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Nelnet Reports Third Quarter 2021 Results LINCOLN , Neb . , November 8 , 2021 - Nelnet ( NYSE : NNI ) today reported GAAP net income of $ 53.1 million , or $ 1.38 per share , for the third quarter of 2021 , compared with GAAP net income of $ 71.5 million , or $ 1.86 per share , for the same period a year ago . Net income , excluding derivative market value adjustments ' , was $ 47.6 million , or $ 1.23 per share , for the third quarter of 2021 , compared with $ 68.9 million , or $ 1.79 per share , for the same period in 2020 . Included in the operating results for the third quarter of 2021 was impairment of certain real estate assets of $ 14.2 million ( $ 10.8 million after tax , or $ 0.28 per share ) as employees continue working remotely . " Nelnet's core businesses delivered solid operating results in the third quarter , " said Jeff Noordhoek , Chief Executive Officer of Nelnet . " We look forward to a strong finish to the year as we continue to focus on providing superior customer experiences , pursue investment opportunities for diversification and growth , and recruit and retain talented team members . " Nelnet currently operates four primary business segments , earning interest income on loans in its Asset Generation and Management ( AGM ) segment and fee - based revenue in its Loan Servicing and Systems segment and Education Technology , Services , and Payment Processing segment . On November 2 , 2020 , Nelnet Bank launched operations and its financial results are presented by the company as a reportable segment . Asset Generation and Management The AGM operating segment reported net interest income of $ 83.1 million during the third quarter of 2021 , compared with $ 80.2 million for the same period a year ago . The company maintains an overall risk management strategy that incorporates the use of derivative instruments to reduce the economic effect of interest rate volatility . The company recognized expense from derivative settlements of $ 5.9 million and $ 2.4 million during the third quarter of 2021 and 2020 , respectively . Derivative settlements for each applicable period should be evaluated with the company's net interest income . Net interest income less derivative settlements was $ 77.2 million in the third quarter of 2021 , compared with $ 77.8 million in the third quarter of 2020 . AGM recognized a provision for loan losses in the third quarter of 2021 of $ 5.9 million ( $ 4.5 million after tax ) , compared to a negative provision for loan losses of $ 5.8 million ( $ 4.4 million after tax ) in the third quarter of 2020 . Net income for the AGM segment was $ 45.7 million for the three months ended September 30 , 2021 , compared with $ 68.3 million for the same period in 2020. AGM recognized a $ 14.8 million ( $ 11.3 million after tax ) gain from the sale of consumer loans in the third quarter of 2020 . Loan Servicing and Systems Revenue from the Loan Servicing and Systems segment was $ 112.4 million for the third quarter of 2021 , compared with $ 113.8 million for the same period in 2020. As of September 30 , 2021 , the company was servicing $ 513.5 billion in government owned , Federal Family Education Loan ( FFEL ) Program , private education , and consumer loans for 15.8 million borrowers . In September 2021 , Nelnet Servicing and Great Lakes each entered into contract amendments with the U.S. Department of Education ( Department ) , pursuant to which the student loan servicing contracts with the Department were extended from December 14 , 2021 through December 14 , 2023 . The Loan Servicing and Systems segment reported a $ 2.3 million net loss for the three months ended September 30 , 2021 . Included in the third quarter results was a $ 13.2 million ( $ 10.1 million after tax ) non - cash impairment charge on certain segment owned buildings due to decreased office space use as employees continue to work remotely . Excluding this impairment expense , net income would have been $ 7.8 million for the three months ended September 30 , 2021 , compared with net income of $ 10.1 million for the same period in 2020. The expected remaining decrease in net income was due to the continued hiring of contact center operations and support associates in preparation for the expiration of the federal student loan payment suspension provisions under the Coronavirus Aid , Relief , and Economic Security Act on January 31 , 2022 , at which time the Department borrowers will move from a non - paying forbearance to repayment status . 1 Net income , excluding derivative market value adjustments , is a non - GAAP measure . See " Non - GAAP Performance Measures " at the end of this press release and the " Non GAAP Disclosures " section below for explanatory information and reconciliations of GAAP to non - GAAP financial information .