization method (PAM).
−Removed: The guidance allows an investor in a tax equity investment to elect the PAM for qualifying investments on a tax credit program-by-program basis.
−Removed: The Company elected to early adopt the new accounting guidance as of January 1, 2023 for its tax equity investments in renewable energy sources (solar) tax credit program.
−Removed: There were no investments prior to January 1, 2023 that met the qualification to apply the PAM, thus no cumulative effect adjustment in retained earnings was required.
−Removed: Subsequent to adoption, the Company evaluates each tax equity investment in renewable energy sources (solar) to determine if it meets the qualifications to apply the PAM.
+Added: The Company accounts for its qualifying solar tax equity investments under the proportional amortization method (PAM).
+Added: The Company evaluates each solar tax equity investment to determine if it meets the qualifications to apply the PAM.
For qualifying investments, the Company uses the flow-through method of accounting to account for the related tax credit.
5 unchanged sentences
The difference between the calculated liquidation distribution amounts at the beginning and the end of the reporting period, after adjusting for capital contributions and distributions, is the amount the Company recognizes for its share of the earnings or losses from the equity investment for the period.
−Removed: For the majority of the Company’s solar investments, the HLBV method of accounting results in accelerated losses in the initial years of investment.
−Removed: The Company recognized losses on its solar investments of $ 46.7 million, $ 9.5 million, and $ 10.1 million during the years ended December 31, 2023, 2022, and 2021, respectively.
−Removed: These losses, which include losses attributable to third-party noncontrolling interest investors (syndication partners), are included in “other, net” in "other income (expense)" on the consolidated statements of income.
−Removed: Solar losses attributed to noncontrolling interest investors was $ 26.4 million, $ 10.9 million, and $ 7.4 million during the years ended December 31, 2023, 2022, and 2021, respectively, and is reflected in “net loss attributable to noncontrolling interests” in the consolidated statements of income.
−Removed: Excluding losses attributed to noncontrolling interest investors, the Company recognized losses of $ 20.3 million, gains of $ 1.4 million, and losses of $ 2.7 million on its solar investments during the years ended December 31, 2023, 2022, and 2021, respectively.
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
Notes Receivable
7 unchanged sentences
Restricted cash also includes collateral deposits with derivative counterparties and third-party clearinghouses.
−Removed: Nelnet Insurance Services is required to hold collateral in third-party trusts related to its reinsurance treaties on property and casualty policies.
+Added: In accordance with local insurance regulations, Nelnet Insurance Service’s consolidated captive insurance companies are required to hold collateral in third-party trusts related to its reinsurance treaties on property and casualty policies.
The cash and investments in such trusts are classified by the Company as restricted.
Restricted investments include student loan asset-backed securities classified as available-for-sale.
+Added: In addition, Nelnet Insurance Services retains cash it collects on behalf of its third parties to which it has retroceded a portion of its exposure.
Restricted Cash - Due to Customers
1 unchanged sentence
As part of the Company's Education Technology Services and Payments operating segment, the Company collects tuition payments and subsequently remits these payments to the appropriate schools.
−Removed: In addition, Nelnet
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: Insurance Services retains cash it collects on behalf of its third parties to which it has retroceded a portion of its exposure.
Cash collected for customers and the related liability are included in the consolidated balance sheets.
15 unchanged sentences
However, components are aggregated as a single reporting unit if they have similar economic characteristics.
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
The Company tests goodwill for impairment in accordance with applicable accounting guidance.
3 unchanged sentences
An entity also may elect not to perform the qualitative assessment and, instead, proceed directly to the quantitative impairment test.
−Removed: For the 2023, 2022, and 2021 annual reviews of goodwill, the Company assessed qualitative factors, with the exception of one reporting unit in 2023, and concluded it was not more likely than not that the fair value of its reporting units were less than their carrying amount.
+Added: For the 2024, 2023, and 2022 annual reviews of goodwill, the Company assessed qualitative factors, with the exception of one reporting unit in 2023, and concluded it was not more likely than not that the fair value of its reporting units was less than their carrying amount.
As such, except for the one reporting unit in 2023, no further impairment analysis was required.
7 unchanged sentences
The Company may also use replacement cost or market comparison approaches to estimate fair value if such methods are determined to be more appropriate.
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
Intangible assets with finite lives are amortized over their estimated lives.
17 unchanged sentences
When the discount rate implicit in the lease cannot be readily determined, the Company uses its incremental borrowing rate.
−Removed: Most leases include one or more options to renew, with renewal terms that can be extended.
+Added: Leases may include one or more options to renew, with renewal terms that can be extended.
The exercise of lease renewal options for the majority of leases is at the Company's discretion.
Renewal options that the Company is reasonably certain to exercise are included in the lease term.
−Removed: Certain leases include escalating rental payments or rental payments adjusted periodically for inflation.
+Added: Certain leases include escalating rental payments or rental payments adjusted
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
+Added: periodically for inflation.
None of the lease agreements include any residual value guarantees, a transfer of title, or a purchase option that is reasonably certain to be exercised.
12 unchanged sentences
Depending on current market conditions, additional adjustments to fair value may be based on factors such as liquidity, credit, and bid/offer spreads.
−Removed: In some cases fair values are based on estimates using present
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: value or other valuation techniques.
+Added: In some cases, fair values are based on estimates using present value or other valuation techniques.
Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows.
20 unchanged sentences
In order to achieve that core principle, the Company applies the following five-step approach:
−Removed: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied.
+Added: (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price to the
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
+Added: performance obligations in the contract, and (5) recognize revenue when a performance obligation is satisfied.
The Company’s contracts with customers often include promises to transfer multiple products and services to a customer.
6 unchanged sentences
The Company recognizes an asset for the incremental costs of obtaining and/or fulfilling a contract with a customer if it expects the benefit of those costs to be longer than one year.
−Removed: Total capitalized costs to obtain and/or fulfill a contract were immaterial during the periods presented.
+Added: Capitalized costs of obtaining and/or fulfilling a contract are amortized over the estimated life of the customer.
Additional information related to revenue earned in its Asset Generation and Management, Nelnet Bank, and Nelnet Insurance Services operating segments is provided below.
See note 17 for additional information related to the Company's fee-based operating segments.
−Removed: Loan interest income - The Company recognizes loan interest income as earned, net of amortization of loan premiums and deferred origination costs and the accretion of loan discounts.
+Added: Loan interest income - The Company recognizes loan interest income as earned, net of amortization of loan premiums and deferred origination costs and the accretion of loan discounts and lender fees.
Loan interest income is recognized based upon the expected yield of the loan after giving effect to interest rate reductions resulting from borrower utilization of incentives such as timely payments ("borrower benefits") and other yield adjustments.
−Removed: Loan premiums or discounts, deferred origination costs, and borrower benefits are amortized/accreted over the estimated life of the loans, which includes an estimate of forecasted payments in excess of contractually required payments (the constant prepayment rate).
+Added: Loan premiums or discounts, deferred origination costs, lender fees, and borrower benefits are amortized/accreted over the estimated life of the loans, which includes an estimate of forecasted payments in excess of contractually required payments (the constant prepayment rate).
Loan interest on federally insured student loans is paid by the Department or the borrower, depending on the status of the loan at the time of the accrual.
−Removed: The Department makes quarterly interest subsidy payments on certain qualified FFELP loans until the
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: student is required under the provisions of the Higher Education Act to begin repayment.
+Added: The Department makes quarterly interest subsidy payments on certain qualified FFELP loans until the student is required under the provisions of the Higher Education Act to begin repayment.
Borrower repayment of FFELP loans normally begins within six months after completion of the borrower's course of study, leaving school, or ceasing to carry at least one-half the normal full-time academic load, as determined by the educational institution.
4 unchanged sentences
The special allowance rate is accrued based upon either the daily fiscal quarter average of the 13-week Treasury Bill auction rate, the daily fiscal quarter average of the three-month financial commercial paper rate, or the daily fiscal quarter average of the 30-day Average Secured Overnight Financing Rate (SOFR), relative to the yield of the student loan.
−Removed: The constant prepayment rate currently used by the Company to amortize/accrete federally insured loan premiums/discounts is 6 % for Stafford loans and 5 % for consolidation loans.
+Added: The constant prepayment rate currently used by the Company to amortize/accrete federally insured loan premiums/discounts is 6 % for both federally insured consolidation and Stafford loans.
The Company periodically evaluates the assumptions used to estimate the life of the loans and prepayment rates.
In instances where there are changes to the assumptions, amortization/accretion is adjusted on a cumulative basis to reflect the change since the acquisition of the loan.
+Added: During the second quarter of 2024, the Company changed its estimate of the constant prepayment rate on its consolidation loans from 5 % to 6 %, which resulted in a $ 0.8 million increase to the Company’s net loan discount balance and a corresponding decrease to interest income.
During the fourth quarter of 2022, the Company changed its estimate of the constant prepayment rate on its Stafford loans from 5 % to 6 % and on its consolidation loans from 4 % to 5 %, which resulted in a $ 8.4 million decrease to the Company’s net loan discount balance and a corresponding increase to interest income.
−Removed: During the fourth quarter of 2021, the Company changed its estimate of the constant prepayment rate on its consolidation loans from 3 % to 4 %, which resulted in a $ 6.2 million increase to the Company’s net loan discount balance and a corresponding decrease to interest income.
The Company also pays the Department an annual 105 basis point rebate fee on Consolidation loans.
These rebate fees are netted against loan interest income.
−Removed: Reinsurance premiums earned and related expenses - Premiums are recognized as income, net of applicable retrocessional coverage, over the terms of the related contracts and polices.
−Removed: Unearned premiums represent the portion of premiums written that relate to the unexpired terms of contracts and polices in force.
−Removed: Acquisition costs are incurred when a contract or policy is issued and only the costs directly related to the successful acquisition of new and renewal contract or policies are deferred and amortized over the same period in which the related premiums are earned.
+Added: Reinsurance premiums earned and related expenses - The Company earns reinsurance premiums on prospective property and casualty reinsurance contracts over the loss exposure or coverage period in proportion to the level of protection provided.
+Added: Reinsurance premiums are recognized as income, net of amounts ceded to reinsurers, over the terms of the related contracts and
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
+Added: polices, which is generally pro rata over a policy period of 12 months.
+Added: Unearned premiums represent the portion of premiums written related to the unexpired terms of contracts and policies in force.
+Added: Acquisition costs are incurred when a contract or policy is issued and only the direct incremental costs related to the successful acquisition of new and renewal contract or policies are deferred and amortized over the same period in which the related premiums are earned.
Acquisition costs consist principally of commissions and brokerage expenses and are shown net of commissions and brokerage expenses earned on ceded reinsurance.
The reserve for claims and claim expenses includes estimates for unpaid claims and claim expenses on reported losses as well as an estimate of losses incurred but not reported.
−Removed: The reserve is based on individual claims, case reserves, and other reserve estimates reported by insureds and ceding companies.
+Added: The reserve is based on individual claims, case reserves, and other reserve estimates reported by insureds and ceding companies, and represents the estimated ultimate payment amounts.
Inherent in the estimates of ultimate losses are expected trends in claim severity and frequency and other factors which could vary significantly as claims are settled.
+Added: The reserves are adjusted regularly based upon experience.
+Added: The Company performs a continuing review of its claims and claim expenses, including its reserving techniques and the impact of retroceded risk.
+Added: Retrocession reinsurance treaties do not relieve the Company of its obligation to direct writing companies.
+Added: The reserves are also reviewed regularly by qualified actuaries employed or contracted by the Company.
+Added: Since the reserves are based on estimates, the ultimate liability may be more or less than such reserves.
+Added: The effects of changes in such estimated reserves are included in the consolidated statements of income in the period in which the estimates are changed.
+Added: Such changes in estimates could occur in a future period and may be material to the Company’s results of operations and financial position in such period.
Deposits and Interest Expense
−Removed: Deposits are interest-bearing deposits and consist of brokered certificates of deposit (CDs) and retail and other savings deposits and CDs.
−Removed: Retail and other savings deposits include deposits from Educational 529 College Savings (529) and Health Savings plans (HSA), Short Term Federal Investment Trust (STFIT), and commercial and institutional CDs.
+Added: Deposits are interest-bearing deposits and primarily consist of brokered certificates of deposit (CDs), retail and other savings deposits and CDs, and intercompany deposits.
+Added: Retail and other savings deposits include deposits from Educational 529 College Savings plans, Health Savings plans, retirement savings plans, Short Term Federal Investment Trust (STFIT), commercial and consumer savings, and FDIC sweep deposits.
Union Bank and Trust Company (“Union Bank”), a related party, is the program manager for the Educational 529 College Savings plans and trustee for the STFIT.
7 unchanged sentences
The amortization of debt issuance costs and accretion of discounts are recognized using the effective interest method.
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
Transfer of Financial Assets and Extinguishments of Liabilities
8 unchanged sentences
As such, variation margin payments are considered in determining the fair value of the centrally cleared derivative portfolio (“settled-to-market”).
−Removed: The Company records settled-to-market derivative contracts on its balance sheet with a fair value of zero due to the payment or receipt of variation margin between the Company and the CME settling the outstanding mark-to-market exposure on such derivatives to a balance of zero on a daily basis, and records the underlying daily changes in the market value of such derivative contracts that result in such receipts or payments on its income statement as realized derivative market value adjustments in “derivative market value adjustments and derivative settlements, net” on the consolidated statements of income.
+Added: The Company records settled-to-market derivative contracts on its balance sheet with a fair value of zero due to the payment or receipt of variation margin between the Company and the CME settling the outstanding mark-to-market exposure on such
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
+Added: derivatives to a balance of zero on a daily basis, and records the underlying daily changes in the market value of such derivative contracts that result in such receipts or payments on its income statement as realized derivative market value adjustments in “derivative market value adjustments and derivative settlements, net” on the consolidated statements of income.
The Company records derivative instruments that are not required to be cleared at a clearinghouse (non-centrally cleared derivatives) in the consolidated balance sheets on a gross basis as either an asset or liability measured at its fair value.
14 unchanged sentences
The effect on deferred tax assets and liabilities of a change in tax rates is recognized in income in the period that includes the enactment date.
−Removed: The Company uses the deferred method of accounting for its credits related to state tax incentives and investments that generate investment tax credits.
+Added: Unless an investment qualifies for proportional amortization, the Company uses the deferred method of accounting for its credits related to state tax incentives and investments that generate investment tax credits.
The investment tax credits are recognized as a reduction to the related asset.
Income tax expense includes deferred tax expense, which represents a portion of the net change in the deferred tax asset or liability balance during the year, plus any change made in the valuation allowance, and current tax expense, which represents the amount of tax currently payable to or receivable from a tax authority plus amounts for expected tax deficiencies .
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
Compensation Expense for Stock Based Awards
7 unchanged sentences
The fair value of grants under this plan is determined on the grant date based on the Company's stock price and is expensed over the board member's annual service period.
+Added: Restructuring Activities
+Added: From time to time, the Company may implement plans to restructure the business.
+Added: In conjunction with these restructuring plans, involuntary benefit arrangements, and certain other costs that are incremental and incurred as a direct result of the restructuring plans, are recognized as restructuring charges.
+Added: See note 11 for additional information.
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
Translation of Foreign Currencies
5 unchanged sentences
The cumulative translation adjustments associated with the net assets of foreign subsidiaries are recorded in accumulated other comprehensive earnings in the consolidated statements of shareholders’ equity.
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
Loans and Accrued Interest Receivable and Allowance for Loan Losses
7 unchanged sentences
Private education loans 221,744 277,320
−Removed: Consumer and other loans 85,935 350,915
+Added: Consumer and other loans (a) 345,560 85,935
Non-Nelnet Bank loans 8,955,868 12,049,462
−Removed: Federally insured loans (a) — 65,913
Private education loans 482,445 360,520
−Removed: Consumer and other loans 72,352 —
+Added: Consumer and other loans (a) 162,152 72,352
Nelnet Bank loans 644,597 432,872
Accrued interest receivable 549,283 764,385
−Removed: Loan discount, net of unamortized loan premiums and deferred origination costs ( 33,872 ) ( 30,714 )
+Added: Loan discount and deferred lender fees, net of unamortized loan premiums and deferred origination costs ( 42,114 ) ( 33,872 )
Allowance for loan losses:
4 unchanged sentences
Non-Nelnet Bank allowance for loan losses ( 98,689 ) ( 95,945 )
−Removed: Federally insured loans (a) — ( 170 )
Private education loans ( 10,086 ) ( 3,347 )
2 unchanged sentences
$ 9,992,744 13,108,204
−Removed: (a) During 2023, Nelnet Bank sold its federally insured loan portfolio to the Company’s AGM (non-Nelnet Bank) operating segment.
+Added: (a) During 2024, Nelnet Bank sold a $ 65.1 million consumer loan portfolio to the Company’s AGM (non-Nelnet Bank) operating segment.
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
The following table summarizes the allowance for loan losses as a percentage of the ending loan balance for each of the Company's loan portfolios.
3 unchanged sentences
Private education loans 5.02 % 5.68 %
−Removed: Consumer and other loans 13.66 % 8.62 %
−Removed: Federally insured loans (a) — 0.26 %
+Added: Consumer and other loans (b) 11.13 % 13.66 %
Private education loans 2.09 % 0.93 %
−Removed: Consumer and other loans 7.40 % —
−Removed: (a) As of December 31, 2023 and 2022, the allowance for loan losses as a percent of the risk sharing component of federally insured loans not covered by the federal guaranty for non-Nelnet Bank was 21.8 % and 22.4 %, respectively, and for Nelnet Bank was 10.3 % as of December 31, 2022.
