Exhibit 12.1
SLM CORPORATION
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
(Dollars in thousands)
| Year Ended December 31, | Six Months Ended June 30, | |||||||||||||||||||||||
| 2013 | 2014 | 2015 | 2016 | 2017 | 2018 | |||||||||||||||||||
| Income before income tax expense | $ | 416,527 | $ | 333,752 | $ | 439,064 | $ | 414,436 | $ | 491,465 | $ | 317,157 | ||||||||||||
| Add: Fixed charges | 91,182 | 98,404 | 132,048 | 189,717 | 312,396 | 228,409 | ||||||||||||||||||
| Total earnings | $ | 507,709 | $ | 432,156 | $ | 571,112 | $ | 604,153 | $ | 803,861 | $ | 545,566 | ||||||||||||
| Interest expense | $ | 89,085 | $ | 95,815 | $ | 128,619 | $ | 185,908 | $ | 308,082 | $ | 225,978 | ||||||||||||
| Rental expense, net of income | 2,097 | 2,589 | 3,429 | 3,809 | 4,314 | 2,431 | ||||||||||||||||||
| Total fixed charges | 91,182 | 98,404 | 132,048 | 189,717 | 312,396 | 228,409 | ||||||||||||||||||
| Preferred stock dividends | — | 12,933 | 19,595 | 21,204 | 15,714 | 7,317 | ||||||||||||||||||
| Total fixed charges and preferred stock dividends | $ | 91,182 | $ | 111,337 | $ | 151,643 | $ | 210,921 | $ | 328,110 | $ | 235,726 | ||||||||||||
| Ratio of earnings to fixed charges(1) | 5.57 | 4.39 | 4.33 | 3.18 | 2.57 | 2.39 | ||||||||||||||||||
| Ratio of earnings to fixed charges and preferred stock dividends(1) | 5.57 | 3.88 | 3.77 | 2.86 | 2.45 | 2.31 | ||||||||||||||||||
| (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. |
