LINCOLN,
Neb., Aug. 7, 2023 /PRNewswire/
-- Nelnet (NYSE: NNI) today reported GAAP net income of
$28.3 million, or $0.75 per share, for the second quarter of 2023,
compared with GAAP net income of $85.1
million, or $2.26 per share,
for the same period a year ago.
Net income, excluding derivative market value
adjustments1, was $26.7
million, or $0.71 per share,
for the second quarter of 2023, compared with $54.4 million, or $1.44 per share, for the same period in 2022.
In April 2023, the company
redeemed certain 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 non-cash expense of $25.9 million ($19.7
million or $0.53 per share
after tax) recognized by the company in the second quarter of
2023.
"The details of the quarter highlight the strength and
resilience of our core operating businesses, which performed well
in the second quarter," said Jeff
Noordhoek, chief executive officer of Nelnet. "The beginning
of the school year is an exciting time for Nelnet. We are fortunate
to serve millions of students and their families and thousands of
higher education and K-12 institutions with tuition payment plans,
loan servicing, student loans, and numerous services and technology
for administrations. This school year also brings with it the
complexity and opportunity of assisting more than 15 million
federal student loan borrowers return to making payments for the
first time since March of 2020."
Nelnet operates four primary business segments, earning interest
income on loans in its Asset Generation and Management (AGM) and
Nelnet Bank segments, and fee-based revenue in its Loan Servicing
and Systems and Education Technology, Services, and Payment
Processing segments. Other business activities and operating
segments that are not reportable are combined and included in
corporate activities. Corporate activities also includes income
earned on the majority of the company's investments.
Asset Generation and Management
The AGM operating segment reported net interest income of
$21.5 million during the second
quarter of 2023. Net interest income for the period includes the
$25.9 million expense recognized by
the company as a result of redeeming bonds prior to their maturity.
Excluding this expense, net interest income for the three months
ended June 30, 2023, was $47.4 million, compared with $70.7 million for the same period a year ago. The
decrease in 2023 was due to the expected runoff of the loan
portfolio and a decrease in core loan spread. The average balance
of loans outstanding decreased from $16.4
billion for the second quarter of 2022 to $13.6 billion for the same period in 2023.
Core loan spread2 decreased to 1.06% for the quarter
ended June 30, 2023, compared with
1.61% for the same period in 2022. Core loan spread was impacted in
the second quarter of 2023 by higher interest rates. The company
has a portfolio of student loans that are earning interest at a
fixed borrower rate and that are financed with variable rate debt.
As a result, in a low interest rate environment, the company earns
additional spread income that it refers to as floor income. Due to
higher interest rates, floor income recognized by the company
decreased to $0.5 million for the
three months ended June 30, 2023,
compared with $22.0 million for the
same period in 2022.
AGM recognized net income after tax of $13.5 million for the three months ended
June 30, 2023, compared with
$75.5 million for the same period in
2022.
AGM recognized gains from the sale of loans in the second
quarter of 2023 of $15.5 million
($11.8 million after tax). In
addition, in the second quarter of 2023, AGM recognized income of
$0.9 million ($0.7 million after tax) related to changes in the
fair value of derivative instruments that do not qualify for hedge
accounting, compared with income of $40.4
million ($30.7 million after
tax) for the same period in 2022.
Nelnet Bank
As of June 30, 2023, Nelnet Bank
had a $444.5 million loan portfolio
and total deposits, including intercompany deposits, of
$871.4 million. Nelnet Bank
recognized net income after tax for the quarter ended June 30, 2023 of $1.3
million, compared with $0.4
million for the same period in 2022.
Loan Servicing and Systems
Revenue from the Loan Servicing and Systems segment was
$122.0 million for the second quarter
of 2023, compared with $124.9 million
for the same period in 2022.
As of June 30, 2023, the company
was servicing $559.1 billion in
government-owned, FFEL Program, private education, and consumer
loans for 16.6 million borrowers, compared with $589.5 billion in servicing volume for 17.4
million borrowers as of June 30,
2022.
The Loan Servicing and Systems segment reported net income after
tax of $12.9 million for the three
months ended June 30, 2023, compared
with $10.3 million for the same
period in 2022. Operating margin improved in 2023 compared with
2022 due to a decrease in operating expenses, primarily salaries
and benefits. The company reduced staff in the first and second
quarters of 2023 to manage expenses due to the delays in the
government's student debt relief and return to repayment programs
and lower pricing and reduced servicing volume for the company's
federal servicing contracts.
