NELNET INC

For the period ended Jun 30, 2024. Filed Aug 8, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Jun 30, 2024 · Filed Aug 8, 2024

NNI$132.50+1.5%Stored close · as of Nov 9, 2026

Extracted filing text, with the paragraph anchors used by the comparison.

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Contents

Item 1. Financial Statements

NELNET, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except share data)
(unaudited)
	As of	As of
	June 30, 2024	December 31, 2023
Assets:
Loans and accrued interest receivable (net of allowance for loan losses of $96,764 and $104,643, respectively)	$10,939,519	13,108,204
Cash and cash equivalents:
Cash and cash equivalents - not held at a related party	33,000	34,912
Cash and cash equivalents - held at a related party	112,478	133,200
Total cash and cash equivalents	145,478	168,112
Investments and notes receivable (including investments at fair value of $948,792 and $988,841, respectively)	1,896,433	1,846,707
Restricted cash	538,446	488,723
Restricted cash - due to customers	259,479	368,656
Restricted investments	50,358	17,969
Accounts receivable (net of allowance for doubtful accounts of $4,272 and $4,304, respectively)	159,836	196,200
Goodwill	158,029	158,029
Intangible assets, net	40,521	44,819
Property and equipment, net	131,666	127,008
Other assets	181,428	187,957
Total assets	$14,501,193	16,712,384
Liabilities:
Bonds and notes payable	$9,567,708	11,828,393
Accrued interest payable	27,141	35,391
Bank deposits	890,472	743,599
Other liabilities	406,974	479,387
Due to customers	388,876	425,507
Total liabilities	11,281,171	13,512,277
Commitments and contingencies
Equity:
Nelnet, Inc. shareholders' equity:
Preferred stock, $0.01 par value. Authorized 50,000,000 shares; no shares issued or outstanding	—	—
Common stock:
Class A, $0.01 par value. Authorized 600,000,000 shares; issued and outstanding 25,585,840 shares and 26,400,630 shares, respectively	256	264
Class B, convertible, $0.01 par value. Authorized 60,000,000 shares; issued and outstanding 10,663,088 shares	107	107
Additional paid-in capital	657	3,096
Retained earnings	3,295,301	3,270,403
Accumulated other comprehensive loss, net	(2,260)	(20,119)
Total Nelnet, Inc. shareholders' equity	3,294,061	3,253,751
Noncontrolling interests	(74,039)	(53,644)
Total equity	3,220,022	3,200,107
Total liabilities and equity	$14,501,193	16,712,384
Supplemental information - assets and liabilities of consolidated education and other lending variable interest entities:
Loans and accrued interest receivable	$10,276,743	12,676,932
Restricted cash	515,844	451,932
Bonds and notes payable	(9,822,767)	(12,006,170)
Accrued interest payable and other liabilities	(102,370)	(135,748)
Net assets of consolidated education and other lending variable interest entities	$867,450	986,946

NELNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Dollars in thousands, except share data)
(unaudited)
Three months ended · Six months ended
	June 30,		June 30,
	2024	2023	2024	2023
Interest income:
Loan interest	$202,129	243,045	418,853	468,288
Investment interest	40,737	40,982	92,814	81,707
Total interest income	242,866	284,027	511,667	549,995
Interest expense on bonds and notes payable and bank deposits	176,459	233,148	371,039	432,597
Net interest income	66,407	50,879	140,628	117,398
Less provision (negative provision) for loan losses	3,611	(11,380)	14,440	791
Net interest income after provision for loan losses	62,796	62,259	126,188	116,607
Other income (expense):
Loan servicing and systems revenue	109,052	122,020	236,252	261,247
Education technology services and payments revenue	116,909	109,858	260,449	243,462
Solar construction revenue	9,694	4,735	23,420	13,386
Other, net	28,871	(9,167)	45,734	(24,235)
Loss on sale of loans	(1,438)	(5,461)	(1,579)	(15,753)
Impairment expense and provision for beneficial interests	(7,776)	—	(7,813)	—
Derivative market value adjustments and derivative settlements, net	3,182	2,070	12,903	(12,005)
Total other income (expense), net	258,494	224,055	569,366	466,102
Cost of services:
Cost to provide education technology services and payments	40,222	40,407	88,832	88,110
Cost to provide solar construction services	8,072	9,122	22,300	17,422
Total cost of services	48,294	49,529	111,132	105,532
Operating expenses:
Salaries and benefits	139,634	144,706	283,509	297,416
Depreciation and amortization	15,142	18,652	31,911	35,279
Other expenses	59,792	45,997	116,637	86,781
Total operating expenses	214,568	209,355	432,057	419,476
Income before income taxes	58,428	27,430	152,365	57,701
Income tax expense	14,753	10,187	37,936	18,273
Net income	43,675	17,243	114,429	39,428
Net loss attributable to noncontrolling interests	1,416	10,183	4,069	13,957
Net income attributable to Nelnet, Inc.	$45,091	27,426	118,498	53,385
Earnings per common share:
Net income attributable to Nelnet, Inc. shareholders - basic and diluted	$1.23	0.73	3.22	1.43
Weighted average common shares outstanding - basic and diluted	36,525,482	37,468,397	36,841,227	37,406,843

NELNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Dollars in thousands)
(unaudited)
Three months ended June 30, · Six months ended June 30,
2024 · 2023 · 2024 · 2023
Net income		$43,675				17,243			114,429		39,428
Other comprehensive income:
Net changes related to foreign currency translation adjustments	$	(21)				—			(16)		(3)
Net changes related to available-for-sale debt securities:
Unrealized holding gains arising during period, net of losses	8,874			8,649				25,635		17,300
Reclassification of (gains) losses recognized in net income, net	(1,053)			(918)				(1,605)		4,064
Amortization of net unrealized loss on securities transferred from available-for-sale to held-to-maturity	51			70				122		70
Income tax effect	(1,890)		5,982		(1,872)		5,929		(5,797)	18,355		(5,144)	16,290
Net changes related to equity method investee's other comprehensive income:
Gain (loss) on cash flow hedge	335			(501)				(632)		(499)
Income tax effect	(80)		255		120		(381)		152	(480)		120	(379)
Other comprehensive income		6,216				5,548			17,859		15,908
Comprehensive income		49,891				22,791			132,288		55,336
Comprehensive loss attributable to noncontrolling interests		1,416				10,183			4,069		13,957
Comprehensive income attributable to Nelnet, Inc.		$51,307				32,974			136,357		69,293

NELNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(Dollars in thousands, except share data)
(unaudited)
	Nelnet, Inc. Shareholders
Preferred stock shares · Common stock shares · Preferred stock · Class A common stock · Class B common stock · Additional paid-in capital · Retained earnings · Accumulated other comprehensive loss · Noncontrolling interests · Total equity
Class A · Class B
Balance as of March 31, 2023	—	26,623,662	10,668,460	$—	266	107	4,639	3,243,985	(27,006)	(16,197)	3,205,794
Issuance of noncontrolling interests	—	—	—	—	—	—	—	—	—	11,703	11,703
Net income (loss)	—	—	—	—	—	—	—	27,426	—	(10,183)	17,243
Other comprehensive income	—	—	—	—	—	—	—	—	5,548	—	5,548
Distribution to noncontrolling interests	—	—	—	—	—	—	—	—	—	(7,942)	(7,942)
Cash dividends on Class A and Class B common stock - $0.26 per share	—	—	—	—	—	—	—	(9,694)	—	—	(9,694)
Issuance of common stock, net of forfeitures	—	27,562	—	—	—	—	2,056	—	—	—	2,056
Compensation expense for stock based awards	—	—	—	—	—	—	3,884	—	—	—	3,884
Repurchase of common stock	—	(4,734)	—	—	—	—	(465)	—	—	—	(465)
Balance as of June 30, 2023	—	26,646,490	10,668,460	$—	266	107	10,114	3,261,717	(21,458)	(22,619)	3,228,127
Balance as of March 31, 2024	—	26,055,314	10,663,088	$—	261	107	1,101	3,304,197	(8,476)	(61,470)	3,235,720
Issuance of noncontrolling interests	—	—	—	—	—	—	—	—	—	6,618	6,618
Net income (loss)	—	—	—	—	—	—	—	45,091	—	(1,416)	43,675
Other comprehensive income	—	—	—	—	—	—	—	—	6,216	—	6,216
Distribution to noncontrolling interests	—	—	—	—	—	—	—	—	—	(19,864)	(19,864)
Cash dividends on Class A and Class B common stock - $0.28 per share	—	—	—	—	—	—	—	(10,158)	—	—	(10,158)
Issuance of common stock, net of forfeitures	—	18,506	—	—	—	—	2,171	—	—	—	2,171
Compensation expense for stock based awards	—	—	—	—	—	—	2,733	—	—	—	2,733
Repurchase of common stock	—	(487,980)	—	—	(5)	—	(5,348)	(41,489)	—	—	(46,842)
Acquisition of remaining 20% of GRNE Solar, net of tax	—	—	—	—	—	—	—	(2,340)	—	2,093	(247)
Balance as of June 30, 2024	—	25,585,840	10,663,088	$—	256	107	657	3,295,301	(2,260)	(74,039)	3,220,022

NELNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY
(Dollars in thousands, except share data)
(unaudited)
	Nelnet, Inc. Shareholders
Preferred stock shares · Common stock shares · Preferred stock · Class A common stock · Class B common stock · Additional paid-in capital · Retained earnings · Accumulated other comprehensive loss · Noncontrolling interests · Total equity
Class A · Class B
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
Issuance of noncontrolling interests	—	—	—	—	—	—	—	—	—	12,904	12,904
Net income (loss)	—	—	—	—	—	—	—	53,385	—	(13,957)	39,428
Other comprehensive income	—	—	—	—	—	—	—	—	15,908	—	15,908
Distribution to noncontrolling interests	—	—	—	—	—	—	—	—	—	(12,970)	(12,970)
Cash dividends on Class A and Class B common stock - $0.52 per share	—	—	—	—	—	—	—	(19,348)	—	—	(19,348)
Issuance of common stock, net of forfeitures	—	226,086	—	—	1	—	5,119	—	—	—	5,120
Compensation expense for stock based awards	—	—	—	—	—	—	7,653	—	—	—	7,653
Repurchase of common stock	—	(41,247)	—	—	—	—	(3,767)	—	—	—	(3,767)
Balance as of June 30, 2023	—	26,646,490	10,668,460	$—	266	107	10,114	3,261,717	(21,458)	(22,619)	3,228,127
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
Issuance of noncontrolling interests	—	—	—	—	—	—	—	—	—	8,151	8,151
Net income (loss)	—	—	—	—	—	—	—	118,498	—	(4,069)	114,429
Other comprehensive income	—	—	—	—	—	—	—	—	17,859	—	17,859
Distribution to noncontrolling interests	—	—	—	—	—	—	—	—	—	(26,570)	(26,570)
Cash dividends on Class A and Class B common stock - $0.56 per share	—	—	—	—	—	—	—	(20,528)	—	—	(20,528)
Issuance of common stock, net of forfeitures	—	69,914	—	—	1	—	3,297	—	—	—	3,298
Compensation expense for stock based awards	—	—	—	—	—	—	5,834	—	—	—	5,834
Repurchase of common stock	—	(884,704)	—	—	(9)	—	(11,570)	(70,732)	—	—	(82,311)
Acquisition of remaining 20% of GRNE Solar, net of tax	—	—	—	—	—	—	—	(2,340)	—	2,093	(247)
Balance as of June 30, 2024	—	25,585,840	10,663,088	$—	256	107	657	3,295,301	(2,260)	(74,039)	3,220,022

NELNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(unaudited)
	Six months ended
	June 30,
	2024	2023
Net income attributable to Nelnet, Inc.	$118,498	53,385
Net loss attributable to noncontrolling interests	(4,069)	(13,957)
Net income	114,429	39,428
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization, including debt discounts and loan premiums and deferred origination costs	69,623	93,573
Loan discount and deferred lender fees accretion	(22,538)	(15,412)
Provision for loan losses	14,440	791
Derivative market value adjustments	(9,497)	35,407
Proceeds from termination of derivative instruments	—	164,079
Proceeds from (payments to) clearinghouse - initial and variation margin, net	5,716	(209,886)
Loss on sale of loans	1,579	15,753
Loss on investments, net	6,985	49,834
Deferred income tax benefit	(4,814)	(16,613)
Non-cash compensation expense	6,004	7,810
Impairment expense and provision for beneficial interests	7,813	—
Decrease (increase) in loan and investment accrued interest receivable	150,907	(4,884)
Decrease in accounts receivable	36,329	59,142
Decrease (increase) in other assets, net	39,667	(11,480)
Decrease in the carrying amount of ROU asset, net	1,911	2,390
Decrease in accrued interest payable	(8,250)	(123)
Decrease in other liabilities	(62,638)	(8,916)
Decrease in the carrying amount of lease liability	(1,982)	(2,568)
Other	(365)	75
Net cash provided by operating activities	345,319	198,400
Cash flows from investing activities:
Purchases and originations of loans	(430,575)	(411,868)
Purchases of loans from a related party	—	(467,519)
Net proceeds from loan repayments, claims, and capitalized interest	2,125,052	1,348,827
Proceeds from sale of loans	311,010	290,957
Purchases of available-for-sale securities	(272,031)	(296,468)
Purchases of restricted available-for-sale securities	(23,288)	—
Proceeds from sales of available-for-sale securities	265,887	577,548
Proceeds from sales of restricted available-for-sale securities	660	—
Proceeds from beneficial interest in loan securitizations	19,513	13,237
Purchases of other investments and issuance of notes receivable	(197,440)	(140,129)
Proceeds from other investments and repayments of notes receivable	53,635	14,982
Purchases of held-to-maturity debt securities	—	(2,889)
Redemption of held-to-maturity debt securities	5,041	1,487
Purchases of property and equipment	(33,842)	(37,253)
Net cash provided by investing activities	$1,823,622	890,912

NELNET, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
	Six months ended
	June 30,
	2024	2023
Cash flows from financing activities:
Payments on bonds and notes payable	$(2,283,381)	(2,417,622)
Proceeds from issuance of bonds and notes payable	37	806,148
Payments of debt issuance costs	(693)	(2,214)
Increase in bank deposits, net	146,873	39,724
Decrease in due to customers	(36,642)	(48,728)
Dividends paid	(20,528)	(19,348)
Repurchases of common stock	(82,311)	(3,767)
Proceeds from issuance of common stock	967	890
Acquisition of noncontrolling interest	(325)	—
Issuance of noncontrolling interests	27,396	14,018
Distribution to noncontrolling interests	(2,335)	(1,920)
Net cash used in financing activities	(2,250,942)	(1,632,819)
Effect of exchange rate changes on cash and restricted cash	(87)	(84)
Net decrease in cash, cash equivalents, and restricted cash	(82,088)	(543,591)
Cash, cash equivalents, and restricted cash, beginning of period	1,025,491	1,357,616
Cash, cash equivalents, and restricted cash, end of period	$943,403	814,025

Supplemental disclosures of cash flow information:
Cash disbursements made for interest	$355,943	386,686
Cash disbursements made for income taxes, net of refunds and credits received (a)	$11,932	43,510
Cash disbursements made for operating leases	$2,451	3,476
Non-cash operating, investing, and financing activity:
ROU assets obtained in exchange for lease obligations	$49	18,485
Receipt of beneficial interest in consumer loan securitizations as consideration from sale of loans	$13,693	53,896
Receipt of asset-backed investment securities as consideration from sale of loans	$—	58,182
Transfer of available-for-sale securities to restricted	$8,262	—
Distribution to noncontrolling interests	$24,235	11,050
Issuance of noncontrolling interests	$19,245	1,114

(a)The Company utilized $20.3 million and $13.9 million of federal and state tax credits related primarily to renewable energy during the six months ended June 30, 2024 and 2023, respectively.

The following table presents a reconciliation of cash, cash equivalents, and restricted cash reported in the consolidated balance sheets to the total of the amounts reported in the consolidated statements of cash flows.

	As of	As of	As of	As of
	June 30, 2024	December 31, 2023	June 30, 2023	December 31, 2022
Total cash and cash equivalents	$145,478	168,112	121,769	118,146
Restricted cash	538,446	488,723	484,223	945,159
Restricted cash - due to customers	259,479	368,656	208,033	294,311
Cash, cash equivalents, and restricted cash	$943,403	1,025,491	814,025	1,357,616

NELNET, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Dollars in thousands, except per share amounts, unless otherwise noted)

(unaudited)

Basis of Financial Reporting

The accompanying unaudited consolidated financial statements of Nelnet, Inc. and subsidiaries (the “Company”) as of June 30, 2024 and for the three and six months ended June 30, 2024 and 2023 have been prepared on the same basis as the audited consolidated financial statements for the year ended December 31, 2023 and, in the opinion of the Company’s management, the unaudited consolidated financial statements reflect all adjustments, consisting of normal recurring adjustments, necessary for a fair presentation of results of operations for the interim periods presented. The preparation of financial statements in conformity with U.S. generally accepted accounting principles (GAAP) requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and six months ended June 30, 2024 are not necessarily indicative of the results for the year ending December 31, 2024. The unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 (the "2023 Annual Report").

Reclassifications and Immaterial Error Corrections

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 June 30, 2024 presentation.

Loan Sales

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. Prior period amounts have been corrected to conform to the current period presentation resulting in a reclassification of $21.0 million and $43.1 million for the three and six months ended June 30, 2023, respectively. This correction had no impact on previously reported consolidated assets, liabilities, total equity, net income, and cash flows from operating activities.

Solar Tax Equity Investments

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. 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. 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. 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 $2.2 million and $3.2 million for the three and six months ended June 30, 2023, respectively, partially offset by an increase in "net loss attributed to noncontrolling interests" of $1.0 million and $1.3 million for the three and six months ended June 30, 2023, respectively. The after-tax net income impact to Nelnet, Inc. was a reduction of $0.8 million and $1.4 million for the three and six months ended June 30, 2023, respectively. Consolidated "total equity" on the consolidated balance sheet was reduced $21.8 million as of December 31, 2023 and $16.7 million as of December 31, 2022, with the 2022 impact reflecting the cumulative impact of this correction through such date.

Loans and Accrued Interest Receivable and Allowance for Loan Losses

Loans and accrued interest receivable consisted of the following:

	As of	As of
	June 30, 2024	December 31, 2023
Non-Nelnet Bank:
Federally insured loans:
Stafford and other	$2,308,561	2,936,174
Consolidation	7,175,172	8,750,033
Total	9,483,733	11,686,207
Private education loans	247,437	277,320
Consumer and other loans	179,447	85,935
Non-Nelnet Bank loans	9,910,617	12,049,462
Nelnet Bank:
Private education loans	354,412	360,520
Consumer and other loans	187,939	72,352
Nelnet Bank loans	542,351	432,872
Accrued interest receivable	619,472	764,385
Loan discount and deferred lender fees, net of unamortized loan premiums and deferred origination costs	(36,157)	(33,872)
Allowance for loan losses:
Non-Nelnet Bank:
Federally insured loans	(54,180)	(68,453)
Private education loans	(13,065)	(15,750)
Consumer and other loans	(14,135)	(11,742)
Non-Nelnet Bank allowance for loan losses	(81,380)	(95,945)
Nelnet Bank:
Private education loans	(3,559)	(3,347)
Consumer and other loans	(11,825)	(5,351)
Nelnet Bank allowance for loan losses	(15,384)	(8,698)
	$10,939,519	13,108,204

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.

	As of	As of
	June 30, 2024	December 31, 2023
Non-Nelnet Bank:
Federally insured loans (a)	0.57%	0.59%
Private education loans	5.28%	5.68%
Consumer and other loans (b)	7.88%	13.66%
Nelnet Bank:
Private education loans	1.00%	0.93%
Consumer and other loans	6.29%	7.40%

(a) As of June 30, 2024 and December 31, 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 20.9% and 21.8%, respectively.

(b) Decrease as of June 30, 2024 compared with December 31, 2023 is due to the change in the mix of loans outstanding at the end of each period reported.

Loan Sales

During the three months ended June 30, 2024 and 2023, the Company sold $133.8 million and $158.3 million, respectively, of consumer loans, and recognized losses from such sales of $1.4 million and $5.5 million, respectively. During the six months ended June 30, 2024 and 2023, the Company sold $333.9 million and $420.2 million, respectively, of FFELP and consumer loans, and recognized losses from such sales of $1.6 million and $15.8 million, respectively. For certain of these loan sales, the Company has sold portfolios of loans to unrelated third parties who securitized such loans. As partial consideration received for the loans sold, the Company received residual interest in the loan securitizations and asset-backed investment securities 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.

