Loans and Accrued Interest Receivable and Allowance for Loan Losses |
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, 2025 | | December 31, 2024 | Non-Nelnet Bank: | | | | Federally insured loans: | | | | Stafford and other | $ | 2,039,136 | | | 2,108,960 | | Consolidation | 6,327,949 | | | 6,279,604 | | Total | 8,367,085 | | | 8,388,564 | | Private education loans (a) | 156,614 | | | 221,744 | | Consumer and other loans | 411,470 | | | 345,560 | | Non-Nelnet Bank loans | 8,935,169 | | | 8,955,868 | | Nelnet Bank: | | | | Federally insured loans: | | | | Stafford and other | 10,040 | | | — | | Consolidation | 96,515 | | | — | | Total | 106,555 | | | — | | Private education loans (a) | 516,663 | | | 482,445 | | Consumer and other loans | 204,423 | | | 162,152 | | Nelnet Bank loans | 827,641 | | | 644,597 | | Accrued interest receivable | 560,927 | | | 549,283 | | Loan discount and deferred lender fees, net of unamortized loan premiums and deferred origination costs | (42,905) | | | (42,114) | | Allowance for loan losses: | | | | Non-Nelnet Bank: | | | | Federally insured loans | (47,627) | | | (49,091) | | Private education loans | (7,406) | | | (11,130) | | Consumer and other loans | (48,028) | | | (38,468) | | Non-Nelnet Bank allowance for loan losses | (103,061) | | | (98,689) | | Nelnet Bank: | | | | Federally insured loans | (355) | | | — | | Private education loans | (12,360) | | | (10,086) | | Consumer and other loans | (9,573) | | | (6,115) | | Nelnet Bank allowance for loan losses | (22,288) | | | (16,201) | | | $ | 10,155,483 | | | 9,992,744 | |
(a) During the second quarter of 2025, the Asset Generation and Management operating segment (Non-Nelnet Bank) contributed $42.2 million of private education loans to Nelnet Bank. 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, 2025 | | December 31, 2024 | Non-Nelnet Bank: | | | | Federally insured loans (a) | 0.57 | % | | 0.59 | % | Private education loans | 4.73 | % | | 5.02 | % | Consumer and other loans | 11.67 | % | | 11.13 | % | Nelnet Bank: | | | | Federally insured loans (a) | 0.33 | % | | — | | Private education loans | 2.39 | % | | 2.09 | % | Consumer and other loans | 4.68 | % | | 3.77 | % |
(a) The allowance for loan losses as a percent of the risk sharing component of federally insured student loans not covered by the federal guaranty for non-Nelnet Bank was 20.4% and 20.6% as of June 30, 2025 and December 31, 2024, respectively, and for Nelnet Bank was 16.5% as of June 30, 2025. Student Loan Trust Acquisitions In March 2025, the Company acquired the ownership interests in certain trusts giving the Company rights to the residual interest. The trusts included $646.9 million (par value) of federally insured Stafford and consolidation loans funded to term with $721.3 million (par value) of bonds and notes payable, $32.2 million of cash and restricted cash, and $27.4 million of other net assets. The Company has consolidated these trusts on its consolidated balance sheet as the Company is the primary beneficiary of the trusts. Upon acquisition, the Company recorded the student loans and bonds and notes payable at fair value, resulting in the recognition of a student loan net discount of $6.6 million and a bonds and notes payable discount of $31.1 million. These net discounts will be accreted using the effective interest method over the lives of the underlying assets and liabilities. 