On April 24, 2023, the company
received a contract award from the Department of Education
(Department) to provide continued servicing functions for the
Department. The Unified Servicing and Data Solution (USDS) contract
will replace the existing legacy Department student loan servicing
contracts that were scheduled to expire in December 2023. According to the Department, the
legacy servicer contracts will be extended through December 2024 to help facilitate a smooth
transition for borrowers. The USDS contract has a five-year base
period, with five years of possible extensions.
Education Technology, Services, and Payment
Processing
For the second quarter of 2023, revenue from the Education
Technology, Services, and Payment Processing operating segment was
$109.9 million, an increase from
$91.0 million for the same period in
2022. Revenue less direct costs to provide services for the second
quarter of 2023 was $69.5 million,
compared with $60.2 million for the
same period in 2022.
Net income after tax for the Education Technology, Services, and
Payment Processing segment was $13.7
million for the three months ended June 30, 2023, compared with $11.2 million for the same period in 2022.
Included in net income for the three months ended June 30, 2023 and 2022 was $5.3 million ($4.0
million after tax) and $0.9
million ($0.7 million after
tax) of interest income, respectively. The increase in interest
income was due to an increase in interest rates in 2023 compared
with 2022.
Corporate Activities
During the second quarter of 2023, the company recognized a loss
of $12.2 million ($9.3 million after tax) on its 45 percent voting
membership interests in ALLO Holdings LLC, a holding company for
ALLO Communications LLC (ALLO), compared with a loss of
$16.9 million ($12.8 million after tax) for the same period in
2022.
In addition, the company recognized net investment losses of
$1.6 million ($1.2 million after tax) for the three months
ended June 30, 2023, compared with
net investment income and gains of $18.3
million ($13.9 million after
tax) for the same period in 2022.
Board of Directors Declares Third Quarter Dividend
The Nelnet Board of Directors declared a third quarter cash
dividend on the company's outstanding shares of Class A common
stock and Class B common stock of $0.26 per share. The dividend will be paid on
September 15, 2023, to shareholders of record at the close of
business on September 1, 2023.
Forward-Looking and Cautionary Statements
This press release contains forward-looking statements within
the meaning of federal securities laws. The words "anticipate,"
"assume," "believe," "continue," "could," "ensure," "estimate,"
"expect," "forecast," "future," "intend," "may," "plan,"
"potential," "predict," "scheduled," "should," "will," "would," and
similar expressions, as well as statements in future tense, are
intended to identify forward-looking statements. These statements
are based on management's current expectations as of the date of
this release and are subject to known and unknown risks,
uncertainties, assumptions, and other factors that may cause the
actual results and performance to be materially different from any
future results or performance expressed or implied by such
forward-looking statements. Such risks and uncertainties include,
but are not limited to: risks related to the ability to
successfully maintain and increase allocated volumes of student
loans serviced by the company under existing and future servicing
contracts with the Department and risks related to the company's
ability to comply with agreements with third-party customers for
the servicing of Federal Direct Loan Program, FFEL Program, private
education, and consumer loans; loan portfolio risks such as
interest rate basis and repricing risk, the risk of loss of floor
income on certain student loans originated under the FFEL Program,
risks related to the use of derivatives to manage exposure to
interest rate fluctuations, uncertainties regarding the expected
benefits from purchased securitized and unsecuritized FFEL Program,
private education, consumer, and other loans, or investment
interests therein, and initiatives to purchase additional FFEL
Program, private education, consumer, and other loans, and risks
from changes in levels of loan prepayment or default rates;
financing and liquidity risks, including risks of changes in the
interest rate environment; risks from changes in the terms of
education loans and in the educational credit and services markets
resulting from changes in applicable laws, regulations, and
government programs and budgets; risks related to a breach of or
failure in the company's operational or information systems or
infrastructure, or those of third-party vendors, including
disclosure of confidential or personal information and/or damage to
reputation resulting from cyber-breaches; uncertainties inherent in
forecasting future cash flows from student loan assets and related
asset-backed securitizations; risks and uncertainties of the
expected benefits from the November
2020 launch of Nelnet Bank operations, including the ability
to successfully conduct banking operations and achieve expected
market penetration; risks related to the expected benefits to the
company from its continuing investment in ALLO, and risks related
to investments in solar projects, including risks of not being able
to realize tax credits which remain subject to recapture by taxing
authorities; risks and uncertainties related to other initiatives
to pursue additional strategic investments (and anticipated income
therefrom), acquisitions, and other activities, including
activities that are intended to diversify the company both within
and outside of its historical core education-related businesses;
risks and uncertainties associated with climate change; risks from
changes in economic conditions and consumer behavior; risks related
to the company's ability to adapt to technological change; risks
related to the exclusive forum provisions in the company's articles
of incorporation; risks related to the company's executive
chairman's ability to control matters related to the company
through voting rights; risks related to related party transactions;
concerns about the downgrade of the U.S. credit rating; risks
related to natural disasters, terrorist activities, or
international hostilities; and risks and uncertainties associated
with litigation matters and with maintaining compliance with the
extensive regulatory requirements applicable to the company's
businesses.