	Balance at beginning of period	Provision (negative provision) for loan losses (a)	Charge-offs	Recoveries	Balance at end of period
	Three months ended June 30, 2024
Non-Nelnet Bank:
Federally insured loans	$61,723	(1,970)	(5,573)	—	54,180
Private education loans	14,736	—	(1,827)	156	13,065
Consumer and other loans	18,761	(2,255)	(2,634)	263	14,135
Nelnet Bank:
Private education loans	3,660	255	(460)	104	3,559
Consumer and other loans	7,128	7,519	(2,837)	15	11,825
	$106,008	3,549	(13,331)	538	96,764
	Three months ended June 30, 2023
Non-Nelnet Bank:
Federally insured loans	$79,331	—	(5,270)	—	74,061
Private education loans	15,175	—	(1,069)	216	14,322
Consumer and other loans	35,317	(12,873)	(2,880)	441	20,005
Nelnet Bank:
Federally insured loans	160	(4)	(2)	—	154
Private education loans	2,894	517	(506)	—	2,905
Consumer and other loans	1,827	989	—	—	2,816
	$134,704	(11,371)	(9,727)	657	114,263
	Six months ended June 30, 2024
Non-Nelnet Bank:
Federally insured loans	$68,453	(3,840)	(10,433)	—	54,180
Private education loans	15,750	(265)	(2,840)	420	13,065
Consumer and other loans	11,742	6,335	(4,586)	644	14,135
Nelnet Bank:
Private education loans	3,347	1,012	(906)	106	3,559
Consumer and other loans	5,351	11,236	(4,804)	42	11,825
	$104,643	14,478	(23,569)	1,212	96,764
	Six months ended June 30, 2023
Non-Nelnet Bank:
Federally insured loans	$83,593	2,411	(11,943)	—	74,061
Private education loans	15,411	240	(1,709)	380	14,322
Consumer and other loans	30,263	(5,770)	(5,149)	661	20,005
Nelnet Bank:
Federally insured loans	170	(12)	(4)	—	154
Private education loans	2,390	1,129	(614)	—	2,905
Consumer and other loans	—	2,816	—	—	2,816
	$131,827	814	(19,419)	1,041	114,263

(a) The following table presents the reduction to provision for loan losses as a result of the loan sales described under "Loan Sales" above.

	Provision for current period	Loan sale reduction to provision	Provision(negative provision) for loan losses
	Three months ended June 30, 2024
Non-Nelnet Bank
Consumer and other loans	$10,340	(12,595)	(2,255)
	Three months ended June 30, 2023
Non-Nelnet Bank
Consumer and other loans	$8,098	(20,971)	(12,873)
	Six months ended June 30, 2024
Non-Nelnet Bank
Consumer and other loans	$19,030	(12,695)	6,335
	Six months ended June 30, 2023
Non-Nelnet Bank
Consumer and other loans	$37,307	(43,077)	(5,770)

The following table summarizes annualized net charge-offs as a percentage of average loans for each of the Company's loan portfolios.

	Three months ended June 30,		Six months ended June 30,
	2024	2023	2024	2023
Non-Nelnet Bank:
Federally insured loans	0.22%	0.16%	0.19%	0.18%
Private education loans	2.64%	1.45%	1.85%	1.11%
Consumer and other loans	4.62%	4.07%	4.98%	3.22%
Nelnet Bank:
Federally insured loans	—	0.01%	—	0.01%
Private education loans	0.40%	0.57%	0.44%	0.35%
Consumer and other loans	7.44%	—	7.66%	—

The primary items impacting provision for loan losses during the periods presented above were the establishment of an initial allowance for consumer and other loans originated and acquired and the reversal of provision for consumer and other loans sold.

The Company recorded a negative provision for loan losses for its federally insured loan portfolio in 2024 due to the amortization of this portfolio and an increase in prepayment assumptions.

Unfunded Loan Commitments

As of June 30, 2024 and December 31, 2023, Nelnet Bank had a liability of approximately $119,000 and $158,000, respectively, related to $11.5 million and $12.3 million, respectively, of unfunded private education, consumer, and other loan commitments. 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. When the loan is funded, the Company transfers the liability to the allowance for loan losses. Below is a reconciliation of the provision for loan losses reported in the consolidated statements of income.

Three months ended · Six months ended
	June 30,		June 30,
	2024	2023	2024	2023
Provision for loan losses from allowance activity table above	$3,549	(11,371)	14,478	814
Provision (negative provision) for unfunded loan commitments	62	(9)	(38)	(23)
Provision (negative provision) for loan losses reported in consolidated statements of income	$3,611	(11,380)	14,440	791

Key Credit Quality Indicators

Loan Status and Delinquencies

Key credit quality indicators for the Company’s federally insured, private education, consumer, and other loan portfolios are loan status, including delinquencies. The impact of changes in loan status is incorporated into the allowance for loan losses calculation. Delinquencies have the potential to adversely impact the Company’s earnings through increased servicing and collection costs and account charge-offs. The following table presents the Company’s loan status and delinquency amounts.

As of June 30, 2024 · As of December 31, 2023 · As of June 30, 2023
Federally insured loans - Non-Nelnet Bank:
Loans in-school/grace/deferment	$440,891	4.6%			$522,304		4.5%				$612,357		4.8%
Loans in forbearance	702,539	7.4				979,588		8.4				930,629		7.3
Loans in repayment status:
Loans current	7,012,655		84.1%		8,416,624				82.6%		9,609,634			85.2%
Loans delinquent 31-60 days	339,262		4.1			377,108				3.7		496,953			4.4
Loans delinquent 61-90 days	234,746		2.8			254,553				2.5		360,728			3.2
Loans delinquent 91-120 days	151,447		1.8			187,145				1.9		157,685			1.4
Loans delinquent 121-270 days	377,660		4.5			685,829				6.7		457,100			4.1
Loans delinquent 271 days or greater	224,533		2.7			263,056				2.6		194,656			1.7
Total loans in repayment	8,340,303	88.0		100.0%		10,184,315		87.1			100.0%	11,276,756		87.9		100.0%
Total federally insured loans	9,483,733	100.0%			11,686,207		100.0%				12,819,742		100.0%
Accrued interest receivable	612,374				757,713						810,489
Loan discount, net of unamortized premiums and deferred origination costs	(24,222)				(28,963)						(33,764)
Allowance for loan losses	(54,180)				(68,453)						(74,061)
Total federally insured loans and accrued interest receivable, net of allowance for loan losses	$10,017,705				$12,346,504						$13,522,406
Private education loans - Non-Nelnet Bank:
Loans in-school/grace/deferment	$7,906	3.2%			$9,475		3.4%				$10,440		4.6%
Loans in forbearance	2,248	0.9				2,529		0.9				1,874		0.8
Loans in repayment status:
Loans current	230,512		97.1%		257,639				97.1%		212,522			97.6%
Loans delinquent 31-60 days	2,814		1.2			3,395				1.3		1,643			0.7
Loans delinquent 61-90 days	1,395		0.6			1,855				0.7		1,253			0.6
Loans delinquent 91 days or greater	2,562		1.1			2,427				0.9		2,324			1.1
Total loans in repayment	237,283	95.9		100.0%		265,316		95.7			100.0%	217,742		94.6		100.0%
Total private education loans	247,437	100.0%			277,320		100.0%				230,056		100.0%
Accrued interest receivable	2,407				2,653						2,196
Loan discount, net of unamortized premiums	(7,194)				(8,037)						183
Allowance for loan losses	(13,065)				(15,750)						(14,322)
Total private education loans and accrued interest receivable, net of allowance for loan losses	$229,585				$256,186						$218,113
Consumer and other loans - Non-Nelnet Bank:
Loans in deferment	$122	0.1%			$146		0.2%				$102		0.1%
Loans in repayment status:
Loans current	174,295		97.2%		81,195				94.6%		181,864			96.1%
Loans delinquent 31-60 days	2,100		1.2			2,035				2.4		2,794			1.5
Loans delinquent 61-90 days	1,857		1.0			1,189				1.4		2,533			1.3
Loans delinquent 91 days or greater	1,073		0.6			1,370				1.6		2,034			1.1
Total loans in repayment	179,325	99.9		100.0%		85,789		99.8			100.0%	189,225		99.9		100.0%
Total consumer and other loans	179,447	100.0%			85,935		100.0%				189,327		100.0%
Accrued interest receivable	763				861						2,246
Loan discount and deferred lender fees, net of unamortized premiums	(9,205)				(2,474)						750
Allowance for loan losses	(14,135)				(11,742)						(20,005)
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses	$156,870				$72,580						$172,318

As of June 30, 2024 · As of December 31, 2023 · As of June 30, 2023
Private education loans - Nelnet Bank (a):
Loans in-school/grace/deferment	$41,394	11.7%			$25,957		7.2%				$16,996		4.8%
Loans in forbearance	1,985	0.6				1,285		0.4				1,797		0.5
Loans in repayment status:
Loans current	308,591		99.2%		331,580				99.4%		332,205			99.6%
Loans delinquent 30-59 days	934		0.3			839				0.3		691			0.2
Loans delinquent 60-89 days	444		0.2			253				0.1		241			0.1
Loans delinquent 90 days or greater	1,064		0.3			606				0.2		389			0.1
Total loans in repayment	311,033	87.7		100.0%		333,278		92.4			100.0%	333,526		94.7		100.0%
Total private education loans	354,412	100.0%			360,520		100.0%				352,319		100.0%
Accrued interest receivable	2,709				2,023						1,591
Deferred origination costs, net of unaccreted discount	5,501				5,608						5,366
Allowance for loan losses	(3,559)				(3,347)						(2,905)
Total private education loans and accrued interest receivable, net of allowance for loan losses	$359,063				$364,804						$356,371
Consumer and other loans - Nelnet Bank (a):
Loans in deferment	$1,414	0.8%			$103		0.1%				$6		0.0%
Loans in repayment status:
Loans current	181,558		97.3%		69,584				96.3%		30,120			98.2%
Loans delinquent 30-59 days	1,516		0.8			1,075				1.5		277			0.9
Loans delinquent 60-89 days	1,814		1.0			941				1.3		205			0.7
Loans delinquent 90 days or greater	1,637		0.9			649				0.9		60			0.2
Total loans in repayment	186,525	99.2		100.0%		72,249		99.9			100.0%	30,662		100.0		100.0%
Total consumer and other loans	187,939	100.0%			72,352		100.0%				30,668		100.0%
Accrued interest receivable	1,219				575						214
Loan discount, net of unamortized premiums	(1,037)				(6)						—
Allowance for loan losses	(11,825)				(5,351)						(2,816)
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses	$176,296				$67,570						$28,066

(a) For the periods presented for Nelnet Bank, the delinquency bucket periods conform with the delinquency bucket periods reflected in Nelnet Bank's Call Reports filed with the Federal Deposit Insurance Corporation.

FICO Scores

An additional key credit quality indicator for Nelnet Bank private education and consumer loans is FICO scores at the time of origination. 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.

