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For Release: November 6, 2025

Investor Contact: Phil Morgan, 402.458.3038

Nelnet, Inc. supplemental financial information for the third quarter 2025

(All dollars are in thousands, except per share amounts, unless otherwise noted)

The following information should be read in connection with Nelnet, Inc.'s (the “Company's”) press release for third quarter 2025 earnings, dated November 6, 2025, and the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2025 (the "Q3 2025 10-Q Quarterly Report").

Forward-looking and cautionary statements

This report contains forward-looking statements and information that are based on management's current expectations as of the date of this document. Statements that are not historical facts, including statements about the Company's plans and expectations for future financial condition, results of operations or economic performance, or that address management's plans and objectives for future operations, and statements that assume or are dependent upon future events, are forward-looking statements. 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.

The forward-looking statements are based on assumptions and analyses made by management in light of management's experience and its perception of historical trends, current conditions, expected future developments, and other factors that management believes are appropriate under the circumstances. These statements 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. These factors include, among others, the risks and uncertainties set forth in the “Risk Factors” sections of the Company's Annual Report on Form 10-K for the year ended December 31, 2024 (the "2024 Annual Report"), the Company's Q3 2025 10-Q Quarterly Report, and this report, and include such risks and uncertainties as:

•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 of Education (the "Department"), risks related to unfavorable contract modifications or interpretations, risks related to consistently meeting service requirements to avoid the assessment of performance penalties, 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 credit risk, prepayment risk, interest rate basis and repricing risk, risks related to the use of derivatives to manage exposure to interest rate fluctuations, uncertainties regarding the expected benefits from purchased securitized and unsecuritized FFELP, private education, consumer, and other loans, or investment interests therein, and initiatives to purchase additional FFELP, private education, consumer, and other loans;

•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;

•risks related to use of artificial intelligence;

•uncertainties inherent in forecasting future cash flows from student loan assets, including investment interests therein, and related asset-backed securitizations;

•risks related to the ability of Nelnet Bank to achieve its business objectives and effectively deploy loan and deposit strategies and achieve expected market penetration;

•risks related to the Company's solar tax equity investments and solar construction business, including risks of not being able to realize tax credits which remain subject to recapture by taxing authorities and risks from the impact of the enactment of the One Big Beautiful Bill that accelerates the expiration and phase out of solar energy credits;

•risks and uncertainties related to other initiatives to pursue additional strategic investments (and anticipated income therefrom) including venture capital and real estate investments, reinsurance, acquisitions, and other activities (including risks associated with errors that occasionally occur in converting loan servicing portfolios to a new servicing platform), 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; and

•risks and uncertainties associated with litigation matters and maintaining compliance with the extensive regulatory requirements applicable to the Company's businesses, including recent changes to the regulatory environment in the United States, and uncertainties inherent in the estimates and assumptions about future events that management is required to make in the preparation of the Company’s consolidated financial statements.

All forward-looking statements contained in this report are qualified by these cautionary statements and are made only as of the date of this document. Although the Company may from time to time voluntarily update or revise its prior forward-looking statements to reflect actual results or changes in the Company's expectations, the Company disclaims any commitment to do so except as required by law.

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Consolidated Statements of Income

(Dollars in thousands, except share data)

(unaudited)

			Three months ended																		Nine months ended
			September 30, 2025						June 30, 2025						September 30, 2024						September 30, 2025						September 30, 2024
Interest income:
Loan interest			$	162,717					172,104						190,211						501,260						609,064
Investment interest			43,241						40,185						50,272						124,815						143,086
Total interest income			205,958						212,289						240,483						626,075						752,150
Interest expense on bonds and notes payable and bank deposits			120,708						132,854						168,328						378,677						539,367
Net interest income			85,250						79,435						72,155						247,398						212,783
Less (negative provision) provision for loan losses			(3,563)						17,930						18,111						29,704						32,551
Net interest income after provision for loan losses			88,813						61,505						54,044						217,694						180,232
Other income (expense):
Loan servicing and systems revenue			151,052						120,724						108,175						392,517						344,428
Education technology services and payments revenue			129,321						118,184						118,179						394,836						378,627
Reinsurance premiums earned			23,165						26,112						16,619						73,964						44,250
Solar construction revenue			5,738						1,259						19,321						10,992						42,741
Other, net			35,730						22,976						15,706						82,401						33,807
Loss on sale of loans, net			(2,472)						—						(107)						(1,562)						(1,685)
Gain on partial redemption of ALLO investment			—						175,044						—						175,044						—
Derivative settlements, net			761						744						1,640						2,250						5,046
Derivative market value adjustments, net			(788)						(3,866)						(13,165)						(10,978)						(3,668)
Total other income (expense), net			342,507						461,177						266,368						1,119,464						843,546
Cost of services and expenses:
Loan servicing contract fulfillment and acquisition costs			2,021						1,845						196						5,500						392
Cost to provide education technology services and payments			50,363						39,844						45,273						138,254						134,106
Cost to provide solar construction services			7,607						14,050						26,815						29,485						49,115
Total cost of services			59,991						55,739						72,284						173,239						183,613
Salaries and benefits			144,778						134,699						146,192						417,700						429,701
Depreciation and amortization			7,327						7,624						13,661						24,206						45,572
Reinsurance losses and underwriting expenses			19,962						25,662						16,761						67,836						39,066
Other expenses			53,669						51,306						44,685						153,200						138,820
Total operating expenses			225,736						219,291						221,299						662,942						653,159
Impairment expense and provision for beneficial interests			9,145						10,288						29,052						21,024						36,865
Total expenses			294,872						285,318						322,635						857,205						873,637
Income (loss) before income taxes			136,448						237,364						(2,223)						479,953						150,141
Income tax (expense) benefit			(35,773)						(59,510)						282						(120,294)						(37,653)
Net income (loss)			100,675						177,854						(1,941)						359,659						112,488
Net loss attributable to noncontrolling interests			6,009						3,605						4,329						11,044						8,398
Net income attributable to Nelnet, Inc.			$	106,684					181,459						2,388						370,703						120,886
Earnings per common share:
Net income attributable to Nelnet, Inc. shareholders - basic and diluted			$	2.94					4.97						0.07						10.18						3.29
Weighted average common shares outstanding - basic and diluted			36,316,315						36,485,605						36,430,485						36,426,188						36,703,314