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 | | Initial allowance on loans purchased with credit deterioration | | | | Balance at end of period | | Three months ended June 30, 2025 | Non-Nelnet Bank: | | | | | | | | | | | | | | Federally insured loans | $ | 48,906 | | | 2,112 | | | (3,391) | | | — | | | — | | | | | 47,627 | | Private education loans | 10,394 | | | (2,760) | | | (523) | | | 295 | | | — | | | | | 7,406 | | Consumer and other loans | 43,904 | | | 11,781 | | | (7,967) | | | 310 | | | — | | | | | 48,028 | | Nelnet Bank: | | | | | | | | | | | | | | Federally insured loans | 362 | | | 9 | | | (16) | | | — | | | — | | | | | 355 | | Private education loans | 9,893 | | | 2,839 | | | (1,739) | | | 307 | | | 1,060 | | | | | 12,360 | | Consumer and other loans | 6,617 | | | 3,731 | | | (878) | | | 103 | | | — | | | | | 9,573 | | | $ | 120,076 | | | 17,712 | | | (14,514) | | | 1,015 | | | 1,060 | | | | | 125,349 | | | 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 | | | | | | | | | | | | | | | | | Six months ended June 30, 2025 | Non-Nelnet Bank: | | | | | | | | | | | | | | Federally insured loans | $ | 49,091 | | | 4,746 | | | (6,210) | | | — | | | — | | | | | 47,627 | | Private education loans | 11,130 | | | (2,760) | | | (1,457) | | | 493 | | | — | | | | | 7,406 | | Consumer and other loans | 38,468 | | | 22,158 | | | (13,143) | | | 545 | | | — | | | | | 48,028 | | Nelnet Bank: | | | | | | | | | | | | | | Federally insured loans | — | | | 374 | | | (19) | | | — | | | — | | | | | 355 | | Private education loans | 10,086 | | | 3,925 | | | (3,134) | | | 423 | | | 1,060 | | | | | 12,360 | | Consumer and other loans | 6,115 | | | 4,734 | | | (1,447) | | | 171 | | | — | | | | | 9,573 | | | $ | 114,890 | | | 33,177 | | | (25,410) | | | 1,632 | | | 1,060 | | | | | 125,349 | | | | | | | | | | | | | | | | | 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 | |
(a) Once a loan is classified as held for sale, any allowance for loan losses that existed immediately prior to the reclassification to held for sale is reversed through provision. The following table presents the reduction to provision for loan losses as a result of the contribution of Non-Nelnet Bank private education loans to Nelnet Bank during the second quarter of 2025 and the consumer and other loan sales during 2024: | | | | | | | | | | | | | | | | | | | Provision for current period | | Reduction to provision | | Provision (negative provision) for loan losses | | Three months ended June 30, 2025 | Non-Nelnet Bank | | | | | | | | | | | | Private education loans | $ | (994) | | | (1,766) | | | (2,760) | | | | | | | | | | | | | | | | | | | | | Three months ended June 30, 2024 | Non-Nelnet Bank | | | | | | | | | | | | | | | | | | Consumer and other loans | $ | 10,340 | | | (12,595) | | | (2,255) | | | | | | | | | | | | | | | Six months ended June 30, 2025 | Non-Nelnet Bank | | | | | | | | | | | | Private education loans | $ | (994) | | | (1,766) | | | (2,760) | | | | | | | | | | | | | | | | | | | | | Six months ended June 30, 2024 | Non-Nelnet Bank | | | | | | | | | | | | | | | | | | Consumer and other loans | $ | 19,030 | | | (12,695) | | | 6,335 | | | | | | | |
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, | | 2025 | | 2024 | | 2025 | | 2024 | Non-Nelnet Bank: | | | | | | | | Federally insured loans | 0.16 | % | | 0.22 | % | | 0.14 | % | | 0.19 | % | Private education loans | 0.55 | % | | 2.64 | % | | 1.02 | % | | 1.85 | % | Consumer and other loans | 7.62 | % | | 4.62 | % | | 6.58 | % | | 4.98 | % | Nelnet Bank: | | | | | | | | Federally insured loans | 0.06 | % | | — | | | 0.06 | % | | — | | Private education loans | 1.10 | % | | 0.40 | % | | 1.08 | % | | 0.44 | % | Consumer and other loans (a) | 1.71 | % | | 7.44 | % | | 1.49 | % | | 7.66 | % |
