|
þ
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
¨
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TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
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52-2013874
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(State or other jurisdiction of
incorporation or organization)
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(I.R.S. Employer
Identification No.)
|
|
|
300 Continental Drive, Newark, Delaware
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19713
|
(Address of principal executive offices)
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(Zip Code)
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Large accelerated filer
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þ
|
|
Accelerated filer
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¨
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Non-accelerated filer
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¨
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(Do not check if a smaller reporting company)
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Smaller reporting company
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¨
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Emerging growth company
|
¨
|
|
|
|
Class
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Outstanding at June 30, 2017
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Common Stock, $0.20 par value
|
431,548,369 shares
|
|
Part I. Financial Information
|
|
|
|
Item 1.
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Financial Statements
|
|
3
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Item 1.
|
Notes to the Financial Statements
|
|
10
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Item 2.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
43
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Item 3.
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Quantitative and Qualitative Disclosures about Market Risk
|
|
71
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Item 4.
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Controls and Procedures
|
|
75
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PART II. Other Information
|
|
|
|
Item 1.
|
Legal Proceedings
|
|
76
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Item 1A.
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Risk Factors
|
|
77
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Item 2.
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Unregistered Sales of Equity Securities and Use of Proceeds
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|
77
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Item 3.
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Defaults Upon Senior Securities
|
|
78
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Item 4.
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Mine Safety Disclosures
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78
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Item 5.
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Other Information
|
|
78
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Item 6.
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Exhibits
|
|
78
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
2017
|
|
2016
|
||||
Assets
|
|
|
|
|
||||
Cash and cash equivalents
|
|
$
|
1,318,168
|
|
|
$
|
1,918,793
|
|
Available-for-sale investments at fair value (cost of $233,682 and $211,406, respectively)
|
|
229,479
|
|
|
208,603
|
|
||
Loans held for investment (net of allowance for losses of $207,448 and $184,701, respectively)
|
|
16,560,426
|
|
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15,137,922
|
|
||
Restricted cash and investments
|
|
62,466
|
|
|
53,717
|
|
||
Other interest-earning assets
|
|
48,526
|
|
|
49,114
|
|
||
Accrued interest receivable
|
|
926,270
|
|
|
766,106
|
|
||
Premises and equipment, net
|
|
88,978
|
|
|
87,063
|
|
||
Tax indemnification receivable
|
|
233,142
|
|
|
259,532
|
|
||
Other assets
|
|
45,841
|
|
|
52,153
|
|
||
Total assets
|
|
$
|
19,513,296
|
|
|
$
|
18,533,003
|
|
|
|
|
|
|
||||
Liabilities
|
|
|
|
|
||||
Deposits
|
|
$
|
13,794,815
|
|
|
$
|
13,435,667
|
|
Long-term borrowings
|
|
2,872,231
|
|
|
2,167,979
|
|
||
Income taxes payable, net
|
|
140,138
|
|
|
184,324
|
|
||
Upromise member accounts
|
|
247,324
|
|
|
256,041
|
|
||
Other liabilities
|
|
121,078
|
|
|
141,934
|
|
||
Total liabilities
|
|
17,175,586
|
|
|
16,185,945
|
|
||
|
|
|
|
|
||||
Commitments and contingencies
|
|
|
|
|
||||
|
|
|
|
|
||||
Equity
|
|
|
|
|
||||
Preferred stock, par value $0.20 per share, 20 million shares authorized:
|
|
|
|
|
||||
Series A: 0 and 3.3 million shares issued, respectively, at stated value of $50 per share
|
|
—
|
|
|
165,000
|
|
||
Series B: 4 million and 4 million shares issued, respectively, at stated value of $100 per share
|
|
400,000
|
|
|
400,000
|
|
||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 441.8
million and 436.6 million shares issued, respectively
|
|
88,373
|
|
|
87,327
|
|
||
Additional paid-in capital
|
|
1,205,037
|
|
|
1,175,564
|
|
||
Accumulated other comprehensive loss (net of tax benefit of $4,833 and $5,364, respectively)
|
|
(7,852
|
)
|
|
(8,671
|
)
|
||
Retained earnings
|
|
750,973
|
|
|
595,322
|
|
||
Total SLM Corporation stockholders’ equity before treasury stock
|
|
2,436,531
|
|
|
2,414,542
|
|
||
Less: Common stock held in treasury at cost: 10.3 million and 7.7 million shares, respectively
|
|
(98,821
|
)
|
|
(67,484
|
)
|
||
Total equity
|
|
2,337,710
|
|
|
2,347,058
|
|
||
Total liabilities and equity
|
|
$
|
19,513,296
|
|
|
$
|
18,533,003
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Interest income:
|
|
|
|
|
|
|
|
|
||||||||
Loans
|
|
$
|
336,739
|
|
|
$
|
251,675
|
|
|
$
|
661,496
|
|
|
$
|
496,905
|
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Investments
|
|
2,201
|
|
|
2,371
|
|
|
4,344
|
|
|
4,962
|
|
||||
Cash and cash equivalents
|
|
3,155
|
|
|
1,195
|
|
|
5,743
|
|
|
2,829
|
|
||||
Total interest income
|
|
342,095
|
|
|
255,241
|
|
|
671,583
|
|
|
504,696
|
|
||||
Interest expense:
|
|
|
|
|
|
|
|
|
||||||||
Deposits
|
|
50,730
|
|
|
35,409
|
|
|
95,583
|
|
|
69,423
|
|
||||
Interest expense on short-term borrowings
|
|
1,194
|
|
|
2,060
|
|
|
2,430
|
|
|
4,223
|
|
||||
Interest expense on long-term borrowings
|
|
20,278
|
|
|
5,006
|
|
|
35,601
|
|
|
8,421
|
|
||||
Total interest expense
|
|
72,202
|
|
|
42,475
|
|
|
133,614
|
|
|
82,067
|
|
||||
Net interest income
|
|
269,893
|
|
|
212,766
|
|
|
537,969
|
|
|
422,629
|
|
||||
Less: provisions for credit losses
|
|
50,215
|
|
|
41,793
|
|
|
75,511
|
|
|
74,395
|
|
||||
Net interest income after provisions for credit losses
|
|
219,678
|
|
|
170,973
|
|
|
462,458
|
|
|
348,234
|
|
||||
Non-interest income:
|
|
|
|
|
|
|
|
|
||||||||
(Losses) gains on derivatives and hedging activities, net
|
|
(3,609
|
)
|
|
2,142
|
|
|
(8,987
|
)
|
|
1,788
|
|
||||
Other income
|
|
10,629
|
|
|
13,683
|
|
|
21,975
|
|
|
34,711
|
|
||||
Total non-interest income
|
|
7,020
|
|
|
15,825
|
|
|
12,988
|
|
|
36,499
|
|
||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
||||||||
Compensation and benefits
|
|
51,007
|
|
|
44,570
|
|
|
106,471
|
|
|
94,779
|
|
||||
FDIC assessment fees
|
|
6,622
|
|
|
4,277
|
|
|
13,851
|
|
|
8,453
|
|
||||
Other operating expenses
|
|
53,622
|
|
|
45,930
|
|
|
93,606
|
|
|
84,430
|
|
||||
Total operating expenses
|
|
111,251
|
|
|
94,777
|
|
|
213,928
|
|
|
187,662
|
|
||||
Acquired intangible asset amortization expense
|
|
117
|
|
|
261
|
|
|
234
|
|
|
521
|
|
||||
Total non-interest expenses
|
|
111,368
|
|
|
95,038
|
|
|
214,162
|
|
|
188,183
|
|
||||
Income before income tax expense
|
|
115,330
|
|
|
91,760
|
|
|
261,284
|
|
|
196,550
|
|
||||
Income tax expense
|
|
44,713
|
|
|
34,555
|
|
|
95,724
|
|
|
73,430
|
|
||||
Net income
|
|
70,617
|
|
|
57,205
|
|
|
165,560
|
|
|
123,120
|
|
||||
Preferred stock dividends
|
|
3,974
|
|
|
5,243
|
|
|
9,549
|
|
|
10,382
|
|
||||
Net income attributable to SLM Corporation common stock
|
|
$
|
66,643
|
|
|
$
|
51,962
|
|
|
$
|
156,011
|
|
|
$
|
112,738
|
|
Basic earnings per common share attributable to SLM Corporation
|
|
$
|
0.15
|
|
|
$
|
0.12
|
|
|
$
|
0.36
|
|
|
$
|
0.26
|
|
Average common shares outstanding
|
|
431,245
|
|
|
427,942
|
|
|
430,572
|
|
|
427,526
|
|
||||
Diluted earnings per common share attributable to SLM Corporation
|
|
$
|
0.15
|
|
|
$
|
0.12
|
|
|
$
|
0.35
|
|
|
$
|
0.26
|
|
Average common and common equivalent shares outstanding
|
|
438,115
|
|
|
431,796
|
|
|
438,424
|
|
|
431,349
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Net income
|
|
$
|
70,617
|
|
|
$
|
57,205
|
|
|
$
|
165,560
|
|
|
$
|
123,120
|
|
Other comprehensive income (loss):
|
|
|
|
|
|
|
|
|
||||||||
Unrealized gains (losses) on investments
|
|
167
|
|
|
1,293
|
|
|
(1,400
|
)
|
|
4,317
|
|
||||
Unrealized gains (losses) on cash flow hedges
|
|
(2,029
|
)
|
|
(8,732
|
)
|
|
2,750
|
|
|
(33,106
|
)
|
||||
Total unrealized gains (losses)
|
|
(1,862
|
)
|
|
(7,439
|
)
|
|
1,350
|
|
|
(28,789
|
)
|
||||
Income tax (expense) benefit
|
|
701
|
|
|
2,855
|
|
|
(531
|
)
|
|
10,995
|
|
||||
Other comprehensive income (loss), net of tax (expense) benefit
|
|
(1,161
|
)
|
|
(4,584
|
)
|
|
819
|
|
|
(17,794
|
)
|
||||
Total comprehensive income
|
|
$
|
69,456
|
|
|
$
|
52,621
|
|
|
$
|
166,379
|
|
|
$
|
105,326
|
|
|
|
|
|
Common Stock Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
Preferred Stock Shares
|
|
Issued
|
|
Treasury
|
|
Outstanding
|
|
Preferred Stock
|
|
Common Stock
|
|
Additional Paid-In Capital
|
|
Accumulated
Other
Comprehensive
Loss
|
|
Retained Earnings
|
|
Treasury Stock
|
|
Total Equity
|
||||||||||||||||||
Balance at December 31, 2015
|
|
7,300,000
|
|
|
430,677,434
|
|
|
(4,374,190
|
)
|
|
426,303,244
|
|
|
$
|
565,000
|
|
|
$
|
86,136
|
|
|
$
|
1,135,860
|
|
|
$
|
(16,059
|
)
|
|
$
|
366,609
|
|
|
$
|
(41,223
|
)
|
|
$
|
2,096,323
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
123,120
|
|
|
—
|
|
|
123,120
|
|
|||||||
Other comprehensive loss, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(17,794
|
)
|
|
—
|
|
|
—
|
|
|
(17,794
|
)
|
|||||||
Total comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
105,326
|
|
|||||||
Cash dividends:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Preferred Stock, series A ($.87 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,750
|
)
|
|
—
|
|
|
(5,750
|
)
|
|||||||
Preferred Stock, series B ($.60 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(4,632
|
)
|
|
—
|
|
|
(4,632
|
)
|
|||||||
Dividend equivalent units related to employee stock-based compensation plans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
400
|
|
|
—
|
|
|
(400
|
)
|
|
|
|
—
|
|
||||||||
Issuance of common shares
|
|
—
|
|
|
3,166,474
|
|
|
—
|
|
|
3,166,474
|
|
|
—
|
|
|
633
|
|
|
3,224
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,857
|
|
|||||||
Tax benefit related to employee stock-based compensation
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,249
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,249
|
)
|
|||||||
Stock-based compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,548
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,548
|
|
|||||||
Shares repurchased related to employee stock-based compensation plans
|
|
—
|
|
|
—
|
|
|
(1,391,927
|
)
|
|
(1,391,927
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,512
|
)
|
|
(8,512
|
)
|
|||||||
Balance at June 30, 2016
|
|
7,300,000
|
|
|
433,843,908
|
|
|
(5,766,117
|
)
|
|
428,077,791
|
|
|
$
|
565,000
|
|
|
$
|
86,769
|
|
|
$
|
1,149,783
|
|
|
$
|
(33,853
|
)
|
|
$
|
478,947
|
|
|
$
|
(49,735
|
)
|
|
$
|
2,196,911
|
|
|
|
|
|
Common Stock Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||
|
|
Preferred Stock Shares
|
|
Issued
|
|
Treasury
|
|
Outstanding
|
|
Preferred Stock
|
|
Common Stock
|
|
Additional Paid-In Capital
|
|
Accumulated
Other
Comprehensive
Income (Loss)
|
|
Retained Earnings
|
|
Treasury Stock
|
|
Total Equity
|
||||||||||||||||||
Balance at December 31, 2016
|
|
7,300,000
|
|
|
436,632,479
|
|
|
(7,728,920
|
)
|
|
428,903,559
|
|
|
$
|
565,000
|
|
|
$
|
87,327
|
|
|
$
|
1,175,564
|
|
|
$
|
(8,671
|
)
|
|
$
|
595,322
|
|
|
$
|
(67,484
|
)
|
|
$
|
2,347,058
|
|
Net income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
165,560
|
|
|
—
|
|
|
165,560
|
|
|||||||
Other comprehensive income, net of tax
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
819
|
|
|
—
|
|
|
—
|
|
|
819
|
|
|||||||
Total comprehensive income
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
166,379
|
|
|||||||
Cumulative effect of the new stock compensation standard
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
429
|
|
|
—
|
|
|
(264
|
)
|
|
—
|
|
|
165
|
|
|||||||
Cash dividends:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||||
Preferred Stock, series A ($1.74 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,961
|
)
|
|
—
|
|
|
(3,961
|
)
|
|||||||
Preferred Stock, series B ($1.39 per share)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,588
|
)
|
|
—
|
|
|
(5,588
|
)
|
|||||||
Redemption of Series A Preferred Stock
|
|