Nelnet Bank Private Education Loans

Loan balance as of June 30, 2024
Six months ended June 30, 2024 · 2023 · 2022 · 2021 · 2020 · Total
FICO at origination:
Less than 705	$451	3,957	5,200	4,413	374	14,395
705 - 734	950	9,658	20,984	8,167	513	40,272
735 - 764	1,149	9,307	31,511	13,673	1,318	56,958
765 - 794	860	6,543	49,268	25,720	1,286	83,677
Greater than 794	1,760	17,464	72,638	53,755	4,801	150,418
No FICO score available or required (a)	2,610	6,082	—	—	—	8,692
	$7,780	53,011	179,601	105,728	8,292	354,412

Loan balance as of December 31, 2023
2023 · 2022 · 2021 · 2020 · Total
FICO at origination:
Less than 705	$3,840	5,495	4,647	386	14,368
705 - 734	9,534	21,961	8,805	525	40,825
735 - 764	8,648	32,969	14,910	1,358	57,885
765 - 794	5,776	52,045	27,221	1,374	86,416
Greater than 794	15,057	77,996	58,695	5,226	156,974
No FICO score available or required (a)	4,052	—	—	—	4,052
	$46,907	190,466	114,278	8,869	360,520

Nelnet Bank Consumer and Other Loans

Loan balance as of June 30, 2024
Six months ended June 30, 2024 · 2023 · 2022 · 2021 · 2020 · Prior years · Total
FICO at origination:
Less than 720	$13,041	17,016	—	1,360	1,625	1,800	34,842
720 - 769	41,116	30,354	25	6,888	5,793	3,464	87,640
Greater than 769	35,957	19,243	106	4,899	2,262	1,062	63,529
No FICO score available or required (a)	1,153	440	281	54	—	—	1,928
	$91,267	67,053	412	13,201	9,680	6,326	187,939

Loan balance as of December 31, 2023
2023 · 2022 · 2021 · 2020 · Prior years · Total
FICO at origination:
Less than 720	$21,412	—	—	—	—	21,412
720 - 769	33,571	51	—	—	—	33,622
Greater than 769	16,484	109	—	—	—	16,593
No FICO score available or required (a)	386	284	55	—	—	725
	$71,853	444	55	—	—	72,352

(a) Loans with no FICO score available or required refers to loans issued to borrowers for which the Company cannot obtain a FICO score or are not required to under a special purpose credit program. Management proactively assesses the risk and size of this loan category and, when necessary, takes actions to mitigate the credit risk.

Nonaccrual Status

The Company does not place federally insured loans on nonaccrual status due to the government guaranty. 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 June 30, 2024 and December 31, 2023, was not material.

Amortized Cost Basis by Origination Year

The following table presents the amortized cost of the Company's private education, consumer, and other loans by loan status and delinquency amount as of June 30, 2024 based on year of origination. Effective July 1, 2010, no new loan originations can be made under the FFEL Program and all new federal loan originations must be made under the Federal Direct Loan Program. As such, all the Company’s federally insured loans were originated prior to July 1, 2010.

	Six months ended June 30, 2024	2023	2022	2021	2020	Prior years	Total
Private education loans - Non-Nelnet Bank:
Loans in-school/grace/deferment	$—	—	657	3,325	713	3,211	7,906
Loans in forbearance	—	—	356	140	429	1,323	2,248
Loans in repayment status:
Loans current	—	207	4,053	5,141	42,508	178,603	230,512
Loans delinquent 31-60 days	—	—	13	45	380	2,376	2,814
Loans delinquent 61-90 days	—	—	7	8	167	1,213	1,395
Loans delinquent 91 days or greater	—	—	—	7	115	2,440	2,562
Total loans in repayment	—	207	4,073	5,201	43,170	184,632	237,283
Total private education loans	$—	207	5,086	8,666	44,312	189,166	247,437
Accrued interest receivable					2,407
Loan discount, net of unamortized premiums					(7,194)
Allowance for loan losses					(13,065)
Total private education loans and accrued interest receivable, net of allowance for loan losses					$229,585
Gross charge-offs - six months ended June 30, 2024	$—	—	—	76	36	2,728	2,840
Consumer and other loans - Non-Nelnet Bank:
Loans in deferment	$—	122	—	—	—	—	122
Loans in repayment status:
Loans current	131,766	37,985	3,624	526	283	111	174,295
Loans delinquent 31-60 days	160	1,394	433	103	7	3	2,100
Loans delinquent 61-90 days	42	1,158	649	8	—	—	1,857
Loans delinquent 91 days or greater	14	852	176	14	17	—	1,073
Total loans in repayment	131,982	41,389	4,882	651	307	114	179,325
Total consumer and other loans	$131,982	41,511	4,882	651	307	114	179,447
Accrued interest receivable					763
Loan discount and deferred lender fees, net of unamortized premiums					(9,205)
Allowance for loan losses					(14,135)
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses					$156,870
Gross charge-offs - six months ended June 30, 2024	$—	2,611	1,678	213	23	61	4,586
Private education loans - Nelnet Bank (a):
Loans in-school/grace/deferment	$5,107	25,688	8,993	674	932	—	41,394
Loans in forbearance	24	149	1,274	430	108	—	1,985
Loans in repayment status:
Loans current	2,629	26,518	168,736	103,612	7,096	—	308,591
Loans delinquent 30-59 days	17	292	96	420	109	—	934
Loans delinquent 60-89 days	3	159	217	65	—	—	444
Loans delinquent 90 days or greater	—	205	285	527	47	—	1,064
Total loans in repayment	2,649	27,174	169,334	104,624	7,252	—	311,033
Total private education loans	$7,780	53,011	179,601	105,728	8,292	—	354,412
Accrued interest receivable					2,709
Deferred origination costs, net of unaccreted discount					5,501
Allowance for loan losses					(3,559)
Total private education loans and accrued interest receivable, net of allowance for loan losses					$359,063
Gross charge-offs - six months ended June 30, 2024	$—	324	348	234	—	—	906

	Six months ended June 30, 2024	2023	2022	2021	2020	Prior years	Total
Consumer and other loans - Nelnet Bank (a):
Loans in deferment	$1,308	106	—	—	—	—	1,414
Loans in repayment status:
Loans current	89,467	62,838	412	12,980	9,656	6,205	181,558
Loans delinquent 30-59 days	146	1,247	—	57	6	60	1,516
Loans delinquent 60-89 days	223	1,459	—	92	—	40	1,814
Loans delinquent 90 days or greater	123	1,403	—	72	18	21	1,637
Total loans in repayment	89,959	66,947	412	13,201	9,680	6,326	186,525
Total consumer and other loans	$91,267	67,053	412	13,201	9,680	6,326	187,939
Accrued interest receivable					1,219
Loan discount, net of unamortized premiums					(1,037)
Allowance for loan losses					(11,825)
Total consumer and other loans and accrued interest receivable, net of allowance for loan losses					$176,296
Gross charge-offs - six months ended June 30, 2024	$73	4,724	—	—	—	7	4,804

Bonds and Notes Payable

The following tables summarize the Company’s outstanding debt obligations by type of instrument:

	As of June 30, 2024
	Carryingamount	Interest raterange	Final maturity
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations:
Bonds and notes based on indices	$7,945,989	5.46% - 7.46%	8/26/30 - 9/25/69
Bonds and notes based on auction	75,735	0.00% - 6.45%	3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes	8,021,724
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations	389,462	1.42% - 3.45%	10/25/67 - 8/27/68
FFELP loan warehouse facilities	964,196	5.41% - 5.53%	7/15/25 / 4/1/26
Consumer loan warehouse facility	6,760	5.54%	11/14/25
Variable-rate bonds and notes issued in private education loan asset-backed securitizations	65,683	6.90% / 7.59%	6/25/49 / 11/25/53
Fixed-rate bonds and notes issued in private education loan asset-backed securitizations	63,203	5.35% / 7.15%	12/28/43 / 11/25/53
Unsecured line of credit	—	—	9/22/26
Participation agreements	7,728	5.58% - 6.08%	5/4/25 / 1/30/33
Repurchase agreement	111,189	6.44% - 6.75%	11/27/24 / 12/20/24
Other - due to related party	4,856	5.00%	11/15/28 - 11/15/30
Discount on bonds and notes payable and debt issuance costs	(67,093)
Total	$9,567,708

	As of December 31, 2023
	Carryingamount	Interest raterange	Final maturity
Variable-rate bonds and notes issued in FFELP loan asset-backed securitizations:
Bonds and notes based on indices	$9,552,667	5.45% - 7.47%	8/26/30 - 9/25/69
Bonds and notes based on auction	87,360	0.00% - 6.45%	3/22/32 - 11/26/46
Total FFELP variable-rate bonds and notes	9,640,027
Fixed-rate bonds and notes issued in FFELP loan asset-backed securitizations	471,427	1.42% - 3.45%	10/25/67 - 8/27/68
FFELP loan warehouse facilities	1,398,485	5.41% - 5.70%	4/2/25 / 5/22/25
Consumer loan warehouse facility	23,691	5.70%	11/14/25
Variable-rate bonds and notes issued in private education loan asset-backed securitizations	80,393	6.90% / 7.57%	6/25/49 / 11/25/53
Fixed-rate bonds and notes issued in private education loan asset-backed securitizations	80,130	5.35% / 7.15%	12/28/43 / 11/25/53
Unsecured line of credit	—	—	9/22/26
Participation agreements	10,063	5.58% - 6.08%	3/12/24 / 5/4/24
Repurchase agreement	208,164	6.35% - 6.81%	1/22/24 - 12/20/24
Other - due to related party	5,778	5.00% - 6.05%	3/1/24 - 11/15/30
Discount on bonds and notes payable and debt issuance costs	(89,765)
Total	$11,828,393

Warehouse Facilities

The Company funds a portion of its loan acquisitions using warehouse facilities. Loan warehousing allows the Company to buy and manage loans prior to transferring them into more permanent financing arrangements. The following table summarizes the Company's warehouse facilities as of June 30, 2024.

Type of loans	Maximum financing amount	Amount outstanding	Amount available	Expiration of liquidity provisions	Final maturity date	Advance rate	Advanced as equity support
FFELP (a)	$875,000	643,034	231,966	7/15/2024	7/15/2025	note (b)	$45,502
FFELP (c)	375,000	321,162	53,838	4/1/2025	4/1/2026	92%	26,539
	$1,250,000	964,196	285,804				$72,041
Consumer (d)	$150,000	6,760	143,240	11/14/2024	11/14/2025	70%	$1,781

(a) Effective March 6, 2024, the maximum financing amount on this facility was reduced from $1.25 billion to $950 million. On May 17, 2024, this facility was amended to reduce the maximum financing amount from $950 million to $875 million, and to extend the expiration of liquidity provisions and final maturity date to July 15, 2024 and July 15, 2025, respectively. On July 15, 2024, this facility was amended to reduce the maximum financing amount from $875 million to $800 million, and to extend the expiration of liquidity provisions and final maturity date to January 31, 2025 and January 31, 2026, respectively.

(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%. In the event the liquidity provisions are not extended, the valuation agent has the right to perform a one-time mark to market on the underlying loans funded in this facility, subject to a floor. The loans would then be funded at this new advance rate until the final maturity date of the facility.

