NNI 8-K

Nelnet Inc (NNI)

8-K 2023-02-28 For: 2023-02-28

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Added on April 04, 2026

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121 South 13th Street, Suite 100
Lincoln,	Nebraska	68508
(Address of principal executive offices)		(Zip Code)


Title of each class	Trading Symbol	Name of each exchange on which registered
Class A Common Stock, Par Value $0.01 per Share	NNI	New York Stock Exchange


Exhibit No.						Description

99.1						Press Release dated February 28, 2023 - "Nelnet Reports Fourth Quarter 2022 Results"

99.2						Supplemental Financial Information for the Quarter Ended December 31, 2022

99.3						2022 Letter to Shareholders from the Chief Executive Officer

104						Cover Page Interactive Data File (formatted as Inline XBRL and included as Exhibit 101).


	Three months ended				Year ended
	December 31, 2022		September 30, 2022	December 31, 2021	December 31, 2022	December 31, 2021
Interest income:
Loan interest	$	228,878	176,244	112,118	651,205	482,337
Investment interest	34,012		26,889	12,376	91,601	41,498
Total interest income	262,890		203,133	124,494	742,806	523,835
Interest expense on bonds and notes payable and bank deposits	181,790		126,625	48,294	430,137	176,233
Net interest income	81,100		76,508	76,200	312,669	347,602
Less provision (negative provision) for loan losses	27,801		9,665	(1,578)	46,441	(12,426)
Net interest income after provision for loan losses	53,299		66,843	77,778	266,228	360,028
Other income (expense):
Loan servicing and systems revenue	140,021		134,197	150,402	535,459	486,363
Education technology, services, and payment processing revenue	98,332		106,894	80,950	408,543	338,234

Solar construction revenue	15,186		9,358	—	24,543	—
Other, net	735		2,225	48,497	25,486	78,681
(Loss) gain on sale of loans, net	(2,713)		2,627	—	2,903	18,715

Impairment expense and provision for beneficial interests, net	(9,361)		121	(4,137)	(15,523)	(16,360)
Derivative market value adjustments and derivative settlements, net	13,424		63,262	42,579	264,634	71,446
Total other income (expense)	255,624		318,684	318,291	1,246,045	977,079
Cost of services:
Cost to provide education technology, services, and payment processing services	39,330		42,676	28,597	148,403	108,660

Cost to provide solar construction services	14,004		5,968	—	19,971	—
Total cost of services	53,334		48,644	28,597	168,374	108,660
Operating expenses:
Salaries and benefits	151,568		147,198	143,781	589,579	507,132
Depreciation and amortization	20,099		18,772	17,612	74,077	73,741


Other expenses	50,481		43,858	37,857	170,778	145,469
Total operating expenses	222,148		209,828	199,250	834,434	726,342
Income before income taxes	33,441		127,055	168,222	509,465	502,105
Income tax expense	(5,459)		(26,586)	(39,075)	(113,224)	(115,822)
Net income	27,982		100,469	129,147	396,241	386,283
Net loss attributable to noncontrolling interests	2,791		4,329	3,536	11,106	7,003
Net income attributable to Nelnet, Inc.	$	30,773	104,798	132,683	407,347	393,286
Earnings per common share:
Net income attributable to Nelnet, Inc. shareholders - basic and diluted	$	0.83	2.80	3.46	10.83	10.20
Weighted average common shares outstanding - basic and diluted	37,290,293		37,380,493	38,352,942	37,603,033	38,572,801


	As of		As of	As of
	December 31, 2022		September 30, 2022	December 31, 2021
Assets:
Loans and accrued interest receivable, net	$	15,243,889	15,876,251	18,335,197
Cash, cash equivalents, and investments	2,230,063		2,126,712	1,714,482
Restricted cash	1,239,470		980,131	1,068,626
Goodwill and intangible assets, net	240,403		242,401	194,121
Other assets	420,219		338,038	365,615
Total assets	$	19,374,044	19,563,533	21,678,041
Liabilities:
Bonds and notes payable	$	14,637,195	15,042,595	17,631,089
Bank deposits	691,322		580,825	344,315
Other liabilities	845,625		773,754	749,799
Total liabilities	16,174,142		16,397,174	18,725,203
Equity:
Total Nelnet, Inc. shareholders' equity	3,198,959		3,180,614	2,951,206
Noncontrolling interests	943		(14,255)	1,632
Total equity	3,199,902		3,166,359	2,952,838
Total liabilities and equity	$	19,374,044	19,563,533	21,678,041