(3,300,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(165,000
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(165,000
|
)
|
|||||||
Dividend equivalent units related to employee stock-based compensation plans
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
96
|
|
|
—
|
|
|
(96
|
)
|
|
—
|
|
|
—
|
|
|||||||
Issuance of common shares
|
|
—
|
|
|
5,229,774
|
|
|
|
|
5,229,774
|
|
|
—
|
|
|
1,046
|
|
|
13,448
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
14,494
|
|
||||||||
Stock-based compensation expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,500
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
15,500
|
|
|||||||
Shares repurchased related to employee stock-based compensation plans
|
|
—
|
|
|
—
|
|
|
(2,584,964
|
)
|
|
(2,584,964
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(31,337
|
)
|
|
(31,337
|
)
|
|||||||
Balance at June 30, 2017
|
|
4,000,000
|
|
|
441,862,253
|
|
|
(10,313,884
|
)
|
|
431,548,369
|
|
|
$
|
400,000
|
|
|
$
|
88,373
|
|
|
$
|
1,205,037
|
|
|
$
|
(7,852
|
)
|
|
$
|
750,973
|
|
|
$
|
(98,821
|
)
|
|
$
|
2,337,710
|
|
|
|
Six Months Ended
|
||||||
|
|
June 30,
|
||||||
|
|
2017
|
|
2016
|
||||
Operating activities
|
|
|
|
|
||||
Net income
|
|
$
|
165,560
|
|
|
$
|
123,120
|
|
Adjustments to reconcile net income to net cash used in operating activities:
|
|
|
|
|
||||
Provisions for credit losses
|
|
75,511
|
|
|
74,395
|
|
||
Income tax expense
|
|
95,724
|
|
|
71,181
|
|
||
Amortization of brokered deposit placement fee
|
|
4,339
|
|
|
5,179
|
|
||
Amortization of ABCP Facility upfront fee
|
|
668
|
|
|
502
|
|
||
Amortization of deferred loan origination costs and fees, net
|
|
4,069
|
|
|
2,720
|
|
||
Net amortization of discount on investments
|
|
872
|
|
|
793
|
|
||
Interest income on tax indemnification receivable
|
|
(3,427
|
)
|
|
(4,066
|
)
|
||
Depreciation of premises and equipment
|
|
5,365
|
|
|
2,295
|
|
||
Amortization of acquired intangibles
|
|
234
|
|
|
261
|
|
||
Stock-based compensation expense
|
|
15,500
|
|
|
12,548
|
|
||
Unrealized losses (gains) on derivatives and hedging activities, net
|
|
10,833
|
|
|
(835
|
)
|
||
Other adjustments to net income, net
|
|
2,998
|
|
|
1,101
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
|
||||
Increase in accrued interest receivable
|
|
(324,684
|
)
|
|
(277,582
|
)
|
||
Decrease in restricted cash and investments, net
|
|
4,004
|
|
|
2,053
|
|
||
Increase in other interest-earning assets
|
|
588
|
|
|
1,290
|
|
||
Decrease in tax indemnification receivable
|
|
29,817
|
|
|
29,816
|
|
||
Increase in other assets
|
|
(20,586
|
)
|
|
(14,591
|
)
|
||
Decrease in income taxes payable, net
|
|
(139,775
|
)
|
|
(149,193
|
)
|
||
Increase in accrued interest payable
|
|
3,275
|
|
|
2,924
|
|
||
Decrease in payable due to entity that is a subsidiary of Navient
|
|
(1,244
|
)
|
|
(808
|
)
|
||
(Decrease) increase in other liabilities
|
|
(35,267
|
)
|
|
7,976
|
|
||
Total adjustments
|
|
(271,186
|
)
|
|
(232,041
|
)
|
||
Total net cash used in operating activities
|
|
(105,626
|
)
|
|
(108,921
|
)
|
||
Investing activities
|
|
|
|
|
||||
Loans acquired and originated
|
|
(2,347,344
|
)
|
|
(2,234,556
|
)
|
||
Net proceeds from sales of loans held for investment
|
|
3,472
|
|
|
5,736
|
|
||
Proceeds from claim payments
|
|
24,907
|
|
|
33,892
|
|
||
Net decrease in loans held for investment
|
|
980,234
|
|
|
624,040
|
|
||
Increase in restricted cash and investments - variable interest entities
|
|
(12,753
|
)
|
|
(8,369
|
)
|
||
Purchases of available-for-sale securities
|
|
(40,124
|
)
|
|
(23,362
|
)
|
||
Proceeds from sales and maturities of available-for-sale securities
|
|
16,976
|
|
|
15,492
|
|
||
Total net cash used in investing activities
|
|
(1,374,632
|
)
|
|
(1,587,127
|
)
|
||
Financing activities
|
|
|
|
|
||||
Brokered deposit placement fee
|
|
(5,329
|
)
|
|
(2,875
|
)
|
||
Net decrease in certificates of deposit
|
|
308,069
|
|
|
56,272
|
|
||
Net increase in other deposits
|
|
51,447
|
|
|
322,959
|
|
||
Issuance costs for collateralized borrowings
|
|
—
|
|
|
(386
|
)
|
||
Borrowings collateralized by loans in securitization trusts - issued
|
|
767,244
|
|
|
499,393
|
|
||
Borrowings collateralized by loans in securitization trusts - repaid
|
|
(262,567
|
)
|
|
(40,618
|
)
|
||
Issuance costs for unsecured debt offering
|
|
(423
|
)
|
|
—
|
|
||
Unsecured debt issued
|
|
197,000
|
|
|
—
|
|
||
Borrowings under ABCP Facility
|
|
—
|
|
|
26,325
|
|
||
Repayment of borrowings under ABCP Facility
|
|
—
|
|
|
(526,500
|
)
|
Fees paid on ABCP Facility
|
|
(1,259
|
)
|
|
(1,444
|
)
|
||
Redemption of Preferred Stock Series A
|
|
(165,000
|
)
|
|
—
|
|
||
Preferred stock dividends paid
|
|
(9,549
|
)
|
|
(10,382
|
)
|
||
Net cash provided by financing activities
|
|
879,633
|
|
|
322,744
|
|
||
Net decrease in cash and cash equivalents
|
|
(600,625
|
)
|
|
(1,373,304
|
)
|
||
Cash and cash equivalents at beginning of period
|
|
1,918,793
|
|
|
2,416,219
|
|
||
Cash and cash equivalents at end of period
|
|
$
|
1,318,168
|
|
|
$
|
1,042,915
|
|
Cash disbursements made for:
|
|
|
|
|
||||
Interest
|
|
$
|
121,601
|
|
|
$
|
75,165
|
|
Income taxes paid
|
|
$
|
139,828
|
|
|
$
|
149,173
|
|
Income taxes refunded
|
|
$
|
(833
|
)
|
|
$
|
(86
|
)
|
|
|
|
1.
|
Significant Accounting Policies (Continued)
|
|
1.
|
Significant Accounting Policies (Continued)
|
|
|
|
June 30,
|
|
December 31,
|
||||
|
|
2017
|
|
2016
|
||||
Private Education Loans
|
|
$
|
15,679,457
|
|
|
$
|
14,251,675
|
|
Deferred origination costs
|
|
48,905
|
|
|
44,206
|
|
||
Allowance for loan losses
|
|
(205,024
|
)
|
|
(182,472
|
)
|
||
Total Private Education Loans, net
|
|
15,523,338
|
|
|
14,113,409
|
|
||
|
|
|
|
|
||||
FFELP Loans
|
|
967,237
|
|
|
1,010,908
|
|
||
Unamortized acquisition costs, net
|
|
2,767
|
|
|
2,941
|
|
||
Allowance for loan losses
|
|
(1,606
|
)
|
|
(2,171
|
)
|
||
Total FFELP Loans, net
|
|
968,398
|
|
|
1,011,678
|
|
||
|
|
|
|
|
||||
Personal Loans
|
|
69,508
|
|
|
12,893
|
|
||
Allowance for loan losses
|
|
(818
|
)
|
|
(58
|
)
|
||
Total Personal Loans, net
|
|
68,690
|
|
|
12,835
|
|
||
|
|
|
|
|
||||
Loans held for investment, net
|
|
$
|
16,560,426
|
|
|
$
|
15,137,922
|
|
2.
|
Loans Held for Investment (Continued)
|
|
|
|
Three Months Ended
|
||||||||||||
|
|
June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
||||||||||
|
|
Average Balance
|
|
Weighted Average Interest Rate
|
|
Average Balance
|
|
Weighted Average Interest Rate
|
||||||
Private Education Loans
|
|
$
|
15,687,803
|
|
|
8.33
|
%
|
|
$
|
12,217,890
|
|
|
7.98
|
%
|
FFELP Loans
|
|
980,478
|
|
|
3.87
|
|
|
1,076,419
|
|
|
3.48
|
|
||
Personal Loans
|
|
60,910
|
|
|
9.28
|
|
|
—
|
|
|
—
|
|
||
Total portfolio
|
|
$
|
16,729,191
|
|
|
|
|
$
|
13,294,309
|
|
|
|
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
||||||||||
|
|
Average Balance
|
|
Weighted Average Interest Rate
|
|
Average Balance
|
|
Weighted Average Interest Rate
|
||||||
Private Education Loans
|
|
$
|
15,569,337
|
|
|
8.30
|
%
|
|
$
|
12,017,799
|
|
|
8.00
|
%
|
FFELP Loans
|
|
991,740
|
|
|
3.78
|
|
|
1,089,836
|
|
|
3.45
|
|
||
Personal Loans
|
|
48,894
|
|
|
9.19
|
|
|
—
|
|
|
—
|
|
||
Total portfolio
|
|
$
|
16,609,971
|
|
|
|
|
$
|
13,107,635
|
|
|
|
|
|
Allowance for Loan Losses
|
||||||||||||||
|
|
Three Months Ended June 30, 2017
|
||||||||||||||
|
|
FFELP
Loans
|
|
Private
Education
Loans
|
|
Personal
Loans
|
|
Total
|
||||||||
Allowance for Loan Losses
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
1,637
|
|
|
$
|
185,103
|
|
|
$
|
346
|
|
|
$
|
187,086
|
|
Total provision
|
|
228
|
|
|
49,166
|
|
|
492
|
|
|
49,886
|
|
||||
Net charge-offs:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Charge-offs
|
|
(259
|
)
|
|
(32,728
|
)
|
|
(20
|
)
|
|
(33,007
|
)
|
||||
Recoveries
|
|
—
|
|
|
4,396
|
|
|
—
|
|
|
4,396
|
|
||||
Net charge-offs
|
|
(259
|
)
|
|
(28,332
|
)
|
|
(20
|
)
|
|
(28,611
|
)
|
||||
Loan sales
(1)
|
|
—
|
|
|
(913
|
)
|
|
—
|
|
|
(913
|
)
|
||||
Ending Balance
|
|
$
|
1,606
|
|
|
$
|
205,024
|
|
|
$
|
818
|
|
|
$
|
207,448
|
|
Allowance:
|
|
|
|
|
|
|
|
|
||||||||
Ending balance: individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
95,177
|
|
|
$
|
—
|
|
|
$
|
95,177
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
1,606
|
|
|
$
|
109,847
|
|
|
$
|
818
|
|
|
$
|
112,271
|
|
Loans:
|
|
|
|
|
|
|
|
|
||||||||
Ending balance: individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
803,456
|
|
|
$
|
—
|
|
|
$
|
803,456
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
967,237
|
|
|
$
|
14,876,001
|
|
|
$
|
69,508
|
|
|
$
|
15,912,746
|
|
Net charge-offs as a percentage of average loans in repayment (annualized)
(2)
|
|
0.14
|
%
|
|
1.08
|
%
|
|
0.13
|
%
|
|
|
|||||
Allowance as a percentage of the ending total loan balance
|
|
0.17
|
%
|
|
1.31
|
%
|
|
1.18
|
%
|
|
|
|||||
Allowance as a percentage of the ending loans in repayment
(2)
|
|
0.21
|
%
|
|
1.93
|
%
|
|
1.18
|
%
|
|
|
|||||
Allowance coverage of net charge-offs (annualized)
|
|
1.55
|
|
|
1.81
|
|
|
10.23
|
|
|
|
|||||
Ending total loans, gross
|
|
$
|
967,237
|
|
|
$
|
15,679,457
|
|
|
$
|
69,508
|
|
|
|
||
Average loans in repayment
(2)
|
|
$
|
757,186
|
|
|
$
|
10,523,225
|
|
|
$
|
61,439
|
|
|
|
||
Ending loans in repayment
(2)
|
|
$
|
765,980
|
|
|
$
|
10,615,105
|
|
|
$
|
69,508
|
|
|
|
3.
|
Allowance for Loan Losses (Continued)
|
|
|
|
Allowance for Loan Losses
|
||||||||||
|
|
Three Months Ended June 30, 2016
|
||||||||||
|
|
FFELP Loans
|
|
Private Education
Loans
|
|
Total
|
||||||
Allowance for Loan Losses
|
|
|
|
|
|
|
||||||
Beginning balance
|
|
$
|
3,629
|
|
|
$
|
122,620
|
|
|
$
|
126,249
|
|
Total provision
|
|
(985
|
)
|
|
42,362
|
|
|
41,377
|
|
|||
Net charge-offs:
|
|
|
|
|
|
|
||||||
Charge-offs
|
|
(347
|
)
|
|
(23,903
|
)
|
|
(24,250
|
)
|
|||
Recoveries
|
|
—
|
|
|
3,082
|
|
|
3,082
|
|
|||
Net charge-offs
|
|
(347
|
)
|
|
(20,821
|
)
|
|
(21,168
|
)
|
|||
Loan sales
(1)
|
|
—
|
|
|
(1,533
|
)
|
|
(1,533
|
)
|
|||
Ending Balance
|
|
$
|
2,297
|
|
|
$
|
142,628
|
|
|
$
|
144,925
|
|
Allowance:
|
|
|
|
|
|
|
||||||
Ending balance: individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
63,370
|
|
|
$
|
63,370
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
2,297
|
|
|
$
|
79,258
|
|
|
$
|
81,555
|
|
Loans:
|
|
|
|
|
|
|
||||||
Ending balance: individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
400,969
|
|
|
$
|
400,969
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
1,061,517
|
|
|
$
|
11,889,740
|
|
|
$
|
12,951,257
|
|
Net charge-offs as a percentage of average loans in repayment (annualized)
(2)
|
|
0.18
|
%
|
|
1.05
|
%
|
|
|
||||
Allowance as a percentage of the ending total loan balance
|
|
0.22
|
%
|
|
1.16
|
%
|
|
|
||||
Allowance as a percentage of the ending loans in repayment
(2)
|
|
0.30
|
%
|
|
1.78
|
%
|
|
|
||||
Allowance coverage of net charge-offs (annualized)
|
|
1.65
|
|
|
1.71
|
|
|
|
||||
Ending total loans, gross
|
|
$
|
1,061,517
|
|
|
$
|
12,290,709
|
|
|
|
||
Average loans in repayment
(2)
|
|
$
|
786,818
|
|
|
$
|
7,894,340
|
|
|
|
||
Ending loans in repayment
(2)
|
|
$
|
773,321
|
|
|
$
|
8,029,034
|
|
|
|
3.
|
Allowance for Loan Losses (Continued)
|
|
|
|
Allowance for Loan Losses
|
||||||||||||||
|
|
Six Months Ended June 30, 2017
|
||||||||||||||
|
|
FFELP
Loans
|
|
Private
Education
Loans
|
|
Personal
Loans
|
|
Total
|
||||||||
Allowance for Loan Losses
|
|
|
|
|
|
|
|
|
||||||||
Beginning balance
|
|
$
|
2,171
|
|
|
$
|
182,472
|
|
|
$
|
58
|
|
|
$
|
184,701
|
|
Total provision
|
|
(88
|
)
|
|
75,986
|
|
|
780
|
|
|
76,678
|
|
||||
Net charge-offs:
|
|
|
|
|
|
|
|
|
||||||||
Charge-offs
|
|
(477
|
)
|
|
(58,955
|
)
|
|
(20
|
)
|
|
(59,452
|
)
|
||||
Recoveries
|
|
—
|
|
|
7,655
|
|
|
—
|
|
|
7,655
|
|
||||
Net charge-offs
|
|
(477
|
)
|
|
(51,300
|
)
|
|
(20
|
)
|
|
(51,797
|
)
|
||||
Loan sales
(1)
|
|
—
|
|
|
(2,134
|
)
|
|
—
|
|
|
(2,134
|
)
|
||||
Ending Balance
|
|
$
|
1,606
|
|
|
$
|
205,024
|
|
|
$
|
818
|
|
|
$
|
207,448
|
|
Allowance:
|
|
|
|
|
|
|
|
|
||||||||
Ending balance: individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
95,177
|
|
|
$
|
—
|
|
|
$
|
95,177
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
1,606
|
|
|
$
|
109,847
|
|
|
$
|
818
|
|
|
$
|
112,271
|
|
Loans:
|
|
|
|
|
|
|
|
|
||||||||
Ending balance: individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
803,456
|
|
|
$
|
—
|
|
|
$
|
803,456
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
967,237
|
|
|
$
|
14,876,001
|
|
|
$
|
69,508
|
|
|
$
|
15,912,746
|
|
Net charge-offs as a percentage of average loans in repayment (annualized)
(2)
|
|
0.12
|
%
|
|
0.99
|
%
|
|
0.08
|
%
|
|
|
|||||
Allowance as a percentage of the ending total loan balance
|
|
0.17
|
%
|
|
1.31
|
%
|
|
1.18
|
%
|
|
|
|||||
Allowance as a percentage of the ending loans in repayment
(2)
|
|
0.21
|
%
|
|
1.93
|
%
|
|
1.18
|
%
|
|
|
|||||
Allowance coverage of net charge-offs (annualized)
|
|
1.68
|
|
|
2.00
|
|
|
20.45
|
|
|
|
|||||
Ending total loans, gross
|
|
$
|
967,237
|
|
|
$
|
15,679,457
|
|
|
$
|
69,508
|
|
|
|
||
Average loans in repayment
(2)
|
|
$
|
765,347
|
|
|
$
|
10,375,463
|
|
|
$
|
47,654
|
|
|
|
||
Ending loans in repayment
(2)
|
|
$
|
765,980
|
|
|
$
|
10,615,105
|
|
|
$
|
69,508
|
|
|
|
3.
