Nelnet(US:NNI)2025-02-27 22:21Loan Servicing and Revenue - As of December 31, 2024, the Company serviced $532.4 billion of loans for 15.8 million borrowers[27] - The Company was servicing $489.9 billion of student loans for 14.0 million borrowers for the Department, representing 26% of the Company's revenue in 2024[28] - Nelnet Servicing received a five-year USDS contract from the Department, which went live on April 1, 2024, with revenue recognized starting in Q2 2024[29] - The Company expects a decrease in revenue earned on a per borrower basis under the new USDS contract compared to the legacy contract, assuming consistent borrower volume[30] - As of December 31, 2024, NDS serviced private education and consumer loans on behalf of 39 third-party servicing customers[36] Financial Performance - FACTS generated $308 million in revenue for the year ended December 31, 2024, compared to $298 million in 2023[49] - Nelnet Campus Commerce generated $141 million in revenue for the year ended December 31, 2024, up from $129 million in 2023[60] - Nelnet Payment Services generated $59 million in revenue for the year ended December 31, 2024, up from $55 million in 2023, representing a 7.3% increase[64] - Nelnet International served approximately 675 schools in 69 countries, generating $9 million in revenue for 2024, an increase from $8 million in 2023, reflecting a 12.5% growth[66] - ALLO recognized approximately $190 million in revenue for the year ended December 31, 2024, while its debt increased to approximately $1.14 billion from $715 million in 2023[93] Investments and Loan Portfolios - AGM's loan portfolio reached $9.0 billion as of December 31, 2024, with 93.7% federally insured[72] - During 2024, the company purchased $599.5 million of consumer and other non-FFELP loans to expand its loan portfolios[73] - Nelnet Bank's loan portfolio was $644.6 million as of December 31, 2024, focusing on private education and unsecured consumer loans[76] - Nelnet Bank had $1.25 billion in deposits as of December 31, 2024, including $68.5 million in intercompany deposits[77] - The Company has invested a total of $314.8 million in solar tax equity investments, with third-party investors contributing $271.4 million[86] Regulatory Compliance - The Company is subject to various federal and state regulations, including the Higher Education Act and the Dodd-Frank Act, which could impact its operations and compliance costs[100][101] - The Company anticipates additional states adopting laws regulating student loan servicers, which may increase operational costs and compliance requirements[106] - The Company must comply with the Family Educational Rights and Privacy Act (FERPA) and the Gramm-Leach-Bliley Act (GLBA), which protect student education records and customer financial information, respectively[110] - The Company is subject to compliance with the General Data Protection Regulation (GDPR) and similar laws, which impose obligations on organizations processing personal data of individuals in the EU[112] - Nelnet Bank, as an FDIC-insured institution, must maintain minimum capital ratios as prescribed by the Community Bank Leverage Ratio framework[116] Associate Engagement and Development - The total associate headcount as of December 31, 2024, is 6,739, with NDS accounting for 54.9%, NBS for 33.3%, NFS for 1.9%, and Corporate and other for 9.9%[124] - The Company achieved an overall engagement score of 74 out of 100 in the 2023 associate culture survey, slightly above the industry benchmark[127] - Associate voluntary turnover decreased to 23% in 2024, down from 24% in 2023 and 25% in 2022[128] - The company emphasizes individual development planning as part of its annual goal-setting process, providing various professional, technical, and leadership training courses[132] - The company has established relationships with trade schools, universities, and professional associations to attract talent[126] Community and Ethical Commitment - The company encourages associates to contribute to local causes and organizations, reinforcing its commitment to community support[135] - The company has a Code of Ethics and Conduct that applies to all associates, ensuring compliance with the highest levels of ethics and integrity[136] - The company maintains a comprehensive benefits package and a robust wellness program to support competitive compensation[134] - The company conducts strategic talent reviews and succession planning annually across all business areas[130] - The company has adopted internal procedures to protect its intellectual property, including trademarks, copyrights, and trade secrets[123]