	Three months ended December 31,			Year ended December 31,
	2022		2021	2022	2021
GAAP net income attributable to Nelnet, Inc.	$	30,773	132,683	407,347	393,286
Realized and unrealized derivative market value adjustments (a)	7,434		(48,359)	(231,691)	(92,813)
Tax effect (b)	(1,784)		11,606	55,606	22,275
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments	$	36,423	95,930	231,262	322,748

Earnings per share:
GAAP net income attributable to Nelnet, Inc.	$	0.83	3.46	10.83	10.20
Realized and unrealized derivative market value adjustments (a)	0.20		(1.26)	(6.16)	(2.41)
Tax effect (b)	(0.05)		0.30	1.48	0.58
Non-GAAP net income attributable to Nelnet, Inc., excluding derivative market value adjustments	$	0.98	2.50	6.15	8.37


	Three months ended December 31, 2022
	Loan Servicing and Systems		Education Technology, Services, and Payment Processing	Asset Generation and Management	Nelnet Bank	Corporate and Other Activities	Eliminations	Total
Total interest income	$	1,578	4,457	234,631	10,181	21,489	(9,446)	262,890
Interest expense	—		—	176,180	5,263	9,793	(9,446)	181,790
Net interest income	1,578		4,457	58,451	4,918	11,696	—	81,100
Less provision (negative provision) for loan losses	—		—	27,423	378	—	—	27,801
Net interest income after provision for loan losses	1,578		4,457	31,028	4,540	11,696	—	53,299
Other income (expense):
Loan servicing and systems revenue	140,021		—	—	—	—	—	140,021
Intersegment revenue	8,028		64	—	—	—	(8,092)	—
Education technology, services, and payment processing revenue	—		98,332	—	—	—	—	98,332

Solar construction revenue	—		—	—	—	15,186	—	15,186
Other, net	597		—	4,898	402	(5,161)	—	735
(Loss) gain on sale of loans, net	—		—	(2,712)	—	—	—	(2,713)

Impairment expense and provision for beneficial interests, net	(5,511)		(2,239)	—	(214)	(1,397)	—	(9,361)
Derivative settlements, net	—		—	20,858	—	—	—	20,858
Derivative market value adjustments, net	—		—	(7,434)	—	—	—	(7,434)
Total other income (expense)	143,135		96,157	15,610	188	8,628	(8,092)	255,624
Cost of services:
Cost to provide education technology, services, and payment processing services	—		39,330	—	—	—	—	39,330

Cost to provide solar construction services	—		—	—	—	14,003	—	14,004
Total cost of services	—		39,330	—	—	14,003	—	53,334
Operating expenses:
Salaries and benefits	87,550		35,072	666	1,866	26,415	—	151,568
Depreciation and amortization	8,199		2,639	—	4	9,258	—	20,099
Other expenses	13,299		10,555	6,910	916	18,802	—	50,481
Intersegment expenses, net	18,703		5,367	8,985	73	(25,036)	(8,092)	—
Total operating expenses	127,751		53,633	16,561	2,859	29,439	(8,092)	222,148
Income (loss) before income taxes	16,962		7,651	30,077	1,869	(23,118)	—	33,441
Income tax (expense) benefit	(4,071)		(1,838)	(7,219)	(439)	8,108	—	(5,459)
Net income (loss)	12,891		5,813	22,858	1,430	(15,010)	—	27,982
Net (income) loss attributable to noncontrolling interests	—		5	—	—	2,786	—	2,791
Net income (loss) attributable to Nelnet, Inc.	$	12,891	5,818	22,858	1,430	(12,224)	—	30,773


	Three months ended September 30, 2022
	Loan Servicing and Systems		Education Technology, Services, and Payment Processing	Asset Generation and Management	Nelnet Bank	Corporate and Other Activities	Eliminations	Total
Total interest income	$	831	3,707	182,932	7,551	10,860	(2,748)	203,133
Interest expense	—		—	120,009	3,298	6,067	(2,748)	126,625
Net interest income	831		3,707	62,923	4,253	4,793	—	76,508
Less provision (negative provision) for loan losses	—		—	9,215	450	—	—	9,665
Net interest income after provision for loan losses	831		3,707	53,708	3,803	4,793	—	66,843
Other income (expense):
Loan servicing and systems revenue	134,197		—	—	—	—	—	134,197
Intersegment revenue	8,281		8	—	—	—	(8,289)	—
Education technology, services, and payment processing revenue	—		106,894	—	—	—	—	106,894