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Condensed Consolidated Balance Sheets

(Dollars in thousands)

(unaudited)

			As of						As of						As of
			September 30, 2025						December 31, 2024						September 30, 2024
Assets:
Loans and accrued interest receivable, net			$	10,227,261					9,992,744						10,572,881
Cash, cash equivalents, and investments			2,455,950						2,395,214						2,173,000
Restricted cash			550,371						736,502						679,334
Goodwill and intangible assets, net			189,783						194,357						196,400
Other assets			453,317						458,936						462,513
Total assets			$	13,876,682					13,777,753						14,084,128
Liabilities:
Bonds and notes payable			$	7,822,531					8,309,797						8,938,446
Bank deposits			1,476,765						1,186,131						1,070,758
Other liabilities			990,691						982,708						864,786
Total liabilities			10,289,987						10,478,636						10,873,990
Equity:
Total Nelnet, Inc. shareholders' equity			3,653,290						3,349,762						3,290,652
Noncontrolling interests			(66,595)						(50,645)						(80,514)
Total equity			3,586,695						3,299,117						3,210,138
Total liabilities and equity			$	13,876,682					13,777,753						14,084,128

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Overview

The Company is a diversified hybrid holding company with primary businesses being consumer lending, loan servicing, payments, and technology – with many of these businesses serving customers in the education space. The largest operating businesses engage in loan servicing and education technology services and payments. A significant portion of the Company's revenue is net interest income earned on a portfolio of federally insured student loans. The Company also makes and manages investments to further diversify both within and outside of its historical core education-related businesses including, but not limited to, investments in a fiber communications company (ALLO), early-stage and emerging growth companies (venture capital investments), real estate, reinsurance, and renewable energy (solar). In the Nelnet Financial Services division, which includes the Asset Generation and Management and Nelnet Bank reportable operating segments, the Company is also actively expanding its private education, consumer, and other loan portfolios.

GAAP Net Income and Non-GAAP Net Income, Excluding Adjustments

The Company prepares its financial statements and presents its financial results in accordance with 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. A reconciliation of the Company's GAAP net income to Non-GAAP net income excluding derivative market value adjustments, and a discussion of why the Company believes providing this additional information is useful to investors, are provided below.

			Three months ended																		Nine months ended
			September 30, 2025						June 30, 2025						September 30, 2024						September 30, 2025						September 30, 2024
GAAP net income attributable to Nelnet, Inc.			$	106,684					181,459						2,388						370,703						120,886
Realized and unrealized derivative market value adjustments (a)			788						3,866						13,165						10,978						3,668
Tax effect (b)			(189)						(928)						(3,160)						(2,635)						(880)
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments			$	107,283					184,397						12,393						379,046						123,674
Earnings per share:
GAAP net income attributable to Nelnet, Inc.			$	2.94					4.97						0.07						10.18						3.29
Realized and unrealized derivative market value adjustments (a)			0.02						0.11						0.36						0.30						0.10
Tax effect (b)			(0.01)						(0.03)						(0.09)						(0.07)						(0.02)
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments			$	2.95					5.05						0.34						10.41						3.37

(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 respective 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 are met. Management has structured all of the Company’s derivative transactions with the intent that each is economically effective; however, the majority of the Company’s derivative instruments do not qualify for hedge accounting in the consolidated financial statements. As a result, the change in fair value for the derivative instruments that do not qualify for hedge accounting 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 generally 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. Consequently, 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 and represents what earnings would have been had these derivatives qualified for hedge accounting. 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.

(b) The tax effects are calculated by multiplying the realized and unrealized derivative market value adjustments by the applicable statutory income tax rate.

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Operating Segments

The Company's reportable operating segments are described in note 1 of the notes to consolidated financial statements included in the 2024 Annual Report. They include:

•Loan Servicing and Systems (LSS) - referred to as Nelnet Diversified Services (NDS)

•Education Technology Services and Payments (ETSP) - referred to as Nelnet Business Services (NBS)

•Asset Generation and Management (AGM), part of the Nelnet Financial Services (NFS) division

•Nelnet Bank, part of the NFS division

The Company earns fee-based revenue through its NDS and NBS reportable operating segments. The Company earns net interest income on its loan portfolio, consisting primarily of FFELP loans, through its AGM reportable operating segment. This segment is expected to generate significant amounts of cash as the FFELP portfolio amortizes. The Company actively works to maximize the amount and timing of cash flows generated from its FFELP portfolio and seeks to acquire additional loan assets to leverage its servicing scale and expertise to generate incremental earnings and cash flow. Nelnet Bank operates as an internet industrial bank franchise focused on the private education and unsecured consumer loan markets, with a home office in Salt Lake City, Utah. Other operating segments included in the NFS division include the Company's U.S. Securities and Exchange Commission (SEC)-registered investment advisor subsidiary (Whitetail Rock Capital Management LLC or "WRCM"), property and casualty reinsurance activities, investment activities in real estate, and investments in investment debt securities (primarily student loan and other asset-backed securities).

Other business activities and operating segments that are not reportable and not part of the NFS division are combined and included in Corporate and Other Activities ("Corporate"). Corporate also includes interest income earned on cash balances held at the corporate level and interest expense incurred on unsecured corporate related debt transactions, certain investment activities including its investment in ALLO, early-stage and emerging growth companies (venture capital investments), solar tax equity investments, the operating results of the Company's solar engineering, procurement, and construction business, and certain shared service activities that are allocated to each operating segment based on estimated use of such activities and services. In addition, Corporate includes corporate costs and overhead functions not allocated to operating segments, including executive management, investments in innovation, and other holding company organizational costs.

The information below presents the operating results (net income (loss) before taxes) for each of the Company's reportable and certain other operating segments.

