Loans and Accrued Interest Receivable and Allowance for Loan Losses (Tables)
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3 Months Ended |
Mar. 31, 2022 |
Receivables [Abstract] |
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Loans Receivable and Accrued Interest Receivable |
Loans and accrued interest receivable consisted of the following: | | | | | | | | | | | | | As of | | As of | | March 31, 2022 | | December 31, 2021 | Non-Nelnet Bank: | | | | Federally insured student loans: | | | | Stafford and other | $ | 3,741,495 | | | 3,904,000 | | Consolidation | 12,553,882 | | | 13,187,047 | | Total | 16,295,377 | | | 17,091,047 | | Private education loans | 278,537 | | | 299,442 | | Consumer loans | 44,713 | | | 51,301 | | Non-Nelnet Bank loans | 16,618,627 | | | 17,441,790 | | Nelnet Bank: | | | | Federally insured student loans | 82,789 | | | 88,011 | | | | | | | | | | | | | | Private education loans | 285,468 | | | 169,890 | | | | | | Nelnet Bank loans | 368,257 | | | 257,901 | | | | | | Accrued interest receivable | 774,774 | | | 788,552 | | Loan discount, net of unamortized loan premiums and deferred origination costs | (22,257) | | | (25,933) | | | | | | Allowance for loan losses: | | | | Non-Nelnet Bank: | | | | Federally insured loans | (95,995) | | | (103,381) | | Private education loans | (14,622) | | | (16,143) | | Consumer loans | (5,710) | | | (6,481) | | Non-Nelnet Bank allowance for loan losses | (116,327) | | | (126,005) | | Nelnet Bank: | | | | Federally insured loans | (247) | | | (268) | | Private education loans | (1,251) | | | (840) | | | | | | Nelnet Bank allowance for loan losses | (1,498) | | | (1,108) | | | $ | 17,621,576 | | | 18,335,197 | |
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Allowance for Loan Losses as a Percentage of the Ending Balance |
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 | | March 31, 2022 | | December 31, 2021 | Non-Nelnet Bank: | | | | Federally insured student loans (a) | 0.59 | % | | 0.60 | % | Private education loans | 5.25 | % | | 5.39 | % | Consumer loans | 12.77 | % | | 12.63 | % | Nelnet Bank: | | | | Federally insured student loans (a) | 0.30 | % | | 0.30 | % | Private education loans | 0.44 | % | | 0.49 | % | | | | |
(a) As of March 31, 2022 and December 31, 2021, 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 21.6% and 22.2%, respectively, and for Nelnet Bank was 11.8% and 12.1%, respectively.
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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 | | Charge-offs | | Recoveries | | Initial allowance on loans purchased with credit deterioration (a) | | Loan sales | | Balance at end of period | | Three months ended March 31, 2022 | Non-Nelnet Bank: | | | | | | | | | | | | | | | | Federally insured loans | $ | 103,381 | | | | | (2,748) | | | (4,761) | | | — | | | 123 | | | — | | | 95,995 | | Private education loans | 16,143 | | | | | (400) | | | (1,299) | | | 176 | | | — | | | 2 | | | 14,622 | | Consumer loans | 6,481 | | | | | 2,284 | | | (937) | | | 166 | | | — | | | (2,284) | | | 5,710 | | Nelnet Bank: | | | | | | | | | | | | | | | | Federally insured loans | 268 | | | | | (21) | | | — | | | — | | | — | | | — | | | 247 | | Private education loans | 840 | | | | | 426 | | | (13) | | | — | | | — | | | (2) | | | 1,251 | | | | | | | | | | | | | | | | | | | $ | 127,113 | | | | | (459) | | | (7,010) | | | 342 | | | 123 | | | (2,284) | | | 117,825 | | | | | | | | | | | | | | | | | | | Three months ended March 31, 2021 | Non-Nelnet Bank: | | | | | | | | | | | | | | | | Federally insured loans | $ | 128,590 | | | | | (7,483) | | | (61) | | | — | | | 800 | | | — | | | 121,846 | | Private education loans | 19,529 | | | | | 1,431 | | | (493) | | | 202 | | | — | | | 1 | | | 20,670 | | Consumer loans | 27,256 | | | | | (11,418) | | | (1,950) | | | 246 | | | — | | | — | | | 14,134 | | Nelnet Bank: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Private education loans | 323 | | | | | 422 | | | — | | | — | | | — | | | (1) | | | 744 | | | | | | | | | | | | | | | | | | | $ | 175,698 | | | | | (17,048) | | | (2,504) | | | 448 | | | 800 | | | — | | | 157,394 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
(a) During the three months ended March 31, 2022 and 2021, the Company acquired $9.2 million (par value) and $54.0 million (par value), respectively, of federally insured rehabilitation loans that met the definition of purchased loans with credit deterioration ("PCD loans") when they were purchased by the Company.