Solar construction revenue	—		—	—	—	9,358	—	9,358
Other, net	596		—	4,627	566	(3,564)	—	2,225
(Loss) gain on sale of loans, net	—		—	2,627	—	—	—	2,627

Impairment expense and provision for beneficial interests, net	—		—	—	—	121	—	121
Derivative settlements, net	—		—	10,271	—	—	—	10,271
Derivative market value adjustments, net	—		—	52,991	—	—	—	52,991
Total other income (expense)	143,074		106,902	70,516	566	5,915	(8,289)	318,684
Cost of services:
Cost to provide education technology, services, and payment processing services	—		42,676	—	—	—	—	42,676

Cost to provide solar construction services	—		—	—	—	5,968	—	5,968
Total cost of services	—		42,676	—	—	5,968	—	48,644
Operating expenses:
Salaries and benefits	82,067		34,950	653	1,814	27,713	—	147,198
Depreciation and amortization	5,784		2,532	—	4	10,452	—	18,772
Other expenses	16,654		7,034	3,349	1,427	15,395	—	43,858
Intersegment expenses, net	17,486		4,762	8,350	69	(22,378)	(8,289)	—
Total operating expenses	121,991		49,278	12,352	3,314	31,182	(8,289)	209,828
Income (loss) before income taxes	21,914		18,655	111,872	1,055	(26,442)	—	127,055
Income tax (expense) benefit	(5,259)		(4,475)	(26,849)	(246)	10,244	—	(26,586)
Net income (loss)	16,655		14,180	85,023	809	(16,198)	—	100,469
Net (income) loss attributable to noncontrolling interests	—		(61)	—	—	4,390	—	4,329
Net income (loss) attributable to Nelnet, Inc.	$	16,655	14,119	85,023	809	(11,808)	—	104,798


	Three months ended December 31, 2021
	Loan Servicing and Systems		Education Technology, Services, and Payment Processing	Asset Generation and Management	Nelnet Bank	Corporate and Other Activities	Eliminations	Total
Total interest income	$	42	258	118,753	2,242	4,423	(1,222)	124,494
Interest expense	24		—	48,636	499	358	(1,222)	48,294
Net interest income	18		258	70,117	1,743	4,065	—	76,200
Less provision (negative provision) for loan losses	—		—	(1,994)	416	—	—	(1,578)
Net interest income after provision for loan losses	18		258	72,111	1,327	4,065	—	77,778
Other income (expense):
Loan servicing and systems revenue	150,402		—	—	—	—	—	150,402
Intersegment revenue	8,587		3	—	—	—	(8,590)	—
Education technology, services, and payment processing revenue	—		80,950	—	—	—	—	80,950

Solar construction revenue	—		—	—	—	—	—	—
Other, net	765		(14)	38,820	237	8,689	—	48,497
(Loss) gain on sale of loans, net	—		—	—	—	—	—	—

Impairment expense and provision for beneficial interests, net	—		—	—	—	(4,137)	—	(4,137)
Derivative settlements, net	—		—	(5,780)	—	—	—	(5,780)
Derivative market value adjustments, net	—		—	48,359	—	—	—	48,359
Total other income (expense)	159,754		80,939	81,399	237	4,552	(8,590)	318,291
Cost of services:
Cost to provide education technology, services, and payment processing services	—		28,597	—	—	—	—	28,597

Cost to provide solar construction services	—		—	—	—	—	—	—
Total cost of services	—		28,597	—	—	—	—	28,597
Operating expenses:
Salaries and benefits	87,255		29,892	542	1,086	25,006	—	143,781
Depreciation and amortization	5,239		2,615	—	—	9,755	—	17,612
Other expenses	13,424		5,254	724	549	17,910	—	37,857
Intersegment expenses, net	19,964		4,324	9,241	35	(24,974)	(8,590)	—
Total operating expenses	125,882		42,085	10,507	1,670	27,697	(8,590)	199,250
Income (loss) before income taxes	33,890		10,515	143,003	(106)	(19,080)	—	168,222
Income tax (expense) benefit	(8,134)		(2,523)	(34,321)	24	5,879	—	(39,075)
Net income (loss)	25,756		7,992	108,682	(82)	(13,201)	—	129,147
Net (income) loss attributable to noncontrolling interests	—		—	—	—	3,536	—	3,536
Net income (loss) attributable to Nelnet, Inc.	$	25,756	7,992	108,682	(82)	(9,665)	—	132,683