(a) Decrease in annualized net charge-offs as a percentage of average loans was due to a change in mix of consumer loan portfolios that resulted in a portfolio of loans with an overall higher credit quality in 2025 compared with 2024 and Nelnet Bank exiting a consumer loan program in December 2024 that had previously incurred significant charge-offs. During the periods presented above, the primary item impacting provision for loan losses was the establishment of an initial allowance for loans originated and acquired during the periods. Provision for loan losses was also impacted by the reversal of provision for consumer and other loans sold in 2024. The Company recorded a negative provision for loan losses for its federally insured loan portfolio in 2024 due to an increase in prepayment assumptions. Unfunded Loan Commitments As of June 30, 2025 and December 31, 2024, Nelnet Bank had a liability of approximately $416,000 and $326,000, respectively, related to $62.2 million and $40.7 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, | | 2025 | | 2024 | | 2025 | | 2024 | Provision for loan losses from allowance activity table above | $ | 17,712 | | | 3,549 | | | 33,177 | | | 14,478 | | Provision (negative provision) for unfunded loan commitments | 218 | | | 62 | | | 90 | | | (38) | | Provision for loan losses reported in consolidated statements of income | $ | 17,930 | | | 3,611 | | | 33,267 | | | 14,440 | |
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. Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but for purposes of the following tables, do not include those loans while they are in forbearance). The following table presents the Company’s loan status and delinquency amounts: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of June 30, 2025 | | As of December 31, 2024 | | As of June 30, 2024 | Federally insured loans - Non-Nelnet Bank: | | | | | | | | | | | | | | | | | | Loans in-school/grace/deferment | $ | 393,460 | | | 4.7 | % | | | | $ | 376,765 | | | 4.5 | % | | | | $ | 440,891 | | | 4.6 | % | | | Loans in forbearance | 555,469 | | | 6.6 | | | | | 586,412 | | | 7.0 | | | | | 702,539 | | | 7.4 | | | | Loans in repayment status: | | | | | | | | | | | | | | | | | | Loans current | 6,378,571 | | | | | 86.0 | % | | 6,374,897 | | | | | 85.9 | % | | 7,012,655 | | | | | 84.1 | % | Loans delinquent 31-60 days | 261,809 | | | | | 3.5 | | | 243,348 | | | | | 3.3 | | | 339,262 | | | | | 4.1 | | Loans delinquent 61-90 days | 175,562 | | | | | 2.4 | | | 166,474 | | | | | 2.2 | | | 234,746 | | | | | 2.8 | | Loans delinquent 91-120 days | 111,678 | | | | | 1.5 | | | 113,838 | | | | | 1.5 | | | 151,447 | | | | | 1.8 | | Loans delinquent 121-270 days | 360,754 | | | | | 4.9 | | | 380,823 | | | | | 5.1 | | | 377,660 | | | | | 4.5 | | Loans delinquent 271 days or greater | 129,782 | | | | | 1.7 | | | 146,007 | | | | | 2.0 | | | 224,533 | | | | | 2.7 | | Total loans in repayment | 7,418,156 | | | 88.7 | | | 100.0 | % | | 7,425,387 | | | 88.5 | | | 100.0 | % | | 8,340,303 | | | 88.0 | | | 100.0 | % | Total federally insured loans | 8,367,085 | | | 100.0 | % | | | | 8,388,564 | | | 100.0 | % | | | | 9,483,733 | | | 100.0 | % | | | Accrued interest receivable | 545,288 | | | | | | | 540,272 | | | | | | | 612,374 | | | | | | Loan discount, net of unamortized premiums and deferred origination costs | (26,523) | | | | | | | (21,513) | | | | | | | (24,222) | | | | | | Allowance for loan losses | (47,627) | | | | | | | (49,091) | | | | | | | (54,180) | | | | | | Total federally insured loans and accrued interest receivable, net of allowance for loan losses | $ | 8,838,223 | | | | | | | $ | 8,858,232 | | | | | | | $ | 10,017,705 | | | | | | Private education loans - Non-Nelnet Bank: | | | | | | | | | | | | | | | | | | Loans in-school/grace/deferment | $ | 4,433 | | | 2.8 | % | | | | $ | 5,997 | | | 2.7 | % | | | | $ | 7,906 | | | 3.2 | % | | | Loans in forbearance | 1,530 | | | 1.0 | | | | | 2,089 | | | 0.9 | | | | | 2,248 | | | 0.9 | | | | Loans in repayment status: | | | | | | | | | | | | | | | | | | Loans current | 147,690 | | | | | 98.0 | % | | 206,825 | | | | | 96.8 | % | | 230,512 | | | | | 97.1 | % | Loans delinquent 31-60 days | 1,246 | | | | | 0.8 | | | 3,424 | | | | | 1.6 | | | 2,814 | | | | | 1.2 | | Loans delinquent 61-90 days | 564 | | | | | 0.4 | | | 1,275 | | | | | 0.6 | | | 1,395 | | | | | 0.6 | | Loans delinquent 91 days or greater | 1,151 | | | | | 0.8 | | | 2,134 | | | | | 1.0 | | | 2,562 | | | | | 1.1 | | Total loans in repayment | 150,651 | | | 96.2 | | | 100.0 | % | | 213,658 | | | 96.4 | | | 100.0 | % | | 237,283 | | | 95.9 | | | 100.0 | % | Total private education loans | 156,614 | | | 100.0 | % | | | | 221,744 | | | 100.0 | % | | | | 247,437 | | | 100.0 | % | | | Accrued interest receivable | 1,299 | | | | | | | 2,019 | | | | | | | 2,407 | | | | | | Loan discount, net of unamortized premiums | (5,162) | | | | | | | (6,350) | | | | | | | (7,194) | | | | | | Allowance for loan losses | (7,406) | | | | | | | (11,130) | | | | | | | (13,065) | | | | | | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 145,345 | | | | | | | $ | 206,283 | | | | | | | $ | 229,585 | | | | | | Consumer and other loans - Non-Nelnet Bank: | | | | | | | | | | | | | | | | | | Loans in deferment | $ | 1,355 | | | 0.3 | % | | | | $ | 150 | | | 0.0 | % | | | | $ | 122 | | | 0.1 | % | | | Loans in repayment status: | | | | | | | | | | | | | | | | | | Loans current | 399,263 | | | | | 97.3 | % | | 335,355 | | | | | 97.1 | % | | 174,295 | | | | | 97.2 | % | Loans delinquent 31-60 days | 3,731 | | | | | 0.9 | | | 3,667 | | | | | 1.1 | | | 2,100 | | | | | 1.2 | | Loans delinquent 61-90 days | 3,096 | | | | | 0.8 | | | 2,143 | | | | | 0.6 | | | 1,857 | | | | | 1.0 | | Loans delinquent 91 days or greater | 4,025 | | | | | 1.0 | | | 4,245 | | | | | 1.2 | | | 1,073 | | | | | 0.6 | | Total loans in repayment | 410,115 | | | 99.7 | | | 100.0 | % | | 345,410 | | | 100.0 | | | 100.0 | % | | 179,325 | | | 99.9 | | | 100.0 | % | Total consumer and other loans | 411,470 | | | 100.0 | % | | | | 345,560 | | | 100.0 | % | | | | 179,447 | | | 100.0 | % | | | Accrued interest receivable | 2,260 | | | | | | | 1,868 | | | | | | | 763 | | | | | | Loan discount and deferred lender fees, net of unamortized premiums | (6,296) | | | | | | | (10,713) | | | | | | | (9,205) | | | | | | Allowance for loan losses | (48,028) | | | | | | | (38,468) | | | | | | | (14,135) | | | | | | Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | $ | 359,406 | | | | | | | $ | 298,247 | | | | | | | $ | 156,870 | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of June 30, 2025 | | As of December 31, 2024 | | As of June 30, 2024 | Federally insured loans - Nelnet Bank (a): | | | | | | | | | | | | | | | | | | Loans in-school/grace/deferment | $ | 2,665 | | | 2.5 | % | | | | | | | | | | | | | | | Loans in forbearance | 5,550 | | | 5.2 | | | | | | | | | | | | | | | | Loans in repayment status: | | | | | | | | | | | | | | | | | | Loans current | 88,408 | | | | | 89.9 | % | | | | | | | | | | | | | Loans delinquent 30-59 days | 2,806 | | | | | 2.9 | | | | | | | | | | | | | | Loans delinquent 60-89 days | 2,001 | | | | | 2.0 | | | | | | | | | | | | | | Loans delinquent 90-119 days | 1,683 | | | | | 1.7 | | | | | | | | | | | | | | Loans delinquent 120-270 days | 2,495 | | | | | 2.5 | | | | | | | | | | | | | | Loans delinquent 271 days or greater | 947 | | | | | 1.0 | | | | | | | | | | | | | | Total loans in repayment | 98,340 | | | 92.3 | | | 100.0 | % | | | | | | | | | | | | | Total federally insured loans | 106,555 | | | 100.0 | % | | | | | | | | | | | | | | | Accrued interest receivable | 5,194 | | | | | | | | | | | | | | | | | | Loan premium | 1,221 | | | | | | | | | | | | | | | | | | Allowance for loan losses | (355) | | | | | | | | | | | | | | | | | | Total federally insured loans and accrued interest receivable, net of allowance for loan losses | $ | 112,615 | | | | | | | | | | | | | | | | | | Private education loans - Nelnet Bank (a): | | | | | | | | | | | | | | | | | | Loans in-school/grace/deferment | $ | 45,107 | | | 8.7 | % | | | | $ | 31,674 | | | 6.6 | % | | | | $ | 41,394 | | | 11.7 | % | | | Loans in forbearance | 1,926 | | | 0.4 | | | | | 3,061 | | | 0.6 | | | | | 1,985 | | | 0.6 | | | | Loans in repayment status: | | | | | | | | | | | | | | | | | | Loans current | 460,426 | | | | | 98.0 | % | | 439,569 | | | | | 98.2 | % | | 308,591 | | | | | 99.2 | % | Loans delinquent 30-59 days | 3,102 | | | | | 0.7 | | | 4,327 | | | | | 1.0 | | | 934 | | | | | 0.3 | | Loans delinquent 60-89 days | 2,710 | | | | | 0.6 | | | 1,497 | | | | | 0.3 | | | 444 | | | | | 0.2 | | Loans delinquent 90 days or greater | 3,392 | | | | | 0.7 | | | 2,317 | | | | | 0.5 | | | 1,064 | | | | | 0.3 | | Total loans in repayment | 469,630 | | | 90.9 | | | 100.0 | % | | 447,710 | | | 92.8 | | | 100.0 | % | | 311,033 | | | 87.7 | | | 100.0 | % | Total private education loans | 516,663 | | | 100.0 | % | | | | 482,445 | | | 100.0 | % | | | | 354,412 | | | 100.0 | % | | | Accrued interest receivable | 5,540 | | | | | | | 4,103 | | | | | | | 2,709 | | | | | | Loan discount, net of unamortized premiums and deferred origination costs | (8,589) | | | | | | | (4,581) | | | | | | | 5,501 | | | | | | Allowance for loan losses | (12,360) | | | | | | | (10,086) | | | | | | | (3,559) | | | | | | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 501,254 | | | | | | | $ | 471,881 | | | | | | | $ | 359,063 | | | | | | Consumer and other loans - Nelnet Bank (a): | | | | | | | | | | | | | | | | | | Loans in deferment | $ | 8,538 | | | 4.2 | % | | | | $ | 5,186 | | | 3.2 | % | | | | $ | 1,414 | | | 0.8 | % | | | | | | | | | | | | | | | | | | | | | Loans in repayment status: | | | | | | | | | | | | | | | | | | Loans current | 194,507 | | | | | 99.3 | % | | 155,772 | | | | | 99.2 | % | | 181,558 | | | | | 97.3 | % | Loans delinquent 30-59 days | 1,001 | | | | | 0.5 | | | 803 | | | | | 0.5 | | | 1,516 | | | | | 0.8 | | Loans delinquent 60-89 days | 193 | | | | | 0.1 | | | 243 | | | | | 0.2 | | | 1,814 | | | | | 1.0 | | Loans delinquent 90 days or greater | 184 | | | | | 0.1 | | | 148 | | | | | 0.1 | | | 1,637 | | | | | 0.9 | | Total loans in repayment | 195,885 | | | 95.8 | | | 100.0 | % | | 156,966 | | | 96.8 | | | 100.0 | % | | 186,525 | | | 99.2 | | | 100.0 | % | Total consumer and other loans | 204,423 | | | 100.0 | % | | | | 162,152 | | | 100.0 | % | | | | 187,939 | | | 100.0 | % | | | Accrued interest receivable | 1,346 | | | | | | | 1,021 | | | | | | | 1,219 | | | | | | Loan premium, net of unaccreted discount | 2,444 | | | | | | | 1,043 | | | | | | | (1,037) | | | | | | Allowance for loan losses | (9,573) | | | | | | | (6,115) | | | | | | | (11,825) | | | | | | Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | $ | 198,640 | | | | | | | $ | 158,101 | | | | | | | $ | 176,296 | | | | | |