+Added: Consumer and other loans (b) 3.77 % 7.40 %
+Added: (a) As of December 31, 2024 and 2023, the allowance for loan losses as a percent of the risk sharing component of federally insured student loans not covered by the federal guaranty was 20.6 % and 21.8 %, respectively.
+Added: (b) Decrease as of December 31, 2024 compared with 2023 was due to the change in the mix of loans outstanding at the end of each period reported.
+Added: During 2024, 2023, and 2022, the Company sold $ 726.6 million, $ 728.1 million, and $ 167.0 million of loans, respectively, and recognized net losses of $ 1.6 million, $ 17.7 million, and $ 8.6 million, respectively.
+Added: Consumer loans sold by the Company during these periods were to non-affiliated third parties who securitized such loans.
+Added: As partial consideration received for the majority of such loan portfolio sales, the Company received residual interest in the third parties’ loan securitizations that are included in "other investments and notes receivable, net" on the Company's consolidated balance sheets.
AND SUBSIDIARIES
1 unchanged sentence
(Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: During 2023, 2022, and 2021, the Company sold $ 728.1 million, $ 167.0 million, and $ 101.1 million of consumer and other loans, respectively, and recognized net gains of $ 39.7 million, $ 2.9 million, and $ 18.7 million, respectively.
−Removed: Consumer loans sold by the Company were to non-affiliated third parties who securitized such loans.
−Removed: As partial consideration received for the majority of such loan portfolio sales, the Company received residual interest in the third parties’ loan securitizations that are included in "investments and notes receivable" on the Company's consolidated balance sheets.
Activity in the Allowance for Loan Losses
The following table presents the activity in the allowance for loan losses by portfolio segment.
−Removed: 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
+Added: Balance at beginning of period Provision (negative provision) for loan losses (a) Charge-offs Recoveries Initial allowance on loans purchased with credit deterioration Loan sales Balance at end of period
Year ended December 31, 2024
3 unchanged sentences
Consumer and other loans 11,742 29,000 ( 11,033 ) 1,349 — 7,410 38,468
−Removed: Federally insured loans 170 ( 14 ) ( 12 ) — — ( 144 ) —
Private education loans 3,347 7,830 ( 3,084 ) 762 1,231 — 10,086
8 unchanged sentences
Private education loans 2,390 2,171 ( 1,214 ) — — — 3,347
+Added: Consumer and other loans — 6,245 ( 1,775 ) 881 — — 5,351
$ 131,827 8,042 ( 38,367 ) 3,135 6 — 104,643
7 unchanged sentences
$ 127,113 34,900 ( 32,096 ) 1,248 662 — 131,827
−Removed: (a) During the years ended December 31, 2023, 2022, and 2021 the Company acquired $ 3.3 million (par value), $ 12.0 million (par value), and $ 224.1 million (par value), respectively, of federally insured rehabilitation loans that met the definition of PCD loans when they were purchased by the Company.
AND SUBSIDIARIES
1 unchanged sentence
(Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: The following table summarizes net charge-offs as a percentage of average loans for each of the Company's loan portfolios.
+Added: (a) Once a loan is classified as held for sale, any allowance for loan losses that existed immediately prior to the reclassification to held for sale is reversed through provision.
+Added: The following table presents the reduction to provision for loan losses as a result of the loan sales described under "Loan Sales" above.
+Added: Provision for current period Loan sale reduction to provision Provision
+Added: (negative provision) for loan losses
Year ended December 31, 2024
+Added: Non-Nelnet Bank
+Added: Consumer and other loans $ 42,529 ( 13,529 ) 29,000
+Added: Year ended December 31, 2023
+Added: Non-Nelnet Bank
+Added: Consumer and other loans $ 49,807 ( 57,335 ) ( 7,528 )
+Added: Year ended December 31, 2022
+Added: Non-Nelnet Bank
+Added: Consumer and other loans $ 38,383 ( 11,468 ) 26,915
+Added: The following table summarizes annualized net charge-offs as a percentage of average loans for each of the Company's loan portfolios.
+Added: Year ended December 31,
2024 2023 2022
6 unchanged sentences
Consumer and other loans 6.69 % 2.64 % —
−Removed: During the year ended December 31, 2021, the Company recorded a negative provision for loan losses due to (i) management's estimate of certain improved economic conditions as of December 31, 2021 in comparison to management's estimate of economic conditions used to determine the allowance for loan losses as of December 31, 2020;
−Removed: (ii) an increase in the constant prepayment rate on FFELP consolidation loans;
−Removed: and (iii) the amortization of the federally insured loan portfolio.
−Removed: These amounts were partially offset by the establishment of an initial allowance for loans originated and acquired during the period.
During the year ended December 31, 2022, the Company recorded a provision for loan losses due to (i) management's estimate of declining economic conditions as of December 31, 2022 in comparison to management's estimate of economic conditions used to determine the allowance for loan losses as of December 31, 2021;
and (ii) the establishment of an initial allowance for loans originated and acquired during the period.
−Removed: During the year ended December 31, 2023, the Company recorded a provision for loan losses primarily due to the establishment of an initial allowance for loans originated and acquired during the period.
−Removed: During both 2022 and 2023, provision for loan losses were partially offset by the amortization of the federally insured loan portfolio and an increase in expected prepayments as a result of continued initiatives offered and proposed by the Department for FFELP borrowers to consolidate their loans into Federal Direct Loan Program loans with the Department.
+Added: During the years ended December 31, 2023 and 2024, the Company recorded a provision for loan losses primarily due to the establishment of an initial allowance for consumer and other loans originated and acquired during the period.
+Added: During 2024, additional provision was also recorded on a pool of consumer loans at both Nelnet Bank and AGM (Non-Nelnet Bank) in which loss expectations increased during the period.
+Added: During 2022, 2023 and 2024, provision for loan losses was offset by the amortization of the federally insured loan portfolio;
+Added: and during 2022 and 2023 by an increase in expected prepayments as a result of continued initiatives offered and proposed by the Department for FFELP borrowers to consolidate their loans into Federal Direct Loan Program loans with the Department.
Unfunded Loan Commitments
−Removed: As of December 31, 2023, Nelnet Bank has a liability of approximately $ 158,000 related to $ 12.3 million of unfunded private education and consumer loan commitments.
−Removed: The liability for unfunded loan commitments is included in "other liabilities" on the consolidated balance sheets.
−Removed: During both years ended December 31, 2023 and 2022, Nelnet Bank recognized provision for loan losses of approximately $ 73,000 related to unfunded loan commitments.
+Added: As of December 31, 2024 and 2023, Nelnet Bank had a liability of approximately $ 326,000 and $ 158,000 , respectively, related to $ 40.7 million and $ 12.3 million, respectively, of unfunded private education, consumer, and other loan commitments.
+Added: When a new loan commitment is made, the Company records an allowance that is included in "other liabilities" on the consolidated balance sheet by recording a provision for loan losses.
+Added: When the loan is funded, the Company transfers the liability to the allowance for loan losses.
+Added: Below is a reconciliation of the provision for loan losses reported in the consolidated statements of income.
AND SUBSIDIARIES
1 unchanged sentence
(Dollars in thousands, except share amounts, unless otherwise noted)
+Added: Year ended December 31,
+Added: 2024 2023 2022
+Added: Provision for loan losses from allowance activity table above $ 54,439 8,042 34,900
+Added: Provision for unfunded loan commitments 168 73 73
+Added: Provision for loan losses reported in consolidated statements of income $ 54,607 8,115 34,973
Key Credit Quality Indicators
3 unchanged sentences
Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs.
+Added: Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the following tables, do not include those loans while they are in forbearance).
The following table presents the Company’s loan status and delinquency amounts.
31 unchanged sentences
Total private education loans and accrued interest receivable, net of allowance for loan losses $ 206,283 $ 256,186 $ 239,080
−Removed: Consumer and other loans - Non-Nelnet Bank:
−Removed: Loans in deferment $ 146 0.2 % $ 109 0.0 % $ 43 0.1 %
−Removed: Loans in repayment status:
−Removed: Loans current 81,195 94.6 % 346,812 98.9 % 49,697 97.0 %
−Removed: Loans delinquent 31-60 days (c) 2,035 2.4 1,906 0.5 414 0.8
−Removed: Loans delinquent 61-90 days (c) 1,189 1.4 764 0.2 322 0.6
−Removed: Loans delinquent 91 days or greater (c) 1,370 1.6 1,324 0.4 825 1.6
−Removed: Total loans in repayment 85,789 99.8 100.0 % 350,806 100.0 100.0 % 51,258 99.9 100.0 %
−Removed: Total consumer and other loans 85,935 100.0 % 350,915 100.0 % 51,301 100.0 %
−Removed: Accrued interest receivable 861 3,658 396
−Removed: Loan discount, net of unamortized premiums ( 2,474 ) ( 588 ) 913
−Removed: Allowance for loan losses ( 11,742 ) ( 30,263 ) ( 6,481 )
−Removed: Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 72,580 $ 323,722 $ 46,129
AND SUBSIDIARIES
3 unchanged sentences
2024 2023 2022
−Removed: Federally insured loans - Nelnet Bank (e):
−Removed: Loans in-school/grace/deferment (a) $ 241 0.4 % $ 330 0.4 %
−Removed: Loans in forbearance (b) 981 1.5 1,057 1.2
+Added: Consumer and other loans - Non-Nelnet Bank:
+Added: Loans in deferment $ 150 0.0 % $ 146 0.2 % $ 109 0.0 %
Loans in repayment status:
2 unchanged sentences
Loans delinquent 61-90 days (c) 2,143 0.6 1,189 1.4 764 0.2
−Removed: Loans delinquent 90-119 days (c) 222 0.3 — —
−Removed: Loans delinquent 120-270 days (c) 183 0.3 209 0.2
−Removed: Loans delinquent 271 days or greater (c)(d) 159 0.2 — —
+Added: Loans delinquent 91 days or greater (c) 4,245 1.2 1,370 1.6 1,324 0.4
Total loans in repayment 345,410 100.0 100.0 % 85,789 99.8 100.0 % 350,806 100.0 100.0 %
−Removed: Total federally insured loans 65,913 100.0 % 88,011 100.0 %
+Added: Total consumer and other loans 345,560 100.0 % 85,935 100.0 % 350,915 100.0 %
Accrued interest receivable 1,868 861 3,658
−Removed: Loan premium 20 26
+Added: Loan discount and deferred lender fees, net of unamortized premiums ( 10,713 ) ( 2,474 ) ( 588 )
Allowance for loan losses ( 38,468 ) ( 11,742 ) ( 30,263 )
−Removed: Total federally insured loans and accrued interest receivable, net of allowance for loan losses $ 67,521 $ 88,985
+Added: Total consumer and other loans and accrued interest receivable, net of allowance for loan losses $ 298,247 $ 72,580 $ 323,722
Private education loans - Nelnet Bank (e):
9 unchanged sentences
Accrued interest receivable 4,103 2,023 1,152
−Removed: Deferred origination costs, net of unaccreted discount 5,608 5,360 2,560
+Added: Loan discount, net of unamortized premiums and deferred origination costs ( 4,581 ) 5,608 5,360
Allowance for loan losses ( 10,086 ) ( 3,347 ) ( 2,390 )
10 unchanged sentences
Accrued interest receivable 1,021 575
−Removed: Loan discount ( 6 )
+Added: Loan premium, net of unaccreted discount 1,043 ( 6 )
Allowance for loan losses ( 6,115 ) ( 5,351 )
9 unchanged sentences
(Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: An additional key credit quality indicator for Nelnet Bank private education and consumer loans is FICO scores at the time of origination.
−Removed: The following tables highlight the gross principal balance of Nelnet Bank's portfolios, by year of origination, stratified by FICO score at the time of origination.
+Added: An additional key credit quality indicator for Nelnet Bank private education and consumer loans is FICO scores at the time of origination or purchase.
+Added: The following tables highlight the principal balance of Nelnet Bank's portfolios, by year of origination, stratified by FICO score at the time of origination.
Nelnet Bank Private Education Loans
Loan balance as of December 31, 2024
−Removed: 2023 2022 2021 2020 Total
−Removed: FICO at origination:
+Added: 2024 2023 2022 2021 2020 Prior years Total
+Added: FICO at origination or purchase:
Less than 705 $ 2,566 3,578 4,759 4,182 331 15,485 30,901
7 unchanged sentences
2023 2022 2021 2020 Total
−Removed: FICO at origination:
+Added: FICO at origination or purchase:
Less than 705 $ 3,840 5,495 4,647 386 14,368
3 unchanged sentences
Greater than 794 15,057 77,996 58,695 5,226 156,974
+Added: No FICO score available or required (a) 4,052 — — — 4,052
$ 46,907 190,466 114,278 8,869 360,520
1 unchanged sentence
Loan balance as of December 31, 2024
+Added: 2024 2023 2022 2021 2020 Prior years Total
+Added: FICO at origination:
+Added: Less than 720 $ 19,264 1,762 — 376 675 1,170 23,247
+Added: 720 - 769 41,217 4,502 19 6,152 5,448 3,105 60,443
+Added: Greater than 769 57,323 6,577 103 5,834 2,755 1,165 73,757
+Added: No FICO score available or required (a) 3,936 437 277 55 — — 4,705
+Added: $ 121,740 13,278 399 12,417 8,878 5,440 162,152
+Added: Loan balance as of December 31, 2023
2023 2022 2021 Total
7 unchanged sentences
Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk.
−Removed: Nonaccrual Status
−Removed: The Company does not place federally insured loans on nonaccrual status due to the government guaranty.
−Removed: The amortized cost of private education, consumer, and other loans on nonaccrual status, as well as the allowance for loan losses related to such loans, as of December 31, 2023, 2022, and 2021 was not material.
AND SUBSIDIARIES
1 unchanged sentence
(Dollars in thousands, except share amounts, unless otherwise noted)
+Added: Nonaccrual Status
+Added: The Company does not place federally insured loans on nonaccrual status due to the government guaranty.
+Added: The amortized cost of private education, consumer, and other loans on nonaccrual status, as well as the allowance for loan losses related to such loans, as of December 31, 2024, 2023, and 2022 was not material.
Amortized Cost Basis by Origination Year
28 unchanged sentences
Accrued interest receivable 1,868
−Removed: Loan discount, net of unamortized premiums ( 2,474 )
+Added: Loan discount and deferred lender fees, net of unamortized premiums ( 10,713 )
Allowance for loan losses ( 38,468 )
1 unchanged sentence
Gross charge-offs - year ended December 31, 2024 $ 479 8,197 1,961 236 40 120 11,033
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
+Added: 2024 2023 2022 2021 2020 Prior years Total
Private education loans - Nelnet Bank (a):
9 unchanged sentences
Accrued interest receivable 4,103
−Removed: Deferred origination costs, net of unaccreted discount 5,608
+Added: Loan discount, net of unamortized premiums and deferred origination costs ( 4,581 )
Allowance for loan losses ( 10,086 )
1 unchanged sentence
Gross charge-offs - year ended December 31, 2024 $ 113 1,010 986 342 47 586 3,084
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: 2023 2022 2021 2020 2019 Prior years Total
Consumer and other loans - Nelnet Bank (a):
8 unchanged sentences
Accrued interest receivable 1,021
−Removed: Loan discount ( 6 )
+Added: Loan premium, net of unaccreted discount 1,043
Allowance for loan losses ( 6,115 )
21 unchanged sentences
1/31/26 / 4/1/26
−Removed: Consumer loan warehouse facility 23,691 5.70 % 11/14/25
+Added: Consumer loan warehouse facilities 90,000 4.46 % / 4.57 %
+Added: 8/1/26 / 11/13/27
Variable-rate bonds and notes issued in private education loan asset-backed securitizations 54,973 5.90 % / 6.82 %
5 unchanged sentences
5/4/25 / 1/30/33
−Removed: Repurchase agreement 208,164 6.35 % - 6.81 %
−Removed: 1/22/24 - 12/20/24
−Removed: Other - due to related party 5,778 5.00 % - 6.05 %
−Removed: 3/1/24 - 11/15/30
Discount on bonds and notes payable and debt issuance costs ( 48,654 )
12 unchanged sentences
10/25/67 - 8/27/68
−Removed: FFELP loan warehouse facility 978,956 4.69 % / 4.71 %
−Removed: Private education loan warehouse facility 64,356 4.72 % 12/31/23
+Added: FFELP loan warehouse facilities 1,398,485 5.41 % / 5.70 %
+Added: 4/2/25 / 5/22/25
Consumer loan warehouse facility 23,691 5.70 % 11/14/25
4 unchanged sentences
Unsecured line of credit — — 9/22/26
−Removed: Participation agreement 395,432 5.02 % 5/4/23
−Removed: Repurchase agreements 567,254 0.97 % - 5.60 %
+Added: Participation agreements 10,063 5.58 % - 6.08 %
3/12/24 / 5/4/24
−Removed: Other - due to related party 6,187 3.55 % / 6.05 %
+Added: Repurchase agreement 208,164 6.35 % - 6.81 %
1/22/24 - 12/20/24
+Added: Other - due to related party (a) 5,778 5.00 % - 6.05 %
+Added: 3/1/24 - 11/15/30
Discount on bonds and notes payable and debt issuance costs ( 89,765 )
Total $ 11,828,393
+Added: (a) Union Bank, a related party, provided funding to the Company for certain properties and solar fields.
+Added: During 2024, all such loans were paid in full.