	Year ended December 31, 2022
	Loan Servicing and Systems		Education Technology, Services, and Payment Processing	Asset Generation and Management	Nelnet Bank	Corporate and Other Activities	Eliminations	Total
Total interest income	$	2,722	9,377	676,557	25,973	42,576	(14,399)	742,806
Interest expense	44		—	411,900	11,055	21,538	(14,399)	430,137
Net interest income	2,678		9,377	264,657	14,918	21,038	—	312,669
Less provision (negative provision) for loan losses	—		—	44,601	1,840	—	—	46,441
Net interest income after provision for loan losses	2,678		9,377	220,056	13,078	21,038	—	266,228
Other income (expense):
Loan servicing and systems revenue	535,459		—	—	—	—	—	535,459
Intersegment revenue	33,170		81	—	—	—	(33,251)	—
Education technology, services, and payment processing revenue	—		408,543	—	—	—	—	408,543

Solar construction revenue	—		—	—	—	24,543	—	24,543
Other, net	2,543		—	21,170	2,625	(853)	—	25,486
(Loss) gain on sale of loans, net	—		—	2,903	—	—	—	2,903

Impairment expense and provision for beneficial interests, net	(5,511)		(2,239)	—	(214)	(7,559)	—	(15,523)
Derivative settlements, net	—		—	32,943	—	—	—	32,943
Derivative market value adjustments, net	—		—	231,691	—	—	—	231,691
Total other income (expense)	565,661		406,385	288,707	2,411	16,131	(33,251)	1,246,045
Cost of services:
Cost to provide education technology, services, and payment processing services	—		148,403	—	—	—	—	148,403

Cost to provide solar construction services	—		—	—	—	19,971	—	19,971
Total cost of services	—		148,403	—	—	19,971	—	168,374
Operating expenses:
Salaries and benefits	344,809		133,428	2,524	6,948	101,870	—	589,579
Depreciation and amortization	24,255		10,184	—	15	39,623	—	74,077
Other expenses	59,674		30,104	16,835	3,925	60,240	—	170,778
Intersegment expenses, net	75,145		19,538	34,679	244	(96,355)	(33,251)	—
Total operating expenses	503,883		193,254	54,038	11,132	105,378	(33,251)	834,434
Income (loss) before income taxes	64,456		74,105	454,725	4,357	(88,180)	—	509,465
Income tax (expense) benefit	(15,470)		(17,785)	(109,134)	(1,013)	30,178	—	(113,224)
Net income (loss)	48,986		56,320	345,591	3,344	(58,002)	—	396,241
Net (income) loss attributable to noncontrolling interests	—		(3)	—	—	11,109	—	11,106
Net income (loss) attributable to Nelnet, Inc.	$	48,986	56,317	345,591	3,344	(46,893)	—	407,347


	Year ended December 31, 2021
	Loan Servicing and Systems		Education Technology, Services, and Payment Processing	Asset Generation and Management	Nelnet Bank	Corporate and Other Activities	Eliminations	Total
Total interest income	$	137	1,075	506,901	7,721	9,801	(1,800)	523,835
Interest expense	94		—	172,918	1,507	3,515	(1,800)	176,233
Net interest income	43		1,075	333,983	6,214	6,286	—	347,602
Less provision (negative provision) for loan losses	—		—	(13,220)	794	—	—	(12,426)
Net interest income after provision for loan losses	43		1,075	347,203	5,420	6,286	—	360,028
Other income (expense):
Loan servicing and systems revenue	486,363		—	—	—	—	—	486,363
Intersegment revenue	33,956		12	—	—	—	(33,968)	—
Education technology, services, and payment processing revenue	—		338,234	—	—	—	—	338,234

Solar construction revenue	—		—	—	—	—	—	—
Other, net	3,307		—	34,306	713	40,356	—	78,681
(Loss) gain on sale of loans, net	—		—	18,715	—	—	—	18,715

Impairment expense and provision for beneficial interests, net	(13,243)		—	2,436	—	(5,553)	—	(16,360)
Derivative settlements, net	—		—	(21,367)	—	—	—	(21,367)
Derivative market value adjustments, net	—		—	92,813	—	—	—	92,813
Total other income (expense)	510,383		338,246	126,903	713	34,803	(33,968)	977,079
Cost of services:
Cost to provide education technology, services, and payment processing services	—		108,660	—	—	—	—	108,660

