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Fair Value Measurements (Tables) | 6 Months Ended
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Jun. 30, 2024
Fair Value Disclosures [Abstract] |
Valuation of Financial Instruments that are Marked-to-Market on Recurring Basis | The following table summarizes the valuation of our financial instruments that are marked-to-fair value on a recurring basis.
|  | Fair Value Measurements on a Recurring Basis
|  | June 30, 2024 |  | December 31, 2023
(Dollars in thousands) |  | Level 1 |  | Level 2 |  | Level 3 |  | Total |  | Level 1 |  | Level 2 |  | Level 3 |  | Total
Assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trading investments |  | $ | — |  |  | $ | — |  |  | $ | 60,473 |  |  | $ | 60,473 |  |  | $ | — |  |  | $ | — |  |  | $ | 54,481 |  |  | $ | 54,481 |
Available-for-sale investments |  | — |  |  | 2,280,155 |  |  | 3,107 |  |  | 2,283,262 |  |  | — |  |  | 2,411,622 |  |  | — |  |  | 2,411,622 |
Derivative instruments |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total |  | $ | — |  |  | $ | 2,280,155 |  |  | $ | 63,580 |  |  | $ | 2,343,735 |  |  | $ | — |  |  | $ | 2,411,622 |  |  | $ | 54,481 |  |  | $ | 2,466,103 |
Liabilities: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Derivative instruments |  | $ | — |  |  | $ | (116) |  |  | $ | — |  |  | $ | (116) |  |  | $ | — |  |  | $ | (370) |  |  | $ | — |  |  | $ | (370) |
Total |  | $ | — |  |  | $ | (116) |  |  | $ | — |  |  | $ | (116) |  |  | $ | — |  |  | $ | (370) |  |  | $ | — |  |  | $ | (370) |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | The following table summarizes the change in balance sheet carrying value associated with level 3 financial instruments carried at fair value on a recurring basis.
|  | Six Months Ended June 30,
|  | 2024 |  | 2023
|  | Investments |  | Investments
(Dollars in thousands) |  | Available For Sale - Debt Securities |  | Trading - Residual Interests |  | Total |  | Available For Sale - Debt Securities |  | Trading - Residual Interests |  | Total
Balance, beginning of period |  | $ | — |  |  | $ | 54,481 |  |  | $ | 54,481 |  |  | $ | — |  |  | $ | 50,786 |  |  | $ | 50,786 |
Total gains/(losses): |  |  |  |  |  |  |  |  |  |  |  |
Included in earnings (or changes in net assets)(1) |  | 8 |  |  | 4,233 |  |  | 4,241 |  |  | — |  |  | 537 |  |  | 537 |
Included in other comprehensive income |  | 48 |  |  | — |  |  | 48 |  |  | — |  |  | — |  |  | — |
Settlements |  | 3,051 |  |  | 1,759 |  |  | 4,810 |  |  | — |  |  | 823 |  |  | 823 |
Transfers into level 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Transfers out of level 3 |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Balance, end of period |  | $ | 3,107 |  |  | $ | 60,473 |  |  | $ | 63,580 |  |  | $ | — |  |  | $ | 52,146 |  |  | $ | 52,146 |
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period |  | $ | 48 |  |  | $ | — |  |  | $ | 48 |  |  | $ | — |  |  | $ | — |  |  | $ | — |
Change in unrealized gains or losses for the period included in earnings (or changes in net assets) for assets held at the end of the reporting period(2) |  | $ | — |  |  | $ | 4,233 |  |  | $ | 4,233 |  |  | $ | — |  |  | $ | 537 |  |  | $ | 537 |
(1) Included in earnings (or changes in net assets) is comprised of the amounts recorded in the specified line item in the consolidated statements of income:
|  | Six Months Ended June 30,
(Dollars in thousands) |  | 2024 |  | 2023
Interest Income - Investments |  | $ | 8 |  |  | $ | — |
Gains (losses) on securities, net |  | 4,233 |  |  | 537 |
Total |  | $ | 4,241 |  |  | $ | 537 |
(2) Recorded in "gains (losses) on securities, net" in the consolidated statements of income.
Fair Value Measurement Inputs and Valuation Techniques | The following table presents the significant unobservable inputs used in the recurring valuations of the level 3 financial instruments detailed above.