AND SUBSIDIARIES
6 unchanged sentences
Type of loans Maximum financing amount Amount outstanding Amount available Expiration of liquidity provisions Final maturity date Advance rate Advanced as equity support
−Removed: FFELP $ 1,250,000 1,016,023 233,977 5/22/2024 5/22/2025 note (a) $ 70,739
−Removed: FFELP 432,000 382,462 49,538 4/2/2024 4/2/2025 92 % 31,955
+Added: FFELP (a) $ 600,000 564,796 35,204 1/31/2025 1/31/2026 note (b) $ 40,769
+Added: FFELP (c) 375,000 288,369 86,631 4/1/2025 4/1/2026 92 % 24,186
$ 975,000 853,165 121,835 $ 64,955
−Removed: Consumer 200,000 23,691 176,309 11/14/2024 11/14/2025 70 % 10,352
−Removed: (a) This facility has a static advance rate until the expiration date of the liquidity provisions.
+Added: Consumer (d) $ 100,000 5,000 95,000 11/13/2026 11/13/2027 70 % $ 2,111
+Added: Consumer (e) 125,000 85,000 40,000 1/1/2026 8/1/2026 60 % - 80 %
+Added: $ 225,000 90,000 135,000 $ 22,552
+Added: (a) During 2024, this facility was amended resulting in a reduction of the maximum financing amount from $ 1.25 billion to $ 600 million and extending the expiration of liquidity provisions and final maturity date to January 31, 2025 and January 31, 2026, respectively.
+Added: On January 31, 2025, the Company extended the liquidity provisions and final maturity date on this facility to July 31, 2025 and July 31, 2026, respectively.
+Added: (b) This facility has a static advance rate until the expiration date of the liquidity provisions.
The maximum advance rates for this facility are 90 % to 96 %, and the minimum advance rates are 84 % to 90 %.
1 unchanged sentence
The loans would then be funded at this new advance rate until the final maturity date of the facility.
+Added: (c) During 2024, this facility was amended resulting in a reduction of the maximum financing amount from $ 432 million to $ 375 million, and extending the expiration of liquidity provisions and final maturity date to April 1, 2025 and April 1, 2026, respectively.
+Added: (d) During 2024, this facility was amended resulting in a reduction of the maximum financing amount from $ 200 million to $ 100 million and extending the expiration of liquidity provisions and final maturity date to November 13, 2026 and November 13, 2027, respectively.
+Added: (e) On July 1, 2024, the Company closed on this $ 125 million consumer loan facility.
Asset-backed securitizations
5 unchanged sentences
The notes issued have a final maturity date of November 25, 2053.
−Removed: Upon completion of this securitization, the Company terminated its private education loan warehouse facility.
+Added: There were no asset-backed securitization transactions completed during the year ended December 31, 2024.
Unsecured Line of Credit
8 unchanged sentences
• A limitation on permitted investments, including business acquisitions that are not in one of the Company's existing lines of business
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
As of December 31, 2024, the Company was in compliance with all of these requirements.
3 unchanged sentences
A default on the Company's other debt facilities would result in an event of default on the Company's unsecured line of credit that would result in the outstanding balance on the line of credit, if any, becoming immediately due and payable.
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: Participation Agreements
−Removed: The Company has an agreement with Union Bank, a related party, as trustee for various grantor trusts, under which Union Bank has agreed to purchase from the Company participation interests in FFELP loan asset-backed securities (bond investments).
−Removed: As of December 31, 2023 and 2022, $ 63,000 (par value) and $ 395.4 million (par value), respectively, of FFELP loan asset-backed securities were subject to outstanding participation interests held by Union Bank, as trustee, under this agreement.
−Removed: The agreement automatically renews annually and is terminable by either party upon five business days' notice.
−Removed: The Company can participate FFELP loan asset-backed securities to Union Bank to the extent of availability under the grantor trusts, up to $ 400.0 million or an amount in excess of $ 400.0 million if mutually agreed to by both parties.
−Removed: The Company maintains legal ownership of the FFELP loan asset-backed securities and, in its discretion, approves and accomplishes any sale, assignment, transfer, encumbrance, or other disposition of the securities.
−Removed: As such, the FFELP loan asset-backed securities subject to this agreement are included on the Company's consolidated balance sheets as "investments and notes receivable" and the participation interests outstanding have been accounted for by the Company as a secured borrowing.
−Removed: On December 21, 2023, the Company entered into a $ 10.0 million participation agreement with a non-affiliated third-party, the proceeds of which are collateralized by consumer loans.
−Removed: The third-party participant does not have the right to pledge, transfer, or otherwise dispose of their participation interest in all or any portion of the loans subject to this agreement.
−Removed: As such, the consumer loans subject to this agreement are included on the Company's consolidated balance sheet and the participation interests outstanding have been accounted for by the Company as a secured borrowing.
−Removed: This participation agreement will amortize as the consumer loans subject to the participation pay down.
−Removed: Repurchase Agreements
−Removed: On May 3, 2021, the Company entered into a repurchase agreement with a non-affiliated third party, the proceeds of which are collateralized by certain private education and FFELP loan asset-backed securities (bond investments).
−Removed: The agreement has various maturity dates through December 20, 2024 or earlier if either party provides 180 days’ prior written notice, and the Company is subject to margin deficit payment requirements if the fair value of the securities subject to the agreement is less than the original purchase price of such securities on any scheduled reset date.
−Removed: Included in “bonds and notes payable” in the consolidated balance sheets as of December 31, 2023 and 2022 was $ 208.2 million and $ 299.8 million, respectively, subject to this agreement.
−Removed: See note 6 and below under “Debt Repurchases” for additional information about the private education and FFELP loan asset-backed securities investments, respectively, serving as collateral for this repurchase agreement.
−Removed: On June 23, 2021, the Company entered into a separate repurchase agreement with a non-affiliated third party, which was collateralized by certain private education and FFELP loan asset-backed securities (bond investments).
−Removed: The outstanding balance of this facility as of December 31, 2022 was $ 267.5 million.
−Removed: The outstanding balance of this facility was paid in full during the third quarter of 2023.
+Added: Repurchase Agreement
+Added: The Company had a repurchase agreement with a non-affiliated third party, the proceeds of which were collateralized by certain private education loan asset-backed securities (bond investments).
+Added: The outstanding balance of this facility was paid in full during the fourth quarter of 2024.
Nelnet Bank has unsecured Federal Funds lines of credit with correspondent banks totaling $ 50.0 million at a stated interest rate at the time of borrowing.
1 unchanged sentence
In addition, FFELP and private education loans are accepted as collateral for FRB borrowings.
−Removed: As of December 31, 2023 and 2022, Nelnet Bank had no amounts drawn on their Federal Funds, FRB, or FHLB lines of credit.
+Added: As of December 31, 2024 and 2023, Nelnet Bank had no amounts drawn on its Federal Funds, FRB, or FHLB lines of credit.
As of December 31, 2024, the Bank has $ 115.8 million of collateral pledged with the FRB that it may borrow against.
2 unchanged sentences
The Company is in compliance with all covenants of the bond indentures and related credit agreements as of December 31, 2024.
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
Maturity Schedule
Bonds and notes outstanding as of December 31, 2024 are due in varying amounts as shown below.
−Removed: 2024 $ 218,505
−Removed: 2025 1,422,176
2030 and thereafter 7,415,186
1 unchanged sentence
Subject to certain provisions, all bonds and notes are subject to redemption prior to maturity at the option of certain lending subsidiaries.
−Removed: Accrued Interest Liability
−Removed: During 2021, the Company reversed a historical accrued interest liability of $ 23.8 million on certain bonds, which liability the Company determined was no longer probable of being required to be paid.
−Removed: The liability was initially recorded when certain asset-backed securitizations were acquired in 2011 and 2013.
−Removed: The reduction of this liability is reflected in (a reduction of) "interest expense on bonds and notes payable and bank deposits" in the consolidated statements of income.
Debt Repurchases
6 unchanged sentences
Remaining unamortized cost of issuance ( 32 ) ( 14 ) ( 821 )
−Removed: Gain (loss), net $ 815 1,231 ( 6,775 )
+Added: Gain, net of losses $ 54 815 1,231
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
The Company has repurchased certain of its own asset-backed securities (bonds and notes payable) in the secondary market.
3 unchanged sentences
As of December 31, 2024, the Company holds $ 97.5 million (par value) of its own FFELP asset-backed securities.
−Removed: As of December 31, 2023, $ 118.9 million (par value) of the Company's repurchased FFELP loan asset-backed securities were serving as collateral on amounts outstanding under the Company's repurchase agreement.
−Removed: In the second quarter of 2023, the Company redeemed $ 188.6 million of FFELP loan asset-backed debt securities (bonds and notes payable) prior to their maturity, of which the Company owned $ 140.5 million of the bonds that were redeemed.
−Removed: The remaining unamortized debt discount associated with these bonds at the time of redemption was written-off, resulting in a $ 25.9 million non-cash expense recognized in the second quarter of 2023.
−Removed: This expense is included in "interest expense on bonds and notes payable and bank deposits" on the consolidated statements of income.
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
+Added: Debt Redemptions
+Added: During 2024 and 2023, the Company redeemed $ 364.6 million and $ 188.6 million, respectively, of FFELP loan asset-backed debt securities (bonds and notes payable) prior to their maturity.
+Added: The remaining unamortized debt discount associated with these bonds was written-off, resulting in a $ 6.3 million and $ 25.9 million non-cash expense recognized in 2024 and 2023, respectively.
+Added: The expense related to the acceleration of unamortized debt discount costs is included in "interest expense on bonds and notes payable and bank deposits" on the consolidated statements of income.
Derivative Financial Instruments
5 unchanged sentences
Settled-to-market derivative instruments used as part of the Company's interest rate risk management strategy are discussed below.
−Removed: Interest earned on the majority of the Company's FFELP student loan assets was indexed to the one-month LIBOR rate.
+Added: The Company earns interest on the majority of its FFELP student loan assets based on a 30-day average SOFR index while a portion of its FFELP loan assets is funded with 90-day average SOFR and 3-month CME term SOFR.
+Added: Prior to the discontinuation of LIBOR on June 30, 2023, interest earned on the majority of the Company's FFELP student loan assets was indexed to the one-month LIBOR rate.
Meanwhile, the Company funded a portion of its FFELP loan assets with three-month LIBOR indexed floating rate securities.
−Removed: Subsequent to the discontinuation of LIBOR on June 30, 2023, the Company now earns interest on the majority of the Company’s FFELP student loan assets based on 30-day average SOFR while a portion of its FFELP loan assets are funded with 90-day average SOFR and 3-month CME term SOFR.
The differing interest rate characteristics of the Company's loan assets versus the liabilities funding these assets results in basis risk, which impacts the Company's excess spread earned on its loans.
2 unchanged sentences
The Company has used derivative instruments to hedge its basis risk and repricing risk.
−Removed: The Company has entered into basis swaps in which the Company received three-month LIBOR set discretely in advance and paid one-month LIBOR plus or minus a spread as defined in the agreements (the "1:3 Basis Swaps").
−Removed: Subsequent to the discontinuation of LIBOR on June 30, 2023, the Company now receives and pays the term adjusted SOFR rate on these derivatives (plus the tenor spread adjustment to LIBOR).
+Added: The Company has entered into basis swaps in which the Company receives and pays the term adjusted SOFR plus the tenor spread adjustment to LIBOR.
+Added: Prior to the discontinuation of LIBOR on June 30, 2023, the Company received three-month LIBOR set discretely in advance and paid one-month LIBOR plus or minus a spread as defined in the agreements (the "1:3 Basis Swaps").
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
The following table summarizes the Company’s 1:3 Basis Swaps outstanding:
5 unchanged sentences
$ 1,400,000 3,150,000
−Removed: $ 3,150,000 3,900,000
−Removed: The weighted average rate paid by the Company on the 1:3 Basis Swaps as of December 31, 2023 was the term adjusted SOFR (plus the tenor spread adjustment relating to LIBOR) plus 10.1 basis points and as of December 31, 2022 was one-month LIBOR plus 9.7 basis points, respectively.
+Added: The weighted average rate paid by the Company on the 1:3 Basis Swaps as of December 31, 2024 and 2023 was the term adjusted SOFR (plus the tenor spread adjustment relating to LIBOR) plus 10.4 basis points and 10.1 basis points, respectively.
Interest Rate Swaps – Floor Income Hedges
2 unchanged sentences
The Company generally finances its student loan portfolio with variable rate debt.
−Removed: In low and/or certain declining interest rate environments, when the fixed borrower rate is higher than the SAP rate, these student loans earn at a fixed rate while the
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: interest on the variable rate debt typically continues to reflect the low and/or declining interest rates.
+Added: In low and/or certain declining interest rate environments, when the fixed borrower rate is higher than the SAP rate, these student loans earn at a fixed rate while the interest on the variable rate debt typically continues to reflect the low and/or declining interest rates.
In these interest rate environments, the Company may earn additional spread income that it refers to as floor income.
5 unchanged sentences
As of December 31, 2024, 2023, and 2022, the Company had $ 0.4 billion, $ 0.3 billion, and $ 0.9 billion, respectively, of FFELP student loan assets that were earning fixed rate floor income.
−Removed: The decrease in loans earning fixed rate floor income was due to an increase in interest rates.
−Removed: The following table summarizes the outstanding derivative instruments used by the Company to economically hedge loans earning fixed rate floor income.
−Removed: As of December 31, 2023 As of December 31, 2022 (a)
−Removed: Maturity Notional amount Weighted average fixed rate paid by the Company (b) Notional amount Weighted average fixed rate paid by the Company (b)
−Removed: 2024 $ — — % $ 2,000,000 0.35 %
+Added: The following table summarizes the outstanding derivative instruments used by the Company as of December 31, 2024 and 2023 to economically hedge loans earning fixed rate floor income.
+Added: Maturity Notional amount Weighted average fixed rate paid by the Company (a)
2026 $ 200,000 3.92 %
2028 50,000 3.56
+Added: 2029 (b) 50,000 3.17
2030 (c) 100,000 3.63
−Removed: 2030 (d) 100,000 3.63 — —
$ 400,000 3.71 %
−Removed: 2032 — — 200,000 2.92
−Removed: $ 400,000 3.71 % $ 2,800,000 0.70 %
−Removed: (a) On March 15, 2023, to minimize the Company's exposure to market volatility and increase liquidity, the Company terminated its entire derivative portfolio hedging loans earning fixed rate floor income ($ 2.8 billion in notional amount of derivatives) prior to their maturity.
−Removed: Through March 15, 2023, the Company had received cash or had a receivable from the clearinghouse related to variation margin equal to the fair value of the $ 2.8 billion notional amount of fixed rate floor derivatives as of March 15, 2023 of $ 183.2 million, which included $ 19.1 million related to current period settlements.
−Removed: In 2022, the Company terminated $ 2.4 billion in notional amount of derivatives prior to their maturity for net proceeds of $ 91.8 million.
−Removed: (b) For all interest rate derivatives, the Company receives payments based on SOFR, the majority of which reset quarterly.
−Removed: (c) This $ 50 million notional amount derivative has a forward effective start date in January 2026.
−Removed: (d) A $ 50 million notional amount derivative maturing in 2030 has a forward effective start date in November 2025.
+Added: (a) For all interest rate derivatives, the Company receives payments based on SOFR, the majority of which reset quarterly.
+Added: (b) This $ 50 million notional amount derivative has a forward effective start date in January 2026.
+Added: (c) A $ 50 million notional amount derivative maturing in 2030 has a forward effective start date in November 2025.
+Added: During the first quarter of 2023, the Company received cash proceeds of $ 183.2 million, which included $ 19.1 million related to 2023 settlements, to terminate $ 2.8 billion in notional amount of floor income interest rate swaps prior to their final maturity.
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
Nelnet Bank Derivatives
3 unchanged sentences
however, because these derivatives are hedging intercompany deposits, the derivative instruments are not eligible for hedge accounting in the consolidated financial statements.
−Removed: As a result, the change in market value of these derivative instruments is reported in current
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: period earnings and presented in "derivative market value adjustments and derivative settlements, net" included in the consolidated statements of income.
+Added: As a result, the change in market value of these derivative instruments is reported in current period earnings and presented in "derivative market value adjustments and derivative settlements, net" included in the consolidated statements of income.
The following table summarizes the outstanding derivative instruments used by Nelnet Bank to hedge exposure to variability in cash flows related to variable rate intercompany deposits.
−Removed: As of December 31, 2023
−Removed: Maturity Notional amount Weighted average fixed rate paid by the Company (a)
+Added: As of December 31, 2024 As of December 31, 2023
+Added: Maturity Notional amount Weighted average fixed rate paid by the Company (a) Notional amount Weighted average fixed rate paid by the Company (a)
2028 $ 40,000 3.33 % $ 40,000 3.33 %
+Added: 2029 25,000 3.37 — —
2030 (b) 50,000 3.06 50,000 3.06
2 unchanged sentences
$ 165,000 3.44 % $ 140,000 3.46 %
−Removed: (a) For all interest rate derivatives, the Company receives payments based on SOFR that reset monthly or quarterly.
+Added: (a) For all interest rate derivatives, the Company receives monthly or quarterly payments based on SOFR that resets daily.
(b) These $ 25 million notional amount derivatives have forward effective start dates in April 2026 and May 2026, respectively.
1 unchanged sentence
(d) This $ 25 million notional amount derivative has a forward effective start date in November 2025.
+Added: Consolidated Financial Statement Impact Related to Derivatives
+Added: Balance Sheets
Unlike the Company's Non-Nelnet Bank derivatives, Nelnet Bank's derivatives are not cleared post-execution at a regulated clearinghouse.
