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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2025

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, 2025																								December 31, 2024
(Dollars in thousands)						Level 1						Level 2						Level 3						Total						Level 1						Level 2						Level 3						Total
Assets:
Trading investments						$	—					$	2,446					$	47,154					$	49,600					$	—					$	—					$	53,262					$	53,262
Available-for-sale investments						—						1,648,409						2,247						1,650,656						—						1,930,537						2,689						1,933,226
Held for sale loans						—						—						—						—						—						—						—						—
Derivative instruments						—						2						—						2						—						—						—						—
Total						$	—					$	1,650,857					$	49,401					$	1,700,258					$	—					$	1,930,537					$	55,951					$	1,986,488
Liabilities:
Derivative instruments						$	—					$	(55)					$	—					$	(55)					$	—					$	(40)					$	—					$	(40)
Total						$	—					$	(55)					$	—					$	(55)					$	—					$	(40)					$	—					$	(40)

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,
						2025																		2024
						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						$	2,689					$	53,262					$	55,951					$	—					$	54,481					$	54,481
Total gains/(losses):
Included in earnings (or changes in net assets)(1)						11						(3,134)						(3,123)						8						4,233						4,241
Included in other comprehensive income						(14)						—						(14)						48						—						48
Settlements						(439)						(2,974)						(3,413)						3,051						1,759						4,810
Transfers into level 3						—						—						—						—						—						—
Transfers out of level 3						—						—						—						—						—						—
Balance, end of period						$	2,247					$	47,154					$	49,401					$	3,107					$	60,473					$	63,580
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period						$	(14)					$	—					$	(14)					$	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)						$	—					$	(3,134)					$	(3,134)					$	—					$	4,233					$	4,233

(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)						2025						2024
Interest Income - Investments						$	11					$	8
Gains (losses) on securities, net						(3,134)						4,233
Total						$	(3,123)					$	4,241

(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.

As of June 30, 2025 (dollars in thousands)

Fair Value

Valuation Technique

Unobservable Input

Range (Average)

Debt Securities

$

2,247

Discounted cash flow

Constant Prepayment Rate

6.9%-11.0% (8.3%)

Probability of default

4.4%-15.9% (11.4%)

Residual Interests

47,154

Discounted cash flow

Constant Prepayment Rate

6.9%-11.0% (8.3%)

Probability of default

4.4%-15.9% (11.4%)

Total

$

49,401

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, 2025																		December 31, 2024
(Dollars in thousands)						Fair Value						Carrying Value						Difference						Fair Value						Carrying Value						Difference
Earning assets:
Loans held for investment, net:
Private Education Loans						$	24,558,130					$	21,160,332					$	3,397,798					$	24,110,381					$	20,902,158					$	3,208,223
Cash and cash equivalents						4,092,465						4,092,465						—						4,700,366						4,700,366						—
Trading investments						49,600						49,600						—						53,262						53,262						—
Available-for-sale investments						1,650,656						1,650,656						—						1,933,226						1,933,226						—
Accrued interest receivable						1,834,874						1,695,698						139,176						1,663,474						1,546,590						116,884
Derivative instruments						2						2						—						—						—						—
Total earning assets						$	32,185,727					$	28,648,753					$	3,536,974					$	32,460,709					$	29,135,602					$	3,325,107
Interest-bearing liabilities:
Money-market and savings accounts						$	10,671,377					$	10,685,051					$	13,674					$	10,503,731					$	10,526,324					$	22,593
Certificates of deposit						9,826,166						9,793,404						(32,762)						10,593,666						10,540,428						(53,238)
Long-term borrowings						6,294,874						6,410,978						116,104						6,323,384						6,440,345						116,961
Accrued interest payable						109,207						109,207						—						108,488						108,488						—
Derivative instruments						55						55						—						40						40						—
Total interest-bearing liabilities						$	26,901,679					$	26,998,695					$	97,016					$	27,529,309					$	27,615,625					$	86,316
Excess of net asset fair value over carrying value																		$	3,633,990																	$	3,411,423

X

- 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.

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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.

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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).

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