Document_and_Entity_Informatio
Document and Entity Information (USD $) | 12 Months Ended | ||
In Billions, except Share data, unless otherwise specified | Dec. 31, 2014 | Jan. 31, 2015 | Jun. 30, 2014 |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | FALSE | ||
Document Period End Date | 31-Dec-14 | ||
Document Fiscal Year Focus | 2014 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | SLM | ||
Entity Registrant Name | SLM CORPORATION | ||
Entity Central Index Key | 1032033 | ||
Current Fiscal Year End Date | -19 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 423,476,360 | ||
Entity Public Float | $3.50 |
CONSOLIDATED_BALANCE_SHEETS
CONSOLIDATED BALANCE SHEETS (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Cash and cash equivalents | $2,359,780 | $2,182,865 |
Available-for-sale investments at fair value (cost of $167,740 and $106,977, respectively) | 168,934 | 102,105 |
Loans held for investment (net of allowance for losses of $83,842 and $68,081, respectively) | 9,509,786 | 7,931,377 |
Other interest-earning assets | 77,283 | 4,355 |
Accrued interest receivable | 469,697 | 356,283 |
Premises and equipment, net | 78,470 | 74,188 |
Acquired intangible assets, net | 3,225 | 6,515 |
Tax indemnification receivable | 240,311 | 0 |
Other assets | 64,757 | 48,976 |
Total assets | 12,972,243 | 10,706,664 |
Liabilities | ||
Deposits | 10,540,555 | 9,001,550 |
Income taxes payable, net | 191,499 | 162,205 |
Upromise related liabilities | 293,004 | 307,518 |
Other liabilities | 117,227 | 69,248 |
Total liabilities | 11,142,285 | 9,540,521 |
Commitments and contingencies | ||
Preferred stock, par value $0.20 per share, 20 million shares authorized | ||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 425 million and 0 shares, issued, respectively | 84,961 | 0 |
Additional paid-in capital | 1,090,511 | 0 |
Accumulated other comprehensive loss (net of tax benefit $(7,186) and $(1,849), respectively) | -11,393 | -3,024 |
Retained earnings | 113,066 | 0 |
Total SLM Corporation's stockholders' equity before treasury stock | 1,842,145 | 1,161,471 |
Less: Common stock held in treasury at cost: 1 million and 0 shares, respectively | -12,187 | 0 |
Total SLM Corporation stockholders' equity | 1,829,958 | 1,161,471 |
Noncontrolling interest | 0 | 4,672 |
Total equity | 1,829,958 | 1,166,143 |
Total liabilities and equity | 12,972,243 | 10,706,664 |
Series A Preferred Stock | ||
Preferred stock, par value $0.20 per share, 20 million shares authorized | ||
Preferred stock value outstanding | 165,000 | 0 |
Series B Preferred Stock | ||
Preferred stock, par value $0.20 per share, 20 million shares authorized | ||
Preferred stock value outstanding | 400,000 | 0 |
Navient's Subsidiary Investment | ||
Preferred stock, par value $0.20 per share, 20 million shares authorized | ||
Additional paid-in capital | $0 | $1,164,495 |
CONSOLIDATED_BALANCE_SHEETS_Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, except Share data, unless otherwise specified | ||||
Investments at cost | $167,740 | $106,977 | ||
Allowance for losses for loans held for investment | 83,842 | 68,081 | 69,189 | 69,492 |
Preferred stock, stated value | $0.20 | $0 | ||
Preferred stock, shares authorized | 20,000,000 | 0 | ||
Common stock, par value | $0.20 | $0 | ||
Common stock, shares authorized | 1,125,000,000 | 0 | ||
Common stock, shares issued | 425,000,000 | 0 | ||
Accumulated other comprehensive loss (net of tax benefit $(7,186) and $(1,849), respectively) | ($7,186) | ($1,849) | ||
Common stock held in treasury | 1,000,000 | 0 | ||
Series A Preferred Stock | ||||
Preferred stock, stated value | $50 | $0 | ||
Preferred stock, shares issued | 3,300,000 | 0 | ||
Series B Preferred Stock | ||||
Preferred stock, stated value | $100 | $0 | ||
Preferred stock, shares issued | 4,000,000 | 0 |
CONSOLIDATED_STATEMENTS_OF_INC
CONSOLIDATED STATEMENTS OF INCOME (USD $) | 12 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Interest income: | |||
Loans | $660,792 | $527,257 | $462,642 |
Investments | 8,913 | 20,090 | 26,340 |
Cash and cash equivalents | 4,589 | 3,853 | 2,299 |
Total interest income | 674,294 | 551,200 | 491,281 |
Interest expense: | |||
Deposits | 95,774 | 88,019 | 82,173 |
Other interest expense | 41 | 1,066 | 739 |
Total interest expense | 95,815 | 89,085 | 82,912 |
Net interest income | 578,479 | 462,115 | 408,369 |
Less: provisions for loan losses | 85,529 | 69,339 | 66,116 |
Net interest income after provisions for loan losses | 492,950 | 392,776 | 342,253 |
Noninterest income: | |||
Gains on sales of loans, net | 121,359 | 196,593 | 235,202 |
Gains on sales of securities | 0 | 63,813 | 129 |
(Losses) gains on derivatives and hedging activities, net | -3,996 | 640 | -5,461 |
Other | 39,921 | 37,222 | 36,641 |
Total noninterest income | 157,284 | 298,268 | 266,511 |
Expenses: | |||
Compensation and benefits | 129,709 | 106,799 | 109,575 |
Other operating expenses | 145,172 | 163,675 | 144,195 |
Total operating expenses | 274,881 | 270,474 | 253,770 |
Acquired intangible asset impairment and amortization expense | 3,290 | 3,317 | 13,125 |
Restructuring and other reorganization expenses | 38,311 | 726 | 0 |
Total expenses | 316,482 | 274,517 | 266,895 |
Income before income tax expense | 333,752 | 416,527 | 341,869 |
Income tax expense | 139,967 | 158,934 | 126,143 |
Net income | 193,785 | 257,593 | 215,726 |
Less: net loss attributable to noncontrolling interest | -434 | -1,352 | -1,894 |
Net income attributable to SLM Corporation | 194,219 | 258,945 | 217,620 |
Preferred stock dividends | 12,933 | 0 | 0 |
Net income attributable to SLM Corporation common stock | $181,286 | $258,945 | $217,620 |
Basic earnings per common share attributable to SLM Corporation (in dollars per share) | $0.43 | $0.59 | $0.46 |
Average common shares outstanding (in shares) | 423,970 | 440,108 | 476,118 |
Diluted earnings per common share attributable to SLM Corporation (in dollars per share) | $0.42 | $0.58 | $0.45 |
Average common and common equivalent shares outstanding (in shares) | 432,269 | 448,549 | 482,892 |
CONSOLIDATED_STATEMENTS_OF_COM
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Statement of Comprehensive Income [Abstract] | |||
Net income | $193,785 | $257,593 | $215,726 |
Unrealized gains (losses) on investments: | |||
Unrealized gain on investments | 6,066 | 35,802 | 22,264 |
Reclassification adjustments for (gain) on sale of available-for-sale securities included in other income | 0 | -63,813 | -129 |
Total unrealized gains (losses) on investments | 6,066 | -28,011 | 22,135 |
Unrealized losses on cash flow hedges | -19,772 | 0 | 0 |
Total unrealized gains (losses) | -13,706 | -28,011 | 22,135 |
Income tax benefit (expense) | 5,337 | 10,639 | -8,409 |
Other comprehensive income (loss), net of tax benefit (expense) | -8,369 | -17,372 | 13,726 |
Comprehensive income | 185,416 | 240,221 | 229,452 |
Less: comprehensive loss attributable to noncontrolling interest | -434 | -1,352 | -1,894 |
Total comprehensive income attributable to SLM Corporation | $185,850 | $241,573 | $231,346 |
CONSOLIDATED_STATEMENTS_OF_CHA
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (USD $) | Total | Preferred Stock [Member] | Treasury Stock [Member] | Common Stock [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Total SLM Corporation Equity [Member] | Non-controlling Interest [Member] | Series A Preferred Stock | Series A Preferred Stock | Series A Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | Series B Preferred Stock | ||
In Thousands, except Share data, unless otherwise specified | Navient's Subsidiary Investment | Retained Earnings [Member] | Total SLM Corporation Equity [Member] | Retained Earnings [Member] | Total SLM Corporation Equity [Member] | |||||||||||||
Beginning Balance at Dec. 31, 2011 | $1,243,858 | $622 | $1,235,318 | $1,235,940 | $7,918 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income (loss) | 215,726 | 0 | 217,620 | 217,620 | -1,894 | |||||||||||||
Other comprehensive loss, net of tax | 13,726 | 13,726 | 0 | 13,726 | 0 | |||||||||||||
Comprehensive income | 229,452 | 231,346 | -1,894 | |||||||||||||||
Net transfers from affiliate | -384,010 | 0 | -384,010 | -384,010 | 0 | |||||||||||||
Cash dividends: | ||||||||||||||||||
Issuance of common shares (in shares) | [1] | 6,432,643 | ||||||||||||||||
Ending Balance at Dec. 31, 2012 | 1,089,300 | 14,348 | 1,068,928 | 1,083,276 | 6,024 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income (loss) | 257,593 | 0 | 258,945 | 258,945 | -1,352 | |||||||||||||
Other comprehensive loss, net of tax | -17,372 | -17,372 | 0 | -17,372 | 0 | |||||||||||||
Comprehensive income | 240,221 | 241,573 | -1,352 | |||||||||||||||
Net transfers from affiliate | -163,378 | 0 | -163,378 | -163,378 | 0 | |||||||||||||
Cash dividends: | ||||||||||||||||||
Issuance of common shares (in shares) | [1] | 9,702,976 | ||||||||||||||||
Ending Balance at Dec. 31, 2013 | 1,166,143 | 0 | 0 | 0 | -3,024 | 0 | 1,164,495 | 0 | 1,161,471 | 4,672 | ||||||||
Beginning balance (in shares) at Dec. 31, 2013 | 0 | 0 | ||||||||||||||||
Beginning balance, shares issued (in shares) at Dec. 31, 2013 | 0 | 0 | ||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||
Net income (loss) | 193,785 | 68,173 | 126,046 | 194,219 | -434 | |||||||||||||
Other comprehensive loss, net of tax | -8,369 | -8,369 | -8,369 | |||||||||||||||
Comprehensive income | 185,416 | 185,850 | -434 | |||||||||||||||
Net transfers from affiliate | 479,409 | 479,409 | 479,409 | |||||||||||||||
Separation adjustments related to Spin-Off of Navient Corporation (in shares) | 7,300,000 | 0 | 422,790,320 | |||||||||||||||
Separation adjustments related to Spin-Off of Navient Corporation | 0 | 565,000 | 84,558 | 1,062,519 | -1,712,077 | |||||||||||||
Sale of non-controlling interest | -4,238 | -4,238 | ||||||||||||||||
Cash dividends: | ||||||||||||||||||
Preferred stock | -7,667 | -7,667 | -7,667 | -5,266 | -5,266 | -5,266 | ||||||||||||
Dividend equivalent units related to employee stock-based compensation plans | 0 | 47 | -47 | |||||||||||||||
Issuance of common shares (in shares) | 2,013,805 | [1] | 2,013,805 | |||||||||||||||
Issuance of common shares | 8,683 | 403 | 8,280 | 8,683 | ||||||||||||||
Tax benefit related to employee stock-based compensation | 3,271 | 3,271 | 3,271 | |||||||||||||||
Stock-based compensation expense | 16,394 | 16,394 | 16,394 | |||||||||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | -1,365,277 | -1,365,277 | ||||||||||||||||
Shares repurchased related to employee stock-based compensation plans | -12,187 | -12,187 | -12,187 | |||||||||||||||
Ending Balance at Dec. 31, 2014 | $1,829,958 | $565,000 | ($12,187) | $84,961 | ($11,393) | $1,090,511 | $0 | $113,066 | $1,829,958 | $0 | ||||||||
Ending balance, shares issued (in shares) at Dec. 31, 2014 | 7,300,000 | 424,804,125 | ||||||||||||||||
Ending balance (in shares) at Dec. 31, 2014 | -1,365,277 | 423,438,848 | ||||||||||||||||
[1] | Common shares issued under our various compensation and benefit plans. |
CONSOLIDATED_STATEMENTS_OF_CHA1
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parentheticals) (USD $) | 12 Months Ended |
Dec. 31, 2014 | |
Series A Preferred Stock | |
Preferred stock dividend rate (usd per share) | $2.61 |
Series B Preferred Stock | |
Preferred stock dividend rate (usd per share) | $1.47 |
CONSOLIDATED_STATEMENTS_OF_CAS
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Operating activities | |||
Net income (loss) | $193,785 | $257,593 | $215,726 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Provisions for loan losses | 85,529 | 69,339 | 66,116 |
Valuation allowance on loans held for sale | 0 | 0 | 275 |
Deferred tax (benefit) provision | -40,888 | 14,567 | -11,015 |
Amortization of FDIC fees | 0 | 1,046 | 3,897 |
Amortization of brokered deposit placement fee | 10,164 | 9,754 | 8,416 |
Amortization of deferred loan origination costs and fees, net | 1,995 | 2,199 | 5,337 |
Net accretion of discount on investments | 633 | -7,187 | -10,058 |
Depreciation of premises and equipment | 6,099 | 5,059 | 6,837 |
Amortization and impairment of acquired intangibles | 3,290 | 3,317 | 13,125 |
Stock-based compensation expense | 24,971 | 15,681 | 19,102 |
Interest rate swap | 1,214 | -324 | 5,411 |
Gains on sales of loans held for sale | 0 | 0 | -167 |
Gains on sale of securities | 0 | -63,813 | -129 |
Gains on sales of loans, net | -121,359 | -196,593 | -235,202 |
Changes in operating assets and liabilities: | |||
Net decrease in loans held for sale | 6,519 | 3,628 | 61,275 |
Origination of loans held for sale | -6,519 | -3,628 | -61,275 |
Increase in accrued interest receivable | -331,014 | -281,856 | -168,146 |
(Increase) decrease in other interest-earning assets | -72,928 | 97 | 158 |
Decrease in tax indemnification receivable | 38,820 | 0 | 0 |
Increase in other assets | -24,959 | -2,357 | -7,008 |
(Decrease) increase in income tax payable | -221,222 | 56,784 | 88,803 |
Increase in accrued interest payable | 2,985 | 239 | 2,095 |
Increase in payable due to entity that is a subsidiary of Navient | 8,764 | 147,379 | 96,591 |
(Decrease) increase in other liabilities | -2,652 | 39,096 | -614 |
Total adjustments | -630,558 | -187,573 | -116,176 |
Total net cash (used in) provided by operating activities | -436,773 | 70,020 | 99,550 |
Investing activities | |||
Student loans acquired and originated | -4,094,790 | -4,387,093 | -4,251,595 |
Net proceeds from sales of student loans held for investment | 2,001,625 | 2,546,940 | 2,789,822 |
Proceeds from claim payments | 127,869 | 82,615 | 4,219 |
Net decrease in loans held for investment | 638,321 | 490,791 | 460,216 |
Purchases of available-for-sale securities | -72,049 | -62,097 | -33,053 |
Proceeds from sales and maturities of available-for-sale securities | 10,653 | 597,728 | 27,017 |
Total net cash used in investing activities | -1,388,371 | -731,116 | -1,003,374 |
Financing activities | |||
Brokered deposit placement fee | -15,098 | -12,114 | -16,484 |
Net increase in certificates of deposit | 340,225 | 535,456 | 395,304 |
Net increase in other deposits | 1,207,487 | 1,126,673 | 1,109,886 |
Net decrease in deposits with entity that is a subsidiary of Navient | -5,633 | -126,923 | -12,166 |
Special cash contribution from Navient | 472,718 | 0 | 0 |
Net capital contributions from entity that is a subsidiary of Navient | 12,022 | -164,471 | -20,419 |
Excess tax benefit from the exercise of stock-based awards | 3,271 | 6,258 | 891 |
Preferred stock dividends paid | -12,933 | 0 | 0 |
Dividend paid to entity that is a subsidiary of Navient | 0 | -120,000 | -420,000 |
Net cash provided by financing activities | 2,002,059 | 1,244,879 | 1,037,012 |
Net increase in cash and cash equivalents | 176,915 | 583,783 | 133,188 |
Cash and cash equivalents at beginning of year | 2,182,865 | 1,599,082 | 1,465,894 |
Cash and cash equivalents at end of year | 2,359,780 | 2,182,865 | 1,599,082 |
Cash disbursements made for: | |||
Interest | 90,329 | 76,901 | 75,250 |
Income taxes paid | 401,834 | 81,194 | 47,378 |
Income taxes cash received | ($3,015) | $0 | $0 |
Organization_and_Business
Organization and Business | 12 Months Ended |
Dec. 31, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business |
SLM Corporation (“Sallie Mae,” “SLM,” the “Company,” “we” or “us”) is a holding company that operates through a number of subsidiaries. Its predecessor was formed in 1972 as the Student Loan Marketing Association, a federally chartered government-sponsored enterprise (the “GSE”), with the goal of furthering access to higher education by providing liquidity to the education loan marketplace. On December 29, 2004, we terminated the federal charter, incorporated SLM Corporation as a Delaware corporation, and subsequently dissolved the GSE. | |
Our primary business is to originate, service and collect loans we make to students and their families to finance the cost of their education. Since July 2010, we have originated only Private Education Loans. We use “Private Education Loans” to mean education loans to students or their families that are non-federal loans and loans not insured or guaranteed under the previously existing Federal Family Education Loan Program (“FFELP”). The core of our marketing strategy is to generate Private Education Loan originations by promoting our products on campus through the financial aid office and through direct marketing to students and their families. Since the beginning of 2006, virtually all of our Private Education Loans have been originated and funded by Sallie Mae Bank (the “Bank”), a Utah industrial bank subsidiary, which is regulated by the Utah Department of Financial Institutions (“UDFI”) and the Federal Deposit Insurance Corporation (“FDIC”). We also operate Upromise, Inc. (“Upromise”), a consumer savings network that provides financial rewards on everyday purchases to help families save for college. | |
On April 30, 2014, we completed our plan to separate into two distinct publicly traded entities—an education loan management, servicing and asset recovery business, Navient Corporation (“Navient”), and a consumer banking business, SLM Corporation. The separation of Navient from SLM Corporation (the “Spin-Off”) was preceded by an internal corporate reorganization, which was the first step to separate the education loan management, servicing and asset recovery business from the consumer banking business. As a result of a holding company merger under Section 251(g) of the Delaware General Corporation Law (“DGCL”), which is referred to herein as the “SLM Merger,” all of the shares of then existing SLM Corporation’s common stock were converted, on a 1-to-1 basis, into shares of common stock of New BLC Corporation, a newly formed company that was a subsidiary of pre-Spin-Off SLM Corporation (“pre-Spin-Off SLM”), and, pursuant to the SLM Merger, New BLC Corporation replaced then existing SLM Corporation as the publicly traded registrant and changed its name to SLM Corporation. As part of the internal corporate reorganization, the assets and liabilities associated with the education loan management, servicing and asset recovery business were transferred to Navient, and those assets and liabilities associated with the consumer banking business remained with or were transferred to the newly constituted SLM Corporation. The separation and distribution were accounted for on a substantially tax-free basis. |
Significant_Accounting_Policie
Significant Accounting Policies | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Significant Accounting Policies | Significant Accounting Policies | |
Basis of Presentation | ||
The financial reporting and accounting policies of SLM Corporation conform to generally accepted accounting principles in the United States of America (“GAAP”). In conjunction with the Spin-Off, our consolidated financial statements are comprised of financial information relating to the Bank and Upromise. We use “Private Education Loans” to mean education loans to students or their families that are non-federal loans and loans not insured or guaranteed under the previously existing Federal Family Education Loan Program (“FFELP”). Also included in our financial statements, for periods before the Spin-Off, are certain general corporate overhead expenses allocated to the Company. | ||
The timing and steps necessary to complete the Spin-Off and comply with the Securities and Exchange Commission (“SEC”) reporting requirements, including the replacement of pre-Spin-Off SLM Corporation with our current publicly traded registrant, have resulted in our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on February 19, 2014, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, filed with the SEC on May 12, 2014, providing business results and financial information for the periods reported therein on the basis of the consolidated businesses of pre-Spin-Off SLM. While information contained in those prior reports may provide meaningful historical context for our business, the Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 was our first periodic report made on the basis of the post-Spin-Off business. | ||
At the time of the Spin-Off, we had a targeted starting equity balance of $1,710 million. To achieve the targeted equity balance we retained $565 million of preferred stock and approximately $473 million of cash to offset the obligations attributable to the principal of Series A Preferred Stock and the Series B Preferred Stock, which are substantially similar in all respects to pre-Spin-Off SLM's respective series of preferred stock. | ||
For periods before the Spin-Off, these financial statements are presented on a basis of accounting that reflects a change in reporting entity and have been adjusted for the effects of the Spin-Off. These carve-out financial statements and selected financial information represent only those operations, assets, liabilities and equity that form Sallie Mae on a stand-alone basis. Because the Spin-Off occurred on April 30, 2014, these financial statements include the carved out financial results for the first four months of 2014. All prior period amounts represent comparably determined carved-out amounts. | ||
Use of Estimates and Assumptions | ||
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Key accounting policies that include significant judgments and estimates include the valuation of allowance for loan losses, fair value measurements and derivative accounting. | ||
Consolidation | ||
The consolidated financial statements include the accounts of SLM Corporation and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. | ||
Cash and Cash Equivalents | ||
Cash and cash equivalents include cash held in the Federal Reserve Bank of San Francisco (“FRB”) and commercial bank accounts, and other short-term liquid instruments with original maturities of three months or less. Fees associated with investing cash and cash equivalents are amortized into interest income using the effective interest rate method. | ||
Investments | ||
Investments include mortgage-backed securities in 2014, and asset-backed securities and mortgage-backed securities in 2013 and 2012. We record our investment purchases and sales on a trade date basis. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. We classify all of our investments with readily determinable fair values as trading, available-for-sale or held-to-maturity. | ||
Investments that are not categorized as trading or held-to-maturity are classified as available-for-sale and reported at fair value. Unrealized gains or losses on available-for-sale investments are recorded in equity and are reported as a component of other comprehensive income/(loss), net of applicable income taxes, unless a decline in the investment’s value is considered to be other-than-temporary, in which case the loss is recorded directly to earnings. | ||
Management reviews all investments at least quarterly to determine whether any impairment is other-than-temporary. Impairment is evaluated by considering several factors including the length of time and extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability to retain the investment to allow for an anticipated recovery in fair value. If, based on the analysis, it is determined that the impairment is other-than-temporary, the investment is written down to fair value and a loss is recognized through earnings. | ||
Loans Held for Investment | ||
Loans, consisting of Private Education Loans and FFELP loans, that we have the ability and intent to hold for the foreseeable future are classified as held for investment, and are carried at amortized cost. Amortized cost includes the unamortized premiums, discounts, and capitalized origination costs and fees, all of which are amortized to interest income as discussed under “Loan Interest Income.” Loans which are held for investment are reported net of an allowance for loan losses. | ||
Prior to the Spin-Off, we participated in FFELP rehabilitation loan auctions whereby we bid on portfolios of rehabilitated FFELP loans offered for sale by guarantors. For a loan to be eligible for rehabilitation, the guaranty agency must have received reasonable and affordable payments for 9 out of 10 months, at which time the borrower may request that the loan be rehabilitated. Because monthly payments are usually greater after rehabilitation, not all borrowers request rehabilitation. Upon rehabilitation, a borrower is again eligible for all of the benefits under the Higher Education Act that he or she was not eligible as a borrower on a defaulted loan, such as new federal aid, and the default on the borrower’s credit record is expunged. No student loan may be rehabilitated more than once. We purchased $7,464 and $474,293 of these loans in 2014 and 2013, respectively, at 101.67 percent to 95 percent of par value. These loans are subject to our Allowance for Loan Loss reserve methodology. We no longer intend to purchase any FFELP loans. | ||
Allowance for Loan Losses | ||
We consider a loan to be impaired when, based on current information, a loss has been incurred and it is probable that we will not receive all contractual amounts due. When making our assessment as to whether a loan is impaired, we also take into account more than insignificant delays in payment. We generally evaluate impaired loans on an aggregate basis by grouping similar loans. We maintain an allowance for loan losses at an amount sufficient to absorb probable losses incurred in our portfolios at the reporting date based on a projection of estimated probable credit losses incurred in the portfolio. | ||
We analyze our portfolios to determine the effects that the various stages of delinquency and forbearance have on borrower default behavior and ultimate charge off. We estimate the allowance for loan losses for our loan portfolios using migration analysis of delinquent and current accounts. A migration analyses is a technique used to estimate the likelihood that a loan receivable may progress through the various delinquency stages and ultimately charge off. We also take into account the current and future economic environment and certain other qualitative factors when calculating the allowance for loan losses. | ||
The evaluation of the allowance for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. Our default estimates are based on a loss confirmation period of one year for Private Education Loans and two years for FFELP Loans. A loss confirmation period represents the expected period between a loss event and when management considers the debt to be uncollectible, taking into consideration account management practices that affect the timing of a loss, such as the usage of forbearance. The loss confirmation period underlying the allowance for loan losses is subject to a number of assumptions. If actual future performance in delinquency, charge-offs and recoveries are significantly different than estimated, or account management assumptions or practices were to change, this could materially affect the estimate of the allowance for loan losses, the timing of when losses are recognized, and the related provision for loan losses on our consolidated statements of income. | ||
Below we describe in further detail our policies and procedures for the allowance for loan losses as they relate to our Private Education Loan and FFELP Loan portfolios. | ||
Allowance for Private Education Loan Losses | ||
We maintain an allowance for loan losses at an amount sufficient to absorb probable losses incurred in our portfolios at the reporting date based on a projection of estimated probable credit losses incurred in the portfolio. | ||
In determining the allowance for loan losses on our Private Education Loan non-troubled debt restructuring (“TDR”) portfolio, we estimate the principal amount of loans that will default over the next year (one year being the expected period between a loss event and default) and how much we expect to recover over the same one year period related to the defaulted amount. The expected defaults less our expected recoveries adjusted for any qualitative factors (discussed below) equal the allowance related to this portfolio. Our historical experience indicates that, on average, the time between the date that a customer experiences a default causing event (i.e., the loss trigger event) and the date that we charge off the unrecoverable portion of that loan is one year. | ||
In estimating both the non-TDR and TDR allowance amounts, we start with historical experience of customer delinquency and default behavior. We make judgments about which historical period to start with and then make further judgments about whether that historical experience is representative of future expectations and whether additional adjustments may be needed to those historical default rates. We may also take certain other qualitative factors into consideration when calculating the allowance for loan losses. These qualitative factors include, but are not limited to, changes in the economic environment, changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off and recovery practices not already included in the analysis, and the effect of other external factors such as legal and regulatory requirements on the level of estimated credit losses. | ||
Our non-TDR allowance for loan losses is estimated using an analysis of delinquent and current accounts. Our model is used to estimate the likelihood that a loan receivable may progress through the various delinquency stages and ultimately charge off (“migration analysis”). Once a charge-off forecast is estimated, a recovery assumption is layered on top. In estimating recoveries, we use both estimates of what we would receive from the sale of delinquent loans as well as historical borrower payment behavior to estimate the timing and amount of future recoveries on charged-off loans. | ||
The migration analysis model is based upon sixteen months of actual collection experience, which includes seven months of collection experience using the 212 day charge-off default aversion strategies and nine months of experience using the 120 day charge-off default aversion strategies. We only used collection data from the first four collection buckets for all sixteen months. This resulted in our inclusion of older periods when the accounts were not being aggressively collected in the 30 to 120 days delinquent buckets. We believe this is appropriate as we have very limited data since the change in collection practices to be confident that the positive trends will continue. Once the quantitative calculation is performed, we review the adequacy of the allowance for loan losses and determine if qualitative adjustments need to be considered. | ||
Prior to the Spin-Off, the Bank exercised its right and sold substantially all of the Private Education Loans it originated that became delinquent or were granted forbearance to an entity that is now a subsidiary of Navient at its fair value. Because of this arrangement, the Bank did not hold many loans in forbearance. As a result, the Bank had very little historical forbearance activity and very few delinquencies. | ||
In connection with the Spin-Off, the agreement under which the Bank previously made these sales was amended so that the Bank now only has the right to require Navient to purchase (at fair value) loans only where (a) the borrower has a lending relationship with both the Bank and Navient (“Split Loans”) and (b) the Split Loans either (1) are more than 90 days past due; (2) have been restructured; (3) have been granted a hardship forbearance or more than six months of administrative forbearance; or (4) have a borrower or cosigner who has filed for bankruptcy. At December 31, 2014, we held approximately $117 million of Split Loans. | ||
Pre-Spin-Off SLM charged off loans when they were 212 days delinquent. As such, default aversion strategies were focused on the final stages of delinquency, from 150 days to 212 days. In connection with the Spin-Off, we changed our charge-off policy for Private Education Loans to charging off loans when they reach 120 days delinquent. As a result of changing our corporate charge-off policy and greatly reducing the number of potentially delinquent loans we sell to Navient, our default aversion strategies must now focus on loans 30 to 120 days delinquent. This change has the effect of accelerating the recognition of losses due to the shorter charge-off period (120 days). In addition, at the time of the Spin-Off, we changed our loss confirmation period from two years to one year to reflect the shorter charge-off policy and our revised servicing practices. These two changes resulted in recognizing a $14 million net reduction in our allowance for loan losses in second quarter 2014 because we are now only reserving for one year of losses as compared with two years under the prior policy, which more than offset the impact of the shorter charge-off period. | ||
Troubled Debt Restructurings (“TDRs”) | ||
Separately, for our TDR portfolio, we estimate an allowance amount sufficient to cover life-of-loan expected losses through an impairment calculation based on the difference between the loan’s basis and the present value of expected future cash flows (which would include life-of-loan default and recovery assumptions) discounted at the loan’s original effective interest rate. Our TDR portfolio is comprised mostly of loans with interest rate reductions and forbearance usage greater than three months. | ||
Key Credit Quality Indicators | ||
We determine the collectability of our Private Education Loan portfolio by evaluating certain risk characteristics. We consider credit score, existence of a cosigner, loan status and loan seasoning as the key credit quality indicators because they have the most significant effect on the determination of the adequacy of our allowance for loan losses. Credit scores are an indicator of the creditworthiness of a borrower and the higher the credit score the more likely it is the borrower will be able to make all of their contractual payments. Loan status affects the credit risk because a past due loan is more likely to result in a credit loss than an up-to-date loan. Additionally, loans in the deferred payment status have different credit risk profiles compared with those in current pay status. Loan seasoning affects credit risk because a loan with a history of making payments generally has a lower incidence of default than a loan with a history of making infrequent or no payments. The existence of a cosigner lowers the likelihood of default. We monitor and update these credit quality indicators in the analysis of the adequacy of our allowance for loan losses on a quarterly basis. | ||
Certain Private Education Loans do not require borrowers to begin repayment until six months after they have graduated or otherwise left school. Consequently, the loss estimates for these programs is generally low while the borrower is in school. At December 31, 2014 and 2013, 36 percent and 39 percent, respectively, of the principal balance in the Private Education Loan portfolio was related to borrowers who are in an in-school (fully deferred), grace, or deferment status and not required to make payments. As this population of borrowers leaves school, they will be required to begin payments on their loans, and the allowance for losses may change accordingly. | ||
Similar to the rules governing FFELP payment requirements, our collection policies allow for periods of nonpayment for borrowers requesting additional payment grace periods upon leaving school or experiencing temporary difficulty meeting payment obligations. This is referred to as forbearance status and is considered separately in the allowance for loan losses. The loss confirmation period is in alignment with the typical collection cycle and takes into account these periods of nonpayment. | ||
As part of concluding on the adequacy of the allowance for loan loss, we review key allowance and loan metrics. The most relevant of these metrics considered are the allowance coverage of charge-offs ratio; the allowance as a percentage of total loans and of loans in repayment; and delinquency and forbearance percentages. | ||
We consider a loan to be delinquent 31 days after the last payment was contractually due. We use a model to estimate the amount of uncollectible accrued interest on Private Education Loans and reserve for that amount against current period interest income. | ||
Allowance for FFELP Loan Losses | ||
FFELP Loans are insured as to their principal and accrued interest in the event of default subject to a Risk Sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement on all qualifying default claims. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement. | ||
Similar to the allowance for Private Education Loan losses, the allowance for FFELP Loan losses uses historical experience of customer default behavior and a two-year loss confirmation period to estimate the credit losses incurred in the loan portfolio at the reporting date. We apply the default rate projections, net of applicable Risk Sharing, to each category for the current period to perform our quantitative calculation. Once the quantitative calculation is performed, we review the adequacy of the allowance for loan losses and determine if qualitative adjustments need to be considered. | ||
Deposits | ||