(c) On April 2, 2024, this facility was amended to reduce the maximum financing amount from $432 million to $375 million, and to extend the expiration of liquidity provisions and final maturity date to April 1, 2025 and April 1, 2026, respectively.

(d) On March 11, 2024, this facility was amended to reduce the maximum financing amount from $200 million to $150 million.

Unsecured Line of Credit

The Company has a $495.0 million unsecured line of credit that has a maturity date of September 22, 2026. As of June 30, 2024, no amount was outstanding on the line of credit and $495.0 million was available for future use.

Repurchase Agreement

The Company has a repurchase agreement with a non-affiliated third party, the proceeds of which are collateralized by certain private education loan asset-backed securities (bond investments). The outstanding balance under this agreement as of June 30, 2024 was $111.2 million. 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. See note 6 for additional information about the private education loan asset-backed securities investments serving as collateral for this repurchase agreement.

Debt Repurchases

The Company has repurchased certain of its own asset-backed securities (bonds and notes payable) in the secondary market. For accounting purposes, these notes are eliminated in consolidation and are not included in the Company's consolidated financial statements. 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. 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. As of June 30, 2024, the Company holds $311.7 million (par value) of its own FFELP asset-backed securities.

In April 2023, the Company redeemed $188.6 million of FFELP loan asset-backed debt securities (bonds and notes payable) prior to their maturity. 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 April 2023. This expense is included in "interest expense on bonds and notes payable and bank deposits" on the consolidated statements of income.

Derivative Financial Instruments

Non-Nelnet Bank Derivatives

The Company uses settled-to-market derivative financial instruments to manage interest rate risk. Derivative instruments used as part of the Company's interest rate risk management strategy are further described in note 5 of the notes to consolidated financial statements included in the 2023 Annual Report. A tabular presentation of such derivatives outstanding as of June 30, 2024 and December 31, 2023 is presented below.

Basis Swaps

The following table summarizes the Company’s outstanding basis swaps, in which the Company receives and pays the term adjusted Secured Overnight Financing Rate (SOFR) plus the tenor spread adjustment to LIBOR. 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").

Maturity · Notional amount
As of · As of
June 30, 2024 · December 31, 2023
2024	$—	1,750,000
2026	1,150,000	1,150,000
2027	250,000	250,000
	$1,400,000	3,150,000

The weighted average rate paid by the Company on the 1:3 Basis Swaps as of June 30, 2024 and December 31, 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

The following table summarizes the outstanding derivative instruments used by the Company as of June 30, 2024 and December 31, 2023 to economically hedge loans earning fixed rate floor income.

Maturity	Notional amount	Weighted average fixed rate paid by the Company (a)
2026	$200,000	3.92%
2028	50,000	3.56
2029 (b)	50,000	3.17
2030 (c)	100,000	3.63
	$400,000	3.71%

(a) For all interest rate derivatives, the Company receives payments based on SOFR, the majority of which reset quarterly.

(b) This $50 million notional amount derivative has a forward effective start date in January 2026.

During the first quarter of 2023, the Company received $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.

Nelnet Bank Derivatives

Interest Rate Swaps

The following table summarizes the outstanding non-centrally cleared derivative instruments used by Nelnet Bank as of June 30, 2024 and December 31, 2023 to hedge exposure to variability in cash flows related to variable rate intercompany deposits.

Maturity	Notional amount	Weighted average fixed rate paid by the Company (a)
2028	$40,000	3.33%
2030 (b)	50,000	3.06
2032 (c)	25,000	4.03
2033 (d)	25,000	3.90
	$140,000	3.46%

(a) For all interest rate derivatives, the Company receives payments based on SOFR that reset monthly or quarterly.

(b) These $25 million notional amount derivatives have forward effective start dates in April 2026 and May 2026, respectively.

(d) This $25 million notional amount derivative has a forward effective start date in November 2025.

Consolidated Financial Statement Impact Related to Derivatives

Balance Sheets

Unlike the Company's Non-Nelnet Bank derivatives, Nelnet Bank's derivatives are not cleared post-execution at a regulated clearinghouse. 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. The following table summarizes the fair value of the Company's Nelnet Bank derivatives as reflected in the consolidated balance sheets.

	Fair value of asset derivatives		Fair value of liability derivatives
	As of June 30, 2024	As of December 31, 2023	As of June 30, 2024	As of December 31, 2023
Interest rate swaps - Nelnet Bank	$2,112	452	780	1,976

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.

	Three months ended June 30,		Six months ended June 30,
	2024	2023	2024	2023
Settlements:
1:3 basis swaps	$249	(65)	614	794
Interest rate swaps - floor income hedges	1,193	47	2,383	22,525
Interest rate swaps - Nelnet Bank	207	83	409	83
Total settlements - income	1,649	65	3,406	23,402
Change in fair value:
1:3 basis swaps	(232)	235	(586)	211
Interest rate swaps - floor income hedges	1,168	662	7,228	(36,726)
Interest rate swaps - Nelnet Bank	597	1,108	2,855	1,108
Total change in fair value - income (expense)	1,533	2,005	9,497	(35,407)
Derivative market value adjustments and derivative settlements, net - income (expense)	$3,182	2,070	12,903	(12,005)

Investments and Notes Receivable

"Restricted investments" and “investments and notes receivable” consisted of the following:

	As of June 30, 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
Restricted available-for-sale investments (at fair value):
FFELP loan and other debt securities	$47,968	2,473	(83)	50,358	16,993	1,069	(93)	17,969
Non-restricted available-for-sale investments (at fair value):
Non-Nelnet Bank:
FFELP loan	$220,076	6,910	(1,450)	225,536	271,479	4,883	(5,393)	270,969
Private education loan (a)	258,390	—	(22,442)	235,948	281,791	—	(28,874)	252,917
Other debt securities	33,673	2,042	—	35,715	41,693	2,020	(1,275)	42,438
Total Non-Nelnet Bank	512,139	8,952	(23,892)	497,199	594,963	6,903	(35,542)	566,324
Nelnet Bank:
FFELP loan (b)	227,124	8,090	(1,350)	233,864	304,555	4,488	(2,286)	306,757
Private education loan	—	—	—	—	17,083	20	(10)	17,093
Other debt securities	158,609	917	(1,418)	158,108	49,284	117	(1,641)	47,760
Total Nelnet Bank	385,733	9,007	(2,768)	391,972	370,922	4,625	(3,937)	371,610
Total available-for-sale asset-backed securities	$897,872	17,959	(26,660)	889,171	965,885	11,528	(39,479)	937,934
Equity securities			59,621			50,907
Total investments at fair value			948,792			988,841
Other Investments and Notes Receivable (not measured at fair value):
Held-to-maturity investments
Non-Nelnet Bank:
Debt securities			3,500			4,700
Nelnet Bank:
FFELP loan asset-backed securities (b)			217,283			149,938
Private education loan asset-backed securities			8,100			8,100
Total Nelnet Bank			225,383			158,038
Total held-to-maturity investments			228,883			162,738
Venture capital and funds:
Measurement alternative			196,803			194,084
Equity method			114,800			91,464
Total venture capital and funds			311,603			285,548
Real estate:
Equity method			125,989			103,811
Investment in ALLO:
Voting interest/equity method (c)			—			10,693
Preferred membership interest and accrued and unpaid preferred return (d)			176,092			155,047
Total investment in ALLO			176,092			165,740
Beneficial interest in loan securitizations (e):
Consumer loans, net of allowance for credit losses of $5,911 as of June 30, 2024			163,853			134,113
Private education loans			59,326			68,372
Federally insured student loans			20,790			22,594
Total beneficial interest in loan securitizations			243,969			225,079
Solar (f)			(176,105)			(146,040)
Notes receivable			28,565			53,747
Tax liens, affordable housing, and other			8,645			7,243
Total investments (not measured at fair value)			947,641			857,866
Total investments and notes receivable			$1,896,433			$1,846,707

(a) A portion of the private education loan asset-backed securities were subject to a repurchase agreement with a third party, as discussed in note 4 under "Repurchase Agreement." As of June 30, 2024, the par value and fair value of these securities was $148.1 million and $130.7 million, respectively.

(b) 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. Accumulated other comprehensive income as of May 22, 2024 included pre-tax unrealized gains of $3.4 million related to the transfer. These unrealized gains will be amortized, consistent with the amortization of any premiums on such securities, over the remaining lives of the respective securities as an adjustment of yield.

(c) The Company accounts for its voting membership interests in ALLO under the Hypothetical Liquidation at Book Value (HLBV) method of accounting. Under the HLBV method of accounting on its ALLO voting membership interests investment, the Company recognizedno losses and $12.2 million of losses during the three months ended June 30, 2024 and 2023, respectively, and losses of $10.7 million and $32.4 million during the six months ended June 30, 2024 and 2023, respectively. Losses from the Company's investment in ALLO are included in "other, net" in "other income (expense)" on the consolidated statements of income. 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.

(d) As of June 30, 2024, the outstanding preferred membership interests and accrued and unpaid preferred return of ALLO held by the Company was $169.5 million and $6.6 million, respectively. 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. During the second quarter of 2024, the Company purchased an additional $14.5 million of preferred membership interests of ALLO, which earn a preferred annual return of 20.0%. The Company recognized income on its ALLO preferred membership interests of $4.2 million and $2.3 million during the three months ended June 30, 2024 and 2023, respectively, and $6.6 million and $4.5 million during the six months ended June 30, 2024 and 2023, respectively. This income is included in "other, net" in "other income (expense)" on the consolidated statements of income.

(e) The Company has partial ownership in certain consumer, private education, and federally insured student loan securitizations. As of the latest remittance reports filed by the various trusts prior to or as of June 30, 2024, the Company's ownership correlates to approximately $1.12 billion, $500 million, and $315 million of consumer, private education, and federally insured student loans, respectively, included in these securitizations.

During the three months ended June 30, 2024, the Company recorded a $5.9 million allowance for credit losses (and related provision expense) related to certain of the Company's beneficial interest in consumer loan securitizations. As of June 30, 2024, the Company's estimate of future cash flows from the beneficial interest in certain consumer loan securitizations was lower than previously anticipated due to increased consumer loan defaults within such securitizations.

(f) As of June 30, 2024, the Company has funded a total of $502.8 million in solar investments that remain outstanding, which includes $219.8 million funded by syndication partners. 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. As of June 30, 2024, the Company has earned a total of $474.4 million of tax credits on those projects that remain outstanding, which includes $218.4 million earned by syndication partners. The solar investment negative carrying value on the consolidated balance sheet of $176.1 million as of June 30, 2024 represents the sum of total tax credits earned on solar projects placed-in-service through June 30, 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. The solar investment negative carrying value as of June 30, 2024 excluding the portion owned by syndication partners, which is reflected as "noncontrolling interests" on the consolidated balance sheet, was $84.0 million.