−Removed: As such, the Company records these derivative instruments in the consolidated balance sheets on a gross basis as either an asset or liability measured at fair value.
−Removed: As of December 31, 2023, the gross fair value of Nelnet Bank's interest rate swap derivatives in an asset position was $ 0.5 million and in a liability position was $ 2.0 million.
−Removed: These amounts are included in “other assets” and “other liabilities,” respectively, on the consolidated balance sheet.
−Removed: Consolidated Financial Statement Impact Related to Derivatives - Statements of Income
+Added: As such, the Company records these derivative instruments in the consolidated balance sheets on a gross basis as either an asset (included in "other assets") or liability (included in "other liabilities") measured at fair value.
+Added: The following table summarizes the fair value of the Company's Nelnet Bank derivatives as reflected in the consolidated balance sheets.
+Added: As of December 31,
+Added: 2024 2023 2024 2023
+Added: Fair value of asset derivatives Fair value of liability derivatives
+Added: Interest rate swaps - Nelnet Bank $ 3,232 452 53 1,976
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
+Added: Statements of Income
The following table summarizes the components of "derivative market value adjustments and derivative settlements, net" included in the consolidated statements of income.
4 unchanged sentences
Interest rate swaps - Nelnet Bank 917 484 —
−Removed: Total settlements - income (expense) 25,072 32,943 ( 21,367 )
+Added: Total settlements - income 6,134 25,072 32,943
Change in fair value:
2 unchanged sentences
Interest rate swaps - Nelnet Bank 4,702 ( 1,523 ) —
−Removed: Total change in fair value - (expense) income ( 41,773 ) 231,691 92,813
−Removed: Derivative market value adjustments and derivative settlements, net - (expense) income $ ( 16,701 ) 264,634 71,446
+Added: Total change in fair value - income (expense) 10,124 ( 41,773 ) 231,691
+Added: Derivative market value adjustments and derivative settlements, net - income (expense) $ 16,258 ( 16,701 ) 264,634
Derivative Instruments - Market Risk
7 unchanged sentences
Investments and Notes Receivable
−Removed: A summary of the Company's “restricted investments” and “investments and notes receivable” follows:
+Added: A summary of the Company's “total investments and notes receivable” follows:
As of December 31, 2024 As of December 31, 2023
Amortized cost Gross unrealized gains Gross unrealized losses Fair value Amortized cost Gross unrealized gains Gross unrealized losses Fair value
−Removed: Restricted investments (at fair value):
−Removed: FFELP loan asset-backed securities $ 16,993 1,069 ( 93 ) 17,969 — — — —
Investments (at fair value):
2 unchanged sentences
FFELP loan $ 188,386 5,804 ( 896 ) 193,294 271,479 4,883 ( 5,393 ) 270,969
−Removed: Private education loan (a) 281,791 — ( 28,874 ) 252,917 335,903 — ( 29,438 ) 306,465
+Added: FFELP loan and other debt securities - restricted (a) 98,914 3,151 ( 78 ) 101,987 16,993 1,069 ( 93 ) 17,969
+Added: Private education loan (b) 237,288 — ( 18,118 ) 219,170 281,791 — ( 28,874 ) 252,917
Other debt securities 32,552 2,500 — 35,052 41,693 2,020 ( 1,275 ) 42,438
Total Non-Nelnet Bank 557,140 11,455 ( 19,092 ) 549,503 611,956 7,972 ( 35,635 ) 584,293
−Removed: FFELP loan (b) 321,638 4,508 ( 2,296 ) 323,850 349,855 955 ( 8,853 ) 341,957
+Added: FFELP loan (c) 231,543 6,060 ( 270 ) 237,333 304,555 4,488 ( 2,286 ) 306,757
+Added: Private education loan 1,596 — — 1,596 17,083 20 ( 10 ) 17,093
Other debt securities 296,944 1,775 ( 1,325 ) 297,394 49,284 117 ( 1,641 ) 47,760
6 unchanged sentences
Non-Nelnet Bank:
−Removed: Debt securities (c) 4,700 18,554
−Removed: FFELP loan asset-backed securities (b) 158,038 —
−Removed: Other debt securities — 220
+Added: Debt securities — 4,700
+Added: FFELP loan asset-backed securities (c) 203,439 149,938
+Added: Private education loan asset-backed securities 7,335 8,100
Total Nelnet Bank 210,774 158,038
Total held-to-maturity investments 210,774 162,738
−Removed: Venture capital and funds:
+Added: Venture capital, funds, and other:
Measurement alternative (d) 200,782 194,084
7 unchanged sentences
Beneficial interest in loan securitizations (g):
−Removed: Consumer loans 134,113 39,249
−Removed: Private education loans 68,372 75,261
+Added: Consumer loans, net of allowance for credit losses of $ 38,590 as of December 31, 2024
+Added: 142,764 134,113
+Added: Private education loans, net of allowance for credit losses of $ 901 as of December 31, 2024
+Added: 52,824 68,372
Federally insured student loans 18,221 22,594
−Removed: Total beneficial interest in loan securitizations 225,079 138,738
+Added: Total beneficial interest in loan securitizations, net of allowance 213,809 225,079
Solar (h) ( 155,048 ) ( 146,040 )
1 unchanged sentence
Tax liens, affordable housing, and other 10,184 7,243
−Removed: Total investments (not measured at fair value) 882,127 683,798
+Added: Total other investments and notes receivable (not measured at fair value) 1,040,376 857,866
Total investments and notes receivable $ 2,200,696 $ 1,864,676
2 unchanged sentences
(Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: (a) In December 2020, Wells Fargo announced the sale of its approximately $ 10 billion portfolio of private education loans.
+Added: (a) Represent investments held in third-party trusts as collateral for the Company’s reinsurance business.
+Added: (b) In December 2020, Wells Fargo announced the sale of its approximately $ 10 billion portfolio of private education loans.
The Company entered into a joint venture with other investors to acquire the loans.
2 unchanged sentences
The bonds purchased to satisfy the risk retention requirement are included in the above table and as of December 31, 2024, the par value and fair value of these securities was $ 237.3 million and $ 219.2 million, respectively.
−Removed: The Company must retain these investment securities until the latest of (i) two years from the closing date of the securitization, (ii) the date the aggregate outstanding principal balance of the loans in the securitization is 33 % or less of the initial loan balance, and (iii) the date the aggregate outstanding principal balance of the bonds is 33 % or less of the aggregate initial outstanding principal balance of the bonds, at which time the Company can sell its investment securities (bonds) to a third party.
−Removed: A portion of the private education loan asset-backed securities were subject to a repurchase agreement with third parties, as discussed in note 4 under “Repurchase Agreements.” As of December 31, 2023, the par value and fair value of securities subject to the participation was $ 155.9 million and $ 134.1 million, respectively.
−Removed: (b) On March 31, 2023, securities at Nelnet Bank with a fair value of $ 149.2 million were transferred from available-for-sale to held to maturity.
+Added: The Company must retain these investment securities until the latest of (i) the date the aggregate outstanding principal balance of the loans in the securitization is 33 % or less of the initial loan balance, and (ii) the date the aggregate outstanding principal balance of the bonds is 33 % or less of the aggregate initial outstanding principal balance of the bonds, at which time the Company can sell its investment securities (bonds) to a third party.
+Added: (c) On May 22, 2024, securities at Nelnet Bank with a fair value of $ 70.6 million were transferred from available-for-sale to held-to-maturity.
The securities were reclassified at fair value at the time of the transfer, and such transfer represented a non-cash transaction.
−Removed: Accumulated other comprehensive income as of March 31, 2023 included pre-tax unrealized losses of $ 3.7 million related to the transfer.
−Removed: These unrealized losses are being amortized, consistent with the amortization of any discounts on such securities, over the remaining lives of the respective securities as an adjustment of yield.
−Removed: (c) On March 31, 2023, certain Non-Nelnet Bank debt securities were transferred from held to maturity to available-for-sale.
+Added: Accumulated other comprehensive income as of May 22, 2024 included pre-tax unrealized gains of $ 3.4 million related to the transfer.
+Added: These unrealized gains are being amortized, consistent with the amortization of any premiums on such securities, over the remaining lives of the respective securities as an adjustment of yield.
(d) The Company has an investment in Agile Sports Technologies, Inc.
−Removed: (doing business as “Hudl”) that is included in “venture capital and funds” in the above table.
−Removed: During the first quarter of 2023, the Company acquired additional ownership interests in Hudl for $ 31.5 million from existing Hudl investors.
+Added: (doing business as “Hudl”).
+Added: During the fourth quarter of 2024, the Company acquired additional ownership interests in Hudl for $ 3.3 million from existing Hudl investors.
This transaction was not considered an observable market transaction (not orderly) because it was not subject to customary marketing activities.
4 unchanged sentences
Accordingly, for accounting purposes, the Company's equity ownership interests are not considered in-substance common stock and the Company is accounting for its equity investment in Hudl using the measurement alternative method.
−Removed: (e) During the first quarter of 2023, the Company contributed $ 8.4 million of additional equity in ALLO.
−Removed: As a result of this equity contribution, the Company's voting membership interests percentage in ALLO did not materially change.
−Removed: The Company recognized losses under the HLBV method of accounting on its ALLO voting membership interests investment of $ 65.3 million, $ 68.0 million, and $ 42.1 million during the years ended December 31, 2023, 2022, and 2021, respectively.
+Added: (e) The Company recognized losses under the HLBV method of accounting on its ALLO voting membership interests investment of $ 10.7 million, $ 65.3 million, and $ 68.0 million during the years ended December 31, 2024, 2023, and 2022, respectively.
Losses from the Company's investment in ALLO are included in "other, net" in "other income (expense)" on the consolidated statements of income.
+Added: Absent additional equity contributions with respect to ALLO's voting membership interests, the Company will not recognize additional losses for its voting membership interests in ALLO.
(f) As of December 31, 2024, the outstanding preferred membership interests of ALLO held by the Company was $ 225.6 million.
−Removed: Accrued and unpaid preferred return capitalizes to preferred membership interests annually on each December 31.
−Removed: The preferred membership interests of ALLO held by the Company currently earn a preferred annual return of 6.25 % that will increase to 10.00 % in April 2024.
+Added: The Company earns a preferred return on these interests.
+Added: The accrued preferred return capitalizes to preferred membership interests annually on each December 31.
+Added: The Company historically earned a preferred annual return of 6.25 % that increased to 10.00 % on April 1, 2024 for $ 155.0 million of preferred membership interests of ALLO held by the Company.
+Added: On December 31, 2024, $ 14.1 million of accrued preferred return was capitalized to preferred membership interests.
+Added: The preferred annual return on the updated balance of $ 169.1 million preferred membership interests increased to 13.50 % on January 1, 2025.
+Added: During 2024, the Company purchased an additional $ 53.1 million of preferred membership interests of ALLO, which earn a preferred annual return of 20.00 %.
+Added: Including the accrued preferred return of $ 3.4 million that was capitalized on December 31, 2024, the updated balance of preferred membership interests that earns at 20.00 % was $ 56.5 million as of December 31, 2024.
The Company recognized income on its ALLO preferred membership interests of $ 17.5 million, $ 9.1 million, and $ 8.6 million during the years ended December 31, 2024, 2023, and 2022, respectively.
This income is included in "other, net" in "other income (expense)" on the consolidated statements of income.
−Removed: (g) The Company has partial ownership in certain consumer, private education, and federally insured student loan securitizations.
−Removed: As of the latest remittance reports filed by the various trusts prior to or as of December 31, 2023, the Company's ownership correlates to approximately $ 910 million, $ 515 million, and $ 335 million of consumer, private education, and federally insured student loans, respectively, included in these securitizations.
−Removed: (h) The solar investment balance as of December 31, 2023 represents the sum of total tax credits earned on solar projects placed-in-service through December 31, 2023 and the calculated HLBV net losses being larger than the total investment contributions made by the Company on such projects.
+Added: (g) The Company has partial ownership in certain consumer, private education, and federally insured student loan securitizations, which are accounted for as held-to-maturity beneficial interest investments.
+Added: As of the latest remittance reports filed by the various trusts prior to or as of December 31, 2024, the Company's ownership correlates to approximately $ 1.19 billion, $ 465 million, and $ 315 million of consumer, private education, and federally insured student loans, respectively, included in these securitizations.
+Added: During 2024, an increase in cumulative loss expectations on certain securitizations and loan vintages caused a change in estimate of future cash flows related to certain of the Company's beneficial interest securitization investments.
+Added: As a result, the Company recorded a $ 39.5 million allowance for credit losses (and related provision expense) related to these investments.
AND SUBSIDIARIES
1 unchanged sentence
(Dollars in thousands, except share amounts, unless otherwise noted)
+Added: (h) The Company invests in solar tax equity investments.
+Added: Due to the management and control of each of these investment partnerships, such partnerships that invest in solar tax equity investments are consolidated on the Company’s consolidated financial statements, with the co-investor’s (syndication partner's) portion being presented as noncontrolling interests.
+Added: As of December 31, 2024, the Company has invested a total of $ 314.8 million and its third-party investors have invested $ 271.4 million in tax equity investments that remain outstanding in renewable energy solar partnerships that support the development and operations of solar projects throughout the country.
+Added: The carrying value of the Company’s investment in a solar project is reduced by tax credits earned when the solar project is placed in service.
+Added: As of December 31, 2024, the Company has earned $ 585.9 million of tax credits on those projects that remain outstanding, which includes $ 260.9 million earned by syndication partners.
+Added: The solar investment negative carrying value on the consolidated balance sheet of $ 155.0 million as of December 31, 2024 represents the sum of total tax credits earned on solar projects placed in service through December 31, 2024 and the calculated HLBV cumulative net losses being larger than the total investment contributions made by the Company and its syndication partners on such projects.
+Added: The solar investment negative carrying value as of December 31, 2024, excluding the portion owned by syndication partners that is reflected as "noncontrolling interests" on the consolidated balance sheet, was $ 87.9 million.
+Added: The Company accounts for its solar investments using the HLBV method of accounting.
+Added: For the majority of the Company’s solar investments, the HLBV method of accounting results in accelerated losses in the initial years of investment.
+Added: The following table presents (i) the Company's recognized net losses, which include net losses attributable to third-party noncontrolling interest investors (syndication partners), included in “other, net” in "other income (expense)" on the consolidated statements of income, (ii) solar net losses attributed to noncontrolling interest investors included in “net loss attributable to noncontrolling interests” on the consolidated statements of income, and (iii) the Company's recognized net losses excluding net losses attributed to noncontrolling interest investors (such amount reflecting the before tax net income impact of such solar tax equity investments to the Company).
+Added: Year ended December 31,
+Added: 2024 2023 2022
+Added: Net losses $ ( 6,477 ) ( 59,645 ) ( 16,708 )
+Added: net losses attributed to noncontrolling interest investors (syndication partners) 4,599 37,875 17,680
+Added: Net (losses) gains, excluding activity attributed to noncontrolling interest investors $ ( 1,878 ) ( 21,770 ) 972
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
The following table presents, by remaining contractual maturity, the amortized cost and fair value of debt securities as of December 31, 2024:
2 unchanged sentences
Available-for-sale asset-backed securities
−Removed: Restricted Investments:
−Removed: FFELP loan $ — — — 16,993 16,993
−Removed: Fair value — — — 17,969 17,969
Non-Nelnet Bank:
FFELP loan $ — 13,743 5,332 169,311 188,386
+Added: FFELP loan and other debt securities - restricted — 10,253 17,863 70,798 98,914
Private education loan — — — 237,288 237,288
3 unchanged sentences
FFELP loan 47,419 22,157 27,490 134,477 231,543
+Added: Private education loan — — — 1,596 1,596
Other debt securities — 40,361 58,826 197,757 296,944
4 unchanged sentences
Held-to-maturity investments
−Removed: Non-Nelnet Bank:
−Removed: Debt securities $ 4,700 — — — 4,700
−Removed: Fair value 4,700 — — — 4,700
FFELP loan asset-backed securities $ — 2,759 1,136 199,544 203,439
−Removed: Other debt securities — — — — —
−Removed: Total Nelnet Bank — 3,452 1,524 153,062 158,038
−Removed: Fair value — 3,506 1,539 153,877 158,922
+Added: Private education loan asset-backed securities — — — 7,335 7,335
Total held-to-maturity investments at amortized cost $ — 2,759 1,136 206,879 210,774
Total held-to-maturity investments at fair value $ — 2,827 1,160 212,177 216,164
+Added: Beneficial interest in loan securitizations (a):
+Added: Amortized cost $ — — — — 213,809
+Added: Fair value $ — — — — 229,510
+Added: (a) The Company's beneficial interest in loan securitizations is not due at a single maturity date.
+Added: The following table summarizes the unrealized positions for held-to-maturity asset-backed securities investments and the beneficial interest in loan securitizations as of December 31, 2024:
+Added: Carrying value Gross unrealized gains Gross unrealized losses Fair value
+Added: Asset-backed and other securities $ 210,774 5,432 ( 42 ) 216,164
+Added: Beneficial interest in loan securitizations 213,809 17,004 ( 1,303 ) 229,510
AND SUBSIDIARIES
1 unchanged sentence
(Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: The following table presents securities classified as available-for-sale that have gross unrealized losses at December 31, 2023 and the fair value of such securities as of December 31, 2023.
+Added: The following table presents securities classified as available-for-sale that have gross unrealized losses on December 31, 2024 and the fair value of such securities as of December 31, 2024.