Our deposit accounts are principally certificates of deposit (“CD”), money market deposit accounts (“MMDA”) and high yield savings (“HYS”) accounts. CDs are accounts that have a stipulated maturity and interest rate. Early withdrawal of Brokered CD’s is prohibited (except in the case of death or legal incapacity). Retail CD’s may be withdrawn early but a penalty is assessed. MMDA and HYS accounts are both interest and non-interest bearing accounts that have no maturity or expiration date. The depositor is not required by the deposit contract, but may at any time be required by the Company, to give written notice of any intended withdrawal not less than seven days before the withdrawal is made. | ||
Upromise related liabilities | ||
Upromise related liabilities represent amounts owed to Upromise rewards members for rebates they have earned from qualifying purchases from Upromise’s participating companies. These amounts are held in trust for the benefit of the members until distributed in accordance with the Upromise member’s request and/or the terms of the Upromise service agreement. Upromise, which acts as the trustee for the trust, has deposited a majority of the cash with the Bank pursuant to a money market deposit account agreement between the Bank and Upromise as trustee of the trust. | ||
Fair Value Measurement | ||
We use estimates of fair value in applying various accounting standards for our financial statements. Fair value measurements are used in one of five ways: | ||
• | In the consolidated balance sheet with changes in fair value recorded in the consolidated statement of income; | |
• | In the consolidated balance sheet with changes in fair value recorded in the accumulated other comprehensive income section of the consolidated statement of changes in equity; | |
• | In the consolidated balance sheet for instruments carried at lower of cost or fair value with impairment charges recorded in the consolidated statement of income; | |
• | In the notes to the consolidated financial statements; and | |
• | In the measurement of related party transactions. | |
Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, our policy in estimating fair value is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates and credit spreads (including for our liabilities), relying first on observable data from active markets. Depending on current market conditions, additional adjustments to fair value may be based on factors such as liquidity, credit, and bid/offer spreads. Transaction costs are not included in the determination of fair value. When possible, we seek to validate the model’s output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. | ||
We categorize our fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. Classification is based on the lowest level of input that is significant to the fair value of the instrument. The three levels are as follows: | ||
• | Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. The types of financial instruments included in level 1 are highly liquid instruments with quoted prices. | |
• | Level 2 — Inputs from active markets, other than quoted prices for identical instruments, are used to determine fair value. Significant inputs are directly observable from active markets for substantially the full term of the asset or liability being valued. | |
• | Level 3 — Pricing inputs significant to the valuation are unobservable. Inputs are developed based on the best information available. However, significant judgment is required by us in developing the inputs. | |
Loan Interest Income | ||
For loans classified as held for investment, we recognize interest income as earned, adjusted for the amortization of deferred direct origination costs. This adjustment is recognized based upon the expected yield of the loan over its life after giving effect to prepayments and extensions. The estimate of the prepayment speed includes the effect of voluntary prepayments, student loan defaults, and consolidation (if the loan is consolidated to a third party), all of which shorten the life-of-loan. Prepayment speed estimates also consider the utilization of deferment, forbearance, and extended repayment plans, which lengthen the life-of-loan. We regularly evaluate the assumptions used to estimate the prepayment speeds. In instances where there are changes to the assumptions, amortization is adjusted on a cumulative basis to reflect the change since the origination of the loan. We also pay to the U.S. Department of Education (“ED”) an annual 105 basis point Consolidation Loan Rebate Fee on FFELP Consolidation Loans which is netted against loan interest income. Additionally, interest earned on education loans reflects potential non-payment adjustments in accordance with our uncollectible interest recognition policy as discussed further in “Allowance for Loan Losses” of this Note 2. We do not amortize any adjustments to the basis of education loans when they are classified as held-for-sale. | ||
We recognize certain fee income (primarily late fees) on education loans when earned according to the contractual provisions of the promissory notes, as well as our expectation of collectability. Fee income is recorded when earned in “other non-interest income” in the accompanying consolidated statements of income. | ||
Interest Expense | ||
Interest expense is based upon contractual interest rates adjusted for the amortization of issuance costs. We incur interest expense on interest bearing deposits comprised of non-maturity savings deposits, brokered and retail certificates of deposit and brokered money market deposits. Interest expense is recognized when amounts are contractually due to deposit holders. Refer to Note 8, “Deposits,” for further details of interest bearing deposits. | ||
Gains on Sale of Loans, Net | ||
We participate and sell loans to third parties and affiliates (including entities that were related parties prior to the Spin-Off). These sales may be through whole loan sales or securitization transactions that qualify for sales treatment. These loans were initially recorded as held for investment, and were transferred to held-for-sale immediately prior to sale or securitization. Beginning in April 2012, loans were sold at fair value. Details of these transactions are further discussed in Note 16, “Arrangements with Navient Corporation.” | ||
Prior to the Spin-Off the Bank sold loans to an entity that is now a subsidiary of Navient when loans became 90 days delinquent and to facilitate securitization transactions. Prior to the Spin-Off, the Bank sold $805 million, $2.4 billion and $2.6 billion of loans resulting in a net gain on sale of loans of $36 million, $197 million and $235 million, for the years ended December 31, 2014, 2013 and 2012, respectively. Subsequent to the Spin-Off, we sold loans through loan sales and a securitization transaction with third parties (including Navient) resulting in a net gain on sale of loans of $85 million for the year ended December 31, 2014. See notes to consolidated financial statements, Note 16, “Arrangements with Navient Corporation,” for further discussion regarding loan purchase agreements. While there may be near-term Private Education Loan sales to Navient to facilitate an orderly transition after the Spin-Off, neither the Company nor Navient has any ongoing obligation to buy or sell Private Education Loans to or from the other. | ||
Other Income | ||
Our Upromise subsidiary has a number of programs that encourage consumers to save for the cost of college education. We have established a consumer savings network which is designed to promote college savings by consumers who are members of this program by encouraging them to purchase goods and services from the companies that participate in the program. Participating companies generally pay Upromise fees based on member purchase volume, either online or in stores depending on the contractual arrangement with the company. We recognize revenue as marketing and administrative services are rendered based upon contractually determined rates and member purchase volumes. | ||
Securitization Accounting | ||
In the third quarter 2014, we entered into our first securitization transaction. We accounted for this as a sale of loans and we did not consolidate the securitization trust. This securitization used a two-step structure with a special purpose entity that legally isolated the transferred assets from us, even in the event of bankruptcy. The transaction was also structured to ensure the holders of the beneficial interests issued are not constrained from pledging or exchanging their interests, and we do not maintain effective control over the transferred assets. If these criteria had not been met, then the transaction would be accounted for as an on-balance sheet secured borrowing. Our securitization transaction was legally structured to be a sale of assets that isolated the transferred assets from us. If a securitization qualifies as a sale, we then assess whether we are the primary beneficiary of the securitization trust and are required to consolidate such trust. If we are the primary beneficiary then no gain or loss is recognized. | ||
The investors in the securitization trust have no recourse to our assets should there be a failure of the trust to pay when due. Generally, the only recourse the trust has to us is in the event we breach a seller representation or warranty or our duties as master servicer, in which event we agree to repurchase the related loans from the trust. As master servicer, our primary responsibility will be to monitor the performance of the subservicer and find a substitute subservicer in the event the subservicer of the trust defaults. | ||
We did not record a servicing asset or servicing liability related to the securitization transaction we entered into in third quarter 2014 because we determined the master servicing fee we receive is at market rate. | ||
Derivative Accounting | ||
We account for our derivatives, consisting of interest rate swaps, at fair value on the consolidated balance sheets as either an asset or liability. Derivative positions are recorded as net positions by counterparty based on master netting arrangements (see Note 11, “Derivative Financial Instruments”) exclusive of accrued interest and cash collateral held or pledged. We determine the fair value for our derivative contracts primarily using pricing models that consider current market conditions and the contractual terms of the derivative contract. These factors include interest rates, time value, forward interest rate curves, and volatility factors. Inputs are generally from active financial markets. | ||
The majority of our derivatives qualify as effective hedges. For these derivatives, the relationship between the hedging instrument and the hedged items (including the hedged risk and method for assessing effectiveness), as well as the risk management objective and strategy for undertaking various hedge transactions at the inception of the hedging relationship, is documented. | ||
Each derivative is designated to a specific (or pool of) liability(ies) on the consolidated balance sheets, and is designated as either a “fair value” hedge or a “cash flow” hedge. Fair value hedges are designed to hedge our exposure to changes in fair value of a fixed-rate liability. For effective fair value hedges, both the hedge and the hedged item (for the risk being hedged) are recorded at fair value with any difference reflecting ineffectiveness which is recorded immediately in the consolidated statements of income. Cash flow hedges are designed to hedge our exposure to variability in cash flows related to variable rate deposits. The assessment of the hedge’s effectiveness is performed at inception and on an ongoing basis, generally using regression testing. For hedges of a pool of liabilities, tests are performed to demonstrate the similarity of individual instruments of the pool. When it is determined that a derivative is not currently an effective hedge, ineffectiveness is recognized for the full change in fair value of the derivative with no offsetting amount from the hedged item since the last time it was effective. If it is also determined the hedge will not be effective in the future, we discontinue the hedge accounting prospectively and begin amortization of any basis adjustments that exist related to the hedged item. | ||
Stock-Based Compensation | ||
We recognize stock-based compensation cost in our consolidated statements of income using the fair value method. Under this method we determine the fair value of the stock-based compensation at the time of the grant and recognize the resulting compensation expense over the vesting period of the stock-based grant. | ||
Income Taxes | ||
We account for income taxes under the asset and liability approach, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and tax basis of our assets and liabilities. To the extent tax laws change, deferred tax assets and liabilities are adjusted in the period that the tax change is enacted. | ||
“Income tax expense/(benefit)” includes (i) deferred tax expense/(benefit), which represents the net change in the deferred tax asset or liability balance during the year when applicable, and (ii) current tax expense/(benefit), which represents the amount of tax currently payable to or receivable from a tax authority plus amounts accrued for unrecognized tax benefits. Income tax expense/(benefit) excludes the tax effects related to adjustments recorded in equity. | ||
An uncertain tax position is recognized only if it is more likely than not to be sustained upon examination based on the technical merits of the position. The amount of tax benefit recognized in the financial statements is the largest amount of benefit that is more than fifty percent likely of being sustained upon ultimate settlement of the uncertain tax position. We recognize interest related to unrecognized tax benefits in income tax expense/(benefit), and penalties, if any, in operating expenses. | ||
In connection with the Spin-Off, we have become the taxpayer legally responsible for $283 million of deferred taxes payable (installment payments due quarterly through 2018) in connection with gains recognized by pre-Spin-Off SLM on debt repurchases in prior years. As part of the tax sharing agreement between us and Navient, Navient has agreed to fully pay us for these deferred taxes due. An indemnification receivable of $291 million was recorded, which represents the fair value of the future payments under the agreement based on a discounted cash flow model. We will accrue interest income on the indemnification receivable using the interest method. | ||
We also recorded a liability related to uncertain tax positions of $27 million for which we are indemnified by Navient. If there is an adjustment to the indemnified uncertain tax liability, an offsetting adjustment to the indemnification receivable will be recorded as pre-tax adjustment to the income statement. | ||
As of the date of the Spin-Off on April 30, 2014, we recorded a liability of $310 million ($283 million related to deferred taxes and $27 million related to uncertain tax positions) and an indemnification receivable of $291 million ($310 million less the $19 million discount). As of December 31, 2014, the liability balance is $268 million ($252 million related to deferred taxes and $16 million related to uncertain tax positions) and the indemnification receivable balance is $240 million ($224 million related to deferred taxes and $16 million related to uncertain tax positions). | ||
Reclassifications | ||
Certain reclassifications have been made to the balances as of and for the years ended December 31, 2013 and 2012, to be consistent with classifications adopted for 2014, which had no effect on net income, total assets or total liabilities. | ||
Recently Issued Accounting Pronouncements | ||
On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance when it becomes effective. The new standard is effective on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We have determined that this new guidance will have an immaterial impact on the financial results of the Company. |
Cash_and_Cash_Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2014 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents |
As of December 31, 2014, cash and cash equivalents include cash due from the FRB of $2,344,901 and cash due from depository institutions of $14,879. As of December 31, 2013, cash and cash equivalents include cash due from the FRB of $2,181,463, and cash due from depository institutions of $1,402. As of December 31, 2014 and 2013, we had no outstanding cash equivalents. | |
In 2010, the FRB introduced the Term Deposit Facility to facilitate the conduct of monetary policy by providing a tool that may be used to manage the aggregate quantity of reserve balances held by depository institutions. Under this program the FRB accepts deposits for a stated maturity at a rate of interest determined via auction. The funds are removed from the accounts of participating institutions for the life of the term deposit. We participated in these auctions in 2014 and 2013, resulting in interest income of $1,248 and $813, respectively. As of December 31, 2014 and 2013, no funds were on deposit with the FRB under this program. | |
We are required to maintain average reserve balances with the FRB based on a percentage of deposits. The average amounts of those reserves for the years ended December 31, 2014 and 2013 were $324 and $1,548, respectively. |
Investments
Investments | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Investments | Investments | ||||||||||||||||||||||||
The amortized cost and fair value of securities available for sale are as follows: | |||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||||
Mortgage-backed securities | $ | 167,740 | $ | 2,686 | $ | (1,492 | ) | $ | 168,934 | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||||
Mortgage-backed securities | $ | 106,977 | $ | 706 | $ | (5,578 | ) | $ | 102,105 | ||||||||||||||||
The following table summarizes the amount of gross unrealized losses for our mortgage-backed securities and the estimated fair value by length of time the securities have been in an unrealized loss position: | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Gross unrealized losses | Estimated fair value | Gross unrealized losses | Estimated fair value | Gross unrealized losses | Estimated fair value | ||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Mortgage-backed securities | $ | (27 | ) | $ | 12,147 | $ | (1,465 | ) | $ | 41,462 | $ | (1,492 | ) | $ | 53,609 | ||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Mortgage-backed securities | $ | (3,633 | ) | $ | 69,809 | $ | (1,945 | ) | $ | 16,176 | $ | (5,578 | ) | $ | 85,985 | ||||||||||
Our investment portfolio is comprised of mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac with amortized costs of $86,329, $65,850, and $15,561, respectively, at December 31, 2014. We own these securities to meet our requirements under the Community Reinvestment Act. As of December 31, 2014, there were 10 of 13 separate mortgage-backed securities with unrealized losses in our investment portfolio. Nine of the 13 securities in a net loss position were issued under Ginnie Mae programs that carry a full faith and credit guarantee from the U.S. Government. The remaining securities in a net loss position carry a principal and interest guarantee by Fannie Mae. As of December 31, 2013, there were 20 of 33 separate mortgage-backed securities with unrealized losses in our investment portfolio. Ten of the 20 securities in a net loss position were issued by Ginnie Mae. We have the ability and the intent to hold these securities for a period of time sufficient for the market price to recover to at least the adjusted amortized cost of the security. | |||||||||||||||||||||||||
As of December 31, 2014, the amortized cost and fair value of securities, by contractual maturities, are summarized below. Contractual maturities versus actual maturities may differ due to the effect of prepayments. | |||||||||||||||||||||||||
Year of Maturity | Amortized Cost | Estimated Fair Value | |||||||||||||||||||||||
2038 | $ | 604 | $ | 647 | |||||||||||||||||||||
2039 | 11,298 | 12,145 | |||||||||||||||||||||||
2042 | 27,721 | 26,617 | |||||||||||||||||||||||
2043 | 73,534 | 74,505 | |||||||||||||||||||||||
2044 | 54,583 | 55,020 | |||||||||||||||||||||||
Total | $ | 167,740 | $ | 168,934 | |||||||||||||||||||||
In October 2013, we sold our asset-backed security portfolio for a gain of $63,813. We no longer hold asset-backed securities in our investment portfolio. | |||||||||||||||||||||||||
The mortgage-backed securities have been pledged to the FRB as collateral against any advances and accrued interest under the Primary Credit program or any other program sponsored by the FRB. We had $160,949 and $103,049 par value of mortgage-backed securities pledged to this borrowing facility at December 31, 2014 and 2013, respectively, as discussed further in Note 10, “Borrowed Funds.” |
Loans_Held_for_Investment
Loans Held for Investment | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||
Loans Held for Investment | Loans Held for Investment | |||||||||||||||||||||
Loans Held for Investment consist of Private Education Loans and FFELP Loans. | ||||||||||||||||||||||
Our Private Education Loans are made largely to bridge the gap between the cost of higher education and the amount funded through financial aid, government loans or customers’ resources. Private Education Loans bear the full credit risk of the customer. We manage this risk through risk-performance underwriting strategies and qualified cosigners. Private Education Loans generally carry a variable rate indexed to LIBOR. As of December 31, 2014, 83 percent of all Private Education Loans were indexed to LIBOR. We provide incentives for customers to include a cosigner on the loan, and the vast majority of loans in our portfolio are cosigned. We also encourage customers to make payments while in school. | ||||||||||||||||||||||
FFELP Loans are insured as to their principal and accrued interest in the event of default subject to a Risk Sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement on all qualifying claims. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement. | ||||||||||||||||||||||
Loans held for investment are summarized as follows: | ||||||||||||||||||||||
December 31, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Private Education Loans | $ | 8,311,376 | $ | 6,563,342 | ||||||||||||||||||
Deferred origination costs | 13,845 | 5,063 | ||||||||||||||||||||
Allowance for loan losses | (78,574 | ) | (61,763 | ) | ||||||||||||||||||
Total Private Education Loans, net | 8,246,647 | 6,506,642 | ||||||||||||||||||||
FFELP Loans | 1,264,807 | 1,426,972 | ||||||||||||||||||||
Unamortized acquisition costs, net | 3,600 | 4,081 | ||||||||||||||||||||
Allowance for loan losses | (5,268 | ) | (6,318 | ) | ||||||||||||||||||
Total FFELP Loans, net | 1,263,139 | 1,424,735 | ||||||||||||||||||||
Loans held for investment, net | $ | 9,509,786 | $ | 7,931,377 | ||||||||||||||||||
The estimated weighted average life of student loans in our portfolio was approximately 6.2 years and 7.0 years at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||
The average balance and the respective weighted average interest rates are summarized as follows: | ||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Average Balance | Weighted Average Interest Rate | Average Balance | Weighted Average Interest Rate | Average Balance | Weighted Average Interest Rate | |||||||||||||||||
Private Education Loans | $ | 7,563,356 | 8.16 | % | $ | 5,996,651 | 8.16 | % | $ | 5,347,239 | 8.34 | % | ||||||||||
FFELP Loans | 1,353,497 | 3.24 | 1,142,979 | 3.32 | 527,935 | 2.85 | ||||||||||||||||
Total portfolio | $ | 8,916,853 | $ | 7,139,630 | $ | 5,875,174 | ||||||||||||||||
Certain Collection Tools — Private Education Loans | ||||||||||||||||||||||
Forbearance involves granting the customer a temporary cessation of payments (or temporary acceptance of smaller than scheduled payments) for a specified period of time. Using forbearance extends the original term of the loan. Forbearance does not grant any reduction in the total repayment obligation (principal or interest). While in forbearance status, interest continues to accrue and is capitalized to principal when the loan re-enters repayment status. Our forbearance policies include limits on the number of forbearance months granted consecutively and the total number of forbearance months granted over the life of the loan. In some instances, we require good-faith payments before granting forbearance. Exceptions to forbearance policies are permitted when such exceptions are judged to increase the likelihood of collection of the loan. Forbearance as a collection tool is used most effectively when applied based on a customer’s unique situation, including historical information and judgments. We leverage updated customer information and other decision support tools to best determine who will be granted forbearance based on our expectations as to a customer’s ability and willingness to repay their obligation. This strategy is aimed at mitigating the overall risk of the portfolio as well as encouraging cash resolution of delinquent loans. | ||||||||||||||||||||||
Forbearance may be granted to customers who are exiting their grace period to provide additional time to obtain employment and income to support their obligations, or to current customers who are faced with a hardship and request forbearance time to provide temporary payment relief. In these circumstances, a customer’s loan is placed into a forbearance status in limited monthly increments and is reflected in the forbearance status at month-end during this time. At the end of the granted forbearance period, the customer will enter repayment status as current and is expected to begin making scheduled monthly payments on a go-forward basis. | ||||||||||||||||||||||
Forbearance may also be granted to customers who are delinquent in their payments. In these circumstances, the forbearance cures the delinquency and the customer is returned to a current repayment status. In more limited instances, delinquent customers will also be granted additional forbearance time. | ||||||||||||||||||||||
We also have an interest rate reduction program to assist customers in repaying their Private Education Loans through reduced payments, while continuing to reduce their outstanding principal balance. This program is offered in situations where the potential for principal recovery, through a modification of the monthly payment amount, is better than other alternatives currently available. Along with demonstrating the ability and willingness to pay, the customer must make three consecutive monthly payments at the reduced rate to qualify for the program. Once the customer has made the initial three payments, the loan’s status is returned to current and the interest rate is reduced for the successive twelve month period. | ||||||||||||||||||||||
During the first four months of 2014, and all of 2013 and 2012, we did not utilize these collection tools because we sold loans that would otherwise be managed using one or more of these collection tools to an entity that is now a subsidiary of Navient. See Note 16, “Arrangements with Navient Corporation.” | ||||||||||||||||||||||
The period of delinquency for loans is based on the number of days scheduled payments are contractually past due. As of December 31, 2014 and 2013, we had $201,703 and $220,413, respectively, of FFELP loans and $10,701 and $2,667, respectively, of Private Education Loans held for investment which are 90 or more days delinquent that continue to accrue interest. At December 31, 2014 and 2013, we had no loans in nonaccrual status. | ||||||||||||||||||||||
Borrower-in-Custody Arrangements | ||||||||||||||||||||||
We maintain Borrower-in-Custody arrangements with the FRB. Under these arrangements, we can pledge FFELP consolidation or Private Education Loans to the FRB to secure any advances and accrued interest generated under the Primary Credit program at the FRB. As of December 31, 2014 and 2013, we had $0 and $95,555, respectively, of FFELP consolidation loans and $1,408,745 and $870,736, respectively, of Private Education Loans pledged to this borrowing facility, as discussed further in Note 10, “Borrowed Funds.” | ||||||||||||||||||||||
Loans Held for Investment by Region | ||||||||||||||||||||||
At December 31, 2014, 38.8 percent of loans were concentrated in the following states: | ||||||||||||||||||||||
2014 | ||||||||||||||||||||||
California | 10.1 | % | ||||||||||||||||||||
New York | 9.5 | |||||||||||||||||||||
Pennsylvania | 7.7 | |||||||||||||||||||||
New Jersey | 6.3 | |||||||||||||||||||||
Illinois | 5.2 | |||||||||||||||||||||
38.8 | % | |||||||||||||||||||||
At December 31, 2013, 37.8 percent of loans were concentrated in the following states: | ||||||||||||||||||||||
2013 | ||||||||||||||||||||||
California | 9.7 | % | ||||||||||||||||||||
New York | 9.3 | |||||||||||||||||||||
Pennsylvania | 7.5 | |||||||||||||||||||||
New Jersey | 6.2 | |||||||||||||||||||||
Illinois | 5.1 | |||||||||||||||||||||
37.8 | % | |||||||||||||||||||||
No other state had a concentration of loans in excess of 5 percent of the aggregate outstanding loans held for investment. |
Allowance_for_Loan_Losses
Allowance for Loan Losses | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||
Allowance for Loan Losses | Allowance for Loan Losses | |||||||||||||||||||||
Our provision for Private Education Loan losses represents the periodic expense of maintaining an allowance sufficient to absorb incurred probable losses in the held-for-investment loan portfolios. The evaluation of the allowance for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. We believe the allowance for loan losses is appropriate to cover probable losses incurred in the loan portfolios. See Note 2, “Significant Accounting Policies — Allowance for Private Education Loan Losses” for a more detailed discussion. | ||||||||||||||||||||||
Allowance for Loan Losses Metrics | ||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||
FFELP Loans | Private Education | Total | ||||||||||||||||||||
Loans | ||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||
Beginning balance | $ | 6,318 | $ | 61,763 | $ | 68,081 | ||||||||||||||||
Total provision | 1,946 | 83,583 | 85,529 | |||||||||||||||||||
Charge-offs(1) | (2,996 | ) | (14,442 | ) | (17,438 | ) | ||||||||||||||||
Recoveries | — | 1,155 | 1,155 | |||||||||||||||||||
Net charge-offs | (2,996 | ) | (13,287 | ) | (16,283 | ) | ||||||||||||||||
Student loan sales(2) | — | (53,485 | ) | (53,485 | ) | |||||||||||||||||
Ending Balance | $ | 5,268 | $ | 78,574 | $ | 83,842 | ||||||||||||||||
Allowance: | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 9,815 | $ | 9,815 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 5,268 | $ | 68,759 | $ | 74,027 | ||||||||||||||||
Loans: | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 59,402 | $ | 59,402 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,264,807 | $ | 8,251,974 | $ | 9,516,781 | ||||||||||||||||
Net charge-offs as a percentage of average loans in repayment | 0.31 | % | 0.3 | % | ||||||||||||||||||
Allowance as a percentage of the ending total loan balance | 0.42 | % | 0.95 | % | ||||||||||||||||||
Allowance as a percentage of the ending loans in repayment | 0.57 | % | 1.53 | % | ||||||||||||||||||
Allowance coverage of net charge-offs | 1.76 | 5.91 | ||||||||||||||||||||
Ending total loans | $ | 1,264,807 | $ | 8,311,376 | ||||||||||||||||||
Average loans in repayment | $ | 972,390 | $ | 4,495,709 | ||||||||||||||||||
Ending loans in repayment | $ | 926,891 | $ | 5,149,215 | ||||||||||||||||||
_________ | ||||||||||||||||||||||
(1) | Prior to the Spin-Off, Private Education Loans were sold to an entity that is now a subsidiary of Navient, prior to being charged off. | |||||||||||||||||||||
(2) | Represents fair value write-downs on loans sold. | |||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||
FFELP Loans | Private Education | Total | ||||||||||||||||||||
Loans | ||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||
Beginning balance | $ | 3,971 | $ | 65,218 | $ | 69,189 | ||||||||||||||||
Total provision | 4,384 | 64,955 | 69,339 | |||||||||||||||||||
Charge-offs(1) | (2,037 | ) | — | (2,037 | ) | |||||||||||||||||
Student loan sales(2) | — | (68,410 | ) | (68,410 | ) | |||||||||||||||||
Ending Balance | $ | 6,318 | $ | 61,763 | $ | 68,081 | ||||||||||||||||
Allowance: | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | — | $ | — | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 6,318 | $ | 61,763 | $ | 68,081 | ||||||||||||||||
Loans: | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | — | $ | — | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,426,972 | $ | 6,563,342 | $ | 7,990,314 | ||||||||||||||||
Charge-offs as a percentage of average loans in repayment | 0.23 | % | — | % | ||||||||||||||||||
Allowance as a percentage of the ending total loan balance | 0.44 | % | 0.94 | % | ||||||||||||||||||
Allowance as a percentage of the ending loans in repayment | 0.62 | % | 1.55 | % | ||||||||||||||||||
Allowance coverage of charge-offs | 3.1 | — | ||||||||||||||||||||
Ending total loans | $ | 1,426,972 | $ | 6,563,342 | ||||||||||||||||||
Average loans in repayment | $ | 870,460 | $ | 3,509,502 | ||||||||||||||||||
Ending loans in repayment | $ | 1,023,471 | $ | 3,972,317 | ||||||||||||||||||
(1) | Prior to the Spin-Off, Private Education Loans were sold to an entity that is now a subsidiary of Navient prior to being charged off. | |||||||||||||||||||||
(2) | Represents fair value write-downs on loans sold. | |||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||
FFELP Loans | Private Education | Total | ||||||||||||||||||||
Loans | ||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||
Beginning balance | $ | 402 | $ | 69,090 | $ | 69,492 | ||||||||||||||||
Total provision | 3,669 | 62,447 | 66,116 | |||||||||||||||||||
Charge-offs(1) | (100 | ) | — | (100 | ) | |||||||||||||||||
Student loan sales(2) | — | (66,319 | ) | (66,319 | ) | |||||||||||||||||
Ending Balance | $ | 3,971 | $ | 65,218 | $ | 69,189 | ||||||||||||||||
Allowance: | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | — | $ | — | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 3,971 | $ | 65,218 | $ | 69,189 | ||||||||||||||||
Loans: | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | — | $ | — | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,043,521 | $ | 5,507,908 | $ | 6,551,429 | ||||||||||||||||
Charge-offs as a percentage of average loans in repayment | 0.03 | % | — | % | ||||||||||||||||||
Allowance as a percentage of the ending total loan balance | 0.38 | % | 1.18 | % | ||||||||||||||||||
Allowance as a percentage of the ending loans in repayment | 0.52 | % | 1.74 | % | ||||||||||||||||||
Allowance coverage of charge-offs | 39.77 | — | ||||||||||||||||||||
Ending total loans | $ | 1,043,521 | $ | 5,507,908 | ||||||||||||||||||
Average loans in repayment | $ | 367,789 | $ | 3,928,692 | ||||||||||||||||||
Ending loans in repayment | $ | 770,772 | $ | 3,750,223 | ||||||||||||||||||
(1) | Prior to the Spin-Off, Private Education Loans were sold to an entity that is now a subsidiary of Navient prior to being charged off. | |||||||||||||||||||||
(2) | Represents fair value write-downs on loans sold. | |||||||||||||||||||||
Troubled Debt Restructurings | ||||||||||||||||||||||
All of our loans are collectively assessed for impairment except for loans classified as TDRs. Prior to the Spin-Off, we did not have TDR loans because the loans were generally sold in the same month that the terms were restructured. Subsequent to May 1, 2014, we have individually assessed $59.4 million of Private Education Loans as TDRs. When these loans are determined to be impaired, we provide for an allowance for losses sufficient to cover life-of-loan expected losses through an impairment calculation based on the difference between the loan's basis and the present value of expected future cash flows discounted at the loan's original effective interest rate. | ||||||||||||||||||||||
Within the Private Education Loan portfolio, loans greater than 90 days past due are considered to be nonperforming. FFELP Loans are at least 97 percent guaranteed as to their principal and accrued interest by the federal government in the event of default and therefore we do not deem FFELP Loans as nonperforming from a credit risk standpoint at any point in their life cycle prior to claim payment, and continue to accrue interest through the date of claim. | ||||||||||||||||||||||
At December 31, 2014, all of our TDR loans had a related allowance recorded. The following table provides the recorded investment, unpaid principal balance and related allowance for our TDR loans. | ||||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Allowance | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||
TDR Loans | $ | 60,278 | $ | 59,402 | $ | 9,815 | ||||||||||||||||
The following table provides the average recorded investment and interest income recognized for our TDR loans. | ||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
TDR Loans | $ | 23,290 | $ | 1,105 | ||||||||||||||||||
The following table provides information regarding the loan status and aging of TDR loans that are past due. | ||||||||||||||||||||||
December 31, | ||||||||||||||||||||||
2014 | ||||||||||||||||||||||
Balance | % | |||||||||||||||||||||
Loans in in-school/grace/deferment(1) | $ | 2,915 | ||||||||||||||||||||