The Company accounts for its solar investments using the HLBV method of accounting. For the majority of the Company’s solar investments, the HLBV method of accounting results in accelerated losses in the initial years of investment. The following table presents (i) the Company's recognized net (losses) gains, 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 gains (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) gains excluding net gains (losses) attributed to noncontrolling interest investors (such amount reflecting the before tax net income impact of such solar tax equity investments to the Company).

	Three months ended June 30,		Six months ended June 30,
	2024	2023	2024	2023
Net (losses) gains	$(2,610)	(10,086)	170	(13,030)
Less: net gains (losses) attributed to noncontrolling interest investors (syndication partners)	8	(8,430)	(1,633)	(11,428)
Net (losses) gains, excluding activity attributed to noncontrolling interest investors	$(2,618)	(1,656)	1,803	(1,602)

As of June 30, 2024, the Company is committed to fund an additional $125.7 million on solar investments, of which $83.0 million is expected to be provided by syndication partners.

The following table presents, by remaining contractual maturity, the amortized cost and fair value of debt securities as of June 30, 2024:

	As of June 30, 2024
	1 year or less	After 1 year through 5 years	After 5 years through 10 years	After 10 years	Total
Available-for-sale asset-backed securities
Restricted Investments:
FFELP loan and other debt securities	$—	9,263	4,015	34,690	47,968
Fair value	—	9,295	4,049	37,014	50,358
Non-Nelnet Bank:
FFELP loan	—	4,285	13,866	201,925	220,076
Private education loan	—	—	—	258,390	258,390
Other debt securities	—	100	4,000	29,573	33,673
Total Non-Nelnet Bank	—	4,385	17,866	489,888	512,139
Fair value	—	4,428	17,748	475,023	497,199
Nelnet Bank:
FFELP loan	53,474	21,141	23,908	128,601	227,124
Other debt securities	—	33,107	16,374	109,128	158,609
Total Nelnet Bank	53,474	54,248	40,282	237,729	385,733
Fair value	54,336	54,254	40,457	242,925	391,972
Total available-for-sale asset-backed securities at amortized cost	$53,474	67,896	62,163	762,307	945,840
Total available-for-sale asset-backed securities at fair value	$54,336	67,977	62,254	754,962	939,529
Held-to-maturity investments
Non-Nelnet Bank:
Debt securities	$3,500	—	—	—	3,500
Fair value	3,500	—	—	—	3,500
Nelnet Bank:
FFELP loan asset-backed securities	—	3,041	1,278	212,964	217,283
Private education loan asset-backed securities	—	—	—	8,100	8,100
Total Nelnet Bank	—	3,041	1,278	221,064	225,383
Fair value	—	3,129	1,304	226,330	230,763
Total held-to-maturity investments at amortized cost	$3,500	3,041	1,278	221,064	228,883
Total held-to-maturity investments at fair value	$3,500	3,129	1,304	226,330	234,263
Beneficial interest in loan securitizations (a):
Amortized cost	$—	—	—	—	243,969
Fair value	$—	—	—	—	261,850

(a) The Company's beneficial interest in loan securitizations are not due at a single maturity date.

The following table summarizes the unrealized positions for held-to-maturity investments and the beneficial interest in loan securitizations as of June 30, 2024:

	Carrying value	Gross unrealized gains	Gross unrealized losses (a)	Fair value
Asset-backed and other securities	$228,883	5,380	—	234,263
Beneficial interest in loan securitizations	243,969	20,512	(2,631)	261,850

(a)None of the unrealized losses presented in the above table at June 30, 2024 were due to credit losses.

The following table presents securities classified as available-for-sale that have gross unrealized losses at June 30, 2024 and the fair value of such securities as of June 30, 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. All securities in the table below have been evaluated to determine if a credit loss exists. As part of that assessment, the Company concluded it currently has the intent and ability to retain these investments, andnone of the unrealized losses were due to credit losses.

	As of June 30, 2024
	Unrealized loss position less than 12 months		Unrealized loss position 12 months or more		Total
	Unrealized loss	Fair value	Unrealized loss	Fair value	Unrealized loss	Fair value
Available-for-sale asset-backed securities
Restricted Investments:
FFELP loan and other debt securities	$(83)	8,167	—	—	(83)	8,167
Non-Nelnet Bank:
FFELP loan	(7)	3,494	(1,443)	79,320	(1,450)	82,814
Private education loan	—	—	(22,442)	235,948	(22,442)	235,948
Total Non-Nelnet Bank	(7)	3,494	(23,885)	315,268	(23,892)	318,762
Nelnet Bank:
FFELP loan	(35)	9,694	(1,315)	34,871	(1,350)	44,565
Other debt securities	(42)	13,098	(1,376)	16,598	(1,418)	29,696
Total Nelnet Bank	(77)	22,792	(2,691)	51,469	(2,768)	74,261
Total available-for-sale asset-backed securities	$(167)	34,453	(26,576)	366,737	(26,743)	401,190

The following table summarizes the gross proceeds received and gross realized gains and losses related to sales of available-for-sale asset-backed securities.

Three months ended · Six months ended
	June 30,		June 30,
	2024	2023	2024	2023
Gross proceeds from sales	$113,173	85,375	266,547	577,548
Gross realized gains	$1,516	920	2,571	2,194
Gross realized losses	(463)	(2)	(966)	(6,258)
Net gains (losses)	$1,053	918	1,605	(4,064)

Intangible Assets

Intangible assets consisted of the following:

Weighted average remaining useful life as ofJune 30, 2024 (months)
As of · As of
June 30, 2024 · December 31, 2023
Amortizable intangible assets, net:
Customer relationships (net of accumulated amortization of $50,661 and $46,573, respectively)	100	$38,943	43,031
Trade names (net of accumulated amortization of $167 and $8,268, respectively)	94	603	642
Computer software (net of accumulated amortization of $745 and $574, respectively)	34	975	1,146
Total amortizable intangible assets, net	98	$40,521	44,819

The Company recorded amortization expense on its intangible assets of $2.1 million and $3.5 million for the three months ended June 30, 2024 and 2023, respectively, and $4.3 million and $6.2 million during the six months ended June 30, 2024 and 2023, respectively. The Company will continue to amortize intangible assets over their remaining useful lives. As of June 30, 2024, the Company estimates it will record amortization expense as follows:

2024 (July 1 - December 31)	$4,193
2025	6,099
2026	6,012
2027	5,714
2028	5,354
2029 and thereafter	13,149
	$40,521

Goodwill

The following table presents the carrying amount of goodwill as of June 30, 2024 and December 31, 2023 by reportable operating segment:

	Nelnet Financial Services
	Loan Servicing and Systems	Education Technology Services and Payments	AssetGeneration andManagement	Nelnet Bank	NFS Other Operating Segments	Corporate and Other Activities	Total
Total goodwill	$23,639	92,507	41,883	—	—	—	158,029

Impairment Expense, Provision for Beneficial Interests, and Restructure Charges

Impairment Expense and Provision for Beneficial Interests

The following table presents the non-cash impairment charges by asset and reportable operating segment recognized by the Company during 2024. No impairment charges were recognized during the first six months of 2023. The Company’s impairment charges are included in “impairment expense and provision for beneficial interests” in the consolidated statements of income.

	Nelnet Financial Services
	Loan Servicing and Systems	Education Technology Services and Payments	AssetGeneration andManagement	Nelnet Bank	NFS Other Operating Segments	Corporate and Other Activities	Total
	Three months ended June 30, 2024
Investments - beneficial interest in consumer loan securitizations (a)	$—	—	5,911	—	—	—	5,911
Property and equipment - solar facilities (b)	—	—	—	—	—	1,170	1,170
Other assets - solar inventory (b)	—	—	—	—	—	695	695
	$—	—	5,911	—	—	1,865	7,776
	Six months ended June 30, 2024
Investments - beneficial interest in consumer loan securitizations (a)	$—	—	5,911	—	—	—	5,911
Investments - venture capital	—	—	—	—	—	37	37
Property and equipment - solar facilities (b)	—	—	—	—	—	1,170	1,170
Other assets - solar inventory (b)	—	—	—	—	—	695	695
	$—	—	5,911	—	—	1,902	7,813

(a) During the three months ended June 30, 2024, the Company recorded an allowance for credit losses (and related provision expense) related to the Company's beneficial interest in consumer loan securitizations. See note 6 for additional information.

(b) On April 12, 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. As a result, during the three months ended June 30, 2024, the Company recognized non-cash impairment charges on certain solar facilities and inventory related to the residential solar operations.

Restructure Charges

GRNE Solar

On April 12, 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. The restructuring plan included a reduction in headcount of approximately 40 associates. 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.

Loan Servicing and Systems (LSS)

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. Approximately 220 associates who work in LSS, including some in related shared services that support LSS, were notified their positions were being eliminated. The Company estimates incurring a charge of $7.1 million related to these staff reductions, of which $2.1 million was recognized in the second quarter of 2024, which is included in "salaries and benefits" in the consolidated statements of income. The remaining expense will be recognized during the third and fourth quarters of 2024.

Bank Deposits

The following table summarizes Nelnet Bank’s interest-bearing deposits, excluding intercompany deposits:

	As of	As of
	June 30, 2024	December 31, 2023
Retail and other savings	$622,080	520,017
Brokered CDs, net of brokered deposit fees	246,156	203,522
Retail and other CDs, net of issuance fees	22,236	20,060
Total interest-bearing deposits	$890,472	743,599

As of June 30, 2024 and December 31, 2023, Nelnet Bank had intercompany deposits from Nelnet, Inc. and its subsidiaries totaling $143.0 million and $104.0 million, respectively, including a $40.0 million pledged deposit from Nelnet, Inc. as required under a Capital and Liquidity Maintenance Agreement with the FDIC. All intercompany deposits held at Nelnet Bank are eliminated for consolidated financial reporting purposes.

The following table presents certificates of deposit remaining maturities as of June 30, 2024:

One year or less	$982
After one year to two years	149,045
After two years to three years	75,172
After three years to four years	348
After four years to five years	42,845
After five years	—
Total	$268,392

Retail and other savings deposits include deposits from Educational 529 College Savings and Health Savings plans, Short Term Federal Investment Trust (STFIT), and consumer savings. These deposits are large interest-bearing omnibus accounts structured to allow FDIC insurance to flow through to underlying individual depositors. The deposits exceeding the FDIC insurance limits as of June 30, 2024, was $44.9 million, which includes a portion of the pledged deposit from Nelnet, Inc., and an earmarked deposit required for intercompany transactions.

Earnings per Common Share

The following table presents the components used to calculate basic and diluted earnings per share. The Company applies the two-class method in computing both basic and diluted earnings per share, which requires the calculation of separate earnings per share amounts for common stock and unvested share-based awards. Unvested share-based awards that contain nonforfeitable rights to dividends are considered securities which participate in undistributed earnings with common stock.