These securities are segregated between investments that had been in a continuous unrealized loss position for less than twelve months and twelve months or more, based on the point in time that the fair value declined below the amortized cost basis.
5 unchanged sentences
Available-for-sale asset-backed securities
−Removed: Restricted Investments:
−Removed: FFELP loan $ ( 93 ) 2,392 — — ( 93 ) 2,392
Non-Nelnet Bank:
FFELP loan $ ( 2 ) 4,065 ( 894 ) 60,500 ( 896 ) 64,565
+Added: FFELP loan and other debt securities - restricted ( 24 ) 7,843 ( 54 ) 2,463 ( 78 ) 10,306
Private education loan — — ( 18,118 ) 219,170 ( 18,118 ) 219,170
−Removed: Other debt securities — — ( 1,275 ) 20,144 ( 1,275 ) 20,144
Total Non-Nelnet Bank ( 26 ) 11,908 ( 19,066 ) 282,133 ( 19,092 ) 294,041
9 unchanged sentences
Gross realized losses ( 1,241 ) ( 8,021 ) ( 800 )
−Removed: Net (losses) gains $ ( 3,504 ) 5,902 2,695
+Added: Net gains (losses) $ 4,534 ( 3,504 ) 5,902
Business Combinations
27 unchanged sentences
On July 1, 2022, the Company acquired 80 % of the ownership interests of two subsidiaries of GRNE Solutions, LLC named GRNE-Nelnet, LLC (GRNE) and ENRG-Nelnet, LLC (ENRG) (collectively referred to as "GRNE Solar") for total cash consideration of $ 28.9 million.
−Removed: GRNE designs and installs residential and commercial solar systems in the Midwest.
−Removed: ENRG owns certain assets that generate and sell solar energy.
+Added: GRNE designed and installed residential and commercial solar systems in the Midwest.
+Added: ENRG owned certain assets that generated and sold solar energy.
The acquisition diversifies the Company's position in the renewable energy space to include solar construction.
−Removed: For segment reporting, the operating results of GRNE Solar are included in Corporate and Other Activities.
+Added: For segment reporting, the operating results of GRNE Solar (now referred to as Nelnet Renewable Energy) are included in Corporate and Other Activities.
As part of the acquisition, the Company agreed to pay $ 5.0 million in future capital contributions on behalf of the minority interest members.
2 unchanged sentences
The future capital contribution commitment had been fully satisfied as of December 31, 2023.
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
The following table summarizes the estimated fair values of the assets acquired and liabilities assumed at the acquisition date.
11 unchanged sentences
Total consideration paid by the Company $ 28,898
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
The $ 11.7 million of acquired intangible assets on the date of acquisition had a weighted-average useful life of approximately 8 years.
3 unchanged sentences
The pro forma impacts of the GRNE Solar acquisition on the Company's historical results prior to the acquisition were not material.
+Added: In June 2024, the Company acquired the remaining 20 % of GRNE Solar for $ 0.3 million.
Intangible Assets
7 unchanged sentences
Trade names (net of accumulated amortization of $ 205 and $ 8,268 , respectively)
−Removed: 100 642 8,293
Computer software (net of accumulated amortization of $ 917 and $ 574 , respectively)
−Removed: 40 1,146 1,520
−Removed: Other (net of accumulated amortization of $ 490 )
Total amortizable intangible assets, net 95 $ 36,328 44,819
3 unchanged sentences
2030 and thereafter 9,141
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
The change in the carrying amount of goodwill by reportable operating segment was as follows:
1 unchanged sentence
Loan Servicing and Systems Education Technology Services and Payments Asset Generation and Management (a) Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Total
−Removed: Balance as of December 31, 2021 $ 23,639 76,570 41,883 — — — 142,092
−Removed: Goodwill acquired — 15,937 — — — 18,873 34,810
−Removed: Balance as of December 31, 2022 23,639 92,507 41,883 — — 18,873 176,902
+Added: Goodwill as of December 31, 2022 $ 23,639 92,507 41,883 — — 18,873 176,902
Impairment (see note 11) — — — — — ( 18,873 ) ( 18,873 )
−Removed: Balance as of December 31, 2023 $ 23,639 92,507 41,883 — — — 158,029
+Added: Goodwill as of December 31, 2023 and 2024 $ 23,639 92,507 41,883 — — — 158,029
(a) As a result of the Reconciliation Act of 2010, the Company no longer originates new FFELP loans, and net interest income from the Company's existing FFELP loan portfolio will decline over time as the Company's portfolio pays down.
−Removed: As a result, as this revenue stream winds down, goodwill impairment will be triggered for the Asset Generation and Management reporting unit due to the passage of time and depletion of projected cash flows stemming from its FFELP student loan portfolio.
+Added: As a result, as this revenue stream winds down, goodwill impairment will be triggered for the FFELP Portfolio reporting unit (included in the AGM operating segment) due to the passage of time and depletion of projected cash flows stemming from its FFELP student loan portfolio.
Management believes the elimination of FFELP loan originations will not have an adverse impact on the fair value of the Company's other reporting units.
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
Property and Equipment
9 unchanged sentences
Solar facilities 5 - 35 years
+Added: 10,398 12,850
Transportation equipment 5 - 10 years
9 unchanged sentences
(Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: Impairment Expense
−Removed: The following table presents the impairment charges by asset and reportable operating segment recognized by the Company during 2023, 2022, and 2021.
−Removed: The Company’s impairment charges are included in “impairment expense” in the consolidated statements of income.
+Added: Impairment Expense, Provision for Beneficial Interests, and Restructure Charges
+Added: Impairment Expense and Provision for Beneficial Interests
+Added: The following table presents the impairment charges and provision for beneficial interests by asset and reportable operating segment recognized by the Company during 2024, 2023, and 2022.
+Added: These expense items are included in “impairment expense and provision for beneficial interests” in the consolidated statements of income.
Nelnet Financial Services
3 unchanged sentences
Year ended December 31, 2024
−Removed: Goodwill (a) $ — — — — — 18,873 18,873
−Removed: Leases, buildings, and associated improvements (b) 296 — — — — 4,678 4,974
−Removed: Property and equipment - internally developed software — 4,310 — — — — 4,310
−Removed: Investments - venture capital and funds (c) — — — — — 2,060 2,060
−Removed: Intangible assets (a) — — — — — 1,708 1,708
+Added: Investments - beneficial interest in loan securitizations (a) $ — — 39,491 — — — 39,491
+Added: Property and equipment - solar facilities (b) — — — — — 1,170 1,170
+Added: Leases, buildings, and associated improvements (c) 736 — — — — — 736
+Added: Other assets - solar inventory (b) — — — — — 695 695
+Added: Investments - venture capital and funds (d) — — — — — 537 537
$ 736 — 39,491 — — 2,402 42,629
Year ended December 31, 2023
−Removed: Leases, buildings, and associated improvements (b) $ 1,774 — — — — 998 2,772
+Added: Leases, buildings, and associated improvements (c) $ 296 — — — — 4,678 4,974
+Added: Investments - venture capital and funds (d) — — — — — 2,060 2,060
+Added: Goodwill (e) — — — — — 18,873 18,873
Property and equipment - internally developed software — 4,310 — — — — 4,310
−Removed: Investments - venture capital and funds (c) — — — — — 6,561 6,561
−Removed: Intangible asset — 2,239 — — — — 2,239
+Added: Intangible assets (e) — — — — — 1,708 1,708
$ 296 4,310 — — — 27,319 31,925
Year ended December 31, 2022
−Removed: Leases, buildings, and associated improvements (b) $ 13,243 — — — — 916 14,159
−Removed: Investments - venture capital and funds (c) — — — — — 4,637 4,637
−Removed: Beneficial interest in loan securitizations — — ( 2,436 ) — — — ( 2,436 )
+Added: Leases, buildings, and associated improvements (c) $ 1,774 — — — — 998 2,772
+Added: Investments - venture capital and funds (d) — — — — — 6,561 6,561
+Added: Property and equipment - internally developed software 3,737 — — 214 — — 3,951
+Added: Intangible asset — 2,239 — — — — 2,239
$ 5,511 2,239 — 214 — 7,559 15,523
−Removed: (a) As part of the November 2023 annual goodwill impairment assessment completed in conjunction with the Company’s annual November budget process, the Company determined it was more likely than not that the estimated fair value of the GRNE operating segment was less than its carrying amount.
−Removed: As part of the qualitative assessment, the Company used the discounted cash flow method under the income approach to estimate the fair value of the reporting unit, which concluded that the estimated fair value was less than its carrying amount.
−Removed: As a result, the Company recorded a non-cash impairment charge in the fourth quarter of 2023.
−Removed: No remaining goodwill is attributable to the GRNE operating segment.
−Removed: The Company also recorded a non-cash impairment charge for GRNE operating segment’s remaining intangible assets.
−Removed: (b) The Company continues to evaluate the use of office space as a large number of employees continue to work from home.
+Added: (a) The Company recorded a non-cash allowance for credit losses (and related provision expense) related to the Company's beneficial interest in certain loan securitizations.
+Added: See note 6 for additional information.
+Added: (b) In April 2024, the Company announced a change in its solar engineering, procurement, and construction (EPC) operations to focus exclusively on the commercial solar market and will discontinue its residential solar operations.
+Added: As a result, the Company recognized non-cash impairment charges on certain solar facilities and inventory related to the residential solar operations.
+Added: (c) The Company continues to evaluate the use of office space as it modifies its hybrid work model for associates.
As a result, the Company recorded non-cash impairment charges related to operating lease assets and associated leasehold improvements and to building and building improvements.
The Corporate and Other Activities amount for the year ended December 31, 2023 includes a $ 2.4 million lease termination fee paid to Union Bank, a related party.
−Removed: (c) The Company recorded non-cash impairment charges related to several of its venture capital investments accounted for under the measurement alternative method.
+Added: (d) The Company recorded non-cash impairment charges related to several of its venture capital investments accounted for under the measurement alternative method.
AND SUBSIDIARIES
1 unchanged sentence
(Dollars in thousands, except share amounts, unless otherwise noted)
+Added: (e) As part of the November 2023 annual goodwill impairment assessment completed in conjunction with the Company’s annual November budget process, the Company determined it was more likely than not that the estimated fair value of the GRNE operating segment was less than its carrying amount.
+Added: As part of the quantitative assessment, the Company used the discounted cash flow method under the income approach to estimate the fair value of the reporting unit, which concluded that the estimated fair value was less than its carrying amount.
+Added: As a result, the Company recorded a non-cash impairment charge in the fourth quarter of 2023.
+Added: No remaining goodwill is attributable to the GRNE operating segment.
+Added: The Company also recorded a non-cash impairment charge for GRNE operating segment’s remaining intangible assets.
+Added: Restructure Charges
+Added: In April 2024, the Company announced a change in its solar EPC operations to focus exclusively on the commercial solar market and will discontinue its residential solar operations.
+Added: The restructuring plan included a reduction in headcount of approximately 40 associates.
+Added: The Company incurred a restructure charge of $ 1.6 million related to these staff reductions and commissions paid for canceled contracts, which is included in "salaries and benefits" in the consolidated statements of income .
+Added: Loan Servicing and Systems (LSS)
+Added: In June 2024, the Company announced a reduction in headcount after the completion of the transfer of direct loan servicing volume to one platform and the required servicing platform enhancements for the Company's new student loan servicing contract with the Department of Education.
+Added: Approximately 220 associates who work in LSS, including some in related shared services that support LSS, were notified their positions were being eliminated.
+Added: The Company incurred a charge of $ 7.1 million related to these staff reductions, which is included in "salaries and benefits" in the consolidated statements of income.
+Added: The charge was recognized over the service period through December 31, 2024.
+Added: In March 2023, the Company announced a reduction in staff due to the Department’s March 2023 announcement to reduce the monthly fee earned by the Company under its legacy Department student loan servicing contract and the notification by the Department in February 2023 of its intention to transfer up to one million of the Company’s existing Department servicing borrowers to another servicer.
+Added: Approximately 550 associates who work in LSS, including some in related shared services that support LSS, were notified their positions were being eliminated.
+Added: The Company incurred a charge of $ 4.3 million related to the staff reductions, which is included in "salaries and benefits" in the consolidated statements of income.
+Added: The charge was primarily recognized in the first and second quarters of 2023.
+Added: As a result of the decommissioning of the Great Lakes’ platform in the fourth quarter of 2023, the Company incurred a charge of $ 3.5 million related to staff reductions, including some in related shared services that support LSS, which is included in "salaries and benefits" in the consolidated statements of income, that was recognized in the fourth quarter of 2023.
Bank Deposits
The following table summarizes Nelnet Bank’s interest-bearing deposits, excluding intercompany deposits.
−Removed: As of December 31, 2023 and December 31, 2022, Nelnet Bank had intercompany deposits from Nelnet, Inc.
+Added: As of December 31, 2024 and 2023, Nelnet Bank had intercompany deposits from Nelnet, Inc.
and its subsidiaries totaling $ 68.5 million and $ 104.0 million, respectively, including a $ 40.0 million pledged deposit from Nelnet, Inc.
2 unchanged sentences
As of December 31,
+Added: Retail and other savings $ 916,475 520,017
Brokered CDs, net of brokered deposit fees 247,872 203,522
−Removed: Commercial 2,057 —
−Removed: Retail and other savings (529, STFIT, and HSA) 517,960 410,556
−Removed: Retail and other CDs (commercial and institutional) 20,060 25,949
+Added: Retail and other CDs, net of issuance fees 21,784 20,060
Total interest-bearing deposits $ 1,186,131 743,599
Brokered deposit fees associated with the brokered CDs are amortized into interest expense using the effective interest rate method.
−Removed: The Bank recognized brokered deposit fee expense of $ 0.2 million, $ 0.3 million, and $ 0.1 million during the years ended December 31, 2023, 2022, and 2021, respectively.
−Removed: Fees paid to third-party brokers related to these CDs were $ 0.6 million and $ 0.4 million during the years ended December 31, 2022 and 2021, respectively.
−Removed: There were no fees paid to third-party brokers for the year ended December 31, 2023.
+Added: The Bank recognized deposit issuance fee expense, which includes brokered deposit fees, of $ 0.3 million, $ 0.2 million, and $ 0.3 million during the years ended December 31, 2024, 2023, and 2022, respectively.
+Added: Fees paid to third parties related to these deposits were $ 0.4 million and $ 0.6 million during the years ended December 31, 2024 and 2022, respectively.
+Added: There were no fees paid to third parties for the year ended December 31, 2023.
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
The following table presents certificates of deposit remaining maturities as of December 31, 2024:
6 unchanged sentences
Total $ 269,656
−Removed: The Educational 529 College Savings, STFIT, and Health Savings plan deposits are large interest-bearing omnibus accounts structured to allow FDIC insurance to flow through to underlying individual depositors.
−Removed: Except for the commercial deposit, the pledged deposit from Nelnet, Inc., and an earmarked deposit required for intercompany transactions, there were no deposits exceeding the FDIC insurance limits as of December 31, 2023 and 2022.
−Removed: Accrued interest on deposits was $ 0.7 million as of each December 31, 2023 and 2022, respectively, which is included in “accrued interest payable” on the consolidated balance sheets.
+Added: Retail and other savings deposits include deposits from Educational 529 College Savings and Health Savings plans, Short Term Federal Investment Trust (STFIT), and FDIC sweep deposits.
+Added: These deposits are large interest-bearing omnibus accounts structured to allow FDIC insurance to flow through to underlying individual depositors.
+Added: The deposits exceeding the FDIC insurance limits as of December 31, 2024 and 2023 were $ 44.3 million and $ 44.2 million, respectively, the majority of which are intercompany deposits from Nelnet, Inc.
+Added: and its subsidiaries.
+Added: Accrued interest on deposits was $ 1.3 million and $ 0.7 million as of December 31, 2024 and 2023, respectively, which is included in “accrued interest payable” on the consolidated balance sheets.
Shareholders’ Equity
9 unchanged sentences
In accordance with the corporate laws of the state in which the Company is incorporated, all shares repurchased by the Company are legally retired upon acquisition by the Company.
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
Total shares repurchased Purchase price
3 unchanged sentences
Year ended December 31, 2022 1,162,533 97,685 84.03
−Removed: (a) The average price of shares repurchased for the year ended December 31, 2023 includes excise taxes.
+Added: (a) The average price of shares repurchased for the years ended December 31, 2024 and 2023 includes excise taxes.
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
Earnings per Common Share
37 unchanged sentences
As of December 31, 2024 and 2023, $ 5.6 million and $ 4.8 million in accrued interest and penalties, respectively, were included in “other liabilities” on the consolidated balance sheets.
−Removed: The Company recognized interest expense of $ 0.8 million, and interest benefits of $ 1.1 million and $ 0.3 million related to uncertain tax positions for the years ended December 31, 2023, 2022, and 2021, respectively.
+Added: The Company recognized interest expense of $ 0.9 million and $ 0.8 million, and interest benefits of $ 1.1 million related to uncertain tax positions for the years ended December 31, 2024, 2023, and 2022, respectively.
The impact to the consolidated statements of income related to penalties for uncertain tax positions was not significant for the years 2024, 2023, and 2022.
