Nelnet on Monday announced the opening of its new banking operation.
Nelnet Bank, an internet bank with its headquarters in Salt Lake City, is the first industrial-chartered bank to open in the U.S. in more than a decade.
It currently offers refinancing of student loans and plans to offer additional private student loan options next year.
"Launching Nelnet Bank is an exciting milestone for Nelnet with our deep educational experience serving families and schools," Tim Tewes, president of Nelnet, said in a news release. "Being the first industrial-chartered bank established since 2008 speaks to this experience as well as Nelnet's financial strength and the strength of the bank's leadership team."
Incorporating as an industrial bank allowed Nelnet to own the bank without having to incorporate a separate holding company. That structure has numerous critics, including the Independent Community Bankers of America, which asked the FDIC in July 2018 to reject Nelnet's application and impose a moratorium on other applications.
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That didn't happen, but Nelnet did rescind the application for more than a year before resubmitting it in November 2019. It received approval for the bank in March from the Federal Deposit Insurance Corp. and the Utah Department of Financial Institutions.
The bank, which Nelnet funded with $100 million of its own money, will operate as a subsidiary of the Lincoln-based company.
PhotoFiles: Reshaping the Haymarket
PhotoFiles: Reshaping the Haymarket
Early Haymarket
The Haymarket area in the early 1900s was the hub of horse-drawn commerce.
Journal Star file photo
Government Square
An early photo of Government Square looking northwest features the early businesses in the future Haymarket area in 1874.Â
Journal Star file photo
Renovating the depot
Construction workers begin tearing up Seventh Street in preparation for the renovation of the Old Burlington Northern Depot. The renovated station would sport new curbs, sidewalks and a newly bricked street.
Journal Star file photo
Bennett Hotel
This early photo of the Bennett Hotel shows the original cottonwood timber structure that stood until 1915. The house-like structure was replaced with a brick building later that year.
Journal Star file photo
Hay Market Area
The Haymarket area was once the center of actual sales of hay before brick buildings began to pop up in downtown Lincoln.
Journal Star file photo
Hardy building
In 1986, a worn-out Hardy building received a facelift and was transformed into 65 apartments.
Journal Star file photo
Holiday Lighting
Thousands of lights were set aglow on historic buildings, retail shops and restaurants in the Lincoln's Haymarket district in 1986.
Journal Star file photo
Disco Lounge
The old Miller and Paine warehouse became the Personalities Ban-disco Lounge in 1977. The remodel cost $125,000 but brought disco and live bands to the Haymarket.
Journal Star file photo
Haymarket Hay Days
The Haymarket District swarms with people taking in the atmosphere of Hay Days in 1986.Â
Journal Star file photo
P Street Restaurants
The north side of P Street in 1995.
Journal Star file photo
Sullivan's Transfer & Storage
The Sullivan Transfer and Storage Company offered helping hands to people moving across the state. Their headquarters was located along Eighth Street in the Haymarket district.
Journal Star file photo
Light up the night
The wrought-iron, double-globe lamps installed along P Street in 1991 transport nighttime Haymarket visitors back to the early 1900s.
Journal Star file photo
Harpham Brothers Co.
The Harpham Brothers Co., founded in 1888, was known for its western saddles, harnesses, horse collars and riding equipment. Originally on O Street, it moved to the 800 block of P Street in the early 1900s.
Journal Star file photo
Raymond Brothers Building
The Raymond Brothers were Lincoln's first wholesale grocers in 1872. After moving to this location in 1885, the Raymond Brothers officially closed their doors in 1951.Â
Journal Star file photo
Historic Haymarket
The Haymarket area has been the focal point for entertainment in Lincoln since the late 1800s.Â
Journal Star file photo
Haymarket Junction
Patrons celebrate the renovation of the Haymarket Junction in 1985. The building was first constructed as the Bennett Hotel in 1915, a lodging place for the railroad, but now houses retail shops in downtown Lincoln.
Journal Star file photo
Bill's Saloon
Currently McFarland and Sons Irish Pub, this building was once the home of Bill's Saloon at 710 P St. in downtown Lincoln.
Journal Star file photo
The Color Court
The Color Court and Peanut Butter Factory in the Haymarket area was the site for a festival of music, food and entertainment in 1989.
Journal Star file photo
Seventh Street Island
Robert Mellage, an employee with Walton Construction, found little relief from the afternoon heat after moving into the shade of the Burlington Northern Depot on June 29, 1989.
Journal Star file photo
Iron Horse Park
Jay Tschetter works on his Iron Horse Legacy sculpture at the Iron Horse Park in the Haymarket area in Lincoln. The brick relief artwork reflects the importance of railroads in the state.
Journal Star file photo
Veith Building
The Veith Building was built during the boom of the late 1880s. Today, one of the oldest buildings in Lincoln is home to the Tavern on the Square.
Journal Star file photo
Hargreaves Brothers
The Hargreaves Brothers Company, located at 747 O St., was a wholesale grocery until 1917. After purchasing the location in 1917, the Schwartz Paper Co. remained at this location for almost a century.
Journal Star file photo
Grainger Brothers Company
Grainger Brothers Co. was one of the largest wholesale grocers in the Haymarket area during the early 1900s. After decades of work at their Eighth and O to P location, the business ceased operations in the mid-1960s.
Journal Star file photo
Lincoln Drug Company Building
Founded in 1897, the Lincoln Drug Co. sold drugs, chemicals and pharmaceutical supplies from this location until the 1950s.
Journal Star file photo
Reach the writer at 402-473-2647 or molberding@journalstar.com .
On Twitter @LincolnBizBuzz.
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