Fair Value Measurements

9 Months Ended

Sep. 30, 2019

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

We use estimates of fair value in applying various accounting standards for our consolidated financial statements.

We categorize our fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. For additional information regarding our policies for determining fair value and the hierarchical framework, see Note 2, “Significant Accounting Policies - Fair Value Measurement” in our 2018 Form 10-K.

During the nine months ended September 30, 2019, there were no significant transfers of financial instruments between levels or changes in our methodology or assumptions used to value our financial instruments.

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, 2019										December 31, 2018
	Level 1		Level 2			Level 3		Total			Level 1		Level 2			Level 3		Total
Assets
Available-for-sale investments	$	—	$	455,968		$	—	$	455,968		$	—	$	176,245		$	—	$	176,245
Derivative instruments	—		275			—		275			—		2,090			—		2,090
Total	$	—	$	456,243		$	—	$	456,243		$	—	$	178,335		$	—	$	178,335
Liabilities
Derivative instruments	$	—	$	(1,238	)	$	—	$	(1,238	)	$	—	$	(2,032	)	$	—	$	(2,032	)
Total	$	—	$	(1,238	)	$	—	$	(1,238	)	$	—	$	(2,032	)	$	—	$	(2,032	)

The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments.

	September 30, 2019							December 31, 2018
	Fair Value		Carrying Value		Difference			Fair Value		Carrying Value		Difference
Earning assets:
Loans held for investment, net:
Private Education Loans	$	25,402,823	$	22,855,728	$	2,547,095		$	22,313,419	$	20,294,843	$	2,018,576
FFELP Loans	810,141		798,682		11,459			859,185		847,889		11,296
Personal Loans	1,126,514		1,062,254		64,260			1,156,531		1,128,187		28,344
Cash and cash equivalents	3,851,608		3,851,608		—			2,559,106		2,559,106		—
Available-for-sale investments	455,968		455,968		—			176,245		176,245		—
Accrued interest receivable	1,638,821		1,510,458		128,363			1,285,842		1,191,981		93,861
Tax indemnification receivable	38,226		38,226		—			39,207		39,207		—
Derivative instruments	275		275		—			2,090		2,090		—
Total earning assets	$	33,324,376	$	30,573,199	$	2,751,177		$	28,391,625	$	26,239,548	$	2,152,077
Interest-bearing liabilities:
Money-market and savings accounts	$	10,356,228	$	10,328,422	$	(27,806	)	$	9,370,957	$	9,390,108	$	19,151
Certificates of deposit	12,397,103		12,299,717		(97,386		)	9,513,194		9,551,974		38,780
Short-term borrowings	297,800		297,800		—			—		—		—
Long-term borrowings	4,725,251		4,601,888		(123,363		)	4,278,931		4,284,304		5,373
Accrued interest payable	83,172		83,172		—			61,341		61,341		—
Derivative instruments	1,238		1,238		—			2,032		2,032		—
Total interest-bearing liabilities	$	27,860,792	$	27,612,237	$	(248,555	)	$	23,226,455	$	23,289,759	$	63,304
Excess of net asset fair value over carrying value					$	2,502,622						$	2,215,381

Please refer to Note 14, “Fair Value Measurements” in our 2018 Form 10-K for a full discussion of the methods and assumptions used to estimate the fair value of each class of financial instruments.