4 unchanged sentences
Interest Rate Risk - AGM Operating Segment
−Removed: AGM’s primary market risk exposure arises from fluctuations in its borrowing and lending rates, the spread between which could impact AGM due to shifts in market interest rates.
+Added: AGM’s primary market risk exposure arises from fluctuations in its lending and borrowing rates, the spread between which could impact AGM due to shifts in market interest rates.
The following table sets forth AGM’s loan assets and debt instruments by rate characteristics:
−Removed: As of June 30, 2025 As of December 31, 2024
+Added: As of September 30, 2025 As of December 31, 2024
Dollars Percent Dollars Percent
14 unchanged sentences
The Company earned no variable-rate floor income in 2025 or 2024.
−Removed: The following table shows AGM’s federally insured student loan assets that were earning fixed rate floor income as of June 30, 2025:
+Added: The following table shows AGM’s federally insured student loan assets that were earning fixed-rate floor income as of September 30, 2025:
Fixed interest rate range Borrower/lender weighted average yield Estimated variable conversion rate (a) Loan balance
4 unchanged sentences
(a) The estimated variable conversion rate is the estimated short-term interest rate at which loans would convert to a variable rate.
−Removed: As of June 30, 2025, the weighted average estimated variable conversion rate was 5.58% and the short-term interest rate was 452 basis points.
+Added: As of September 30, 2025, the weighted average estimated variable conversion rate was 5.58% and the short-term interest rate was 454 basis points.
Absent the use of derivative instruments, a rise in interest rates will reduce the amount of floor income received and has an impact on earnings due to interest margin compression caused by increasing financing costs, until such time as the federally insured loans earn interest at a variable rate in accordance with their SAP formulas.
1 unchanged sentence
A summary of fixed-rate floor income earned by the AGM operating segment follows.
−Removed: Three months ended June 30, Six months ended June 30,
+Added: Three months ended September 30, Nine months ended September 30,
2025 2024 2025 2024
5 unchanged sentences
AGM is also exposed to interest rate risk in the form of repricing risk and basis risk because the interest rate characteristics of AGM’s assets do not match the interest rate characteristics of the funding for those assets.
−Removed: The following table presents AGM’s FFELP student loan assets and related funding for those assets arranged by underlying indices as of June 30, 2025:
+Added: The following table presents AGM’s FFELP student loan assets and related funding for those assets arranged by underlying indices as of September 30, 2025:
Index Frequency of variable resets Assets Funding of student loan assets
11 unchanged sentences
The Company entered into these derivative instruments to better match the interest rate characteristics on its student loan assets and the debt funding such assets.
−Removed: The following table summarizes the Basis Swaps outstanding as of June 30, 2025:
+Added: The following table summarizes the Basis Swaps outstanding as of September 30, 2025:
Maturity Notional amount
1 unchanged sentence
(b) The interest rate on the Company's FFELP warehouse facilities is indexed to asset-backed commercial paper rates and daily SOFR.
−Removed: (c) As of June 30, 2025, the Company was sponsor for $321.9 million of outstanding asset-backed securities that were set and provide for interest rates to be periodically reset via a "dutch auction" (the “Auction Rate Securities”).
+Added: (c) As of September 30, 2025, the Company was sponsor for $60.6 million of outstanding asset-backed securities that were set and provide for interest rates to be periodically reset via a "dutch auction" (the “Auction Rate Securities”).
Since the auction feature has essentially been inoperable for substantially all auction rate securities since 2008, the Auction Rate Securities generally pay interest to the holder at a maximum rate as defined by the indenture.
10 unchanged sentences
Dollars Percent Dollars Percent Dollars Percent Dollars Percent
−Removed: Three months ended June 30, 2025 Three months ended June 30, 2024
+Added: Three months ended September 30, 2025 Three months ended September 30, 2024
Effect on earnings:
3 unchanged sentences
Increase (decrease) in basic and diluted earnings per share $ (0.01) $ (0.03) $ (0.01) $ (0.03)
−Removed: Six months ended June 30, 2025 Six months ended June 30, 2024
+Added: Nine months ended September 30, 2025 Nine months ended September 30, 2024
Effect on earnings:
6 unchanged sentences
To achieve this objective, the Company manages and mitigates Nelnet Bank’s exposure to fluctuations in market interest rates through several techniques, including managing the maturity, repricing, and mix of fixed- and variable-rate assets and liabilities and the use of derivative instruments.