	Three months ended June 30,
	2024			2023
	Common shareholders	Unvested restricted stock shareholders	Total	Common shareholders	Unvested restricted stock shareholders	Total
Numerator:
Net income attributable to Nelnet, Inc.	$44,239	852	45,091	26,842	584	27,426
Denominator:
Weighted-average common shares outstanding - basic and diluted	35,835,387	690,095	36,525,482	36,670,933	797,464	37,468,397
Earnings per share - basic and diluted	$1.23	1.23	1.23	0.73	0.73	0.73
	Six months ended June 30,
	2024			2023
	Common shareholders	Unvested restricted stock shareholders	Total	Common shareholders	Unvested restricted stock shareholders	Total
Numerator:
Net income attributable to Nelnet, Inc.	$116,178	2,320	118,498	52,270	1,115	53,385
Denominator:
Weighted-average common shares outstanding - basic and diluted	36,119,876	721,351	36,841,227	36,625,819	781,024	37,406,843
Earnings per share - basic and diluted	$3.22	3.22	3.22	1.43	1.43	1.43

Segment Reporting

See note 16 of the notes to consolidated financial statements included in the 2023 Annual Report for a description of the Company's operating segments. The following tables present the results of each of the Company's reportable operating segments reconciled to the consolidated financial statements.

	Three months ended June 30, 2024
	Nelnet Financial Services
	Loan Servicing and Systems	Education Technology Services and Payments	AssetGeneration andManagement	Nelnet Bank	NFS Other Operating Segments	Corporate and Other Activities	Eliminations	Total
Interest income:
Loan interest	$—	—	193,707	8,422	—	—	—	202,129
Investment interest	1,258	5,715	13,709	10,811	15,880	2,646	(9,282)	40,737
Total interest income	1,258	5,715	207,416	19,233	15,880	2,646	(9,282)	242,866
Interest expense	—	—	171,632	10,769	2,606	733	(9,282)	176,459
Net interest income	1,258	5,715	35,784	8,464	13,274	1,913	—	66,407
Less provision (negative provision) for loan losses	—	—	(4,225)	7,836	—	—	—	3,611
Net interest income after provision for loan losses	1,258	5,715	40,009	628	13,274	1,913	—	62,796
Other income (expense):
Loan servicing and systems revenue	109,052	—	—	—	—	—	—	109,052
Intersegment revenue	6,106	56	—	—	—	—	(6,162)	—
Education technology services and payments revenue	—	116,909	—	—	—	—	—	116,909
Solar construction revenue	—	—	—	—	—	9,694	—	9,694
Other, net	685	—	1,337	775	15,702	10,372	—	28,871
Loss on sale of loans	—	—	(1,438)	—	—	—	—	(1,438)
Impairment expense and provision for beneficial interests	—	—	(5,911)	—	—	(1,865)	—	(7,776)
Derivative settlements, net	—	—	1,442	207	—	—	—	1,649
Derivative market value adjustments, net	—	—	936	597	—	—	—	1,533
Total other income (expense), net	115,843	116,965	(3,634)	1,579	15,702	18,201	(6,162)	258,494
Cost of services:
Cost to provide education technology services and payments	—	40,222	—	—	—	—	—	40,222
Cost to provide solar construction services	—	—	—	—	—	8,072	—	8,072
Total cost of services	—	40,222	—	—	—	8,072	—	48,294
Operating expenses:
Salaries and benefits	70,631	40,736	1,113	2,798	374	24,786	(804)	139,634
Depreciation and amortization	5,342	2,712	—	341	—	6,748	—	15,142
Other expenses	20,661	8,600	3,793	2,067	11,829	12,842	—	59,792
Intersegment expenses, net	18,224	4,811	7,159	719	248	(25,803)	(5,358)	—
Total operating expenses	114,858	56,859	12,065	5,925	12,451	18,573	(6,162)	214,568
Income (loss) before income taxes	2,243	25,599	24,310	(3,718)	16,525	(6,531)	—	58,428
Income tax (expense) benefit	(538)	(6,150)	(5,835)	916	(3,935)	788	—	(14,753)
Net income (loss)	1,705	19,449	18,475	(2,802)	12,590	(5,743)	—	43,675
Net loss (income) attributable to noncontrolling interests	—	29	—	—	(129)	1,516	—	1,416
Net income (loss) attributable to Nelnet, Inc.	$1,705	19,478	18,475	(2,802)	12,461	(4,227)	—	45,091
Total assets as of June 30, 2024	$264,381	478,077	11,315,210	1,185,302	1,038,068	778,549	(558,394)	14,501,193

	Three months ended June 30, 2023
	Nelnet Financial Services
	Loan Servicing and Systems	Education Technology Services and Payments	AssetGeneration andManagement	Nelnet Bank	NFS Other Operating Segments	Corporate and Other Activities	Eliminations	Total
Interest income:
Loan interest	$—	—	237,906	5,139	—	—	—	243,045
Investment interest	1,058	5,268	15,857	8,522	22,800	3,055	(15,578)	40,982
Total interest income	1,058	5,268	253,763	13,661	22,800	3,055	(15,578)	284,027
Interest expense	—	—	232,313	8,171	7,371	871	(15,578)	233,148
Net interest income	1,058	5,268	21,450	5,490	15,429	2,184	—	50,879
Less provision (negative provision) for loan losses	—	—	(12,873)	1,493	—	—	—	(11,380)
Net interest income after provision for loan losses	1,058	5,268	34,323	3,997	15,429	2,184	—	62,259
Other income (expense):
Loan servicing and systems revenue	122,020	—	—	—	—	—	—	122,020
Intersegment revenue	7,246	65	—	—	—	—	(7,311)	—
Education technology services and payments revenue	—	109,858	—	—	—	—	—	109,858
Solar construction revenue	—	—	—	—	—	4,735	—	4,735
Other, net	605	—	1,319	620	5,967	(17,677)	—	(9,167)
Loss on sale of loans	—	—	(5,461)	—	—	—	—	(5,461)
Impairment expense and provision for beneficial interests	—	—	—	—	—	—	—	—
Derivative settlements, net	—	—	(18)	83	—	—	—	65
Derivative market value adjustments, net	—	—	897	1,108	—	—	—	2,005
Total other income (expense), net	129,871	109,923	(3,263)	1,811	5,967	(12,942)	(7,311)	224,055
Cost of services:
Cost to provide education technology services and payments	—	40,407	—	—	—	—	—	40,407
Cost to provide solar construction services	—	—	—	—	—	9,122	—	9,122
Total cost of services	—	40,407	—	—	—	9,122	—	49,529
Operating expenses:
Salaries and benefits	76,141	38,351	1,096	2,297	210	26,756	(145)	144,706
Depreciation and amortization	4,863	2,815	—	51	—	10,923	—	18,652
Other expenses	13,818	9,692	4,115	1,624	4,134	12,613	—	45,997
Intersegment expenses, net	19,079	5,884	8,145	92	127	(26,161)	(7,166)	—
Total operating expenses	113,901	56,742	13,356	4,064	4,471	24,131	(7,311)	209,355
Income (loss) before income taxes	17,028	18,042	17,704	1,744	16,925	(44,011)	—	27,430
Income tax (expense) benefit	(4,086)	(4,327)	(4,249)	(396)	(4,031)	6,902	—	(10,187)
Net income (loss)	12,942	13,715	13,455	1,348	12,894	(37,109)	—	17,243
Net loss (income) attributable to noncontrolling interests	—	(19)	—	—	(128)	10,330	—	10,183
Net income (loss) attributable to Nelnet, Inc.	$12,942	13,696	13,455	1,348	12,766	(26,779)	—	27,426
Total assets as of June 30, 2023	$173,926	482,922	14,667,357	1,005,043	1,099,212	970,987	(613,757)	17,785,690

	Six months ended June 30, 2024
	Nelnet Financial Services
	Loan Servicing and Systems	Education Technology Services and Payments	AssetGeneration andManagement	Nelnet Bank	NFS Other Operating Segments	Corporate and Other Activities	Eliminations	Total
Interest income:
Loan interest	$—	—	403,335	15,518	—	—	—	418,853
Investment interest	3,152	13,580	35,544	20,779	31,495	6,461	(18,197)	92,814
Total interest income	3,152	13,580	438,879	36,297	31,495	6,461	(18,197)	511,667
Interest expense	—	—	362,537	20,266	5,024	1,409	(18,197)	371,039
Net interest income	3,152	13,580	76,342	16,031	26,471	5,052	—	140,628
Less provision (negative provision) for loan losses	—	—	2,230	12,210	—	—	—	14,440
Net interest income after provision for loan losses	3,152	13,580	74,112	3,821	26,471	5,052	—	126,188
Other income (expense):
Loan servicing and systems revenue	236,252	—	—	—	—	—	—	236,252
Intersegment revenue	12,991	106	—	—	—	—	(13,097)	—
Education technology services and payments revenue	—	260,449	—	—	—	—	—	260,449
Solar construction revenue	—	—	—	—	—	23,420	—	23,420
Other, net	1,395	—	6,321	1,150	28,644	8,224	—	45,734
Loss on sale of loans	—	—	(1,579)	—	—	—	—	(1,579)
Impairment expense and provision for beneficial interests	—	—	(5,911)	—	—	(1,902)	—	(7,813)
Derivative settlements, net	—	—	2,997	409	—	—	—	3,406
Derivative market value adjustments, net	—	—	6,642	2,855	—	—	—	9,497
Total other income (expense), net	250,638	260,555	8,470	4,414	28,644	29,742	(13,097)	569,366
Cost of services:
Cost to provide education technology services and payments	—	88,832	—	—	—	—	—	88,832
Cost to provide solar construction services	—	—	—	—	—	22,300	—	22,300
Total cost of services	—	88,832	—	—	—	22,300	—	111,132
Operating expenses:
Salaries and benefits	147,353	80,903	2,308	5,518	732	48,307	(1,611)	283,509
Depreciation and amortization	10,450	5,395	—	601	—	15,464	—	31,911
Other expenses	40,198	16,158	7,210	3,194	23,632	26,243	—	116,637
Intersegment expenses, net	37,555	9,612	15,009	1,493	465	(52,648)	(11,486)	—
Total operating expenses	235,556	112,068	24,527	10,806	24,829	37,366	(13,097)	432,057
Income (loss) before income taxes	18,234	73,235	58,055	(2,571)	30,286	(24,872)	—	152,365
Income tax (expense) benefit	(4,376)	(17,585)	(13,933)	657	(7,209)	4,511	—	(37,936)
Net income (loss)	13,858	55,650	44,122	(1,914)	23,077	(20,361)	—	114,429
Net loss (income) attributable to noncontrolling interests	—	46	—	—	(249)	4,272	—	4,069
Net income (loss) attributable to Nelnet, Inc.	$13,858	55,696	44,122	(1,914)	22,828	(16,089)	—	118,498
Total assets as of June 30, 2024	$264,381	478,077	11,315,210	1,185,302	1,038,068	778,549	(558,394)	14,501,193

