Nelnet(NNI) - 2025 Q1 - Quarterly Results

Introduction and Risk Factors This section outlines forward-looking statements and various risks, including those related to student loan servicing, loan portfolio management, financing, regulatory changes, and investments Forward-Looking and Cautionary Statements This section outlines forward-looking statements based on management's expectations, subject to known and unknown risks, with no commitment to update except as legally required - Forward-looking statements are based on management's current expectations and perceptions of historical trends, current conditions, and future developments[3] - Statements are subject to known and unknown risks, uncertainties, assumptions, and other factors that may cause actual results to differ materially[3] - The Company disclaims any commitment to voluntarily update or revise forward-looking statements, except as required by law[4] Risk Factors The report highlights various risks, including those related to student loan servicing contracts, loan portfolio management (credit, prepayment, interest rate risks), financing and liquidity, regulatory changes, cybersecurity, and investments in areas like ALLO, solar tax equity, venture capital, and real estate - Risks include maintaining and increasing student loan servicing volumes under U.S. Department of Education contracts, unfavorable contract modifications, and meeting service requirements[5] - Loan portfolio risks encompass credit risk, prepayment risk, interest rate basis and repricing risk, and uncertainties regarding benefits from purchased securitized and unsecuritized loans[5] - Operational and information systems risks, including cyber breaches and the use of artificial intelligence, are also noted[5] - Investment-related risks cover ALLO Holdings, solar tax equity, venture capital, real estate, and reinsurance, including the ability to realize tax credits and achieve business objectives for Nelnet Bank[5] Consolidated Financial Statements This section presents the company's consolidated financial performance and position, including income statements and balance sheets for recent periods Consolidated Statements of Income Nelnet, Inc. reported a net income attributable to Nelnet, Inc. of $82.56 million for Q1 2025, an increase from $63.16 million in Q4 2024 and $73.41 million in Q1 2024, with earnings per common share also increasing to $2.26 in Q1 2025 Consolidated Statements of Income Highlights (Q1 2025 vs. Q4 2024 vs. Q1 2024) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :-------------------- | :------------- | :---------------- | :------------- | | Total interest income | $207,828 | $221,249 | $268,802 | | Net interest income | $82,714 | $80,079 | $74,222 | | Net income | $81,130 | $63,427 | $70,756 | | Net income attributable to Nelnet, Inc. | $82,560 | $63,159 | $73,408 | | EPS - basic and diluted | $2.26 | $1.73 | $1.98 | - Net interest income increased to $82.71 million in Q1 2025 from $80.08 million in Q4 2024 and $74.22 million in Q1 2024[6] - Total other income (expense), net, was $315.78 million in Q1 2025, slightly down from $321.53 million in Q4 2024 but up from $310.91 million in Q1 2024[6] Condensed Consolidated Balance Sheets As of March 31, 2025, Nelnet's total assets increased to $14.19 billion from $13.78 billion at December 31, 2024, but decreased from $15.37 billion at March 31, 2024, while loans and accrued interest receivable, net, saw an increase QoQ but a decrease YoY Condensed Consolidated Balance Sheets Highlights (as of March 31, 2025 vs. Dec 31, 2024 vs. March 31, 2024) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :-------------------- | :------------- | :---------------- | :------------- | | Loans and accrued interest receivable, net | $10,422,704 | $9,992,744 | $11,829,078 | | Total assets | $14,191,958 | $13,777,753 | $15,374,212 | | Bonds and notes payable | $8,656,157 | $8,309,797 | $10,582,513 | | Total liabilities | $10,828,949 | $10,478,636 | $12,138,492 | | Total Nelnet, Inc. shareholders' equity | $3,419,523 | $3,349,762 | $3,297,190 | - Loans and accrued interest receivable, net, increased by approximately $430 million from December 31, 2024, to March 31, 2025, but decreased by approximately $1.4 billion compared to