Loans in forbearance(2) | 18,620 | |||||||||||||||||||||
Loans in repayment and percentage of each status: | ||||||||||||||||||||||
Loans current | 34,554 | 91.2 | % | |||||||||||||||||||
Loans delinquent 31-60 days(3) | 1,953 | 5.2 | ||||||||||||||||||||
Loans delinquent 61-90 days(3) | 983 | 2.6 | ||||||||||||||||||||
Loans delinquent greater than 90 days(3) | 377 | 1 | ||||||||||||||||||||
Total TDR loans in repayment | 37,867 | 100 | % | |||||||||||||||||||
Total TDR loans, gross | $ | 59,402 | ||||||||||||||||||||
_____ | ||||||||||||||||||||||
(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. | |||||||||||||||||||||
The following table provides the amount of modified loans that resulted in a TDR in the periods presented. Additionally, the table summarizes charge-offs occurring in the TDR portfolio, as well as TDRs for which a payment default occurred in the current period within 12 months of the loan first being designated as a TDR. We define payment default as 60 days past due for this disclosure. The majority of our loans that are considered TDRs involve a temporary forbearance of payments and do not change the contractual interest rate of the loan. | ||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||
Modified Loans | Charge-offs | Payment-Default | ||||||||||||||||||||
TDR Loans | $ | 59,402 | $ | 948 | $ | 325 | ||||||||||||||||
Key Credit Quality Indicators | ||||||||||||||||||||||
FFELP Loans are at least 97 percent insured and guaranteed as to their principal and accrued interest in the event of default; therefore, there are no key credit quality indicators associated with FFELP Loans. Included within our FFELP portfolio as of December 31, 2014 are $785 million of FFELP rehabilitation loans. These loans have previously defaulted but have subsequently been brought current according to a loan rehabilitation agreement. The credit performance on rehabilitation loans is worse than the remainder of our FFELP portfolio. At December 31, 2014 and 2013, 62.1 percent and 62.9 percent of our FFELP portfolio consisted of rehabilitation loans. | ||||||||||||||||||||||
For Private Education Loans, the key credit quality indicators are FICO scores, the existence of a cosigner, the loan status and loan seasoning. The FICO scores are assessed at origination and maintained through the loan's term. The following table highlights the gross principal balance of our Private Education Loan portfolio stratified by key credit quality indicators. | ||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||
Credit Quality Indicators: | Balance(1) | % of Balance | Balance(1) | % of Balance | ||||||||||||||||||
Cosigners: | ||||||||||||||||||||||
With cosigner | $ | 7,465,339 | 90 | % | $ | 5,898,751 | 90 | % | ||||||||||||||
Without cosigner | 846,037 | 10 | 664,591 | 10 | ||||||||||||||||||
Total | $ | 8,311,376 | 100 | % | $ | 6,563,342 | 100 | % | ||||||||||||||
FICO at Origination: | ||||||||||||||||||||||
Less than 670 | $ | 558,801 | 7 | % | $ | 461,412 | 7 | % | ||||||||||||||
670-699 | 1,227,860 | 15 | 1,364,286 | 21 | ||||||||||||||||||
700-749 | 2,626,238 | 32 | 1,649,192 | 25 | ||||||||||||||||||
Greater than or equal to 750 | 3,898,477 | 46 | 3,088,452 | 47 | ||||||||||||||||||
Total | $ | 8,311,376 | 100 | % | $ | 6,563,342 | 100 | % | ||||||||||||||
Seasoning(2): | ||||||||||||||||||||||
1-12 payments | $ | 2,373,117 | 29 | % | $ | 1,840,538 | 28 | % | ||||||||||||||
13-24 payments | 1,532,042 | 18 | 1,085,393 | 17 | ||||||||||||||||||
25-36 payments | 755,143 | 9 | 669,685 | 10 | ||||||||||||||||||
37-48 payments | 411,493 | 5 | 362,124 | 6 | ||||||||||||||||||
More than 48 payments | 212,438 | 3 | 30,891 | — | ||||||||||||||||||
Not yet in repayment | 3,027,143 | 36 | 2,574,711 | 39 | ||||||||||||||||||
Total | $ | 8,311,376 | 100 | % | $ | 6,563,342 | 100 | % | ||||||||||||||
___________ | ||||||||||||||||||||||
(1) | Balance represents gross Private Education Loans. | |||||||||||||||||||||
(2) | Number of months in active repayment for which a scheduled payment was due. | |||||||||||||||||||||
The following tables provide information regarding the loan status and aging of past due loans. Loans in repayment includes in-school loans making interest only and fixed payments as well as loans that have entered full principal and interest repayment status after any applicable grace period. | ||||||||||||||||||||||
Private Education Loan Delinquencies | ||||||||||||||||||||||
December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Balance | % | Balance | % | Balance | % | |||||||||||||||||
Loans in-school/grace/deferment(1) | $ | 3,027,143 | $ | 2,574,711 | $ | 1,748,757 | ||||||||||||||||
Loans in forbearance(2) | 135,018 | 16,314 | 8,928 | |||||||||||||||||||
Loans in repayment and percentage of each status: | ||||||||||||||||||||||
Loans current | 5,045,600 | 98 | % | 3,933,143 | 99 | % | 3,705,634 | 98.8 | % | |||||||||||||
Loans delinquent 31-60 days(3) | 63,873 | 1.2 | 28,854 | 0.7 | 33,412 | 0.9 | ||||||||||||||||
Loans delinquent 61-90 days(3) | 29,041 | 0.6 | 10,280 | 0.3 | 10,483 | 0.3 | ||||||||||||||||
Loans delinquent greater than 90 days(3) | 10,701 | 0.2 | 40 | — | 694 | — | ||||||||||||||||
Total Private Education Loans in repayment | 5,149,215 | 100 | % | 3,972,317 | 100 | % | 3,750,223 | 100 | % | |||||||||||||
Total Private Education Loans, gross | 8,311,376 | 6,563,342 | 5,507,908 | |||||||||||||||||||
Private Education Loans deferred origination costs | 13,845 | 5,063 | 5,009 | |||||||||||||||||||
Total Private Education Loans | 8,325,221 | 6,568,405 | 5,512,917 | |||||||||||||||||||
Private Education Loans allowance for losses | (78,574 | ) | (61,763 | ) | (65,218 | ) | ||||||||||||||||
Private Education Loans, net | $ | 8,246,647 | $ | 6,506,642 | $ | 5,447,699 | ||||||||||||||||
Percentage of Private Education Loans in repayment | 62 | % | 60.5 | % | 68.1 | % | ||||||||||||||||
Delinquencies as a percentage of Private Education Loans in repayment | 2 | % | 1 | % | 1.2 | % | ||||||||||||||||
Loans in forbearance as a percentage of loans in repayment and forbearance | 2.6 | % | 0.4 | % | 0.2 | % | ||||||||||||||||
-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. | |||||||||||||||||||||
Accrued Interest Receivable | ||||||||||||||||||||||
The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans greater than 90 days past due as compared to our allowance for uncollectible interest. The allowance for uncollectible interest exceeds the amount of accrued interest on our 90 days past due portfolio for all periods presented. | ||||||||||||||||||||||
Private Education Loan | ||||||||||||||||||||||
Accrued Interest Receivable | ||||||||||||||||||||||
Total Interest | Greater Than | Allowance for Uncollectible Interest | ||||||||||||||||||||
Receivable | 90 Days | |||||||||||||||||||||
Past Due | ||||||||||||||||||||||
31-Dec-14 | $ | 445,710 | $ | 443 | $ | 3,517 | ||||||||||||||||
31-Dec-13 | $ | 333,857 | $ | 1 | $ | 4,076 | ||||||||||||||||
Premises_and_Equipment_Net
Premises and Equipment, Net | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Premises and equipment, net | Premises and equipment, net | ||||||||
The following is a summary of our premises and equipment. | |||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Land and land improvements | $ | 10,927 | $ | 10,345 | |||||
Buildings and leasehold improvements | 56,772 | 52,435 | |||||||
Furniture, fixtures and equipment | 10,898 | 25,633 | |||||||
Software | 31,988 | 32,534 | |||||||
Premises and equipment, gross | 110,585 | 120,947 | |||||||
Accumulated depreciation | (32,115 | ) | (46,759 | ) | |||||
Premises and equipment, net | $ | 78,470 | $ | 74,188 | |||||
Depreciation expense for premises and equipment was $6,099, $5,059 and $6,837 for the years ended December 31, 2014, 2013 and 2012, respectively. |
Deposits
Deposits | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Deposits [Abstract] | ||||||||||||||||
Deposits | Deposits | |||||||||||||||
The following table summarizes total deposits at December 31, 2014 and 2013. | ||||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Deposits - interest bearing | $ | 10,539,953 | $ | 8,946,514 | ||||||||||||
Deposits - non-interest bearing | 602 | 55,036 | ||||||||||||||
Total deposits | $ | 10,540,555 | $ | 9,001,550 | ||||||||||||
Interest Bearing | ||||||||||||||||
Interest bearing deposits as of December 31, 2014 and 2013 consisted of non-maturity savings deposits, brokered and retail certificates of deposit, as discussed further below, and brokered money market deposits. These deposit products are serviced by third party providers. Placement fees associated with the brokered certificates of deposit are amortized into interest expense using the effective interest rate method. We recognized placement fee expense of $10,264, $9,754, and $8,416 in the years ended December 31, 2014, 2013 and 2012, respectively. Fees paid to third party brokers related to these certificates of deposit were $15,198, $12,114, and $16,484 during the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||||||
In the past, we offered debit cards associated with interest bearing consumer deposit (“NOW”) accounts to facilitate the distribution of financial aid refunds and other payables to students. These debit cards were serviced by third party providers. As of April 30, 2014, we no longer offer these debit cards. | ||||||||||||||||
Interest bearing deposits at December 31, 2014 and 2013 are summarized as follows: | ||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Amount | Year-End Weighted Average Stated Rate | Amount | Year-End Weighted Average Stated Rate | |||||||||||||
Money market | $ | 4,527,448 | 1.15 | % | $ | 3,212,889 | 0.65 | % | ||||||||
Savings | 703,687 | 0.81 | % | 743,742 | 0.81 | % | ||||||||||
NOW | — | — | % | 18,214 | 0.12 | % | ||||||||||
Certificates of deposit | 5,308,818 | 1 | % | 4,971,669 | 1.39 | % | ||||||||||
Deposits - interest bearing | $ | 10,539,953 | $ | 8,946,514 | ||||||||||||
Certificates of deposit maturities are summarized as follows: | ||||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
One year or less | $ | 1,717,891 | $ | 2,030,190 | ||||||||||||
After one year to two years | 1,038,778 | 1,303,106 | ||||||||||||||
After two years to three years | 948,490 | 675,405 | ||||||||||||||
After three years to four years | 846,976 | 538,117 | ||||||||||||||
After four years to five years | 577,827 | 424,851 | ||||||||||||||
After five years | 178,856 | — | ||||||||||||||
Total | $ | 5,308,818 | $ | 4,971,669 | ||||||||||||
As of December 31, 2014 and 2013, there were $253,953 and $159,637 of deposits exceeding Federal Deposit Insurance Corporation (“FDIC”) insurance limits. Accrued interest on deposits was $16,082 and $13,097 at December 31, 2014 and 2013, respectively. | ||||||||||||||||
Non Interest Bearing | ||||||||||||||||
Non interest bearing deposits were $602 and $55,036 as of December 31, 2014 and 2013, respectively. For both periods these were comprised of money market accounts. The December 31, 2014 balance is related to our Employee Stock Purchase Plan account. See Note 14, “Stock Based Compensation Plans and Arrangements” for additional details regarding this plan. |
AssetBacked_Commercial_Paper_F
Asset-Backed Commercial Paper Funding Facility | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Credit Facility | Asset-Backed Commercial Paper Funding Facility |
On December 19, 2014, we closed a new $750 million private asset backed commercial paper (“ABCP”) education loan funding facility. Under FDIC guidelines, we are required to retain a 5 percent or $37.5 million ownership interest in the facility resulting in $712.5 million of funds being available for Private Education Loan originations. The new facility had not been drawn on as of December 31, 2014 and the facility’s scheduled maturity date is December 18, 2015. |
Borrowed_Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2014 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Borrowed Funds |
We maintain discretionary uncommitted Federal Funds lines of credit with various correspondent banks, which totaled $100,000 at December 31, 2014. The interest rate charged to the Company on these lines of credit is priced at Fed Funds plus a spread at the time of borrowing, and is payable daily. We did not utilize these lines of credit in 2014, 2013 and 2012. | |
We established an account at the FRB to meet eligibility requirements for access to the Primary Credit borrowing facility at the FRB’s Discount Window (“Window”). All borrowings at the Window must be fully collateralized. We pledged asset-backed and mortgage-backed securities, as well as FFELP Loans and Private Education Loans to the FRB as collateral for borrowings at the Window. Generally, collateral value is assigned based on the estimated fair value of the pledged assets. At December 31, 2014 and 2013, the lendable value of our collateral at the FRB totaled $1,398,286 and $900,217, respectively. The interest rate charged to us is the discount rate set by the FRB. We did not utilize this facility in 2014 and 2013. |
Derivative_Financial_Instrumen
Derivative Financial Instruments | 12 Months Ended | ||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||
Derivative Financial Instruments | Derivative Financial Instruments | ||||||||||||||||||||||||||||||||||
Risk Management Strategy | |||||||||||||||||||||||||||||||||||
We maintain an overall interest rate risk management strategy that incorporates the use of derivative instruments to minimize the economic effect of interest rate changes. Our goal is to manage interest rate sensitivity by modifying the repricing frequency and underlying index characteristics of certain balance sheet liabilities so the net interest margin is not, on a material basis, adversely affected by movements in interest rates. As a result of interest rate fluctuations, hedged liabilities will appreciate or depreciate in market value or create variability in cash flows. Income or loss on the derivative instruments that are linked to the hedged item will generally offset the effect of this unrealized appreciation or depreciation or volatility in cash flows for the period the item is being hedged. We view this strategy as a prudent management of interest rate risk. | |||||||||||||||||||||||||||||||||||
Although we use derivatives to offset (or minimize) the risk of interest rate changes, the use of derivatives does expose us to both market and credit risk. Market risk is the chance of financial loss resulting from changes in interest rates and market liquidity. Credit risk is the risk that a counterparty will not perform its obligations under a contract and it is limited to the loss of the fair value gain in a derivative that the counterparty owes us less collateral held or plus collateral posted. When the fair value of a derivative contract less collateral held or plus collateral posted is negative, we owe the counterparty and, therefore, we have no credit risk exposure to the counterparty; however, the counterparty has exposure to us. We minimize the credit risk in derivative instruments by entering into transactions with highly rated counterparties that are reviewed regularly by our Credit Department. We also maintain a policy of requiring that all derivative contracts be governed by an International Swaps and Derivative Association Master Agreement. Depending on the nature of the derivative transaction, bilateral collateral arrangements generally are required as well. When we have more than one outstanding derivative transaction with the counterparty, and there exists legally enforceable netting provisions with the counterparty (i.e., a legal right to offset receivable and payable derivative contracts), the “net” mark-to-market exposure, less collateral held or plus collateral posted, represents exposure with the counterparty. When there is a net negative exposure, we consider our exposure to the counterparty to be zero. At December 31, 2014 and 2013, we had a net positive exposure (derivative gain positions to us less collateral which has been posted by counterparties to us) related to derivatives of $60,784 and $3,517, respectively. | |||||||||||||||||||||||||||||||||||
Accounting for Derivative Instruments | |||||||||||||||||||||||||||||||||||
Derivative instruments that are used as part of our interest rate risk management strategy are interest rate swaps. The accounting for derivative instruments requires that every derivative instrument, including certain derivative instruments embedded in other contracts, be recorded on the balance sheet as either an asset or liability measured at fair value. Our derivative instruments are classified and accounted for by us as fair value hedges and cash flow hedges. | |||||||||||||||||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||||||||||||||
Fair value hedges are generally used by us to hedge the exposure to changes in fair value of a recognized fixed-rate liability. We enter into interest rate swaps to economically convert fixed-rate debt into variable rate debt. For fair value hedges, we generally consider all components of the derivative’s gain and/or loss when assessing hedge effectiveness and generally hedge changes in fair values due to interest rates. | |||||||||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||||||||
We use cash flow hedges to hedge the exposure to variability in cash flows of floating rate deposits. This strategy is used primarily to minimize the exposure to volatility in cash flows from future changes in interest rates. Gains and losses on the effective portion of a qualifying hedge are recorded in accumulated other comprehensive income and ineffectiveness is recorded immediately to earnings. In assessing hedge effectiveness, generally all components of each derivative’s gains or losses are included in the assessment. We hedge exposure to changes in cash flows due to changes in interest rates or total changes in cash flow. | |||||||||||||||||||||||||||||||||||
Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our variable rate deposits. During the next twelve months, we estimate that $19.8 million will be reclassified as an increase to interest expense. | |||||||||||||||||||||||||||||||||||
Trading Activities | |||||||||||||||||||||||||||||||||||
When derivative instruments do not qualify for hedge accounting treatment, they are accounted for at fair value with all changes in fair value recorded through earnings. All our derivative instruments entered into after December 31, 2013, with a maturity of less than 3 years, are economically hedging risk but do not receive hedge accounting treatment. Trading derivatives also include any hedges that originally received hedge accounting treatment, but lost hedge accounting treatment due to failed effectiveness testing, as well as the activity of certain derivatives prior to them receiving hedge accounting treatment. | |||||||||||||||||||||||||||||||||||
Summary of Derivative Financial Statement Impact | |||||||||||||||||||||||||||||||||||
The following tables summarize the fair values and notional amounts of all derivative instruments at December 31, 2014 and 2013, and their impact on other comprehensive income and earnings for the years ended December 31, 2014, 2013 and 2012. | |||||||||||||||||||||||||||||||||||
Impact of Derivatives on the Consolidated Balance Sheet | |||||||||||||||||||||||||||||||||||
Cash Flow Hedges | Fair Value Hedges | Trading | Total | ||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Fair Values(1) | Hedged Risk Exposure | ||||||||||||||||||||||||||||||||||
Derivative Assets:(2) | |||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate | $ | — | $ | — | $ | 5,012 | $ | 6,335 | $ | 226 | $ | 426 | $ | 5,238 | $ | 6,761 | ||||||||||||||||||
Derivative Liabilities:(2) | |||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate | (21,435 | ) | — | (5,883 | ) | (6,149 | ) | (1,370 | ) | — | (28,688 | ) | (6,149 | ) | ||||||||||||||||||||
Total net derivatives | $ | (21,435 | ) | $ | — | $ | (871 | ) | $ | 186 | $ | (1,144 | ) | $ | 426 | $ | (23,450 | ) | $ | 612 | |||||||||||||||
-1 | 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. | ||||||||||||||||||||||||||||||||||
-2 | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: | ||||||||||||||||||||||||||||||||||
Other Assets | Other Liabilities | ||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
Gross position | $ | 5,238 | $ | 6,761 | $ | (28,688 | ) | $ | (6,149 | ) | |||||||||||||||||||||||||
Impact of master netting agreement | (4,045 | ) | (4,981 | ) | 4,045 | 4,981 | |||||||||||||||||||||||||||||
Derivative values with impact of master netting agreements (as carried on balance sheet) | 1,193 | 1,780 | (24,643 | ) | (1,168 | ) | |||||||||||||||||||||||||||||
Cash collateral (held) pledged(1) | (900 | ) | (5,190 | ) | 72,478 | 40 | |||||||||||||||||||||||||||||
Net position | $ | 293 | $ | (3,410 | ) | $ | 47,835 | $ | (1,128 | ) | |||||||||||||||||||||||||
-1 | Cash collateral amount calculations include outstanding accrued interest payable/receivable. | ||||||||||||||||||||||||||||||||||
Cash Flow | Fair Value | Trading | Total | ||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Notional Values | |||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 1,106,920 | $ | — | $ | 3,044,492 | $ | 2,089,624 | $ | 973,539 | $ | 575,131 | $ | 5,124,951 | $ | 2,664,755 | |||||||||||||||||||
Impact of Derivatives on the Consolidated Statements of Income | |||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||||||||||||||||
Hedge ineffectiveness gains (losses) recorded in earnings | $ | 1,718 | $ | (558 | ) | $ | (6,061 | ) | |||||||||||||||||||||||||||
Realized gains recorded in interest expense | 20,958 | 28,668 | 35,988 | ||||||||||||||||||||||||||||||||
Total | $ | 22,676 | $ | 28,110 | $ | 29,927 | |||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||||||||||||||||
Hedge ineffectiveness losses recorded in earnings | $ | (520 | ) | $ | — | $ | — | ||||||||||||||||||||||||||||
Realized losses recorded in interest expense | (9,070 | ) | — | — | |||||||||||||||||||||||||||||||
Total | $ | (9,590 | ) | $ | — | $ | — | ||||||||||||||||||||||||||||
Trading | |||||||||||||||||||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||||||||||||||||
Interest reclassification | $ | (2,250 | ) | $ | 1,285 | $ | 87 | ||||||||||||||||||||||||||||
Change in fair value of future interest payments recorded in earnings | (2,944 | ) | (87 | ) | 513 | ||||||||||||||||||||||||||||||
Total(1) | (5,194 | ) | 1,198 | 600 | |||||||||||||||||||||||||||||||
Total | $ | 7,892 | $ | 29,308 | $ | 30,527 | |||||||||||||||||||||||||||||
-1 | Amounts included in "gains (losses) on derivatives and hedging activities, net." | ||||||||||||||||||||||||||||||||||
Impact of Derivatives on the Statements of Changes in Stockholders' Equity | |||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Amount of loss recognized in other comprehensive income | $ | (28,842 | ) | $ | — | $ | — | ||||||||||||||||||||||||||||
Amount of loss reclassified in interest expense(1) | (9,070 | ) | — | — | |||||||||||||||||||||||||||||||
Total change in other comprehensive income for unrealized losses on derivatives | $ | (19,772 | ) | $ | — | $ | — | ||||||||||||||||||||||||||||
-1 | Amounts included in “realized gains (losses) recorded in interest expense” in the “Impact of Derivatives on the Consolidated Statements of Income” table. | ||||||||||||||||||||||||||||||||||
Cash Collateral | |||||||||||||||||||||||||||||||||||
Cash collateral held related to derivative exposure between the Company and its derivatives counterparties was $900 and $5,190 at December 31, 2014 and 2013, respectively. Collateral held is recorded in “Other Liabilities.” Cash collateral pledged related to derivative exposure between the Company and its derivatives counterparties was $72,478 and $40 at December 31, 2014 and 2013, respectively. Collateral pledged is recorded in "Other interest-earning assets" on the consolidated balance sheets. |
Stockholders_Equity
Stockholders' Equity | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Stockholders' Equity | 12. Stockholders' Equity | ||||||||||||
Preferred Stock | |||||||||||||
At December 31, 2014, we had outstanding 3.3 million shares of 6.97 percent Cumulative Redeemable Preferred Stock, Series A (the “Series A Preferred Stock”) and 4.0 million shares of Floating-Rate Non-Cumulative Preferred Stock, Series B (the “Series B Preferred Stock”). In connection with the Spin-Off, the Company, by reason of a statutory merger, succeeded pre-Spin-Off SLM and issued Series A Preferred Stock and Series B Preferred Stock, on terms substantially similar to those of pre-Spin-Off SLM's respective series of preferred stock. Neither series has a maturity date but can be redeemed at our option. Redemption would include any accrued and unpaid dividends up to the redemption date. The shares have no preemptive or conversion rights and are not exchangeable for any of our other securities or property. Dividends on both series are not mandatory and are paid quarterly, when, as, and if declared by the Board of Directors. Holders of Series A Preferred Stock are entitled to receive cumulative, quarterly cash dividends at the annual rate of $3.485 per share. Holders of Series B Preferred Stock are entitled to receive quarterly dividends based on 3-month LIBOR plus 170 basis points per annum in arrears. Upon liquidation or dissolution of the Company, holders of the Series A and Series B Preferred Stock are entitled to receive $50 and $100 per share, respectively, plus an amount equal to accrued and unpaid dividends for the then current quarterly dividend period, if any, pro rata, and before any distribution of assets are made to holders of our common stock. | |||||||||||||
Common Stock | |||||||||||||
Our shareholders have authorized the issuance of 1.125 billion shares of common stock (par value of $.20). At December 31, 2014, 423 million shares were issued and outstanding and 60 million shares were unissued but encumbered for outstanding stock options, restricted stock units and dividend equivalent units for employee compensation and remaining authority for stock-based compensation plans. | |||||||||||||
Because of the carve-out accounting treatment, there were no common stock dividends recognized in these financial statements for the years ended December 31, 2014, 2013 and 2012. For additional information, see Note 2, “Significant Accounting Policies — Basis of Presentation.” | |||||||||||||
We currently do not intend to initiate a publicly announced share repurchase program. We only expect to repurchase common stock acquired in connection with taxes withheld in connection with award exercises and vesting under our employee stock-based compensation plans. The following table summarizes our common share repurchases and issuances associated with these programs. | |||||||||||||
Years Ended December 31, | |||||||||||||
(Shares and per share amounts in actuals) | 2014 | 2013 | 2012 | ||||||||||
Shares repurchased related to employee stock-based compensation plans(1) | 1,365,277 | 6,365,002 | 4,547,785 | ||||||||||
Average purchase price per share | $ | 8.93 | $ | 21.76 | $ | 15.86 | |||||||
Common shares issued(2) | 2,013,805 | 9,702,976 | 6,432,643 | ||||||||||
(1) | Comprises 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) | Common shares issued under our various compensation and benefit plans. | ||||||||||||
The closing price of our common stock on December 31, 2014 was $10.19. | |||||||||||||
Investment With Entities That Are Now Subsidiaries of Navient | |||||||||||||
Prior to the Spin-Off, there were transactions between us and affiliates of pre-Spin-Off SLM that are now subsidiaries of Navient. As part of the carve-out, these expenses were included in our results even though the actual payments for the expenses were paid by the aforementioned affiliates. As such, amounts equal to these payments have been treated as equity contributions in the table below. Certain payments made by us to these affiliates prior to the Spin-Off were treated as dividends. | |||||||||||||
Net transfers (to)/from the entity that is now a subsidiary of Navient are included within Navient's subsidiary investment on the consolidated statements of changes in equity. The components of the net transfers (to)/from the entity that is now a subsidiary of Navient are summarized below: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Capital contributions: | |||||||||||||
Loan origination activities | $ | 32,452 | $ | 124,722 | $ | 119,094 | |||||||
Loan sales | 45 | 35 | 13,502 | ||||||||||
Corporate overhead activities | 21,216 | 62,031 | 69,830 | ||||||||||
Special cash contribution | 472,718 | — | — | ||||||||||
Other | 19,650 | 2,004 | 5,429 | ||||||||||
Total capital contributions | 546,081 | 188,792 | 207,855 | ||||||||||
Dividend | — | (120,000 | ) | (420,000 | ) | ||||||||
Corporate push-down | 4,977 | 3,093 | 1,241 | ||||||||||
Net change in income tax accounts | 15,659 | (134,219 | ) | (78,842 | ) | ||||||||
Net change in receivable/payable | (87,277 | ) | (101,044 | ) | (94,264 | ) | |||||||
Other | (31 | ) | — | — | |||||||||
Total net transfers (to)/from the entity that is now a subsidiary of Navient | $ | 479,409 | $ | (163,378 | ) | $ | (384,010 | ) | |||||
Capital Contributions | |||||||||||||
During the years ended December 31, 2014, 2013 and 2012, pre-Spin-Off SLM contributed capital to the Bank by funding loan origination activities, purchases of loans in excess of the loans’ fair values, providing corporate overhead functions and other activities. | |||||||||||||
Capital contributed for loan origination activities reflects the fact that the loan origination function was conducted by a subsidiary of pre-Spin-Off SLM (now a subsidiary of Navient). The Bank did not pay for the costs incurred by pre-Spin-Off SLM in connection with these functions. The costs eligible to be capitalized are recorded on the respective balance sheets and the costs not eligible for capitalization have been recognized as expenses in the respective statements of income. | |||||||||||||
Certain general corporate overhead expenses of the Bank were incurred and paid for by pre-Spin-Off SLM. | |||||||||||||
Corporate Push-Down | |||||||||||||
The consolidated balance sheets include certain assets and liabilities that have historically been held at pre-Spin-Off SLM but which are specifically identifiable or otherwise allocable to the Company. The cash and cash equivalents held by pre-Spin-Off SLM at the corporate level were not allocated to the Bank for any of the periods presented. | |||||||||||||
Receivable/Payable with Affiliate | |||||||||||||
All significant intercompany payable/receivable balances between the Bank and pre-Spin-Off SLM are considered to be effectively settled for cash in the combined financial statements at the time the transaction is recorded. |
Earnings_Per_Common_Share
Earnings Per Common Share | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Earnings Per Common Share | 13. Earnings per Common Share | ||||||||||||
Basic earnings per common share (“EPS”) are calculated using the weighted average number of shares of common stock outstanding during each period. The determination of the weighted-average shares and diluted potential common shares for pre-Spin-Off periods are based on the activity at pre-Spin-Off SLM. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows. | |||||||||||||
Years Ended December 31, | |||||||||||||
(In thousands, except per share data) | 2014 | 2013 | 2012 | ||||||||||
Numerator: | |||||||||||||
Net income attributable to SLM Corporation | $ | 194,219 | $ | 258,945 | $ | 217,620 | |||||||
Preferred stock dividends | 12,933 | — | — | ||||||||||
Net income attributable to SLM Corporation common stock | $ | 181,286 | $ | 258,945 | $ | 217,620 | |||||||
Denominator: | |||||||||||||
Weighted average shares used to compute basic EPS | 423,970 | 440,108 | 476,118 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Dilutive effect of stock options, restricted stock, restricted stock units and Employee Stock Purchase Plan ("ESPP") (1)(2) | 8,299 | 8,441 | 6,774 | ||||||||||
Weighted average shares used to compute diluted EPS | 432,269 | 448,549 | 482,892 | ||||||||||
Basic earnings per common share attributable to SLM Corporation | $ | 0.43 | $ | 0.59 | $ | 0.46 | |||||||
Diluted earnings per common share attributable to SLM Corporation | $ | 0.42 | $ | 0.58 | $ | 0.45 | |||||||
__________ | |||||||||||||
(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 years ended December 31, 2014, 2013 and 2012, securities covering approximately 3 million, 3 million and 12 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. |
StockBased_Compensation_Plans_
Stock-Based Compensation Plans and Arrangements | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Stock-Based Compensation Plans and Arrangements | Stock-Based Compensation Plans and Arrangements | ||||||||||||
Plan Summaries | |||||||||||||
As of December 31, 2014, we had one active stock-based compensation plan that provides for grants of equity awards to our employees and non-employee directors. We also maintained an Employee Stock Purchase Plan (“ESPP”). Shares issued under these stock-based compensation plans may be either shares reacquired by us or shares that are authorized but unissued. | |||||||||||||
The SLM Corporation 2012 Omnibus Incentive Plan was approved by shareholders on May 24, 2012. At December 31, 2014, 32 million shares, as adjusted to reflect the effects of the Spin-Off, were authorized to be issued from this plan. | |||||||||||||
An amendment to our ESPP was approved by our shareholders on May 24, 2012 that authorized the issuance of 6 million shares under the plan and kept the terms of the plan substantially the same. The number of shares authorized under the plan was subsequently adjusted to 15 million shares on June 25, 2014, to reflect the effects of the Spin-Off. | |||||||||||||
Effect of Spin-Off on Equity Awards | |||||||||||||
In connection with the Spin-Off of Navient, we made certain adjustments to the exercise price and number of our stock-based compensation awards with the intention of preserving the intrinsic value of the outstanding awards held by Sallie Mae officers and employees prior to the Spin-Off. In general, holders of awards granted prior to 2014 received both Sallie Mae and Navient equity awards, and holders of awards granted in 2014 received solely equity awards of their post-Spin-Off employer. Stock options, restricted stock, restricted stock units, performance stock units and dividend equivalent units were adjusted into equity in the new companies by a specific conversion ratio per company, which was based upon the volume weighted average prices for each company at the time of the Spin-Off, in an effort to keep the value of the equity awards constant. Our performance stock units with vesting contingent upon performance were replaced with time-vesting restricted stock units. These adjustments were accounted for as modifications to the original awards. In general, the Sallie Mae and Navient awards will be subject to substantially the same terms and conditions as the original pre-Spin-Off SLM awards. A comparison of the fair value of the modified awards with the fair value of the original awards immediately before the modification resulted in approximately $64 of incremental expense related to fully-vested stock option awards and was expensed immediately and $630 of incremental compensation expense related to unvested restricted stock and restricted stock units which will be recorded over the remaining vesting period of the equity awards. The Spin-Off Adjustments are reflected in the tables below. | |||||||||||||
Stock-Based Compensation | |||||||||||||
The total stock-based compensation cost recognized in the consolidated statements of income for the years ended December 31, 2014, 2013 and 2012 was $24,971, $15,681 and $19,102, respectively. As of December 31, 2014, there was $15,174 of total unrecognized compensation expense related to unvested stock awards net of estimated forfeitures, which is expected to be recognized over a weighted average period of 2.2 years. We amortize compensation expense on a straight-line basis over the related vesting periods of each tranche of each award. | |||||||||||||
Stock Options | |||||||||||||
Stock options granted prior to 2012 expire 10 years after the grant date, and those granted since 2012 expire in 5 years. The exercise price must be equal to or greater than the market price of our common stock on the grant date. We have granted time-vested, price-vested and performance-vested options to our employees and non-employee directors. Time-vested options granted to management and non-management employees generally vest over three years. Price-vested options granted to management employees vest upon our common stock reaching a targeted closing price for a set number of days. Performance-vested options granted to management employees vest one-third per year for three years based on corporate earnings-related performance targets. Options granted to non-employee directors vest upon the director’s election to the Board. | |||||||||||||
The fair values of the options granted in the years ended December 31, 2014, 2013 and 2012 were estimated as of the grant date using a Black-Scholes option pricing model with the following weighted average assumptions: | |||||||||||||