|
Allowance for Loan Losses (Continued)
|
|
|
|
Allowance for Loan Losses
|
||||||||||
|
|
Six Months Ended June 30, 2016
|
||||||||||
|
|
FFELP Loans
|
|
Private Education
Loans
|
|
Total
|
||||||
Allowance for Loan Losses
|
|
|
|
|
|
|
||||||
Beginning balance
|
|
$
|
3,691
|
|
|
$
|
108,816
|
|
|
$
|
112,507
|
|
Total provision
|
|
(664
|
)
|
|
76,201
|
|
|
75,537
|
|
|||
Net charge-offs:
|
|
|
|
|
|
|
||||||
Charge-offs
|
|
(730
|
)
|
|
(42,907
|
)
|
|
(43,637
|
)
|
|||
Recoveries
|
|
—
|
|
|
4,125
|
|
|
4,125
|
|
|||
Net charge-offs
|
|
(730
|
)
|
|
(38,782
|
)
|
|
(39,512
|
)
|
|||
Loan sales
(1)
|
|
—
|
|
|
(3,607
|
)
|
|
(3,607
|
)
|
|||
Ending Balance
|
|
$
|
2,297
|
|
|
$
|
142,628
|
|
|
$
|
144,925
|
|
Allowance:
|
|
|
|
|
|
|
||||||
Ending balance: individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
63,370
|
|
|
$
|
63,370
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
2,297
|
|
|
$
|
79,258
|
|
|
$
|
81,555
|
|
Loans:
|
|
|
|
|
|
|
||||||
Ending balance: individually evaluated for impairment
|
|
$
|
—
|
|
|
$
|
400,969
|
|
|
$
|
400,969
|
|
Ending balance: collectively evaluated for impairment
|
|
$
|
1,061,517
|
|
|
$
|
11,889,740
|
|
|
$
|
12,951,257
|
|
Net charge-offs as a percentage of average loans in repayment (annualized)
(2)
|
|
0.18
|
%
|
|
1.01
|
%
|
|
|
||||
Allowance as a percentage of the ending total loan balance
|
|
0.22
|
%
|
|
1.16
|
%
|
|
|
||||
Allowance as a percentage of the ending loans in repayment
(2)
|
|
0.30
|
%
|
|
1.78
|
%
|
|
|
||||
Allowance coverage of net charge-offs (annualized)
|
|
1.57
|
|
|
1.84
|
|
|
|
||||
Ending total loans, gross
|
|
$
|
1,061,517
|
|
|
$
|
12,290,709
|
|
|
|
||
Average loans in repayment
(2)
|
|
$
|
794,665
|
|
|
$
|
7,695,889
|
|
|
|
||
Ending loans in repayment
(2)
|
|
$
|
773,321
|
|
|
$
|
8,029,034
|
|
|
|
3.
|
Allowance for Loan Losses (Continued)
|
|
|
|
Recorded Investment
|
|
Unpaid Principal Balance
|
|
Allowance
|
||||||
|
|
|
|
|
|
|
||||||
June 30, 2017
|
|
|
|
|
|
|
||||||
TDR Loans
|
|
$
|
815,515
|
|
|
$
|
803,456
|
|
|
$
|
95,177
|
|
|
|
|
|
|
|
|
||||||
December 31, 2016
|
|
|
|
|
|
|
||||||
TDR Loans
|
|
$
|
620,991
|
|
|
$
|
612,606
|
|
|
$
|
86,930
|
|
|
|
Three Months Ended
June 30, |
||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
TDR Loans
|
|
$
|
766,171
|
|
|
$
|
14,310
|
|
|
$
|
364,882
|
|
|
$
|
6,697
|
|
3.
|
Allowance for Loan Losses (Continued)
|
|
|
|
Six Months Ended
June 30, |
||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
|
Average
Recorded
Investment
|
|
Interest
Income
Recognized
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
TDR Loans
|
|
$
|
718,727
|
|
|
$
|
26,567
|
|
|
$
|
332,292
|
|
|
$
|
12,280
|
|
|
|
June 30,
|
|
December 31,
|
||||||||||
|
|
2017
|
|
2016
|
||||||||||
|
|
Balance
|
|
%
|
|
Balance
|
|
%
|
||||||
TDR loans in in-school/grace/deferment
(1)
|
|
$
|
33,693
|
|
|
|
|
$
|
24,185
|
|
|
|
||
TDR loans in forbearance
(2)
|
|
98,710
|
|
|
|
|
71,851
|
|
|
|
||||
TDR loans in repayment
(3)
and percentage of each status:
|
|
|
|
|
|
|
|
|
||||||
Loans current
|
|
603,215
|
|
|
89.9
|
%
|
|
462,187
|
|
|
89.5
|
%
|
||
Loans delinquent 31-60 days
(4)
|
|
35,120
|
|
|
5.2
|
|
|
28,452
|
|
|
5.5
|
|
||
Loans delinquent 61-90 days
(4)
|
|
20,170
|
|
|
3.0
|
|
|
17,326
|
|
|
3.4
|
|
||
Loans delinquent greater than 90 days
(4)
|
|
12,548
|
|
|
1.9
|
|
|
8,605
|
|
|
1.6
|
|
||
Total TDR loans in repayment
|
|
671,053
|
|
|
100.0
|
%
|
|
516,570
|
|
|
100.0
|
%
|
||
Total TDR loans, gross
|
|
$
|
803,456
|
|
|
|
|
$
|
612,606
|
|
|
|
(1)
|
Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation).
|
(2)
|
Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures.
|
(3)
|
Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period.
|
(4)
|
The period of delinquency is based on the number of days scheduled payments are contractually past due.
|
3.
|
Allowance for Loan Losses (Continued)
|
|
|
|
Three Months Ended
June 30, 2017 |
|
Three Months Ended
June 30, 2016 |
||||||||||||||||||||
|
|
Modified Loans
(1)
|
|
Charge-offs
|
|
Payment-
Default
|
|
Modified Loans
(1)
|
|
Charge-offs
|
|
Payment-
Default
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
TDR Loans
|
|
$
|
134,489
|
|
|
$
|
12,215
|
|
|
$
|
23,679
|
|
|
$
|
92,782
|
|
|
$
|
5,464
|
|
|
$
|
21,388
|
|
|
|
Six Months Ended
June 30, 2017 |
|
Six Months Ended
June 30, 2016 |
||||||||||||||||||||
|
|
Modified Loans
(1)
|
|
Charge-offs
|
|
Payment-
Default
|
|
Modified Loans
(1)
|
|
Charge-offs
|
|
Payment-
Default
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
TDR Loans
|
|
$
|
246,695
|
|
|
$
|
22,738
|
|
|
$
|
49,113
|
|
|
$
|
153,848
|
|
|
$
|
10,432
|
|
|
$
|
47,089
|
|
(1)
|
Represents the principal balance of loans that have been modified during the period and resulted in a TDR.
|
3.
|
Allowance for Loan Losses (Continued)
|
|
|
|
Private Education Loans
|
||||||||||||
|
|
Credit Quality Indicators
|
||||||||||||
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||
Credit Quality Indicators:
|
|
Balance
(1)
|
|
% of Balance
|
|
Balance
(1)
|
|
% of Balance
|
||||||
|
|
|
|
|
|
|
|
|
||||||
Cosigners:
|
|
|
|
|
|
|
|
|
||||||
With cosigner
|
|
$
|
14,079,677
|
|
|
90
|
%
|
|
$
|
12,816,512
|
|
|
90
|
%
|
Without cosigner
|
|
1,599,780
|
|
|
10
|
|
|
1,435,163
|
|
|
10
|
|
||
Total
|
|
$
|
15,679,457
|
|
|
100
|
%
|
|
$
|
14,251,675
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
||||||
FICO at Original Approval
(2)
:
|
|
|
|
|
|
|
|
|
||||||
Less than 670
|
|
$
|
1,016,829
|
|
|
6
|
%
|
|
$
|
920,132
|
|
|
6
|
%
|
670-699
|
|
2,314,571
|
|
|
15
|
|
|
2,092,722
|
|
|
15
|
|
||
700-749
|
|
5,128,665
|
|
|
33
|
|
|
4,639,958
|
|
|
33
|
|
||
Greater than or equal to 750
|
|
7,219,392
|
|
|
46
|
|
|
6,598,863
|
|
|
46
|
|
||
Total
|
|
$
|
15,679,457
|
|
|
100
|
%
|
|
$
|
14,251,675
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
||||||
Seasoning
(3)
:
|
|
|
|
|
|
|
|
|
||||||
1-12 payments
|
|
$
|
4,291,633
|
|
|
27
|
%
|
|
$
|
3,737,110
|
|
|
26
|
%
|
13-24 payments
|
|
2,931,945
|
|
|
19
|
|
|
2,841,107
|
|
|
20
|
|
||
25-36 payments
|
|
1,965,406
|
|
|
13
|
|
|
1,839,764
|
|
|
13
|
|
||
37-48 payments
|
|
990,248
|
|
|
6
|
|
|
917,633
|
|
|
7
|
|
||
More than 48 payments
|
|
792,829
|
|
|
5
|
|
|
726,106
|
|
|
5
|
|
||
Not yet in repayment
|
|
4,707,396
|
|
|
30
|
|
|
4,189,955
|
|
|
29
|
|
||
Total
|
|
$
|
15,679,457
|
|
|
100
|
%
|
|
$
|
14,251,675
|
|
|
100
|
%
|
(1)
|
Balance represents gross Private Education Loans.
|
(2)
|
Represents the higher credit score of the cosigner or the borrower.
|
(3)
|
Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due.
|
3.
|
Allowance for Loan Losses (Continued)
|
|
|
|
Personal Loans
|
||||||||||||
|
|
Credit Quality Indicators
|
||||||||||||
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||
Credit Quality Indicators:
|
|
Balance
(1)
|
|
% of Balance
|
|
Balance
(1)
|
|
% of Balance
|
||||||
|
|
|
|
|
|
|
|
|
||||||
FICO at Original Approval:
|
|
|
|
|
|
|
|
|
||||||
Less than 670
|
|
$
|
5,367
|
|
|
8
|
%
|
|
$
|
1,189
|
|
|
9
|
%
|
670-699
|
|
20,137
|
|
|
29
|
|
|
3,139
|
|
|
24
|
|
||
700-749
|
|
31,974
|
|
|
46
|
|
|
5,678
|
|
|
44
|
|
||
Greater than or equal to 750
|
|
12,030
|
|
|
17
|
|
|
2,888
|
|
|
23
|
|
||
Total
|
|
$
|
69,508
|
|
|
100
|
%
|
|
$
|
12,894
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
||||||
Seasoning
(2)
:
|
|
|
|
|
|
|
|
|
||||||
0-12 payments
|
|
$
|
69,508
|
|
|
100
|
%
|
|
$
|
12,894
|
|
|
100
|
%
|
13-24 payments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
25-36 payments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
37-48 payments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
More than 48 payments
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||
Total
|
|
$
|
69,508
|
|
|
100
|
%
|
|
$
|
12,894
|
|
|
100
|
%
|
(1)
|
Balance represents gross Personal Loans.
|
(2)
|
Number of months in active repayment for which a scheduled payment was due.
|
3.
|
Allowance for Loan Losses (Continued)
|
|
|
|
Private Education Loans
|
||||||||||||
|
|
June 30,
|
|
December 31,
|
||||||||||
|
|
2017
|
|
2016
|
||||||||||
|
|
Balance
|
|
%
|
|
Balance
|
|
%
|
||||||
Loans in-school/grace/deferment
(1)
|
|
$
|
4,707,396
|
|
|
|
|
$
|
4,189,955
|
|
|
|
||
Loans in forbearance
(2)
|
|
356,956
|
|
|
|
|
351,962
|
|
|
|
||||
Loans in repayment and percentage of each status:
|
|
|
|
|
|
|
|
|
||||||
Loans current
|
|
10,385,289
|
|
|
97.8
|
%
|
|
9,509,394
|
|
|
97.9
|
%
|
||
Loans delinquent 31-60 days
(3)
|
|
132,108
|
|
|
1.3
|
|
|
124,773
|
|
|
1.3
|
|
||
Loans delinquent 61-90 days
(3)
|
|
67,371
|
|
|
0.6
|
|
|
51,423
|
|
|
0.5
|
|
||
Loans delinquent greater than 90 days
(3)
|
|
30,337
|
|
|
0.3
|
|
|
24,168
|
|
|
0.3
|
|
||
Total Private Education Loans in repayment
|
|
10,615,105
|
|
|
100.0
|
%
|
|
9,709,758
|
|
|
100.0
|
%
|
||
Total Private Education Loans, gross
|
|
15,679,457
|
|
|
|
|
14,251,675
|
|
|
|
||||
Private Education Loans deferred origination costs
|
|
48,905
|
|
|
|
|
44,206
|
|
|
|
||||
Total Private Education Loans
|
|
15,728,362
|
|
|
|
|
14,295,881
|
|
|
|
||||
Private Education Loans allowance for losses
|
|
(205,024
|
)
|
|
|
|
(182,472
|
)
|
|
|
||||
Private Education Loans, net
|
|
$
|
15,523,338
|
|
|
|
|
$
|
14,113,409
|
|
|
|
||
Percentage of Private Education Loans in repayment
|
|
|
|
67.7
|
%
|
|
|
|
68.1
|
%
|
||||
Delinquencies as a percentage of Private Education Loans in repayment
|
|
|
|
2.2
|
%
|
|
|
|
2.1
|
%
|
||||
Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance
|
|
|
|
3.3
|
%
|
|
|
|
3.5
|
%
|
(1)
|
Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation).
|
(2)
|
Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures.
|
(3)
|
The period of delinquency is based on the number of days scheduled payments are contractually past due.
|
3.
