6 unchanged sentences
The following table sets forth AGM’s loan assets and debt instruments by rate characteristics:
−Removed: As of September 30, 2025 As of December 31, 2024
+Added: As of March 31, 2026 As of December 31, 2025
Dollars Percent Dollars Percent
14 unchanged sentences
The Company earned no variable-rate floor income in 2026 or 2025.
−Removed: The following table shows AGM’s federally insured student loan assets that were earning fixed-rate floor income as of September 30, 2025:
+Added: The following table shows AGM’s federally insured student loan assets that were earning fixed-rate floor income as of March 31, 2026:
Fixed interest rate range Borrower/lender weighted-average yield Estimated variable conversion rate (a) Loan balance
3 unchanged sentences
8.0 - 8.99% 8.18% 5.54% 186,142
+Added: 9.06% 6.42% 79,387
(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 September 30, 2025, the weighted average estimated variable conversion rate was 5.58% and the short-term interest rate was 454 basis points.
+Added: As of March 31, 2026, the weighted-average estimated variable conversion rate was 5.23% and the short-term interest rate was 386 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 September 30, Nine months ended September 30,
−Removed: 2025 2024 2025 2024
+Added: Three months ended March 31,
Fixed-rate floor income, gross $ 1,563 975
2 unchanged sentences
(a) Derivative settlements consist of settlements received related to the Company's derivatives used to hedge student loans earning fixed-rate floor income.
−Removed: For further details of the Company’s derivatives used to hedge fixed-rate loans, see note 5 of the notes to consolidated financial statements included in Part I, Item 1 of this report.
+Added: See note 4 of the notes to consolidated financial statements included in Part I, Item 1 of this report for a summary of fixed-rate floor derivatives.
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 September 30, 2025:
+Added: In a decreasing interest rate environment, student loan spread on FFELP loans decreases in the short term because of the timing of interest rate resets on the Company's assets occurring daily in contrast to the timing of the interest rate resets on the Company's debt occurring either monthly or quarterly.
+Added: This also results in student loan spread increasing in the short term in an increasing interest rate environment.
+Added: The following table presents AGM’s FFELP student loan assets and related funding for those assets arranged by underlying indices as of March 31, 2026:
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 September 30, 2025:
+Added: The following table summarizes the Basis Swaps outstanding as of March 31, 2026:
Maturity Notional amount
2026 $ 1,150,000
−Removed: (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 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”).
+Added: (b) The interest rates on the Company's FFELP warehouse facility is indexed to asset-backed commercial paper rates and daily SOFR.
+Added: (c) As of March 31, 2026, the Company was sponsor for $10.9 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”).
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 September 30, 2025 Three months ended September 30, 2024
−Removed: Effect on earnings:
−Removed: Increase (decrease) in pre-tax net income before impact of derivative settlements $ (792) (0.6) % $ (2,377) (1.8) % $ (819) (36.8) % $ (2,457) (110.5) %
−Removed: Impact of derivative settlements 353 0.3 1,059 0.8 352 15.8 1,056 47.5
−Removed: Increase (decrease) in net income before taxes $ (439) (0.3) % $ (1,318) (1.0) % $ (467) (21.0) % $ (1,401) (63.0) %
−Removed: Increase (decrease) in basic and diluted earnings per share $ (0.01) $ (0.03) $ (0.01) $ (0.03)
−Removed: Nine months ended September 30, 2025 Nine months ended September 30, 2024
+Added: Three months ended March 31, 2026 Three months ended March 31, 2025
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, and deposits (including intercompany deposits) by rate characteristics:
−Removed: As of September 30, 2025 As of December 31, 2024
+Added: The following table presents Nelnet Bank's loan assets, asset-backed security investments, deposits (including intercompany deposits), and bonds and notes payable (debt) by rate characteristics:
+Added: As of March 31, 2026 As of December 31, 2025
Dollars Percent Dollars Percent
8 unchanged sentences
Variable-rate deposits (a) 1,335,953 1,127,667
−Removed: Total deposits $ 1,733,041 100.0 % $ 1,254,622 100.0 %
+Added: Variable-rate debt 181,663 —
+Added: Total variable-rate deposits and debt 1,517,616 71.0 1,127,667 64.0
+Added: Total deposits and debt instruments $ 2,138,417 100.0 % $ 1,762,960 100.0 %
(a) Nelnet Bank uses derivative instruments to hedge exposure to variability in cash flows of variable-rate deposits to minimize the exposure to volatility in cash flows from future changes in interest rates.