March 31, 2024[7] - Total Nelnet, Inc. shareholders' equity continued to grow, reaching $3.42 billion as of March 31, 2025, up from $3.35 billion at December 31, 2024, and $3.30 billion at March 31, 2024[7] Company Overview and Non-GAAP Measures This section provides an overview of Nelnet's diversified business, details reclassification and error corrections, and reconciles GAAP and non-GAAP net income Company Overview Nelnet is a diversified hybrid holding company primarily engaged in consumer lending, loan servicing, payments, and technology, with a significant focus on the education sector, also diversifying through investments in fiber communications (ALLO), venture capital, real estate, reinsurance, and renewable energy (solar) - Nelnet's primary businesses include consumer lending, loan servicing, payments, and technology, largely serving the education space[9] - A significant portion of revenue comes from net interest income on federally insured student loans[9] - The Company diversifies investments in ALLO, venture capital, real estate, reinsurance, and solar energy, and is expanding private education, consumer, and other loan portfolios through Nelnet Bank[9] Reclassification and Immaterial Error Corrections Immaterial errors in prior consolidated financial statements were identified and corrected in Q2 2024 to conform to the March 31, 2025 presentation, with further details available in the Q1 2025 10-Q - Immaterial errors in prior consolidated financial statements were identified and corrected in Q2 2024[10] - Corrections were made to conform to the March 31, 2025 presentation[10] GAAP and Non-GAAP Net Income Reconciliation Nelnet provides non-GAAP net income, excluding derivative market value adjustments, to offer a clearer view of operational performance, as these adjustments can cause significant period-to-period volatility due to accounting rules for derivatives not qualifying for hedge accounting GAAP vs. Non-GAAP Net Income Attributable to Nelnet, Inc. (Q1 2025 vs. Q4 2024 vs. Q1 2024) | Metric (in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :-------------------- | :------------- | :---------------- | :------------- | | GAAP net income attributable to Nelnet, Inc. | $82,560 | $63,159 | $73,408 | | Realized and unrealized derivative market value adjustments | $6,324 | ($13,792) | ($7,964) | | Tax effect | ($1,519) | $3,310 | $1,911 | | Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments | $87,365 | $52,677 | $67,355 | | GAAP EPS | $2.26 | $1.73 | $1.98 | | Non-GAAP EPS | $2.39 | $1.44 | $1.81 | - Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments, was $87.37 million in Q1 2025, up from $52.68 million in Q4 2024 and $67.36 million in Q1 2024[12] - The Company uses non-GAAP measures to provide additional information regarding operational and performance indicators, as derivative market value adjustments can cause significant period-to-period volatility[14] Recent Developments This section details recent significant events, specifically the partial redemption of Nelnet's investment in ALLO Partial Redemption of ALLO Investment Nelnet is undergoing a partial redemption of its ALLO investment, expecting to receive approximately $410 million in cash proceeds and recognize a pre-tax gain of about $175 million, with this transaction, expected to close in late May 2025, reducing Nelnet's ownership in ALLO from 45% to approximately 26% while retaining a significant voting equity interest - ALLO executed a financing transaction on April 18, 2025, resulting in gross proceeds of $500 million[16] - Nelnet expects to receive approximately $410 million in cash proceeds from the redemption of its preferred and a portion of its voting membership interests in ALLO[18] - A pre-tax gain of approximately $175 million is anticipated upon closing, which is expected in late May 2025[18] - Nelnet's ownership of ALLO will decrease from 45% to approximately 26% after the transaction, but it will maintain a significant voting equity investment[19] Operating Segments This section describes Nelnet's operating segments, their financial performance, and detailed breakdowns of their income and expenses Segment Descriptions Nelnet operates through several reportable segments: Loan Servicing and Systems (NDS), Education Technology Services and Payments (NBS), Asset Generation and Management (AGM), and Nelnet Bank, all part of the Nelnet Financial Services (NFS) division, with other activities including ALLO and venture capital investments grouped under Corporate and Other Activities - Reportable operating segments include Loan Servicing and Systems (NDS), Education Technology Services and Payments (NBS), Asset Generation and Management (AGM), and Nelnet Bank[22] - NDS and NBS generate fee-based revenue, while AGM earns net interest income from its FFELP loan portfolio[20] - Nelnet Bank focuses on private education and unsecured consumer loan markets, and Corporate and Other Activities include investments in ALLO, venture capital, solar tax equity, and unallocated corporate costs[20][21] Segment Operating Results (Pre-Tax Income) For Q1 2025, NDS and Nelnet Bank showed increased pre-tax operating margins, while NBS experienced a slight decrease due to higher operating expenses, AGM's pre-tax income decreased due to higher loan loss provisions and lower investment interest income, partially offset by increased net loan interest income, and Corporate activities showed mixed results, with ALLO investment income turning positive Segment Operating Results (Net Income (Loss) Before Taxes) (Q1 2025 vs. Q1 2024) | Segment (in thousands) | March 31, 2025 | March 31, 2024 | | :--------------------- | :------------- | :------------- | | NDS | $18,512 | $15,990 | | NBS | $47,462 | $47,635 | | AGM | $29,834 | $33,743 | | Nelnet Bank | $1,952 | $1,147 | | NFS other operating segments | $10,060 | $13,762 | | Corporate (total) | $8,416 | ($8,593) | | Net income before taxes | $106,140 | $93,937 | - NDS pre-tax operating margin increased due to higher private education and consumer loan servicing volume and cost-saving measures, despite lower government loan servicing revenue[24] - AGM's pre-tax income decreased due to a $13.0 million provision for loan losses in Q1 2025 (up from $6.5 million in Q1 2024) and a $9.1 million decrease in investment interest income, partially offset by a $16.6 million increase in net loan interest income[24] - Nelnet Bank's pre-tax income increased significantly due to a $4.8 million increase in net interest income, driven by higher loan and investment balances and improved net interest margin[24] - The ALLO investment segment recognized income of $8.4 million in Q1 2025, a positive swing from a loss of $8.6 million in Q1 2024, primarily due to income on preferred membership interests and the carrying value of voting interests reaching $0[24] Detailed Segment Financials This section provides a detailed breakdown of interest income, interest expense, net interest income, other income, and total expenses for each reportable segment and reconciling items across Q1 2025, Q4 2024, and Q1 2024, illustrating the specific contributions and costs of each business area Total Interest Income by Segment (Q1 2025) | Segment (in thousands) | Loan Servicing and Systems | Education Technology Services and Payments | Asset Generation and Management | Nelnet Bank | Total Reportable Segments | | :--------------------- | :------------------------- | :--------------------------------------- | :------------------------------ | :---------- | :------------------------ | | Total interest income | $721 | $6,939 | $167,238 | $24,467 | $199,365 | Total Other Income (Expense), Net by Segment (Q1 2025) | Segment (in thousands) | Loan Servicing and Systems | Education Technology Services and Payments | Asset Generation and Management | Nelnet Bank | Total Reportable Segments | | :--------------------- | :------------------------- | :--------------------------------------- | :------------------------------ | :---------- | :------------------------ | | Total other income (expense), net | $126,537 | $147,394 | $1,691 | ($2,223) | $273,399 | Income (Loss) Before Income Taxes by Segment (Q1 2025) | Segment (in thousands) | Loan Servicing and Systems | Education Technology Services and Payments | Asset Generation and Management | Nelnet Bank | Total Reportable Segments | | :--------------------- | :------------------------- | :--------------------------------------- | :------------------------------ | :---------- | :------------------------ | | Income (loss) before income taxes | $18,512 | $47,462 | $29,834 | $1,952 | $97,760 | Disaggregated Revenue and Loan Portfolio Details This section provides detailed breakdowns of revenue by service offering, loan servicing volumes, components of other income, derivative settlements, and comprehensive loan portfolio analysis for both Nelnet Bank and Non-Nelnet Bank segments Loan Servicing and Systems (LSS) Revenue LSS revenue for Q1 2025 was $120.74 million, a decrease from Q4 2024 but a slight decrease from Q1 2024, driven by a decrease in government loan servicing revenue, partially offset by a significant increase in private education and consumer loan servicing revenue Loan Servicing and Systems Revenue by Service Offering (Q1 2025 vs. Q4 2024 vs. Q1 2024) | Service Offering (in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :------------------------------ | :------------- | :---------------- | :------------- | | Government loan servicing | $87,358 | $103,217 | $105,474 | | Private education and consumer loan servicing | $22,696 | $24,819 | $12,620 | | FFELP loan servicing | $2,633 | $2,642 | $3,380 | | Software services | $6,992 | $6,415 | $4,541 | | Outsourced services | $1,062 | $888 | $1,186 | | Total LSS revenue | $120,741 | $137,981 | $127,201 | - Government loan servicing revenue decreased by 17.1% YoY from $105.47 million in Q1 2024 to $87.36 million in Q1 2025[32] - Private education and consumer loan servicing revenue increased significantly by 79.8% YoY from $12.62 million in Q1 2024 to $22.70 million in Q1 2025[32] Loan Servicing Volumes As of March 31, 2025, total servicing volume increased QoQ to $542.34 billion, primarily driven by a substantial increase in private and consumer loan servicing volume, offsetting a decrease in government and FFELP volumes, while the total number of servicing borrowers slightly decreased QoQ Loan Servicing Volume (dollars in millions) (as of March 31, 2025 vs. Dec 31, 2024 vs. March 31, 2024) | Servicing Volume | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :--------------- | :------------- | :---------------- | :------------- | | Government | $482,786 | $489,877 | $495,409 | | FFELP | $12,826 | $13,260 | $15,783 | | Private and consumer | $46,728 | $29,226 | $21,015 | | Total | $542,340 | $532,363 | $532,207 | Number of Servicing Borrowers (as of March 31, 2025 vs. Dec 31, 2024 vs. March 31, 2024) | Number of Borrowers | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :------------------ | :------------- | :---------------- | :------------- | | Government | 13,453,127 | 14,049,550 | 14,328,013 | | FFELP | 524,421 | 549,861 | 656,814 | | Private and consumer | 1,645,423 | 1,168,293 | 882,256 | | Total | 15,622,971 | 15,767,704 | 15,867,083 | - Private and consumer loan servicing volume increased by 59.9% QoQ from $29.23 billion to $46.73 billion, and by 122.3% YoY from $21.02 billion[33] Education Technology Services and Payments (ETSP) Revenue ETSP revenue for Q1 2025 was $147.33 million, a significant increase from Q4 2024 and slightly up from Q1 2024, with this growth primarily driven by increases in tuition payment plan services, payment processing, and education technology services, reflecting seasonal fluctuations Education Technology Services and Payments Revenue by Service Offering (Q1 2025 vs. Q4 2024 vs. Q1 2024) | Service Offering (in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :------------------------------ | :------------- | :---------------- | :------------- | | Tuition payment plan services | $40,072 | $31,149 | $38,880 | | Payment processing | $51,536 | $41,117 | $47,786 | | Education technology services | $55,695 | $35,759 | $56,021 | | Other | $27 | $310 | $852 | | Total ETSP revenue | $147,330 | $108,335 | $143,539 | - ETSP revenue increased by 36.0% QoQ from $108.34 million in Q4 2024 to $147.33 million in Q1 2025, and by 2.6% YoY from $143.54 million[35] - The segment is subject to seasonal fluctuations, with revenue and before-tax operating margin typically higher in the first quarter[35] Other Income (Expense) Components Total 'other, net' income was $23.69 million in Q1 2025, a decrease from Q4 2024 but a substantial increase from Q1 2024, primarily driven by a significant increase in ALLO preferred