34 unchanged sentences
Deferred tax assets:
−Removed: Deferred revenue $ 17,399 27,410
+Added: Tax credit carryforwards $ 30,252 12,190
Student loans 20,354 16,489
−Removed: State tax credit carryforwards 12,190 9,431
+Added: Deferred revenue 18,322 17,399
Accrued expenses 15,129 9,623
Stock compensation 6,541 6,584
+Added: Intangible assets 4,778 987
Net operating losses 4,556 4,563
Lease liability 2,685 2,929
−Removed: Intangible assets 987 —
−Removed: Debt and equity investments — 1,430
Total gross deferred tax assets 103,045 70,764
3 unchanged sentences
Partnership basis 71,509 71,423
+Added: Debt and equity investments 12,015 4,711
Basis in certain derivative contracts 11,614 26,139
Depreciation 6,229 9,526
−Removed: Debt and equity investments 4,711 —
+Added: Prepaid expenses 5,615 —
Lease right of use asset 2,573 2,770
1 unchanged sentence
Securitization 170 267
−Removed: Intangible assets — 1,474
Other — 3,784
8 unchanged sentences
As of December 31, 2024 and 2023, net deferred tax liabilities of $ 30.4 million and $ 72.9 million, respectively, and net deferred tax assets of $ 21.0 million and $ 21.8 million, respectively, were included in “other liabilities” and “other assets,” respectively, on the consolidated balance sheets.
−Removed: As of December 31, 2023 and 2022, the Company had a current income tax receivable of $ 67.4 million and payable of $ 5.2 million, respectively, that is included in “other assets" and “other liabilities,” respectively, on the consolidated balance sheets.
+Added: As of December 31, 2024 and 2023, the Company had a current income tax receivable of $ 61.8 million and $ 67.4 million, respectively, that is included in “other assets" on the consolidated balance sheets.
AND SUBSIDIARIES
8 unchanged sentences
The Company earns fee-based revenue through its Loan Servicing and Systems and Education Technology Services and Payments operating segments;
−Removed: and earns interest income on its loan portfolio in its Asset Generation and Management and Nelnet Bank operating segments.
+Added: and earns net interest income on its loan portfolio in its Asset Generation and Management and Nelnet Bank operating segments.
The Company’s operating segments are defined by the products and services they offer and the types of customers they serve, and they reflect the manner in which financial information is currently evaluated by management.
1 unchanged sentence
The management reporting process measures the performance of the Company’s operating segments based on the management structure of the Company, as well as the methodology used by management to evaluate performance and allocate resources.
−Removed: Executive management (the "chief operating decision maker") evaluates the performance of the Company’s operating segments based on their financial results prepared in conformity with U.S.
−Removed: In 2023, the Company created the Nelnet Financial Services division intended to focus on the Company’s key objective to maximize the amount and timing of cash flows generated from its FFELP portfolio and reposition itself for the post-FFELP environment by expanding its non-FFELP loan portfolios and its other financial product and service offerings.
−Removed: The creation of the Nelnet Financial Services division resulted in financial results grouped and reported differently to the chief operating decision maker.
−Removed: The reporting change did not impact the performance measures or the methodology used by management to evaluate performance and allocate resources.
−Removed: All prior periods have been restated to conform to the current-period presentation.
−Removed: These reclassifications had no effect on the Company’s consolidated financial statements.
−Removed: The Nelnet Financial Services division includes the reportable segments of AGM and Nelnet Bank and the following other non-reportable operating segments that were previously presented in Corporate and Other Activities.
+Added: The Company’s executive officers (the "chief operating decision maker") evaluate the performance of the Company’s operating segments based on their financial results prepared in conformity with U.S.
+Added: In November 2023, the FASB issued accounting guidance which improves reportable segment disclosure requirements primarily through enhanced disclosures about significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit (referred to as the “significant expense principle”).
+Added: The Company adopted the standard effective for the year ended December 31, 2024 annual financial statements.
+Added: The guidance is applied retrospectively for all prior periods presented in the financial statements.
+Added: There is limited impact to the Company’s financial statement disclosures due to the segment expense detail previously disclosed for each reportable segment.
+Added: The Nelnet Financial Services division includes the reportable segments of AGM and Nelnet Bank and the following other non-reportable operating segments.
+Added: The operating results of the below items are included as a reconciling item from the operating results of the Company’s reportable segments to the consolidated financial statements.
• The operating results of WRCM, the Company's SEC-registered investment advisor subsidiary
−Removed: • The operating results of Nelnet Insurance Services, which primarily includes multiple reinsurance treaties on property and causality policies
+Added: • The operating results of Nelnet Insurance Services, which primarily includes multiple reinsurance treaties on property and casualty policies
• The operating results of the Company’s investment activities in real estate
5 unchanged sentences
The difference between the consolidated income tax expense and the sum of taxes calculated for each operating segment is included in income taxes in Corporate and Other Activities.
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: Corporate and Other Activities
−Removed: Other business activities and operating segments that are not reportable and not part of the NFS division are combined and included in Corporate and Other Activities.
−Removed: Corporate and Other Activities include the following items:
−Removed: • Shared service activities related to internal audit, human resources, accounting, legal, enterprise risk management, information technology, occupancy, and marketing.
−Removed: These costs are allocated to each operating segment based on estimated use of such activities and services
−Removed: • Corporate costs and overhead functions not allocated to operating segments, including executive management, investments in innovation, and other holding company organizational costs
−Removed: • The operating results of Nelnet Renewable Energy, which include solar tax equity investments made by the Company, administrative and management services provided by the Company on tax equity investments made by third parties, and solar construction and development
−Removed: • The operating results of certain of the Company’s investment activities, including its investment in ALLO and early-stage and emerging growth companies (venture capital investments)
−Removed: • Interest income earned on cash balances held at the corporate level and interest expense incurred on unsecured corporate related debt transactions
−Removed: • Other product and service offerings that are not considered reportable operating segments
+Added: Other business activities and operating segments that are not reportable and not part of the NFS division, as described in note 1, are combined and included in Corporate and Other Activities.
Segment Results
4 unchanged sentences
Year ended December 31, 2024
−Removed: Nelnet Financial Services
+Added: Reportable Segments Reconciling Items
Loan Servicing and Systems Education Technology Services and Payments Asset
Generation and
−Removed: Management Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Eliminations Total
+Added: Management Nelnet Bank Total Reportable Segments NFS Other Operating Segments Corporate and Other Activities Eliminations/ Reclassifications Total
+Added: Interest income:
+Added: Loan interest $ — — 749,117 38,381 787,498 — — — 787,498
+Added: Investment interest 4,877 29,891 68,302 45,992 149,062 54,357 11,773 ( 29,291 ) 185,901
Total interest income 4,877 29,891 817,419 84,373 936,560 54,357 11,773 ( 29,291 ) 973,399
4 unchanged sentences
Other income (expense):
−Removed: Loan servicing and systems revenue 517,954 — — — — — — 517,954
+Added: LSS revenue 482,408 — — — 482,408 — — — 482,408
Intersegment revenue 24,493 220 — — 24,713 — — ( 24,713 ) —
−Removed: Education technology services and payments revenue — 463,311 — — — — — 463,311
+Added: ETSP revenue — 486,962 — — 486,962 — — — 486,962
+Added: Reinsurance premiums earned — — — — — 62,923 — — 62,923
Solar construction revenue — — — — — — 56,569 — 56,569
Other, net 2,769 — 15,879 2,951 21,599 8,313 31,613 77 61,602
−Removed: Gain on sale of loans, net — — 39,673 — — — — 39,673
−Removed: Impairment expense ( 296 ) ( 4,310 ) — — — ( 27,319 ) — ( 31,925 )
+Added: Loss on sale of loans, net — — ( 1,643 ) — ( 1,643 ) — — — ( 1,643 )
Derivative settlements, net — — 5,217 917 6,134 — — — 6,134
1 unchanged sentence
Total other income (expense), net 509,670 487,182 24,875 8,570 1,030,297 71,236 88,182 ( 24,636 ) 1,165,079
−Removed: Cost of services:
−Removed: Cost to provide education technology services and payments — 171,183 — — — — — 171,183
−Removed: Cost to provide solar construction services — — — — — 48,576 — 48,576
+Added: Cost of services and expenses:
Total cost of services 1,889 172,763 — — 174,652 — 77,673 — 252,325
−Removed: Operating expenses:
Salaries and benefits 300,366 164,716 4,784 11,122 480,988 1,587 96,148 ( 1,792 ) 576,931
Depreciation and amortization 19,475 10,531 — 1,282 31,288 — 26,828 — 58,116
−Removed: Other expenses 60,517 34,133 14,728 4,994 19,172 56,307 — 189,851
+Added: Reinsurance losses and underwriting expenses — — — — — 55,246 — — 55,246
+Added: Postage expense 36,820 36,820 ( 36,820 ) —
+Added: Servicing fees 31,591 1,373 32,964 ( 32,964 ) —
+Added: Other expenses (a) 43,282 32,281 4,152 6,972 86,687 3,352 53,581 45,883 189,503
Intersegment expenses, net 71,482 18,886 5,037 2,361 97,766 853 ( 99,599 ) 980 —
Total operating expenses 471,425 226,414 45,564 23,110 766,513 61,038 76,958 ( 24,713 ) 879,796
+Added: Impairment expense and provision for beneficial interests 736 — 39,491 — 40,227 — 2,402 — 42,629
+Added: Total expenses 474,050 399,177 85,055 23,110 981,392 61,038 157,033 ( 24,713 ) 1,174,750
Income (loss) before income taxes 40,497 117,896 75,202 ( 1,942 ) 231,653 55,718 ( 58,865 ) 77 228,584
5 unchanged sentences
Total assets as of December 31, 2024 $ 193,390 600,790 10,037,688 1,449,034 12,280,902 903,837 842,692 ( 249,678 ) 13,777,753
+Added: (a) Other expenses for each reportable segment includes:
+Added: LSS - occupancy, communications, professional fees, collection costs, analysis fees, software, computer services and subscriptions, and travel.
+Added: ETSP - advertising, professional fees, analysis fees, computer services and subscriptions, travel, and provision for losses.
+Added: AGM - trustee fees and professional fees.
+Added: Bank - marketing, consulting and professional fees, software, and insurance.
AND SUBSIDIARIES
2 unchanged sentences
Year ended December 31, 2023
−Removed: Nelnet Financial Services
+Added: Reportable Segments Reconciling Items
Loan Servicing and Systems Education Technology Services and Payments Asset
Generation and
−Removed: Management Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Eliminations Total
+Added: Management Nelnet Bank Total Reportable Segments NFS Other Operating Segments Corporate and Other Activities Eliminations/ Reclassifications Total
+Added: Interest income:
+Added: Loan interest $ — — 910,139 21,806 931,945 — — — 931,945
+Added: Investment interest 4,845 26,962 67,019 36,053 134,879 74,857 12,141 ( 44,021 ) 177,855
Total interest income 4,845 26,962 977,158 57,859 1,066,824 74,857 12,141 ( 44,021 ) 1,109,800
4 unchanged sentences
Other income (expense):
−Removed: Loan servicing and systems revenue 535,459 — — — — — — 535,459
+Added: LSS revenue 517,954 — — — 517,954 — — — 517,954
Intersegment revenue 28,911 253 — — 29,164 — — ( 29,164 ) —
−Removed: Education technology services and payments revenue — 408,543 — — — — — 408,543
+Added: ETSP revenue — 463,311 — — 463,311 — — — 463,311
+Added: Reinsurance premiums earned — — — — — 20,067 — — 20,067
Solar construction revenue — — — — — — 31,669 — 31,669
Other, net 2,587 — 11,269 1,095 14,951 6,581 ( 95,859 ) — ( 74,327 )
−Removed: Gain on sale of loans, net — — 2,903 — — — — 2,903
−Removed: Impairment expense ( 5,511 ) ( 2,239 ) — ( 214 ) — ( 7,559 ) — ( 15,523 )
+Added: Loss on sale of loans, net — — ( 17,662 ) — ( 17,662 ) — — — ( 17,662 )
Derivative settlements, net — — 24,588 484 25,072 — — — 25,072
1 unchanged sentence
Total other income (expense), net 549,452 463,564 ( 22,055 ) 56 991,017 26,648 ( 64,190 ) ( 29,164 ) 924,311
−Removed: Cost of services:
−Removed: Cost to provide education technology services and payments — 148,403 — — — — — 148,403
−Removed: Cost to provide solar construction services — — — — — 19,971 — 19,971
+Added: Cost of services and expenses:
Total cost of services — 171,183 — — 171,183 — 48,576 — 219,759
−Removed: Operating expenses:
Salaries and benefits 317,885 155,296 4,191 9,074 486,446 1,130 105,531 ( 1,571 ) 591,537
Depreciation and amortization 19,257 11,319 — 574 31,150 — 47,969 — 79,118
−Removed: Other expenses 59,674 30,104 16,835 3,925 2,453 57,788 — 170,778
+Added: Reinsurance losses and underwriting expenses — — — — — 16,781 — — 16,781
+Added: Postage expense 21,194 21,194 ( 21,194 ) —
+Added: Servicing fees 37,389 509 37,898 ( 37,898 ) —
+Added: Other expenses (a) 39,323 34,133 4,988 4,994 83,438 2,391 56,307 30,935 173,070
Intersegment expenses, net 78,628 23,184 5,175 ( 47 ) 106,940 584 ( 108,088 ) 564 —
Total operating expenses 476,287 223,932 51,743 15,104 767,066 20,886 101,719 ( 29,164 ) 860,506
+Added: Impairment expense and provision for beneficial interests 296 4,310 — — 4,606 — 27,319 — 31,925
+Added: Total expenses 476,583 399,425 51,743 15,104 942,855 20,886 177,614 ( 29,164 ) 1,112,190
Income (loss) before income taxes 77,714 91,101 80,636 ( 368 ) 249,083 50,872 ( 231,241 ) — 68,715
5 unchanged sentences
Total assets as of December 31, 2023 $ 294,376 490,296 13,488,420 991,252 15,264,344 1,115,292 873,843 ( 541,095 ) 16,712,384
+Added: (a) Other expenses for each reportable segment includes:
+Added: LSS - occupancy, communications, professional fees, collection costs, analysis fees, software, computer services and subscriptions, and travel.
+Added: ETSP - advertising, professional fees, analysis fees, software, computer services and subscriptions, travel, and provision for losses.
+Added: AGM - trustee fees and professional fees.
+Added: Bank - marketing, consulting and professional fees, software, and insurance.
AND SUBSIDIARIES
2 unchanged sentences
Year ended December 31, 2022
−Removed: Nelnet Financial Services
+Added: Reportable Segments Reconciling Items
Loan Servicing and Systems Education Technology Services and Payments Asset
Generation and
−Removed: Management Nelnet Bank NFS Other Operating Segments Corporate and Other Activities Eliminations Total
+Added: Management Nelnet Bank Total Reportable Segments NFS Other Operating Segments Corporate and Other Activities Eliminations/ Reclassifications Total
+Added: Interest income:
+Added: Loan interest $ — — 638,628 12,577 651,205 — — — 651,205
+Added: Investment interest 2,722 9,377 37,929 13,396 63,424 40,377 2,199 ( 14,399 ) 91,601
Total interest income 2,722 9,377 676,557 25,973 714,629 40,377 2,199 ( 14,399 ) 742,806
4 unchanged sentences
Other income (expense):
−Removed: Loan servicing and systems revenue 486,363 — — — — — — 486,363
+Added: LSS revenue 535,459 — — — 535,459 — — — 535,459
Intersegment revenue 33,170 81 — — 33,251 — — ( 33,251 ) —
−Removed: Education technology services and payments revenue — 338,234 — — — — — 338,234
+Added: ETSP revenue — 408,543 — — 408,543 — — — 408,543
+Added: Reinsurance premiums earned — — — — — 157 — — 157
Solar construction revenue — — — — — — 24,543 — 24,543
Other, net 2,543 — 21,170 2,625 26,338 35,102 ( 43,732 ) — 17,709
−Removed: Gain on sale of loans, net — — 18,715 — — — — 18,715
−Removed: Impairment expense ( 13,243 ) — 2,436 — — ( 5,553 ) — ( 16,360 )
+Added: Loss on sale of loans, net — — ( 8,565 ) — ( 8,565 ) — — — ( 8,565 )
Derivative settlements, net — — 32,943 — 32,943 — — — 32,943
1 unchanged sentence
Total other income (expense), net 571,172 408,624 277,239 2,625 1,259,660 35,259 ( 19,189 ) ( 33,251 ) 1,242,480
−Removed: Cost of services:
−Removed: Cost to provide education technology services and payments — 108,660 — — — — — 108,660
−Removed: Cost to provide solar construction services — — — — — — — —
+Added: Cost of services and expenses:
Total cost of services — 148,403 — — 148,403 — 19,971 — 168,374
−Removed: Operating expenses:
Salaries and benefits 344,809 133,428 2,524 6,948 487,709 880 100,990 — 589,579
Depreciation and amortization 24,255 10,184 — 15 34,454 — 39,623 — 74,077
−Removed: Other expenses 52,720 19,318 13,487 1,776 2,585 55,589 — 145,469
+Added: Reinsurance losses and underwriting expenses — — — — — 154 — — 154
+Added: Postage expense 12,570 12,570 ( 12,570 ) —
+Added: Servicing fees 41,791 292 42,083 ( 42,083 ) —
+Added: Other expenses (a) 47,104 30,104 6,884 3,925 88,017 2,298 57,788 22,520 170,624
Intersegment expenses, net 75,145 19,538 2,839 ( 48 ) 97,474 ( 1,166 ) ( 95,190 ) ( 1,118 ) —
Total operating expenses 503,883 193,254 54,038 11,132 762,307 2,166 103,211 ( 33,251 ) 834,434
+Added: Impairment expense and provision for beneficial interests 5,511 2,239 — 214 7,964 — 7,559 — 15,523
+Added: Total expenses 509,394 343,896 54,038 11,346 918,674 2,166 130,741 ( 33,251 ) 1,018,331
Income (loss) before income taxes 64,456 74,105 454,725 4,357 597,643 51,496 ( 147,295 ) — 501,845
5 unchanged sentences
Total assets as of December 31, 2022 $ 273,072 484,976 15,945,762 918,716 17,622,526 1,499,785 888,869 ( 655,924 ) 19,355,256
+Added: (a) Other expenses for each reportable segment includes:
+Added: LSS - occupancy, communications, professional fees, collection costs, software, computer services and subscriptions, travel, and provision for losses.