			Three months ended																		Nine months ended
			September 30, 2025						June 30, 2025						September 30, 2024						September 30, 2025						September 30, 2024
NDS			$	46,270					19,959						(4,549)						84,741						13,686
NBS			24,957						23,542						26,813						95,963						100,046
Nelnet Financial Services division:
AGM			36,621						27,393						(16,346)						93,848						41,710
Nelnet Bank			6,088						(465)						(4,758)						7,573						(7,330)
WRCM			1,933						1,413						1,276						4,726						4,033
Nelnet Insurance Services			4,061						(31)						944						7,268						7,925
Real estate investments			1,513						108						1,865						(429)						(2,223)
Investment securities			12,936						8,601						9,953						29,031						34,590
Corporate:
Unallocated corporate costs			(9,909)						(11,923)						(10,287)						(31,819)						(29,389)
Solar tax equity investments			(15,497)						(1,892)						(8,509)						(16,184)						(8,775)
Nelnet Renewable Energy - solar construction			(6,025)						(17,601)						(10,125)						(30,201)						(18,913)
ALLO investment			1,137						185,236						6,606						194,789						1,953
Venture capital investments			33,520						1,340						2,136						39,080						4,848
Other corporate activities			(1,268)						1,586						2,756						1,263						7,981
Eliminations/reclassifications			112						96						—						304						—
Net income before taxes			136,448						237,364						(2,223)						479,953						150,141
Income tax (expense) benefit			(35,773)						(59,510)						282						(120,294)						(37,653)
Net loss attributable to noncontrolling interests			6,009						3,605						4,329						11,044						8,398
Net income			$	106,684					181,459						2,388						370,703						120,886

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2025 Operating Highlights

Certain transactions have impacted the Company's operating results in 2025. These transactions are summarized below.

Partial Redemption of ALLO Investment

Nelnet had both voting and preferred membership interest investments in ALLO. On June 4, 2025, Nelnet redeemed a portion of its voting membership interests in ALLO and all its outstanding preferred membership interests, including the preferred return accrued on such membership interests through June 3, 2025. The Company received cash proceeds of $410.9 million from ALLO and recognized a pre-tax gain of $175.0 million as a result of this transaction.

Government Servicing Contract

Upon reaching a final agreement with the Department, the Company's Loan Servicing and Systems operating segment (NDS) recognized $32.9 million of non-recurring revenue in the third quarter 2025 on a contract modification for services previously performed.

Sale of Consumer Loans - Reversal of Allowance

During the third quarter of 2025, the Company's AGM operating segment sold $203.3 million of consumer loans to an unrelated third party who securitized such loans. As partial consideration received for the loans sold, the Company received a residual interest in the loan securitization that is included in "other investments and notes receivable, net" on the Company's consolidated balance sheet. 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. During the third quarter of 2025, the Company reduced its allowance (and recognized negative provision expense) of $28.9 million (that increased income) related to this loan sale.

Venture Capital Investment

The Company has an investment in an unaffiliated third-party technology company (the “Investee”). On August 11, 2025, the Investee completed an additional equity raise and accepted tender offers to redeem existing equity holders with a portion of the proceeds. The Company redeemed a portion of its investment and received cash proceeds of $10.1 million and recognized a pre-tax gain of $7.8 million. The Company accounts for its investment in the Investee using the measurement alternative method, which requires it to adjust its carrying value of the investment for changes resulting from observable market transactions. As a result of the Investee’s equity raise, the Company recognized a pre-tax gain of $22.4 million during the third quarter of 2025 to adjust its carrying value of its remaining investment in the Investee to reflect the August 2025 transaction value.

Recent Developments

Canadian Student Loan Servicing Acquisition

On October 23, 2025, the Company announced that it entered into a definitive and binding purchase agreement with DH Corporation, a wholly owned subsidiary of Finastra Holdings Limited (“Finastra”), pursuant to which Nelnet Canada, Inc., a wholly owned subsidiary of the Company, will acquire Finastra’s Canadian student loan servicing business for a purchase price of approximately $93 million in cash. The transaction is expected to close in the first calendar quarter of 2026, subject to customary closing conditions.

Finastra’s Canadian student loan servicing business is the leading provider of student loan servicing solutions to governments and financial institutions in Canada providing technology enabled managed services across the loan lifecycle. The business currently services loans for 2.4 million borrowers on proprietary technology platforms. The operating results of this acquisition will be included in the Loan Servicing and Systems reportable operating segment following the closing of the transaction.

Nelnet Foundation

The Nelnet Foundation was established to help the Company fulfill its core value of giving back to the communities where we live and work. Historically, the Company has contributed annually to the Foundation to support this mission. Due to recent tax law changes and strong operating performance in 2025, the Company’s Board of Directors has approved a contribution of up to $35 million to the Foundation. The Company expects this amount will cover its 2025 annual contribution as well as contributions for the foreseeable future. The full contribution will be expensed in the fourth quarter of 2025.

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Segment Reporting

The following tables present the results of each of the Company's reportable operating segments reconciled to the consolidated financial statements:

						Three months ended September 30, 2025
						Reportable Segments																														Reconciling Items
						Loan Servicing and Systems (LSS)						Education Technology Services and Payments (ETSP)						Asset Generation and Management						Nelnet Bank						Total Reportable Segments						NFS Other Operating Segments						Corporate and Other Activities						Eliminations/ Reclassifications						Total
Interest income:
Loan interest						$	—					—						145,984						16,733						162,717						—						—						—						162,717
Investment interest						531						8,564						12,051						14,849						35,995						14,985						3,134						(10,872)						43,241
Total interest income						531						8,564						158,035						31,582						198,712						14,985						3,134						(10,872)						205,958
Interest expense						—						—						113,350						16,179						129,529						1,359						692						(10,872)						120,708
Net interest income						531						8,564						44,685						15,403						69,183						13,626						2,442						—						85,250
Less (negative provision) provision for loan losses						—						—						(7,374)						3,811						(3,563)						—						—						—						(3,563)
Net interest income after provision for loan losses						531						8,564						52,059						11,592						72,746						13,626						2,442						—						88,813
Other income (expense):
LSS revenue						151,052						—						—						—						151,052						—						—						—						151,052
ETSP revenue						—						129,321						—						—						129,321						—						—						—						129,321
Intersegment revenue						5,313						70						—						—						5,383						—						—						(5,383)						—
Reinsurance premiums earned						—						—						—						—						—						23,165						—						—						23,165
Solar construction revenue						—						—						—						—						—						—						5,738						—						5,738
Other, net						105						—						195						1,308						1,608						5,674						28,336						112						35,730
Loss on sale of loans, net						—						—						(2,472)						—						(2,472)						—						—						—						(2,472)
Gain on partial redemption of ALLO investment						—						—						—						—						—						—						—						—						—
Derivative settlements, net						—						—						594						167						761						—						—						—						761
Derivative market value adjustments, net						—						—						(461)						(327)						(788)						—						—						—						(788)
Total other income (expense), net						156,470						129,391						(2,144)						1,148						284,865						28,839						34,074						(5,271)						342,507
Cost of services and expenses:
Total cost of services						2,021						50,363						—						—						52,384						—						7,607						—						59,991
Salaries and benefits						70,126						43,029						1,971						2,817						117,943						668						26,193						(26)						144,778
Depreciation and amortization						1,725						2,504						—						355						4,584						—						2,743						—						7,327
Reinsurance losses and underwriting expenses						—						—						—						—						—						19,962						—						—						19,962
Postage expense						8,735																								8,735																		(8,735)						—
Servicing fees																		6,687						838						7,525																		(7,525)						—
Other expenses						10,862						9,537						1,243						1,916						23,558						1,103						17,901						11,107						53,669
Intersegment expenses, net						17,262						6,420						1,248						726						25,656						289						(25,741)						(204)						—
Total operating expenses						108,710						61,490						11,149						6,652						188,001						22,022						21,096						(5,383)						225,736
Impairment expense and provision for beneficial interests						—						1,145						2,145						—						3,290						—						5,855						—						9,145
Total expenses						110,731						112,998						13,294						6,652						243,675						22,022						34,558						(5,383)						294,872
Income (loss) before income taxes						46,270						24,957						36,621						6,088						113,936						20,443						1,958						112						136,448
Income tax (expense) benefit						(11,105)						(5,990)						(8,783)						(1,483)						(27,361)						(4,866)						(3,547)						—						(35,773)
Net income (loss)						35,165						18,967						27,838						4,605						86,575						15,577						(1,589)						112						100,675
Net (income) loss attributable to noncontrolling interests						—						—						(27)						—						(27)						(169)						6,317						(112)						6,009
Net income (loss) attributable to Nelnet, Inc.						$	35,165					18,967						27,811						4,605						86,548						15,408						4,728						—						106,684

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						Three months ended June 30, 2025
						Reportable Segments																														Reconciling Items
						Loan Servicing and Systems (LSS)						Education Technology Services and Payments (ETSP)						Asset Generation and Management						Nelnet Bank						Total Reportable Segments						NFS Other Operating Segments						Corporate and Other Activities						Eliminations/ Reclassifications						Total
Interest income:
Loan interest						$	—					—						157,300						14,804						172,104						—						—						—						172,104
Investment interest						624						5,417						12,641						13,934						32,616						8,870						2,661						(3,963)						40,185
Total interest income						624						5,417						169,941						28,738						204,720						8,870						2,661						(3,963)						212,289
Interest expense						—						—						120,066						14,672						134,738						1,428						651						(3,963)						132,854
Net interest income						624						5,417						49,875						14,066						69,982						7,442						2,010						—						79,435
Less (negative provision) provision for loan losses						—						—						11,133						6,797						17,930						—						—						—						17,930
Net interest income after provision for loan losses						624						5,417						38,742						7,269						52,052						7,442						2,010						—						61,505
Other income (expense):
LSS revenue						120,724						—						—						—						120,724						—						—						—						120,724
ETSP revenue						—						118,184						—						—						118,184						—						—						—						118,184
Intersegment revenue						5,603						65						—						—						5,668						—						—						(5,668)						—
Reinsurance premiums earned						—						—						—						—						—						26,112						—						—						26,112
Solar construction revenue						—						—						—						—						—						—						1,259						—						1,259
Other, net						113						—						7,507						392						8,012						5,265						9,603						96						22,976
Loss on sale of loans, net						—						—						—						—						—						—						—						—						—
Gain on partial redemption of ALLO investment						—						—						—						—						—						—						175,044						—						175,044
Derivative settlements, net						—						—						581						163						744						—						—						—						744
Derivative market value adjustments, net						—						—						(2,165)						(1,701)						(3,866)						—						—						—						(3,866)
Total other income (expense), net						126,440						118,249						5,923						(1,146)						249,466						31,377						185,906						(5,572)						461,177
Cost of services and expenses:
Total cost of services						1,845						39,844						—						—						41,689						—						14,050						—						55,739
Salaries and benefits						65,549						41,598						1,469						2,791						111,407						539						22,784						(30)						134,699
Depreciation and amortization						1,821						2,505						—						352						4,678						—						2,946						—						7,624
Reinsurance losses and underwriting expenses						—						—						—						—						—						25,662						—						—						25,662
Postage expense						9,551																								9,551																		(9,551)						—
Servicing fees																		7,102						824						7,926																		(7,926)						—
Other expenses						11,099						9,904						2,464						1,969						25,436						2,206						11,695						11,969						51,306
Intersegment expenses, net						17,240						6,273						1,260						652						25,425						321						(25,616)						(130)						—
Total operating expenses						105,260						60,280						12,295						6,588						184,423						28,728						11,809						(5,668)						219,291
Impairment expense and provision for beneficial interests						—						—						4,977						—						4,977						—						5,311						—						10,288
Total expenses						107,105						100,124						17,272						6,588						231,089						28,728						31,170						(5,668)						285,318
Income (loss) before income taxes						19,959						23,542						27,393						(465)						70,429						10,091						156,746						96						237,364
Income tax (expense) benefit						(4,790)						(5,650)						(6,569)						101						(16,908)						(2,395)						(40,207)						—						(59,510)
Net income (loss)						15,169						17,892						20,824						(364)						53,521						7,696						116,539						96						177,854
Net (income) loss attributable to noncontrolling interests						—						—						(23)						—						(23)						(114)						3,838						(96)						3,605
Net income (loss) attributable to Nelnet, Inc.						$	15,169					17,892						20,801						(364)						53,498						7,582						120,377						—						181,459