|
Allowance for Loan Losses (Continued)
|
|
|
|
Private Education Loan
|
||||||||||
|
|
Accrued Interest Receivable
|
||||||||||
|
|
Total Interest Receivable
|
|
Greater Than 90 Days Past Due
|
|
Allowance for Uncollectible Interest
|
||||||
|
|
|
|
|
|
|
||||||
June 30, 2017
|
|
$
|
913,080
|
|
|
$
|
1,107
|
|
|
$
|
4,522
|
|
December 31, 2016
|
|
$
|
739,847
|
|
|
$
|
845
|
|
|
$
|
2,898
|
|
|
|
June 30,
|
|
December 31,
|
|
||||
|
|
2017
|
|
2016
|
|
||||
Deposits - interest bearing
|
|
$
|
13,793,200
|
|
|
$
|
13,434,990
|
|
|
Deposits - non-interest bearing
|
|
1,615
|
|
|
677
|
|
|
||
Total deposits
|
|
$
|
13,794,815
|
|
|
$
|
13,435,667
|
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
|
||||||||||
|
|
Amount
|
|
Qtr.-End Weighted Average Stated Rate
(1)
|
|
Amount
|
|
Year-End Weighted Average Stated Rate
(1)
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||
Money market
|
|
$
|
7,167,473
|
|
|
1.55
|
%
|
|
$
|
7,129,404
|
|
|
1.22
|
%
|
|
Savings
|
|
847,714
|
|
|
0.99
|
|
|
834,521
|
|
|
0.84
|
|
|
||
Certificates of deposit
|
|
5,778,013
|
|
|
1.73
|
|
|
5,471,065
|
|
|
1.41
|
|
|
||
Deposits - interest bearing
|
|
$
|
13,793,200
|
|
|
|
|
$
|
13,434,990
|
|
|
|
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
|
Short-Term
|
|
Long-Term
|
|
Total
|
|
Short-Term
|
|
Long-Term
|
|
Total
|
||||||||||||
Unsecured borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unsecured debt
|
|
$
|
—
|
|
|
$
|
196,740
|
|
|
$
|
196,740
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total unsecured borrowings
|
|
—
|
|
|
196,740
|
|
|
196,740
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Secured borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Private Education Loan term securitizations
|
|
$
|
—
|
|
|
$
|
2,675,491
|
|
|
$
|
2,675,491
|
|
|
$
|
—
|
|
|
$
|
2,167,979
|
|
|
$
|
2,167,979
|
|
ABCP Facility
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total secured borrowings
|
|
—
|
|
|
2,675,491
|
|
|
2,675,491
|
|
|
—
|
|
|
2,167,979
|
|
|
2,167,979
|
|
||||||
Total
|
|
$
|
—
|
|
|
$
|
2,872,231
|
|
|
$
|
2,872,231
|
|
|
$
|
—
|
|
|
$
|
2,167,979
|
|
|
$
|
2,167,979
|
|
5.
|
Borrowings (Continued)
|
Issue
|
|
Date Issued
|
|
Total Issued
|
|
Weighted Average Cost of Funds
(1)
|
|
Weighted Average Life
(in years)
|
||
|
|
|
|
|
|
|
|
|
||
Private Education:
|
|
|
|
|
|
|
||||
2015-B
|
|
July 2015
|
|
$
|
630,800
|
|
|
1-month LIBOR plus 1.53%
|
|
4.82
|
Total notes issued in 2015
|
|
$
|
630,800
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Total loan and accrued interest amount securitized at inception in 2015
|
|
$
|
745,580
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
2016-A
|
|
May 2016
|
|
$
|
501,000
|
|
|
1-month LIBOR plus 1.38%
|
|
4.01
|
2016-B
|
|
July 2016
|
|
607,000
|
|
|
1-month LIBOR plus 1.36%
|
|
4.01
|
|
2016-C
|
|
October 2016
|
|
674,000
|
|
|
1-month LIBOR plus 1.15%
|
|
4.27
|
|
Total notes issued in 2016
|
|
$
|
1,782,000
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Total loan and accrued interest amount securitized at inception in 2016
|
|
$
|
2,107,042
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
2017-A
|
|
February 2017
|
|
$
|
772,000
|
|
|
1-month LIBOR plus 0.93%
|
|
4.27
|
Total notes issued in 2017
|
|
$
|
772,000
|
|
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||
Total loan and accrued interest amount securitized at inception in 2017
|
|
$
|
856,253
|
|
|
|
|
|
5.
|
Borrowings (Continued)
|
|
|
June 30, 2017
|
||||||||||||||||||||||||||
|
|
Debt Outstanding
|
|
Carrying Amount of Assets Securing Debt Outstanding
|
||||||||||||||||||||||||
|
|
Short-Term
|
|
Long-Term
|
|
Total
|
|
Loans
|
|
Restricted Cash
|
|
Other Assets
(1)
|
|
Total
|
||||||||||||||
Secured borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Private Education Loan term securitizations
|
|
$
|
—
|
|
|
$
|
2,675,491
|
|
|
$
|
2,675,491
|
|
|
$
|
3,172,113
|
|
|
$
|
57,370
|
|
|
$
|
224,768
|
|
|
$
|
3,454,251
|
|
ABCP Facility
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total
|
|
$
|
—
|
|
|
$
|
2,675,491
|
|
|
$
|
2,675,491
|
|
|
$
|
3,172,113
|
|
|
$
|
57,370
|
|
|
$
|
224,768
|
|
|
$
|
3,454,251
|
|
|
|
December 31, 2016
|
||||||||||||||||||||||||||
|
|
Debt Outstanding
|
|
Carrying Amount of Assets Securing Debt Outstanding
|
||||||||||||||||||||||||
|
|
Short-Term
|
|
Long-Term
|
|
Total
|
|
Loans
|
|
Restricted Cash
|
|
Other
Assets
(1)
|
|
Total
|
||||||||||||||
Secured borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Private Education Loan term securitizations
|
|
$
|
—
|
|
|
$
|
2,167,979
|
|
|
$
|
2,167,979
|
|
|
$
|
2,562,156
|
|
|
$
|
44,617
|
|
|
$
|
160,783
|
|
|
$
|
2,767,556
|
|
ABCP Facility
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||||
Total
|
|
$
|
—
|
|
|
$
|
2,167,979
|
|
|
$
|
2,167,979
|
|
|
$
|
2,562,156
|
|
|
$
|
44,617
|
|
|
$
|
160,783
|
|
|
$
|
2,767,556
|
|
6.
|
Derivative Financial Instruments (Continued)
|
|
|
|
|
Cash Flow Hedges
|
|
Fair Value Hedges
|
|
Trading
|
|
Total
|
||||||||||||||||||||||||
|
|
|
June 30,
|
|
December
31,
|
|
June 30,
|
|
December
31, |
|
June 30,
|
|
December
31, |
|
June 30,
|
|
December
31, |
||||||||||||||||
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||
Fair Values
(1)
|
Hedged Risk Exposure
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Derivative Assets:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps
|
Interest rate
|
|
$
|
326
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
7,808
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
326
|
|
|
$
|
7,808
|
|
Derivative Liabilities:
(2)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Interest rate swaps
|
Interest rate
|
|
(8,476
|
)
|
|
(14,463
|
)
|
|
(2,648
|
)
|
|
(10,398
|
)
|
|
(128
|
)
|
|
(1,076
|
)
|
|
(11,252
|
)
|
|
(25,937
|
)
|
||||||||
Total net derivatives
|
|
|
$
|
(8,150
|
)
|
|
$
|
(14,463
|
)
|
|
$
|
(2,648
|
)
|
|
$
|
(2,590
|
)
|
|
$
|
(128
|
)
|
|
$
|
(1,076
|
)
|
|
$
|
(10,926
|
)
|
|
$
|
(18,129
|
)
|
(1)
|
Except for instruments cleared through the CME, fair values reported are exclusive of collateral held and pledged and accrued interest. Assets and liabilities are presented without consideration of master netting agreements. Derivatives are carried on the balance sheet based on net position by counterparty under master netting agreements, and classified in other assets or other liabilities depending on whether in a net positive or negative position. The net position includes the variation margin as legal settlement of the derivative contract for instruments cleared with the CME.
|
(2)
|
The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification:
|
6.
|
Derivative Financial Instruments (Continued)
|
|
|
|
Other Assets
|
|
Other Liabilities
|
||||||||||||
|
|
June 30,
|
|
December 31,
|
|
June 30,
|
|
December 31,
|
||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Gross position
(1)
|
|
$
|
326
|
|
|
$
|
7,808
|
|
|
$
|
(11,252
|
)
|
|
$
|
(25,937
|
)
|
Impact of master netting agreement
|
|
(326
|
)
|
|
(7,808
|
)
|
|
326
|
|
|
7,808
|
|
||||
Derivative values with impact of master netting agreements (as carried on balance sheet)
|
|
—
|
|
|
—
|
|
|
(10,926
|
)
|
|
(18,129
|
)
|
||||
Cash collateral (held) pledged
(2)
|
|
—
|
|
|
—
|
|
|
47,616
|
|
|
48,134
|
|
||||
Net position
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
36,690
|
|
|
$
|
30,005
|
|
(1)
|
Except for instruments cleared with the CME, gross position amounts are exclusive of accrued interest and collateral held and pledged.
|
(2)
|
Cash collateral (held) pledged excludes amounts that represent legal settlement of the derivative contracts.
|
6.
|
Derivative Financial Instruments (Continued)
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Fair Value Hedges
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps:
|
|
|
|
|
|
|
|
|
||||||||
Hedge ineffectiveness realized gains (losses) recorded in earnings
(1)
|
|
$
|
(3,711
|
)
|
|
$
|
1,218
|
|
|
$
|
(7,878
|
)
|
|
$
|
(1,199
|
)
|
Realized gains (losses) recorded in interest expense
|
|
2,881
|
|
|
7,391
|
|
|
7,428
|
|
|
14,650
|
|
||||
Total
|
|
$
|
(830
|
)
|
|
$
|
8,609
|
|
|
$
|
(450
|
)
|
|
$
|
13,451
|
|
|
|
|
|
|
|
|
|
|
||||||||
Cash Flow Hedges
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps:
|
|
|
|
|
|
|
|
|
||||||||
Hedge ineffectiveness losses recorded in earnings
(1)
|
|
$
|
(75
|
)
|
|
$
|
(403
|
)
|
|
$
|
(147
|
)
|
|
$
|
(681
|
)
|
Realized losses recorded in interest expense
|
|
(2,669
|
)
|
|
(4,586
|
)
|
|
(6,008
|
)
|
|
(9,207
|
)
|
||||
Total
|
|
$
|
(2,744
|
)
|
|
$
|
(4,989
|
)
|
|
$
|
(6,155
|
)
|
|
$
|
(9,888
|
)
|
|
|
|
|
|
|
|
|
|
||||||||
Trading
|
|
|
|
|
|
|
|
|
||||||||
Interest rate swaps:
|
|
|
|
|
|
|
|
|
||||||||
Interest reclassification
|
|
$
|
(101
|
)
|
|
$
|
672
|
|
|
$
|
(20
|
)
|
|
$
|
1,360
|
|
Realized gains (losses) recorded in earnings
|
|
278
|
|
|
655
|
|
|
(942
|
)
|
|
2,308
|
|
||||
Total
(1)
|
|
177
|
|
|
1,327
|
|
|
(962
|
)
|
|
3,668
|
|
||||
Total
|
|
$
|
(3,397
|
)
|
|
$
|
4,947
|
|
|
$
|
(7,567
|
)
|
|
$
|
7,231
|
|
(1)
|
Amounts included in “(losses) gains on derivatives and hedging activities, net” in the consolidated statements of income.
|
6.
|
Derivative Financial Instruments (Continued)
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Amount of gain (loss) recognized in other comprehensive income (loss)
|
|
$
|
(4,698
|
)
|
|
$
|
(13,318
|
)
|
|
$
|
(3,258
|
)
|
|
$
|
(42,313
|
)
|
Less: amount of gain (loss) reclassified in interest expense
(1)
|
|
(2,669
|
)
|
|
(4,586
|
)
|
|
(6,008
|
)
|
|
(9,207
|
)
|
||||
Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax benefit (expense)
|
|
$
|
(2,029
|
)
|
|
$
|
(8,732
|
)
|
|
$
|
2,750
|
|
|
$
|
(33,106
|
)
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(Shares and per share amounts in actuals)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Shares repurchased related to employee stock-based compensation plans
(1)(2)
|
|
981,477
|
|
|
263,218
|
|
|
2,584,964
|
|
|
1,391,927
|
|
||||
Average purchase price per share
|
|
$
|
12.39
|
|
|
$
|
6.68
|
|
|
$
|
12.12
|
|
|
$
|
6.12
|
|
Common shares issued
(3)
|
|
1,491,057
|
|
|
425,495
|
|
|
5,229,774
|
|
|
3,166,474
|
|
(1)
|
Comprised of shares withheld from stock option exercises and vesting of restricted stock for employees’ tax withholding obligations and shares tendered by employees to satisfy option exercise costs.
|
(2)
|
At the present time, we do not intend to initiate a publicly announced share repurchase program.
|
(3)
|
Common shares issued under our various compensation and benefit plans.
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
June 30,
|
|
June 30,
|
||||||||||||
(In thousands, except per share data)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
|
||||||||
Net income
|
|
$
|
70,617
|
|
|
$
|
57,205
|
|
|
$
|
165,560
|
|
|
$
|
123,120
|
|
Preferred stock dividends
|
|
3,974
|
|
|
5,243
|
|
|
9,549
|
|
|
10,382
|
|
||||
Net income attributable to SLM Corporation common stock
|
|
$
|
66,643
|
|
|
$
|
51,962
|
|
|
$
|
156,011
|
|
|
$
|
112,738
|
|
Denominator:
|
|
|
|
|
|
|
|
|
||||||||
Weighted average shares used to compute basic EPS
|
|
431,245
|
|
|
427,942
|
|
|
430,572
|
|
|
427,526
|
|
||||
Effect of dilutive securities:
|
|
|
|
|
|
|
|
|
||||||||
Dilutive effect of stock options, restricted stock, restricted stock units and Employee Stock Purchase Plan (“ESPP”)
(1)(2)
|
|
6,870
|
|
|
3,854
|
|
|
7,852
|
|
|
3,823
|
|
||||
Weighted average shares used to compute diluted EPS
|
|
438,115
|
|
|
431,796
|
|
|
438,424
|
|
|
431,349
|
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Basic earnings per common share attributable to SLM Corporation
|
|
$
|
0.15
|
|
|
$
|
0.12
|
|
|
$
|
0.36
|
|
|
$
|
0.26
|
|
|
|
|
|
|
|
|
|
|
||||||||
Diluted earnings per common share attributable to SLM Corporation
|
|
$
|
0.15
|
|
|
$
|
0.12
|
|
|
$
|
0.35
|
|
|
$
|
0.26
|
|
(1)
|
Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method.
|
(2)
|
For the three months ended
June 30,
2017 and 2016, securities covering approximately
0
and
1 million
shares, respectively, and for the six months ended
June 30,
2017 and 2016, securities covering approximately
0
and
4 million
shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive.
|
|
|
Fair Value Measurements on a Recurring Basis
|
||||||||||||||||||||||||||||||
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||||||||||
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Available-for-sale investments
|
|
$
|
—
|
|
|
$
|
229,479
|
|
|
$
|
—
|
|
|
$
|
229,479
|
|
|
$
|
—
|
|
|
$
|
208,603
|
|
|
$
|
—
|
|
|
$
|
208,603
|
|
Derivative instruments
|
|
—
|
|
|
326
|
|
|
—
|
|
|
326
|
|
|
—
|
|
|
7,808
|
|
|
—
|
|
|
7,808
|
|
||||||||
Total
|
|
$
|
—
|
|
|
$
|
229,805
|
|
|
$
|
—
|
|
|
$
|
229,805
|
|
|
$
|
—
|
|
|
$
|
216,411
|
|
|
$
|
—
|
|
|
$
|
216,411
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Derivative instruments
|
|
$
|
—
|
|
|
$
|
(11,252
|
)
|
|
$
|
—
|
|
|
$
|
(11,252
|
)
|
|
$
|
—
|
|
|
$
|
(25,937
|
)
|
|
$
|
—
|
|
|
$
|
(25,937
|
)
|
Total
|
|
$
|
—
|
|
|
$
|
(11,252
|
)
|
|
$
|
—
|
|
|
$
|
(11,252
|
)
|
|
$
|
—
|
|
|
$
|
(25,937
|
)
|
|
$
|
—
|
|
|
$
|
(25,937
|
)
|
9.