Years Ended December 31, | |||||||||||||
(Dollars per share) | 2014 | 2013 | 2012 | ||||||||||
Risk-free interest rate | 0.76 | % | 0.65 | % | 0.6 | % | |||||||
Expected volatility | 26 | % | 31 | % | 44 | % | |||||||
Expected dividend rate | 2.48 | % | 3.35 | % | 3.13 | % | |||||||
Expected life of the option | 2.9 years | 2.8 years | 2.8 years | ||||||||||
Weighted average fair value of options granted | $ | 3.48 | $ | 3.11 | $ | 4.12 | |||||||
The expected life of the options is based on observed historical exercise patterns. Groups of employees (and non-employee directors) that have received similar option grant terms are considered separately for valuation purposes. The expected volatility is based on implied volatility from publicly traded options on our stock at the grant date and historical volatility of our stock consistent with the expected life of the option. The risk-free interest rate is based on the U.S. Treasury spot rate at the grant date consistent with the expected life of the option. The dividend yield is based on the projected annual dividend payment per share based on the dividend amount at the grant date, divided by the stock price at the grant date. | |||||||||||||
The following table summarizes stock option activity for the year ended December 31, 2014. | |||||||||||||
(Dollars in thousands, except per share data) | Number of | Weighted | Weighted | Aggregate | |||||||||
Options | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value(1) | |||||||||||
Price per | Contractual | ||||||||||||
Share | Term | ||||||||||||
Outstanding at December 31, 2013 | 3,851,120 | $ | 14.6 | ||||||||||
Granted | 16,132 | 24.24 | |||||||||||
Exercised(2)(3) | (2,196,575 | ) | 6.19 | ||||||||||
Canceled | (148,159 | ) | 21.86 | ||||||||||
Spin-Off adjustment(4) | 14,632,601 | 8.22 | |||||||||||
Outstanding at December 31, 2014(5)(6) | 16,155,119 | $ | 9.91 | 3.2 years | $ | 62,144 | |||||||
Exercisable at December 31, 2014 | 12,985,828 | $ | 8.32 | 3.2 years | $ | 50,154 | |||||||
(1) | The aggregate intrinsic value represents the total intrinsic value (the aggregate difference between our closing stock price on December 31, 2014 and the exercise price of in-the-money options) that would have been received by the option holders if all in-the-money options had been exercised on December 31, 2014. | ||||||||||||
(2) | The total intrinsic value of options exercised was $11,430, $8,467 and $5,410 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
(3) | Cash of Fifty-three thousand was received from option exercises for the year ended December 31, 2014. The actual tax benefit realized for the tax deductions from option exercises totaled $4,853 for the year ended December 31, 2014. | ||||||||||||
(4) | Represents the adjustment to preserve the intrinsic value of the outstanding equity awards held by SLM and Navient employees. | ||||||||||||
(5) | As of December 31, 2014, there was $362 of unrecognized compensation cost related to stock options net of estimated forfeitures, which is expected to be recognized over a weighted average period of 1.0 year. | ||||||||||||
(6) | For net-settled options, gross number is reflected. | ||||||||||||
Restricted Stock | |||||||||||||
Restricted stock awards generally vest over three years and in some cases based on corporate earnings-related performance targets. Outstanding restricted stock is entitled to dividend equivalent units that vest subject to the same vesting requirements or lapse of transfer restrictions, as applicable, as the underlying restricted stock award. The fair value of restricted stock awards is based on our stock price at the grant date. | |||||||||||||
The following table summarizes restricted stock activity for the year ended December 31, 2014. | |||||||||||||
(Amounts in thousands, except per share data) | Number of | Weighted | |||||||||||
Shares | Average Grant | ||||||||||||
Date | |||||||||||||
Fair Value | |||||||||||||
Non-vested at December 31, 2013 | 33,333 | $ | 12.81 | ||||||||||
Granted | 49,123 | 9.46 | |||||||||||
Vested(1) | (33,333 | ) | 12.81 | ||||||||||
Canceled | (684 | ) | 21.91 | ||||||||||
Spin-Off adjustment(2) | 6,529 | 7.89 | |||||||||||
Non-vested at December 31, 2014(3) | 54,968 | $ | 9.12 | ||||||||||
(1) | The total fair value of shares that vested during the years ended December 31, 2014, 2013 and 2012 was $427, $592 and $1,189, respectively. | ||||||||||||
(2) | Represents the adjustment to preserve the intrinsic value of the outstanding equity awards held by SLM and Navient employees. | ||||||||||||
(3) | As of December 31, 2014, there was $188 of unrecognized compensation cost related to restricted stock net of estimated forfeitures, which is expected to be recognized over a weighted average period of 0.5 years. | ||||||||||||
Restricted Stock Units and Performance Stock Units | |||||||||||||
Restricted stock units (“RSUs”) and performance stock units (“PSUs”) are equity awards granted to employees that entitle the holder to shares of our common stock when the award vests. RSUs may be time-vested over three years or vested at grant but subject to transfer restrictions, while PSUs vest based on corporate earnings-related performance targets over a three-year period. In April 2014, our PSUs with vesting contingent upon performance were replaced with time-vesting RSUs. This conversion was made prior to the Spin-Off and was assessed to yield no incremental expense. | |||||||||||||
Outstanding RSUs are entitled to dividend equivalent units that vest subject to the same vesting requirements or lapse of transfer restrictions, as applicable, as the underlying award. The fair value of RSUs is based on our stock price at the grant date. | |||||||||||||
The following table summarizes RSU and PSU activity for the year ended December 31, 2014. | |||||||||||||
(Amounts in thousands, except per share data) | Number of | Weighted | |||||||||||
RSUs/ | Average Grant | ||||||||||||
PSUs | Date | ||||||||||||
Fair Value | |||||||||||||
Outstanding at December 31, 2013 | 1,421,007 | $ | 16.82 | ||||||||||
Granted | 1,904,169 | 18.3 | |||||||||||
Vested and converted to common stock(1) | (750,707 | ) | 16.83 | ||||||||||
Canceled | (367,684 | ) | 17.7 | ||||||||||
Spin-Off adjustment(2) | 4,072,958 | 7.16 | |||||||||||
Outstanding at December 31, 2014(3) | 6,279,743 | $ | 10.95 | ||||||||||
(1) | The total fair value of RSUs/PSUs that vested and converted to common stock during the years ended December 31, 2014, 2013 and 2012 was $12,636, $6,415 and $2,656, respectively. | ||||||||||||
(2) | This represents the adjustment to preserve the intrinsic value of the outstanding equity awards held by SLM and Navient employees. | ||||||||||||
(3) | As of December 31, 2014, there was $14,506 of unrecognized compensation cost related to RSUs net of estimated forfeitures, which is expected to be recognized over a weighted average period of 2.3 years. | ||||||||||||
Employee Stock Purchase Plan | |||||||||||||
In the third quarter of 2014, we resumed offering the opportunity for employees to enroll in our ESPP. Employees may purchase shares of our common stock at the end of a 12-month offering period at a price equal to the share price at the beginning of the 12-month period, less 15 percent, up to a maximum purchase price of $7,500 (whole dollars). The purchase price for each offering is determined at the beginning of the offering period on August 1, 2014. | |||||||||||||
The fair values of the stock purchase rights of the ESPP offerings were calculated using a Black-Scholes option pricing model with the following weighted average assumptions. | |||||||||||||
Years Ended December 31, | |||||||||||||
(Dollars per share) | 2014 | 2013 | 2012 | ||||||||||
Risk-free interest rate | 0.13 | % | 0.15 | % | 0.13 | % | |||||||
Expected volatility | 25 | % | 29 | % | 29 | % | |||||||
Expected dividend rate | — | % | 3.51 | % | 3.27 | % | |||||||
Expected life of the option | 1 year | 1 year | 1 year | ||||||||||
Weighted average fair value of stock purchase rights | $ | 1.66 | $ | 2.95 | $ | 3.01 | |||||||
The expected volatility is based on implied volatility from publicly traded options on our stock at the grant date and historical volatility of our stock consistent with the expected life. The risk-free interest rate is based on the U.S. Treasury spot rate at the grant date consistent with the expected life. The dividend yield is based on the projected annual dividend payment per share based on the current dividend amount at the grant date divided by the stock price at the grant date. | |||||||||||||
The fair values were amortized to compensation cost on a straight-line basis over a one-year vesting period. As of December 31, 2014, there was $118 of unrecognized compensation cost related to the ESPP net of estimated forfeitures, which is expected to be recognized by July 2015. | |||||||||||||
As our ESPP resumed in late 2014, no shares were purchased for the year ended December 31, 2014. During the years ended December 31, 2013 and 2012, plan participants purchased 47,176 shares and 34,729 shares, respectively, of our common stock. |
Fair_Value_Measurements
Fair Value Measurements | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair Value Measurements | Fair Value Measurements | |||||||||||||||||||||||||||||||
We use estimates of fair value in applying various accounting standards for our financial statements. | ||||||||||||||||||||||||||||||||
We categorize our fair value estimates based on a hierarchal framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. For additional information regarding our policies for determining fair value and the hierarchical framework, see Note 2, “Significant Accounting Policies — Fair Value Measurement.” | ||||||||||||||||||||||||||||||||
The following table summarizes the valuation of our financial instruments that are marked-to-fair value on a recurring basis. | ||||||||||||||||||||||||||||||||
Fair Value Measurements on a Recurring Basis | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | — | $ | 168,934 | $ | — | $ | 168,934 | $ | — | $ | 102,105 | $ | — | $ | 102,105 | ||||||||||||||||
Derivative instruments | — | 5,238 | — | 5,238 | — | 6,761 | — | 6,761 | ||||||||||||||||||||||||
Total | $ | — | $ | 174,172 | $ | — | $ | 174,172 | $ | — | $ | 108,866 | $ | — | $ | 108,866 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative instruments | $ | — | $ | (28,688 | ) | $ | — | $ | (28,688 | ) | $ | — | $ | (6,149 | ) | $ | — | $ | (6,149 | ) | ||||||||||||
Total | $ | — | $ | (28,688 | ) | $ | — | $ | (28,688 | ) | $ | — | $ | (6,149 | ) | $ | — | $ | (6,149 | ) | ||||||||||||
The following table summarizes the change in balance sheet carrying value associated with level 3 financial instruments carried at fair value on a recurring basis. | ||||||||||||||||||||||||||||||||
Asset-Backed Securities | ||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Balance, beginning of period | $ | — | $ | 532,155 | $ | 498,657 | ||||||||||||||||||||||||||
Total gains/(losses) (realized and unrealized): | ||||||||||||||||||||||||||||||||
Included in earnings | — | (21,490 | ) | 23,149 | ||||||||||||||||||||||||||||
Included in other comprehensive income | — | 63,813 | — | |||||||||||||||||||||||||||||
Included in earnings - accretion of discount | — | 7,596 | 10,349 | |||||||||||||||||||||||||||||
Proceeds from sale | — | (582,074 | ) | — | ||||||||||||||||||||||||||||
Transfers in and/or out of level 3 | — | — | — | |||||||||||||||||||||||||||||
Balance, end of period | $ | — | $ | — | $ | 532,155 | ||||||||||||||||||||||||||
Change in unrealized gains/(losses) relating to instruments still held at the reporting date | $ | — | $ | — | $ | 23,149 | ||||||||||||||||||||||||||
The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Fair | Carrying | Difference | Fair | Carrying | Difference | |||||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||||||
Earning assets | ||||||||||||||||||||||||||||||||
Loans held for investment, net | $ | 10,228,399 | $ | 9,509,786 | $ | 718,613 | $ | 8,541,919 | $ | 7,931,377 | $ | 610,542 | ||||||||||||||||||||
Cash and cash equivalents | 2,359,780 | 2,359,780 | — | 2,182,865 | 2,182,865 | — | ||||||||||||||||||||||||||
Available for sale investments | 168,934 | 168,934 | — | 102,105 | 102,105 | — | ||||||||||||||||||||||||||
Accrued interest receivable | 469,697 | 469,697 | — | 356,283 | 356,283 | — | ||||||||||||||||||||||||||
Tax indemnification receivable | 240,311 | 240,311 | — | — | — | — | ||||||||||||||||||||||||||
Derivative instruments | 5,238 | 5,238 | — | 6,761 | 6,761 | — | ||||||||||||||||||||||||||
Total earning assets | $ | 13,472,359 | $ | 12,753,746 | $ | 718,613 | $ | 11,189,933 | $ | 10,579,391 | $ | 610,542 | ||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||
Money-market, savings and NOW accounts | $ | 5,231,736 | $ | 5,231,736 | $ | — | $ | 4,029,881 | $ | 4,029,881 | $ | — | ||||||||||||||||||||
Certificates of deposit | 5,313,645 | 5,308,818 | (4,827 | ) | 4,984,114 | 4,971,669 | (12,445 | ) | ||||||||||||||||||||||||
Accrued interest payable | 16,082 | 16,082 | — | 13,097 | 13,097 | — | ||||||||||||||||||||||||||
Derivative instruments | 28,688 | 28,688 | — | 6,149 | 6,149 | — | ||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 10,590,151 | $ | 10,585,324 | (4,827 | ) | $ | 9,033,241 | $ | 9,020,796 | $ | (12,445 | ) | |||||||||||||||||||
Excess of net asset fair value over carrying value | $ | 713,786 | $ | 598,097 | ||||||||||||||||||||||||||||
The methods and assumptions used to estimate the fair value of each class of financial instruments are as follows: | ||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | ||||||||||||||||||||||||||||||||
Cash and cash equivalents are carried at cost. Carrying value approximated fair value for disclosure purposes. These are level 1 valuations. | ||||||||||||||||||||||||||||||||
Investments | ||||||||||||||||||||||||||||||||
Investments are classified as available-for-sale and are carried at fair value in the financial statements. Investments in mortgage-backed securities are valued using observable market prices of similar assets. As such, these are level 2 valuations. | ||||||||||||||||||||||||||||||||
Loans Held For Investment | ||||||||||||||||||||||||||||||||
Our Private Education Loans and FFELP Loans are accounted for at cost or at the lower of cost or market if the loan is held-for-sale. For both Private Education Loans and FFELP Loans, fair value was determined by modeling expected loan level cash flows using stated terms of the assets and internally developed assumptions to determine aggregate portfolio yield, net present value and average life. The significant assumptions used to determine fair value are prepayment speeds, default rates, cost of funds and required return on equity. We regularly calibrate these models to take into account relevant transactions in the marketplace. Significant inputs into the model are not observable. However, we do calibrate the model based on market transactions when appropriate. As such, these are level 3 valuations. | ||||||||||||||||||||||||||||||||
Accrued Interest Receivable | ||||||||||||||||||||||||||||||||
Accrued interest receivable is carried at cost. The carrying value approximates fair value due to its short-term nature. This is a level 1 valuation. | ||||||||||||||||||||||||||||||||
Tax Indemnification Receivable | ||||||||||||||||||||||||||||||||
Tax indemnification receivable is carried at cost. The carrying value approximates fair value. This is a level 1 valuation. | ||||||||||||||||||||||||||||||||
Money Market, Savings Accounts and NOW Accounts | ||||||||||||||||||||||||||||||||
The fair value of money market, savings, and NOW accounts equal the amounts payable on demand at the balance sheet date and are reported at their carrying value. These are level 1 valuations. | ||||||||||||||||||||||||||||||||
Certificates of Deposit | ||||||||||||||||||||||||||||||||
The fair value of certificates of deposit are estimated using discounted cash flows based on rates currently offered for deposits of similar remaining maturities. These are level 2 valuations. | ||||||||||||||||||||||||||||||||
Accrued Interest Payable | ||||||||||||||||||||||||||||||||
Accrued interest payable is carried at cost. The carrying value approximates fair value due to its short-term nature. This is a level 1 valuation. | ||||||||||||||||||||||||||||||||
Derivatives | ||||||||||||||||||||||||||||||||
All derivatives are accounted for at fair value in the financial statements. The fair value of derivative financial instruments was determined by a standard derivative pricing and option model using the stated terms of the contracts and observable market inputs. It is our policy to compare the derivative fair values to those received from our counterparties in order to evaluate the model’s outputs. | ||||||||||||||||||||||||||||||||
When determining the fair value of derivatives, we take into account counterparty credit risk for positions where we are exposed to the counterparty on a net basis by assessing exposure net of collateral held. When the counterparty has exposure to us under derivative contracts with the Company, we fully collateralize the exposure (subject to certain thresholds). | ||||||||||||||||||||||||||||||||
Interest rate swaps are valued using a standard derivative cash flow model with a LIBOR swap yield curve which is an observable input from an active market. These derivatives are level 2 fair value estimates in the hierarchy. | ||||||||||||||||||||||||||||||||
The carrying value of borrowings designated as the hedged item in a fair value hedge is adjusted for changes in fair value due to changes in the benchmark interest rate (one-month LIBOR). These valuations are determined through standard pricing models using the stated terms of the borrowings and observable yield curves. |
Arrangements_with_Navient_Corp
Arrangements with Navient Corporation | 12 Months Ended | |
Dec. 31, 2014 | ||
Related Party Transactions [Abstract] | ||
Arrangements with Navient Corporation | Arrangements with Navient Corporation | |
In connection with the Spin-Off, the Company entered into a separation and distribution agreement with Navient (the “Separation and Distribution Agreement”). In connection therewith, the Company also entered into various other ancillary agreements with Navient to effect the Spin-Off and provide a framework for its relationship with Navient thereafter, such as a transition services agreement, a tax sharing agreement, an employee matters agreement, a loan servicing and administration agreement, a joint marketing agreement, a key services agreement, a data sharing agreement and a master sublease agreement. The majority of these agreements are transitional in nature with most having terms of two years or less from the date of the Spin-Off. | ||
We continue to have significant exposures to risks related to Navient’s loan originations and its creditworthiness. If we are unable to obtain services, complete the transition of our origination operations as planned, or obtain indemnification payments from Navient, we could experience higher than expected costs and operating expenses and our results of operations and financial condition could be materially and adversely affected. | ||
We briefly summarize below some of the most significant agreements and relationships we continue to have with Navient. For additional information regarding the Separation and Distribution Agreement and the other ancillary agreements, see our Current Report on Form 8-K filed on May 2, 2014. | ||
Separation and Distribution Agreement | ||
The Separation and Distribution Agreement addresses, among other things, the following ongoing activities: | ||
• | the obligation of each party to indemnify the other against liabilities retained or assumed by that party pursuant to the Separation and the Distribution Agreement and in connection with claims of third parties; | |
• | the allocation among the parties of rights and obligations under insurance policies; | |
• | the agreement of the Company and Navient (i) not to engage in certain competitive business activities for a period of five years, (ii) as to the effect of the non-competition provisions on post-spin merger and acquisition activities of the parties and (iii) regarding “first look” opportunities; and | |
• | the creation of a governance structure, including a separation oversight committee of representatives from the Company and Navient, by which matters related to the separation and other transactions contemplated by the separation and distribution agreement will be monitored and managed. | |
Transition Services | ||
During a transition period, Navient and its affiliates provided the Bank with significant servicing capabilities with respect to Private Education Loans held by the Company and its subsidiaries. On October 13, 2014, we transitioned the Private Education Loan servicing to our own platform. The last remaining significant operational transition left to be completed is the transition of the loan origination function. We anticipate the completion of this transition to occur in the first half of 2015. Beyond this transition period, it is currently anticipated that Navient will continue to service Private Education Loans owned by the Company or its subsidiaries with respect to individual borrowers who also have Private Education Loans which are owned by Navient, in order to optimize the customer’s experience. In addition, Navient will continue to service and collect the Bank’s portfolio of FFELP Loans indefinitely. | ||
Indemnification Obligations | ||
Navient has also agreed to be responsible, and indemnify us, for all claims, actions, damages, losses or expenses that may arise from the conduct of all activities of pre-Spin-Off SLM occurring prior to the Spin-Off other than those specifically excluded in the Separation and Distribution Agreement. Some significant examples of the types of indemnification obligations Navient has under the Separation and Distribution Agreement and related ancillary agreements include: | ||
• | 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 December 31, 2014 is $224 million. In addition, Navient has agreed to indemnify us for tax assessments incurred related to identified uncertain tax positions taken prior to the date of the Spin-Off. At December 31, 2014, we have recorded a receivable of $16 million related to this indemnification. | |
• | Navient has responsibility to assume new or ongoing litigation matters relating to the conduct of most pre-Spin-Off SLM businesses operated or conducted prior to the Spin-Off. | |
• | At the time of this filing, the Bank remains subject to a Consent Order, Order to Pay Restitution and Order to Pay Civil Money Penalty dated May 13, 2014 issued by the FDIC (the “2014 FDIC Order”). The 2014 FDIC Order replaces a prior cease and desist order jointly issued in August 2008 by the FDIC and the Utah Department of Financial Institutions (“UDFI”) which was terminated on July 15, 2014. Specifically, on May 13, 2014, the Bank reached settlements with the FDIC and the Department of Justice (the “DOJ”) regarding disclosures and assessments of certain late fees, as well as compliance with the Servicemembers Civil Relief Act (“SCRA”). The DOJ Order was approved by the U.S. District Court for the District of Delaware on September 29, 2014. Under the FDIC’s 2014 Order, the Bank agreed to pay $3.3 million in fines and oversee the refund of up to $30 million in late fees assessed on loans owned or originated by the Bank since its inception in November 2005. Navient is responsible for funding all liabilities, restitution and compensation under orders such as these, other than fines directly levied against the Bank. | |
Long-Term Arrangements | ||
The Loan Servicing and Administration Agreement governs the terms by which Navient provides servicing, administration and collection services for the Bank’s portfolio of FFELP Loans and Private Education Loans, as well as servicing history information with respect to Private Education Loans previously serviced by Navient and access to certain promissory notes in Navient’s possession. The loan servicing and administration agreement has a fixed term with a renewal option in favor of the Bank. | ||
The Data Sharing Agreement states the Bank will continue to have the right to obtain from Navient certain post-Spin-Off performance data relating to Private Education Loans owned or serviced by Navient to support and facilitate ongoing underwriting, originations, forecasting, performance and reserve analyses. | ||
The Tax Sharing Agreement governs the respective rights, responsibilities and obligations of the Company and Navient after the Spin-Off relating to taxes, including with respect to the payment of taxes, the preparation and filing of tax returns and the conduct of tax contests. Under this agreement, each party is generally liable for taxes attributable to its business. The agreement also addresses the allocation of tax liabilities that are incurred as a result of the Spin-Off and related transactions. Additionally, the agreement restricts the parties from taking certain actions that could prevent the Spin-Off from qualifying for the anticipated tax treatment. | ||
Amended Loan Participation and Purchase Agreement | ||
Prior to the Spin-Off, the Bank sold substantially all of its Private Education Loans to several former affiliates, now subsidiaries of Navient (collectively, the “Purchasers”), pursuant to this agreement. This agreement predates the Spin-Off but has been significantly amended and reduced in scope in connection with the Spin-Off. Post-Spin-Off, the Bank retains only the right to require the Purchasers to purchase loans (at fair value) for which the borrower also has a separate lending relationship with Navient (“Split Loans”) when the Split Loans either (1) are more than 90 days past due; (2) have been restructured; (3) have been granted a hardship forbearance or more than 6 months of administrative forbearance; or (4) have a borrower or cosigner who has filed for bankruptcy. At December 31, 2014, we held approximately $117 million of Split Loans. | ||
During the year ended December 31, 2014, the Bank separately sold loans to the Purchasers in the amount of $804,733 in principal and $5,683 in accrued interest income. During the years ended December 31, 2013 and 2012, the Bank sold loans to the Purchasers in the amount of $2,415,846 and $2,640,245, respectively, in principal and $67,018 and $77,685, respectively, in accrued interest income. | ||
The gain resulting from loans sold was $35,848, $196,593 and $235,202 in the years ended December 31, 2014, 2013 and 2012, respectively. Total write-downs to fair value for loans sold with a fair value lower than par totaled $53,484, $68,410 and $28,694 in the years ended December 31, 2014, 2013 and 2012, respectively. Navient is the servicer for all of these loans. |
Regulatory_Capital
Regulatory Capital | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||
Regulatory Capital | Regulatory Capital | |||||||||||||
The Bank is subject to various regulatory capital requirements administered by federal banking authorities. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material adverse effect on our financial condition. Under the regulatory framework for prompt corrective action, we must meet specific capital guidelines that involve quantitative measures of our assets, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk-weightings and other factors. | ||||||||||||||
“Well capitalized” regulatory requirements are the quantitative measures established by regulation to ensure capital adequacy. The Bank is required to maintain minimum amounts and ratios (set forth in the table below) of Total and Tier I Capital to risk-weighted assets and of Tier I Capital to average assets, as defined by the regulation. The following amounts and ratios are based upon the Bank's assets. | ||||||||||||||
Actual | Well Capitalized Regulatory Requirements | |||||||||||||
Amount | Ratio | Amount | Ratio | |||||||||||
As of December 31, 2014: | ||||||||||||||
Tier I Capital (to Average Assets) | $ | 1,413,988 | 11.5 | % | $ | 614,709 | > | 5 | % | |||||
Tier I Capital (to Risk Weighted Assets) | $ | 1,413,988 | 15 | % | $ | 565,148 | > | 6 | % | |||||
Total Capital (to Risk Weighted Assets) | $ | 1,497,830 | 15.9 | % | $ | 941,913 | > | 10 | % | |||||
As of December 31, 2013: | ||||||||||||||
Tier I Capital (to Average Assets) | $ | 1,221,416 | 11.7 | % | $ | 521,973 | > | 5 | % | |||||
Tier I Capital (to Risk Weighted Assets) | $ | 1,221,416 | 16.4 | % | $ | 446,860 | > | 6 | % | |||||
Total Capital (to Risk Weighted Assets) | $ | 1,289,497 | 17.3 | % | $ | 745,374 | > | 10 | % | |||||
Bank Dividends | ||||||||||||||
The Bank is chartered under the laws of the State of Utah and its deposits are insured by the FDIC. The Bank’s ability to pay dividends is subject to the laws of Utah and the regulations of the FDIC. Generally, under Utah’s industrial bank laws and regulations as well as FDIC regulations, the Bank may pay dividends from its net profits without regulatory approval if, following the payment of the dividend, the Bank’s capital and surplus would not be impaired. The Bank paid no dividends for the year ended December 31, 2014. Total dividends paid by the Bank were $120,000 and $420,000 in the years ended December 2013 and 2012, respectively. For the foreseeable future, we expect the Bank to only pay dividends to the Company as may be necessary to provide for regularly scheduled dividends payable on the Company’s Series A and Series B Preferred Stock. |
Defined_Contribution_Plans
Defined Contribution Plans | 12 Months Ended |
Dec. 31, 2014 | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Contribution Plans | Defined Contribution Plans |
We participate in a defined contribution plan which is intended to qualify under section 401(k) of the Internal Revenue Code. The Sallie Mae 401(k) Savings Plan covers substantially all employees. After six months of service, effective January 2013, and after one year of service prior to that time, up to 3 percent of contributions are matched 100 percent with the next 2 percent matched at 50 percent for eligible employees. After one month of service, eligible employees receive a 1 percent core employer contribution. For the years ended December 31, 2014, 2013 and 2012, we contributed $3,084, $2,779 and $2,317, respectively, to this plan. |
Commitments_Contingencies_and_
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2014 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees |
Regulatory Matters | |
At the time of this filing, the Bank remains subject to the 2014 FDIC Order. Specifically, on May 13, 2014, the Bank reached settlements with the FDIC and the DOJ regarding disclosures and assessments of certain late fees, as well as compliance with the SCRA. The DOJ Order was approved by the U.S. District Court for the District of Delaware on September 29, 2014. Under the FDIC’s 2014 Order, the Bank agreed to pay $3.3 million in fines and oversee the refund of up to $30 million in late fees assessed on loans owned or originated by the Bank since its inception in November 2005. | |
Under the terms of the Separation and Distribution Agreement between the Company and Navient, Navient is responsible for funding all liabilities under the regulatory orders, other than fines directly levied against the Bank in connection with these matters. Under the DOJ Order, Navient is solely responsible for reimbursing SCRA benefits and related compensation on behalf of both its subsidiary, Navient Solutions, Inc., and the Bank. | |
In May 2014, the Bank received a Civil Investigative Demand from the CFPB in the Bank’s capacity as a former affiliate of Navient as part of the CFPB’s separate investigation relating to fees and policies of pre-Spin-Off SLM during the period prior to the Spin-Off of Navient. We are cooperating fully with the CFPB but are not in a position at this time to predict the duration or outcome of the investigation. Given the timeframe covered by this demand, Navient would be responsible for all costs, expenses, losses or remediation likely to arise from this investigation. | |
Contingencies | |
In the ordinary course of business, we and our subsidiaries are routinely defendants in or parties to pending and threatened legal actions and proceedings, including actions brought on behalf of various classes of claimants. These actions and proceedings may be based on alleged violations of consumer protection, securities, employment and other laws. In certain of these actions and proceedings, claims for substantial monetary damage may be asserted against us and our subsidiaries. | |
We and our subsidiaries and affiliates are subject to various claims, lawsuits and other actions that arise in the ordinary course of business. In addition, it is common for the Company, our subsidiaries and affiliates to receive information and document requests and investigative demands from state attorneys general, legislative committees, and administrative agencies. These requests may be for informational or regulatory purposes and may relate to our business practices, the industries in which we operate, or other companies with whom we conduct business. Our practice has been and continues to be to cooperate with these bodies and be responsive to any such requests. | |
In view of the inherent difficulty of predicting the outcome of litigation, regulatory and investigative actions, we cannot predict what the eventual outcome of the pending matters will be, what the timing or the ultimate resolution of these matters will be, or what the eventual loss, fines or penalties, if any, related to each pending matter may be. | |
We are required to establish reserves for litigation and regulatory matters where those matters present loss contingencies that are both probable and estimable. When loss contingencies are not both probable and estimable, we do not establish reserves. | |
Based on current knowledge, management does not believe there are loss contingencies, if any, arising from pending investigations, litigation or regulatory matters that could have a material adverse effect on our consolidated financial position, liquidity, results of operations or cash flows. |
Income_Taxes
Income Taxes | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Income Taxes | Income Taxes | ||||||||||||
Reconciliations of the statutory U.S. federal income tax rates to our effective tax rate for continuing operations follow: | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State tax, net of federal benefit | 2.9 | 2.6 | — | ||||||||||
Effect of state rate change on net deferred tax liabilities, net of federal benefit | 4.4 | — | (0.1 | ) | |||||||||
State, release valuation allowance on net operating losses | (4.0 | ) | — | — | |||||||||
Unrecognized tax benefits, U.S. federal and state, net of federal benefit | 4.8 | — | — | ||||||||||
Other, net | (1.2 | ) | 0.6 | 2 | |||||||||
Effective tax rate | 41.9 | % | 38.2 | % | 36.9 | % | |||||||
The effective tax rate varies from the statutory U.S. federal rate of 35 percent primarily due to the impact of unrecognized tax benefits, net of federal benefit, for the year ended December 31, 2014. The effective tax rate varies from the statutory U.S. federal rate of 35 percent primarily due to the impact of state taxes, net of federal benefit, for the years ended December 31 2013, and 2012. The increase in the impact of state rate change is due to an increase in the net state deferred liabilities as a result of an increase in the overall blended state tax rate and by the impact of state law changes recorded in 2014. In addition, in 2014 the Company recorded a partial valuation allowance release related to state net operating losses. | |||||||||||||
Income tax expense consists of: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current provision: | |||||||||||||
Federal | $ | 137,573 | $ | 130,854 | $ | 126,484 | |||||||
State | 43,282 | 13,513 | 10,674 | ||||||||||
Total current provision | 180,855 | 144,367 | 137,158 | ||||||||||
Deferred (benefit)/provision: | |||||||||||||
Federal | (40,370 | ) | 13,240 | (9,747 | ) | ||||||||
State | (518 | ) | 1,327 | (1,268 | ) | ||||||||
Total deferred (benefit)/provision | (40,888 | ) | 14,567 | (11,015 | ) | ||||||||
Provision for income tax expense | $ | 139,967 | $ | 158,934 | $ | 126,143 | |||||||
The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Loan reserves | $ | 33,570 | $ | 26,853 | |||||||||
Stock-based compensation plans | 16,342 | 28,211 | |||||||||||
Deferred revenue | 418 | 607 | |||||||||||
Operating loss and credit carryovers | 14,324 | 1,273 | |||||||||||
Unrealized losses | 7,185 | 1,849 | |||||||||||
Accrued expenses not currently deductible | 10,606 | 2,853 | |||||||||||
Unrecorded tax benefits | 19,798 | 2,331 | |||||||||||
Other | 8,918 | 334 | |||||||||||
Total deferred tax assets | 111,161 | 64,311 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Gains on repurchased debt | 251,671 | — | |||||||||||
Fixed assets | 5,849 | 3,181 | |||||||||||
Acquired intangible assets | 6,151 | 616 | |||||||||||
Student loan premiums and discounts, net | 3,050 | (87 | ) | ||||||||||
Other | 2,656 | 3 | |||||||||||
Total deferred tax liabilities | 269,377 | 3,713 | |||||||||||
Net deferred tax (liabilities) assets | $ | (158,216 | ) | $ | 60,598 | ||||||||