For more information, see the "Risk Factors" sections and other
cautionary discussions of risks and uncertainties included in
documents filed or furnished by the company with the Securities and
Exchange Commission. All forward-looking statements in this release
are as of the date of this release. Although the company may
voluntarily update or revise its forward-looking statements from
time to time to reflect actual results or changes in the company's
expectations, the company disclaims any commitment to do so except
as required by law.
Non-GAAP Performance Measures
The company prepares its financial statements and presents its
financial results in accordance with U.S. GAAP. However, it also
provides additional non-GAAP financial information related to
specific items management believes to be important in the
evaluation of its operating results and performance.
Reconciliations of GAAP to non-GAAP financial information, and a
discussion of why the company believes providing this additional
information is useful to investors, is provided in the "Non-GAAP
Disclosures" section below.
1
|
Net income, excluding
derivative market value adjustments, is a non-GAAP measure. See
"Non-GAAP Performance Measures" at the end of this press release
and the "Non-GAAP Disclosures" section below for explanatory
information and reconciliations of GAAP to non-GAAP financial
information.
|
2
|
Core loan spread and
the related net interest income net of derivative settlements are
non-GAAP measures. See "Non-GAAP Performance Measures" at the end
of this press release and the "Non-GAAP Disclosures" section below
for explanatory information and reconciliations of GAAP to non-GAAP
financial information.
|
Consolidated Statements of
Income
(Dollars in thousands,
except share data)
(unaudited)
|
|
|
Three months ended
|
|
Six months ended
|
|
June 30,
2023
|
|
March 31,
2023
|
|
June 30,
2022
|
|
June 30,
2023
|
|
June 30,
2022
|
Interest
income:
|
|
|
|
|
|
|
|
|
|
Loan
interest
|
$ 243,045
|
|
225,243
|
|
134,706
|
|
468,288
|
|
246,083
|
Investment
interest
|
40,982
|
|
40,725
|
|
16,881
|
|
81,707
|
|
30,700
|
Total interest
income
|
284,027
|
|
265,968
|
|
151,587
|
|
549,995
|
|
276,783
|
Interest expense on
bonds and notes payable and bank deposits
|
233,148
|
|
199,449
|
|
73,642
|
|
432,597
|
|
121,721
|
Net interest
income
|
50,879
|
|
66,519
|
|
77,945
|
|
117,398
|
|
155,062
|
Less provision for loan
losses
|
9,592
|
|
34,275
|
|
9,409
|
|
43,867
|
|
8,974
|
Net interest income
after provision for loan losses
|
41,287
|
|
32,244
|
|
68,536
|
|
73,531
|
|
146,088
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
|
Loan servicing and
systems revenue
|
122,020
|
|
139,227
|
|
124,873
|
|
261,247
|
|
261,241
|
Education technology,
services, and payment processing revenue
|
109,858
|
|
133,603
|
|
91,031
|
|
243,462
|
|
203,317
|
Solar construction
revenue
|
4,735
|
|
8,651
|
|
—
|
|
13,386
|
|
—
|
Other, net
|
(7,011)
|
|
(14,071)
|
|
12,647
|
|
(21,083)
|
|
22,524
|
Gain on sale of loans,
net
|
15,511
|
|
11,812
|
|
—
|
|
27,323
|
|
2,989
|
Impairment
expense
|
—
|
|
—
|
|
(6,284)
|
|
—
|
|
(6,284)
|
Derivative market value
adjustments and derivative settlements, net
|
2,070
|
|
(14,074)
|
|
45,024
|
|
(12,005)
|
|
187,949
|
Total other income
(expense), net
|
247,183
|
|
265,148
|
|
267,291
|
|
512,330
|
|
671,736
|
Cost of
services:
|
|
|
|
|
|
|
|
|
|
Cost to provide
education technology, services, and payment processing