(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 or purchase. 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 or purchase: Nelnet Bank Private Education Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loan balance as of June 30, 2025 | | | | Six months ended June 30, 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior years | | Total | | Percent of total | FICO at origination or purchase: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Less than 705 | $ | 2,057 | | | 2,986 | | | 3,197 | | | 4,408 | | | 3,857 | | | 22,149 | | | 38,654 | | | 7.5 | % | 705 - 734 | 2,753 | | | 5,017 | | | 8,301 | | | 18,528 | | | 7,076 | | | 15,980 | | | 57,655 | | | 11.2 | | 735 - 764 | 4,251 | | | 5,693 | | | 7,795 | | | 27,968 | | | 11,821 | | | 23,990 | | | 81,518 | | | 15.8 | | 765 - 794 | 4,260 | | | 6,576 | | | 5,416 | | | 43,694 | | | 22,369 | | | 29,537 | | | 111,852 | | | 21.6 | | Greater than 794 | 6,154 | | | 14,728 | | | 13,632 | | | 62,114 | | | 44,955 | | | 77,929 | | | 219,512 | | | 42.5 | | No FICO score available or required (a) | — | | | 2,367 | | | 5,105 | | | — | | | — | | | — | | | 7,472 | | | 1.4 | | | $ | 19,475 | | | 37,367 | | | 43,446 | | | 156,712 | | | 90,078 | | | 169,585 | | | 516,663 | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loan balance as of December 31, 2024 | | | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior years | | Total | | Percent of total | FICO at origination or purchase: | | | | | | | | | | | | | | | | Less than 705 | $ | 2,566 | | | 3,578 | | | 4,759 | | | 4,182 | | | 331 | | | 15,485 | | | 30,901 | | | 6.4 | % | 705 - 734 | 3,736 | | | 8,874 | | | 19,666 | | | 7,531 | | | 426 | | | 12,349 | | | 52,582 | | | 10.9 | | 735 - 764 | 4,398 | | | 8,629 | | | 29,918 | | | 12,775 | | | 1,286 | | | 17,920 | | | 74,926 | | | 15.5 | | 765 - 794 | 4,600 | | | 6,115 | | | 46,340 | | | 24,073 | | | 1,105 | | | 23,867 | | | 106,100 | | | 22.0 | | Greater than 794 | 9,971 | | | 15,471 | | | 67,454 | | | 49,408 | | | 4,406 | | | 63,258 | | | 209,968 | | | 43.5 | | No FICO score available or required (a) | 2,476 | | | 5,492 | | | — | | | — | | | — | | | — | | | 7,968 | | | 1.7 | | | $ | 27,747 | | | 48,159 | | | 168,137 | | | 97,969 | | | 7,554 | | | 132,879 | | | 482,445 | | | 100.0 | % |
Nelnet Bank Consumer and Other Loans | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loan balance as of June 30, 2025 | | | | Six months ended June 30, 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior years | | Total | | Percent of total | FICO at origination: | | | | | | | | | | | | | | | | Less than 720 | $ | 6,132 | | | 17,946 | | | 1,627 | | | — | | | 295 | | | 1,463 | | | 27,463 | | | 13.4 | % | 720 - 769 | 12,060 | | | 39,184 | | | 3,981 | | | 17 | | | 5,770 | | | 7,662 | | | 68,674 | | | 33.6 | | Greater than 769 | 28,891 | | | 52,873 | | | 6,252 | | | 98 | | | 5,597 | | | 3,566 | | | 97,277 | | | 47.6 | | No FICO score available or required (a) | 2,124 | | | 8,123 | | | 434 | | | 274 | | | 54 | | | — | | | 11,009 | | | 5.4 | | | $ | 49,207 | | | 118,126 | | | 12,294 | | | 389 | | | 11,716 | | | 12,691 | | | 204,423 | | | 100.0 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Loan balance as of December 31, 2024 | | | | 2024 | | 2023 | | 2022 | | 2021 | | 2020 | | Prior years | | Total | | Percent of total | FICO at origination: | | | | | | | | | | | | | | | | Less than 720 | $ | 19,264 | | | 1,762 | | | — | | | 376 | | | 675 | | | 1,170 | | | 23,247 | | | 14.3 | % | 720 - 769 | 41,217 | | | 4,502 | | | 19 | | | 6,152 | | | 5,448 | | | 3,105 | | | 60,443 | | | 37.3 | | Greater than 769 | 57,323 | | | 6,577 | | | 103 | | | 5,834 | | | 2,755 | | | 1,165 | | | 73,757 | | | 45.5 | | No FICO score available or required (a) | 3,936 | | | 437 | | | 277 | | | 55 | | | — | | | — | | | 4,705 | | | 2.9 | | | $ | 121,740 | | | 13,278 | | | 399 | | | 12,417 | | | 8,878 | | | 5,440 | | | 162,152 | | | 100.0 | % |
(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, 2025 and December 31, 2024, 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, 2025 based on year of origination. Effective July 1, 2010, no new loan originations can be made under the Federal Family Education Loan Program (the "FFEL Program" or FFELP) and all new federal loan originations must be made under the Federal Direct Loan Program. As such, all of the Company’s federally insured loans were originated prior to July 1, 2010. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six months ended June 30, 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior years | | Total | Private education loans - Non-Nelnet Bank: | | | | | | | | | | | | | | Loans in-school/grace/deferment | $ | — | | | — | | | — | | | 332 | | | 2,124 | | | 1,977 | | | 4,433 | | Loans in forbearance | — | | | — | | | — | | | 29 | | | 375 | | | 1,126 | | | 1,530 | | Loans in repayment status: | | | | | | | | | | | | | | Loans current | — | | | — | | | 185 | | | 3,868 | | | 5,031 | | | 138,606 | | | 147,690 | | Loans delinquent 31-60 days | — | | | — | | | — | | | 23 | | | 31 | | | 1,192 | | | 1,246 | | Loans delinquent 61-90 days | — | | | — | | | — | | | — | | | 5 | | | 559 | | | 564 | | Loans delinquent 91 days or greater | — | | | — | | | — | | | — | | | 84 | | | 1,067 | | | 1,151 | | Total loans in repayment | — | | | — | | | 185 | | | 3,891 | | | 5,151 | | | 141,424 | | | 150,651 | | Total private education loans | $ | — | | | — | | | 185 | | | 4,252 | | | 7,650 | | | 144,527 | | | 156,614 | | Accrued interest receivable | | | | | | | | | | | | | 1,299 | | Loan discount, net of unamortized premiums | | | | | | | | | | | | | (5,162) | | Allowance for loan losses | | | | | | | | | | | | | (7,406) | | Total private education loans and accrued interest receivable, net of allowance for loan losses | | | | | | | | | | | | | $ | 145,345 | | Gross charge-offs - six months ended June 30, 2025 | $ | — | | | — | | | — | | | — | | | 52 | | | 1,405 | | | 1,457 | | | | | | | | | | | | | | | | Consumer and other loans - Non-Nelnet Bank: | | | | | | | | | | | | | | Loans in deferment | $ | — | | | 453 | | | 902 | | | — | | | — | | | — | | | 1,355 | | Loans in repayment status: | | | | | | | | | | | | | | Loans current | 191,184 | | | 174,221 | | | 31,379 | | | 1,891 | | | 307 | | | 281 | | | 399,263 | | Loans delinquent 31-60 days | 423 | | | 2,348 | | | 751 | | | 190 | | | 19 | | | — | | | 3,731 | | Loans delinquent 61-90 days | 254 | | | 1,750 | | | 865 | | | 224 | | | — | | | 3 | | | 3,096 | | Loans delinquent 91 days or greater | 9 | | | 3,019 | | | 706 | | | 291 | | | — | | | — | | | 4,025 | | Total loans in repayment | 191,870 | | | 181,338 | | | 33,701 | | | 2,596 | | | 326 | | | 284 | | | 410,115 | | Total consumer and other loans | $ | 191,870 | | | 181,791 | | | 34,603 | | | 2,596 | | | 326 | | | 284 | | | 411,470 | | Accrued interest