Included in operating loss carryovers is a valuation allowance of $69.9 million as of December 31, 2014, against a portion of our state net operating loss carryovers that management believes is more likely than not will expire prior to being realized. As of December 31, 2014, we have apportioned state net operating loss carryforwards of $22 million which begin to expire in 2029. | |||||||||||||
Accounting for Uncertainty in Income Taxes | |||||||||||||
The following table summarizes changes in unrecognized tax benefits: | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Unrecognized tax benefits at beginning of year | $ | 7,343.50 | $ | 3,951.10 | $ | 2,467.30 | |||||||
Increases resulting from tax positions taken during a prior period | 45,184.20 | 573.9 | 503.1 | ||||||||||
Increases resulting from tax positions taken during the current period | 7,712.50 | 2,818.50 | 980.7 | ||||||||||
Decreases related to settlements with taxing authorities | (235.7 | ) | — | — | |||||||||
Reductions related to the lapse of statute of limitations | (599.6 | ) | — | — | |||||||||
Unrecognized tax benefits at end of year | $ | 59,404.90 | $ | 7,343.50 | $ | 3,951.10 | |||||||
As of December 31, 2014, the gross unrecognized tax benefits are $59.4 million. Included in the $59.4 million are $33.1 million of unrecognized tax benefits that, if recognized, would favorably impact the effective tax rate. As a part of the Spin-Off, the Company recorded a liability related to uncertain tax positions for which it is indemnified by Navient. See Note 2, “Significant Accounting Policies - Income Taxes,” for additional details. | |||||||||||||
Tax related interest expense is reported as a component of income tax expense. As of December 31, 2014 and 2013, the total amount of income tax-related accrued interest, net of related benefit, recognized in the consolidated balance sheets was $5.9 million and $0.4 million, respectively. | |||||||||||||
For the years ended December 31, 2014, 2013 and 2012, the total amount of income tax-related accrued interest, net of related tax benefit, recognized in the consolidated statements of income was $2.3 million, $0.1 million and $0, respectively. | |||||||||||||
The Company believes that it is reasonably possible that a decrease of up to $4.5 million in unrecognized tax benefits related to state taxes may be necessary within the coming year. | |||||||||||||
The Company or one of its subsidiaries files income tax returns at the U.S. federal level and in most U.S. states. U.S. federal income tax returns filed for years 2010 and prior have either been audited or surveyed and are now resolved. Various combinations of subsidiaries, tax years, and jurisdictions remain open for review, subject to statute of limitations periods (typically 3 to 4 prior years). We do not expect the resolution of open audits to have a material impact on our unrecognized tax benefits. |
Concentrations_of_Risk
Concentrations of Risk | 12 Months Ended |
Dec. 31, 2014 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | Concentrations of Risk |
Our business is primarily focused in providing and/or servicing to help students and their families save, plan and pay for college. We primarily originate, service and/or collect loans made to students and their families to finance the cost of their education. We provide funding, delivery and servicing support for education loans in the United States through our Private Education Loan programs. Because of this concentration in one industry, we are exposed to credit, legislative, operational, regulatory, and liquidity risks associated with the student loan industry. | |
Concentration Risk in the Revenues Associated with Private Education Loans | |
We compete in the Private Education Loan market with banks and other consumer lending institutions, some with strong consumer brand name recognition and greater financial resources. We compete based on our products, origination capability and customer service. To the extent our competitors compete aggressively or more effectively, we could lose market share to them or subject our existing loans to refinancing risk. Our product offerings may not prove to be profitable and may result in higher than expected losses. | |
We are a leading provider of saving- and paying-for-college products and programs. This concentration gives us a competitive advantage in the marketplace. This concentration also creates risks in our business, particularly in light of our concentrations as a Private Education Loan lender. If population demographics result in a decrease in college-age individuals, if demand for higher education decreases, if the cost of attendance of higher education decreases, if public resistance to higher education costs increases, or if the demand for higher education loans decreases, our consumer lending business could be negatively affected. In addition, the federal government, through the DSLP, poses significant competition to our private credit loan products. If loan limits under the DSLP increase, DSLP loans could be more widely available to students and their families and DSLP loans could increase, resulting in further decreases in the size of the Private Education Loan market and demand for our Private Education Loan products. | |
Concentration Risk in the Revenues Associated with FFELP Loans | |
On July 1, 2010, the HCERA legislation eliminated FFELP Loan originations, a major source of our net income. All federal loans to students are now made through the DSLP. The terms and conditions of existing FFELP Loans were not affected by this legislation. Despite the end of FFELP, Congress, ED and the Administration still exercise significant authority over the servicing and administration of existing FFELP Loans. Because of the ongoing uncertainty around efforts to reduce the federal budget deficit, the timing, method and manner of implementation of various education lending initiatives has become less predictable. The interest income we earn on our FFELP Loans portfolio, which totaled $43,831 in 2014, will decline over time as the portfolio amortizes. |
Parent_Only_Statements
Parent Only Statements | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Parent Only Statements | Parent Only Statements | ||||||||||||
The following parent company-only financial information should be read in conjunction with the other notes to the consolidated financial statements. The accounting policies for the parent company-only financial statements are the same as those used in the presentation of the consolidated financial statements other than the parent company-only financial statements account for the parent company's investments in its subsidiaries under the equity method. | |||||||||||||
Parent Only Condensed Balance Sheets | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 434,245 | $ | — | |||||||||
Total investments in subsidiaries (primarily Sallie Mae Bank) | 1,389,995 | 1,161,471 | |||||||||||
Tax indemnification receivable | 240,311 | — | |||||||||||
Due from subsidiaries, net | 32,408 | — | |||||||||||
Other assets | 1,943 | — | |||||||||||
Total assets | $ | 2,098,902 | $ | 1,161,471 | |||||||||
Liabilities and Equity | |||||||||||||
Liabilities | |||||||||||||
Income taxes payable, net | $ | 245,782 | $ | — | |||||||||
Payable due to Navient | 8,764 | — | |||||||||||
Other liabilities | 14,398 | — | |||||||||||
Total liabilities | $ | 268,944 | — | ||||||||||
Equity | |||||||||||||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | |||||||||||||
Series A: 3.3 million and 0 shares issued, respectively, at stated value of $50 | 165,000 | — | |||||||||||
Series B: 4 million and 0 shares issued, respectively, at stated value of $100 per share | 400,000 | — | |||||||||||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 425 million and 0 shares issued, respectively | 84,961 | — | |||||||||||
Additional paid-in capital | 1,090,511 | — | |||||||||||
Navient's subsidiary investment | — | 1,164,495 | |||||||||||
Accumulated other comprehensive loss (net of tax (benefit) of ($7,186) and ($1,849), respectively | (11,393 | ) | (3,024 | ) | |||||||||
Retained earnings | 113,066 | — | |||||||||||
Total SLM Corporation stockholders' equity before treasury stock | 1,842,145 | 1,161,471 | |||||||||||
Less: common stock held in treasury at cost: 1 million and 0 shares, respectively | (12,187 | ) | — | ||||||||||
Total equity | 1,829,958 | 1,161,471 | |||||||||||
Total liabilities and equity | $ | 2,098,902 | $ | 1,161,471 | |||||||||
Parent Only Condensed Statements of Income | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest income | $ | 4,980 | $ | — | $ | — | |||||||
Interest expense | — | — | — | ||||||||||
Net interest income | 4,980 | — | — | ||||||||||
Other income | 1,097 | — | — | ||||||||||
Operating expenses | 36,967 | 3,556 | 4,871 | ||||||||||
Loss before income tax expense and equity in net income from subsidiaries | (30,890 | ) | (3,556 | ) | (4,871 | ) | |||||||
Income tax (benefit) expense | (13,196 | ) | 133,121 | 102,842 | |||||||||
Equity in net income from subsidiaries (primarily Sallie Mae Bank) | 211,479 | 394,270 | 323,439 | ||||||||||
Net income | 193,785 | 257,593 | 215,726 | ||||||||||
Preferred stock dividends | 12,933 | — | — | ||||||||||
Net income attributable to common stock | $ | 180,852 | $ | 257,593 | $ | 215,726 | |||||||
Parent Only Condensed Statements of Cash Flows | |||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 193,785 | $ | 257,593 | $ | 215,726 | |||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||||
Undistributed earnings of subsidiaries | (211,479 | ) | (394,270 | ) | (323,439 | ) | |||||||
(Increase) decrease in investment in subsidiaries, net | 278,365 | 136,677 | 107,713 | ||||||||||
Decrease in tax indemnification receivable | 38,820 | — | — | ||||||||||
Increase in due from subsidiaries, net | (32,408 | ) | — | — | |||||||||
Increase in other assets | (5,447 | ) | — | — | |||||||||
Decrease in income taxes payable, net | (312,770 | ) | — | — | |||||||||
Increase in payable due to entity that is a subsidiary of Navient | 8,764 | — | — | ||||||||||
Increase in other liabilities | 14,398 | — | — | ||||||||||
Total adjustments | (221,757 | ) | (257,593 | ) | (215,726 | ) | |||||||
Net cash used in operating activities | (27,972 | ) | — | — | |||||||||
Cash flows from investing activities: | |||||||||||||
Net cash provided by (used in) investing activities | — | — | — | ||||||||||
Cash flows from financing activities: | |||||||||||||
Special cash contribution from Navient | 472,718 | — | — | ||||||||||
Excess tax benefit from exercise of stock-based awards | 2,432 | — | — | ||||||||||
Preferred stock dividends paid | (12,933 | ) | — | — | |||||||||
Net cash provided by financing activities | 462,217 | — | — | ||||||||||
Net increase in cash and cash equivalents | 434,245 | — | — | ||||||||||
Cash and cash equivalents at beginning of year | — | — | — | ||||||||||
Cash and cash equivalents at end of year | $ | 434,245 | $ | — | $ | — | |||||||
Selected_Quarterly_Financial_I
Selected Quarterly Financial Information (unaudited) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Selected Quarterly Financial Information (unaudited) | Selected Quarterly Financial Information (unaudited) | ||||||||||||||||
2014 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
(Dollars in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | |||||||||||||
Net interest income | $ | 139,238 | $ | 144,539 | $ | 144,026 | $ | 150,676 | |||||||||
Less: provisions for loan losses | 39,159 | 1,014 | 14,898 | 30,458 | |||||||||||||
Net interest income after provisions for loan losses | 100,079 | 143,525 | 129,128 | 120,218 | |||||||||||||
Gains on sales of loans, net | 33,888 | 1,928 | 85,147 | 396 | |||||||||||||
(Losses) gains on derivative and hedging activities, net | (764 | ) | (9,458 | ) | 5,401 | 825 | |||||||||||
Other income | 8,136 | 15,229 | 5,461 | 11,095 | |||||||||||||
Operating expenses | 63,671 | 61,127 | 72,721 | 77,362 | |||||||||||||
Acquired intangible asset impairment and amortization expense | 1,767 | 508 | 508 | 507 | |||||||||||||
Restructuring and other reorganization expenses | 229 | 13,520 | 14,079 | 10,483 | |||||||||||||
Income tax expense | 28,658 | 31,941 | 54,903 | 24,465 | |||||||||||||
Net income | 47,014 | 44,128 | 82,926 | 19,717 | |||||||||||||
Less: net loss attributable to noncontrolling interest | (434 | ) | — | — | — | ||||||||||||
Net income attributable to SLM Corporation | 47,448 | 44,128 | 82,926 | 19,717 | |||||||||||||
Preferred stock dividends | — | 3,228 | 4,850 | 4,855 | |||||||||||||
Net income attributable to SLM Corporation common stock | $ | 47,448 | $ | 40,900 | $ | 78,076 | $ | 14,862 | |||||||||
Basic earnings per common share attributable to SLM Corporation | $ | 0.11 | $ | 0.1 | $ | 0.18 | $ | 0.04 | |||||||||
Diluted earnings per common share attributable to SLM Corporation | $ | 0.11 | $ | 0.09 | $ | 0.18 | $ | 0.03 | |||||||||
2013 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
(Dollars in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | |||||||||||||
Net interest income | $ | 115,702 | $ | 107,417 | $ | 116,783 | $ | 122,213 | |||||||||
Less: provisions for loan losses | 20,692 | (1,015 | ) | 20,404 | 29,258 | ||||||||||||
Net interest income after provisions for loan losses | 95,010 | 108,432 | 96,379 | 92,955 | |||||||||||||
Gains on sales of loans, net | 75,222 | 73,441 | 43,434 | 4,496 | |||||||||||||
Gains (losses) on derivative and hedging activities, net | 610 | (52 | ) | 297 | (215 | ) | |||||||||||
Other income | 7,799 | 8,665 | 9,416 | 75,155 | |||||||||||||
Operating expenses | 60,771 | 66,771 | 68,717 | 74,215 | |||||||||||||
Acquired intangible asset impairment and amortization expense | 537 | 536 | 1,480 | 764 | |||||||||||||
Restructuring and other reorganization expenses | 23 | 84 | — | 619 | |||||||||||||
Income tax expense | 44,765 | 46,973 | 30,272 | 36,923 | |||||||||||||
Net income | 72,545 | 76,122 | 49,057 | 59,870 | |||||||||||||
Less: net loss attributable to noncontrolling interest | (340 | ) | (347 | ) | (333 | ) | (332 | ) | |||||||||
Net income attributable to SLM Corporation | 72,885 | 76,469 | 49,390 | 60,202 | |||||||||||||
Preferred stock dividends | — | — | — | — | |||||||||||||
Net income attributable to SLM Corporation common stock | $ | 72,885 | $ | 76,469 | $ | 49,390 | $ | 60,202 | |||||||||
Basic earnings per common share attributable to SLM Corporation | $ | 0.16 | $ | 0.17 | $ | 0.11 | $ | 0.14 | |||||||||
Diluted earnings per common share attributable to SLM Corporation | $ | 0.16 | $ | 0.17 | $ | 0.11 | $ | 0.14 | |||||||||
Significant_Accounting_Policie1
Significant Accounting Policies (Policies) | 12 Months Ended | |
Dec. 31, 2014 | ||
Accounting Policies [Abstract] | ||
Use of Estimates and Assumptions | Use of Estimates and Assumptions | |
The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Key accounting policies that include significant judgments and estimates include the valuation of allowance for loan losses, fair value measurements and derivative accounting. | ||
Consolidation | Consolidation | |
The consolidated financial statements include the accounts of SLM Corporation and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. | ||
Cash and Cash Equivalents | Cash and Cash Equivalents | |
Cash and cash equivalents include cash held in the Federal Reserve Bank of San Francisco (“FRB”) and commercial bank accounts, and other short-term liquid instruments with original maturities of three months or less. Fees associated with investing cash and cash equivalents are amortized into interest income using the effective interest rate method | ||
Investments | Investments | |
Investments include mortgage-backed securities in 2014, and asset-backed securities and mortgage-backed securities in 2013 and 2012. We record our investment purchases and sales on a trade date basis. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. We classify all of our investments with readily determinable fair values as trading, available-for-sale or held-to-maturity. | ||
Investments that are not categorized as trading or held-to-maturity are classified as available-for-sale and reported at fair value. Unrealized gains or losses on available-for-sale investments are recorded in equity and are reported as a component of other comprehensive income/(loss), net of applicable income taxes, unless a decline in the investment’s value is considered to be other-than-temporary, in which case the loss is recorded directly to earnings. | ||
Management reviews all investments at least quarterly to determine whether any impairment is other-than-temporary. Impairment is evaluated by considering several factors including the length of time and extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability to retain the investment to allow for an anticipated recovery in fair value. If, based on the analysis, it is determined that the impairment is other-than-temporary, the investment is written down to fair value and a loss is recognized through earnings. | ||
Loans Held for Investment | Loans Held for Investment | |
Loans, consisting of Private Education Loans and FFELP loans, that we have the ability and intent to hold for the foreseeable future are classified as held for investment, and are carried at amortized cost. Amortized cost includes the unamortized premiums, discounts, and capitalized origination costs and fees, all of which are amortized to interest income as discussed under “Loan Interest Income.” Loans which are held for investment are reported net of an allowance for loan losses. | ||
Prior to the Spin-Off, we participated in FFELP rehabilitation loan auctions whereby we bid on portfolios of rehabilitated FFELP loans offered for sale by guarantors. For a loan to be eligible for rehabilitation, the guaranty agency must have received reasonable and affordable payments for 9 out of 10 months, at which time the borrower may request that the loan be rehabilitated. Because monthly payments are usually greater after rehabilitation, not all borrowers request rehabilitation. Upon rehabilitation, a borrower is again eligible for all of the benefits under the Higher Education Act that he or she was not eligible as a borrower on a defaulted loan, such as new federal aid, and the default on the borrower’s credit record is expunged. No student loan may be rehabilitated more than once. | ||
Allowance for Loan Losses | Allowance for Loan Losses | |
We consider a loan to be impaired when, based on current information, a loss has been incurred and it is probable that we will not receive all contractual amounts due. When making our assessment as to whether a loan is impaired, we also take into account more than insignificant delays in payment. We generally evaluate impaired loans on an aggregate basis by grouping similar loans. We maintain an allowance for loan losses at an amount sufficient to absorb probable losses incurred in our portfolios at the reporting date based on a projection of estimated probable credit losses incurred in the portfolio. | ||
We analyze our portfolios to determine the effects that the various stages of delinquency and forbearance have on borrower default behavior and ultimate charge off. We estimate the allowance for loan losses for our loan portfolios using migration analysis of delinquent and current accounts. A migration analyses is a technique used to estimate the likelihood that a loan receivable may progress through the various delinquency stages and ultimately charge off. We also take into account the current and future economic environment and certain other qualitative factors when calculating the allowance for loan losses. | ||
The evaluation of the allowance for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. Our default estimates are based on a loss confirmation period of one year for Private Education Loans and two years for FFELP Loans. A loss confirmation period represents the expected period between a loss event and when management considers the debt to be uncollectible, taking into consideration account management practices that affect the timing of a loss, such as the usage of forbearance. The loss confirmation period underlying the allowance for loan losses is subject to a number of assumptions. If actual future performance in delinquency, charge-offs and recoveries are significantly different than estimated, or account management assumptions or practices were to change, this could materially affect the estimate of the allowance for loan losses, the timing of when losses are recognized, and the related provision for loan losses on our consolidated statements of income. | ||
Allowance for Private Education Loan Losses | Allowance for Private Education Loan Losses | |
We maintain an allowance for loan losses at an amount sufficient to absorb probable losses incurred in our portfolios at the reporting date based on a projection of estimated probable credit losses incurred in the portfolio. | ||
In determining the allowance for loan losses on our Private Education Loan non-troubled debt restructuring (“TDR”) portfolio, we estimate the principal amount of loans that will default over the next year (one year being the expected period between a loss event and default) and how much we expect to recover over the same one year period related to the defaulted amount. The expected defaults less our expected recoveries adjusted for any qualitative factors (discussed below) equal the allowance related to this portfolio. Our historical experience indicates that, on average, the time between the date that a customer experiences a default causing event (i.e., the loss trigger event) and the date that we charge off the unrecoverable portion of that loan is one year. | ||
In estimating both the non-TDR and TDR allowance amounts, we start with historical experience of customer delinquency and default behavior. We make judgments about which historical period to start with and then make further judgments about whether that historical experience is representative of future expectations and whether additional adjustments may be needed to those historical default rates. We may also take certain other qualitative factors into consideration when calculating the allowance for loan losses. These qualitative factors include, but are not limited to, changes in the economic environment, changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off and recovery practices not already included in the analysis, and the effect of other external factors such as legal and regulatory requirements on the level of estimated credit losses. | ||
Our non-TDR allowance for loan losses is estimated using an analysis of delinquent and current accounts. Our model is used to estimate the likelihood that a loan receivable may progress through the various delinquency stages and ultimately charge off (“migration analysis”). Once a charge-off forecast is estimated, a recovery assumption is layered on top. In estimating recoveries, we use both estimates of what we would receive from the sale of delinquent loans as well as historical borrower payment behavior to estimate the timing and amount of future recoveries on charged-off loans. | ||
The migration analysis model is based upon sixteen months of actual collection experience, which includes seven months of collection experience using the 212 day charge-off default aversion strategies and nine months of experience using the 120 day charge-off default aversion strategies. We only used collection data from the first four collection buckets for all sixteen months. This resulted in our inclusion of older periods when the accounts were not being aggressively collected in the 30 to 120 days delinquent buckets. We believe this is appropriate as we have very limited data since the change in collection practices to be confident that the positive trends will continue. Once the quantitative calculation is performed, we review the adequacy of the allowance for loan losses and determine if qualitative adjustments need to be considered. | ||
Prior to the Spin-Off, the Bank exercised its right and sold substantially all of the Private Education Loans it originated that became delinquent or were granted forbearance to an entity that is now a subsidiary of Navient at its fair value. Because of this arrangement, the Bank did not hold many loans in forbearance. As a result, the Bank had very little historical forbearance activity and very few delinquencies. | ||
In connection with the Spin-Off, the agreement under which the Bank previously made these sales was amended so that the Bank now only has the right to require Navient to purchase (at fair value) loans only where (a) the borrower has a lending relationship with both the Bank and Navient (“Split Loans”) and (b) the Split Loans either (1) are more than 90 days past due; (2) have been restructured; (3) have been granted a hardship forbearance or more than six months of administrative forbearance; or (4) have a borrower or cosigner who has filed for bankruptcy. At December 31, 2014, we held approximately $117 million of Split Loans. | ||
Pre-Spin-Off SLM charged off loans when they were 212 days delinquent. As such, default aversion strategies were focused on the final stages of delinquency, from 150 days to 212 days. In connection with the Spin-Off, we changed our charge-off policy for Private Education Loans to charging off loans when they reach 120 days delinquent. As a result of changing our corporate charge-off policy and greatly reducing the number of potentially delinquent loans we sell to Navient, our default aversion strategies must now focus on loans 30 to 120 days delinquent. This change has the effect of accelerating the recognition of losses due to the shorter charge-off period (120 days). In addition, at the time of the Spin-Off, we changed our loss confirmation period from two years to one year to reflect the shorter charge-off policy and our revised servicing practices. These two changes resulted in recognizing a $14 million net reduction in our allowance for loan losses in second quarter 2014 because we are now only reserving for one year of losses as compared with two years under the prior policy, which more than offset the impact of the shorter charge-off period. | ||
Troubled Debt Restructurings (“TDRs”) | ||
Separately, for our TDR portfolio, we estimate an allowance amount sufficient to cover life-of-loan expected losses through an impairment calculation based on the difference between the loan’s basis and the present value of expected future cash flows (which would include life-of-loan default and recovery assumptions) discounted at the loan’s original effective interest rate. Our TDR portfolio is comprised mostly of loans with interest rate reductions and forbearance usage greater than three months. | ||
Key Credit Quality Indicators | ||
We determine the collectability of our Private Education Loan portfolio by evaluating certain risk characteristics. We consider credit score, existence of a cosigner, loan status and loan seasoning as the key credit quality indicators because they have the most significant effect on the determination of the adequacy of our allowance for loan losses. Credit scores are an indicator of the creditworthiness of a borrower and the higher the credit score the more likely it is the borrower will be able to make all of their contractual payments. Loan status affects the credit risk because a past due loan is more likely to result in a credit loss than an up-to-date loan. Additionally, loans in the deferred payment status have different credit risk profiles compared with those in current pay status. Loan seasoning affects credit risk because a loan with a history of making payments generally has a lower incidence of default than a loan with a history of making infrequent or no payments. The existence of a cosigner lowers the likelihood of default. We monitor and update these credit quality indicators in the analysis of the adequacy of our allowance for loan losses on a quarterly basis. | ||
Certain Private Education Loans do not require borrowers to begin repayment until six months after they have graduated or otherwise left school. Consequently, the loss estimates for these programs is generally low while the borrower is in school. At December 31, 2014 and 2013, 36 percent and 39 percent, respectively, of the principal balance in the Private Education Loan portfolio was related to borrowers who are in an in-school (fully deferred), grace, or deferment status and not required to make payments. As this population of borrowers leaves school, they will be required to begin payments on their loans, and the allowance for losses may change accordingly. | ||
Similar to the rules governing FFELP payment requirements, our collection policies allow for periods of nonpayment for borrowers requesting additional payment grace periods upon leaving school or experiencing temporary difficulty meeting payment obligations. This is referred to as forbearance status and is considered separately in the allowance for loan losses. The loss confirmation period is in alignment with the typical collection cycle and takes into account these periods of nonpayment. | ||
As part of concluding on the adequacy of the allowance for loan loss, we review key allowance and loan metrics. The most relevant of these metrics considered are the allowance coverage of charge-offs ratio; the allowance as a percentage of total loans and of loans in repayment; and delinquency and forbearance percentages. | ||
We consider a loan to be delinquent 31 days after the last payment was contractually due. We use a model to estimate the amount of uncollectible accrued interest on Private Education Loans and reserve for that amount against current period interest income. | ||
Allowance for FFELP Loan Losses | Allowance for FFELP Loan Losses | |
FFELP Loans are insured as to their principal and accrued interest in the event of default subject to a Risk Sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement on all qualifying default claims. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement. | ||
Similar to the allowance for Private Education Loan losses, the allowance for FFELP Loan losses uses historical experience of customer default behavior and a two-year loss confirmation period to estimate the credit losses incurred in the loan portfolio at the reporting date. We apply the default rate projections, net of applicable Risk Sharing, to each category for the current period to perform our quantitative calculation. Once the quantitative calculation is performed, we review the adequacy of the allowance for loan losses and determine if qualitative adjustments need to be considered. | ||
Deposits | Deposits | |
Our deposit accounts are principally certificates of deposit (“CD”), money market deposit accounts (“MMDA”) and high yield savings (“HYS”) accounts. CDs are accounts that have a stipulated maturity and interest rate. Early withdrawal of Brokered CD’s is prohibited (except in the case of death or legal incapacity). Retail CD’s may be withdrawn early but a penalty is assessed. MMDA and HYS accounts are both interest and non-interest bearing accounts that have no maturity or expiration date. The depositor is not required by the deposit contract, but may at any time be required by the Company, to give written notice of any intended withdrawal not less than seven days before the withdrawal is made. | ||
Upromise liabilities | Upromise related liabilities | |
Upromise related liabilities represent amounts owed to Upromise rewards members for rebates they have earned from qualifying purchases from Upromise’s participating companies. These amounts are held in trust for the benefit of the members until distributed in accordance with the Upromise member’s request and/or the terms of the Upromise service agreement. Upromise, which acts as the trustee for the trust, has deposited a majority of the cash with the Bank pursuant to a money market deposit account agreement between the Bank and Upromise as trustee of the trust. | ||
Fair Value Measurement | Fair Value Measurement | |
We use estimates of fair value in applying various accounting standards for our financial statements. Fair value measurements are used in one of five ways: | ||
• | In the consolidated balance sheet with changes in fair value recorded in the consolidated statement of income; | |
• | In the consolidated balance sheet with changes in fair value recorded in the accumulated other comprehensive income section of the consolidated statement of changes in equity; | |
• | In the consolidated balance sheet for instruments carried at lower of cost or fair value with impairment charges recorded in the consolidated statement of income; | |
• | In the notes to the consolidated financial statements; and | |
• | In the measurement of related party transactions. | |
Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, our policy in estimating fair value is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates and credit spreads (including for our liabilities), relying first on observable data from active markets. Depending on current market conditions, additional adjustments to fair value may be based on factors such as liquidity, credit, and bid/offer spreads. Transaction costs are not included in the determination of fair value. When possible, we seek to validate the model’s output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. | ||
We categorize our fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. Classification is based on the lowest level of input that is significant to the fair value of the instrument. The three levels are as follows: | ||
• | Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. The types of financial instruments included in level 1 are highly liquid instruments with quoted prices. | |
• | Level 2 — Inputs from active markets, other than quoted prices for identical instruments, are used to determine fair value. Significant inputs are directly observable from active markets for substantially the full term of the asset or liability being valued. | |
• | Level 3 — Pricing inputs significant to the valuation are unobservable. Inputs are developed based on the best information available. However, significant judgment is required by us in developing the inputs. | |
Loan Interest Income | Loan Interest Income | |
For loans classified as held for investment, we recognize interest income as earned, adjusted for the amortization of deferred direct origination costs. This adjustment is recognized based upon the expected yield of the loan over its life after giving effect to prepayments and extensions. The estimate of the prepayment speed includes the effect of voluntary prepayments, student loan defaults, and consolidation (if the loan is consolidated to a third party), all of which shorten the life-of-loan. Prepayment speed estimates also consider the utilization of deferment, forbearance, and extended repayment plans, which lengthen the life-of-loan. We regularly evaluate the assumptions used to estimate the prepayment speeds. In instances where there are changes to the assumptions, amortization is adjusted on a cumulative basis to reflect the change since the origination of the loan. We also pay to the U.S. Department of Education (“ED”) an annual 105 basis point Consolidation Loan Rebate Fee on FFELP Consolidation Loans which is netted against loan interest income. Additionally, interest earned on education loans reflects potential non-payment adjustments in accordance with our uncollectible interest recognition policy as discussed further in “Allowance for Loan Losses” of this Note 2. We do not amortize any adjustments to the basis of education loans when they are classified as held-for-sale. | ||
We recognize certain fee income (primarily late fees) on education loans when earned according to the contractual provisions of the promissory notes, as well as our expectation of collectability. Fee income is recorded when earned in “other non-interest income” in the accompanying consolidated statements of income. | ||
Interest Expense | Interest Expense | |
Interest expense is based upon contractual interest rates adjusted for the amortization of issuance costs. We incur interest expense on interest bearing deposits comprised of non-maturity savings deposits, brokered and retail certificates of deposit and brokered money market deposits. Interest expense is recognized when amounts are contractually due to deposit holders. | ||
Gains on Sale of Loans, Net | Gains on Sale of Loans, Net | |
We participate and sell loans to third parties and affiliates (including entities that were related parties prior to the Spin-Off). These sales may be through whole loan sales or securitization transactions that qualify for sales treatment. These loans were initially recorded as held for investment, and were transferred to held-for-sale immediately prior to sale or securitization. Beginning in April 2012, loans were sold at fair value. Details of these transactions are further discussed in Note 16, “Arrangements with Navient Corporation.” | ||