Cost to provide solar construction services	—		—	—	—	—	—	—
Total cost of services	—		108,660	—	—	—	—	108,660
Operating expenses:
Salaries and benefits	297,406		112,046	2,135	5,042	90,502	—	507,132
Depreciation and amortization	25,649		11,404	—	—	36,682	—	73,741
Other expenses	52,720		19,318	13,487	1,776	58,173	—	145,469
Intersegment expenses, net	72,206		15,180	34,868	107	(88,393)	(33,968)	—
Total operating expenses	447,981		157,948	50,490	6,925	96,964	(33,968)	726,342
Income (loss) before income taxes	62,445		72,713	423,616	(792)	(55,875)	—	502,105
Income tax (expense) benefit	(14,987)		(17,451)	(101,668)	175	18,109	—	(115,822)
Net income (loss)	47,458		55,262	321,948	(617)	(37,766)	—	386,283
Net (income) loss attributable to noncontrolling interests	—		—	—	—	7,003	—	7,003
Net income (loss) attributable to Nelnet, Inc.	$	47,458	55,262	321,948	(617)	(30,763)	—	393,286


	As of
	December 31, 2020		March 31, 2021	June 30, 2021	September 30, 2021	December 31, 2021	March 31, 2022	June 30, 2022	September 30, 2022	December 31, 2022
Servicing volume (dollars in millions):
Government	$	443,248	453,681	452,450	461,054	478,402	507,653	542,398	545,546	545,373
FFELP	30,763		30,084	29,361	28,244	26,916	25,646	24,224	22,412	20,226
Private and consumer	16,226		21,397	24,758	24,229	23,702	23,433	22,838	22,461	21,866
Total	$	490,237	505,162	506,569	513,527	529,020	556,732	589,460	590,419	587,465

Number of servicing borrowers:
Government	13,251,930		13,301,364	13,253,051	13,570,056	14,196,520	14,727,860	15,426,607	15,657,942	15,777,328
FFELP	1,300,677		1,233,461	1,198,863	1,150,214	1,092,066	1,034,913	977,785	910,188	829,939
Private and consumer	636,136		882,477	1,039,537	1,097,252	1,065,439	1,030,863	998,454	979,816	951,866
Total	15,188,743		15,417,302	15,491,451	15,817,522	16,354,025	16,793,636	17,402,846	17,547,946	17,559,133

Number of remote hosted borrowers:	6,555,841		4,307,342	4,338,570	4,548,541	4,799,368	5,487,943	5,738,381	6,025,377	6,135,760


Fixed interest rate range	Borrower/lender weighted average yield	Estimated variable conversion rate (a)	Loan balance








6.5 - 6.99%	6.77%	4.13%	$	135,031
7.0 - 7.49%	7.18%	4.54%	69,205
7.5 - 7.99%	7.72%	5.08%	158,317
8.0 - 8.99%	8.18%	5.54%	363,579
> 9.0%	9.05%	6.41%	139,081
			$	865,213


Maturity	Notional amount		Weighted average fixed rate paid by the Company (a)


2024	$	2,000,000	0.35	%

2026	500,000		1.02
2031	100,000		1.53
2032 (b)	200,000		2.92


	$	2,800,000	0.70	%


	Three months ended December 31,
	2022			2021
Variable loan yield, gross	6.52		%	2.62	%
Consolidation rebate fees	(0.82)			(0.85)
Discount accretion, net of premium and deferred origination costs amortization (a)	0.06			0.02
Variable loan yield, net	5.76			1.79
Loan cost of funds - interest expense	(4.64)			(1.06)
Loan cost of funds - derivative settlements (b) (c)	(0.01)			(0.02)
Variable loan spread	1.11			0.71
Fixed rate floor income, gross	0.07			0.76
Fixed rate floor income - derivative settlements (b) (d)	0.59			(0.11)
Fixed rate floor income, net of settlements on derivatives	0.66			0.65
Core loan spread	1.77		%	1.36	%

Average balance of AGM's loans	$	14,764,466		18,063,787
Average balance of AGM's debt outstanding	14,352,548			17,777,230