return and positive investment activity, offsetting a decrease in borrower late fee income and solar investment gains Components of 'Other, Net' Income (in thousands) (Q1 2025 vs. Q4 2024 vs. Q1 2024) | Component | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :---------------------------- | :------------- | :---------------- | :------------- | | ALLO preferred return | $8,416 | $6,133 | $2,409 | | Investment activity, net | $5,161 | $4,989 | ($1,298) | | Borrower late fee income | $1,587 | $1,369 | $3,133 | | Gain from solar investments, net | $456 | $4,559 | $2,780 | | Loss from ALLO voting membership interest investment | $0 | $0 | ($10,693) | | Other, net | $23,694 | $27,794 | $4,082 | - ALLO preferred return increased by 249.3% YoY from $2.41 million in Q1 2024 to $8.42 million in Q1 2025[37] - Net investment activity turned positive in Q1 2025 ($5.16 million) compared to a loss in Q1 2024 ($1.30 million)[37] - Solar investments, accounted for using the HLBV method, generated a net gain of $456 thousand in Q1 2025, significantly lower than $4.56 million in Q4 2024 and $2.78 million in Q1 2024[37][38] Derivative Settlements Derivative settlements, net, decreased to $746 thousand in Q1 2025 from $1.09 million in Q4 2024 and $1.76 million in Q1 2024, reflecting lower settlements from basis swaps and interest rate swaps Derivative Settlements - Income (in thousands) (Q1 2025 vs. Q4 2024 vs. Q1 2024) | Component | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :---------------------------- | :------------- | :---------------- | :------------- | | Basis swaps | $153 | $156 | $365 | | Interest rate swaps - floor income hedges | $429 | $704 | $1,190 | | Interest rate swaps - Nelnet Bank | $164 | $227 | $202 | | Total derivative settlements - income | $746 | $1,087 | $1,757 | - Total derivative settlements decreased by 31.4% QoQ and 57.5% YoY[40] Loans and Accrued Interest Receivable and Allowance for Loan Losses As of March 31, 2025, total loans and accrued interest receivable, net, increased QoQ to $10.42 billion, driven by growth in Nelnet Bank's federally insured, private education, and consumer loans, and Non-Nelnet Bank's FFELP and consumer loans, with the total allowance for loan losses also increasing QoQ to $120.08 million Loans and Accrued Interest Receivable, Net (in thousands) (as of March 31, 2025 vs. Dec 31, 2024 vs. March 31, 2024) | Loan Type | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :---------------------------- | :------------- | :---------------- | :------------- | | Non-Nelnet Bank loans | $9,260,006 | $8,955,868 | $10,799,942 | | Nelnet Bank loans | $761,633 | $644,597 | $483,723 | | Accrued interest receivable | $566,275 | $549,283 | $684,095 | | Total loans and accrued interest receivable, net | $10,422,704 | $9,992,744 | $11,829,078 | Allowance for Loan Losses (in thousands) (as of March 31, 2025 vs. Dec 31, 2024 vs. March 31, 2024) | Allowance Type | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :---------------------------- | :------------- | :---------------- | :------------- | | Non-Nelnet Bank allowance for loan losses | $103,204 | $98,689 | $95,220 | | Nelnet Bank allowance for loan losses | $16,872 | $16,201 | $10,788 | | Total allowance for loan losses | $120,076 | $114,890 | $106,008 | Allowance for Loan Losses as a Percentage of Ending Loan Balance (as of March 31, 2025 vs. Dec 31, 2024 vs. March 31, 2024) | Loan Portfolio | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :---------------------------- | :------------- | :---------------- | :------------- | | Non-Nelnet Bank: Federally insured loans | 0.56 % | 0.59 % | 0.59 % | | Non-Nelnet Bank: Private education loans | 4.98 % | 5.02 % | 5.63 % | | Non-Nelnet Bank: Consumer and other loans | 11.52 % | 11.13 % | 12.08 % | | Nelnet Bank: Federally insured loans | 0.33 % | — | — | | Nelnet Bank: Private education loans | 2.02 % | 2.09 % | 1.00 % | | Nelnet Bank: Consumer and other loans | 4.08 % | 3.77 % | 5.99 % | Loan Activity - Non-Nelnet Bank (AGM) Non-Nelnet Bank (AGM) loan portfolios increased to $9.26 billion as of March 31, 2025, driven by significant loan acquisitions, particularly in FFELP and consumer loans, offsetting repayments and sales, and the accelerated run-off of the FFELP portfolio