receivable | | | | | | | | | | | | | 2,260 | | Loan discount and deferred lender fees, net of unamortized premiums | | | | | | | | | | | | | (6,296) | | Allowance for loan losses | | | | | | | | | | | | | (48,028) | | Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | | | | | | | | | | | | | $ | 359,406 | | Gross charge-offs - six months ended June 30, 2025 | $ | 3,774 | | | 4,426 | | | 4,745 | | | 184 | | | 9 | | | 5 | | | 13,143 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Six months ended June 30, 2025 | | 2024 | | 2023 | | 2022 | | 2021 | | Prior years | | Total | Private education loans - Nelnet Bank (a): | | | | | | | | | | | | | | Loans in-school/grace/deferment | $ | 8,171 | | | 20,707 | | | 8,999 | | | 5,413 | | | 354 | | | 1,463 | | | 45,107 | | Loans in forbearance | — | | | 25 | | | 262 | | | 414 | | | 165 | | | 1,060 | | | 1,926 | | Loans in repayment status: | | | | | | | | | | | | | | Loans current | 11,189 | | | 16,157 | | | 33,073 | | | 150,025 | | | 88,331 | | | 161,651 | | | 460,426 | | Loans delinquent 30-59 days | 66 | | | 246 | | | 364 | | | 268 | | | 184 | | | 1,974 | | | 3,102 | | Loans delinquent 60-89 days | — | | | 31 | | | 305 | | | 290 | | | 289 | | | 1,795 | | | 2,710 | | Loans delinquent 90 days or greater | 49 | | | 201 | | | 443 | | | 302 | | | 755 | | | 1,642 | | | 3,392 | | Total loans in repayment | 11,304 | | | 16,635 | | | 34,185 | | | 150,885 | | | 89,559 | | | 167,062 | | | 469,630 | | Total private education loans | $ | 19,475 | | | 37,367 | | | 43,446 | | | 156,712 | | | 90,078 | | | 169,585 | | | 516,663 | | Accrued interest receivable | | | | | | | | | | | | | 5,540 | | Loan discount, net of unamortized premiums and deferred origination costs | | | | | | | | | | | | | (8,589) | | Allowance for loan losses | | | | | | | | | | | | | (12,360) | | Total private education loans and accrued interest receivable, net of allowance for loan losses | | | | | | | | | | | | | $ | 501,254 | | Gross charge-offs - six months ended June 30, 2025 | $ | — | | | 191 | | | 498 | | | 335 | | | 259 | | | 1,851 | | | 3,134 | | | | | | | | | | | | | | | | Consumer and other loans - Nelnet Bank (a): | | | | | | | | | | | | | | Loans in deferment | $ | 5,092 | | | 3,446 | | | — | | | — | | | — | | | — | | | 8,538 | | | | | | | | | | | | | | | | Loans in repayment status: | | | | | | | | | | | | | | Loans current | 44,054 | | | 113,832 | | | 12,180 | | | 389 | | | 11,468 | | | 12,584 | | | 194,507 | | Loans delinquent 30-59 days | 61 | | | 573 | | | 114 | | | — | | | 156 | | | 97 | | | 1,001 | | Loans delinquent 60-89 days | — | | | 183 | | | — | | | — | | | — | | | 10 | | | 193 | | Loans delinquent 90 days or greater | — | | | 92 | | | — | | | — | | | 92 | | | — | | | 184 | | Total loans in repayment | 44,115 | | | 114,680 | | | 12,294 | | | 389 | | | 11,716 | | | 12,691 | | | 195,885 | | Total consumer and other loans | $ | 49,207 | | | 118,126 | | | 12,294 | | | 389 | | | 11,716 | | | 12,691 | | | 204,423 | | Accrued interest receivable | | | | | | | | | | | | | 1,346 | | Loan premium, net of unaccreted discount | | | | | | | | | | | | | 2,444 | | Allowance for loan losses | | | | | | | | | | | | | (9,573) | | Total consumer and other loans and accrued interest receivable, net of allowance for loan losses | | | | | | | | | | | | | $ | 198,640 | | Gross charge-offs - six months ended June 30, 2025 | $ | — | | | 784 | | | 283 | | | — | | | 214 | | | 166 | | | 1,447 | |
(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.
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