Prior to the Spin-Off the Bank sold loans to an entity that is now a subsidiary of Navient when loans became 90 days delinquent and to facilitate securitization transactions. Prior to the Spin-Off, the Bank sold $805 million, $2.4 billion and $2.6 billion of loans resulting in a net gain on sale of loans of $36 million, $197 million and $235 million, for the years ended December 31, 2014, 2013 and 2012, respectively. Subsequent to the Spin-Off, we sold loans through loan sales and a securitization transaction with third parties (including Navient) resulting in a net gain on sale of loans of $85 million for the year ended December 31, 2014. See notes to consolidated financial statements, Note 16, “Arrangements with Navient Corporation,” for further discussion regarding loan purchase agreements. While there may be near-term Private Education Loan sales to Navient to facilitate an orderly transition after the Spin-Off, neither the Company nor Navient has any ongoing obligation to buy or sell Private Education Loans to or from the other. | ||
Other Income | Other Income | |
Our Upromise subsidiary has a number of programs that encourage consumers to save for the cost of college education. We have established a consumer savings network which is designed to promote college savings by consumers who are members of this program by encouraging them to purchase goods and services from the companies that participate in the program. Participating companies generally pay Upromise fees based on member purchase volume, either online or in stores depending on the contractual arrangement with the company. We recognize revenue as marketing and administrative services are rendered based upon contractually determined rates and member purchase volumes. | ||
Securitization Accounting | Securitization Accounting | |
In the third quarter 2014, we entered into our first securitization transaction. We accounted for this as a sale of loans and we did not consolidate the securitization trust. This securitization used a two-step structure with a special purpose entity that legally isolated the transferred assets from us, even in the event of bankruptcy. The transaction was also structured to ensure the holders of the beneficial interests issued are not constrained from pledging or exchanging their interests, and we do not maintain effective control over the transferred assets. If these criteria had not been met, then the transaction would be accounted for as an on-balance sheet secured borrowing. Our securitization transaction was legally structured to be a sale of assets that isolated the transferred assets from us. If a securitization qualifies as a sale, we then assess whether we are the primary beneficiary of the securitization trust and are required to consolidate such trust. If we are the primary beneficiary then no gain or loss is recognized. | ||
The investors in the securitization trust have no recourse to our assets should there be a failure of the trust to pay when due. Generally, the only recourse the trust has to us is in the event we breach a seller representation or warranty or our duties as master servicer, in which event we agree to repurchase the related loans from the trust. As master servicer, our primary responsibility will be to monitor the performance of the subservicer and find a substitute subservicer in the event the subservicer of the trust defaults. | ||
We did not record a servicing asset or servicing liability related to the securitization transaction we entered into in third quarter 2014 because we determined the master servicing fee we receive is at market rate. | ||
Derivative Accounting | Derivative Accounting | |
We account for our derivatives, consisting of interest rate swaps, at fair value on the consolidated balance sheets as either an asset or liability. Derivative positions are recorded as net positions by counterparty based on master netting arrangements (see Note 11, “Derivative Financial Instruments”) exclusive of accrued interest and cash collateral held or pledged. We determine the fair value for our derivative contracts primarily using pricing models that consider current market conditions and the contractual terms of the derivative contract. These factors include interest rates, time value, forward interest rate curves, and volatility factors. Inputs are generally from active financial markets. | ||
The majority of our derivatives qualify as effective hedges. For these derivatives, the relationship between the hedging instrument and the hedged items (including the hedged risk and method for assessing effectiveness), as well as the risk management objective and strategy for undertaking various hedge transactions at the inception of the hedging relationship, is documented. | ||
Each derivative is designated to a specific (or pool of) liability(ies) on the consolidated balance sheets, and is designated as either a “fair value” hedge or a “cash flow” hedge. Fair value hedges are designed to hedge our exposure to changes in fair value of a fixed-rate liability. For effective fair value hedges, both the hedge and the hedged item (for the risk being hedged) are recorded at fair value with any difference reflecting ineffectiveness which is recorded immediately in the consolidated statements of income. Cash flow hedges are designed to hedge our exposure to variability in cash flows related to variable rate deposits. The assessment of the hedge’s effectiveness is performed at inception and on an ongoing basis, generally using regression testing. For hedges of a pool of liabilities, tests are performed to demonstrate the similarity of individual instruments of the pool. When it is determined that a derivative is not currently an effective hedge, ineffectiveness is recognized for the full change in fair value of the derivative with no offsetting amount from the hedged item since the last time it was effective. If it is also determined the hedge will not be effective in the future, we discontinue the hedge accounting prospectively and begin amortization of any basis adjustments that exist related to the hedged item. | ||
Stock-Based Compensation | Stock-Based Compensation | |
We recognize stock-based compensation cost in our consolidated statements of income using the fair value method. Under this method we determine the fair value of the stock-based compensation at the time of the grant and recognize the resulting compensation expense over the vesting period of the stock-based grant. | ||
Income Taxes | Income Taxes | |
We account for income taxes under the asset and liability approach, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and tax basis of our assets and liabilities. To the extent tax laws change, deferred tax assets and liabilities are adjusted in the period that the tax change is enacted. | ||
“Income tax expense/(benefit)” includes (i) deferred tax expense/(benefit), which represents the net change in the deferred tax asset or liability balance during the year when applicable, and (ii) current tax expense/(benefit), which represents the amount of tax currently payable to or receivable from a tax authority plus amounts accrued for unrecognized tax benefits. Income tax expense/(benefit) excludes the tax effects related to adjustments recorded in equity. | ||
An uncertain tax position is recognized only if it is more likely than not to be sustained upon examination based on the technical merits of the position. The amount of tax benefit recognized in the financial statements is the largest amount of benefit that is more than fifty percent likely of being sustained upon ultimate settlement of the uncertain tax position. We recognize interest related to unrecognized tax benefits in income tax expense/(benefit), and penalties, if any, in operating expenses. | ||
Recently Issued Accounting Pronouncements | Recently Issued Accounting Pronouncements | |
On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance when it becomes effective. The new standard is effective on January 1, 2017. Early application is not permitted. The standard permits the use of either the retrospective or cumulative effect transition method. We have determined that this new guidance will have an immaterial impact on the financial results of the Company. |
Investments_Investments_Tables
Investments Investments (Tables) | 12 Months Ended | ||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Schedule of Amortized Cost and Fair Value of Securities Available-for-sale | The amortized cost and fair value of securities available for sale are as follows: | ||||||||||||||||||||||||
As of December 31, 2014 | |||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||||
Mortgage-backed securities | $ | 167,740 | $ | 2,686 | $ | (1,492 | ) | $ | 168,934 | ||||||||||||||||
As of December 31, 2013 | |||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | ||||||||||||||||||||||
Available for sale: | |||||||||||||||||||||||||
Mortgage-backed securities | $ | 106,977 | $ | 706 | $ | (5,578 | ) | $ | 102,105 | ||||||||||||||||
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table summarizes the amount of gross unrealized losses for our mortgage-backed securities and the estimated fair value by length of time the securities have been in an unrealized loss position: | ||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Gross unrealized losses | Estimated fair value | Gross unrealized losses | Estimated fair value | Gross unrealized losses | Estimated fair value | ||||||||||||||||||||
As of December 31, 2014: | |||||||||||||||||||||||||
Mortgage-backed securities | $ | (27 | ) | $ | 12,147 | $ | (1,465 | ) | $ | 41,462 | $ | (1,492 | ) | $ | 53,609 | ||||||||||
As of December 31, 2013: | |||||||||||||||||||||||||
Mortgage-backed securities | $ | (3,633 | ) | $ | 69,809 | $ | (1,945 | ) | $ | 16,176 | $ | (5,578 | ) | $ | 85,985 | ||||||||||
Amortized Cost and Fair Value of Securities by Contractual Maturities | As of December 31, 2014, the amortized cost and fair value of securities, by contractual maturities, are summarized below. Contractual maturities versus actual maturities may differ due to the effect of prepayments. | ||||||||||||||||||||||||
Year of Maturity | Amortized Cost | Estimated Fair Value | |||||||||||||||||||||||
2038 | $ | 604 | $ | 647 | |||||||||||||||||||||
2039 | 11,298 | 12,145 | |||||||||||||||||||||||
2042 | 27,721 | 26,617 | |||||||||||||||||||||||
2043 | 73,534 | 74,505 | |||||||||||||||||||||||
2044 | 54,583 | 55,020 | |||||||||||||||||||||||
Total | $ | 167,740 | $ | 168,934 | |||||||||||||||||||||
Loans_Held_for_Investment_Tabl
Loans Held for Investment (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Receivables [Abstract] | ||||||||||||||||||||||
Loans held for investment | Loans held for investment are summarized as follows: | |||||||||||||||||||||
December 31, | ||||||||||||||||||||||
2014 | 2013 | |||||||||||||||||||||
Private Education Loans | $ | 8,311,376 | $ | 6,563,342 | ||||||||||||||||||
Deferred origination costs | 13,845 | 5,063 | ||||||||||||||||||||
Allowance for loan losses | (78,574 | ) | (61,763 | ) | ||||||||||||||||||
Total Private Education Loans, net | 8,246,647 | 6,506,642 | ||||||||||||||||||||
FFELP Loans | 1,264,807 | 1,426,972 | ||||||||||||||||||||
Unamortized acquisition costs, net | 3,600 | 4,081 | ||||||||||||||||||||
Allowance for loan losses | (5,268 | ) | (6,318 | ) | ||||||||||||||||||
Total FFELP Loans, net | 1,263,139 | 1,424,735 | ||||||||||||||||||||
Loans held for investment, net | $ | 9,509,786 | $ | 7,931,377 | ||||||||||||||||||
The estimated weighted average life of student loans in our portfolio was approximately 6.2 years and 7.0 years at December 31, 2014 and 2013, respectively. | ||||||||||||||||||||||
The average balance and the respective weighted average interest rates are summarized as follows: | ||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Average Balance | Weighted Average Interest Rate | Average Balance | Weighted Average Interest Rate | Average Balance | Weighted Average Interest Rate | |||||||||||||||||
Private Education Loans | $ | 7,563,356 | 8.16 | % | $ | 5,996,651 | 8.16 | % | $ | 5,347,239 | 8.34 | % | ||||||||||
FFELP Loans | 1,353,497 | 3.24 | 1,142,979 | 3.32 | 527,935 | 2.85 | ||||||||||||||||
Total portfolio | $ | 8,916,853 | $ | 7,139,630 | $ | 5,875,174 | ||||||||||||||||
Loans held for investment by Region | At December 31, 2014, 38.8 percent of loans were concentrated in the following states: | |||||||||||||||||||||
2014 | ||||||||||||||||||||||
California | 10.1 | % | ||||||||||||||||||||
New York | 9.5 | |||||||||||||||||||||
Pennsylvania | 7.7 | |||||||||||||||||||||
New Jersey | 6.3 | |||||||||||||||||||||
Illinois | 5.2 | |||||||||||||||||||||
38.8 | % | |||||||||||||||||||||
At December 31, 2013, 37.8 percent of loans were concentrated in the following states: | ||||||||||||||||||||||
2013 | ||||||||||||||||||||||
California | 9.7 | % | ||||||||||||||||||||
New York | 9.3 | |||||||||||||||||||||
Pennsylvania | 7.5 | |||||||||||||||||||||
New Jersey | 6.2 | |||||||||||||||||||||
Illinois | 5.1 | |||||||||||||||||||||
37.8 | % |
Allowance_for_Loan_Losses_Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended | |||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||||||||||||||||
Allowance for Credit Losses and Recorded Investments in Loans | Allowance for Loan Losses Metrics | |||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||
FFELP Loans | Private Education | Total | ||||||||||||||||||||
Loans | ||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||
Beginning balance | $ | 6,318 | $ | 61,763 | $ | 68,081 | ||||||||||||||||
Total provision | 1,946 | 83,583 | 85,529 | |||||||||||||||||||
Charge-offs(1) | (2,996 | ) | (14,442 | ) | (17,438 | ) | ||||||||||||||||
Recoveries | — | 1,155 | 1,155 | |||||||||||||||||||
Net charge-offs | (2,996 | ) | (13,287 | ) | (16,283 | ) | ||||||||||||||||
Student loan sales(2) | — | (53,485 | ) | (53,485 | ) | |||||||||||||||||
Ending Balance | $ | 5,268 | $ | 78,574 | $ | 83,842 | ||||||||||||||||
Allowance: | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 9,815 | $ | 9,815 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 5,268 | $ | 68,759 | $ | 74,027 | ||||||||||||||||
Loans: | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | 59,402 | $ | 59,402 | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,264,807 | $ | 8,251,974 | $ | 9,516,781 | ||||||||||||||||
Net charge-offs as a percentage of average loans in repayment | 0.31 | % | 0.3 | % | ||||||||||||||||||
Allowance as a percentage of the ending total loan balance | 0.42 | % | 0.95 | % | ||||||||||||||||||
Allowance as a percentage of the ending loans in repayment | 0.57 | % | 1.53 | % | ||||||||||||||||||
Allowance coverage of net charge-offs | 1.76 | 5.91 | ||||||||||||||||||||
Ending total loans | $ | 1,264,807 | $ | 8,311,376 | ||||||||||||||||||
Average loans in repayment | $ | 972,390 | $ | 4,495,709 | ||||||||||||||||||
Ending loans in repayment | $ | 926,891 | $ | 5,149,215 | ||||||||||||||||||
_________ | ||||||||||||||||||||||
(1) | Prior to the Spin-Off, Private Education Loans were sold to an entity that is now a subsidiary of Navient, prior to being charged off. | |||||||||||||||||||||
(2) | Represents fair value write-downs on loans sold. | |||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||
Year Ended December 31, 2013 | ||||||||||||||||||||||
FFELP Loans | Private Education | Total | ||||||||||||||||||||
Loans | ||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||
Beginning balance | $ | 3,971 | $ | 65,218 | $ | 69,189 | ||||||||||||||||
Total provision | 4,384 | 64,955 | 69,339 | |||||||||||||||||||
Charge-offs(1) | (2,037 | ) | — | (2,037 | ) | |||||||||||||||||
Student loan sales(2) | — | (68,410 | ) | (68,410 | ) | |||||||||||||||||
Ending Balance | $ | 6,318 | $ | 61,763 | $ | 68,081 | ||||||||||||||||
Allowance: | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | — | $ | — | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 6,318 | $ | 61,763 | $ | 68,081 | ||||||||||||||||
Loans: | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | — | $ | — | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,426,972 | $ | 6,563,342 | $ | 7,990,314 | ||||||||||||||||
Charge-offs as a percentage of average loans in repayment | 0.23 | % | — | % | ||||||||||||||||||
Allowance as a percentage of the ending total loan balance | 0.44 | % | 0.94 | % | ||||||||||||||||||
Allowance as a percentage of the ending loans in repayment | 0.62 | % | 1.55 | % | ||||||||||||||||||
Allowance coverage of charge-offs | 3.1 | — | ||||||||||||||||||||
Ending total loans | $ | 1,426,972 | $ | 6,563,342 | ||||||||||||||||||
Average loans in repayment | $ | 870,460 | $ | 3,509,502 | ||||||||||||||||||
Ending loans in repayment | $ | 1,023,471 | $ | 3,972,317 | ||||||||||||||||||
(1) | Prior to the Spin-Off, Private Education Loans were sold to an entity that is now a subsidiary of Navient prior to being charged off. | |||||||||||||||||||||
(2) | Represents fair value write-downs on loans sold. | |||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||
Year Ended December 31, 2012 | ||||||||||||||||||||||
FFELP Loans | Private Education | Total | ||||||||||||||||||||
Loans | ||||||||||||||||||||||
Allowance for Loan Losses | ||||||||||||||||||||||
Beginning balance | $ | 402 | $ | 69,090 | $ | 69,492 | ||||||||||||||||
Total provision | 3,669 | 62,447 | 66,116 | |||||||||||||||||||
Charge-offs(1) | (100 | ) | — | (100 | ) | |||||||||||||||||
Student loan sales(2) | — | (66,319 | ) | (66,319 | ) | |||||||||||||||||
Ending Balance | $ | 3,971 | $ | 65,218 | $ | 69,189 | ||||||||||||||||
Allowance: | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | — | $ | — | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 3,971 | $ | 65,218 | $ | 69,189 | ||||||||||||||||
Loans: | ||||||||||||||||||||||
Ending balance: individually evaluated for impairment | $ | — | $ | — | $ | — | ||||||||||||||||
Ending balance: collectively evaluated for impairment | $ | 1,043,521 | $ | 5,507,908 | $ | 6,551,429 | ||||||||||||||||
Charge-offs as a percentage of average loans in repayment | 0.03 | % | — | % | ||||||||||||||||||
Allowance as a percentage of the ending total loan balance | 0.38 | % | 1.18 | % | ||||||||||||||||||
Allowance as a percentage of the ending loans in repayment | 0.52 | % | 1.74 | % | ||||||||||||||||||
Allowance coverage of charge-offs | 39.77 | — | ||||||||||||||||||||
Ending total loans | $ | 1,043,521 | $ | 5,507,908 | ||||||||||||||||||
Average loans in repayment | $ | 367,789 | $ | 3,928,692 | ||||||||||||||||||
Ending loans in repayment | $ | 770,772 | $ | 3,750,223 | ||||||||||||||||||
(1) | Prior to the Spin-Off, Private Education Loans were sold to an entity that is now a subsidiary of Navient prior to being charged off. | |||||||||||||||||||||
(2) | Represents fair value write-downs on loans sold. | |||||||||||||||||||||
Recorded Investment, Unpaid Principal Balance and Related Allowance for TDR Loans | At December 31, 2014, all of our TDR loans had a related allowance recorded. The following table provides the recorded investment, unpaid principal balance and related allowance for our TDR loans. | |||||||||||||||||||||
Recorded Investment | Unpaid Principal Balance | Allowance | ||||||||||||||||||||
31-Dec-14 | ||||||||||||||||||||||
TDR Loans | $ | 60,278 | $ | 59,402 | $ | 9,815 | ||||||||||||||||
Average Recorded Investment And Interest Income Recognized For TDR | The following table provides the average recorded investment and interest income recognized for our TDR loans. | |||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||
Average Recorded Investment | Interest Income Recognized | |||||||||||||||||||||
TDR Loans | $ | 23,290 | $ | 1,105 | ||||||||||||||||||
Age Analysis of Past Due Loans Delinquencies | The following tables provide information regarding the loan status and aging of past due loans. Loans in repayment includes in-school loans making interest only and fixed payments as well as loans that have entered full principal and interest repayment status after any applicable grace period. | |||||||||||||||||||||
Private Education Loan Delinquencies | ||||||||||||||||||||||
December 31, | ||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||
Balance | % | Balance | % | Balance | % | |||||||||||||||||
Loans in-school/grace/deferment(1) | $ | 3,027,143 | $ | 2,574,711 | $ | 1,748,757 | ||||||||||||||||
Loans in forbearance(2) | 135,018 | 16,314 | 8,928 | |||||||||||||||||||
Loans in repayment and percentage of each status: | ||||||||||||||||||||||
Loans current | 5,045,600 | 98 | % | 3,933,143 | 99 | % | 3,705,634 | 98.8 | % | |||||||||||||
Loans delinquent 31-60 days(3) | 63,873 | 1.2 | 28,854 | 0.7 | 33,412 | 0.9 | ||||||||||||||||
Loans delinquent 61-90 days(3) | 29,041 | 0.6 | 10,280 | 0.3 | 10,483 | 0.3 | ||||||||||||||||
Loans delinquent greater than 90 days(3) | 10,701 | 0.2 | 40 | — | 694 | — | ||||||||||||||||
Total Private Education Loans in repayment | 5,149,215 | 100 | % | 3,972,317 | 100 | % | 3,750,223 | 100 | % | |||||||||||||
Total Private Education Loans, gross | 8,311,376 | 6,563,342 | 5,507,908 | |||||||||||||||||||
Private Education Loans deferred origination costs | 13,845 | 5,063 | 5,009 | |||||||||||||||||||
Total Private Education Loans | 8,325,221 | 6,568,405 | 5,512,917 | |||||||||||||||||||
Private Education Loans allowance for losses | (78,574 | ) | (61,763 | ) | (65,218 | ) | ||||||||||||||||
Private Education Loans, net | $ | 8,246,647 | $ | 6,506,642 | $ | 5,447,699 | ||||||||||||||||
Percentage of Private Education Loans in repayment | 62 | % | 60.5 | % | 68.1 | % | ||||||||||||||||
Delinquencies as a percentage of Private Education Loans in repayment | 2 | % | 1 | % | 1.2 | % | ||||||||||||||||
Loans in forbearance as a percentage of loans in repayment and forbearance | 2.6 | % | 0.4 | % | 0.2 | % | ||||||||||||||||
-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. | |||||||||||||||||||||
The following table provides information regarding the loan status and aging of TDR loans that are past due. | ||||||||||||||||||||||
December 31, | ||||||||||||||||||||||
2014 | ||||||||||||||||||||||
Balance | % | |||||||||||||||||||||
Loans in in-school/grace/deferment(1) | $ | 2,915 | ||||||||||||||||||||
Loans in forbearance(2) | 18,620 | |||||||||||||||||||||
Loans in repayment and percentage of each status: | ||||||||||||||||||||||
Loans current | 34,554 | 91.2 | % | |||||||||||||||||||
Loans delinquent 31-60 days(3) | 1,953 | 5.2 | ||||||||||||||||||||
Loans delinquent 61-90 days(3) | 983 | 2.6 | ||||||||||||||||||||
Loans delinquent greater than 90 days(3) | 377 | 1 | ||||||||||||||||||||
Total TDR loans in repayment | 37,867 | 100 | % | |||||||||||||||||||
Total TDR loans, gross | $ | 59,402 | ||||||||||||||||||||
_____ | ||||||||||||||||||||||
(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. | |||||||||||||||||||||
Modified Loans Accounts For Troubled Debt Restructuring | The following table provides the amount of modified loans that resulted in a TDR in the periods presented. Additionally, the table summarizes charge-offs occurring in the TDR portfolio, as well as TDRs for which a payment default occurred in the current period within 12 months of the loan first being designated as a TDR. We define payment default as 60 days past due for this disclosure. The majority of our loans that are considered TDRs involve a temporary forbearance of payments and do not change the contractual interest rate of the loan. | |||||||||||||||||||||
Year Ended December 31, 2014 | ||||||||||||||||||||||
Modified Loans | Charge-offs | Payment-Default | ||||||||||||||||||||
TDR Loans | $ | 59,402 | $ | 948 | $ | 325 | ||||||||||||||||
Private Education Loan Portfolio Stratified by Key Credit Quality Indicators | The following table highlights the gross principal balance of our Private Education Loan portfolio stratified by key credit quality indicators. | |||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||
Credit Quality Indicators: | Balance(1) | % of Balance | Balance(1) | % of Balance | ||||||||||||||||||
Cosigners: | ||||||||||||||||||||||
With cosigner | $ | 7,465,339 | 90 | % | $ | 5,898,751 | 90 | % | ||||||||||||||
Without cosigner | 846,037 | 10 | 664,591 | 10 | ||||||||||||||||||
Total | $ | 8,311,376 | 100 | % | $ | 6,563,342 | 100 | % | ||||||||||||||
FICO at Origination: | ||||||||||||||||||||||
Less than 670 | $ | 558,801 | 7 | % | $ | 461,412 | 7 | % | ||||||||||||||
670-699 | 1,227,860 | 15 | 1,364,286 | 21 | ||||||||||||||||||
700-749 | 2,626,238 | 32 | 1,649,192 | 25 | ||||||||||||||||||
Greater than or equal to 750 | 3,898,477 | 46 | 3,088,452 | 47 | ||||||||||||||||||
Total | $ | 8,311,376 | 100 | % | $ | 6,563,342 | 100 | % | ||||||||||||||
Seasoning(2): | ||||||||||||||||||||||
1-12 payments | $ | 2,373,117 | 29 | % | $ | 1,840,538 | 28 | % | ||||||||||||||
13-24 payments | 1,532,042 | 18 | 1,085,393 | 17 | ||||||||||||||||||
25-36 payments | 755,143 | 9 | 669,685 | 10 | ||||||||||||||||||
37-48 payments | 411,493 | 5 | 362,124 | 6 | ||||||||||||||||||
More than 48 payments | 212,438 | 3 | 30,891 | — | ||||||||||||||||||
Not yet in repayment | 3,027,143 | 36 | 2,574,711 | 39 | ||||||||||||||||||
Total | $ | 8,311,376 | 100 | % | $ | 6,563,342 | 100 | % | ||||||||||||||
___________ | ||||||||||||||||||||||
(1) | Balance represents gross Private Education Loans. | |||||||||||||||||||||
(2) | Number of months in active repayment for which a scheduled payment was due. | |||||||||||||||||||||
Accrued Interest Receivable | The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans greater than 90 days past due as compared to our allowance for uncollectible interest. The allowance for uncollectible interest exceeds the amount of accrued interest on our 90 days past due portfolio for all periods presented. | |||||||||||||||||||||
Private Education Loan | ||||||||||||||||||||||
Accrued Interest Receivable | ||||||||||||||||||||||
Total Interest | Greater Than | Allowance for Uncollectible Interest | ||||||||||||||||||||
Receivable | 90 Days | |||||||||||||||||||||
Past Due | ||||||||||||||||||||||
31-Dec-14 | $ | 445,710 | $ | 443 | $ | 3,517 | ||||||||||||||||
31-Dec-13 | $ | 333,857 | $ | 1 | $ | 4,076 | ||||||||||||||||
Premises_and_Equipment_Net_Tab
Premises and Equipment, Net (Tables) | 12 Months Ended | ||||||||
Dec. 31, 2014 | |||||||||
Property, Plant and Equipment [Abstract] | |||||||||
Property, Plant and Equipment | The following is a summary of our premises and equipment. | ||||||||
December 31, | |||||||||
2014 | 2013 | ||||||||
Land and land improvements | $ | 10,927 | $ | 10,345 | |||||
Buildings and leasehold improvements | 56,772 | 52,435 | |||||||
Furniture, fixtures and equipment | 10,898 | 25,633 | |||||||
Software | 31,988 | 32,534 | |||||||
Premises and equipment, gross | 110,585 | 120,947 | |||||||
Accumulated depreciation | (32,115 | ) | (46,759 | ) | |||||
Premises and equipment, net | $ | 78,470 | $ | 74,188 | |||||
Deposits_Tables
Deposits (Tables) | 12 Months Ended | |||||||||||||||
Dec. 31, 2014 | ||||||||||||||||
Deposits [Abstract] | ||||||||||||||||
Schedule of Deposits | The following table summarizes total deposits at December 31, 2014 and 2013. | |||||||||||||||
December 31, | December 31, | |||||||||||||||
2014 | 2013 | |||||||||||||||
Deposits - interest bearing | $ | 10,539,953 | $ | 8,946,514 | ||||||||||||
Deposits - non-interest bearing | 602 | 55,036 | ||||||||||||||
Total deposits | $ | 10,540,555 | $ | 9,001,550 | ||||||||||||
Interest Bearing Deposits | Interest bearing deposits at December 31, 2014 and 2013 are summarized as follows: | |||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||
Amount | Year-End Weighted Average Stated Rate | Amount | Year-End Weighted Average Stated Rate | |||||||||||||
Money market | $ | 4,527,448 | 1.15 | % | $ | 3,212,889 | 0.65 | % | ||||||||
Savings | 703,687 | 0.81 | % | 743,742 | 0.81 | % | ||||||||||
NOW | — | — | % | 18,214 | 0.12 | % | ||||||||||
Certificates of deposit | 5,308,818 | 1 | % | 4,971,669 | 1.39 | % | ||||||||||
Deposits - interest bearing | $ | 10,539,953 | $ | 8,946,514 | ||||||||||||
Schedule of Maturities of Time Deposits | Certificates of deposit maturities are summarized as follows: | |||||||||||||||
December 31, | ||||||||||||||||
2014 | 2013 | |||||||||||||||
One year or less | $ | 1,717,891 | $ | 2,030,190 | ||||||||||||
After one year to two years | 1,038,778 | 1,303,106 | ||||||||||||||
After two years to three years | 948,490 | 675,405 | ||||||||||||||
After three years to four years | 846,976 | 538,117 | ||||||||||||||
After four years to five years | 577,827 | 424,851 | ||||||||||||||
After five years | 178,856 | — | ||||||||||||||
Total | $ | 5,308,818 | $ | 4,971,669 | ||||||||||||
Derivative_Financial_Instrumen1
Derivative Financial Instruments (Tables) | 12 Months Ended | ||||||||||||||||||||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||
Impact of Derivatives on the Consolidated Balance Sheet | The following tables summarize the fair values and notional amounts of all derivative instruments at December 31, 2014 and 2013, and their impact on other comprehensive income and earnings for the years ended December 31, 2014, 2013 and 2012. | ||||||||||||||||||||||||||||||||||
Impact of Derivatives on the Consolidated Balance Sheet | |||||||||||||||||||||||||||||||||||
Cash Flow Hedges | Fair Value Hedges | Trading | Total | ||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Fair Values(1) | Hedged Risk Exposure | ||||||||||||||||||||||||||||||||||
Derivative Assets:(2) | |||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate | $ | — | $ | — | $ | 5,012 | $ | 6,335 | $ | 226 | $ | 426 | $ | 5,238 | $ | 6,761 | ||||||||||||||||||
Derivative Liabilities:(2) | |||||||||||||||||||||||||||||||||||
Interest rate swaps | Interest rate | (21,435 | ) | — | (5,883 | ) | (6,149 | ) | (1,370 | ) | — | (28,688 | ) | (6,149 | ) | ||||||||||||||||||||
Total net derivatives | $ | (21,435 | ) | $ | — | $ | (871 | ) | $ | 186 | $ | (1,144 | ) | $ | 426 | $ | (23,450 | ) | $ | 612 | |||||||||||||||
-1 | 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. | ||||||||||||||||||||||||||||||||||
-2 | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: | ||||||||||||||||||||||||||||||||||
Other Assets | Other Liabilities | ||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
Gross position | $ | 5,238 | $ | 6,761 | $ | (28,688 | ) | $ | (6,149 | ) | |||||||||||||||||||||||||
Impact of master netting agreement | (4,045 | ) | (4,981 | ) | 4,045 | 4,981 | |||||||||||||||||||||||||||||
Derivative values with impact of master netting agreements (as carried on balance sheet) | 1,193 | 1,780 | (24,643 | ) | (1,168 | ) | |||||||||||||||||||||||||||||
Cash collateral (held) pledged(1) | (900 | ) | (5,190 | ) | 72,478 | 40 | |||||||||||||||||||||||||||||
Net position | $ | 293 | $ | (3,410 | ) | $ | 47,835 | $ | (1,128 | ) | |||||||||||||||||||||||||
-1 | Cash collateral amount calculations include outstanding accrued interest payable/receivable. | ||||||||||||||||||||||||||||||||||
Offsetting Assets | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: | ||||||||||||||||||||||||||||||||||
Other Assets | Other Liabilities | ||||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||||||
Gross position | $ | 5,238 | $ | 6,761 | $ | (28,688 | ) | $ | (6,149 | ) | |||||||||||||||||||||||||
Impact of master netting agreement | (4,045 | ) | (4,981 | ) | 4,045 | 4,981 | |||||||||||||||||||||||||||||
Derivative values with impact of master netting agreements (as carried on balance sheet) | 1,193 | 1,780 | (24,643 | ) | (1,168 | ) | |||||||||||||||||||||||||||||
Cash collateral (held) pledged(1) | (900 | ) | (5,190 | ) | 72,478 | 40 | |||||||||||||||||||||||||||||
Net position | $ | 293 | $ | (3,410 | ) | $ | 47,835 | $ | (1,128 | ) | |||||||||||||||||||||||||
-1 | Cash collateral amount calculations include outstanding accrued interest payable/receivable. | ||||||||||||||||||||||||||||||||||
Schedule of Notional Amounts of Outstanding Derivative Positions | |||||||||||||||||||||||||||||||||||
Cash Flow | Fair Value | Trading | Total | ||||||||||||||||||||||||||||||||
December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | December 31, | ||||||||||||||||||||||||||||
2014 | 2013 | 2014 | 2013 | 2014 | 2013 | 2014 | 2013 | ||||||||||||||||||||||||||||
Notional Values | |||||||||||||||||||||||||||||||||||
Interest rate swaps | $ | 1,106,920 | $ | — | $ | 3,044,492 | $ | 2,089,624 | $ | 973,539 | $ | 575,131 | $ | 5,124,951 | $ | 2,664,755 | |||||||||||||||||||
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | Impact of Derivatives on the Consolidated Statements of Income | ||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Fair Value Hedges | |||||||||||||||||||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||||||||||||||||
Hedge ineffectiveness gains (losses) recorded in earnings | $ | 1,718 | $ | (558 | ) | $ | (6,061 | ) | |||||||||||||||||||||||||||
Realized gains recorded in interest expense | 20,958 | 28,668 | 35,988 | ||||||||||||||||||||||||||||||||
Total | $ | 22,676 | $ | 28,110 | $ | 29,927 | |||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||||||||||||||||
Hedge ineffectiveness losses recorded in earnings | $ | (520 | ) | $ | — | $ | — | ||||||||||||||||||||||||||||
Realized losses recorded in interest expense | (9,070 | ) | — | — | |||||||||||||||||||||||||||||||
Total | $ | (9,590 | ) | $ | — | $ | — | ||||||||||||||||||||||||||||
Trading | |||||||||||||||||||||||||||||||||||
Interest rate swaps: | |||||||||||||||||||||||||||||||||||
Interest reclassification | $ | (2,250 | ) | $ | 1,285 | $ | 87 | ||||||||||||||||||||||||||||
Change in fair value of future interest payments recorded in earnings | (2,944 | ) | (87 | ) | 513 | ||||||||||||||||||||||||||||||
Total(1) | (5,194 | ) | 1,198 | 600 | |||||||||||||||||||||||||||||||
Total | $ | 7,892 | $ | 29,308 | $ | 30,527 | |||||||||||||||||||||||||||||
-1 | Amounts included in "gains (losses) on derivatives and hedging activities, net." | ||||||||||||||||||||||||||||||||||
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | Impact of Derivatives on the Statements of Changes in Stockholders' Equity | ||||||||||||||||||||||||||||||||||
Years Ended December 31, | |||||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | |||||||||||||||||||||||||||||||||
Amount of loss recognized in other comprehensive income | $ | (28,842 | ) | $ | — | $ | — | ||||||||||||||||||||||||||||
Amount of loss reclassified in interest expense(1) | (9,070 | ) | — | — | |||||||||||||||||||||||||||||||
Total change in other comprehensive income for unrealized losses on derivatives | $ | (19,772 | ) | $ | — | $ | — | ||||||||||||||||||||||||||||
-1 | Amounts included in “realized gains (losses) recorded in interest expense” in the “Impact of Derivatives on the Consolidated Statements of Income” table. |
Stockholders_Equity_Tables
Stockholders' Equity (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Equity [Abstract] | |||||||||||||
Class of Treasury Stock | The following table summarizes our common share repurchases and issuances associated with these programs. | ||||||||||||
Years Ended December 31, | |||||||||||||
(Shares and per share amounts in actuals) | 2014 | 2013 | 2012 | ||||||||||
Shares repurchased related to employee stock-based compensation plans(1) | 1,365,277 | 6,365,002 | 4,547,785 | ||||||||||
Average purchase price per share | $ | 8.93 | $ | 21.76 | $ | 15.86 | |||||||
Common shares issued(2) | 2,013,805 | 9,702,976 | 6,432,643 | ||||||||||
(1) | Comprises 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) | Common shares issued under our various compensation and benefit plans. | ||||||||||||
Schedule of Investments in and Advances to Affiliates, Schedule of Investments | The components of the net transfers (to)/from the entity that is now a subsidiary of Navient are summarized below: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Capital contributions: | |||||||||||||
Loan origination activities | $ | 32,452 | $ | 124,722 | $ | 119,094 | |||||||
Loan sales | 45 | 35 | 13,502 | ||||||||||
Corporate overhead activities | 21,216 | 62,031 | 69,830 | ||||||||||
Special cash contribution | 472,718 | — | — | ||||||||||
Other | 19,650 | 2,004 | 5,429 | ||||||||||
Total capital contributions | 546,081 | 188,792 | 207,855 | ||||||||||
Dividend | — | (120,000 | ) | (420,000 | ) | ||||||||
Corporate push-down | 4,977 | 3,093 | 1,241 | ||||||||||
Net change in income tax accounts | 15,659 | (134,219 | ) | (78,842 | ) | ||||||||
Net change in receivable/payable | (87,277 | ) | (101,044 | ) | (94,264 | ) | |||||||
Other | (31 | ) | — | — | |||||||||
Total net transfers (to)/from the entity that is now a subsidiary of Navient | $ | 479,409 | $ | (163,378 | ) | $ | (384,010 | ) | |||||
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Earnings Per Share [Abstract] | |||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows. | ||||||||||||
Years Ended December 31, | |||||||||||||
(In thousands, except per share data) | 2014 | 2013 | 2012 | ||||||||||
Numerator: | |||||||||||||
Net income attributable to SLM Corporation | $ | 194,219 | $ | 258,945 | $ | 217,620 | |||||||
Preferred stock dividends | 12,933 | — | — | ||||||||||
Net income attributable to SLM Corporation common stock | $ | 181,286 | $ | 258,945 | $ | 217,620 | |||||||
Denominator: | |||||||||||||
Weighted average shares used to compute basic EPS | 423,970 | 440,108 | 476,118 | ||||||||||
Effect of dilutive securities: | |||||||||||||
Dilutive effect of stock options, restricted stock, restricted stock units and Employee Stock Purchase Plan ("ESPP") (1)(2) | 8,299 | 8,441 | 6,774 | ||||||||||
Weighted average shares used to compute diluted EPS | 432,269 | 448,549 | 482,892 | ||||||||||
Basic earnings per common share attributable to SLM Corporation | $ | 0.43 | $ | 0.59 | $ | 0.46 | |||||||
Diluted earnings per common share attributable to SLM Corporation | $ | 0.42 | $ | 0.58 | $ | 0.45 | |||||||