8

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						Three months ended September 30, 2024
						Reportable Segments																														Reconciling Items
						Loan Servicing and Systems (LSS)						Education Technology Services and Payments (ETSP)						Asset Generation and Management						Nelnet Bank						Total Reportable Segments						NFS Other Operating Segments						Corporate and Other Activities						Eliminations/ Reclassifications						Total
Interest income:
Loan interest						$	—					—						180,571						9,639						190,210						—						—						—						190,211
Investment interest						894						9,734						18,970						12,522						42,120						12,415						3,105						(7,368)						50,272
Total interest income						894						9,734						199,541						22,161						232,330						12,415						3,105						(7,368)						240,483
Interest expense						—						—						161,142						11,606						172,748						2,245						704						(7,368)						168,328
Net interest income						894						9,734						38,399						10,555						59,582						10,170						2,401						—						72,155
Less (negative provision) provision for loan losses						—						—						11,968						6,143						18,111						—						—						—						18,111
Net interest income after provision for loan losses						894						9,734						26,431						4,412						41,471						10,170						2,401						—						54,044
Other income (expense):
LSS revenue						108,175						—						—						—						108,175						—						—						—						108,175
ETSP revenue						—						118,179						—						—						118,179						—						—						—						118,179
Intersegment revenue						5,428						60						—						—						5,488						—						—						(5,488)						—
Reinsurance premiums earned						—						—						—						—						—						16,619						—						—						16,619
Solar construction revenue						—						—						—						—						—						—						19,321						—						19,321
Other, net						690						—						4,918						841						6,449						5,751						3,506						—						15,706
Loss on sale of loans, net						—						—						(107)						—						(107)						—						—						—						(107)
Gain on partial redemption of ALLO investment						—						—						—						—						—						—						—						—						—
Derivative settlements, net						—						—						1,359						281						1,640						—						—						—						1,640
Derivative market value adjustments, net						—						—						(9,518)						(3,647)						(13,165)						—						—						—						(13,165)
Total other income (expense), net						114,293						118,239						(3,348)						(2,525)						226,659						22,370						22,827						(5,488)						266,368
Cost of services and expenses:
Total cost of services						196						45,273						—						—						45,469						—						26,815						—						72,284
Salaries and benefits						76,820						41,053						1,220						2,973						122,066						398						23,852						(124)						146,192
Depreciation and amortization						4,854						2,616						—						343						7,813						—						5,848						—						13,661
Reinsurance losses and underwriting expenses						—						—						—						—						—						16,761						—						—						16,761
Postage expense						8,467																								8,467																		(8,467)						—
Servicing fees																		7,011						285						7,296																		(7,296)						—
Other expenses						11,000						7,614						970						2,463						22,047						1,143						11,116						10,379						44,685
Intersegment expenses, net						18,399						4,604						1,276						581						24,860						200						(25,080)						20						—
Total operating expenses						119,540						55,887						10,477						6,645						192,549						18,502						15,736						(5,488)						221,299
Impairment expense and provision for beneficial interests						—						—						28,952						—						28,952						—						100						—						29,052
Total expenses						119,736						101,160						39,429						6,645						266,970						18,502						42,651						(5,488)						322,635
Income (loss) before income taxes						(4,549)						26,813						(16,346)						(4,758)						1,160						14,038						(17,423)						—						(2,223)
Income tax (expense) benefit						1,092						(6,450)						3,923						1,143						(292)						(3,341)						3,915						—						282
Net income (loss)						(3,457)						20,363						(12,423)						(3,615)						868						10,697						(13,508)						—						(1,941)
Net (income) loss attributable to noncontrolling interests						—						54						—						—						54						(117)						4,392						—						4,329
Net income (loss) attributable to Nelnet, Inc.						$	(3,457)					20,417						(12,423)						(3,615)						922						10,580						(9,116)						—						2,388

9

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						Nine months ended September 30, 2025
						Reportable Segments																														Reconciling Items
						Loan Servicing and Systems (LSS)						Education Technology Services and Payments (ETSP)						Asset Generation and Management						Nelnet Bank						Total Reportable Segments						NFS Other Operating Segments						Corporate and Other Activities						Eliminations/ Reclassifications						Total
Interest income:
Loan interest						$	—					—						457,752						43,508						501,260						—						—						—						501,260
Investment interest						1,875						20,921						37,462						41,278						101,536						32,676						8,107						(17,504)						124,815
Total interest income						1,875						20,921						495,214						84,786						602,796						32,676						8,107						(17,504)						626,075
Interest expense						—						—						347,719						42,928						390,647						3,558						1,976						(17,504)						378,677
Net interest income						1,875						20,921						147,495						41,858						212,149						29,118						6,131						—						247,398
Less (negative provision) provision for loan losses						—						—						16,770						12,934						29,704						—						—						—						29,704
Net interest income after provision for loan losses						1,875						20,921						130,725						28,924						182,445						29,118						6,131						—						217,694
Other income (expense):
LSS revenue						392,517						—						—						—						392,517						—						—						—						392,517
ETSP revenue						—						394,836						—						—						394,836						—						—						—						394,836
Intersegment revenue						16,600						198						—						—						16,798						—						—						(16,798)						—
Reinsurance premiums earned						—						—						—						—						—						73,964						—						—						73,964
Solar construction revenue						—						—						—						—						—						—						10,992						—						10,992
Other, net						331						—						11,697						1,842						13,870						12,050						56,176						304						82,401
Loss on sale of loans, net						—						—						(1,562)						—						(1,562)						—						—						—						(1,562)
Gain on partial redemption of ALLO investment						—						—						—						—						—						—						175,044						—						175,044
Derivative settlements, net						—						—						1,756						494						2,250						—						—						—						2,250
Derivative market value adjustments, net						—						—						(6,422)						(4,556)						(10,978)						—						—						—						(10,978)
Total other income (expense), net						409,448						395,034						5,469						(2,220)						807,731						86,014						242,212						(16,494)						1,119,464
Cost of services and expenses:
Total cost of services						5,500						138,254						—						—						143,754						—						29,485						—						173,239
Salaries and benefits						205,249						126,368						4,661						8,424						344,702						1,685						71,472						(160)						417,700
Depreciation and amortization						6,199						7,439						—						1,046						14,684						—						9,522						—						24,206
Reinsurance losses and underwriting expenses						—						—						—						—						—						67,836						—						—						67,836
Postage expense						25,861																								25,861																		(25,861)						—
Servicing fees																		20,700						2,329						23,029																		(23,029)						—
Other expenses						32,793						28,489						4,595						5,243						71,120						4,080						45,183						32,817						153,200
Intersegment expenses, net						50,980						18,297						3,758						2,089						75,124						854						(75,413)						(565)						—
Total operating expenses						321,082						180,593						33,714						19,131						554,520						74,455						50,764						(16,798)						662,942
Impairment expense and provision for beneficial interests						—						1,145						8,632						—						9,777						81						11,166						—						21,024
Total expenses						326,582						319,992						42,346						19,131						708,051						74,536						91,415						(16,798)						857,205
Income (loss) before income taxes						84,741						95,963						93,848						7,573						282,125						40,596						156,928						304						479,953
Income tax (expense) benefit						(20,338)						(23,042)						(22,508)						(1,816)						(67,704)						(9,645)						(42,945)						—						(120,294)
Net income (loss)						64,403						72,921						71,340						5,757						214,421						30,951						113,983						304						359,659
Net (income) loss attributable to noncontrolling interests						—						45						(67)						—						(22)						(407)						11,777						(304)						11,044
Net income (loss) attributable to Nelnet, Inc.						$	64,403					72,966						71,273						5,757						214,399						30,544						125,760						—						370,703