|
Fair Value Measurements (Continued)
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
|
Fair
Value
|
|
Carrying
Value
|
|
Difference
|
|
Fair
Value
|
|
Carrying
Value
|
|
Difference
|
||||||||||||
Earning assets
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Loans held for investment, net
|
|
$
|
18,349,005
|
|
|
$
|
16,560,426
|
|
|
$
|
1,788,579
|
|
|
$
|
16,520,786
|
|
|
$
|
15,137,922
|
|
|
$
|
1,382,864
|
|
Cash and cash equivalents
|
|
1,318,168
|
|
|
1,318,168
|
|
|
—
|
|
|
1,918,793
|
|
|
1,918,793
|
|
|
—
|
|
||||||
Available-for-sale investments
|
|
229,479
|
|
|
229,479
|
|
|
—
|
|
|
208,603
|
|
|
208,603
|
|
|
—
|
|
||||||
Accrued interest receivable
|
|
926,270
|
|
|
926,270
|
|
|
—
|
|
|
766,106
|
|
|
766,106
|
|
|
—
|
|
||||||
Tax indemnification receivable
|
|
233,142
|
|
|
233,142
|
|
|
—
|
|
|
259,532
|
|
|
259,532
|
|
|
—
|
|
||||||
Derivative instruments
|
|
326
|
|
|
326
|
|
|
—
|
|
|
7,808
|
|
|
7,808
|
|
|
—
|
|
||||||
Total earning assets
|
|
$
|
21,056,390
|
|
|
$
|
19,267,811
|
|
|
$
|
1,788,579
|
|
|
$
|
19,681,628
|
|
|
$
|
18,298,764
|
|
|
$
|
1,382,864
|
|
Interest-bearing liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Money-market and savings accounts
|
|
$
|
8,015,192
|
|
|
$
|
8,015,192
|
|
|
$
|
—
|
|
|
$
|
7,963,925
|
|
|
$
|
7,963,925
|
|
|
$
|
—
|
|
Certificates of deposit
|
|
5,788,342
|
|
|
5,778,013
|
|
|
(10,329
|
)
|
|
5,510,504
|
|
|
5,471,065
|
|
|
(39,439
|
)
|
||||||
Short-term borrowings
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Long-term borrowings
|
|
2,899,491
|
|
|
2,872,231
|
|
|
(27,260
|
)
|
|
2,160,105
|
|
|
2,167,979
|
|
|
7,874
|
|
||||||
Accrued interest payable
|
|
27,114
|
|
|
27,114
|
|
|
—
|
|
|
21,058
|
|
|
21,058
|
|
|
—
|
|
||||||
Derivative instruments
|
|
11,252
|
|
|
11,252
|
|
|
—
|
|
|
25,937
|
|
|
25,937
|
|
|
—
|
|
||||||
Total interest-bearing liabilities
|
|
$
|
16,741,391
|
|
|
$
|
16,703,802
|
|
|
$
|
(37,589
|
)
|
|
$
|
15,681,529
|
|
|
$
|
15,649,964
|
|
|
$
|
(31,565
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Excess of net asset fair value over carrying value
|
|
|
|
|
|
$
|
1,750,990
|
|
|
|
|
|
|
$
|
1,351,299
|
|
•
|
Navient will indemnify the Company and the Sallie Mae Bank, a Utah industrial bank subsidiary of the Company (the “Bank”), for any liabilities, costs or expenses they may incur arising from any action or threatened action related to the servicing, operations and collections activities of pre-Spin-Off SLM and its subsidiaries with respect to Private Education Loans and FFELP Loans that were assets of the Bank or Navient at the time of the Spin-Off; provided that written notice is provided to Navient on or prior to April 30, 2017, the third anniversary date of the Spin-Off. Navient will not indemnify for changes in law or changes in prior existing interpretations of law that occur on or after April 30, 2014.
|
•
|
Pursuant to a tax sharing agreement, Navient has agreed to indemnify us for
$283 million
in deferred taxes that the Company will be legally responsible for but that relate to gains recognized by the Company’s predecessor on debt repurchases made prior to the Spin-Off. The remaining amount of this indemnification at
June 30, 2017
was
$87 million
. In connection with the Spin-Off, we also recorded a liability related to uncertain tax positions of
$27 million
for which we are indemnified by Navient. As of
June 30, 2017
, the remaining balance of the indemnification receivable related to those uncertain tax positions was
$28 million
. In addition, we believe we are indemnified by Navient for uncertain tax positions relating to historical transactions among entities that are now subsidiaries of Navient that should have been recorded at the time of the Spin-Off. The remaining balance of the indemnification receivable related to these uncertain tax positions was
$118 million
at
June 30, 2017
.
|
|
|
Actual
|
|
“Well Capitalized”
Regulatory Requirements |
|||||||||
|
|
Amount
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||
As of June 30, 2017:
|
|
|
|
|
|
|
|
||||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets)
|
|
$
|
2,199,979
|
|
12.5
|
%
|
|
$
|
1,139,897
|
|
>
|
6.5
|
%
|
Tier 1 Capital (to Risk-Weighted Assets)
|
|
$
|
2,199,979
|
|
12.5
|
%
|
|
$
|
1,402,950
|
|
>
|
8.0
|
%
|
Total Capital (to Risk-Weighted Assets)
|
|
$
|
2,407,976
|
|
13.7
|
%
|
|
$
|
1,753,687
|
|
>
|
10.0
|
%
|
Tier 1 Capital (to Average Assets)
|
|
$
|
2,199,979
|
|
11.5
|
%
|
|
$
|
955,156
|
|
>
|
5.0
|
%
|
|
|
|
|
|
|
|
|
||||||
As of December 31, 2016:
|
|
|
|
|
|
|
|
||||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets)
|
|
$
|
2,011,583
|
|
12.6
|
%
|
|
$
|
1,038,638
|
|
>
|
6.5
|
%
|
Tier 1 Capital (to Risk-Weighted Assets)
|
|
$
|
2,011,583
|
|
12.6
|
%
|
|
$
|
1,278,323
|
|
>
|
8.0
|
%
|
Total Capital (to Risk-Weighted Assets)
|
|
$
|
2,197,997
|
|
13.8
|
%
|
|
$
|
1,597,904
|
|
>
|
10.0
|
%
|
Tier 1 Capital (to Average Assets)
|
|
$
|
2,011,583
|
|
11.1
|
%
|
|
$
|
907,565
|
|
>
|
5.0
|
%
|
12.
|
Commitments, Contingencies and Guarantees (Continued)
|
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(In thousands, except per share data and percentages)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Net income attributable to SLM Corporation common stock
|
|
$
|
66,643
|
|
|
$
|
51,962
|
|
|
$
|
156,011
|
|
|
$
|
112,738
|
|
Diluted earnings per common share attributable to SLM Corporation
|
|
$
|
0.15
|
|
|
$
|
0.12
|
|
|
$
|
0.35
|
|
|
$
|
0.26
|
|
Weighted average shares used to compute diluted earnings per share
|
|
438,115
|
|
|
431,796
|
|
|
438,424
|
|
|
431,349
|
|
||||
Return on assets
|
|
1.5
|
%
|
|
1.5
|
%
|
|
1.7
|
%
|
|
1.6
|
%
|
||||
Non-GAAP operating efficiency ratio - old method
(1)
|
|
40.2
|
%
|
|
41.6
|
%
|
|
38.9
|
%
|
|
41.0
|
%
|
||||
Non-GAAP operating efficiency ratio - new method
(1)
|
|
39.7
|
%
|
|
41.8
|
%
|
|
38.2
|
%
|
|
41.0
|
%
|
||||
|
|
|
|
|
|
|
|
|
||||||||
Other Operating Statistics
|
|
|
|
|
|
|
|
|
||||||||
Ending Private Education Loans, net
|
|
$
|
15,523,338
|
|
|
$
|
12,183,293
|
|
|
$
|
15,523,338
|
|
|
$
|
12,183,293
|
|
Ending FFELP Loans, net
|
|
968,398
|
|
|
1,062,133
|
|
|
968,398
|
|
|
1,062,133
|
|
||||
Ending total education loans, net
|
|
$
|
16,491,736
|
|
|
$
|
13,245,426
|
|
|
$
|
16,491,736
|
|
|
$
|
13,245,426
|
|
|
|
|
|
|
|
|
|
|
||||||||
Average education loans
|
|
$
|
16,668,281
|
|
|
$
|
13,294,309
|
|
|
$
|
16,561,077
|
|
|
$
|
13,107,635
|
|
|
|
|
|
|
|
|
|
|
||||||||
(1) In the first-quarter 2017, we changed the way we calculate and report our non-GAAP operating efficiency ratio. Please refer to “- Overview - Key Financial Measures - Operating Expenses” in this Form 10-Q for further details.
|
•
|
Creating an integrated online origination and servicing experience with a single point of entry and improved customer messaging;
|
•
|
Providing enhanced functionality to our customers that will give them more flexibility to service their accounts online, via chat and mobile, and over the phone; and
|
•
|
Continuing to support customers throughout the Private Education Loan experience with enhanced communication and tools.
|
|
|
Three Months Ended
June 30, |
|
Increase
(Decrease)
|
|
Six Months Ended
June 30, |
|
Increase
(Decrease)
|
||||||||||||||||||||||
(In millions, except per share data)
|
|
2017
|
|
2016
|
|
$
|
|
%
|
|
2017
|
|
2016
|
|
$
|
|
%
|
||||||||||||||
Interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans
|
|
$
|
337
|
|
|
$
|
252
|
|
|
$
|
85
|
|
|
34
|
%
|
|
$
|
662
|
|
|
$
|
497
|
|
|
$
|
165
|
|
|
33
|
%
|
Investments
|
|
2
|
|
|
2
|
|
|
—
|
|
|
—
|
|
|
4
|
|
|
5
|
|
|
(1
|
)
|
|
(20
|
)
|
||||||
Cash and cash equivalents
|
|
3
|
|
|
1
|
|
|
2
|
|
|
200
|
|
|
6
|
|
|
3
|
|
|
3
|
|
|
100
|
|
||||||
Total interest income
|
|
342
|
|
|
255
|
|
|
87
|
|
|
34
|
|
|
672
|
|
|
505
|
|
|
167
|
|
|
33
|
|
||||||
Total interest expense
|
|
72
|
|
|
42
|
|
|
30
|
|
|
71
|
|
|
134
|
|
|
82
|
|
|
52
|
|
|
63
|
|
||||||
Net interest income
|
|
270
|
|
|
213
|
|
|
57
|
|
|
27
|
|
|
538
|
|
|
423
|
|
|
115
|
|
|
27
|
|
||||||
Less: provisions for credit losses
|
|
50
|
|
|
42
|
|
|
8
|
|
|
19
|
|
|
76
|
|
|
74
|
|
|
2
|
|
|
3
|
|
||||||
Net interest income after provisions for credit losses
|
|
220
|
|
|
171
|
|
|
49
|
|
|
29
|
|
|
462
|
|
|
349
|
|
|
113
|
|
|
32
|
|
||||||
Non-interest income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
(Losses) gains on derivatives and hedging activities, net
|
|
(4
|
)
|
|
2
|
|
|
(6
|
)
|
|
(300
|
)
|
|
(9
|
)
|
|
2
|
|
|
(11
|
)
|
|
(550
|
)
|
||||||
Other income
|
|
11
|
|
|
14
|
|
|
(3
|
)
|
|
(21
|
)
|
|
22
|
|
|
34
|
|
|
(12
|
)
|
|
(35
|
)
|
||||||
Total non-interest income
|
|
7
|
|
|
16
|
|
|
(9
|
)
|
|
(56
|
)
|
|
13
|
|
|
36
|
|
|
(23
|
)
|
|
(64
|
)
|
||||||
Non-interest expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total operating expenses
|
|
111
|
|
|
95
|
|
|
16
|
|
|
17
|
|
|
214
|
|
|
188
|
|
|
26
|
|
|
14
|
|
||||||
Acquired intangible asset amortization expense
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total non-interest expenses
|
|
111
|
|
|
95
|
|
|
16
|
|
|
17
|
|
|
214
|
|
|
188
|
|
|
26
|
|
|
14
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Income before income tax expense
|
|
116
|
|
|
92
|
|
|
24
|
|
|
26
|
|
|
261
|
|
|
197
|
|
|
64
|
|
|
32
|
|
||||||
Income tax expense
|
|
45
|
|
|
35
|
|
|
10
|
|
|
29
|
|
|
95
|
|
|
74
|
|
|
22
|
|
|
30
|
|
||||||
Net income
|
|
71
|
|
|
57
|
|
|
14
|
|
|
25
|
|
|
166
|
|
|
123
|
|
|
42
|
|
|
34
|
|
||||||
Preferred stock dividends
|
|
4
|
|
|
5
|
|
|
(1
|
)
|
|
(20
|
)
|
|
10
|
|
|
10
|
|
|
—
|
|
|
—
|
|
||||||
Net income attributable to SLM Corporation common stock
|
|
$
|
67
|
|
|
$
|
52
|
|
|
$
|
15
|
|
|
29
|
%
|
|
$
|
156
|
|
|
$
|
113
|
|
|
$
|
42
|
|
|
37
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Basic earnings per common share attributable to SLM Corporation
|
|
$
|
0.15
|
|
|
$
|
0.12
|
|
|
$
|
0.03
|
|
|
25
|
%
|
|
$
|
0.36
|
|
|
$
|
0.26
|
|
|
$
|
0.10
|
|
|
38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Diluted earnings per common share attributable to SLM Corporation
|
|
$
|
0.15
|
|
|
$
|
0.12
|
|
|
$
|
0.03
|
|
|
25
|
%
|
|
$
|
0.35
|
|
|
$
|
0.26
|
|
|
$
|
0.09
|
|
|
35
|
%
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(Dollars in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
Hedge ineffectiveness gains (losses)
|
|
(3,786
|
)
|
|
$
|
815
|
|
|
$
|
(8,025
|
)
|
|
$
|
(1,880
|
)
|
|
Unrealized (losses) gains on instruments not in a hedging relationship
|
|
278
|
|
|
655
|
|
|
(942
|
)
|
|
2,308
|
|
||||
Interest reclassification
|
|
(101
|
)
|
|
672
|
|
|
(20
|
)
|
|
1,360
|
|
||||
(Losses) gains on derivatives and hedging activities, net
|
|
$
|
(3,609
|
)
|
|
$
|
2,142
|
|
|
$
|
(8,987
|
)
|
|
$
|
1,788
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(Dollars in thousands, except per share amounts)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
“
Core Earnings
”
adjustments to GAAP:
|
|
|
|
|
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
||||||||
GAAP net income attributable to SLM Corporation
|
|
$
|
70,617
|
|
|
$
|
57,205
|
|
|
$
|
165,560
|
|
|
$
|
123,120
|
|
Preferred stock dividends
|
|
3,974
|
|
|
5,243
|
|
|
9,549
|
|
|
10,382
|
|
||||
GAAP net income attributable to SLM Corporation common stock
|
|
$
|
66,643
|
|
|
$
|
51,962
|
|
|
$
|
156,011
|
|
|
$
|
112,738
|
|
|
|
|
|
|
|
|
|
|
||||||||
Adjustments:
|
|
|
|
|
|
|
|
|
||||||||
Net impact of derivative accounting
(1)
|
|
3,508
|
|
|
(1,470
|
)
|
|
8,966
|
|
|
(428
|
)
|
||||
Net tax effect
(2)
|
|
1,340
|
|
|
(562
|
)
|
|
3,424
|
|
|
(164
|
)
|
||||
Total “Core Earnings” adjustments to GAAP
|
|
2,168
|
|
|
(908
|
)
|
|
5,542
|
|
|
(264
|
)
|
||||
|
|
|
|
|
|
|
|
|
||||||||
“Core Earnings” attributable to SLM Corporation common stock
|
|
$
|
68,811
|
|
|
$
|
51,054
|
|
|
$
|
161,553
|
|
|
$
|
112,474
|
|
|
|
|
|
|
|
|
|
|
||||||||
GAAP diluted earnings per common share
|
|
$
|
0.15
|
|
|
$
|
0.12
|
|
|
$
|
0.35
|
|
|
$
|
0.26
|
|
Derivative adjustments, net of tax
|
|
0.01
|
|
|
—
|
|
|
0.02
|
|
|
—
|
|
||||
“Core Earnings” diluted earnings per common share
|
|
$
|
0.16
|
|
|
$
|
0.12
|
|
|
$
|
0.37
|
|
|
$
|
0.26
|
|
|
|
Three Months Ended June 30,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
(Dollars in thousands)
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
|
Balance
|
|
Rate
|
||||||||||||
Average Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Private Education Loans
|
|
$
|
15,687,803
|
|
|
8.33
|
%
|
|
$
|
12,217,890
|
|
|
7.98
|
%
|
|
$
|
15,569,337
|
|
|
8.30
|
%
|
|
$
|
12,017,799
|
|
|
8.00
|
%
|
FFELP Loans
|
|
980,478
|
|
|
3.87
|
|
|
1,076,419
|
|
|
3.48
|
|
|
991,740
|
|
|
3.78
|
|
|
1,089,836
|
|
|
3.45
|
|
||||
Personal and other loans
|
|
60,910
|
|
|
9.28
|
|
|
346
|
|
|
5.11
|
|
|
48,894
|
|
|
9.19
|
|
|
173
|
|
|
5.11
|
|
||||
Taxable securities
|
|
322,551
|
|
|
2.74
|
|
|
377,587
|
|
|
2.52
|
|
|
337,276
|
|
|
2.60
|
|
|
381,296
|
|
|
2.62
|
|
||||
Cash and other short-term investments
|
|
1,264,223
|
|
|
1.00
|
|
|
978,750
|
|
|
0.49
|
|
|
1,330,248
|
|
|
0.87
|
|
|
1,148,535
|
|
|
0.50
|
|
||||
Total interest-earning assets
|
|
18,315,965
|
|
|
7.49
|
%
|
|
14,650,992
|
|
|
7.01
|
%
|
|
18,277,495
|
|
|
7.41
|
%
|
|
14,637,639
|
|
|
6.93
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-interest-earning assets
|
|
1,039,433
|
|
|
|
|
766,364
|
|
|
|
|
981,229
|
|
|
|
|
735,483
|
|
|
|
||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Total assets
|
|
$
|
19,355,398
|
|
|
|
|
$
|
15,417,356
|
|
|
|
|
$
|
19,258,724
|
|
|
|
|
$
|
15,373,122
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Average Liabilities and Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Brokered deposits
|
|
$
|
6,679,564
|
|
|
1.69
|
%
|
|
$
|
6,903,666
|
|
|
1.32
|
%
|
|
$
|
6,846,524
|
|
|
1.57
|
%
|
|
$
|
6,999,746
|
|
|
1.30
|
%
|
Retail and other deposits
|
|
6,773,078
|
|
|
1.33
|
|
|
4,850,598
|
|
|
1.05
|
|
|
6,671,869
|
|
|
1.27
|
|
|
4,660,477
|
|
|
1.03
|
|
||||
Other interest-bearing liabilities
(1)
|
|
2,934,377
|
|
|
2.95
|
|
|
997,355
|
|
|
2.90
|
|
|
2,749,483
|
|
|
2.79
|
|
|
1,044,540
|
|
|
2.50
|
|
||||
Total interest-bearing liabilities
|
|
16,387,019
|
|
|
1.77
|
%
|
|
12,751,619
|
|
|
1.34
|
%
|
|
16,267,876
|
|
|
1.66
|
%
|
|
12,704,763
|
|
|
1.30
|
%
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Non-interest-bearing liabilities
|
|
584,599
|
|
|
|
|
487,851
|
|
|
|
|
606,253
|
|
|
|
|
522,002
|
|
|
|
||||||||
Equity
|
|
2,383,780
|
|
|
|
|
2,177,886
|
|
|
|
|
2,384,595
|
|
|
|
|
2,146,357
|
|
|
|
||||||||
Total liabilities and equity
|
|
$
|
19,355,398
|
|
|
|
|
$
|
15,417,356
|
|
|
|
|
$
|
19,258,724
|
|
|
|
|
$
|
15,373,122
|
|
|
|
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Net interest margin
|
|
|
|
5.91
|
%
|
|
|
|
5.84
|
%
|
|
|
|
5.94
|
%
|
|
|
|
5.81
|
%
|
(1)
|
Includes the average balance of our unsecured borrowing, as well as secured borrowings and amortization expense of transaction costs related to our ABCP Facility.