	Six months ended June 30, 2023
	Nelnet Financial Services
	Loan Servicing and Systems	Education Technology Services and Payments	AssetGeneration andManagement	Nelnet Bank	NFS Other Operating Segments	Corporate and Other Activities	Eliminations	Total
Interest income:
Loan interest	$—	—	458,818	9,471	—	—	—	468,288
Investment interest	2,095	11,304	29,664	16,449	41,460	5,594	(24,860)	81,707
Total interest income	2,095	11,304	488,482	25,920	41,460	5,594	(24,860)	549,995
Interest expense	—	—	421,511	15,385	19,198	1,362	(24,860)	432,597
Net interest income	2,095	11,304	66,971	10,535	22,262	4,232	—	117,398
Less provision (negative provision) for loan losses	—	—	(3,119)	3,910	—	—	—	791
Net interest income after provision for loan losses	2,095	11,304	70,090	6,625	22,262	4,232	—	116,607
Other income (expense):
Loan servicing and systems revenue	261,247	—	—	—	—	—	—	261,247
Intersegment revenue	15,036	121	—	—	—	—	(15,157)	—
Education technology services and payments revenue	—	243,462	—	—	—	—	—	243,462
Solar construction revenue	—	—	—	—	—	13,386	—	13,386
Other, net	1,213	—	4,164	830	5,226	(35,667)	—	(24,235)
Loss on sale of loans	—	—	(15,753)	—	—	—	—	(15,753)
Impairment expense and provision for beneficial interests	—	—	—	—	—	—	—	—
Derivative settlements, net	—	—	23,319	83	—	—	—	23,402
Derivative market value adjustments, net	—	—	(36,515)	1,108	—	—	—	(35,407)
Total other income (expense), net	277,496	243,583	(24,785)	2,021	5,226	(22,281)	(15,157)	466,102
Cost of services:
Cost to provide education technology services and payments	—	88,110	—	—	—	—	—	88,110
Cost to provide solar construction services	—	—	—	—	—	17,422	—	17,422
Total cost of services	—	88,110	—	—	—	17,422	—	105,532
Operating expenses:
Salaries and benefits	160,701	76,264	1,851	4,361	429	53,955	(145)	297,416
Depreciation and amortization	9,377	5,393	—	56	—	20,454	—	35,279
Other expenses	27,131	17,755	9,131	2,406	4,701	25,657	—	86,781
Intersegment expenses, net	40,136	11,684	16,841	173	256	(54,078)	(15,012)	—
Total operating expenses	237,345	111,096	27,823	6,996	5,386	45,988	(15,157)	419,476
Income (loss) before income taxes	42,246	55,681	17,482	1,650	22,102	(81,459)	—	57,701
Income tax (expense) benefit	(10,139)	(13,393)	(4,196)	(362)	(5,240)	15,056	—	(18,273)
Net income (loss)	32,107	42,288	13,286	1,288	16,862	(66,403)	—	39,428
Net loss (income) attributable to noncontrolling interests	—	119	—	—	(269)	14,107	—	13,957
Net income (loss) attributable to Nelnet, Inc.	$32,107	42,407	13,286	1,288	16,593	(52,296)	—	53,385
Total assets as of June 30, 2023	$173,926	482,922	14,667,357	1,005,043	1,099,212	970,987	(613,757)	17,785,690

Disaggregated Revenue

The following tables present disaggregated revenue by service offering or customer type for the Company's fee-based operating segments.

Loan Servicing and Systems

	Three months ended June 30,		Six months ended June 30,
	2024	2023	2024	2023
Government loan servicing	$87,014	95,736	192,490	204,618
Private education and consumer loan servicing	12,959	12,063	25,577	24,225
FFELP loan servicing	3,245	3,554	6,624	6,921
Software services	4,879	5,962	9,420	15,660
Outsourced services	955	4,705	2,141	9,823
Loan servicing and systems revenue	$109,052	122,020	236,252	261,247

Education Technology Services and Payments

	Three months ended June 30,		Six months ended June 30,
	2024	2023	2024	2023
Tuition payment plan services	$34,164	30,825	73,043	65,012
Payment processing	34,326	31,827	82,113	75,868
Education technology services	47,205	46,216	103,227	101,004
Other	1,214	990	2,066	1,578
Education technology services and payments revenue	$116,909	109,858	260,449	243,462

Solar Construction

	Three months ended June 30,		Six months ended June 30,
	2024	2023	2024	2023
Commercial revenue	$8,777	2,329	20,355	8,205
Residential revenue (a)	917	2,406	3,065	5,181
Solar construction revenue	$9,694	4,735	23,420	13,386

(a) On April 12, 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. As a result, residential revenue will continue to decline from recent historical amounts as existing customer contracts are completed.

Other Income (Expense)

The following table presents the components of "other, net" in "other income (expense)" on the consolidated statements of income:

	Three months ended June 30,		Six months ended June 30,
	2024	2023	2024	2023
Reinsurance premiums	$14,851	3,816	27,631	4,351
ALLO preferred return	4,160	2,274	6,569	4,523
Borrower late fee income	2,584	2,168	5,718	4,414
Investment advisory services (WRCM)	1,524	1,639	3,033	3,251
Administration/sponsor fee income	1,482	1,697	3,028	3,468
Investment activity, net	217	(3,574)	(1,082)	(7,154)
Loss from ALLO voting membership interest investment	—	(12,169)	(10,693)	(32,382)
(Loss) gain from solar investments, net	(2,610)	(10,086)	170	(13,030)
Other	6,663	5,068	11,360	8,324
Other, net	$28,871	(9,167)	45,734	(24,235)

Major Customer

Government Loan Servicing

Nelnet Servicing, a subsidiary of the Company, earns loan servicing revenue from a servicing contract with the Department of Education (the "Department"). Revenue earned by the Company related to this contract was $87.0 million and $95.7 million for the three months ended June 30, 2024 and 2023, respectively, and $192.5 million and $204.6 million for the six months ended June 30, 2024 and 2023, respectively.

The Company's legacy student loan servicing contract with the Department was scheduled to expire on December 14, 2023. 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 (the "New Government Servicing Contract") which replaced the legacy Department student loan servicing contract.

The New Government Servicing Contract became effective April 24, 2023 and has afive year base period, with 2 two-year and 1 one-year possible extensions. 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. 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. Servicing under the New Government Servicing 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. The Company earned revenue for servicing borrowers under the legacy servicing contract with the Department through March 31, 2024.

The New Government Servicing Contract has multiple revenue components with tiered pricing based on borrower volume, while revenue earned under the legacy servicing contract was primarily based on borrower status. Assuming borrower volume remains consistent under the New Government Servicing Contract, the Company expects revenue earned on a per borrower blended basis will decrease under the New Government Servicing Contract versus the legacy contract. However, consistent with the legacy contract, the Company expects to earn additional revenue from the Department under the New Government Servicing Contract for change requests and other support services. In addition, the Company has executed an agreement with a third-party servicer awarded a USDS contract to license its servicing software to such entity. The Company began earning remote hosted servicing revenue from this new customer during the second quarter of 2024. The amount of revenue earned by the Company from this new customer will depend on the number of servicing borrowers allocated by the Department to this servicer.

Fair Value

The following tables present the Company’s financial assets and liabilities that are measured at fair value on a recurring basis.

As of June 30, 2024 · As of December 31, 2023
Level 1 · Level 2 · Total · Level 1 · Level 2 · Total
Assets:
Investments:
Asset-backed debt securities - available-for-sale	$100	939,429		939,529	99		955,804	955,903
Equity securities	187	—		187	73		—	73
Equity securities measured at net asset value (a)			59,434			50,834
Total investments	287	939,429		999,150	172		955,804	1,006,810
Derivative instruments	—	2,112		2,112	—		452	452
Total assets	$287	941,541		1,001,262	172		956,256	1,007,262
Liabilities:
Derivative instruments	$—	780		780	—		1,976	1,976
Total liabilities	$—	780		780	—		1,976	1,976

(a) In accordance with the Fair Value Measurements Topic of the FASB Accounting Standards Codification, certain investments that are measured at fair value using the net asset value per share (or its equivalent) practical expedient have not been classified in the fair value hierarchy.

The following table summarizes the fair values of all of the Company’s financial instruments on the consolidated balance sheets:

	As of June 30, 2024
	Fair value	Carrying value	Level 1	Level 2	Level 3
Financial assets:
Loans receivable	$10,902,478	10,320,047	—	—	10,902,478
Accrued loan interest receivable	619,472	619,472	—	619,472	—
Cash and cash equivalents	145,478	145,478	145,478	—	—
Investments (at fair value)	999,150	999,150	287	939,429	—
Investments - held-to-maturity	234,263	228,883	—	234,263	—
Notes receivable	28,565	28,565	—	28,565	—
Beneficial interest in loan securitizations	261,850	243,969	—	—	261,850
Restricted cash	538,446	538,446	538,446	—	—
Restricted cash – due to customers	259,479	259,479	259,479	—	—
Derivative instruments	2,112	2,112	—	2,112	—
Financial liabilities:
Bonds and notes payable	9,560,951	9,567,708	—	9,560,951	—
Accrued interest payable	27,141	27,141	—	27,141	—
Bank deposits	869,437	890,472	575,265	294,172	—
Due to customers	388,876	388,876	388,876	—	—
Derivative instruments	780	780	—	780	—

	As of December 31, 2023
	Fair value	Carrying value	Level 1	Level 2	Level 3
Financial assets:
Loans receivable	$12,800,638	12,343,819	—	—	12,800,638
Accrued loan interest receivable	764,385	764,385	—	764,385	—
Cash and cash equivalents	168,112	168,112	168,112	—	—
Investments (at fair value)	1,006,810	1,006,810	172	955,804	—
Investments - held-to-maturity	163,622	162,738	—	163,622	—
Notes receivable	53,747	53,747	—	53,747	—
Beneficial interest in loan securitizations	262,093	225,079	—	—	262,093
Restricted cash	488,723	488,723	488,723	—	—
Restricted cash – due to customers	368,656	368,656	368,656	—	—
Derivative instruments	452	452	—	452	—
Financial liabilities:
Bonds and notes payable	11,629,359	11,828,393	—	11,629,359	—
Accrued interest payable	35,391	35,391	—	35,391	—
Bank deposits	722,973	743,599	467,420	255,553	—
Due to customers	425,507	425,507	425,507	—	—
Derivative instruments	1,976	1,976	—	1,976	—

The methodologies for estimating the fair value of financial assets and liabilities are described in note 23 of the notes to consolidated financial statements included in the 2023 Annual Report.

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.