FOR IMMEDIATE RELEASE
The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) approved the deposit insurance application submitted by Nelnet, Inc., Lincoln, Nebraska, to create a de novo industrial bank.
Nelnet Bank will originate and service private student loans and other consumer loans. As an internet-only bank, Nelnet Bank will operate from a main office located in Salt Lake City, Utah area.
Nelnet, Inc.,was formed as a Nebraska corporation in 1978 to service federal student loans, and has since diversified its business activities to include, among other activities, education technology and payment processing.
Applications for deposit insurance are evaluated under a framework of seven factors that include: the financial history and condition of the institution; the adequacy of the institution's capital structure; the future earnings prospects of the institution; the general character and fitness of the management of the institution; the risk presented by the institution to the Deposit Insurance Fund; the convenience and needs of the community to be served by the institution; and whether the institution's corporate powers are consistent with the purposes of the Federal Deposit Insurance Act.
Nelnet Bank is awaiting approval from the Utah Department of Financial Institutions. The approval for deposit insurance requires the bank to be established within 12 months.