has decreased since August 2024 Non-Nelnet Bank (AGM) Loan Activity (in thousands) (Q1 2025) | Activity | FFELP | Private | Consumer and other | Total | | :---------------------------- | :----------- | :----------- | :----------------- | :----------- | | Balance as of Dec 31, 2024 | $8,388,564 | $221,744 | $345,560 | $8,955,868 | | Loan acquisitions | $702,800 | $0 | $129,787 | $832,587 | | Repayments, claims, etc., net | ($230,558) | ($12,535) | ($93,984) | ($337,077) | | Loans lost to external parties | ($58,764) | ($702) | $0 | ($59,466) | | Loans sold | ($131,758) | $0 | ($148) | ($131,906) | | Balance as of Mar 31, 2025 | $8,670,284 | $208,507 | $381,215 | $9,260,006 | - Loan acquisitions for Non-Nelnet Bank totaled $832.59 million in Q1 2025, significantly higher than $196.33 million in Q4 2024 and $80.73 million in Q1 2024[44] - The accelerated run-off of the FFELP portfolio, experienced since late 2021, has significantly decreased since August 2024, with prepayment rates returning to historical levels[44] Loan Spread Analysis - Non-Nelnet Bank (AGM) The core loan spread for AGM's Non-Nelnet Bank portfolio increased to 1.19% in Q1 2025, up from 1.18% in Q4 2024 and 0.84% in Q1 2024, with this improvement driven by a decrease in loan cost of funds, despite a slight decrease in variable loan yield Loan Spread Analysis - Non-Nelnet Bank (AGM) (Q1 2025 vs. Q4 2024 vs. Q1 2024) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :---------------------------- | :------------- | :---------------- | :------------- | | Variable loan yield, net | 6.51 % | 6.97 % | 7.28 % | | Loan cost of funds - interest expense | (5.39) % | (5.86) % | (6.50) % | | Variable loan spread | 1.13 % | 1.12 % | 0.79 % | | Core loan spread | 1.19 % | 1.18 % | 0.84 % | | Average balance of AGM's loans | $9,544,317 | $9,403,661 | $11,561,504 | - Core loan spread increased by 0.01 percentage points QoQ and 0.35 percentage points YoY[46] - The average balance of AGM's loans increased QoQ to $9.54 billion but decreased YoY from $11.56 billion[46] Loan Activity - Nelnet Bank Nelnet Bank's loan portfolios grew significantly to $761.63 million as of March 31, 2025, driven by substantial loan acquisitions and originations, including federally insured loans, private education loans, and consumer loans Nelnet Bank Loan Activity (in thousands) (Q1 2025) | Activity | FFELP | Private | Consumer and other | Total | | :---------------------------- | :----------- | :----------- | :----------------- | :----------- | | Balance as of Dec 31, 2024 | $0 | $482,445 | $162,152 | $644,597 | | Loan acquisitions and originations | $111,002 | $29,041 | $4,555 | $144,598 | | Repayments | ($815) | ($22,035) | ($4,712) | ($27,562) | | Balance as of Mar 31, 2025 | $110,187 | $489,451 | $161,995 | $761,633 | - Nelnet Bank's total loan acquisitions and originations were $144.60 million in Q1 2025, a decrease from $186.23 million in Q4 2024 but an increase from $73.56 million in Q1 2024[50] - Federally insured loans, which were $0 in prior periods, reached $110.19 million as of March 31, 2025[50] Average Balance Sheet - Nelnet Bank Nelnet Bank's average interest-earning assets increased to $1.47 billion in Q1 2025, up from $1.39 billion in Q4 2024 and $1.04 billion in Q1 2024, and the net interest margin for Nelnet Bank was 3.46% in Q1 2025, a decrease from 3.76% in Q4 2024 but an increase from 3.00% in Q1 2024 Nelnet Bank Average Balance Sheet and Rates (Q1 2025 vs. Q4 2024 vs. Q1 2024) | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :---------------------------- | :------------- | :---------------- | :------------- | | Average interest-earning assets | $1,470,971 | $1,389,982 | $1,041,941 | | Rate on interest-earning assets | 6.75 % | 7.42 % | 6.59 % | | Average interest-bearing liabilities | $1,295,453 | $1,235,218 | $909,136 | | Rate on interest-bearing liabilities | 3.73 % | 4.11 % | 4.11 % | | Net interest margin | 3.46 % | 3.76 % | 3.00 % | - The average balance of private education loans increased to $489.21 million in Q1 2025 from $482.38 million in Q4 2024, with a yield of 6.10%[52] - Retail and other deposits constitute the largest portion of interest-bearing liabilities, with an average balance of $962.95 million and a rate of 4.21% in Q1 2025[52]