10

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						Nine months ended September 30, 2024
						Reportable Segments																														Reconciling Items
						Loan Servicing and Systems (LSS)						Education Technology Services and Payments (ETSP)						Asset Generation and Management						Nelnet Bank						Total Reportable Segments						NFS Other Operating Segments						Corporate and Other Activities						Eliminations/ Reclassifications						Total
Interest income:
Loan interest						$	—					—						583,907						25,157						609,064						—						—						—						609,064
Investment interest						4,046						23,315						54,513						33,301						115,175						43,910						9,566						(25,565)						143,086
Total interest income						4,046						23,315						638,420						58,458						724,239						43,910						9,566						(25,565)						752,150
Interest expense						—						—						523,678						31,872						555,550						7,268						2,114						(25,565)						539,367
Net interest income						4,046						23,315						114,742						26,586						168,689						36,642						7,452						—						212,783
Less (negative provision) provision for loan losses						—						—						14,199						18,352						32,551						—						—						—						32,551
Net interest income after provision for loan losses						4,046						23,315						100,543						8,234						136,138						36,642						7,452						—						180,232
Other income (expense):
LSS revenue						344,428						—						—						—						344,428						—						—						—						344,428
ETSP revenue						—						378,627						—						—						378,627						—						—						—						378,627
Intersegment revenue						18,419						166						—						—						18,585						—						—						(18,585)						—
Reinsurance premiums earned						—						—						—						—						—						44,250						—						—						44,250
Solar construction revenue						—						—						—						—						—						—						42,741						—						42,741
Other, net						2,085						—						11,239						1,991						15,315						6,763						11,730						—						33,807
Loss on sale of loans, net						—						—						(1,685)						—						(1,685)						—						—						—						(1,685)
Gain on partial redemption of ALLO investment						—						—						—						—						—						—						—						—						—
Derivative settlements, net						—						—						4,356						690						5,046						—						—						—						5,046
Derivative market value adjustments, net						—						—						(2,875)						(793)						(3,668)						—						—						—						(3,668)
Total other income (expense), net						364,932						378,793						11,035						1,888						756,648						51,013						54,471						(18,585)						843,546
Cost of services and expenses:
Total cost of services						392						134,106						—						—						134,498						—						49,115						—						183,613
Salaries and benefits						224,172						121,956						3,529						8,491						358,148						1,129						72,159						(1,735)						429,701
Depreciation and amortization						15,304						8,012						—						944						24,260						—						21,312						—						45,572
Reinsurance losses and underwriting expenses						—						—						—						—						—						39,066						—						—						39,066
Postage expense						28,350																								28,350																		(28,350)						—
Servicing fees																		24,503						711						25,214																		(25,214)						—
Other expenses						31,119						23,772						3,217						5,577						63,685						2,470						37,359						35,306						138,820
Intersegment expenses, net						55,955						14,216						3,756						1,729						75,656						665						(77,729)						1,408						—
Total operating expenses						354,900						167,956						35,005						17,452						575,313						43,330						53,101						(18,585)						653,159
Impairment expense and provision for beneficial interests						—						—						34,863						—						34,863						—						2,002						—						36,865
Total expenses						355,292						302,062						69,868						17,452						744,674						43,330						104,218						(18,585)						873,637
Income (loss) before income taxes						13,686						100,046						41,710						(7,330)						148,112						44,325						(42,295)						—						150,141
Income tax (expense) benefit						(3,284)						(24,035)						(10,010)						1,800						(35,529)						(10,550)						8,426						—						(37,653)
Net income (loss)						10,402						76,011						31,700						(5,530)						112,583						33,775						(33,869)						—						112,488
Net (income) loss attributable to noncontrolling interests						—						101						—						—						101						(366)						8,663						—						8,398
Net income (loss) attributable to Nelnet, Inc.						$	10,402					76,112						31,700						(5,530)						112,684						33,409						(25,206)						—						120,886

11

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Loan Servicing and Systems Revenue

The following table presents disaggregated revenue by service offering for the Loan Servicing and Systems operating segment:

			Three months ended																		Nine months ended
			September 30, 2025						June 30, 2025						September 30, 2024						September 30, 2025						September 30, 2024
Government loan servicing (a)			$	112,798					85,737						85,215						285,896						277,705
Private education and consumer loan servicing			24,293						22,733						13,057						69,721						38,634
FFELP loan servicing			2,035						2,241						2,945						6,909						9,570
Software services			10,584						9,452						5,197						27,027						14,617
Outsourced services			1,342						561						1,761						2,964						3,902
Loan servicing and systems revenue			$	151,052					120,724						108,175						392,517						344,428

(a)    Upon reaching a final agreement with the Department, the Company recognized $32.9 million of non-recurring revenue during the third quarter of 2025 on a contract modification for services previously performed.