	Three months ended December 31,
	2022		2021
Core loan spread	1.77	%	1.36	%
Derivative settlements (1:3 basis swaps)	0.01		0.02
Derivative settlements (fixed rate floor income)	(0.59)		0.11
Loan spread	1.19	%	1.49	%


	Three months ended December 31,
	2022		2021
Variable interest income, gross	$	242,241	119,994
Consolidation rebate fees	(30,243)		(38,566)
Discount accretion, net of premium and deferred origination costs amortization	10,341		(5,123)
Variable interest income, net	222,339		76,305
Interest on bonds and notes payable	(167,846)		(47,459)
Derivative settlements (basis swaps), net (a)	(448)		(699)
Variable loan interest margin, net of settlements on derivatives (a)	54,045		28,147
Fixed rate floor income, gross	2,510		34,577
Derivative settlements (interest rate swaps), net (a)	21,306		(5,081)
Fixed rate floor income, net of settlements on derivatives (a)	23,816		29,496
Core loan interest income (a)	77,861		57,643
Investment interest	9,782		7,871
Intercompany interest	(8,334)		(1,177)
Net interest income (net of settlements on derivatives) (a)	$	79,309	64,337


	Year ended December 31,
	2022		2021	Certain Items Impacting Comparability (All dollar amounts below are pre-tax)
NDS	$	64,456	62,445	•The recognition of $5.5 million of non-cash impairment charges in 2022 compared with $13.2 million in 2021, due primarily to continued evaluation of office space needs as employees continue to work from home due to COVID-19. •Decrease in operating margin in 2022 compared with 2021 due to increased operating expenses in 2022, primarily salaries and benefits, as the Company hired employees in preparation for the resumption of federal student loan payments once the CARES Act suspension was to expire. The expiration of the CARES Act was extended multiple times throughout 2022.
NBS	74,105		72,713	•The recognition of $9.4 million of interest income in 2022 compared with $1.1 million in 2021 due to higher interest rates. •The recognition of a $2.2 million non-cash impairment charge in 2022 related to previously acquired computer software. •Decrease in operating margin in 2022 compared with 2021 due to additional investments during 2022 in the development of new services and technologies; and superior customer experiences to grow, retain, and diversify revenue.
AGM	454,725		423,616	•A net gain of $231.7 million related to changes in the fair value of derivative instruments that do not qualify for hedge accounting in 2022 compared with a gain of $92.8 million in 2021. •A decrease of $46.3 million in net interest income due to the decrease in the average balance of loans in 2022 compared with 2021. •An increase of $27.1 million in net interest income due to an increase in core loan spread in 2022 compared with 2021. •A decrease of $23.8 million in interest expense in 2021 as a result of the Company reversing a historical accrued interest liability on certain bonds, which liability the Company determined is no longer probable of being required to be paid. •An increase of $8.4 million in interest income in 2022 compared with a $6.2 million decrease to interest income in 2021, as a result of increasing the constant prepayment rate used to amortize/accrete federally insured loan premium/discounts for loans. •The recognition of $44.6 million in provision for loan losses in 2022 compared with a negative provision of $13.2 million in 2021. •The recognition of a $32.9 million gain in 2021 related to the Company’s joint venture to acquire a private education student loan portfolio previously owned by Wells Fargo. •The recognition of $10.8 million in borrower late fees in 2022 compared with $3.4 million in 2021. •The recognition of $9.9 million in interest income on restricted cash in 2022 compared with $0.1 million in 2021 due to an increase in the balance of restricted cash and interest rates. •The recognition of $7.9 million in administration and sponsor fee income in 2022 compared with $3.7 million in 2021. •The recognition of $2.9 million in gains from the sale of loans in 2022 compared with $18.7 million in 2021. •The recognition of a $1.2 million gain in 2022 from the repurchase of debt compared with a loss of $6.8 million in 2021.
Nelnet Bank	4,357		(792)	•Increase in 2022 compared with 2021 was due to an increase in loans and investments, offset by increased operating expenses to support the bank’s growth.
Corporate	(88,180)		(55,875)	•The recognition of a net loss of $68.0 million in 2022 related to the Company’s investment in ALLO compared with a net loss of $42.1 million in 2021. •The recognition of $12.9 million of non-cash impairment and contingency charges in 2022 compared with $5.6 million in 2021. Impairment charges were due to certain venture capital investments.
Net income before taxes	509,465		502,105
Income tax expense	(113,224)		(115,822)
Net loss attributable to noncontrolling interests	11,106		7,003
Net income	$	407,347	393,286