__________ | |||||||||||||
(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 years ended December 31, 2014, 2013 and 2012, securities covering approximately 3 million, 3 million and 12 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. |
StockBased_Compensation_Plans_1
Stock-Based Compensation Plans and Arrangements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||
Black-Scholes Model Assumptions for Calculating Stock Option Fair Values | The fair values of the options granted in the years ended December 31, 2014, 2013 and 2012 were estimated as of the grant date using a Black-Scholes option pricing model with the following weighted average assumptions: | ||||||||||||
Years Ended December 31, | |||||||||||||
(Dollars per share) | 2014 | 2013 | 2012 | ||||||||||
Risk-free interest rate | 0.76 | % | 0.65 | % | 0.6 | % | |||||||
Expected volatility | 26 | % | 31 | % | 44 | % | |||||||
Expected dividend rate | 2.48 | % | 3.35 | % | 3.13 | % | |||||||
Expected life of the option | 2.9 years | 2.8 years | 2.8 years | ||||||||||
Weighted average fair value of options granted | $ | 3.48 | $ | 3.11 | $ | 4.12 | |||||||
Stock Option Activity | The following table summarizes stock option activity for the year ended December 31, 2014. | ||||||||||||
(Dollars in thousands, except per share data) | Number of | Weighted | Weighted | Aggregate | |||||||||
Options | Average | Average | Intrinsic | ||||||||||
Exercise | Remaining | Value(1) | |||||||||||
Price per | Contractual | ||||||||||||
Share | Term | ||||||||||||
Outstanding at December 31, 2013 | 3,851,120 | $ | 14.6 | ||||||||||
Granted | 16,132 | 24.24 | |||||||||||
Exercised(2)(3) | (2,196,575 | ) | 6.19 | ||||||||||
Canceled | (148,159 | ) | 21.86 | ||||||||||
Spin-Off adjustment(4) | 14,632,601 | 8.22 | |||||||||||
Outstanding at December 31, 2014(5)(6) | 16,155,119 | $ | 9.91 | 3.2 years | $ | 62,144 | |||||||
Exercisable at December 31, 2014 | 12,985,828 | $ | 8.32 | 3.2 years | $ | 50,154 | |||||||
(1) | The aggregate intrinsic value represents the total intrinsic value (the aggregate difference between our closing stock price on December 31, 2014 and the exercise price of in-the-money options) that would have been received by the option holders if all in-the-money options had been exercised on December 31, 2014. | ||||||||||||
(2) | The total intrinsic value of options exercised was $11,430, $8,467 and $5,410 for the years ended December 31, 2014, 2013 and 2012, respectively. | ||||||||||||
(3) | Cash of Fifty-three thousand was received from option exercises for the year ended December 31, 2014. The actual tax benefit realized for the tax deductions from option exercises totaled $4,853 for the year ended December 31, 2014. | ||||||||||||
(4) | Represents the adjustment to preserve the intrinsic value of the outstanding equity awards held by SLM and Navient employees. | ||||||||||||
(5) | As of December 31, 2014, there was $362 of unrecognized compensation cost related to stock options net of estimated forfeitures, which is expected to be recognized over a weighted average period of 1.0 year. | ||||||||||||
(6) | For net-settled options, gross number is reflected. | ||||||||||||
Restricted Stock Activity | The following table summarizes restricted stock activity for the year ended December 31, 2014. | ||||||||||||
(Amounts in thousands, except per share data) | Number of | Weighted | |||||||||||
Shares | Average Grant | ||||||||||||
Date | |||||||||||||
Fair Value | |||||||||||||
Non-vested at December 31, 2013 | 33,333 | $ | 12.81 | ||||||||||
Granted | 49,123 | 9.46 | |||||||||||
Vested(1) | (33,333 | ) | 12.81 | ||||||||||
Canceled | (684 | ) | 21.91 | ||||||||||
Spin-Off adjustment(2) | 6,529 | 7.89 | |||||||||||
Non-vested at December 31, 2014(3) | 54,968 | $ | 9.12 | ||||||||||
(1) | The total fair value of shares that vested during the years ended December 31, 2014, 2013 and 2012 was $427, $592 and $1,189, respectively. | ||||||||||||
(2) | Represents the adjustment to preserve the intrinsic value of the outstanding equity awards held by SLM and Navient employees. | ||||||||||||
(3) | As of December 31, 2014, there was $188 of unrecognized compensation cost related to restricted stock net of estimated forfeitures, which is expected to be recognized over a weighted average period of 0.5 years. | ||||||||||||
Restricted Stock Unit and Performance Stock Unit Activity | The following table summarizes RSU and PSU activity for the year ended December 31, 2014. | ||||||||||||
(Amounts in thousands, except per share data) | Number of | Weighted | |||||||||||
RSUs/ | Average Grant | ||||||||||||
PSUs | Date | ||||||||||||
Fair Value | |||||||||||||
Outstanding at December 31, 2013 | 1,421,007 | $ | 16.82 | ||||||||||
Granted | 1,904,169 | 18.3 | |||||||||||
Vested and converted to common stock(1) | (750,707 | ) | 16.83 | ||||||||||
Canceled | (367,684 | ) | 17.7 | ||||||||||
Spin-Off adjustment(2) | 4,072,958 | 7.16 | |||||||||||
Outstanding at December 31, 2014(3) | 6,279,743 | $ | 10.95 | ||||||||||
(1) | The total fair value of RSUs/PSUs that vested and converted to common stock during the years ended December 31, 2014, 2013 and 2012 was $12,636, $6,415 and $2,656, respectively. | ||||||||||||
(2) | This represents the adjustment to preserve the intrinsic value of the outstanding equity awards held by SLM and Navient employees. | ||||||||||||
(3) | As of December 31, 2014, there was $14,506 of unrecognized compensation cost related to RSUs net of estimated forfeitures, which is expected to be recognized over a weighted average period of 2.3 years. | ||||||||||||
Black-Scholes Model Assumptions for Calculating ESPP Fair Values | The fair values of the stock purchase rights of the ESPP offerings were calculated using a Black-Scholes option pricing model with the following weighted average assumptions. | ||||||||||||
Years Ended December 31, | |||||||||||||
(Dollars per share) | 2014 | 2013 | 2012 | ||||||||||
Risk-free interest rate | 0.13 | % | 0.15 | % | 0.13 | % | |||||||
Expected volatility | 25 | % | 29 | % | 29 | % | |||||||
Expected dividend rate | — | % | 3.51 | % | 3.27 | % | |||||||
Expected life of the option | 1 year | 1 year | 1 year | ||||||||||
Weighted average fair value of stock purchase rights | $ | 1.66 | $ | 2.95 | $ | 3.01 | |||||||
Fair_Value_Measurements_Tables
Fair Value Measurements (Tables) | 12 Months Ended | |||||||||||||||||||||||||||||||
Dec. 31, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Valuation of Financial Instruments that are Marked-To-Market on Recurring Basis | The following table summarizes the valuation of our financial instruments that are marked-to-fair value on a recurring basis. | |||||||||||||||||||||||||||||||
Fair Value Measurements on a Recurring Basis | ||||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||
Mortgage-backed securities | $ | — | $ | 168,934 | $ | — | $ | 168,934 | $ | — | $ | 102,105 | $ | — | $ | 102,105 | ||||||||||||||||
Derivative instruments | — | 5,238 | — | 5,238 | — | 6,761 | — | 6,761 | ||||||||||||||||||||||||
Total | $ | — | $ | 174,172 | $ | — | $ | 174,172 | $ | — | $ | 108,866 | $ | — | $ | 108,866 | ||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||
Derivative instruments | $ | — | $ | (28,688 | ) | $ | — | $ | (28,688 | ) | $ | — | $ | (6,149 | ) | $ | — | $ | (6,149 | ) | ||||||||||||
Total | $ | — | $ | (28,688 | ) | $ | — | $ | (28,688 | ) | $ | — | $ | (6,149 | ) | $ | — | $ | (6,149 | ) | ||||||||||||
Change in Balance Sheet Carrying Value Associated with Level 3 Financial Instruments Carried at Fair Value on Recurring Basis | The following table summarizes the change in balance sheet carrying value associated with level 3 financial instruments carried at fair value on a recurring basis. | |||||||||||||||||||||||||||||||
Asset-Backed Securities | ||||||||||||||||||||||||||||||||
Years Ended December 31, | ||||||||||||||||||||||||||||||||
2014 | 2013 | 2012 | ||||||||||||||||||||||||||||||
Balance, beginning of period | $ | — | $ | 532,155 | $ | 498,657 | ||||||||||||||||||||||||||
Total gains/(losses) (realized and unrealized): | ||||||||||||||||||||||||||||||||
Included in earnings | — | (21,490 | ) | 23,149 | ||||||||||||||||||||||||||||
Included in other comprehensive income | — | 63,813 | — | |||||||||||||||||||||||||||||
Included in earnings - accretion of discount | — | 7,596 | 10,349 | |||||||||||||||||||||||||||||
Proceeds from sale | — | (582,074 | ) | — | ||||||||||||||||||||||||||||
Transfers in and/or out of level 3 | — | — | — | |||||||||||||||||||||||||||||
Balance, end of period | $ | — | $ | — | $ | 532,155 | ||||||||||||||||||||||||||
Change in unrealized gains/(losses) relating to instruments still held at the reporting date | $ | — | $ | — | $ | 23,149 | ||||||||||||||||||||||||||
Fair Values of Financial Assets and Liabilities, Including Derivative Financial Instruments | The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. | |||||||||||||||||||||||||||||||
December 31, 2014 | December 31, 2013 | |||||||||||||||||||||||||||||||
Fair | Carrying | Difference | Fair | Carrying | Difference | |||||||||||||||||||||||||||
Value | Value | Value | Value | |||||||||||||||||||||||||||||
Earning assets | ||||||||||||||||||||||||||||||||
Loans held for investment, net | $ | 10,228,399 | $ | 9,509,786 | $ | 718,613 | $ | 8,541,919 | $ | 7,931,377 | $ | 610,542 | ||||||||||||||||||||
Cash and cash equivalents | 2,359,780 | 2,359,780 | — | 2,182,865 | 2,182,865 | — | ||||||||||||||||||||||||||
Available for sale investments | 168,934 | 168,934 | — | 102,105 | 102,105 | — | ||||||||||||||||||||||||||
Accrued interest receivable | 469,697 | 469,697 | — | 356,283 | 356,283 | — | ||||||||||||||||||||||||||
Tax indemnification receivable | 240,311 | 240,311 | — | — | — | — | ||||||||||||||||||||||||||
Derivative instruments | 5,238 | 5,238 | — | 6,761 | 6,761 | — | ||||||||||||||||||||||||||
Total earning assets | $ | 13,472,359 | $ | 12,753,746 | $ | 718,613 | $ | 11,189,933 | $ | 10,579,391 | $ | 610,542 | ||||||||||||||||||||
Interest-bearing liabilities | ||||||||||||||||||||||||||||||||
Money-market, savings and NOW accounts | $ | 5,231,736 | $ | 5,231,736 | $ | — | $ | 4,029,881 | $ | 4,029,881 | $ | — | ||||||||||||||||||||
Certificates of deposit | 5,313,645 | 5,308,818 | (4,827 | ) | 4,984,114 | 4,971,669 | (12,445 | ) | ||||||||||||||||||||||||
Accrued interest payable | 16,082 | 16,082 | — | 13,097 | 13,097 | — | ||||||||||||||||||||||||||
Derivative instruments | 28,688 | 28,688 | — | 6,149 | 6,149 | — | ||||||||||||||||||||||||||
Total interest-bearing liabilities | $ | 10,590,151 | $ | 10,585,324 | (4,827 | ) | $ | 9,033,241 | $ | 9,020,796 | $ | (12,445 | ) | |||||||||||||||||||
Excess of net asset fair value over carrying value | $ | 713,786 | $ | 598,097 | ||||||||||||||||||||||||||||
Regulatory_Capital_Tables
Regulatory Capital (Tables) | 12 Months Ended | |||||||||||||
Dec. 31, 2014 | ||||||||||||||
Banking and Thrift [Abstract] | ||||||||||||||
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following amounts and ratios are based upon the Bank's assets. | |||||||||||||
Actual | Well Capitalized Regulatory Requirements | |||||||||||||
Amount | Ratio | Amount | Ratio | |||||||||||
As of December 31, 2014: | ||||||||||||||
Tier I Capital (to Average Assets) | $ | 1,413,988 | 11.5 | % | $ | 614,709 | > | 5 | % | |||||
Tier I Capital (to Risk Weighted Assets) | $ | 1,413,988 | 15 | % | $ | 565,148 | > | 6 | % | |||||
Total Capital (to Risk Weighted Assets) | $ | 1,497,830 | 15.9 | % | $ | 941,913 | > | 10 | % | |||||
As of December 31, 2013: | ||||||||||||||
Tier I Capital (to Average Assets) | $ | 1,221,416 | 11.7 | % | $ | 521,973 | > | 5 | % | |||||
Tier I Capital (to Risk Weighted Assets) | $ | 1,221,416 | 16.4 | % | $ | 446,860 | > | 6 | % | |||||
Total Capital (to Risk Weighted Assets) | $ | 1,289,497 | 17.3 | % | $ | 745,374 | > | 10 | % | |||||
Income_Taxes_Tables
Income Taxes (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||
Reconciliations of Statutory U.S. Federal Income Tax Rates to Our Effective Tax Rate for Continuing Operations | Reconciliations of the statutory U.S. federal income tax rates to our effective tax rate for continuing operations follow: | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Statutory rate | 35 | % | 35 | % | 35 | % | |||||||
State tax, net of federal benefit | 2.9 | 2.6 | — | ||||||||||
Effect of state rate change on net deferred tax liabilities, net of federal benefit | 4.4 | — | (0.1 | ) | |||||||||
State, release valuation allowance on net operating losses | (4.0 | ) | — | — | |||||||||
Unrecognized tax benefits, U.S. federal and state, net of federal benefit | 4.8 | — | — | ||||||||||
Other, net | (1.2 | ) | 0.6 | 2 | |||||||||
Effective tax rate | 41.9 | % | 38.2 | % | 36.9 | % | |||||||
Components of Provision for Income Tax Expense (Benefit) | Income tax expense consists of: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Current provision: | |||||||||||||
Federal | $ | 137,573 | $ | 130,854 | $ | 126,484 | |||||||
State | 43,282 | 13,513 | 10,674 | ||||||||||
Total current provision | 180,855 | 144,367 | 137,158 | ||||||||||
Deferred (benefit)/provision: | |||||||||||||
Federal | (40,370 | ) | 13,240 | (9,747 | ) | ||||||||
State | (518 | ) | 1,327 | (1,268 | ) | ||||||||
Total deferred (benefit)/provision | (40,888 | ) | 14,567 | (11,015 | ) | ||||||||
Provision for income tax expense | $ | 139,967 | $ | 158,934 | $ | 126,143 | |||||||
Schedule of Deferred Tax Assets and Liabilities | The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Deferred tax assets: | |||||||||||||
Loan reserves | $ | 33,570 | $ | 26,853 | |||||||||
Stock-based compensation plans | 16,342 | 28,211 | |||||||||||
Deferred revenue | 418 | 607 | |||||||||||
Operating loss and credit carryovers | 14,324 | 1,273 | |||||||||||
Unrealized losses | 7,185 | 1,849 | |||||||||||
Accrued expenses not currently deductible | 10,606 | 2,853 | |||||||||||
Unrecorded tax benefits | 19,798 | 2,331 | |||||||||||
Other | 8,918 | 334 | |||||||||||
Total deferred tax assets | 111,161 | 64,311 | |||||||||||
Deferred tax liabilities: | |||||||||||||
Gains on repurchased debt | 251,671 | — | |||||||||||
Fixed assets | 5,849 | 3,181 | |||||||||||
Acquired intangible assets | 6,151 | 616 | |||||||||||
Student loan premiums and discounts, net | 3,050 | (87 | ) | ||||||||||
Other | 2,656 | 3 | |||||||||||
Total deferred tax liabilities | 269,377 | 3,713 | |||||||||||
Net deferred tax (liabilities) assets | $ | (158,216 | ) | $ | 60,598 | ||||||||
Summary of Changes in Unrecognized Tax Benefits | The following table summarizes changes in unrecognized tax benefits: | ||||||||||||
December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Unrecognized tax benefits at beginning of year | $ | 7,343.50 | $ | 3,951.10 | $ | 2,467.30 | |||||||
Increases resulting from tax positions taken during a prior period | 45,184.20 | 573.9 | 503.1 | ||||||||||
Increases resulting from tax positions taken during the current period | 7,712.50 | 2,818.50 | 980.7 | ||||||||||
Decreases related to settlements with taxing authorities | (235.7 | ) | — | — | |||||||||
Reductions related to the lapse of statute of limitations | (599.6 | ) | — | — | |||||||||
Unrecognized tax benefits at end of year | $ | 59,404.90 | $ | 7,343.50 | $ | 3,951.10 | |||||||
Parent_Only_Statements_Tables
Parent Only Statements (Tables) | 12 Months Ended | ||||||||||||
Dec. 31, 2014 | |||||||||||||
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |||||||||||||
Parent Only Condensed Balance Sheets | The following parent company-only financial information should be read in conjunction with the other notes to the consolidated financial statements. The accounting policies for the parent company-only financial statements are the same as those used in the presentation of the consolidated financial statements other than the parent company-only financial statements account for the parent company's investments in its subsidiaries under the equity method. | ||||||||||||
Parent Only Condensed Balance Sheets | |||||||||||||
December 31, | |||||||||||||
2014 | 2013 | ||||||||||||
Assets | |||||||||||||
Cash and cash equivalents | $ | 434,245 | $ | — | |||||||||
Total investments in subsidiaries (primarily Sallie Mae Bank) | 1,389,995 | 1,161,471 | |||||||||||
Tax indemnification receivable | 240,311 | — | |||||||||||
Due from subsidiaries, net | 32,408 | — | |||||||||||
Other assets | 1,943 | — | |||||||||||
Total assets | $ | 2,098,902 | $ | 1,161,471 | |||||||||
Liabilities and Equity | |||||||||||||
Liabilities | |||||||||||||
Income taxes payable, net | $ | 245,782 | $ | — | |||||||||
Payable due to Navient | 8,764 | — | |||||||||||
Other liabilities | 14,398 | — | |||||||||||
Total liabilities | $ | 268,944 | — | ||||||||||
Equity | |||||||||||||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | |||||||||||||
Series A: 3.3 million and 0 shares issued, respectively, at stated value of $50 | 165,000 | — | |||||||||||
Series B: 4 million and 0 shares issued, respectively, at stated value of $100 per share | 400,000 | — | |||||||||||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 425 million and 0 shares issued, respectively | 84,961 | — | |||||||||||
Additional paid-in capital | 1,090,511 | — | |||||||||||
Navient's subsidiary investment | — | 1,164,495 | |||||||||||
Accumulated other comprehensive loss (net of tax (benefit) of ($7,186) and ($1,849), respectively | (11,393 | ) | (3,024 | ) | |||||||||
Retained earnings | 113,066 | — | |||||||||||
Total SLM Corporation stockholders' equity before treasury stock | 1,842,145 | 1,161,471 | |||||||||||
Less: common stock held in treasury at cost: 1 million and 0 shares, respectively | (12,187 | ) | — | ||||||||||
Total equity | 1,829,958 | 1,161,471 | |||||||||||
Total liabilities and equity | $ | 2,098,902 | $ | 1,161,471 | |||||||||
Parent Only Condensed Statements of Income | Parent Only Condensed Statements of Income | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Interest income | $ | 4,980 | $ | — | $ | — | |||||||
Interest expense | — | — | — | ||||||||||
Net interest income | 4,980 | — | — | ||||||||||
Other income | 1,097 | — | — | ||||||||||
Operating expenses | 36,967 | 3,556 | 4,871 | ||||||||||
Loss before income tax expense and equity in net income from subsidiaries | (30,890 | ) | (3,556 | ) | (4,871 | ) | |||||||
Income tax (benefit) expense | (13,196 | ) | 133,121 | 102,842 | |||||||||
Equity in net income from subsidiaries (primarily Sallie Mae Bank) | 211,479 | 394,270 | 323,439 | ||||||||||
Net income | 193,785 | 257,593 | 215,726 | ||||||||||
Preferred stock dividends | 12,933 | — | — | ||||||||||
Net income attributable to common stock | $ | 180,852 | $ | 257,593 | $ | 215,726 | |||||||
Parent Only Condensed Statements of Cash Flows | Parent Only Condensed Statements of Cash Flows | ||||||||||||
Years Ended December 31, | |||||||||||||
2014 | 2013 | 2012 | |||||||||||
Cash flows from operating activities: | |||||||||||||
Net income | $ | 193,785 | $ | 257,593 | $ | 215,726 | |||||||
Adjustments to reconcile net income to net cash used in operating activities: | |||||||||||||
Undistributed earnings of subsidiaries | (211,479 | ) | (394,270 | ) | (323,439 | ) | |||||||
(Increase) decrease in investment in subsidiaries, net | 278,365 | 136,677 | 107,713 | ||||||||||
Decrease in tax indemnification receivable | 38,820 | — | — | ||||||||||
Increase in due from subsidiaries, net | (32,408 | ) | — | — | |||||||||
Increase in other assets | (5,447 | ) | — | — | |||||||||
Decrease in income taxes payable, net | (312,770 | ) | — | — | |||||||||
Increase in payable due to entity that is a subsidiary of Navient | 8,764 | — | — | ||||||||||
Increase in other liabilities | 14,398 | — | — | ||||||||||
Total adjustments | (221,757 | ) | (257,593 | ) | (215,726 | ) | |||||||
Net cash used in operating activities | (27,972 | ) | — | — | |||||||||
Cash flows from investing activities: | |||||||||||||
Net cash provided by (used in) investing activities | — | — | — | ||||||||||
Cash flows from financing activities: | |||||||||||||
Special cash contribution from Navient | 472,718 | — | — | ||||||||||
Excess tax benefit from exercise of stock-based awards | 2,432 | — | — | ||||||||||
Preferred stock dividends paid | (12,933 | ) | — | — | |||||||||
Net cash provided by financing activities | 462,217 | — | — | ||||||||||
Net increase in cash and cash equivalents | 434,245 | — | — | ||||||||||
Cash and cash equivalents at beginning of year | — | — | — | ||||||||||
Cash and cash equivalents at end of year | $ | 434,245 | $ | — | $ | — | |||||||
Selected_Quarterly_Financial_I1
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended | ||||||||||||||||
Dec. 31, 2014 | |||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||
Schedule of Quarterly Financial Information | |||||||||||||||||
2014 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
(Dollars in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | |||||||||||||
Net interest income | $ | 139,238 | $ | 144,539 | $ | 144,026 | $ | 150,676 | |||||||||
Less: provisions for loan losses | 39,159 | 1,014 | 14,898 | 30,458 | |||||||||||||
Net interest income after provisions for loan losses | 100,079 | 143,525 | 129,128 | 120,218 | |||||||||||||
Gains on sales of loans, net | 33,888 | 1,928 | 85,147 | 396 | |||||||||||||
(Losses) gains on derivative and hedging activities, net | (764 | ) | (9,458 | ) | 5,401 | 825 | |||||||||||
Other income | 8,136 | 15,229 | 5,461 | 11,095 | |||||||||||||
Operating expenses | 63,671 | 61,127 | 72,721 | 77,362 | |||||||||||||
Acquired intangible asset impairment and amortization expense | 1,767 | 508 | 508 | 507 | |||||||||||||
Restructuring and other reorganization expenses | 229 | 13,520 | 14,079 | 10,483 | |||||||||||||
Income tax expense | 28,658 | 31,941 | 54,903 | 24,465 | |||||||||||||
Net income | 47,014 | 44,128 | 82,926 | 19,717 | |||||||||||||
Less: net loss attributable to noncontrolling interest | (434 | ) | — | — | — | ||||||||||||
Net income attributable to SLM Corporation | 47,448 | 44,128 | 82,926 | 19,717 | |||||||||||||
Preferred stock dividends | — | 3,228 | 4,850 | 4,855 | |||||||||||||
Net income attributable to SLM Corporation common stock | $ | 47,448 | $ | 40,900 | $ | 78,076 | $ | 14,862 | |||||||||
Basic earnings per common share attributable to SLM Corporation | $ | 0.11 | $ | 0.1 | $ | 0.18 | $ | 0.04 | |||||||||
Diluted earnings per common share attributable to SLM Corporation | $ | 0.11 | $ | 0.09 | $ | 0.18 | $ | 0.03 | |||||||||
2013 | |||||||||||||||||
First | Second | Third | Fourth | ||||||||||||||
(Dollars in thousands, except per share data) | Quarter | Quarter | Quarter | Quarter | |||||||||||||
Net interest income | $ | 115,702 | $ | 107,417 | $ | 116,783 | $ | 122,213 | |||||||||
Less: provisions for loan losses | 20,692 | (1,015 | ) | 20,404 | 29,258 | ||||||||||||
Net interest income after provisions for loan losses | 95,010 | 108,432 | 96,379 | 92,955 | |||||||||||||
Gains on sales of loans, net | 75,222 | 73,441 | 43,434 | 4,496 | |||||||||||||
Gains (losses) on derivative and hedging activities, net | 610 | (52 | ) | 297 | (215 | ) | |||||||||||
Other income | 7,799 | 8,665 | 9,416 | 75,155 | |||||||||||||
Operating expenses | 60,771 | 66,771 | 68,717 | 74,215 | |||||||||||||
Acquired intangible asset impairment and amortization expense | 537 | 536 | 1,480 | 764 | |||||||||||||
Restructuring and other reorganization expenses | 23 | 84 | — | 619 | |||||||||||||
Income tax expense | 44,765 | 46,973 | 30,272 | 36,923 | |||||||||||||
Net income | 72,545 | 76,122 | 49,057 | 59,870 | |||||||||||||
Less: net loss attributable to noncontrolling interest | (340 | ) | (347 | ) | (333 | ) | (332 | ) | |||||||||
Net income attributable to SLM Corporation | 72,885 | 76,469 | 49,390 | 60,202 | |||||||||||||
Preferred stock dividends | — | — | — | — | |||||||||||||
Net income attributable to SLM Corporation common stock | $ | 72,885 | $ | 76,469 | $ | 49,390 | $ | 60,202 | |||||||||
Basic earnings per common share attributable to SLM Corporation | $ | 0.16 | $ | 0.17 | $ | 0.11 | $ | 0.14 | |||||||||
Diluted earnings per common share attributable to SLM Corporation | $ | 0.16 | $ | 0.17 | $ | 0.11 | $ | 0.14 | |||||||||
Organization_and_Business_Addi
Organization and Business - Additional Information (Detail) | Apr. 30, 2014 |
entity | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of publicly-traded entities | 2 |
Number of shares issued for each share prior to spin-off | 1 |
Significant_Accounting_Policie2
Significant Accounting Policies - Additional Information (Detail) (USD $) | 0 Months Ended | 4 Months Ended | 8 Months Ended | 12 Months Ended | ||||
Apr. 30, 2014 | Apr. 29, 2014 | Apr. 29, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Apr. 30, 2014 | |
collection_bucket | ||||||||
Accounting Policies [Abstract] | ||||||||
Beginning equity balance post-spin-off | $1,710,000,000 | $1,710,000,000 | ||||||
Preferred stock value outstanding | 565,000,000 | 565,000,000 | ||||||
Special cash contribution from Navient | 473,000,000 | 472,718,000 | 0 | 0 | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Private Education Loan loss confirmation period (in years) | 1 year | |||||||
Basis period for actual collection experience | 16 months | |||||||
Period of Collection Experience Using Two Hundred Twelve Day Charge Off Strategies | 7 months | |||||||
FFELP Loan loss confirmation period (in years) | 2 years | |||||||
Loan delinquent period | 90 days | |||||||
Number of Data Collection Buckets Used | 4 | |||||||
Period of Collection Experience Using One Hundred Twenty Day Charge Off Strategies | 9 months | |||||||
Minimum days past due that company may required spin-off company to purchase loans | 90 days | |||||||
Period of hardship forbearance | 6 months | |||||||
Private education loans | 8,246,647,000 | 8,246,647,000 | 6,506,642,000 | |||||
Loss confirmation period | 1 year | 2 years | ||||||
Percentage of Private Education Loans related to borrowers inschool, grace or deferment | 36.00% | 36.00% | 39.00% | |||||
Dollar amount of change in allowance due to policy change | 14,000,000 | |||||||
Period after last payment contractually due private education loan considered to be delinquent | 31 days | |||||||
Percentage reimbursement on all qualifying default claims period one | 98.00% | 98.00% | ||||||
Percentage reimbursement on all qualifying default claims period three | 100.00% | 100.00% | ||||||
Percentage reimbursement on all qualifying default claims period two | 97.00% | 97.00% | ||||||
Consolidation loan rebate fee | 1.05% | |||||||
Loans sold | 805,000,000 | 2,400,000,000 | 2,600,000,000 | |||||
Gains on sales of loans, net | 36,000,000 | 85,000,000 | 121,359,000 | 196,593,000 | 235,202,000 | |||
Tax indemnification receivable | 291,000,000 | 240,311,000 | 240,311,000 | 0 | 291,000,000 | |||
Remaining amount of indemnification | 224,000,000 | 224,000,000 | ||||||
Deferred tax asset discount | 27,000,000 | 16,000,000 | 16,000,000 | 27,000,000 | ||||
Deferred tax liability | 310,000,000 | 310,000,000 | ||||||
Deferred taxes | 283,000,000 | 252,000,000 | 252,000,000 | 283,000,000 | ||||
Deferred tax assets | 310,000,000 | 310,000,000 | ||||||
Deferred tax asset discount | 19,000,000 | 19,000,000 | ||||||
Tax liability balance | 268,000,000 | 268,000,000 | ||||||
Minimum | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loan delinquent period | 30 days | 150 days | 30 days | |||||
Maximum | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loan delinquent period | 120 days | 212 days | 120 days | |||||
FFELP Loans Rehabilitated [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans purchased | 7,464,000 | 474,293,000 | ||||||
Percent of loan par value | 101.67% | 101.67% | 95.00% | |||||
Split Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Private education loans | $117,000,000 | $117,000,000 |
Cash_and_Cash_Equivalents_Deta
Cash and Cash Equivalents (Details) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | Dec. 31, 2013 | |
Cash and Cash Equivalents [Abstract] | ||
Cash due from Federal Reserve Bank | $2,344,901,000 | $2,181,463,000 |
Cash due from depository institutions | 14,879,000 | 1,402,000 |
Outstanding cash equivalents | 0 | 0 |
Interest income from term deposit facility | 1,248,000 | 813,000 |
Funds on deposit under the Term Deposit Facility program | 0 | 0 |
Average reserve balances with Federal Reserve | $324,000 | $1,548,000 |
Investments_Investments_Amorti
Investments Investments - Amortized Cost and Fair Value of Securities Available for Sale (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $167,740 | $106,977 |
Mortgage-backed securities | 168,934 | 102,105 |
Mortgage-backed securities | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 167,740 | 106,977 |
Gross Unrealized Gains | 2,686 | 706 |
Gross Unrealized Losses | -1,492 | -5,578 |
Mortgage-backed securities | $168,934 | $102,105 |
Investments_Gross_Unrealized_L
Investments - Gross Unrealized Losses and Fair Value for Mortgage-Backed in Unrealized Loss Position (Details) (Mortgage-backed securities, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Gross unrealized losses | ($27) | ($3,633) |
12 months or more, Gross unrealized losses | -1,465 | -1,945 |
Total, Gross unrealized losses | -1,492 | -5,578 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, Estimated fair value | 12,147 | 69,809 |
12 months or more, Estimated fair value | 41,462 | 16,176 |
Total, Estimated fair value | $53,609 | $85,985 |
Investments_Investments_Additi
Investments Investments - Additional Information (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Oct. 31, 2013 |
In Thousands, unless otherwise specified | |||
Investment Holdings [Line Items] | |||
Investments at cost | $167,740 | $106,977 | |
Gain on sale of asset-backed security | 63,813 | ||
Par value of mortgage-backed securities pledged to FRB | 160,949 | 103,049 | |
Mortgage-backed securities | |||
Investment Holdings [Line Items] | |||
Investments at cost | 167,740 | 106,977 | |
Number of mortgage-backed securities with unrealized losses | 10 | 20 | |
Number of mortgage-backed securities | 13 | 33 | |
Ginnie Mae | Mortgage-backed securities | |||
Investment Holdings [Line Items] | |||
Investments at cost | 86,329 | ||
Number of mortgage-backed securities with unrealized losses | 9 | 10 | |
Fannie Mae | Mortgage-backed securities | |||
Investment Holdings [Line Items] | |||
Investments at cost | 65,850 | ||
Freddie Mac | Mortgage-backed securities | |||
Investment Holdings [Line Items] | |||
Investments at cost | $15,561 |
Investments_Investments_Maturi
Investments Investments - Maturity Table (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments at cost | $167,740 | $106,977 |
Mortgage-backed securities | 168,934 | 102,105 |
Maturity 2038 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments at cost | 604 | |
Mortgage-backed securities | 647 | |
Maturity 2039 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments at cost | 11,298 | |
Mortgage-backed securities | 12,145 | |
Maturity 2042 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments at cost | 27,721 | |
Mortgage-backed securities | 26,617 | |
Maturity 2043 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments at cost | 73,534 | |
Mortgage-backed securities | 74,505 | |
Maturity 2044 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Investments at cost | 54,583 | |
Mortgage-backed securities | $55,020 |
Loans_Held_for_Investment_Addi
Loans Held for Investment - Additional Information (Detail) (USD $) | 12 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Jul. 01, 2006 | Jun. 30, 2006 |
Finance Receivable Transferred To Held For Sale [Line Items] | ||||
Percent of private loans indexed to LIBOR | 83.00% | |||
Tier 1 of government guarantee | 97.00% | |||
Tier 2 of government guarantee | 98.00% | |||
Tier 3 of government guarantee | 100.00% | |||
Estimated weighted average life of student loans | 6 years 2 months 6 days | 7 years | ||
Period of loans past due that have accrued interest | 90 days | |||
FFELP Loans | ||||
Finance Receivable Transferred To Held For Sale [Line Items] | ||||
90 or more days delinquent | 201,703 | 220,413 | ||
Private Education Loans | ||||
Finance Receivable Transferred To Held For Sale [Line Items] | ||||
90 or more days delinquent | 10,701 | 2,667 | ||
FFELP Loans | ||||
Finance Receivable Transferred To Held For Sale [Line Items] | ||||
Loans pledged to Borrower in Custody | 0 | 95,555 | ||
Private Education Loans | ||||
Finance Receivable Transferred To Held For Sale [Line Items] | ||||
Loans pledged to Borrower in Custody | 1,408,745 | 870,736 |
Loans_Held_for_Investment_Stud
Loans Held for Investment - Student Loan Portfolio by Program (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Private Education Loans | $8,311,376 | $6,563,342 |
Deferred origination costs | 13,845 | 5,063 |
Allowance for loan losses | -78,574 | -61,763 |
Total Private Education Loans, net | 8,246,647 | 6,506,642 |
FFELP Loans | 1,264,807 | 1,426,972 |
Unamortized acquisition costs, net | 3,600 | 4,081 |
Allowance for loan losses | -5,268 | -6,318 |
Total FFELP Loans, net | 1,263,139 | 1,424,735 |
Loans held for investment, net | $9,509,786 | $7,931,377 |
Loans_Held_for_Investment_Stud1
Loans Held for Investment - Student Loan Portfolio Average Balances (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Receivables [Abstract] | |||
Average balance of Private Education Loans | $7,563,356 | $5,996,651 | $5,347,239 |
Average Balance, FFELP Loans | 1,353,497 | 1,142,979 | 527,935 |
Average Balance, Total portfolio | $8,916,853 | $7,139,630 | $5,875,174 |
Weighted Average Interest Rate, Private Education Loans | 8.16% | 8.16% | 8.34% |
Weighted Average Interest Rate, FFELP Loans | 3.24% | 3.32% | 2.85% |
Loans_Held_for_Investment_by_R
Loans Held for Investment - by Region (Details) | Dec. 31, 2014 | Dec. 31, 2013 |
Loans held for investment by Region [Line Items] | ||
Percentage of Loans concentrated in major states | 38.80% | 37.80% |
California | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 10.10% | 9.70% |
New York | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 9.50% | 9.30% |
Pennsylvania | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 7.70% | 7.50% |
New Jersey | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 6.30% | 6.20% |
Illinois | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 5.20% | 5.10% |
Allowance_for_Loan_Losses_Allo
Allowance for Loan Losses - Allowance for Credit Losses and Recorded Investments in Loans (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Allowance for Loan Losses | ||||||||||||||
Beginning balance | $68,081 | $69,189 | $68,081 | $69,189 | $69,492 | |||||||||
Total provision | 30,458 | 14,898 | 1,014 | 39,159 | 29,258 | 20,404 | -1,015 | 20,692 | 85,529 | 69,339 | 66,116 | |||
Charge-offs | -17,438 | [1] | -2,037 | [2] | -100 | [2] | ||||||||
Recoveries | 1,155 | |||||||||||||
Net charge-offs | -16,283 | |||||||||||||
Student loan sales | -53,485 | [3] | -68,410 | [3] | -66,319 | [3] | ||||||||
Ending Balance | 83,842 | 68,081 | 83,842 | 68,081 | 69,189 | |||||||||
Allowance: | ||||||||||||||
Ending balance: individually evaluated for impairment | 9,815 | 0 | 9,815 | 0 | 0 | |||||||||
Ending balance: collectively evaluated for impairment | 74,027 | 68,081 | 74,027 | 68,081 | 69,189 | |||||||||
Loans: | ||||||||||||||
Ending balance: individually evaluated for impairment | 59,402 | 0 | 59,402 | 0 | 0 | |||||||||
Ending balance: collectively evaluated for impairment | 9,516,781 | 7,990,314 | 9,516,781 | 7,990,314 | 6,551,429 | |||||||||
FFELP Loans | ||||||||||||||
Allowance for Loan Losses | ||||||||||||||
Beginning balance | 6,318 | 3,971 | 6,318 | 3,971 | 402 | |||||||||
Total provision | 1,946 | 4,384 | 3,669 | |||||||||||
Charge-offs | -2,996 | [1] | -2,037 | [2] | -100 | [2] | ||||||||
Recoveries | 0 | |||||||||||||
Net charge-offs | -2,996 | |||||||||||||
Student loan sales | 0 | [3] | 0 | [3] | 0 | [3] | ||||||||
Ending Balance | 5,268 | 6,318 | 5,268 | 6,318 | 3,971 | |||||||||
Allowance: | ||||||||||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | ||||||||||
Ending balance: collectively evaluated for impairment | 5,268 | 6,318 | 5,268 | 6,318 | 3,971 | |||||||||
Loans: | ||||||||||||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 | 0 | |||||||||
Ending balance: collectively evaluated for impairment | 1,264,807 | 1,426,972 | 1,264,807 | 1,426,972 | 1,043,521 | |||||||||
Net charge-offs as a percentage of average loans in repayment | 0.31% | 0.23% | 0.03% | |||||||||||
Allowance as a percentage of the ending total loan balance | 0.42% | 0.44% | 0.38% | |||||||||||
Allowance as a percentage of the ending loans in repayment | 0.57% | 0.62% | 0.52% | |||||||||||
Allowance coverage of net charge-offs | 1.76 | 3.1 | 39.77 | |||||||||||
Ending total loans | 1,264,807 | 1,426,972 | 1,264,807 | 1,426,972 | 1,043,521 | |||||||||
Average loans in repayment | 972,390 | 870,460 | 367,789 | |||||||||||
Ending loans in repayment | 926,891 | 1,023,471 | 926,891 | 1,023,471 | 770,772 | |||||||||
Private Education Loans | ||||||||||||||
Allowance for Loan Losses | ||||||||||||||
Beginning balance | 61,763 | 65,218 | 61,763 | 65,218 | 69,090 | |||||||||
Total provision | 83,583 | 64,955 | 62,447 | |||||||||||
Charge-offs | -14,442 | [1] | 0 | [2] | 0 | [2] | ||||||||
Recoveries | 1,155 | |||||||||||||
Net charge-offs | -13,287 | |||||||||||||
Student loan sales | -53,485 | [3] | -68,410 | [3] | -66,319 | [3] | ||||||||