Loan Servicing Volumes

			As of
			September 30, 2025						June 30, 2025						March 31, 2025						December 31, 2024						September 30, 2024						June 30, 2024						March 31, 2024						December 31, 2023
Servicing volume (dollars in millions):
Government			$	458,679					465,689						482,786						489,877						492,142						489,298						495,409						494,691
FFELP			11,982						12,386						12,826						13,260						13,745						14,576						15,783						17,462
Private and consumer			38,060						38,018						46,728						29,226						20,666						19,876						21,015						20,493
Total			$	508,721					516,093						542,340						532,363						526,553						523,750						532,207						532,646
Number of servicing borrowers:
Government			12,387,665						12,694,386						13,453,127						14,049,550						14,114,468						14,096,152						14,328,013						14,503,057
FFELP			482,696						502,205						524,421						549,861						574,979						610,745						656,814						725,866
Private and consumer			1,325,037						1,326,451						1,350,999						1,168,293						851,747						829,072						882,256						894,703
Total			14,195,398						14,523,042						15,328,547						15,767,704						15,541,194						15,535,969						15,867,083						16,123,626
Number of remote hosted borrowers:			2,839,493						2,056,358						1,427,800						842,200						662,075						133,681						65,295						70,580

Education Technology Services and Payments Revenue

The following table presents disaggregated revenue by servicing offering for the Education Technology Services and Payments operating segment:

			Three months ended																		Nine months ended
			September 30, 2025						June 30, 2025						September 30, 2024						September 30, 2025						September 30, 2024
Tuition payment plan services			$	32,971					36,013						31,659						109,057						104,702
Payment processing			59,484						37,515						55,813						148,535						137,926
Education technology services			36,323						44,481						30,080						136,499						133,306
Other			543						175						627						745						2,693
Education technology services and payments revenue			$	129,321					118,184						118,179						394,836						378,627

This segment of the Company’s business is subject to seasonal fluctuations which correspond, or are related to, the traditional school year. Based on the timing of revenue recognition and when expenses are incurred, revenue and before tax operating margin are higher in the first quarter compared with the remainder of the year.

12

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Other Income (Expense)

The following table presents the components of "other, net" in "other income (expense)" on the consolidated statements of income:

			Three months ended																		Nine months ended
			September 30, 2025						June 30, 2025						September 30, 2024						September 30, 2025						September 30, 2024
Investment activity, net			$	42,317					8,852						8,529						56,216						7,447
Administration/sponsor fee income			2,267						1,293						1,420						4,978						4,448
Investment advisory services (WRCM)			2,010						1,504						1,394						4,987						4,427
Borrower late fee income			1,817						1,642						1,741						5,046						7,460
ALLO preferred return			—						5,985						4,783						14,400						11,353
Loss from ALLO voting membership interest investment			—						—						—						—						(10,693)
Loss from solar investments, net (a)			(10,884)						(1,502)						(11,238)						(11,930)						(11,068)
(Loss) gain on debt repurchases			(8,304)						388						7						(7,865)						(2)
Other			6,507						4,814						9,070						16,569						20,435
Other, net			$	35,730					22,976						15,706						82,401						33,807

(a)    The Company accounts for its solar investments using the Hypothetical Liquidation at Book Value (HLBV) method of accounting. For the majority of the Company’s solar investments, the HLBV method of accounting results in accelerated losses in the initial years of investment and gains recognized at the end of the contractual agreement (typically five years). The following table presents (i) the Company's recognized HLBV losses and gains recognized from sales of certain investments, which include losses and gains attributable to third-party noncontrolling interest investors (syndication partners), included in “other, net” in "other income (expense)" on the consolidated statements of income, (ii) solar net losses and gains attributed to noncontrolling interest investors included in “net loss attributable to noncontrolling interests” on the consolidated statements of income, and (iii) the recognized pre-tax net loss or gain attributable to the Company:

			Three months ended																		Nine months ended
			September 30, 2025						June 30, 2025						September 30, 2024						September 30, 2025						September 30, 2024
Losses from HLBV accounting (gross)			$	(10,884)					(6,463)						(11,238)						(19,963)						(15,276)
Gains from sales (gross)			—						4,961						—						8,033						4,208
Losses from solar investments, net			(10,884)						(1,502)						(11,238)						(11,930)						(11,068)
Less: losses attributable to noncontrolling members, net			(5,659)						(3,159)						(3,936)						(9,863)						(5,568)
Net (loss) gain attributable to the Company			$	(5,225)					1,657						(7,302)						(2,067)						(5,500)

Derivative Settlements

The following table summarizes the components of "derivative settlements, net" included in the consolidated statements of income related to derivative instruments that do not qualify for hedge accounting:

			Three months ended																		Nine months ended
			September 30, 2025						June 30, 2025						September 30, 2024						September 30, 2025						September 30, 2024
Basis swaps			$	156					154						159						463						773
Interest rate swaps - floor income hedges			438						427						1,200						1,293						3,583
Interest rate swaps - intercompany deposits			167						163						281						494						690
Total derivative settlements - income			$	761					744						1,640						2,250						5,046

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Loans and Accrued Interest Receivable and Allowance for Loan Losses

Loans and accrued interest receivable and allowance for loan losses consisted of the following:

			As of						As of						As of
			September 30, 2025						December 31, 2024						September 30, 2024
Non-Nelnet Bank:
Federally insured loans:
Stafford and other			$	1,889,476					2,108,960						2,202,590
Consolidation			5,970,781						6,279,604						6,868,152
Total			7,860,257						8,388,564						9,070,742
Private education loans			147,737						221,744						234,295
Consumer loans and other financing receivables (a)			840,739						345,560						244,552
Non-Nelnet Bank loans			8,848,733						8,955,868						9,549,589
Nelnet Bank:
Federally insured loans:
Stafford and other			24,745						—						—
Consolidation			154,203						—						—
Total			178,948						—						—
Private education loans			529,396						482,445						352,654
Consumer and other loans			266,539						162,152						207,218
Nelnet Bank loans			974,883						644,597						559,872
Accrued interest receivable			558,912						549,283						600,097
Loan discount and deferred lender fees, net of unamortized loan premiums and deferred origination costs			(47,735)						(42,114)						(34,535)
Allowance for loan losses:
Non-Nelnet Bank:
Federally insured loans			(43,535)						(49,091)						(50,834)
Private education loans			(7,103)						(11,130)						(11,744)
Consumer loans and other financing receivables			(33,147)						(38,468)						(22,380)
Non-Nelnet Bank allowance for loan losses			(83,785)						(98,689)						(84,958)
Nelnet Bank:
Federally insured loans			(707)						—						—
Private education loans			(11,732)						(10,086)						(3,670)
Consumer and other loans			(11,308)						(6,115)						(13,514)
Nelnet Bank allowance for loan losses			(23,747)						(16,201)						(17,184)
			$	10,227,261					9,992,744						10,572,881

(a)    In the third quarter of 2025, the Company began to purchase Pay Later receivables via a forward flow agreement from an unrelated third party. As of September 30, 2025, the balance of Pay Later receivables was $548.3 million and these loans are included in the "consumer loans and other financing receivables" in the above table. Pay Later receivables enable consumers to purchase goods or services at the time of the transaction and split their purchase into installment payments. The Company purchases Pay Later receivables at a discount, and accretes the discount into interest income over the estimated life of the receivable.

The Company has partial ownership in certain consumer, private education, and federally insured student loan securitizations that are accounted for as held-to-maturity beneficial interest investments and included in "other investments and notes receivable, net" in the Company's consolidated financial statements. As of the latest remittance reports filed by the various trusts prior to or as of September 30, 2025, the Company’s ownership correlates to approximately $1.75 billion of loans included in these securitizations. The loans held in these securitizations are not included in the above table. Investment interest income earned by the Company from the beneficial interest in loan securitizations is included in "investment interest" on the Company's consolidated statements of income and is not a component of the Company's loan interest income.

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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						As of
			September 30, 2025						December 31, 2024						September 30, 2024
Non-Nelnet Bank:
Federally insured loans (a)			0.55		%				0.59		%				0.56		%
Private education loans			4.81		%				5.02		%				5.01		%
Consumer loans and other financing receivables (b)			3.94		%				11.13		%				9.15		%
Nelnet Bank:
Federally insured loans (a)			0.40		%				—						—
Private education loans			2.22		%				2.09		%				1.04		%
Consumer and other loans			4.24		%				3.77		%				6.52		%

(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 19.4%, 20.6%, and 20.7% as of September 30, 2025, December 31, 2024, and September 30, 2024, respectively, and for Nelnet Bank was 17.4% as of September 30, 2025.

(b)    In the third quarter of 2025, the Company began to purchase Pay Later receivables that have lower allowance rates.

Loan Spread Analysis - Non-Nelnet Bank

The following table analyzes the loan spread on AGM’s (Non-Nelnet Bank) 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:

			Three months ended																		Nine months ended
			September 30, 2025						June 30, 2025						September 30, 2024						September 30, 2025						September 30, 2024
Variable loan yield, gross			6.89		%				7.77		%				8.16		%				7.37		%				8.10		%
Consolidation rebate fees			(0.83)						(0.82)						(0.80)						(0.82)						(0.80)
Discount accretion, net of premium and deferred origination costs amortization			0.50						(0.15)						(0.02)						0.07						0.04
Variable loan yield, net			6.56						6.80						7.34						6.62						7.34
Loan cost of funds - interest expense (a)			(5.34)						(5.60)						(6.44)						(5.45)						(6.48)
Loan cost of funds - derivative settlements (b) (c)			0.01						0.01						0.01						0.01						0.01
Variable loan spread			1.23						1.21						0.91						1.18						0.87
Fixed-rate floor income, gross			0.05						0.04						0.01						0.05						0.01
Fixed-rate floor income - derivative settlements (b) (d)			0.02						0.02						0.05						0.02						0.04
Fixed-rate floor income, net of settlements on derivatives			0.07						0.06						0.06						0.07						0.05
Core loan spread			1.30		%				1.27		%				0.97		%				1.25		%				0.92		%
Average balance of AGM's loans			$	8,774,923					9,215,579						9,792,095						9,178,273						10,612,686
Average balance of AGM's debt outstanding			7,775,269						8,439,800						9,296,236						8,219,778						10,280,527

(a)    The Company recognized $5.6 million in non-cash interest expense during the third quarter of 2024 as a result of writing off the remaining unamortized debt discount related to the redemption of certain asset-backed debt securities prior to their maturity. This non-cash expense was excluded from the respective periods in the table above.

(b)    Derivative settlements represent the cash paid or received during the respective 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. 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. See "Derivative Settlements" included in this supplement for the net settlement activity recognized by the Company for each type of derivative for the periods presented in the table.

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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																		Nine months ended
			September 30, 2025						June 30, 2025						September 30, 2024						September 30, 2025						September 30, 2024
Core loan spread			1.30		%				1.27		%				0.97		%				1.25		%				0.92		%
Derivative settlements (basis swaps)			(0.01)						(0.01)						(0.01)						(0.01)						(0.01)
Derivative settlements (fixed-rate floor income)			(0.02)						(0.02)						(0.05)						(0.02)						(0.04)
Loan spread			1.27		%				1.24		%				0.91		%				1.22		%				0.87		%

(c)    Derivative settlements consist of net settlements received related to the Company’s basis swaps.

(d)    Derivative settlements consist of net settlements received related to the Company’s floor income interest rate swaps.

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