(Dollars in thousands) |  | Fair Value at 6/30/2024 |  | Valuation Technique |  | Unobservable Input |  | Range (Average)
Debt Securities |  | $ | 3,107 |  |  | Discounted cash flow |  | Constant Prepayment Rate |  | 7.1%-11.1% (8.49%)
|  |  |  |  |  | Probability of default |  | 4.0%-17.4% (11.26%)
Residual Interests |  | 60,473 |  |  | Discounted cash flow |  | Constant Prepayment Rate |  | 7.1%-11.1% (8.49%)
|  |  |  |  |  | Probability of default |  | 4.0%-17.4% (11.26%)
Total |  | $ | 63,580 |  |  |  |  |  |  |
Fair Values of Financial Assets and Liabilities, Including Derivative Financial Instruments | The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments.
|  | June 30, 2024 |  | December 31, 2023
(Dollars in thousands) |  | Fair Value |  | Carrying Value |  | Difference |  | Fair Value |  | Carrying Value |  | Difference
Earning assets: |  |  |  |  |  |  |  |  |  |  |  |
Loans held for investment, net: |  |  |  |  |  |  |  |  |  |  |  |
Private Education Loans |  | $ | 20,976,381 |  |  | $ | 18,432,600 |  |  | $ | 2,543,781 |  |  | $ | 22,229,045 |  |  | $ | 19,772,293 |  |  | $ | 2,456,752 |
FFELP Loans |  | 480,752 |  |  | 482,733 |  |  | (1,981) |  |  | 542,775 |  |  | 534,064 |  |  | 8,711 |
Cash and cash equivalents |  | 5,262,448 |  |  | 5,262,448 |  |  | — |  |  | 4,149,838 |  |  | 4,149,838 |  |  | — |
Trading investments |  | 60,473 |  |  | 60,473 |  |  | — |  |  | 54,481 |  |  | 54,481 |  |  | — |
Available-for-sale investments |  | 2,283,262 |  |  | 2,283,262 |  |  | — |  |  | 2,411,622 |  |  | 2,411,622 |  |  | — |
Accrued interest receivable |  | 1,476,267 |  |  | 1,391,081 |  |  | 85,186 |  |  | 1,448,766 |  |  | 1,379,904 |  |  | 68,862 |
Derivative instruments |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Total earning assets |  | $ | 30,539,583 |  |  | $ | 27,912,597 |  |  | $ | 2,626,986 |  |  | $ | 30,836,527 |  |  | $ | 28,302,202 |  |  | $ | 2,534,325 |
Interest-bearing liabilities: |  |  |  |  |  |  |  |  |  |  |  |
Money-market and savings accounts |  | $ | 10,388,501 |  |  | $ | 10,461,743 |  |  | $ | 73,242 |  |  | $ | 11,134,883 |  |  | $ | 11,203,292 |  |  | $ | 68,409 |
Certificates of deposit |  | 10,259,979 |  |  | 10,279,367 |  |  | 19,388 |  |  | 10,380,684 |  |  | 10,448,365 |  |  | 67,681 |
Long-term borrowings |  | 5,151,728 |  |  | 5,403,012 |  |  | 251,284 |  |  | 4,873,690 |  |  | 5,227,512 |  |  | 353,822 |
Accrued interest payable |  | 99,493 |  |  | 99,493 |  |  | — |  |  | 105,066 |  |  | 105,066 |  |  | — |
Derivative instruments |  | 116 |  |  | 116 |  |  | — |  |  | 370 |  |  | 370 |  |  | — |
Total interest-bearing liabilities |  | $ | 25,899,817 |  |  | $ | 26,243,731 |  |  | $ | 343,914 |  |  | $ | 26,494,693 |  |  | $ | 26,984,605 |  |  | $ | 489,912 |
Excess of net asset fair value over carrying value |  |  |  |  |  | $ | 2,970,900 |  |  |  |  |  |  | $ | 3,024,237 |

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- Definition Tabular disclosure of input and valuation technique used to measure fair value and change in valuation approach and technique for each separate class of asset and liability measured on recurring and nonrecurring basis. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 103 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-103 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(2) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (bbb)(1) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://www.xbrl.org/2003/role/exampleRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 55 -Paragraph 101 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482078/820-10-55-101 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -Publisher FASB -URI https://asc.fasb.org/1943274/2147482907/825-10-50-11 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482106/820-10-50-2 + Details
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