+Added: ETSP - advertising, professional fees, analysis fees, software, computer services and subscriptions, and travel.
+Added: AGM - trustee fees and professional fees.
+Added: Bank - marketing, consulting and professional fees, computer services and subscriptions, and insurance.
AND SUBSIDIARIES
10 unchanged sentences
Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously receive and consume benefits.
+Added: The Company may incur contract fulfillment or acquisition costs and records such costs within “costs incurred to provide loan servicing” in the consolidated statements of income.
• Software services revenue - Software services revenue consideration is determined from individual contracts with customers and includes license and maintenance fees associated with loan software products, generally in a remote hosted environment, and computer and software consulting.
14 unchanged sentences
Loan servicing and systems revenue $ 482,408 517,954 535,459
+Added: Costs incurred to provide loan servicing is primarily the amortization of previously capitalized contract fulfillment costs.
+Added: The costs were pre-contract costs incurred to enhance the resources of the Company to satisfy future performance obligations and are expected to be recovered.
+Added: The contract fulfillment costs were $ 21.1 million as of December 31, 2024 which is included in "other assets" on the consolidated balance sheets.
Education Technology Services and Payments Revenue
2 unchanged sentences
The management of payment processing is considered a distinct performance obligation when sold with the remote hosted environment.
−Removed: Revenue for each performance obligation is allocated to the distinct service period, the academic school term, and recognized ratably over the service period as customers simultaneously receive and consume benefits.
−Removed: • Payment processing - Payment processing consideration is determined from individual contracts with customers and includes electronic transfer and credit card processing, reporting, virtual terminal solutions, and specialized integrations to business software for education and non-education markets.
−Removed: Volume-based revenue from payment
+Added: Revenue for each performance obligation is allocated to the
AND SUBSIDIARIES
1 unchanged sentence
(Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: processing is allocated and recognized to the distinct service period, based on when each transaction is completed, and recognized as control transfers as customers simultaneously receive and consume benefits.
+Added: distinct service period, the academic school term, and recognized ratably over the service period as customers simultaneously receive and consume benefits.
+Added: • Payment processing - Payment processing consideration is determined from individual contracts with customers and includes electronic transfer and credit card processing, reporting, virtual terminal solutions, and specialized integrations to business software for education and non-education markets.
+Added: Volume-based revenue from payment processing is allocated and recognized to the distinct service period, based on when each transaction is completed, and recognized as control transfers as customers simultaneously receive and consume benefits.
The electronic transfer and credit card processing consideration is recognized as revenue on a gross basis as the Company is the principal in the delivery of the payment processing.
8 unchanged sentences
Revenue for each performance obligation is allocated to the distinct service period, typically a month or based on when each transaction is completed, and recognized as control transfers as customers simultaneously receive and consume benefits.
+Added: The Company incurs direct costs to provide professional development and educational instructional services and records such costs within "cost to provide education technology services and payments" in the consolidated statements of income.
The following table presents disaggregated revenue by service offering:
17 unchanged sentences
The Company recognizes changes in estimated total costs on a cumulative catch-up basis in the period in which the changes are identified.
−Removed: Such changes in estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially satisfied in prior periods.
−Removed: Changes in estimates may also result in the reversal of previously recognized revenue if the current estimate adversely differs from the previous estimate.
−Removed: GRNE Solar will recognize a contract asset or liability depending on the progression of the project to date compared with the amount billed to date.
+Added: Such changes in estimates can result in the recognition of revenue in a current period for performance obligations which were satisfied or partially
AND SUBSIDIARIES
1 unchanged sentence
(Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: The following table presents disaggregated revenue by service offering and customer type.
−Removed: The amounts listed for 2022 reflect activity subsequent to GRNE Solar acquisition on July 1, 2022.
−Removed: Year ended December 31, 2023 Period from July 1, 2022 - December 31, 2022
−Removed: Solar construction $ 31,474 24,386
−Removed: Operations and maintenance 195 157
−Removed: Solar construction revenue $ 31,669 24,543
+Added: satisfied in prior periods.
+Added: Changes in estimates may also result in the reversal of previously recognized revenue if the current estimate adversely differs from the previous estimate.
+Added: Nelnet Renewable Energy will recognize a contract asset or liability depending on the progression of the project to date compared with the amount billed to date.
+Added: The following table presents disaggregated revenue by customer type.
+Added: The amounts listed for 2022 reflect activity subsequent to the GRNE Solar acquisition on July 1, 2022.
+Added: Year ended December 31, 2024 Year ended December 31, 2023 Period from July 1, 2022 - December 31, 2022
Commercial revenue $ 53,269 20,969 17,677
−Removed: Residential revenue 11,830 7,495
−Removed: Other 1,298 157
+Added: Residential revenue (a) 3,300 10,700 6,866
Solar construction revenue $ 56,569 31,669 24,543
+Added: (a) In April 2024, the Company announced a change in its solar engineering, procurement, and construction operations to focus exclusively on the commercial solar market and will discontinue its residential solar operations.
+Added: As a result, residential revenue will continue to decline from historical amounts as existing customer contracts are completed.
Cost to provide solar construction services include direct costs associated with completing a solar facility, including labor, third-party contractor fees, permitting, engineering fees, and construction material.
−Removed: In addition, if the Company estimates that a project will have costs in excess of revenue, the Company will recognize the total loss in the period it is identified.
+Added: If the Company estimates that a project will have costs in excess of revenue, the Company will recognize the total loss in the period it is identified.
Other Income (Expense)
2 unchanged sentences
2024 2023 2022
−Removed: Reinsurance premiums $ 20,067 157 —
ALLO preferred return $ 17,486 9,120 8,584
+Added: Investment activity, net 12,438 ( 8,586 ) 51,493
Borrower late fee income 8,828 8,997 10,809
−Removed: Administration/sponsor fee income 6,793 7,898 3,656
Investment advisory services (WRCM) 5,934 6,760 6,026
+Added: Administration/sponsor fee income 5,823 6,793 7,898
Management fee revenue 2,769 2,587 2,543
Loss from ALLO voting membership interest investment ( 10,693 ) ( 65,277 ) ( 67,966 )
−Removed: Loss from solar investments ( 46,702 ) ( 9,479 ) ( 10,132 )
−Removed: Investment activity, net ( 8,586 ) 51,493 91,593
+Added: Loss from solar investments, net ( 6,477 ) ( 59,645 ) ( 16,708 )
Other 25,494 24,924 15,030
2 unchanged sentences
Revenue is allocated to the distinct service period, based on when each transaction is completed.
−Removed: • Administration/sponsor fee income - Administration and sponsor fee income is earned by the AGM operating segment as administrator and sponsor for certain securitizations.
−Removed: Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously receive and consume benefits.
• Investment advisory services - Investment advisory services are provided by WRCM, the Company's SEC-registered investment advisor subsidiary, under various arrangements.
The Company earns monthly fees based on the monthly outstanding balance of investments and certain performance measures, which are recognized monthly as the uncertainty of the transaction price is resolved.
+Added: • Administration/sponsor fee income - Administration and sponsor fee income is earned by the AGM operating segment as administrator and sponsor for certain securitizations.
+Added: Revenue is allocated to the distinct service period, typically a month, and recognized as control transfers as customers simultaneously receive and consume benefits.
• Management fee revenue - Management fee revenue is earned by the LSS operating segment for providing administrative support.
9 unchanged sentences
Recognition of revenue ( 2,713 ) ( 129,433 ) ( 12,940 ) ( 145,086 )
+Added: Business acquisitions — 3,917 1,997 5,914
Balance as of December 31, 2022 2,310 49,314 5,030 56,654
1 unchanged sentence
Recognition of revenue ( 2,808 ) ( 147,405 ) ( 40,676 ) ( 190,889 )
−Removed: Business acquisitions — 3,917 1,997 5,914
Balance as of December 31, 2023 3,456 51,724 17,373 72,553
2 unchanged sentences
Balance as of December 31, 2024 $ 31,564 51,161 5,560 88,285
+Added: Reinsurance premiums written and earned and loss reserves, commissions, and broker fees for the years ended December 31, 2024 and 2023 is summarized below.
+Added: Reinsurance activity for the year ended December 31, 2022 was not material.
+Added: Year ended December 31,
+Added: Premiums written:
+Added: Assumed $ 164,858 85,261
+Added: Ceded ( 82,055 ) ( 43,685 )
+Added: Net premiums written $ 82,803 41,576
+Added: Premiums earned:
+Added: Assumed $ 125,876 41,603
+Added: Ceded ( 62,953 ) ( 21,536 )
+Added: Net premiums earned $ 62,923 20,067
+Added: Loss reserve, commissions, and broker fees:
+Added: Assumed $ 109,860 34,756
+Added: Ceded ( 54,614 ) ( 17,975 )
+Added: Net loss reserve, commissions, and broker fees $ 55,246 16,781
+Added: The Company’s loss reserve balance, net of amounts ceded to reinsurers, was $ 33.1 million and $ 8.7 million as of December 31, 2024 and 2023, respective, which is included in "other liabilities" on the consolidated balance sheets.
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
Major Customer
2 unchanged sentences
Revenue earned by the Company related to this contract was $ 380.9 million, $ 412.5 million, and $ 423.1 million for the years ended December 31, 2024, 2023, and 2022, respectively.
−Removed: The Company's current student loan servicing contract with the Department was scheduled to expire on December 14, 2023.
−Removed: In April 2023, Nelnet Servicing, a subsidiary of the Company, received a contract award from the Department, pursuant to which it was selected to provide continuing servicing capabilities for the Department's student aid recipients under a new Unified Servicing and Data Solution (USDS) contract (the "New Government Servicing Contract") which will replace the existing legacy Department student loan servicing contract.
−Removed: The New Government Servicing Contract became effective April 24, 2023 and has a five year base period, with 2 two-year and 1 one-year possible extensions.
−Removed: The Department's total loan servicing volume of existing borrowers will be allocated by the Department to Nelnet Servicing and four other third-party servicers that were awarded a USDS contract based on service and performance levels.
−Removed: Under the New Government Servicing Contract, Nelnet Servicing immediately began to make required servicing platform enhancements, for which it will be compensated from the Department on certain of these investments.
−Removed: Until servicing under the USDS contracts goes live, which is anticipated to be in April 2024, the Company will continue to earn revenue for servicing borrowers under its current legacy servicing contract with the Department.
−Removed: The new USDS servicing contract has multiple revenue components with tiered pricing based on borrower volume, while revenue earned under the legacy servicing contract is primarily based on borrower status.
−Removed: Assuming borrower volume remains consistent under the USDS servicing contract, the Company expects revenue earned on a per borrower blended basis will decrease under the USDS contract versus the current legacy contract.
−Removed: However, consistent with the current legacy contract, the Company expects to earn additional revenue from the Department under the USDS servicing contract for change requests and other support services.
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
+Added: The Company's legacy student loan servicing contract with the Department was scheduled to expire on December 14, 2023.
+Added: In April 2023, Nelnet Servicing received a contract award from the Department, pursuant to which it was selected to provide continued servicing capabilities for the Department's student aid recipients under a new Unified Servicing and Data Solution (USDS) contract which replaced the legacy Department student loan servicing contract.
+Added: The USDS contract became effective in April 2023 and has a five-year base period, with 2 two-year and 1 one-year possible extensions.
+Added: The Department's total loan servicing volume of existing borrowers was allocated by the Department to Nelnet Servicing and four other third-party servicers that were awarded a USDS contract.
+Added: Servicing under the USDS contract went live on April 1, 2024 and the Company recognized revenue in accordance with this new contract beginning in the second quarter of 2024.
+Added: The Company earned revenue for servicing borrowers under the legacy servicing contract with the Department through March 31, 2024.
The following table presents supplemental balance sheet information related to leases:
As of December 31,
−Removed: Operating lease ROU assets, which is included in " other assets " on the
−Removed: consolidated balance sheets
+Added: Operating lease ROU assets, which is included in " other assets " on the consolidated balance sheets
$ 11,016 13,565
−Removed: Operating lease liabilities, which is included in " other liabilities " on the
−Removed: consolidated balance sheets
+Added: Operating lease liabilities, which is included in " other liabilities " on the consolidated balance sheets
$ 11,522 14,291
14 unchanged sentences
Total $ 11,522
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
Defined Contribution Benefit Plan
3 unchanged sentences
The Company made contributions to the plan of $ 13.4 million, $ 14.2 million, and $ 12.9 million during the years ended December 31, 2024, 2023, and 2022, respectively.
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
Stock Based Compensation Plans
3 unchanged sentences
2024 2023 2022
+Added: Number of RSUs Weighted Average Grant-Date Fair Value Number of RSUs Weighted Average Grant-Date Fair Value Number of RSUs Weighted Average Grant-Date Fair Value
Non-vested shares at beginning of year 786,762 $ 77.52 752,622 $ 70.84 660,166 $ 62.84
8 unchanged sentences
Employee Share Purchase Plan
−Removed: The Company has an employee share purchase plan pursuant to which employees are entitled to purchase Class A common stock from payroll deductions at a 15 % discount from market value.
+Added: The Company has an employee share purchase plan pursuant to which employees are entitled to purchase Class A common stock from payroll deductions at a 15 % discount from market value up to a maximum purchase price of $ 25,000 .
During the years ended December 31, 2024, 2023, and 2022, the Company recognized compensation expense of $ 0.2 million, $ 0.1 million, and $ 0.1 million, respectively, in connection with issuing 26,884 shares, 26,585 shares, and 26,011 shares, respectively, under this plan, which is included in "salaries and benefits" on the consolidated statements of income.
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
Directors Compensation Plan
2 unchanged sentences
Directors who choose to receive Class A common stock may also elect to defer receipt of the Class A common stock until termination of their service on the board of directors.
−Removed: For the years ended December 31, 2023, 2022, and 2021, the Company recognized $ 1.6 million, $ 1.7 million, and $ 1.4 million, respectively, of expense related to this plan, which is included in "other expenses" on the consolidated statements of income.
The following table presents the number of shares awarded under this plan for the years ended December 31, 2024, 2023, and 2022.
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
Shares issued -
6 unchanged sentences
These shares are included in the Company's weighted average shares outstanding calculation.
+Added: For the years ended December 31, 2024, 2023, and 2022, the Company recognized $ 1.6 million, $ 1.7 million, and $ 1.8 million, respectively, of expense related to this plan (which includes fees paid in both cash and stock), which is included in "other expenses" on the consolidated statements of income.
Related Parties (dollar amounts in this note are not in thousands)
4 unchanged sentences
Dunlap's sister, Angela L.
−Removed: Muhleisen, along with her spouse and children, also owns or controls a significant portion of F&M stock.
−Removed: Dunlap serves as a Director and Co-Chairman of F&M, and as a Director of Union Bank.
−Removed: Muhleisen serves as a Director, Co-Chairman, and Chief Executive Officer of F&M and as a Director, Chairperson, and member of the executive committee of Union Bank.
+Added: Muhleisen, along with her children, also owns or controls a significant portion of F&M stock.
+Added: Dunlap serves as a Director and Co-Chairperson of F&M, and as a Director of Union Bank.
+Added: Muhleisen serves as a Director and Co-Chairperson of F&M and as a Director, Chairperson, and member of the executive committee of Union Bank.
Union Bank is deemed to have beneficial ownership of a significant number of shares of the Company because it serves in a capacity of trustee or account manager for various trusts and accounts holding shares of the Company, and may share voting and/or investment power with respect to such shares.
4 unchanged sentences
Loan Purchases
−Removed: The Company purchased $ 467.6 million (par value) of federally insured loans in 2023 and $ 8.1 million (par value) and $ 22.3 million (par value) of private education loans in 2022, and 2021, respectively, from Union Bank.
−Removed: The net premiums paid by the Company on these loan acquisitions was $ 0.2 million and $ 0.4 million in 2022 and 2021, respectively.
−Removed: The premium paid by the Company for loan purchases in 2023 were insignificant.
−Removed: The Company has an agreement with Union Bank in which the Company provides marketing, origination, and loan servicing services to Union Bank related to private education loans.
−Removed: Union Bank paid $ 0.1 million in marketing fees to the Company in both 2022 and 2021 under this agreement.
−Removed: The amount paid to Union Bank for these services in 2023 was insignificant.
+Added: The Company purchased $ 104.2 million (par value) and $ 467.6 million (par value) of federally insured loans in 2024 and 2023, respectively, from Union Bank.
+Added: The Company purchased $ 8.1 million (par value) of private education loans in 2022 from Union Bank.
+Added: The premium paid by the Company on the private loan acquisitions was $ 0.2 million in 2022.
+Added: The premiums paid by the Company for loan purchases in 2024 and 2023 were insignificant.
Loan Servicing
The Company serviced $ 143.6 million, $ 173.8 million, and $ 203.4 million of FFELP and private education loans for Union Bank as of December 31, 2024, 2023, and 2022, respectively.