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Loan Status and Delinquencies |
The table below shows the Company’s loan status and delinquency amounts. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of March 31, 2022 | | As of December 31, 2021 | | As of March 31, 2021 | Federally insured loans - Non-Nelnet Bank: | | | | | | | | | | | | | | | | | | Loans in-school/grace/deferment | $ | 839,566 | | | 5.2 | % | | | | $ | 829,624 | | | 4.9 | % | | | | $ | 1,006,605 | | | 5.4 | % | | | Loans in forbearance | 1,160,048 | | | 7.1 | | | | | 1,118,667 | | | 6.5 | | | | | 1,936,553 | | | 10.4 | | | | Loans in repayment status: | | | | | | | | | | | | | | | | | | Loans current | 12,352,543 | | | | | 86.4 | % | | 12,847,685 | | | | | 84.9 | % | | 13,787,038 | | | | | 88.0 | % | Loans delinquent 31-60 days | 462,750 | | | | | 3.2 | | | 895,656 | | | | | 5.9 | | | 425,599 | | | | | 2.7 | | Loans delinquent 61-90 days | 282,810 | | | | | 2.0 | | | 352,449 | | | | | 2.3 | | | 234,871 | | | | | 1.5 | | Loans delinquent 91-120 days | 202,371 | | | | | 1.4 | | | 251,075 | | | | | 1.7 | | | 125,471 | | | | | 0.8 | | Loans delinquent 121-270 days | 712,753 | | | | | 5.0 | | | 592,449 | | | | | 3.9 | | | 1,026,050 | | | | | 6.6 | | Loans delinquent 271 days or greater | 282,536 | | | | | 2.0 | | | 203,442 | | | | | 1.3 | | | 63,196 | | | | | 0.4 | | Total loans in repayment | 14,295,763 | | | 87.7 | | | 100.0 | % | | 15,142,756 | | | 88.6 | | | 100.0 | % | | 15,662,225 | | | 84.2 | | | 100.0 | % | Total federally insured loans | 16,295,377 | | | 100.0 | % | | | | 17,091,047 | | | 100.0 | % | | | | 18,605,383 | | | 100.0 | % | | | Accrued interest receivable | 770,853 | | | | | | | 784,716 | | | | | | | 791,199 | | | | | | Loan discount, net of unamortized premiums and deferred origination costs | (27,317) | | | | | | | (28,309) | | | | | | | (14,608) | | | | | | Allowance for loan losses | (95,995) | | | | | | | (103,381) | | | | | | | (121,846) | | | | | | Total federally insured loans and accrued interest receivable, net of allowance for loan losses | $ | 16,942,918 | | | | | | | $ | 17,744,073 | | | | | | | $ | 19,260,128 | | | | | | Private education loans - Non-Nelnet Bank: | | | | | | | | | | | | | | | | | | Loans in-school/grace/deferment | $ | 10,226 | | | 3.7 | % | | | | $ | 9,661 | | | 3.2 | % | | | | $ | 10,405 | | | 3.3 | % | | | Loans in forbearance | 2,838 | | | 1.0 | | | | | 3,601 | | | 1.2 | | | | | 7,567 | | | 2.4 | | | | Loans in repayment status: | | | | | | | | | | | | | | | | | | Loans current | 260,911 | | | | | 98.3 | % | | 280,457 | | | | | 98.0 | % | | 292,840 | | | | | 98.9 | % | Loans delinquent 31-60 days | 1,699 | | | | | 0.6 | | | 2,403 | | | | | 0.8 | | | 1,343 | | | | | 0.5 | | Loans delinquent 61-90 days | 1,040 | | | | | 0.4 | | | 976 | | | | | 0.3 | | | 843 | | | | | 0.3 | | Loans delinquent 91 days or greater | 1,823 | | | | | 0.7 | | | 2,344 | | | | | 0.9 | | | 1,050 | | | | | 0.3 | | Total loans in repayment | 265,473 | | | 95.3 | | | 100.0 | % | | 286,180 | | | 95.6 | | | 100.0 | % | | 296,076 | | | 94.3 | | | 100.0 | % | Total private education loans | 278,537 | | | 100.0 | % | | | | 299,442 | | | 100.0 | % | | | | 314,048 | | | 100.0 | % | | | Accrued interest receivable | 1,898 | | | | | | | 1,960 | | | | | | | 2,303 | | | | | | Loan discount, net of unamortized premiums | (598) | | | | | | | (1,123) | | | | | | | 2,673 | | | | | | Allowance for loan losses | (14,622) | | | | | | | (16,143) | | | | | | | (20,670) | | | | | | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 265,215 | | | | | | | $ | 284,136 | | | | | | | $ | 298,354 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | As of March 31, 2022 | | As of December 31, 2021 | | As of March 31, 2021 | Consumer loans - Non-Nelnet Bank: | | | | | | | | | | | | | | | | | | Loans in deferment | $ | 72 | | | 0.2 | % | | | | $ | 43 | | | 0.1 | % | | | | $ | 306 | | | 0.3 | % | | | Loans in repayment status: | | | | | | | | | | | | | | | | | | Loans current | 43,424 | | | | | 97.3 | % | | 49,697 | | | | | 97.0 | % | | 108,126 | | | | | 97.9 | % | Loans delinquent 31-60 days | 255 | | | | | 0.5 | | | 414 | | | | | 0.8 | | | 760 | | | | | 0.7 | | Loans delinquent 61-90 days | 304 | | | | | 0.7 | | | 322 | | | | | 0.6 | | | 577 | | | | | 0.5 | | Loans delinquent 91 days or greater | 658 | | | | | 1.5 | | | 825 | | | | | 1.6 | | | 1,023 | | | | | 0.9 | | Total loans in repayment | 44,641 | | | 99.8 | | | 100.0 | % | | 51,258 | | | 99.9 | | | 100.0 | % | | 110,486 | | | 99.7 | % | | 100.0 | % | Total consumer loans | 44,713 | | | 100.0 | % | | | | 51,301 | | | 100.0 | % | | | | 110,792 | | | 100.0 | % | | | Accrued interest receivable | 374 | | | | | | | 396 | | | | | | | 934 | | | | | | Loan premium | 1,040 | | | | | | | 913 | | | | | | | 1,845 | | | | | | Allowance for loan losses | (5,710) | | | | | | | (6,481) | | | | | | | (14,134) | | | | | | Total consumer loans and accrued interest receivable, net of allowance for loan losses | $ | 40,417 | | | | | | | $ | 46,129 | | | | | | | $ | 99,437 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Federally insured loans - Nelnet Bank (a): | | | | | | | | | | | | | | | | | | Loans in-school/grace/deferment | $ | 286 | | | 0.3 | % | | | | $ | 330 | | | 0.4 | % | | | | | | | | | Loans in forbearance | 948 | | | 1.2 | | | | | 1,057 | | | 1.2 | | | | | | | | | | Loans in repayment status: | | | | | | | | | | | | | | | | | | Loans current | 80,421 | | | | | 98.6 | % | | 85,599 | | | | | 98.8 | % | | | | | | | Loans delinquent 30-59 days | 402 | | | | | 0.5 | | | 816 | | | | | 1.0 | | | | | | | | Loans delinquent 60-89 days | 427 | | | | | 0.5 | | | — | | | | | — | | | | | | | | Loans delinquent 90-119 days | 90 | | | | | 0.1 | | | — | | | | | — | | | | | | | | Loans delinquent 120-270 days | 157 | | | | | 0.2 | | | 209 | | | | | 0.2 | | | | | | | | Loans delinquent 271 days or greater | 58 | | | | | 0.1 | | | — | | | | | — | | | | | | | | Total loans in repayment | 81,555 | | | 98.5 | | | 100.0 | % | | 86,624 | | | 98.4 | | | 100.0 | % | | | | | | | Total federally insured loans | 82,789 | | | 100.0 | % | | | | 88,011 | | | 100.0 | % | | | | | | | | | Accrued interest receivable | 1,231 | | | | | | | 1,216 | | | | | | | | | | | | Loan premium | 25 | | | | | | | 26 | | | | | | | | | | | | Allowance for loan losses | (247) | | | | | | | (268) | | | | | | | | | | | | Total federally insured loans and accrued interest receivable, net of allowance for loan losses | $ | 83,798 | | | | | | | $ | 88,985 | | | | | | | | | | | | Private education loans - Nelnet Bank (a): | | | | | | | | | | | | | | | | | | Loans in-school/grace/deferment | $ | 497 | | | 0.2 | % | | | | $ | 150 | | | 0.1 | % | | | | $ | 82 | | | 0.1 | % | | | Loans in forbearance | 317 | | | 0.1 | | | | | 460 | | | 0.3 | | | | | 29 | | | — | | | | Loans in repayment status: | | | | | | | | | | | | | | | | | | Loans current | 284,081 | | | | | 99.8 | % | | 169,157 | | | | | 99.9 | % | | 79,120 | | | | | 100.0 | % | Loans delinquent 30-59 days | 422 | | | | | 0.2 | | | 51 | | | | | — | | | — | | | | | — | | Loans delinquent 60-89 days | 78 | | | | | — | | | — | | | | | — | | | — | | | | | — | | Loans delinquent 90 days or greater | 73 | | | | | — | | | 72 | | | | | 0.1 | | | — | | | | | — | | Total loans in repayment | 284,654 | | | 99.7 | | | 100.0 | % | | 169,280 | | | 99.6 | | | 100.0 | % | | 79,120 | | | 99.9 | | | 100.0 | % | Total private education loans | 285,468 | | | 100.0 | % | | | | 169,890 | | | 100.0 | % | | | | 79,231 | | | 100.0 | % | | | Accrued interest receivable | 418 | | | | | | | 264 | | | | | | | 125 | | | | | | Deferred origination costs | 4,593 | | | | | | | 2,560 | | | | | | | 999 | | | | | | Allowance for loan losses | (1,251) | | | | | | | (840) | | | | | | | (744) | | | | | | Total private education loans and accrued interest receivable, net of allowance for loan losses | $ | 289,228 | | | | | | | $ | 171,874 | | | | | | | $ | 79,611 | | | | | |
(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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Loans Receivable Credit Quality Indicators |
The following tables highlight the gross principal balance of Nelnet Bank's private education loan portfolio, by year of origination, stratified by FICO score at the time of origination. | | | | | | | | | | | | | | | | | | | | | | | | | Loan balance as of March 31, 2022 | | Three months ended March 31, 2022 | | 2021 | | 2020 | | Total | FICO at origination: | | | | | | | | Less than 705 | $ | 2,097 | | | 5,841 | | | 99 | | | 8,037 | | 705 - 734 | 10,935 | | | 11,391 | | | 272 | | | 22,598 | | 735 - 764 | 17,278 | | | 17,906 | | | 1,049 | | | 36,233 | | 765 - 794 | 34,510 | | | 34,100 | | | 1,389 | | | 69,999 | | Greater than 794 | 62,116 | | | 79,633 | | | 6,852 | | | 148,601 | | | $ | 126,936 | | | 148,871 | | | 9,661 | | | 285,468 | |
| | | | | | | | | | | | | | | | | | | Loan balance as of December 31, 2021 | | 2021 | | 2020 | | Total | FICO at origination: | | | | | | Less than 705 | $ | 6,481 | | | 100 | | | 6,581 | | 705 - 734 | 11,697 | | | 276 | | | 11,973 | | 735 - 764 | 18,611 | | | 1,072 | | | 19,683 | | 765 - 794 | 36,274 | | | 1,467 | | | 37,741 | | Greater than 794 | 86,141 | | | 7,771 | | | 93,912 | | | $ | 159,204 | | | 10,686 | | | 169,890 | |
The following table presents the amortized cost of the Company's private education and consumer loans by loan status and delinquency amount as of March 31, 2022 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. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | Three months ended March 31, 2022 | | 2021 | | 2020 | | 2019 | | 2018 | | Prior years | | Total | Private education loans - Non-Nelnet Bank: | | | | | | | | | | | | | | Loans in school/grace/deferment | $ | 121 | | | 3,030 | | | 1,899 | | | 3,318 | | | — | | | 1,858 | | | 10,226 | | Loans in forbearance | — | | | 10 | | | 372 | | | 858 | | | 181 | | | 1,417 | | | 2,838 | | Loans in repayment status: | | | | | | | | | | | | | | Loans current | 1,452 | | | 2,796 | | | 60,651 | | | 46,107 | | | 284 | | | 149,621 | | | 260,911 | | Loans delinquent 31-60 days | — | | | 2 | | | 10 | | | 239 | | | — | | | 1,448 | | | 1,699 | | Loans delinquent 61-90 days | — | | | 13 | | | 102 | | | — | | | — | | | 925 | | | 1,040 | | Loans delinquent 91 days or greater | — | | | — | | | 87 | | | — | | | — | | | 1,736 | | | 1,823 | | Total loans in repayment | 1,452 | | | 2,811 | | | 60,850 | | | 46,346 | | | 284 | | | 153,730 | | | 265,473 | | Total private education loans | $ | 1,573 | | | 5,851 | | | 63,121 | | | 50,522 | | | 465 | | | 157,005 | | | 278,537 | | Accrued interest receivable | | | | | | | | | | | | | 1,898 | | Loan discount, net of unamortized premiums | | | | | | | | | | | | | (598) | | Allowance for loan losses | | | | | | | | | | | | | (14,622) | | Total private education loans and accrued interest receivable, net of allowance for loan losses | | | | | | | | | | | | | $ | 265,215 | | | | | | | | | | | | | | | | Consumer loans - Non-Nelnet Bank: | | | | | | | | | | | | | | Loans in deferment | $ | — | | | 34 | | | — | | | 32 | | | 6 | | | — | | | 72 | | Loans in repayment status: | | | | | | | | | | | | | | Loans current | 17,335 | | | 17,475 | | | 574 | | | 3,738 | | | 4,243 | | | 59 | | | 43,424 | | Loans delinquent 31-60 days | 32 | | | 74 | | | 15 | | | 99 | | | 31 | | | 4 | | | 255 | | Loans delinquent 61-90 days | — | | | 181 | | | 50 | | | 12 | | | 57 | | | 4 | | | 304 | | Loans delinquent 91 days or greater | — | | | 54 | | | 39 | | | 208 | | | 357 | | | — | | | 658 | | Total loans in repayment | 17,367 | | | 17,784 | | | 678 | | | 4,057 | | | 4,688 | | | 67 | | | 44,641 | | Total consumer loans | $ | 17,367 | | | 17,818 | | | 678 | | | 4,089 | | | 4,694 | | | 67 | | | 44,713 | | Accrued interest receivable | | | | | | | | | | | | | 374 | | Loan premium | | | | | | | | | | | | | 1,040 | | Allowance for loan losses | | | | | | | | | | | | | (5,710) | | Total consumer loans and accrued interest receivable, net of allowance for loan losses | | | | | | | | | | | | | $ | 40,417 | | | | | | | | | | | | | | | | Private education loans - Nelnet Bank (a): | | | | | | | | | | | | | | Loans in school/grace/deferment | $ | 133 | | | 364 | | | — | | | — | | | — | | | — | | | 497 | | Loans in forbearance | 139 | | | 178 | | | — | | | — | | | — | | | — | | | 317 | | Loans in repayment status: | | | | | | | | | | | | | | Loans current | 126,380 | | | 148,040 | | | 9,661 | | | — | | | — | | | — | | | 284,081 | | Loans delinquent 30-59 days | 284 | | | 138 | | | — | | | — | | | — | | | — | | | 422 | | Loans delinquent 60-89 days | — | | | 78 | | | — | | | — | | | — | | | — | | | 78 | | Loans delinquent 90 days or greater | — | | | 73 | | | — | | | — | | | — | | | — | | | 73 | | Total loans in repayment | 126,664 | | | 148,329 | | | 9,661 | | | — | | | — | | | — | | | 284,654 | | Total private education loans | $ | 126,936 | | | 148,871 | | | 9,661 | | | — | | | — | | | — | | | 285,468 | | Accrued interest receivable | | | | | | | | | | | | | 418 | | Deferred origination costs | | | | | | | | | | | | | 4,593 | | Allowance for loan losses | | | | | | | | | | | | | (1,251) | | Total private education loans and accrued interest receivable, net of allowance for loan losses | | | | | | | | | | | | | $ | 289,228 | |
(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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