−Removed: The following table presents Nelnet Bank's loan assets, asset-backed security investments, deposits (including intercompany deposits), and debt instruments by rate characteristics:
−Removed: As of June 30, 2025 As of December 31, 2024
+Added: The following table presents Nelnet Bank's loan assets, asset-backed security investments, and deposits (including intercompany deposits) by rate characteristics:
+Added: As of September 30, 2025 As of December 31, 2024
Dollars Percent Dollars Percent
11 unchanged sentences
The derivatives are not reflected in the above table.
−Removed: See note 5 of the notes to consolidated financial statements included under Part I, Item 1 of this report for a summary of Nelnet Bank's derivatives outstanding as of June 30, 2025.
+Added: See note 5 of the notes to consolidated financial statements included under Part I, Item 1 of this report for a summary of Nelnet Bank's derivatives outstanding as of September 30, 2025.
Interest Rate and Market Risk - Investments
2 unchanged sentences
Average balance Interest income/ expense Average yields/ rates Average balance Interest income/ expense Average yields/ rates
−Removed: Three months ended June 30,
+Added: Three months ended September 30,
Asset-backed securities available-for-sale (a) (b) $ 953,996 14,651 6.09 % $ 818,421 11,502 5.58 %
3 unchanged sentences
$ 3,555 46 5.13 $ 109,033 1,782 6.48
−Removed: Six months ended June 30,
+Added: Nine months ended September 30,
Asset-backed securities available-for-sale (a) (b) $ 721,365 30,756 5.70 % $ 836,400 39,612 6.31 %
9 unchanged sentences
(b) The majority of the Company’s asset-backed securities earn floating rates with expected returns of approximately SOFR + 100 to 250 basis points to maturity.
−Removed: As of June 30, 2025, $208.6 million (par value) of the Company’s asset-backed securities earn a weighted average fixed rate of 3.47%.
+Added: As of September 30, 2025, $226.0 million (par value) of the Company’s asset-backed securities earn a weighted average fixed rate of 3.72%.
(c) Interest incurred by the Company on amounts borrowed under the participation agreement is at a variable rate of SOFR + 62.5 basis points.
−Removed: (d) Interest incurred by the Company on amounts that were borrowed under repurchase agreements were at a variable rate of SOFR + 100 to 140 basis points.
+Added: (d) Interest incurred by the Company on amounts that were borrowed under repurchase agreements was at a variable rate of SOFR + 100 to 140 basis points.
The Company’s portfolio of asset-backed investment securities has limited liquidity, and the Company could incur a significant loss if the investments were sold prior to maturity at an amount less than the original purchase price.
−Removed: As of June 30, 2025, the gross unrealized loss on the Company’s available-for-sale debt securities (including available-for-sale securities held at Nelnet Bank) was $22.7 million, and the aggregate fair value of available-for-sale debt securities with unrealized losses was $534.6 million.
+Added: As of September 30, 2025, the gross unrealized loss on the Company’s available-for-sale debt securities (including available-for-sale securities held at Nelnet Bank) was $16.3 million, and the aggregate fair value of available-for-sale debt securities with unrealized losses was $343.7 million.
The Company currently has the intent and ability to retain these investments, and none of the unrealized losses were due to credit losses.
9 unchanged sentences
Dollars Percent Dollars Percent Dollars Percent Dollars Percent
−Removed: Three months ended June 30, 2025
+Added: Three months ended September 30, 2025
Effect on earnings:
6 unchanged sentences
Increase (decrease) in basic and diluted earnings per share $ 0.13 $ 0.43 $ (0.10) $ (0.24)
−Removed: Six months ended June 30, 2025
+Added: Nine months ended September 30, 2025
Effect on earnings:
6 unchanged sentences
Increase (decrease) in basic and diluted earnings per share $ 0.26 $ 1.01 $ (0.20) $ (0.46)
−Removed: (a) Impact associated with variable rate loans and variable rate bonds and notes payable, including the impact of derivative settlements.
+Added: (a) Impact associated with variable-rate restricted cash, variable-rate loans, and variable-rate bonds and notes payable, including the impact of derivative settlements.
(b) Impact associated with variable-rate loans and debt securities (investments) and variable-rate deposits, including the impact of derivative settlements.
2 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.