Fair Value Measurements (Tables)

12 Months Ended

Dec. 31, 2021

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
	2021								2020
As of December 31, (dollars in thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Assets:
Trading investments	$	—	$	—	$	37,465	$	37,465	$	—	$	—	$	16,923	$	16,923
Available-for-sale investments	—		2,517,956		—		2,517,956		—		1,996,634		—		1,996,634
Derivative instruments	—		1,322		—		1,322		—		729		—		729
Total	$	—	$	2,519,278	$	37,465	$	2,556,743	$	—	$	1,997,363	$	16,923	$	2,014,286
Liabilities:
Derivative instruments	$	—	$	(252)	$	—	$	(252)	$	—	$	(287)	$	—	$	(287)
Total	$	—	$	(252)	$	—	$	(252)	$	—	$	(287)	$	—	$	(287)

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.

As of December 31, (dollars in thousands)	2021						2020
	Fair Value		Carrying Value		Difference		Fair Value		Carrying Value		Difference
Earning assets:
Loans held for investment, net:
Private Education Loans	$	22,919,836	$	19,625,374	$	3,294,462	$	22,124,171	$	18,436,968	$	3,687,203
FFELP Loans	705,644		692,954		12,690		748,657		735,208		13,449
Credit Cards	25,037		22,955		2,082		12,249		10,967		1,282
Loans held for sale	—		—		—		3,226,029		2,885,640		340,389
Cash and cash equivalents	4,334,603		4,334,603		—		4,455,292		4,455,292		—
Trading investments	37,465		37,465		—		16,923		16,923		—
Available-for-sale investments	2,517,956		2,517,956		—		1,996,634		1,996,634		—
Accrued interest receivable	1,306,410		1,205,667		100,743		1,527,816		1,387,305		140,511
Tax indemnification receivable	8,047		8,047		—		18,492		18,492		—
Derivative instruments	1,322		1,322		—		729		729		—
Total earning assets	$	31,856,320	$	28,446,343	$	3,409,977	$	34,126,992	$	29,944,158	$	4,182,834
Interest-bearing liabilities:
Money-market and savings accounts	$	11,457,490	$	11,432,691	$	(24,799)	$	11,136,560	$	11,067,633	$	(68,927)
Certificates of deposit	9,451,528		9,394,001		(57,527)		11,799,223		11,597,266		(201,957)
Short-term borrowings	—		—		—		—		—		—
Long-term borrowings	6,000,174		5,930,990		(69,184)		5,398,309		5,189,217		(209,092)
Accrued interest payable	46,600		46,600		—		60,272		60,272		—
Derivative instruments	252		252		—		287		287		—
Total interest-bearing liabilities	$	26,956,044	$	26,804,534	$	(151,510)	$	28,394,651	$	27,914,675	$	(479,976)
Excess of net asset fair value over carrying value					$	3,258,467					$	3,702,858