|
(Dollars in thousands)
|
|
Increase
|
|
Change Due To
(1)
|
||||||||
|
Rate
|
|
Volume
|
|||||||||
Three Months Ended June 30, 2017 vs. 2016
|
|
|
|
|
|
|
||||||
Interest income
|
|
$
|
86,854
|
|
|
$
|
18,665
|
|
|
$
|
68,189
|
|
Interest expense
|
|
29,727
|
|
|
15,653
|
|
|
14,074
|
|
|||
Net interest income
|
|
$
|
57,127
|
|
|
$
|
2,569
|
|
|
$
|
54,558
|
|
|
|
|
|
|
|
|
||||||
Six Months Ended June 30, 2017 vs. 2016
|
|
|
|
|
|
|
||||||
Interest income
|
|
$
|
166,887
|
|
|
$
|
36,395
|
|
|
$
|
130,492
|
|
Interest expense
|
|
51,547
|
|
|
25,615
|
|
|
25,932
|
|
|||
Net interest income
|
|
$
|
115,340
|
|
|
$
|
9,568
|
|
|
$
|
105,772
|
|
(1)
|
Changes in income and expense due to both rate and volume have been allocated in proportion to the relationship of the absolute dollar amounts of the change in each. The changes in income and expense are calculated independently for each line in the table. The totals for the rate and volume columns are not the sum of the individual lines.
|
|
|
June 30, 2017
|
||||||||||||||
(Dollars in thousands)
|
|
Private
Education
Loans
|
|
FFELP
Loans
|
|
Personal
Loans
|
|
Total
Portfolio
|
||||||||
Total loan portfolio:
|
|
|
|
|
|
|
|
|
||||||||
In-school
(1)
|
|
$
|
3,091,447
|
|
|
$
|
312
|
|
|
$
|
—
|
|
|
$
|
3,091,759
|
|
Grace, repayment and other
(2)
|
|
12,588,010
|
|
|
966,925
|
|
|
69,508
|
|
|
13,624,443
|
|
||||
Total, gross
|
|
15,679,457
|
|
|
967,237
|
|
|
69,508
|
|
|
16,716,202
|
|
||||
Deferred origination costs and unamortized premium
|
|
48,905
|
|
|
2,767
|
|
|
—
|
|
|
51,672
|
|
||||
Allowance for loan losses
|
|
(205,024
|
)
|
|
(1,606
|
)
|
|
(818
|
)
|
|
(207,448
|
)
|
||||
Total loan portfolio
|
|
$
|
15,523,338
|
|
|
$
|
968,398
|
|
|
$
|
68,690
|
|
|
$
|
16,560,426
|
|
|
|
|
|
|
|
|
|
|
||||||||
% of total
|
|
94
|
%
|
|
6
|
%
|
|
—
|
%
|
|
100
|
%
|
|
|
December 31, 2016
|
||||||||||||||
(Dollars in thousands)
|
|
Private
Education
Loans
|
|
FFELP
Loans
|
|
Personal
Loans
|
|
Total
Portfolio
|
||||||||
Total loan portfolio:
|
|
|
|
|
|
|
|
|
||||||||
In-school
(1)
|
|
$
|
3,371,870
|
|
|
$
|
377
|
|
|
$
|
—
|
|
|
$
|
3,372,247
|
|
Grace, repayment and other
(2)
|
|
10,879,805
|
|
|
1,010,531
|
|
|
12,893
|
|
|
11,903,229
|
|
||||
Total, gross
|
|
14,251,675
|
|
|
1,010,908
|
|
|
12,893
|
|
|
15,275,476
|
|
||||
Deferred origination costs and unamortized premium
|
|
44,206
|
|
|
2,941
|
|
|
|
|
47,147
|
|
|||||
Allowance for loan losses
|
|
(182,472
|
)
|
|
(2,171
|
)
|
|
(58
|
)
|
|
(184,701
|
)
|
||||
Total loan portfolio
|
|
$
|
14,113,409
|
|
|
$
|
1,011,678
|
|
|
$
|
12,835
|
|
|
$
|
15,137,922
|
|
|
|
|
|
|
|
|
|
|
||||||||
% of total
|
|
93
|
%
|
|
7
|
%
|
|
—
|
%
|
|
100
|
%
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||||||||||||||
(Dollars in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||||||||||||||
Private Education Loans
|
|
$
|
15,687,803
|
|
|
94
|
%
|
|
$
|
12,217,890
|
|
|
92
|
%
|
|
$
|
15,569,337
|
|
|
94
|
%
|
|
$
|
12,017,799
|
|
|
92
|
%
|
FFELP Loans
|
|
980,478
|
|
|
6
|
|
|
1,076,419
|
|
|
8
|
|
|
991,740
|
|
|
6
|
|
|
1,089,836
|
|
|
8
|
|
||||
Personal Loans
|
|
60,910
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
48,894
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Total portfolio
|
|
$
|
16,729,191
|
|
|
100
|
%
|
|
$
|
13,294,309
|
|
|
100
|
%
|
|
$
|
16,609,971
|
|
|
100
|
%
|
|
$
|
13,107,635
|
|
|
100
|
%
|
|
|
Three Months Ended June 30, 2017
|
||||||||||||||
(Dollars in thousands)
|
|
Private
Education
Loans
|
|
FFELP
Loans
|
|
Personal
Loans
|
|
Total
Portfolio
|
||||||||
Beginning balance
|
|
$
|
15,516,443
|
|
|
$
|
990,611
|
|
|
$
|
55,156
|
|
|
$
|
16,562,210
|
|
Acquisitions and originations
|
|
435,142
|
|
|
—
|
|
|
19,505
|
|
|
454,647
|
|
||||
Capitalized interest and deferred origination cost premium amortization
|
|
73,493
|
|
|
8,034
|
|
|
—
|
|
|
81,527
|
|
||||
Sales
|
|
(1,501
|
)
|
|
—
|
|
|
—
|
|
|
(1,501
|
)
|
||||
Loan consolidations to third parties
|
|
(139,921
|
)
|
|
(9,970
|
)
|
|
—
|
|
|
(149,891
|
)
|
||||
Repayments and other
|
|
(360,318
|
)
|
|
(20,277
|
)
|
|
(5,971
|
)
|
|
(386,566
|
)
|
||||
Ending balance
|
|
$
|
15,523,338
|
|
|
$
|
968,398
|
|
|
$
|
68,690
|
|
|
$
|
16,560,426
|
|
|
|
Three Months Ended June 30, 2016
|
||||||||||
(Dollars in thousands)
|
|
Private
Education
Loans
|
|
FFELP
Loans
|
|
Total
Portfolio
|
||||||
Beginning balance
|
|
$
|
12,021,022
|
|
|
$
|
1,087,403
|
|
|
$
|
13,108,425
|
|
Acquisitions and originations
|
|
427,972
|
|
|
—
|
|
|
427,972
|
|
|||
Capitalized interest and deferred origination cost premium amortization
|
|
50,270
|
|
|
9,496
|
|
|
59,766
|
|
|||
Sales
|
|
(2,372
|
)
|
|
—
|
|
|
(2,372
|
)
|
|||
Loan consolidations to third parties
|
|
(55,151
|
)
|
|
(12,745
|
)
|
|
(67,896
|
)
|
|||
Repayments and other
|
|
(258,448
|
)
|
|
(22,021
|
)
|
|
(280,469
|
)
|
|||
Ending balance
|
|
$
|
12,183,293
|
|
|
$
|
1,062,133
|
|
|
$
|
13,245,426
|
|
|
|
Six Months Ended June 30, 2017
|
||||||||||||||
(Dollars in thousands)
|
|
Private
Education
Loans
|
|
FFELP
Loans
|
|
Personal
Loans
|
|
Total
Portfolio
|
||||||||
Beginning balance
|
|
$
|
14,113,409
|
|
|
$
|
1,011,678
|
|
|
$
|
12,835
|
|
|
$
|
15,137,922
|
|
Acquisitions and originations
|
|
2,283,589
|
|
|
—
|
|
|
63,753
|
|
|
2,347,342
|
|
||||
Capitalized interest and deferred origination cost premium amortization
|
|
143,927
|
|
|
16,523
|
|
|
—
|
|
|
160,450
|
|
||||
Sales
|
|
(3,472
|
)
|
|
—
|
|
|
—
|
|
|
(3,472
|
)
|
||||
Loan consolidations to third parties
|
|
(264,170
|
)
|
|
(20,638
|
)
|
|
—
|
|
|
(284,808
|
)
|
||||
Repayments and other
|
|
(749,945
|
)
|
|
(39,165
|
)
|
|
(7,898
|
)
|
|
(797,008
|
)
|
||||
Ending balance
|
|
$
|
15,523,338
|
|
|
$
|
968,398
|
|
|
$
|
68,690
|
|
|
$
|
16,560,426
|
|
|
|
Six Months Ended June 30, 2016
|
||||||||||
(Dollars in thousands)
|
|
Private
Education
Loans
|
|
FFELP
Loans
|
|
Total
Portfolio
|
||||||
Beginning balance
|
|
$
|
10,515,505
|
|
|
$
|
1,115,086
|
|
|
$
|
11,630,591
|
|
Acquisitions and originations
|
|
2,234,556
|
|
|
—
|
|
|
2,234,556
|
|
|||
Capitalized interest and deferred origination cost premium amortization
|
|
100,797
|
|
|
18,716
|
|
|
119,513
|
|
|||
Sales
|
|
(5,736
|
)
|
|
—
|
|
|
(5,736
|
)
|
|||
Loan consolidations to third parties
|
|
(107,982
|
)
|
|
(23,050
|
)
|
|
(131,032
|
)
|
|||
Repayments and other
|
|
(553,847
|
)
|
|
(48,619
|
)
|
|
(602,466
|
)
|
|||
Ending balance
|
|
$
|
12,183,293
|
|
|
$
|
1,062,133
|
|
|
$
|
13,245,426
|
|
|
|
Three Months Ended
June 30, |
||||||||||||
(Dollars in thousands)
|
|
2017
|
|
%
|
|
2016
|
|
%
|
||||||
Smart Option - interest only
(1)
|
|
$
|
108,956
|
|
|
26
|
%
|
|
$
|
101,840
|
|
|
24
|
%
|
Smart Option - fixed pay
(1)
|
|
111,505
|
|
|
26
|
|
|
117,283
|
|
|
28
|
|
||
Smart Option - deferred
(1)
|
|
203,402
|
|
|
47
|
|
|
201,104
|
|
|
48
|
|
||
Smart Option - principal and interest
|
|
1,196
|
|
|
—
|
|
|
1,613
|
|
|
—
|
|
||
Parent Loan
|
|
5,472
|
|
|
1
|
|
|
1,510
|
|
|
—
|
|
||
Total Private Education Loan originations
|
|
$
|
430,531
|
|
|
100
|
%
|
|
$
|
423,350
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
||||||
Percentage of loans with a cosigner
|
|
77
|
%
|
|
|
|
78
|
%
|
|
|
||||
Average FICO at approval
(2)
|
|
745
|
|
|
|
|
744
|
|
|
|
|
|
Six Months Ended
June 30, |
||||||||||||
(Dollars in thousands)
|
|
2017
|
|
%
|
|
2016
|
|
%
|
||||||
Smart Option - interest only
(1)
|
|
$
|
590,110
|
|
|
26
|
%
|
|
$
|
564,772
|
|
|
25
|
%
|
Smart Option - fixed pay
(1)
|
|
638,578
|
|
|
28
|
|
|
683,146
|
|
|
31
|
|
||
Smart Option - deferred
(1)
|
|
1,014,258
|
|
|
45
|
|
|
975,499
|
|
|
44
|
|
||
Smart Option - principal and interest
|
|
3,697
|
|
|
—
|
|
|
2,328
|
|
|
—
|
|
||
Parent Loan
|
|
31,349
|
|
|
1
|
|
|
1,510
|
|
|
—
|
|
||
Total Private Education Loan originations
|
|
$
|
2,277,992
|
|
|
100
|
%
|
|
$
|
2,227,255
|
|
|
100
|
%
|
|
|
|
|
|
|
|
|
|
||||||
Percentage of loans with a cosigner
|
|
88
|
%
|
|
|
|
89
|
%
|
|
|
||||
Average FICO at approval
(2)
|
|
747
|
|
|
|
|
747
|
|
|
|
|
|
Three Months Ended June 30,
|
||||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||||
(Dollars in thousands)
|
|
Private
Education
Loans
|
|
FFELP
Loans
|
|
Total
Portfolio
|
|
Private
Education
Loans
|
|
FFELP
Loans
|
|
Total
Portfolio
|
||||||||||||
Beginning balance
|
|
$
|
185,103
|
|
|
$
|
1,637
|
|
|
$
|
186,740
|
|
|
$
|
122,620
|
|
|
$
|
3,629
|
|
|
$
|
126,249
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Charge-offs
|
|
(32,728
|
)
|
|
(259
|
)
|
|
(32,987
|
)
|
|
(23,903
|
)
|
|
(347
|
)
|
|
(24,250
|
)
|
||||||
Loan sales
(1)
|
|
(913
|
)
|
|
—
|
|
|
(913
|
)
|
|
(1,533
|
)
|
|
—
|
|
|
(1,533
|
)
|
||||||
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Recoveries
|
|
4,396
|
|
|
—
|
|
|
4,396
|
|
|
3,082
|
|
|
—
|
|
|
3,082
|
|
||||||
Provision for loan losses
|
|
49,166
|
|
|
228
|
|
|
49,394
|
|
|
42,362
|
|
|
(985
|
)
|
|
41,377
|
|
||||||
Ending balance
|
|
$
|
205,024
|
|
|
$
|
1,606
|
|
|
$
|
206,630
|
|
|
$
|
142,628
|
|
|
$
|
2,297
|
|
|
$
|
144,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Troubled debt restructurings
(2)
|
|
$
|
803,456
|
|
|
$
|
—
|
|
|
$
|
803,456
|
|
|
$
|
400,969
|
|
|
$
|
—
|
|
|
$
|
400,969
|
|
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||
|
|
2017
|
|
2016
|
||||||||||||||||||||
(Dollars in thousands)
|
|
Private
Education
Loans
|
|
FFELP
Loans
|
|
Total
Portfolio
|
|
Private
Education
Loans
|
|
FFELP
Loans
|
|
Total
Portfolio
|
||||||||||||
Beginning balance
|
|
$
|
182,472
|
|
|
$
|
2,171
|
|
|
$
|
184,643
|
|
|
$
|
108,816
|
|
|
$
|
3,691
|
|
|
$
|
112,507
|
|
Less:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Charge-offs
|
|
(58,955
|
)
|
|
(477
|
)
|
|
(59,432
|
)
|
|
(42,907
|
)
|
|
(730
|
)
|
|
(43,637
|
)
|
||||||
Loan sales
(1)
|
|
(2,134
|
)
|
|
—
|
|
|
(2,134
|
)
|
|
(3,607
|
)
|
|
—
|
|
|
(3,607
|
)
|
||||||
Plus:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Recoveries
|
|
7,655
|
|
|
—
|
|
|
7,655
|
|
|
4,125
|
|
|
—
|
|
|
4,125
|
|
||||||
Provision for loan losses
|
|
75,986
|
|
|
(88
|
)
|
|
75,898
|
|
|
76,201
|
|
|
(664
|
)
|
|
75,537
|
|
||||||
Ending balance
|
|
$
|
205,024
|
|
|
$
|
1,606
|
|
|
$
|
206,630
|
|
|
$
|
142,628
|
|
|
$
|
2,297
|
|
|
$
|
144,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Troubled debt restructurings
(2)
|
|
$
|
803,456
|
|
|
$
|
—
|
|
|
$
|
803,456
|
|
|
$
|
400,969
|
|
|
$
|
—
|
|
|
$
|
400,969
|
|
(1)
|
Represents fair value adjustments on loans sold.
