LINCOLN, Neb., June 28, 2018 /PRNewswire/ -- Nelnet (NYSE:
NNI) today announced it has filed an application with the Federal
Deposit Insurance Corporation (FDIC) and the Utah Department of
Financial Institutions (UDFI) to establish Nelnet Bank, a
Utah-chartered industrial bank. If
the charter is granted, Nelnet Bank would operate as an internet
bank franchise with a home office in Salt
Lake City. Nelnet Bank would be a separate subsidiary of
Nelnet, and the industrial bank charter would allow the company to
maintain its other diversified business offerings.
Nelnet has a long history helping families plan and pay for
their education, including more than 30 years of making private
student loans. If the charter is granted, the company's bank
subsidiary would offer a financially secure, experienced, and
FDIC-insured lender to the private student loan marketplace. With
diversified sources of funding that include deposits and
securitizations, Nelnet Bank would act as a reliable source of
funding for creditworthy, education-seeking consumers throughout
all credit markets.
"There is a growing need for experienced, financially strong
lenders that can help students and families make informed education
financing decisions throughout their lives," said Nelnet President
Tim Tewes. "When in-school borrowers
exhaust their federal student loan options, they need alternative
sources of funding with affordable interest rates. Nelnet's decades
of experience as a lender and focus on superior customer service
make us an ideal candidate to satisfy this need and bring new
solutions to borrowers funding their education."
Nelnet has hired Andrea Moss to
lead the application process, and then Nelnet Bank if the charter
is granted. Moss previously served as president of Comenity Capital
Bank and has more than 26 years of experience in the financial
services industry, with expertise in executive leadership,
strategy, risk mitigation, and operations.
"Nelnet is proud to bring Andrea on board to contribute her
expertise as we navigate the application process. If the charter is
approved, we are confident her skills and experience as an industry
leader will help drive the success of Nelnet Bank," Tewes said.
Nelnet expects the charter application process to take an
extended period of time, and looks forward to working with the FDIC
and the UDFI.
Forward-Looking and Cautionary Statements
This press release contains forward-looking statements. The
words "expect," "will," "would," and similar expressions, as well
as statements in future tense, are intended to identify
forward-looking statements. These statements are subject to known
and unknown risks and uncertainties that may cause actual results
to differ materially from those expressed or implied by the
forward-looking statements. Such risks include, but are not limited
to: the risk that the announced industrial bank charter application
may not result in the grant of a charter within the expected
timeframe or at all; the uncertain nature of the expected benefits
from obtaining an industrial bank charter; and risks of changes in
the securitization markets for private student loans. All
forward-looking statements in this release are as of the date of
this release. Although the company may voluntarily update or revise
its forward-looking statements from time to time to reflect actual
results or changes in the company's expectations, the company
disclaims any commitment to do so except as required by securities
laws.
About Nelnet
Nelnet (NYSE: NNI) is a diversified and innovative company
focused on offering educational services, technology solutions,
telecommunications, and asset management. Nelnet helps students and
families plan and pay for their education and makes the
administrative processes for schools more efficient with student
loan servicing, tuition payment processing, and school
administration software. Through its subsidiary, ALLO
Communications, Nelnet offers fiber optic services directly to
homes and businesses for ultra-fast internet and superior telephone
and television services. The company also makes investments in real
estate developments and new ventures. For more information, visit
Nelnet.com.
(code #: nnig)
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