services
|
40,407
|
|
47,704
|
|
30,852
|
|
88,110
|
|
66,397
|
Cost to provide solar
construction services
|
9,122
|
|
8,299
|
|
—
|
|
17,422
|
|
—
|
Total cost of
services
|
49,529
|
|
56,003
|
|
30,852
|
|
105,532
|
|
66,397
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
|
Salaries and
benefits
|
144,706
|
|
152,710
|
|
141,398
|
|
297,416
|
|
290,813
|
Depreciation and
amortization
|
18,652
|
|
16,627
|
|
18,250
|
|
35,279
|
|
35,206
|
Other
expenses
|
45,997
|
|
40,785
|
|
36,940
|
|
86,781
|
|
76,439
|
Total operating
expenses
|
209,355
|
|
210,122
|
|
196,588
|
|
419,476
|
|
402,458
|
Income before income
taxes
|
29,586
|
|
31,267
|
|
108,387
|
|
60,853
|
|
348,969
|
Income tax
expense
|
(10,491)
|
|
(8,250)
|
|
(25,483)
|
|
(18,741)
|
|
(81,180)
|
Net income
|
19,095
|
|
23,017
|
|
82,904
|
|
42,112
|
|
267,789
|
Net loss attributable
to noncontrolling interests
|
9,172
|
|
3,470
|
|
2,225
|
|
12,642
|
|
3,987
|
Net income
attributable to Nelnet, Inc.
|
$
28,267
|
|
26,487
|
|
85,129
|
|
54,754
|
|
271,776
|
Earnings per common
share:
|
|
|
|
|
|
|
|
|
|
Net income
attributable to Nelnet, Inc. shareholders - basic and
diluted
|
$
0.75
|
|
0.71
|
|
2.26
|
|
1.46
|
|
7.18
|
Weighted average
common shares outstanding - basic and diluted
|
37,468,397
|
|
37,344,604
|
|
37,710,214
|
|
37,406,843
|
|
37,875,108
|
Condensed Consolidated Balance
Sheets
(Dollars in
thousands)
(unaudited)
|
|
|
As of
|
|
As of
|
|
As of
|
|
June 30, 2023
|
|
December 31, 2022
|
|
June 30, 2022
|
Assets:
|
|
|
|
|
|
Loans and accrued
interest receivable, net
|
$
14,360,612
|
|
15,243,889
|
|
16,916,344
|
Cash, cash equivalents,
and investments
|
2,128,075
|
|
2,230,063
|
|
2,116,949
|
Restricted
cash
|
692,256
|
|
1,239,470
|
|
1,045,543
|
Goodwill and intangible
assets, net
|
234,195
|
|
240,403
|
|
219,203
|
Other assets
|
392,494
|
|
420,219
|
|
325,974
|
Total
assets
|
$
17,807,632
|
|
19,374,044
|
|
20,624,013
|
Liabilities:
|
|
|
|
|
|
Bonds and notes
payable
|
$
13,070,140
|
|
14,637,195
|
|
16,115,269
|
Bank
deposits
|
731,046
|
|
691,322
|
|
588,474
|
Other
liabilities
|
758,932
|
|
845,625
|
|
829,125
|
Total
liabilities
|
14,560,118
|
|
16,174,142
|
|
17,532,868
|
Equity:
|
|
|
|
|
|
Total Nelnet, Inc.
shareholders' equity
|
3,259,279
|
|
3,198,959
|
|
3,097,382
|
Noncontrolling
interests
|
(11,765)
|
|
943
|
|
(6,237)
|
Total
equity
|
3,247,514
|
|
3,199,902
|
|
3,091,145
|
Total liabilities and
equity
|
$
17,807,632
|
|
19,374,044
|
|
20,624,013
|
Non-GAAP Disclosures
(Dollars in thousands, except
share data)
(unaudited)
Non-GAAP financial measures disclosed by management are meant to
provide additional information and insight relative to business
trends to investors and, in certain cases, to present financial
information as measured by rating agencies and other users of
financial information. These measures are not in accordance with,
or a substitute for, GAAP and may be different from, or
inconsistent with, non-GAAP financial measures used by other
companies. The company reports this non-GAAP information because
the company believes that it provides additional information
regarding operational and performance indicators that are closely
assessed by management. There is no comprehensive, authoritative
guidance for the presentation of such non-GAAP information, which
is only meant to supplement GAAP results by providing additional
information that management utilizes to assess performance.