−Removed: Servicing and origination fee revenue earned by the Company from servicing loans for Union Bank was $ 0.3 million, $ 0.4 million, and $ 0.5 million in 2023, 2022, and 2021, respectively.
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
+Added: Servicing revenue earned by the Company from servicing loans for Union Bank was $ 0.2 million, $ 0.3 million, and $ 0.4 million in 2024, 2023, and 2022, respectively.
Funding - Participation Agreements
4 unchanged sentences
This agreement provides beneficiaries of Union Bank's grantor trusts with access to investments in interests in student loans, while providing liquidity to the Company on a short-term basis.
−Removed: The Company can participate loans to Union Bank to the extent of availability under the grantor trusts, up to $ 900 million or an amount in excess of $ 900 million if mutually agreed to by both parties.
+Added: The Company can sell participation interests in loans to Union Bank to the extent of availability under the grantor trusts, up to $ 900 million or an amount in excess of $ 900 million if mutually agreed to by both parties.
Loans participated under this agreement have been accounted for by the Company as loan sales.
Accordingly, the participation interests sold are not included on the Company's consolidated balance sheets.
−Removed: The Company maintains an agreement with Union Bank, as trustee for various grantor trusts, under which Union Bank has agreed to purchase from the Company participation interests in FFELP loan asset-backed securities (and investments).
−Removed: As of December 31, 2023 and 2022, $ 0.1 million and $ 395.4 million, respectively, of FFELP loan asset-backed securities were subject to outstanding participation interests held by Union Bank, as trustee, under this agreement.
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
+Added: The Company maintains an agreement with Union Bank, as trustee for various grantor trusts, under which Union Bank has agreed to purchase from the Company participation interests in FFELP loan asset-backed securities (investments).
+Added: As of December 31, 2024 and 2023, $ 0.1 million of FFELP loan asset-backed securities were subject to outstanding participation interests held by Union Bank, as trustee, under this agreement.
The FFELP loan asset-backed securities under this agreement have been accounted for by the Company as a secured borrowing.
12 unchanged sentences
The promissory note carries an interest rate of 5.85 % and has a maturity date of January 1, 2028.
+Added: As of December 31, 2024, the outstanding balance of the note was $ 18.9 million.
Operating Cash Accounts
7 unchanged sentences
For the years ended December 31, 2024, 2023, and 2022, the Company has received fees of $ 2.7 million, $ 2.5 million, and $ 2.1 million, respectively, from Union Bank related to the administration services provided to the College Savings Plans.
−Removed: During 2021, certain call center services were provided by the Company to Union Bank for College Savings Plan clients.
−Removed: For services provided in 2021, the Company received $ 0.4 million from Union Bank.
−Removed: The Company did not provide these services to Union Bank in 2023 and 2022.
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
Additionally, Union Bank, as the program manager for the College Savings Plans, has agreed to allocate plan bank deposits to Nelnet Bank.
As of December 31, 2024 and 2023, Nelnet Bank had $ 269.1 million and $ 413.2 million, respectively, in deposits from the funds offered under the College Savings Plans.
+Added: STFIT Deposits at Nelnet Bank
+Added: The Union Bank Trust Department (STFIT) held a deposit balance at Nelnet Bank for $ 0.1 million and $ 52.1 million as of December 31, 2024 and December 31, 2023, respectively.
Lease Arrangements
1 unchanged sentence
Union Bank paid the Company approximately $ 55,000 and $ 82,000 for commercial rent and storage income during 2023 and 2022, respectively.
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
During 2023, the Company entered into a lease agreement with Union Bank for office space in Omaha, Nebraska.
−Removed: The Company paid Union Bank $ 1.1 million in rent pursuant to this agreement prior to terminating the lease, at which time the Company paid a $ 2.4 million termination fee to Union Bank.
+Added: The Company paid Union Bank $ 1.1 million in rent pursuant to this agreement prior to terminating the lease in 2023, at which time the Company paid a $ 2.4 million termination fee to Union Bank.
Other Fees Paid to Union Bank
−Removed: During the years ended December 31, 2023, 2022, and 2021, the Company paid Union Bank approximately $ 592,000 , $ 177,000 , and $ 280,000 , respectively, in cash and flexible spending accounts management, trustee and health savings account maintenance fees, and investment custodial and correspondent services for Nelnet Bank.
+Added: During the years ended December 31, 2024, 2023, and 2022, the Company paid Union Bank approximately $ 373,000 , $ 592,000 , and $ 177,000 , respectively, in investment custodial and correspondent services for Nelnet Bank, cash and flexible spending accounts management, and trustee and health savings account maintenance fees.
Other Fees Received from Union Bank
12 unchanged sentences
Dunlap and his spouse, and Ms.
−Removed: Muhleisen and her spouse.
Union Bank serves as trustee for the trusts.
5 unchanged sentences
Noordhoek (an executive officer of the Company), Ms.
−Removed: Muhleisen and her spouse, and WRCM have invested in certain of these funds.
+Added: Muhleisen, and WRCM have invested in certain of these funds.
Based upon the current level of holdings by non-affiliated limited partners, the management agreements provide non-affiliated limited partners the ability to remove WRCM as manager without cause.
−Removed: WRCM earns 50 basis points (annually) on the outstanding balance of the investments in these funds, of which WRCM pays approximately 50 % of such amount to
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
−Removed: Union Bank as custodian.
+Added: WRCM earns 50 basis points annually on the outstanding balance of the investments in these funds, of which WRCM pays approximately 50 % of such amount to Union Bank as custodian.
As of December 31, 2024, the outstanding balance of investments in these funds was $ 106.6 million.
5 unchanged sentences
Dunlap, along with his children, held a combined direct and indirect equity ownership interests in Hudl of approximately 22 % and 4 %, respectively.
−Removed: In May 2020 and May 2021, the Company made additional investments in Hudl of approximately $ 26 million and approximately $ 5 million, respectively, as one of the participants in an equity raise completed by Hudl.
−Removed: In addition, in February 2023, the Company purchased stock from existing Hudl shareholders for total consideration of $ 31.5 million.
+Added: In December 2024 and February 2023, the Company purchased stock from existing Hudl shareholders for total consideration of $ 3.3 million and $ 31.5 million, respectively.
See note 6 for additional information on the 2024 transaction and the Company’s accounting for its investment in Hudl.
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
The Company makes investments to further diversify the Company both within and outside of its historical core education-related businesses, including investments in real estate.
Recent real estate investments have been focused on the development of commercial properties in the Midwest, and particularly in Lincoln, Nebraska, where the Company's headquarters are located.
−Removed: The Company owns 25 % of TDP, which is the entity that developed and owns a building in Lincoln's Haymarket District that is the headquarters of Hudl, in which Hudl is the primary tenant and Nelnet is a tenant in this building.
−Removed: During 2023 and 2022, the Company paid Hudl approximately $ 558,000 and $ 158,000 , respectively, to provide lunches for Nelnet’s associates in Hudl’s employee cafeteria.
−Removed: Nelnet Renewable Energy
+Added: The Company owns 25 % of TDP, which is the entity that developed and owns a building in Lincoln's Haymarket District that is the headquarters of Hudl, where Hudl is the primary tenant and Nelnet is a tenant.
+Added: During 2024, 2023, and 2022, the Company paid Hudl approximately $ 594,000 , $ 558,000 , and $ 158,000 respectively, to provide lunches for Nelnet’s associates in Hudl’s employee cafeteria and use of certain common area in the building.
Solar Tax Equity Investments
−Removed: The Company has co-invested in Company-managed limited liability companies with related parties that invest in renewable energy (solar) (as summarized below).
+Added: The Company has co-invested in Company-managed limited liability companies with related parties that invest in solar tax equity investment (as summarized below).
As part of these transactions, the Company receives management and performance fees under a management agreement.
−Removed: Entity/Relationship Investment amount Revenue recognized by the Company from management and performance fees
+Added: Entity/Relationship Investment amount Revenue recognized by the
+Added: Company from management and performance fees (a)
2024 2023 2022 2024 2023 2022
13 unchanged sentences
Muhleisen) 1,261,305 737,465 — 15,682 7,846 3,846
−Removed: Funding - Solar
−Removed: Union Bank has provided funding for the following Nelnet Renewable Energy properties and solar fields.
−Removed: Building/solar field Original loan amount Loan amount outstanding as of December 31, 2023
−Removed: Fixed interest rate Maturity date
−Removed: Office space - Palatine, Illinois $ 287,000 $ 274,860 6.05 % 12/30/2027
−Removed: Warehouse - Elk Grove Village, Illinois 332,000 278,403 5.35 3/1/2024
−Removed: Solarfield - Round Lake, Illinois 900,000 882,449 5.00 11/15/2030
−Removed: Solarfield - Round Lake, Illinois 1,700,000 1,659,076 5.00 11/15/2028
−Removed: Solarfield - St.
−Removed: Charles, Illinois 2,300,000 2,094,575 5.00 11/15/2028
−Removed: Solarfield - St.
−Removed: Charles, Illinois 600,000 588,359 5.00 11/15/2030
−Removed: AND SUBSIDIARIES
−Removed: Notes to Consolidated Financial Statements
−Removed: (Dollars in thousands, except share amounts, unless otherwise noted)
+Added: (a) In addition to the co-investments identified above, the related parties in the above table have also invested directly in tax equity solar investments in which are managed by the Company, and the Company receives management and performance fees on such activity.
+Added: The fees recognized by the Company for these projects are included in the above table.
Stock Repurchase
1 unchanged sentence
The shares were repurchased at a discount to the closing market price of the Company’s Class A common stock as of November 10, 2023, and the transaction was separately approved by the Company’s Board of Directors and its Nominating and Corporate Governance Committee.
+Added: AND SUBSIDIARIES
+Added: Notes to Consolidated Financial Statements
+Added: (Dollars in thousands, except share amounts, unless otherwise noted)
The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis.
32 unchanged sentences
Investments at fair value 1,160,320 1,160,320 555 1,085,726 —
−Removed: Investments - held to maturity 163,622 162,738 — 163,622 —
+Added: Investments - held-to-maturity asset-backed securities 216,164 210,774 — 216,164 —
Notes receivable 32,258 32,258 — 32,258 —
16 unchanged sentences
Investments at fair value 1,006,810 1,006,810 172 955,804 —
−Removed: Investments - held to maturity 18,996 18,774 — 18,996 —
+Added: Investments - held-to-maturity asset-backed securities 163,622 162,738 — 163,622 —
Notes receivable 53,747 53,747 — 53,747 —
2 unchanged sentences
Restricted cash – due to customers 368,656 368,656 368,656 — —
+Added: Derivative instruments 452 452 — 452 —
Financial liabilities:
3 unchanged sentences
Due to customers 425,507 425,507 425,507 — —
+Added: Derivative instruments 1,976 1,976 — 1,976 —
The methodologies for estimating the fair value of financial assets and liabilities that are measured at fair value on a recurring basis are previously discussed.
2 unchanged sentences
Fair values for loans receivable were determined by modeling loan cash flows using stated terms of the assets and internally developed assumptions.
−Removed: The significant assumptions used to project cash flows are prepayment speeds, default rates, cost of funds, required return on equity, and future interest rate and index relationships.
−Removed: A number of significant inputs into the models are internally derived and not observable to market participants.
+Added: The significant assumptions used to project cash flows are prepayment speeds, default rates, cost of
AND SUBSIDIARIES
1 unchanged sentence
(Dollars in thousands, except share amounts, unless otherwise noted)
+Added: funds, required return on equity, and future interest rate and index relationships.
+Added: A number of significant inputs into the models are internally derived and not observable to market participants.
Investments - Held to Maturity
14 unchanged sentences
These are level 2 valuations.
−Removed: The fair value of the remaining deposits equal the amounts payable on demand at the balance sheet date and are reported at their carrying value.
+Added: The fair value of the remaining deposits equals the amounts payable on demand at the balance sheet date and are reported at their carrying value.
These are level 1 valuations.
4 unchanged sentences
Changes in assumptions could significantly affect the estimates.
−Removed: Legal Proceedings
+Added: Commitments and Contingencies
The Company is subject to various claims, lawsuits, and proceedings that arise in the normal course of business.
−Removed: These matters frequently involve claims by student loan borrowers disputing the manner in which their student loans have been serviced or the accuracy of reports to credit bureaus, claims by student loan borrowers or other consumers alleging that state or Federal privacy, cybersecurity, and other consumer protection laws have been violated in the process of servicing loans or conducting other business activities, and disputes with other business entities.
+Added: These matters frequently involve disputes with other business entities and claims by student loan borrowers disputing the manner in which their student loans have been serviced or the accuracy of reports to credit bureaus, claims by student loan borrowers or other consumers alleging that state or Federal privacy, cybersecurity, and other consumer protection laws have been violated in the process of servicing loans or conducting other business activities.
In addition, from time to time, the Company receives information and document requests or demands from state or federal regulators concerning its business practices.
13 unchanged sentences
Cash and cash equivalents $ 55,515 31,153
−Removed: Investments 1,071,335 1,464,583
+Added: Investments at fair value 490,001 588,958
+Added: Other investments and notes receivable 545,066 482,377
Investment in subsidiary debt 75,231 287,192
11 unchanged sentences
Retained earnings 3,340,540 3,270,403
−Removed: Accumulated other comprehensive loss, net ( 20,119 ) ( 37,366 )
+Added: Accumulated other comprehensive earnings (loss), net 1,470 ( 20,119 )
Total Nelnet, Inc.
16 unchanged sentences
Equity in subsidiaries income 110,381 101,885 227,596
−Removed: Impairment expense ( 2,060 ) ( 6,561 ) ( 4,637 )
Derivative market value adjustments and derivative settlements, net 10,639 ( 15,662 ) 264,634
1 unchanged sentence
Operating expenses 2,870 5,445 14,552
+Added: Impairment expense 537 2,060 6,561
+Added: Total expenses 3,407 7,505 21,113
Income before income taxes 200,608 76,313 457,468
−Removed: Income tax benefit (expense) 12,935 ( 50,732 ) ( 27,101 )
+Added: Income tax (expense) benefit ( 17,277 ) 13,303 ( 50,607 )
Net income 183,331 89,616 406,861
11 unchanged sentences
Unrealized holding gains (losses) arising during period, net 19,242 6,412 ( 42,793 )
−Removed: Reclassification of losses (gains) recognized in net income, net 3,818 ( 3,894 ) ( 372 )
+Added: Reclassification of (gains) losses recognized in net income, net ( 1,481 ) 3,818 ( 3,894 )
Income tax effect ( 4,263 ) 13,498 ( 2,456 ) 7,774 11,205 ( 35,482 )
15 unchanged sentences
Net income 183,331 89,616 406,861
−Removed: Adjustments to reconcile net income to net cash (used in) provided by operating activities:
+Added: Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization 621 620 619
1 unchanged sentence
Proceeds from termination of derivative instruments — 164,079 91,786
−Removed: (Payments to) proceeds from clearinghouse - initial and variation margin, net ( 213,923 ) 148,691 91,294
+Added: Proceeds from (payments to) clearinghouse - initial and variation margin, net 2,374 ( 213,923 ) 148,691
Equity in earnings of subsidiaries ( 110,381 ) ( 101,885 ) ( 227,596 )
−Removed: Loss on investments, net 64,584 51,175 721
+Added: (Gain) loss on investments, net ( 28,875 ) 64,584 51,175
Proceeds from sale of equity securities, net of purchases 7 75 42,841
2 unchanged sentences
Impairment expense 537 2,060 6,561
−Removed: (Increase) decrease in other assets ( 18,181 ) 14,816 ( 2,578 )
−Removed: Increase in other liabilities 11,049 10,590 1,784
−Removed: Net cash (used in) provided by operating activities ( 16,604 ) 368,701 98,593
+Added: Changes in operating assets and liabilities:
+Added: Decrease (increase) in other assets 5,459 ( 18,181 ) 14,816
+Added: (Decrease) increase in other liabilities ( 4,611 ) 11,049 10,590
+Added: Total adjustments ( 170,987 ) ( 106,220 ) ( 38,160 )
+Added: Net cash provided by (used in) operating activities 12,344 ( 16,604 ) 368,701
Cash flows from investing activities:
1 unchanged sentence
Proceeds from sales of available-for-sale securities 278,372 569,670 435,937
−Removed: Proceeds from beneficial interest in consumer loan securitization 6,783 345 —
+Added: Proceeds from beneficial interest in private loan securitization 7,001 6,783 345
Capital distributions from subsidiaries, net 28,539 355,790 7,340
−Removed: (Increase) decrease in notes receivable from subsidiaries ( 35,682 ) ( 66,698 ) 20,895
+Added: Decrease (increase) in notes receivable from subsidiaries 37,739 ( 35,682 ) ( 66,698 )
Proceeds from (payments on) subsidiary debt, net 211,961 122,999 ( 36,104 )
−Removed: Purchases of other investments ( 60,707 ) ( 122,236 ) ( 110,184 )
+Added: Purchases of other investments and issuances of notes receivable ( 128,583 ) ( 60,707 ) ( 122,236 )
Proceeds from other investments and repayments of notes receivable 63,080 32,732 20,358
9 unchanged sentences
Net cash (used in) provided by financing activities ( 330,244 ) ( 817,395 ) 93,522
−Removed: Net decrease in cash, cash equivalents, and restricted cash ( 49,341 ) ( 12,516 ) ( 8,421 )
+Added: Net increase (decrease) in cash, cash equivalents, and restricted cash 12,092 ( 49,341 ) ( 12,516 )
Cash, cash equivalents, and restricted cash, beginning of period 92,680 142,021 154,537
7 unchanged sentences
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.