|
(2)
|
Represents the unpaid principal balance of loans classified as troubled debt restructurings.
|
|
|
Private Education Loans
|
||||||||||||
|
|
June 30,
|
||||||||||||
|
|
2017
|
|
2016
|
||||||||||
(Dollars in thousands)
|
|
Balance
|
|
%
|
|
Balance
|
|
%
|
||||||
Loans in-school/grace/deferment
(1)
|
|
$
|
4,707,396
|
|
|
|
|
$
|
4,020,242
|
|
|
|
||
Loans in forbearance
(2)
|
|
356,956
|
|
|
|
|
241,433
|
|
|
|
||||
Loans in repayment and percentage of each status:
|
|
|
|
|
|
|
|
|
||||||
Loans current
|
|
10,385,289
|
|
|
97.8
|
%
|
|
7,860,994
|
|
|
97.9
|
%
|
||
Loans delinquent 31-60 days
(3)
|
|
132,108
|
|
|
1.3
|
|
|
87,990
|
|
|
1.1
|
|
||
Loans delinquent 61-90 days
(3)
|
|
67,371
|
|
|
0.6
|
|
|
56,377
|
|
|
0.7
|
|
||
Loans delinquent greater than 90 days
(3)
|
|
30,337
|
|
|
0.3
|
|
|
23,673
|
|
|
0.3
|
|
||
Total Private Education Loans in repayment
|
|
10,615,105
|
|
|
100.0
|
%
|
|
8,029,034
|
|
|
100.0
|
%
|
||
Total Private Education Loans, gross
|
|
15,679,457
|
|
|
|
|
12,290,709
|
|
|
|
||||
Private Education Loan deferred origination costs
|
|
48,905
|
|
|
|
|
35,212
|
|
|
|
||||
Total Private Education Loans
|
|
15,728,362
|
|
|
|
|
12,325,921
|
|
|
|
||||
Private Education Loan allowance for losses
|
|
(205,024
|
)
|
|
|
|
(142,628
|
)
|
|
|
||||
Total Private Education Loans, net
|
|
$
|
15,523,338
|
|
|
|
|
$
|
12,183,293
|
|
|
|
||
|
|
|
|
|
|
|
|
|
||||||
Percentage of Private Education Loans in repayment
|
|
|
|
67.7
|
%
|
|
|
|
65.3
|
%
|
||||
|
|
|
|
|
|
|
|
|
||||||
Delinquencies as a percentage of Private Education Loans in repayment
|
|
|
|
2.2
|
%
|
|
|
|
2.1
|
%
|
||||
|
|
|
|
|
|
|
|
|
||||||
Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance
|
|
|
|
3.3
|
%
|
|
|
|
2.9
|
%
|
(1)
|
Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on their loans (e.g., residency periods for medical students or a grace period for bar exam preparation).
|
(2)
|
Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures.
|
(3)
|
The period of delinquency is based on the number of days scheduled payments are contractually past due.
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(Dollars in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Allowance at beginning of period
|
|
$
|
185,103
|
|
|
$
|
122,620
|
|
|
$
|
182,472
|
|
|
$
|
108,816
|
|
Provision for Private Education Loan losses
|
|
49,166
|
|
|
42,362
|
|
|
75,986
|
|
|
76,201
|
|
||||
Net charge-offs:
|
|
|
|
|
|
|
|
|
||||||||
Charge-offs
|
|
(32,728
|
)
|
|
(23,903
|
)
|
|
(58,955
|
)
|
|
(42,907
|
)
|
||||
Recoveries
|
|
4,396
|
|
|
3,082
|
|
|
7,655
|
|
|
4,125
|
|
||||
Net charge-offs
|
|
(28,332
|
)
|
|
(20,821
|
)
|
|
(51,300
|
)
|
|
(38,782
|
)
|
||||
Loan sales
(1)
|
|
(913
|
)
|
|
(1,533
|
)
|
|
(2,134
|
)
|
|
(3,607
|
)
|
||||
Allowance at end of period
|
|
$
|
205,024
|
|
|
$
|
142,628
|
|
|
$
|
205,024
|
|
|
$
|
142,628
|
|
|
|
|
|
|
|
|
|
|
||||||||
Allowance as a percentage of ending total loans
|
|
1.31
|
%
|
|
1.16
|
%
|
|
1.31
|
%
|
|
1.16
|
%
|
||||
Allowance as a percentage of ending loans in repayment
(2)
|
|
1.93
|
%
|
|
1.78
|
%
|
|
1.93
|
%
|
|
1.78
|
%
|
||||
Allowance coverage of net charge-offs (annualized)
|
|
1.81
|
|
|
1.71
|
|
|
2.00
|
|
|
1.84
|
|
||||
Net charge-offs as a percentage of average loans in repayment (annualized)
(2)
|
|
1.08
|
%
|
|
1.05
|
%
|
|
0.99
|
%
|
|
1.01
|
%
|
||||
Delinquencies as a percentage of ending loans in repayment
(2)
|
|
2.16
|
%
|
|
2.09
|
%
|
|
2.16
|
%
|
|
2.09
|
%
|
||||
Loans in forbearance as a percentage of ending loans in repayment and forbearance
(2)
|
|
3.25
|
%
|
|
2.92
|
%
|
|
3.25
|
%
|
|
2.92
|
%
|
||||
Ending total loans, gross
|
|
$
|
15,679,457
|
|
|
$
|
12,290,709
|
|
|
$
|
15,679,457
|
|
|
$
|
12,290,709
|
|
Average loans in repayment
(2)
|
|
$
|
10,523,225
|
|
|
$
|
7,894,340
|
|
|
$
|
10,375,463
|
|
|
$
|
7,695,889
|
|
Ending loans in repayment
(2)
|
|
$
|
10,615,105
|
|
|
$
|
8,029,034
|
|
|
$
|
10,615,105
|
|
|
$
|
8,029,034
|
|
(1)
|
Represents fair value adjustments on loans sold.
|
(2)
|
Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period.
|
(Dollars in millions)
June 30, 2017
|
|
Private Education Loans Monthly Scheduled Payments Due
|
|
Not Yet in
Repayment
|
|
Total
|
||||||||||||||||||||||
|
0 to 12
|
|
13 to 24
|
|
25 to 36
|
|
37 to 48
|
|
More than 48
|
|
||||||||||||||||||
Loans in-school/grace/deferment
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,707
|
|
|
$
|
4,707
|
|
Loans in forbearance
|
|
208
|
|
|
59
|
|
|
44
|
|
|
25
|
|
|
21
|
|
|
—
|
|
|
357
|
|
|||||||
Loans in repayment - current
|
|
3,976
|
|
|
2,823
|
|
|
1,888
|
|
|
945
|
|
|
753
|
|
|
—
|
|
|
10,385
|
|
|||||||
Loans in repayment - delinquent 31-60 days
|
|
60
|
|
|
30
|
|
|
20
|
|
|
12
|
|
|
11
|
|
|
—
|
|
|
133
|
|
|||||||
Loans in repayment - delinquent 61-90 days
|
|
32
|
|
|
14
|
|
|
9
|
|
|
6
|
|
|
6
|
|
|
—
|
|
|
67
|
|
|||||||
Loans in repayment - delinquent greater than 90 days
|
|
16
|
|
|
6
|
|
|
4
|
|
|
2
|
|
|
2
|
|
|
—
|
|
|
30
|
|
|||||||
Total
|
|
$
|
4,292
|
|
|
$
|
2,932
|
|
|
$
|
1,965
|
|
|
$
|
990
|
|
|
$
|
793
|
|
|
$
|
4,707
|
|
|
15,679
|
|
|
Unamortized discount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
49
|
|
|||||||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(205
|
)
|
|||||||||||||
Total Private Education Loans, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
15,523
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans in forbearance as a percentage of total Private Education Loans in repayment and forbearance
|
|
1.89
|
%
|
|
0.54
|
%
|
|
0.40
|
%
|
|
0.23
|
%
|
|
0.19
|
%
|
|
—
|
%
|
|
3.25
|
%
|
(Dollars in millions)
June 30, 2016 |
|
Private Education Loans Monthly Scheduled Payments Due
|
|
Not Yet in
Repayment
|
|
Total
|
||||||||||||||||||||||
|
0 to 12
|
|
13 to 24
|
|
25 to 36
|
|
37 to 48
|
|
More than 48
|
|
||||||||||||||||||
Loans in-school/grace/deferment
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
4,020
|
|
|
$
|
4,020
|
|
Loans in forbearance
|
|
141
|
|
|
41
|
|
|
28
|
|
|
18
|
|
|
13
|
|
|
—
|
|
|
241
|
|
|||||||
Loans in repayment - current
|
|
3,525
|
|
|
2,223
|
|
|
1,148
|
|
|
537
|
|
|
429
|
|
|
—
|
|
|
7,862
|
|
|||||||
Loans in repayment - delinquent 31-60 days
|
|
43
|
|
|
20
|
|
|
12
|
|
|
7
|
|
|
7
|
|
|
—
|
|
|
89
|
|
|||||||
Loans in repayment - delinquent 61-90 days
|
|
30
|
|
|
11
|
|
|
7
|
|
|
4
|
|
|
4
|
|
|
—
|
|
|
56
|
|
|||||||
Loans in repayment - delinquent greater than 90 days
|
|
13
|
|
|
4
|
|
|
3
|
|
|
2
|
|
|
1
|
|
|
—
|
|
|
23
|
|
|||||||
Total
|
|
$
|
3,752
|
|
|
$
|
2,299
|
|
|
$
|
1,198
|
|
|
$
|
568
|
|
|
$
|
454
|
|
|
$
|
4,020
|
|
|
12,291
|
|
|
Unamortized discount
|
|
|
|
|
|
|
|
|
|
|
|
|
|
35
|
|
|||||||||||||
Allowance for loan losses
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(143
|
)
|
|||||||||||||
Total Private Education Loans, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$
|
12,183
|
|
||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Loans in forbearance as a percentage of total Private Education Loans in repayment and forbearance
|
|
1.70
|
%
|
|
0.50
|
%
|
|
0.34
|
%
|
|
0.22
|
%
|
|
0.16
|
%
|
|
—
|
%
|
|
2.92
|
%
|
|
|
June 30, 2017
|
||||||||||||||||||
(Dollars in thousands)
|
|
Signature and
Other
|
|
Parent Loan
|
|
Smart Option
|
|
Career
Training
|
|
Total
|
||||||||||
$ in repayment
(1)
|
|
$
|
202,222
|
|
|
$
|
55,313
|
|
|
$
|
10,344,465
|
|
|
$
|
13,105
|
|
|
$
|
10,615,105
|
|
$ in total
|
|
$
|
357,404
|
|
|
$
|
55,868
|
|
|
$
|
15,252,703
|
|
|
$
|
13,482
|
|
|
$
|
15,679,457
|
|
|
|
December 31, 2016
|
||||||||||||||||||
(Dollars in thousands)
|
|
Signature and
Other
|
|
Parent Loan
|
|
Smart Option
|
|
Career
Training
|
|
Total
|
||||||||||
$ in repayment
(1)
|
|
$
|
164,725
|
|
|
$
|
29,212
|
|
|
$
|
9,501,040
|
|
|
$
|
14,781
|
|
|
$
|
9,709,758
|
|
$ in total
|
|
$
|
334,512
|
|
|
$
|
29,430
|
|
|
$
|
13,872,378
|
|
|
$
|
15,355
|
|
|
$
|
14,251,675
|
|
(1)
|
Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period.