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 September 30, 2025.
+Added: See note 4 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 March 31, 2026.
Interest Rate and Market Risk - Investments
−Removed: The following table presents the rates earned on the Company’s available-for-sale debt securities (investments) and debt facilities used to fund a portion of such investments.
−Removed: The table below excludes securities (investments) held by Nelnet Bank.
−Removed: Average balance Interest income/ expense Average yields/ rates Average balance Interest income/ expense Average yields/ rates
−Removed: Three months ended September 30,
−Removed: Asset-backed securities available-for-sale (a) (b) $ 953,996 14,651 6.09 % $ 818,421 11,502 5.58 %
−Removed: Debt funding asset-backed securities available-for-sale:
−Removed: Participation agreement - variable rate (c) $ 3,555 46 5.13 % $ 100 2 6.16 %
−Removed: Repurchase agreements - variable rate (d) — — — 108,933 1,780 6.48
−Removed: $ 3,555 46 5.13 $ 109,033 1,782 6.48
−Removed: Nine months ended September 30,
+Added: The following table presents the rates earned on the Company’s available-for-sale debt securities (investments), excluding securities (investments) held by Nelnet Bank.
+Added: Three months ended March 31,
+Added: Average balance Interest income Average yield Average balance Interest income Average yield
Asset-backed securities available-for-sale (a) (b) $ 700,294 8,493 4.92 % $ 589,299 7,995 5.50 %
−Removed: Debt funding asset-backed securities available-for-sale:
−Removed: Participation agreement - variable rate (c) $ 1,264 49 5.18 % $ 3,841 177 6.14 %
−Removed: Repurchase agreements - variable rate (d) — — — 120,977 6,039 6.65
−Removed: $ 1,264 49 5.18 $ 124,818 6,216 6.63
−Removed: (a) The Company has repurchased certain of its own asset-backed securities (bonds and notes payable) in the secondary market.
+Added: (a) The Company has repurchased certain of its own asset-backed securities (bonds and notes payable) in the secondary market or retained such instruments upon initial issuance.
For accounting purposes, these notes are eliminated in consolidation and are not included in the Company's consolidated financial statements.
−Removed: However, these securities remain legally outstanding at the trust level and the Company could sell these notes to third parties or redeem the notes at par as cash is generated by the trust estate.
+Added: However, these securities remain legally outstanding at the trust level and the Company could sell these notes to third parties, redeem the notes at par as cash is generated by the trust estate, or pledge the securities as collateral on repurchase agreements.
Upon a sale of these notes to third parties, the Company would obtain cash proceeds equal to the market value of the notes on the date of such sale.
1 unchanged sentence
(b) The majority of the Company’s asset-backed securities earn floating rates with expected returns of approximately SOFR + 50 to 350 basis points to maturity.
−Removed: 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%.
−Removed: (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 was at a variable rate of SOFR + 100 to 140 basis points.
+Added: As of March 31, 2026, $205.8 million (par value) of the Company’s asset-backed securities earn a weighted-average fixed rate of 3.72%.
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 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.
+Added: As of March 31, 2026, the gross unrealized loss on the Company’s available-for-sale debt securities (including available-for-sale securities held at Nelnet Bank) was $21.2 million, and the aggregate fair value of available-for-sale debt securities with unrealized losses was $991.1 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 September 30, 2025
+Added: Three months ended March 31, 2026
Effect on earnings:
6 unchanged sentences
Increase (decrease) in basic and diluted earnings per share $ 0.08 $ 0.29 $ (0.05) $ (0.10)
−Removed: Nine months ended September 30, 2025
+Added: Three months ended March 31, 2025
Effect on earnings:
7 unchanged sentences
(a) Impact associated with variable-rate restricted cash, variable-rate loans, and variable-rate bonds and notes payable, including the impact of derivative settlements.
−Removed: (b) Impact associated with variable-rate loans and debt securities (investments) and variable-rate deposits, including the impact of derivative settlements.
+Added: (b) Impact associated with variable-rate loans and debt securities (investments) and variable-rate deposits and bonds and notes payable, including the impact of derivative settlements.
(c) Impact associated with variable-rate debt securities (investments).
1 unchanged sentence
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.