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Fair Value Measurements (Tables)

9 Months Ended

Sep. 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
						September 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						$	—					$	—					$	51,963					$	51,963					$	—					$	—					$	53,262					$	53,262
Available-for-sale investments						—						1,773,720						2,064						1,775,784						—						1,930,537						2,689						1,933,226
Derivative instruments						—						3						—						3						—						—						—						—
Total						$	—					$	1,773,723					$	54,027					$	1,827,750					$	—					$	1,930,537					$	55,951					$	1,986,488
Liabilities:
Derivative instruments						$	—					$	(33)					$	—					$	(33)					$	—					$	(40)					$	—					$	(40)
Total						$	—					$	(33)					$	—					$	(33)					$	—					$	(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.

						Nine Months Ended September 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)						16						1,748						1,764						14						398						412
Included in other comprehensive income						(3)						—						(3)						83						—						83
Settlements						(638)						(3,047)						(3,685)						2,813						(39)						2,774
Transfers into level 3						—						—						—						—						—						—
Transfers out of level 3						—						—						—						—						—						—
Balance, end of period						$	2,064					$	51,963					$	54,027					$	2,910					$	54,840					$	57,750
Change in unrealized gains or losses for the period included in other comprehensive income for assets held at the end of the reporting period						$	(3)					$	—					$	(3)					$	83					$	—					$	83
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)						$	—					$	1,748					$	1,748					$	—					$	398					$	398

(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:

						Nine Months Ended September 30,
(Dollars in thousands)						2025						2024
Interest Income - Investments						$	16					$	14
Gains (losses) on securities, net						1,748						398
Total						$	1,764					$	412

(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 September 30, 2025 (dollars in thousands)

Fair Value

Valuation Technique

Unobservable Input

Range (Average)

Debt Securities

$

2,064

Discounted cash flow

Constant Prepayment Rate

6.9%-11.0% (8.3%)

Probability of default

4.4%-15.9% (11.4%)

Residual Interests

51,963

Discounted cash flow

Constant Prepayment Rate

6.9%-11.0% (8.3%)

Probability of default

4.4%-15.9% (11.4%)

Total

$

54,027

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.

						September 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						$	24,759,169					$	21,615,067					$	3,144,102					$	24,110,381					$	20,902,158					$	3,208,223
Cash and cash equivalents						3,539,341						3,539,341						—						4,700,366						4,700,366						—
Trading investments						51,963						51,963						—						53,262						53,262						—
Available-for-sale investments						1,775,784						1,775,784						—						1,933,226						1,933,226						—
Accrued interest receivable						1,805,634						1,690,102						115,532						1,663,474						1,546,590						116,884
Derivative instruments						3						3						—						—						—						—
Total earning assets						$	31,931,894					$	28,672,260					$	3,259,634					$	32,460,709					$	29,135,602					$	3,325,107
Interest-bearing liabilities:
Money-market and savings accounts						$	10,725,860					$	10,718,204					$	(7,656)					$	10,503,731					$	10,526,324					$	22,593
Certificates of deposit						9,342,026						9,293,904						(48,122)						10,593,666						10,540,428						(53,238)
Long-term borrowings						6,828,914						6,838,995						10,081						6,323,384						6,440,345						116,961
Accrued interest payable						77,128						77,128						—						108,488						108,488						—
Derivative instruments						33						33						—						40						40						—
Total interest-bearing liabilities						$	26,973,961					$	26,928,264					$	(45,697)					$	27,529,309					$	27,615,625					$	86,316
Excess of net asset fair value over carrying value																		$	3,213,937																	$	3,411,423

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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.

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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 the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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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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