Net income,
excluding derivative market value adjustments
|
|
|
Three months ended June 30,
|
|
2023
|
|
2022
|
GAAP net income
attributable to Nelnet, Inc.
|
$
28,267
|
|
85,129
|
Realized and unrealized
derivative market value adjustments (a)
|
(2,005)
|
|
(40,401)
|
Tax effect
(b)
|
481
|
|
9,696
|
Non-GAAP net income
attributable to Nelnet, Inc., excluding derivative market value
adjustments
|
$
26,743
|
|
54,424
|
|
|
|
|
Earnings per
share:
|
|
|
|
GAAP net income
attributable to Nelnet, Inc.
|
$
0.75
|
|
2.26
|
Realized and unrealized
derivative market value adjustments (a)
|
(0.05)
|
|
(1.07)
|
Tax effect
(b)
|
0.01
|
|
0.25
|
Non-GAAP net income
attributable to Nelnet, Inc., excluding derivative market value
adjustments
|
$
0.71
|
|
1.44
|
|
|
(a)
|
"Derivative market
value adjustments" includes both the realized portion of gains and
losses (corresponding to variation margin received or paid on
derivative instruments that are settled daily at a central
clearinghouse) and the unrealized portion of gains and losses that
are caused by changes in fair values of derivatives which do not
qualify for "hedge treatment" under GAAP. "Derivative market value
adjustments" does not include "derivative settlements" that
represent the cash paid or received during the current period to
settle with derivative instrument counterparties the economic
effect of the company's derivative instruments based on their
contractual terms.
|
|
The accounting for
derivatives requires that changes in the fair value of derivative
instruments be recognized currently in earnings, with no fair value
adjustment of the hedged item, unless specific hedge accounting
criteria is met. Management has structured all of the
company's derivative transactions with the intent that each is
economically effective; however, the company's derivative
instruments do not qualify for hedge accounting. As a result,
the change in fair value of derivative instruments is reported in
current period earnings with no consideration for the corresponding
change in fair value of the hedged item. Under GAAP, the
cumulative net realized and unrealized gain or loss caused by
changes in fair values of derivatives in which the company plans to
hold to maturity will equal zero over the life of the contract.
However, the net realized and unrealized gain or loss during any
given reporting period fluctuates significantly from period to
period.
|
|
The company believes
these point-in-time estimates of asset and liability values related
to its derivative instruments that are subject to interest rate
fluctuations are subject to volatility mostly due to timing and
market factors beyond the control of management, and affect the
period-to-period comparability of the results of operations.
Accordingly, the company's management utilizes operating results
excluding these items for comparability purposes when making
decisions regarding the company's performance and in presentations
with credit rating agencies, lenders, and investors.
|
(b)
|
The tax effects are
calculated by multiplying the realized and unrealized derivative
market value adjustments by the applicable statutory income tax
rate.
|
Core loan spread
The following table analyzes the loan spread on AGM's portfolio
of loans, which represents the spread between the yield earned on
loan assets and the costs of the liabilities and derivative
instruments used to fund the assets. The spread amounts included in
the following table are calculated by using the notional dollar
values found in the "Net interest income, net of settlements on
derivatives" table on the following page, divided by the average
balance of loans or debt outstanding.
|
Three months ended June 30,
|
|
2023
|
|
2022
|
Variable loan yield,
gross
|
7.73 %
|
|
3.59 %
|
Consolidation rebate
fees
|
(0.80)
|
|
(0.85)
|
Discount accretion, net
of premium and deferred origination costs amortization
|
0.06
|
|
0.03
|
Variable loan yield,
net
|
6.99
|
|
2.77
|
Loan cost of funds -
interest expense (a)
|
(5.94)
|
|
(1.73)
|
Loan cost of funds -
derivative settlements (b) (c)
|
(0.00)
|
|
0.02
|
Variable loan
spread
|
1.05
|
|
1.06
|
Fixed rate floor
income, gross
|
0.01
|
|
0.46
|
Fixed rate floor income
- derivative settlements (b) (d)
|
0.00
|
|
0.09
|
Fixed rate floor
income, net of settlements on derivatives
|
0.01
|
|
0.55
|
Core loan
spread
|
1.06 %
|
|
1.61 %
|
|
|
|
|
Average balance of
AGM's loans
|
$ 13,616,889
|
|
16,437,861
|
Average balance of
AGM's debt outstanding
|
13,011,224
|
|
15,923,648
|
|
|
(a)
|
In the second quarter
of 2023, the company redeemed certain asset-backed debt securities
prior to their maturity, resulting in the recognition of $25.9
million in interest expense from the write-off of the remaining
unamortized debt discount associated with these bonds at the time
of redemption. This expense was excluded from the table
above.