|
|
|
Private Education Loan
|
||||||||||
|
|
Accrued Interest Receivable
|
||||||||||
(Dollars in thousands)
|
|
Total Interest Receivable
|
|
Greater Than
90 Days
Past Due
|
|
Allowance for
Uncollectible
Interest
|
||||||
June 30, 2017
|
|
$
|
913,080
|
|
|
$
|
1,107
|
|
|
$
|
4,522
|
|
December 31, 2016
|
|
$
|
739,847
|
|
|
$
|
845
|
|
|
$
|
2,898
|
|
June 30, 2016
|
|
$
|
695,680
|
|
|
$
|
895
|
|
|
$
|
3,241
|
|
(Dollars in thousands)
|
|
June 30, 2017
|
|
December 31, 2016
|
||||
Sources of primary liquidity:
|
|
|
|
|
||||
Unrestricted cash and liquid investments:
|
|
|
|
|
||||
Holding Company and other non-bank subsidiaries
|
|
$
|
25,408
|
|
|
$
|
18,133
|
|
Sallie Mae Bank
(1)
|
|
1,292,760
|
|
|
1,900,660
|
|
||
Available-for-sale investments
|
|
229,479
|
|
|
208,603
|
|
||
Total unrestricted cash and liquid investments
|
|
$
|
1,547,647
|
|
|
$
|
2,127,396
|
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
(Dollars in thousands)
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Sources of primary liquidity:
|
|
|
|
|
|
|
|
|
||||||||
Unrestricted cash and liquid investments:
|
|
|
|
|
|
|
|
|
||||||||
Holding Company and other non-bank subsidiaries
|
|
$
|
25,411
|
|
|
$
|
22,232
|
|
|
$
|
25,183
|
|
|
$
|
17,961
|
|
Sallie Mae Bank
(1)
|
|
1,122,463
|
|
|
925,132
|
|
|
1,187,995
|
|
|
1,100,405
|
|
||||
Available-for-sale investments
|
|
221,935
|
|
|
204,110
|
|
|
216,507
|
|
|
201,200
|
|
||||
Total unrestricted cash and liquid investments
|
|
$
|
1,369,809
|
|
|
$
|
1,151,474
|
|
|
$
|
1,429,685
|
|
|
$
|
1,319,566
|
|
|
|
June 30,
|
|
December 31,
|
||||
(Dollars in thousands)
|
|
2017
|
|
2016
|
||||
Deposits - interest bearing
|
|
$
|
13,793,200
|
|
|
$
|
13,434,990
|
|
Deposits - non-interest bearing
|
|
1,615
|
|
|
677
|
|
||
Total deposits
|
|
$
|
13,794,815
|
|
|
$
|
13,435,667
|
|
|
|
June 30, 2017
|
|
December 31, 2016
|
|
||||||||||
(Dollars in thousands)
|
|
Amount
|
|
Qtr.-End
Weighted
Average
Stated Rate
(1)
|
|
Amount
|
|
Year-End
Weighted
Average
Stated Rate
(1)
|
|
||||||
|
|
|
|
|
|
|
|
|
|
||||||
Money market
|
|
$
|
7,167,473
|
|
|
1.55
|
%
|
|
$
|
7,129,404
|
|
|
1.22
|
%
|
|
Savings
|
|
847,714
|
|
|
0.99
|
|
|
834,521
|
|
|
0.84
|
|
|
||
Certificates of deposit
|
|
5,778,013
|
|
|
1.73
|
|
|
5,471,065
|
|
|
1.41
|
|
|
||
Deposits - interest bearing
|
|
$
|
13,793,200
|
|
|
|
|
$
|
13,434,990
|
|
|
|
|
|
(Dollars in thousands)
|
|
SLM Corporation
and Sallie Mae Bank
Contracts
|
||
Total exposure, net of collateral
|
|
$
|
38,317
|
|
Exposure to counterparties with credit ratings, net of collateral
|
|
$
|
22,883
|
|
Percent of exposure to counterparties with credit ratings below S&P AA- or Moody’s Aa3
|
|
2.60
|
%
|
|
Percent of exposure to counterparties with credit ratings below S&P A- or Moody’s Baa
|
|
—
|
%
|
|
|
Actual
|
|
“Well Capitalized” Regulatory Requirements
|
|||||||||
(Dollars in thousands)
|
|
Amount
|
Ratio
|
|
Amount
|
|
Ratio
|
||||||
As of June 30, 2017
|
|
|
|
|
|
|
|
||||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets)
|
|
$
|
2,199,979
|
|
12.5
|
%
|
|
$
|
1,139,897
|
|
>
|
6.5
|
%
|
Tier 1 Capital (to Risk-Weighted Assets)
|
|
$
|
2,199,979
|
|
12.5
|
%
|
|
$
|
1,402,950
|
|
>
|
8.0
|
%
|
Total Capital (to Risk-Weighted Assets)
|
|
$
|
2,407,976
|
|
13.7
|
%
|
|
$
|
1,753,687
|
|
>
|
10.0
|
%
|
Tier 1 Capital (to Average Assets)
|
|
$
|
2,199,979
|
|
11.5
|
%
|
|
$
|
955,156
|
|
>
|
5.0
|
%
|
|
|
|
|
|
|
|
|
||||||
As of December 31, 2016:
|
|
|
|
|
|
|
|
||||||
Common Equity Tier 1 Capital (to Risk-Weighted Assets)
|
|
$
|
2,011,583
|
|
12.6
|
%
|
|
$
|
1,038,638
|
|
>
|
6.5
|
%
|
Tier 1 Capital (to Risk-Weighted Assets)
|
|
$
|
2,011,583
|
|
12.6
|
%
|
|
$
|
1,278,323
|
|
>
|
8.0
|
%
|
Total Capital (to Risk-Weighted Assets)
|
|
$
|
2,197,997
|
|
13.8
|
%
|
|
$
|
1,597,904
|
|
>
|
10.0
|
%
|
Tier 1 Capital (to Average Assets)
|
|
$
|
2,011,583
|
|
11.1
|
%
|
|
$
|
907,565
|
|
>
|
5.0
|
%
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
|
Short-Term
|
|
Long-Term
|
|
Total
|
|
Short-Term
|
|
Long-Term
|
|
Total
|
||||||||||||
Unsecured borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Unsecured debt
|
|
$
|
—
|
|
|
$
|
196,740
|
|
|
$
|
196,740
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
Total unsecured borrowings
|
|
—
|
|
|
196,740
|
|
|
196,740
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Secured borrowings:
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Private Education Loan term securitizations
|
|
$
|
—
|
|
|
$
|
2,675,491
|
|
|
$
|
2,675,491
|
|
|
$
|
—
|
|
|
$
|
2,167,979
|
|
|
$
|
2,167,979
|
|
ABCP Facility
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Total secured borrowings
|
|
—
|
|
|
2,675,491
|
|
|
2,675,491
|
|
|
—
|
|
|
2,167,979
|
|
|
2,167,979
|
|
||||||
Total
|
|
$
|
—
|
|
|
$
|
2,872,231
|
|
|
$
|
2,872,231
|
|
|
$
|
—
|
|
|
$
|
2,167,979
|
|
|
$
|
2,167,979
|
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
|
June 30,
|
||||||||
|
2017
|
|
2016
|
||||||
|
+300
Basis Points
|
|
+100
Basis Points
|
|
-100
Basis Points
|
|
+300
Basis Points
|
|
+100
Basis Points
|
|
|
|
|
|
|
|
|
|
|
EAR - Shock
|
+8.2%
|
|
+2.7%
|
|
-2.6%
|
|
+6.9%
|
|
+2.2%
|
EAR - Ramp
|
+5.1%
|
|
+2.4%
|
|
-1.7%
|
|
+5.8%
|
|
+2.1%
|
EVE
|
+1.8%
|
|
+0.5%
|
|
-0.5%
|
|
-0.2%
|
|
-0.2%
|
(Dollars in millions)
Index
|
|
Frequency of
Variable
Resets
|
|
Assets
|
|
Funding
(1)
|
|
Funding
Gap
|
||||||
3-month Treasury bill
|
|
weekly
|
|
$
|
132.5
|
|
|
$
|
—
|
|
|
$
|
132.5
|
|
Prime
|
|
monthly
|
|
5.5
|
|
|
—
|
|
|
5.5
|
|
|||
3-month LIBOR
|
|
quarterly
|
|
—
|
|
|
399.2
|
|
|
(399.2
|
)
|
|||
1-month LIBOR
|
|
monthly
|
|
12,744.1
|
|
|
8,917.8
|
|
|
3,826.3
|
|
|||
1-month LIBOR
|
|
daily
|
|
834.7
|
|
|
—
|
|
|
834.7
|
|
|||
Non-Discrete reset
(2)
|
|
daily/weekly
|
|
1,380.7
|
|
|
2,864.9
|
|
|
(1,484.2
|
)
|
|||
Fixed Rate
(3)
|
|
|
|
4,415.8
|
|
|
7,331.4
|
|
|
(2,915.6
|
)
|
|||
Total
|
|
|
|
$
|
19,513.3
|
|
|
$
|
19,513.3
|
|
|
$
|
—
|
|
(1)
|
Funding (by index) includes the impact of all derivatives that qualify as effective hedges.
|
(2)
|
Assets include restricted and unrestricted cash equivalents and other overnight type instruments. Funding includes liquid retail deposits and the obligation to return cash collateral held related to derivatives exposures.
|
(3)
|
Assets include receivables and other assets (including premiums and reserves). Funding includes unswapped time deposits, liquid MMDAs swapped to fixed rates and stockholders' equity.
|
|
Weighted
|
|
|
Average
|
|
(Averages in Years)
|
Life
|
|
Earning assets
|
|
|
Education loans
|
5.60
|
|
Personal loans
|
1.48
|
|
Cash and investments
|
0.98
|
|
Total earning assets
|
5.17
|
|
|
|
|
Deposits
|
|
|
Short-term deposits
|
0.05
|
|
Long-term deposits
|
2.29
|
|
Total deposits
|
0.57
|
|
|
|
|
Borrowings
|
|
|
Short-term borrowings
|
—
|
|
Long-term borrowings
|
4.44
|
|
Total borrowings
|
4.44
|
|
Item 4.
|
Controls and Procedures
|
Item 1.
|
Legal Proceedings
|
(In thousands, except per share data)
|
Total Number
of Shares
Purchased
(1)
|
|
Average Price
Paid per
Share
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
(2)
|
|
Approximate Dollar
Value
of Shares That
May Yet Be
Purchased Under
Publicly Announced
Plans or
Programs
(2)
|
|||||
Period:
|
|
|
|
|
|
|
|
|||||
April 1 - April 30, 2017
|
809
|
|
|
$
|
12.50
|
|
|
—
|
|
|
—
|
|
May 1 - May 31, 2017
|
90
|
|
|
$
|
12.76
|
|
|
—
|
|
|
—
|
|
June 1 - June 30, 2017
|
82
|
|
|
$
|
10.94
|
|
|
—
|
|
|
—
|
|
Total second-quarter 2017
|
981
|
|
|
$
|
12.39
|
|
|
—
|
|
|
|
(1)
|
All shares purchased are the shares of our common stock tendered to us to satisfy the exercise price in connection with cashless exercises of stock options, and tax withholding obligations in connection with exercises of stock options and vesting of restricted stock and restricted stock units.
|
(2)
|
At the present time, the Company does not have a publicly announced share repurchase plan or program.
|
Item 3.
|
Defaults Upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
10.1†
|
Form of SLM Corporation 2012 Omnibus Incentive Plan, Independent Director Restricted Stock Agreement - 2017.
|
|
|
12.1
|
Computation of Ratio of Earnings to Fixed Charges and Preferred Stock Dividends.
|
|
|
31.1
|
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
31.2
|
Certification Pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
|
|
32.1
|
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
32.2
|
Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
|
|
101.INS
|
XBRL Instance Document.
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document.
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document.
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
†
|
Management Contract or Compensatory Plan or Arrangement
|
|
|
||
SLM CORPORATION
(Registrant)
|
|||
|
|
||
By:
|
/
S
/ STEVEN J. MCGARRY
|
||
|
Steven J. McGarry
Executive Vice President and Chief Financial Officer
(Principal Financial Officer)
|
|
|
|
Years Ended December 31,
|
|
Six Months Ended June 30,
|
||||||||||||||||||||||||
|
|
2012
|
|
2013
|
|
2014
|
|
2015
|
|
2016
|
|
2016
|
|
2017
|
||||||||||||||
Income before income tax expense
|
|
$
|
341,869
|
|
|
$
|
416,527
|
|
|
$
|
333,752
|
|
|
$
|
439,064
|
|
|
$
|
414,436
|
|
|
$
|
196,550
|
|
|
$
|
261,284
|
|
Add: Fixed charges
|
|
84,709
|
|
|
91,182
|
|
|
98,404
|
|
|
132,048
|
|
|
189,717
|
|
|
83,864
|
|
|
135,737
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total earnings
|
|
$
|
426,578
|
|
|
$
|
507,709
|
|
|
$
|
432,156
|
|
|
$
|
571,112
|
|
|
$
|
604,153
|
|
|
$
|
280,414
|
|
|
$
|
397,021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Interest expense
|
|
$
|
82,912
|
|
|
$
|
89,085
|
|
|
$
|
95,815
|
|
|
$
|
128,619
|
|
|
$
|
185,908
|
|
|
$
|
82,067
|
|
|
$
|
133,614
|
|
Rental expense, net of income
|
|
1,797
|
|
|
2,097
|
|
|
2,589
|
|
|
3,429
|
|
|
3,809
|
|
|
1,797
|
|
|
2,123
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Total fixed charges
|
|
84,709
|
|
|
$
|
91,182
|
|
|
98,404
|
|
|
132,048
|
|
|
189,717
|
|
|
83,864
|
|
|
135,737
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Preferred stock dividends
|
|
—
|
|
|
—
|
|
|
12,933
|
|
|
19,595
|
|
|
21,204
|
|
|
10,382
|
|
|
9,549
|
|
|||||||
Total fixed charges and preferred stock dividends
|
|
$
|
84,709
|
|
|
$
|
91,182
|
|
|
$
|
111,337
|
|
|
$
|
151,643
|
|
|
$
|
210,921
|
|
|
$
|
94,246
|
|
|
$
|
145,286
|
|
Ratio of earnings to fixed charges
(1)
|
|
5.04
|
|
|
5.57
|
|
|
4.39
|
|
|
4.33
|
|
|
3.18
|
|
|
3.34
|
|
|
2.92
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||
Ratio of earnings to fixed charges and preferred stock dividends
(1)
|
|
5.04
|
|
|
5.57
|
|
|
3.88
|
|
|
3.77
|
|
|
2.86
|
|
|
2.98
|
|
|
2.73
|
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
For purposes of computing these ratios, earnings represent income before income tax expense plus fixed charges. Fixed charges represent interest expensed and capitalized plus one-third (the proportion deemed representative of the interest factor) of rents, net of income from subleases.
|
1.
|
I have reviewed this quarterly report on Form 10-Q of SLM Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ RAYMOND J. QUINLAN
|
Raymond J. Quinlan
|
Executive Chairman and Chief Executive Officer
|
(Principal Executive Officer)
|
July 19, 2017
|
1.
|
I have reviewed this quarterly report on Form 10-Q of SLM Corporation;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
/s/ STEVEN J. MCGARRY
|
Steven J. McGarry
|
Executive Vice President and Chief Financial Officer
|
(Principal Financial Officer)
|
July 19, 2017
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|
/s/ RAYMOND J. QUINLAN
|
Raymond J. Quinlan
|
Executive Chairman and Chief Executive Officer
|
(Principal Executive Officer)
|
July 19, 2017
|
(1)
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2)
|
The information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.
|
/s/ STEVEN J. MCGARRY
|
Steven J. McGarry
|
Executive Vice President and Chief Financial Officer
|
(Principal Financial Officer)
|
July 19, 2017
|