|
|
|
(b)
|
Derivative settlements
represent the cash paid or received during the current period to
settle with derivative instrument counterparties the economic
effect of the company's derivative instruments based on their
contractual terms. Derivative accounting requires that net
settlements with respect to derivatives that do not qualify for
"hedge treatment" under GAAP be recorded in a separate income
statement line item below net interest income. The company
maintains an overall risk management strategy that incorporates the
use of derivative instruments to reduce the economic effect of
interest rate volatility. As such, management believes
derivative settlements for each applicable period should be
evaluated with the company's net interest income (loan spread) as
presented in this table.
|
|
A reconciliation of
core loan spread, which includes the impact of derivative
settlements on loan spread, to loan spread without derivative
settlements follows.
|
|
Three months ended June 30,
|
|
2023
|
|
2022
|
Core loan
spread
|
1.06 %
|
|
1.61 %
|
Derivative settlements
(1:3 basis swaps)
|
0.00
|
|
(0.02)
|
Derivative settlements
(fixed rate floor income)
|
(0.00)
|
|
(0.09)
|
Loan spread
|
1.06 %
|
|
1.50 %
|
|
|
(c)
|
Derivative settlements
consist of net settlements (paid) received related to the company's
1:3 basis swaps.
|
(d)
|
Derivative settlements
consist of net settlements received related to the company's floor
income interest rate swaps.
|
Net interest income, net of settlements on
derivatives
The following table summarizes the components of "net interest
income" and "derivative settlements, net" from the AGM segment
statements of income.
|
Three months ended June 30,
|
|
2023
|
|
2022
|
Variable interest
income, gross
|
$
262,771
|
|
146,911
|
Consolidation rebate
fees
|
(27,211)
|
|
(34,952)
|
Discount accretion, net
of premium and deferred origination costs amortization
|
1,890
|
|
1,474
|
Variable interest
income, net
|
237,450
|
|
113,433
|
Interest on bonds and
notes payable
|
(218,602)
|
|
(68,616)
|
Derivative settlements
(basis swaps), net (a)
|
(65)
|
|
931
|
Variable loan interest
margin, net of settlements on derivatives (a)
|
18,783
|
|
45,748
|
Fixed rate floor
income, gross
|
456
|
|
18,292
|
Derivative settlements
(interest rate swaps), net (a)
|
47
|
|
3,692
|
Fixed rate floor
income, net of settlements on derivatives (a)
|
503
|
|
21,984
|
Core loan interest
income (a)
|
19,286
|
|
67,732
|
Investment
interest
|
15,857
|
|
8,671
|
Intercompany
interest
|
(13,711)
|
|
(1,092)
|
Net interest income
(net of settlements on derivatives) (a)
|
$
21,432
|
|
75,311
|
|
|
(a)
|
Core loan interest
income and net interest income (net of settlements on derivatives)
are non-GAAP financial measures. For an explanation of GAAP
accounting for derivative settlements and the reasons why the
company reports these non-GAAP measures, see footnote (b) to the
table immediately under the caption "Core loan spread"
above.
|
|
|
|
A reconciliation of net
interest income (net of settlements on derivatives) to net interest
income for the company's AGM segment follows.
|
|
Three months ended June 30,
|
|
2023
|
|
2022
|
Net interest income
(net of settlements on derivatives)
|
$
21,432
|
|
75,311
|
Derivative settlements
(1:3 basis swaps)
|
65
|
|
(931)
|
Derivative settlements
(fixed rate floor income)
|
(47)
|
|
(3,692)
|
Net interest
income
|
$
21,450
|
|
70,688
|
View original
content:https://www.prnewswire.com/news-releases/nelnet-reports-second-quarter-2023-results-301894928.html
SOURCE Nelnet, Inc.