Ending Balance | 78,574 | 61,763 | 78,574 | 61,763 | 65,218 | |||||||||
Allowance: | ||||||||||||||
Ending balance: individually evaluated for impairment | 9,815 | 0 | 9,815 | 0 | 0 | |||||||||
Ending balance: collectively evaluated for impairment | 68,759 | 61,763 | 68,759 | 61,763 | 65,218 | |||||||||
Loans: | ||||||||||||||
Ending balance: individually evaluated for impairment | 59,402 | 0 | 59,402 | 0 | 0 | |||||||||
Ending balance: collectively evaluated for impairment | 8,251,974 | 6,563,342 | 8,251,974 | 6,563,342 | 5,507,908 | |||||||||
Net charge-offs as a percentage of average loans in repayment | 0.30% | 0.00% | 0.00% | |||||||||||
Allowance as a percentage of the ending total loan balance | 0.95% | 0.94% | 1.18% | |||||||||||
Allowance as a percentage of the ending loans in repayment | 1.53% | 1.55% | 1.74% | |||||||||||
Allowance coverage of net charge-offs | 5.91 | 0 | 0 | |||||||||||
Ending total loans | 8,311,376 | 6,563,342 | 8,311,376 | 6,563,342 | 5,507,908 | |||||||||
Average loans in repayment | 4,495,709 | 3,509,502 | 3,928,692 | |||||||||||
Ending loans in repayment | $5,149,215 | $3,972,317 | $5,149,215 | $3,972,317 | $3,750,223 | |||||||||
[1] | Prior to the Spin-Off, Private Education Loans were sold to an entity that is now a subsidiary of Navient, prior to being charged off. | |||||||||||||
[2] | Prior to the Spin-Off, Private Education Loans were sold to an entity that is now a subsidiary of Navient prior to being charged off. | |||||||||||||
[3] | Represents fair value write-downs on loans sold. |
Allowance_for_Loan_Losses_Addi
Allowance for Loan Losses - Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Millions, unless otherwise specified | Dec. 31, 2014 | Jul. 01, 2006 | Dec. 31, 2013 |
Schedule Of Allowance For Credit Losses And Recorded Investment In Financing Receivables Table [Line Items] | |||
Criteria for loans to be considered as nonperforming | 90 days | ||
TDR payment default period | 60 days | ||
Tier 1 of government guarantee | 97.00% | ||
Period of loans past due that have accrued interest | 90 days | ||
Private Education Loans | |||
Schedule Of Allowance For Credit Losses And Recorded Investment In Financing Receivables Table [Line Items] | |||
Troubled debt restructuring | 59.4 | ||
FFELP Loans | |||
Schedule Of Allowance For Credit Losses And Recorded Investment In Financing Receivables Table [Line Items] | |||
Tier 1 of government guarantee | 97.00% | ||
FFELP rehabilitation loans | 785 | ||
Percentage of FFELP rehabilitation loans | 62.10% | 62.90% |
Allowance_for_Loan_Losses_Reco
Allowance for Loan Losses - Recorded Investment, Unpaid Principal Balance and Related Allowance for TDR Loans (Details) (USD $) | Dec. 31, 2014 |
In Thousands, unless otherwise specified | |
Receivables [Abstract] | |
TDR Loans, Recorded Investment | $60,278 |
TDR Loans, Unpaid Principal Balance | 59,402 |
TDR Loans, Allowance | $9,815 |
Allowance_for_Loan_Losses_Aver
Allowance for Loan Losses - Average Recorded Investment and Interest Income Recognized for TDR (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Receivables [Abstract] | |
TDR Loans, Average Recorded Investment | $23,290 |
TDR Loans, Interest Income Recognized | $1,105 |
Allowance_for_Loan_Losses_Age_
Allowance for Loan Losses - Age Analysis of Past Due Loan Delinquencies (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
In Thousands, unless otherwise specified | |||||
Loans in repayment and percentage of each status: | |||||
Private Education Loans allowance for losses | ($83,842) | ($68,081) | ($69,189) | ($69,492) | |
Troubled Debt Restructured Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans in in-school/grace/deferment | 2,915 | [1] | |||
Loans in forbearance | 18,620 | [2] | |||
Loans in repayment and percentage of each status: | |||||
Loans current | 34,554 | ||||
Loans delinquent 31-60 days | 1,953 | [3] | |||
Loans delinquent 61-90 days | 983 | [3] | |||
Loans delinquent greater than 90 days | 377 | [3] | |||
Total TDR loans in repayment | 37,867 | ||||
Loans current, in percentage | 91.20% | ||||
Loans delinquent 31-60 days, in percentage | 5.20% | [3] | |||
Loans delinquent 61-90 days, in percentage | 2.60% | [3] | |||
Loans delinquent greater than 90 days, in percentage | 1.00% | [3] | |||
Loans in repayment, in percentage | 100.00% | ||||
Total TDR loans, gross | 59,402 | ||||
Private Education Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Loans in in-school/grace/deferment | 3,027,143 | 2,574,711 | 1,748,757 | ||
Loans in forbearance | 135,018 | 16,314 | 8,928 | ||
Loans in repayment and percentage of each status: | |||||
Loans current | 5,045,600 | 3,933,143 | 3,705,634 | ||
Loans delinquent 31-60 days | 63,873 | 28,854 | 33,412 | ||
Loans delinquent 61-90 days | 29,041 | 10,280 | 10,483 | ||
Loans delinquent greater than 90 days | 10,701 | 40 | 694 | ||
Total TDR loans in repayment | 5,149,215 | 3,972,317 | 3,750,223 | ||
Loans current, in percentage | 98.00% | 99.00% | 98.80% | ||
Loans delinquent 31-60 days, in percentage | 1.20% | 0.70% | 0.90% | ||
Loans delinquent 61-90 days, in percentage | 0.60% | 0.30% | 0.30% | ||
Loans delinquent greater than 90 days, in percentage | 0.20% | 0.00% | 0.00% | ||
Loans in repayment, in percentage | 100.00% | 100.00% | 100.00% | ||
Total TDR loans, gross | 8,311,376 | 6,563,342 | 5,507,908 | ||
Private Education Loans deferred origination costs | 13,845 | 5,063 | 5,009 | ||
Total Private Education Loans | 8,325,221 | 6,568,405 | 5,512,917 | ||
Private Education Loans allowance for losses | -78,574 | -61,763 | -65,218 | -69,090 | |
Percentage of Private Education Loans in repayment | $8,246,647 | $6,506,642 | $5,447,699 | ||
Percentage of Private Education Loans in repayment | 62.00% | 60.50% | 68.10% | ||
Delinquencies as a percentage of Private Education Loans in repayment | 2.00% | 1.00% | 1.20% | ||
Loans in forbearance as a percentage of loans in repayment and forbearance | 2.60% | 0.40% | 0.20% | ||
[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. |
Allowance_for_Loan_Losses_Modi
Allowance for Loan Losses - Modified Loan Accounts for TDR (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Receivables [Abstract] | |
Modified Loans | $59,402 |
Charge-offs | 948 |
Payment-Default | $325 |
Allowance_for_Loan_Losses_Priv
Allowance for Loan Losses - Private Education Loan Portfolio Stratified by Key Credit Quality Indicators (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $8,311,376 | $6,563,342 | ||
Private Education Loans | Cosigners | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Private Education Loans with cosigner | 7,465,339 | [1] | 5,898,751 | [1] |
Private Education Loans without cosigner | 846,037 | [1] | 664,591 | [1] |
Private Education Loans with cosigner in percent | 90.00% | 90.00% | ||
Private Education Loans without cosigner in percent | 10.00% | 10.00% | ||
Total | 8,311,376 | [1] | 6,563,342 | [1] |
Total in percent | 100.00% | 100.00% | ||
Private Education Loans | School Type/FICO Scores | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 8,311,376 | [1] | 6,563,342 | [1] |
Total in percent | 100.00% | 100.00% | ||
Private Education Loans | Seasoning | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 8,311,376 | [1],[2] | 6,563,342 | [1],[2] |
Seasoning - based on monthly scheduled payments due from 1-12 payments | 2,373,117 | [1],[2] | 1,840,538 | [1],[2] |
Seasoning - based on monthly scheduled payments due from 13-24 payments | 1,532,042 | [1],[2] | 1,085,393 | [1],[2] |
Seasoning - based on monthly scheduled payments due from 25-36 payments | 755,143 | [1],[2] | 669,685 | [1],[2] |
Seasoning - based on monthly scheduled payments due from 37-48 payments | 411,493 | [1],[2] | 362,124 | [1],[2] |
Seasoning - based on monthly scheduled payments due from more than 48 payments | 212,438 | [1],[2] | 30,891 | [1],[2] |
Seasoning - based on monthly scheduled payments due from not yet in repayment | 3,027,143 | [1],[2] | 2,574,711 | [1],[2] |
Seasoning based on monthly scheduled payments due from 1-12 payments, in percent | 29.00% | [2] | 28.00% | [2] |
Seasoning based on monthly scheduled payments due from 13 - 24 payments, in percent | 18.00% | [2] | 17.00% | [2] |
Seasoning based on monthly scheduled payments due from 25 - 36 payments, in percent | 9.00% | [2] | 10.00% | [2] |
Seasoning based on monthly scheduled payments due from 37 - 48 payments, in percent | 5.00% | [2] | 6.00% | [2] |
Seasoning based on monthly scheduled payments due from more than 48 payments, in percent | 3.00% | [2] | 0.00% | [2] |
Seasoning - based on monthly scheduled payments due from not yet in repayment, in percent | 36.00% | [2] | 39.00% | [2] |
Total in percent | 100.00% | [2] | 100.00% | [2] |
FICO score greater than 670 | Private Education Loans | School Type/FICO Scores | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 558,801 | [1] | 461,412 | [1] |
Total in percent | 7.00% | 7.00% | ||
FICO score 670-709 | Private Education Loans | School Type/FICO Scores | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 1,227,860 | [1] | 1,364,286 | [1] |
Total in percent | 15.00% | 21.00% | ||
FICO score 710-749 | Private Education Loans | School Type/FICO Scores | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | 2,626,238 | [1] | 1,649,192 | [1] |
Total in percent | 32.00% | 25.00% | ||
FICO score greater than 750 | Private Education Loans | School Type/FICO Scores | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total | $3,898,477 | [1] | $3,088,452 | [1] |
Total in percent | 46.00% | 47.00% | ||
[1] | Balance represents gross Private Education Loans. | |||
[2] | Number of months in active repayment for which a scheduled payment was due. |
Allowance_for_Loan_Losses_Accr
Allowance for Loan Losses - Accrued Interest Receivable (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Receivables [Abstract] | ||
Accrued Interest Receivable On Private Education Loans | $445,710 | $333,857 |
Greater Than 90 Days Past Due | 443 | 1 |
Allowance For Uncollectible Accrued Interest | $3,517 | $4,076 |
Premises_and_Equipment_Net_Det
Premises and Equipment, Net (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $110,585 | $120,947 | |
Accumulated depreciation | -32,115 | -46,759 | |
Premises and equipment, net | 78,470 | 74,188 | |
Depreciation [Abstract] | |||
Depreciation of premises and equipment | 6,099 | 5,059 | 6,837 |
Land and Land Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 10,927 | 10,345 | |
Buildings and Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 56,772 | 52,435 | |
Furniture, Fixtures and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 10,898 | 25,633 | |
Software [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $31,988 | $32,534 |
Deposits_Summary_Details
Deposits - Summary (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Banking and Thrift [Abstract] | ||
Deposits - interest bearing | $10,539,953 | $8,946,514 |
Deposits - non-interest bearing | 602 | 55,036 |
Total deposits | $10,540,555 | $9,001,550 |
Deposits_Additional_Informatio
Deposits - Additional Information (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Type of Deposit [Line Items] | |||
Brokered deposit placement fee | $10,264 | $9,754 | $8,416 |
Placement fees paid to third parties | 15,198 | 12,114 | 16,484 |
Deposits exceeding FDIC insurance limits | 253,953 | 159,637 | |
Accrued interest on deposits | 16,082 | 13,097 | |
Noninterest-bearing deposits | $602 | $55,036 |
Deposits_Interest_Bearing_Depo
Deposits - Interest Bearing Deposits (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Interest-bearing Deposit Liabilities, Domestic, by Component [Abstract] | ||
Money market | $4,527,448 | $3,212,889 |
Savings | 703,687 | 743,742 |
NOW | 0 | 18,214 |
Certificates of deposit | 5,308,818 | 4,971,669 |
Deposits - interest bearing | $10,539,953 | $8,946,514 |
Year-End Weighted Average Stated Rate | ||
Money market | 1.15% | 0.65% |
Savings | 0.81% | 0.81% |
NOW | 0.00% | 0.12% |
Certificates of deposit | 1.00% | 1.39% |
Deposits_Certificates_of_Depos
Deposits - Certificates of Deposits Maturities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Time Deposits, Fiscal Year Maturity [Abstract] | ||
One year or less | $1,717,891 | $2,030,190 |
After one year to two years | 1,038,778 | 1,303,106 |
After two years to three years | 948,490 | 675,405 |
After three years to four years | 846,976 | 538,117 |
After four years to five years | 577,827 | 424,851 |
After five years | 178,856 | 0 |
Total | $5,308,818 | $4,971,669 |
AssetBacked_Commercial_Paper_F1
Asset-Backed Commercial Paper Funding Facility (Details) (Commercial Paper, USD $) | Dec. 31, 2014 | Dec. 19, 2014 |
Commercial Paper | ||
Line of Credit Facility [Line Items] | ||
Asset backed commercial paper student funding facility | $750,000,000 | |
Percent participation in ABCP | 5.00% | |
Participation in ABCP | 37,500,000 | |
Asset backed commercial paper remaining borrowing capacity | $712,500,000 |
Borrowed_Funds_Borrowed_Funds_
Borrowed Funds Borrowed Funds (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Debt Disclosure [Abstract] | ||
Uncommitted Fed Funds | $100,000,000 | |
Lendable value of collateral | $1,398,286,000 | $900,217,000 |
Derivative_Financial_Instrumen2
Derivative Financial Instruments - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Net positive exposure | $60,784,000 | $3,517,000 |
Cash collateral held | 900,000 | 5,190,000 |
Cash collateral pledged | 72,478,000 | 40,000 |
Estimated reclassification of AOCI to interest expense | $19,800,000 |
Derivative_Financial_Instrumen3
Derivative Financial Instruments - Impact of Derivatives on Consolidated Balance Sheet (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | $5,238 | $6,761 | ||
Gross position | -28,688 | -6,149 | ||
Interest Rate Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 5,238 | [1] | 6,761 | [1] |
Gross position | -28,688 | [1] | -6,149 | [1] |
Total net derivatives | -23,450 | 612 | ||
Trading | Interest Rate Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 226 | [1] | 426 | [1] |
Gross position | -1,370 | [1] | 0 | [1] |
Total net derivatives | -1,144 | 426 | ||
Cash Flow | Interest Rate Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 0 | [1] | 0 | [1] |
Gross position | -21,435 | [1] | 0 | [1] |
Total net derivatives | -21,435 | 0 | ||
Fair Value | Interest Rate Swaps | ||||
Derivatives, Fair Value [Line Items] | ||||
Derivative Assets | 5,012 | [1],[2] | 6,335 | [1],[2] |
Gross position | -5,883 | [1],[2] | -6,149 | [1],[2] |
Total net derivatives | ($871) | [2] | $186 | [2] |
[1] | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: | |||
[2] | 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. |
Derivative_Financial_Instrumen4
Derivative Financial Instruments - Offsetting Assets and Liabilities (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 | ||
In Thousands, unless otherwise specified | ||||
Other Assets | ||||
Gross position | $5,238 | $6,761 | ||
Impact of master netting agreement | -4,045 | -4,981 | ||
Derivative values with impact of master netting agreements (as carried on balance sheet) | 1,193 | 1,780 | ||
Cash collateral (held) pledged | -900 | [1] | -5,190 | [1] |
Net position | 293 | -3,410 | ||
Other Liabilities | ||||
Gross position | -28,688 | -6,149 | ||
Impact of master netting agreement | 4,045 | 4,981 | ||
Derivative values with impact of master netting agreements (as carried on balance sheet) | -24,643 | -1,168 | ||
Cash collateral (held) pledged | 72,478 | [1] | 40 | [1] |
Net position | $47,835 | ($1,128) | ||
[1] | Cash collateral amount calculations include outstanding accrued interest payable/receivable. |
Derivative_Financial_Instrumen5
Derivative Financial Instruments - Notional Values (Details) (Interest Rate Swaps, USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | $5,124,951 | $2,664,755 |
Trading | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 973,539 | 575,131 |
Cash Flow | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 1,106,920 | 0 |
Fair Value | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | $3,044,492 | $2,089,624 |
Derivative_Financial_Instrumen6
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statements of Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | ||||||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Interest rate swaps: | ||||||||||||||
Total | $825 | $5,401 | ($9,458) | ($764) | ($215) | $297 | ($52) | $610 | $7,892 | $29,308 | $30,527 | |||
Interest Rate Swaps | Fair Value | ||||||||||||||
Interest rate swaps: | ||||||||||||||
Hedge ineffectiveness gains (losses) recorded in earnings | 1,718 | -558 | -6,061 | |||||||||||
Realized gains recorded in interest expense | 20,958 | 28,668 | 35,988 | |||||||||||
Total | 22,676 | 28,110 | 29,927 | |||||||||||
Interest Rate Swaps | Cash Flow | ||||||||||||||
Interest rate swaps: | ||||||||||||||
Total | -9,590 | 0 | 0 | |||||||||||
Gain (Loss) on Cash Flow Hedge Ineffectiveness, Net | -520 | 0 | 0 | |||||||||||
Gain (Loss) from Components Excluded from Assessment of Cash Flow Hedge Effectiveness, Net | -9,070 | 0 | 0 | |||||||||||
Interest Rate Swaps | Trading | ||||||||||||||
Interest rate swaps: | ||||||||||||||
Interest reclassification | -2,250 | 1,285 | 87 | |||||||||||
Change in fair value of future interest payments recorded in earnings | -2,944 | -87 | 513 | |||||||||||
Total | ($5,194) | [1] | $1,198 | [1] | $600 | [1] | ||||||||
[1] | Amounts included in "gains (losses) on derivatives and hedging activities, net." |
Derivative_Financial_Instrumen7
Derivative Financial Instruments - Impact of Derivatives on the Statements of Changes in Stockholder's Equity (Details) (USD $) | 12 Months Ended | |||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amount of loss recognized in other comprehensive income | ($28,842) | $0 | $0 | |||
Amount of loss reclassified in interest expense | 0 | -63,813 | -129 | |||
Total change in other comprehensive income for unrealized losses on derivatives | -19,772 | 0 | 0 | |||
Reclassification out of Accumulated Other Comprehensive Income [Member] | Realized Gain (Loss) on Derivatives | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Amount of loss reclassified in interest expense | ($9,070) | [1] | $0 | [1] | $0 | [1] |
[1] | Amounts included in brealized gains (losses) recorded in interest expenseb in the bImpact of Derivatives on the Consolidated Statements of Incomeb table. |
Stockholders_Equity_Additional
Stockholders' Equity - Additional Information (Details) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Class of Stock [Line Items] | |||
Common stock, shares authorized | 1,125,000,000 | 0 | |
Common stock, par value | $0.20 | $0 | |
Common stock shares outstanding (in shares) | 423,000,000 | ||
Common shares unissued but encumbered (in shares) | 60,000,000 | ||
Common stock dividends | $0 | $0 | $0 |
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock shares outstanding (in shares) | 3,300,000 | 0 | |
Preferred stock dividend rate | 6.97% | ||
Preferred stock dividend rate (usd per share) | $3.48 | ||
Preferred stock liquidation preference (usd per share) | $50 | ||
Series B Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock shares outstanding (in shares) | 4,000,000 | 0 | |
Preferred stock, dividend payment terms | 3-month LIBOR plus 170 basis points per annum | ||
Preferred stock liquidation preference (usd per share) | $100 | ||
Three Month LIBOR [Member] | Series B Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock dividend rate | 1.70% |
Stockholders_Equity_Common_Sto
Stockholders' Equity - Common Stock Repurchased (Details) (USD $) | 12 Months Ended | |||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | ||||
Class of Stock [Line Items] | ||||||
Shares repurchased related to employee stock-based compensation plans | 1,365,277 | [1] | 6,365,002 | [1] | 4,547,785 | [1] |
Average purchase price per share | $8.93 | $21.76 | $15.86 | |||
Common shares issued (in shares) | 2,013,805 | [2] | 9,702,976 | [2] | 6,432,643 | [2] |
Common Stock [Member] | ||||||
Class of Stock [Line Items] | ||||||
Share price (usd per share) | $10.19 | |||||
[1] | Comprises shares withheld from stock option exercises and vesting of restricted stock for employeesb tax withholding obligations and shares tendered by employees to satisfy option exercise costs. | |||||
[2] | Common shares issued under our various compensation and benefit plans. |
Stockholders_Equity_Schedule_o
Stockholders' Equity - Schedule of Net Transfers To/From Navient Subsidiary (Details) (USD $) | 0 Months Ended | 12 Months Ended | ||
Apr. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Schedule of Transfers To and From Affiliate [Line Items] | ||||
Total capital contributions | $546,081,000 | $188,792,000 | $207,855,000 | |
Special cash contribution from Navient | 473,000,000 | 472,718,000 | 0 | 0 |
Dividend | 0 | -120,000,000 | -420,000,000 | |
Corporate push-down | 4,977,000 | 3,093,000 | 1,241,000 | |
Net change in income tax accounts | 15,659,000 | -134,219,000 | -78,842,000 | |
Net change in receivable/payable | -87,277,000 | -101,044,000 | -94,264,000 | |
Other | -31,000 | 0 | 0 | |
Total net transfers (to)/from the entity that is now a subsidiary of Navient | 479,409,000 | -163,378,000 | -384,010,000 | |
Loan origination activities | ||||
Schedule of Transfers To and From Affiliate [Line Items] | ||||
Total capital contributions | 32,452,000 | 124,722,000 | 119,094,000 | |
Loan sales | ||||
Schedule of Transfers To and From Affiliate [Line Items] | ||||
Total capital contributions | 45,000 | 35,000 | 13,502,000 | |
Corporate overhead activities | ||||
Schedule of Transfers To and From Affiliate [Line Items] | ||||
Total capital contributions | 21,216,000 | 62,031,000 | 69,830,000 | |
Other | ||||
Schedule of Transfers To and From Affiliate [Line Items] | ||||
Total capital contributions | $19,650,000 | $2,004,000 | $5,429,000 |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Numerator: | |||||||||||
Net income attributable to SLM Corporation | $19,717 | $82,926 | $44,128 | $47,448 | $60,202 | $49,390 | $76,469 | $72,885 | $194,219 | $258,945 | $217,620 |
Preferred stock dividends | 4,855 | 4,850 | 3,228 | 0 | 0 | 0 | 0 | 0 | 12,933 | 0 | 0 |
Net income attributable to SLM Corporation common stock | $14,862 | $78,076 | $40,900 | $47,448 | $60,202 | $49,390 | $76,469 | $72,885 | $181,286 | $258,945 | $217,620 |
Denominator: | |||||||||||
Weighted average shares used to compute basic EPS (in shares) | 423,970,000 | 440,108,000 | 476,118,000 | ||||||||
Effect of dilutive securities: | |||||||||||
Dilutive effect of stock options, restricted stock, restricted stock units and Employee Stock Purchase Plan (ESPP) (in shares) | 8,299,000 | 8,441,000 | 6,774,000 | ||||||||
Weighted average shares used to compute diluted EPS (in shares) | 432,269,000 | 448,549,000 | 482,892,000 | ||||||||
Basic earnings per common share attributable to SLM Corporation (in dollars per share) | $0.04 | $0.18 | $0.10 | $0.11 | $0.14 | $0.11 | $0.17 | $0.16 | $0.43 | $0.59 | $0.46 |
Diluted earnings per common share attributable to SLM Corporation (in dollars per share) | $0.03 | $0.18 | $0.09 | $0.11 | $0.14 | $0.11 | $0.17 | $0.16 | $0.42 | $0.58 | $0.45 |
Antidilutive securities excluded from computation of earnings per share | 3,000,000 | 3,000,000 | 12,000,000 |
StockBased_Compensation_Plans_2
Stock-Based Compensation Plans and Arrangements - Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
compensation_plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of active stock-based compensation plans | 1 | ||
Incremental expense on vested awards | $64,000 | ||
Incremental expense on unvested equity awards | 630,000 | ||
Stock-based compensation cost | 24,971,000 | 15,681,000 | 19,102,000 |
Weighted average period for total unrecognized compensation cost | 2 years 2 months 18 days | ||
Vesting period | 3 years | ||
Unrecognized compensation cost | 15,174,000 | ||
Offering period of employee stock purchase plan | 12 months | ||
Maximum contribution amount per employee to ESPP | 7,500 | ||
SLM Corporation 2012 Omnibus Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized to be issued under plan | 32,000,000 | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized to be issued under plan | 15,000,000 | 6,000,000 | |
Unrecognized compensation cost | 118,000 | ||
Percentage of discount available to employees under ESPP | 15.00% | ||
Grants made prior to 2012 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum term for stock options (in years) | 10 years | ||
Grants made in 2012 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Maximum term for stock options (in years) | 5 years | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average period for total unrecognized compensation cost | 6 months 0 days | ||
Unrecognized compensation cost | $188,000 | ||
Restricted Stock Units, RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Performance Stock Units, PSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Employee Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares of the Company's common stock purchased by ESPP participants | 0 | 47,176 | 34,729 |
Performance Vesting Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Performance Vesting Stock Options [Member] | Tranche 1 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage per year of performance-vested options granted to management | 33.33% | ||
Performance Vesting Stock Options [Member] | Tranche 2 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage per year of performance-vested options granted to management | 33.33% | ||
Performance Vesting Stock Options [Member] | Tranche 3 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage per year of performance-vested options granted to management | 33.33% |
StockBased_Compensation_Plans_3
Stock-Based Compensation Plans and Arrangements - Black-Scholes Model Assumptions for Calculating Stock Option and ESPP Fair Values (Detail) (Stock Options, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.76% | 0.65% | 0.60% |
Expected volatility | 26.00% | 31.00% | 44.00% |
Expected dividend rate | 2.48% | 3.35% | 3.13% |
Expected life of the option | 2 years 10 months 18 days | 2 years 9 months 18 days | 2 years 9 months 18 days |
Weighted average fair value of stock purchase rights | $3.48 | $3.11 | $4.12 |
StockBased_Compensation_Plans_4
Stock-Based Compensation Plans and Arrangements - Stock Option Activity (Detail) (USD $) | 12 Months Ended | |
In Thousands, except Share data, unless otherwise specified | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Number of Options, Outstanding, beginning balance | 3,851,120 | |
Granted, Options | 16,132 | |
Exercised, Options | -2,196,575 | [1],[2] |
Canceled, Options | -148,159 | |
Spin-off adjustment, Options | 14,632,601 | [3] |
Number of Options, Outstanding, ending balance | 16,155,119 | [4],[5] |
Number of Options, Exercisable, ending balance | 12,985,828 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Weighted Average Exercise Price per Share, Outstanding, beginning balance | $14.60 | |
Granted, Weighted Average Exercise Price per Share | $24.24 | |
Exercised, Weighted Average Exercise Price per Share | $6.19 | [1],[2] |
Canceled, Weighted Average Exercise Price per Share | $21.86 | |
Spin-Off Adjustment, Weighted Average Exercise Price | $8.22 | [3] |
Weighted Average Exercise Price per Share, Outstanding, ending balance | $9.91 | [4],[5] |
Weighted Average Exercise Price per Share, Exercisable, ending balance | $8.32 | |
Weighted Average Remaining Contractual Term, Outstanding, ending balance | 3 years 1 month 27 days | [4],[5] |
Weighted Average Remaining Contractual Term, Exercisable, ending balance | 3 years 2 months 22 days | |
Aggregate Intrinsic Value, Outstanding, ending balance | $62,144 | [4],[5],[6] |
Aggregate Intrinsic Value, Exercisable, ending balance | $50,154 | [6] |
[1] | Fifty-three thousand was received from option exercises for the year ended DecemberB 31, 2014. The actual tax benefit realized for the tax deductions from option exercises totaled $4,853 for the year ended DecemberB 31, 2014. | |
[2] | The total intrinsic value of options exercised was $11,430, $8,467 and $5,410 for the years ended DecemberB 31, 2014, 2013 and 2012, respectively. | |
[3] | Represents the adjustment to preserve the intrinsic value of the outstanding equity awards held by SLM and Navient employees. | |
[4] | For net-settled options, gross number is reflected. | |
[5] | Represents the adjustment to preserve the intrinsic value of the outstanding equity awards held by SLM and Navient employees. (5)B As of DecemberB 31, 2014, there was $362 of unrecognized compensatio | |
[6] | The aggregate intrinsic value represents the total intrinsic value (the aggregate difference between our closing stock price on DecemberB 31, 2014 and the exercise price of in-the-money options) that would have been received by the option holders if all in-the-money options had been exercised on DecemberB 31, 2014. |
StockBased_Compensation_Plans_5
Stock-Based Compensation Plans and Arrangements - Stock Option Activity Additional Information (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total intrinsic value of options exercised | $11,430,000 | $8,467,000 | $5,410,000 |
Cash received from option exercises | 53,000 | ||
Tax benefit realized from exercise of stock options | 4,853,000 | ||
Unrecognized compensation cost | 15,174,000 | ||
Weighted average period for total unrecognized compensation cost | 2 years 2 months 18 days | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $362,000 | ||
Weighted average period for total unrecognized compensation cost | 1 year 0 months |
StockBased_Compensation_Plans_6
Stock-Based Compensation Plans and Arrangements - Restricted Stock and Performance Stock Unit Activity (Detail) (USD $) | 12 Months Ended | |
Dec. 31, 2014 | ||
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of Shares, Non-vested, beginning balance | 33,333 | |
Granted, Shares | 49,123 | |
Vested, Shares | -33,333 | [1] |
Canceled, Shares | -684 | |
Spin-Off adjustment, shares | 6,529 | [2] |
Number of Shares, Non-vested, ending balance | 54,968 | [3] |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted Average Grant Date Fair Value, Non-vested, beginning balance | $12.81 | |
Granted, Weighted Average Grant Date Fair Value | $9.46 | |
Vested, Weighted Average Grant Date Fair Value | $12.81 | [1] |
Canceled, Weighted Average Grant Date Fair Value | $21.91 | |
Spin-Off adjustment, Weighted Average Grant Date Fair Value | $7.89 | [2] |
Weighted Average Grant Date Fair Value, Non-vested, ending balance | $9.12 | [3] |
Restricted Stock Units and Performance Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Number of Shares, Non-vested, beginning balance | 1,421,007 | |
Granted, Shares | 1,904,169 | |
Vested, Shares | -750,707 | [4] |
Canceled, Shares | -367,684 | |
Spin-Off adjustment, shares | 4,072,958 | [5] |
Number of Shares, Non-vested, ending balance | 6,279,743 | [6] |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | ||
Weighted Average Grant Date Fair Value, Non-vested, beginning balance | $16.82 | |
Granted, Weighted Average Grant Date Fair Value | $18.30 | |
Vested, Weighted Average Grant Date Fair Value | $16.83 | [4] |
Canceled, Weighted Average Grant Date Fair Value | $17.70 | |
Spin-Off adjustment, Weighted Average Grant Date Fair Value | $7.16 | [5] |
Weighted Average Grant Date Fair Value, Non-vested, ending balance | $10.95 | [6] |
[1] | The total fair value of shares that vested during the years ended DecemberB 31, 2014, 2013 and 2012 was $427, $592 and $1,189, respectively. | |
[2] | Represents the adjustment to preserve the intrinsic value of the outstanding equity awards held by SLM and Navient employees. | |
[3] | As of DecemberB 31, 2014, there was $188 of unrecognized compensation cost related to restricted stock net of estimated forfeitures, which is expected to be recognized over a weighted average period of 0.5 years. | |
[4] | The total fair value of RSUs/PSUs that vested and converted to common stock during the years ended DecemberB 31, 2014, 2013 and 2012 was $12,636, $6,415 and $2,656, respectively. | |
[5] | This represents the adjustment to preserve the intrinsic value of the outstanding equity awards held by SLM and Navient employees. | |
[6] | As of DecemberB 31, 2014, there was $14,506 of unrecognized compensation cost related to RSUs net of estimated forfeitures, which is expected to be recognized over a weighted average period of 2.3 years. |
StockBased_Compensation_Plans_7
Stock-Based Compensation Plans and Arrangements - Restricted Stock and Performance Stock Unit Activity Additional Information (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $15,174 | ||
Weighted average period for total unrecognized compensation cost | 2 years 2 months 18 days | ||
Restricted Stock | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Total fair value of shares vested | 427 | 592 | 1,189 |
Unrecognized compensation cost | 188 | ||
Weighted average period for total unrecognized compensation cost | 6 months 0 days | ||
Restricted Stock Units and Performance Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | 14,506 | ||
Total fair value of restricted stock units that vested and converted to common stock | $12,636 | $6,415 | $2,656 |
Weighted average period for total unrecognized compensation cost | 2 years 3 months 13 days |
StockBased_Compensation_Plans_8
Stock-Based Compensation Plans and Arrangements Stock-Based Compensation Plans and Arrangements - Employee Stock Purchase Plan (Details) (Employee Stock Purchase Plan, USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.13% | 0.15% | 0.13% |
Expected volatility | 25.00% | 29.00% | 29.00% |
Expected dividend rate | 0.00% | 3.51% | 3.27% |
Expected life of the option | 1 year | 1 year | 1 year |
Weighted average fair value of stock purchase rights | $1.66 | $2.95 | $3.01 |
Fair_Value_Measurements_Valuat
Fair Value Measurements - Valuation of Financial Instruments that are Marked-to-Market on Recurring Basis (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ||
Mortgage-backed securities | $168,934 | $102,105 |
Fair Value Measurements Recurring | ||
Assets | ||
Mortgage-backed securities | 168,934 | 102,105 |
Derivative instruments | 5,238 | 6,761 |
Total | 174,172 | 108,866 |
Liabilities | ||
Derivative instruments | -28,688 | -6,149 |
Fair Value Measurements Recurring | Level 1 | ||
Assets | ||
Mortgage-backed securities | 0 | 0 |
Derivative instruments | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Derivative instruments | 0 | 0 |
Fair Value Measurements Recurring | Level 2 | ||
Assets | ||
Mortgage-backed securities | 168,934 | 102,105 |
Derivative instruments | 5,238 | 6,761 |
Total | 174,172 | 108,866 |
Liabilities | ||
Derivative instruments | -28,688 | -6,149 |
Fair Value Measurements Recurring | Level 3 | ||
Assets | ||
Mortgage-backed securities | 0 | 0 |
Derivative instruments | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Derivative instruments | $0 | $0 |
Fair_Value_Measurements_Change
Fair Value Measurements - Change in Balance Sheet Carrying Value Associated with Level 3 Financial Instruments Carried at Fair Value on Recurring Basis (Detail) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Fair Value Disclosures [Abstract] | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings | $0 | ($21,490) | $23,149 |
Change in balance sheet carrying value associated with Level 3 financial instruments carried at fair value on a recurring basis [Roll Forward] | |||
Balance, beginning of period | 0 | 532,155 | 498,657 |
Total gains/(losses) (realized and unrealized): | |||
Included in other comprehensive income | 0 | 63,813 | 0 |
Included in earnings - accretion of discount | 0 | 7,596 | 10,349 |
Proceeds from sale | 0 | -582,074 | 0 |
Transfers in and/or out of level 3 | 0 | 0 | 0 |
Balance, end of period | 0 | 0 | 532,155 |
Change in unrealized gains/(losses) relating to instruments still held at the reporting date | $0 | $0 | $23,149 |
Fair_value_Measurements_Fair_V
Fair value Measurements - Fair Values of Financial Assets and Liabilities, Including Derivative Financial Instruments (Detail) (USD $) | Dec. 31, 2014 | Apr. 30, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | |||
Earning assets | |||
Tax indemnification receivable | $240,311 | $291,000 | $0 |
Fair Value | |||
Earning assets | |||
Loans held for investment, net | 10,228,399 | 8,541,919 | |
Cash and cash equivalents | 2,359,780 | 2,182,865 | |
Available for sale investments | 168,934 | 102,105 | |
Accrued interest receivable | 469,697 | 356,283 | |
Tax indemnification receivable | 240,311 | 0 | |
Derivative instruments | 5,238 | 6,761 | |
Total | 13,472,359 | 11,189,933 | |
Interest-bearing liabilities | |||
Accrued interest payable | 16,082 | 13,097 | |
Derivative instruments | 28,688 | 6,149 | |
Total interest-bearing liabilities | 10,590,151 | 9,033,241 | |
Fair Value | Money market, savings and NOW accounts | |||
Interest-bearing liabilities | |||
Deposits | 5,231,736 | 4,029,881 | |
Fair Value | Certificates of Deposit | |||
Interest-bearing liabilities | |||
Deposits | 5,313,645 | 4,984,114 | |
Carrying Value | |||
Earning assets | |||
Loans held for investment, net | 9,509,786 | 7,931,377 | |
Cash and cash equivalents | 2,359,780 | 2,182,865 | |
Available for sale investments | 168,934 | 102,105 | |
Accrued interest receivable | 469,697 | 356,283 | |
Tax indemnification receivable | 240,311 | 0 | |
Derivative instruments | 5,238 | 6,761 | |
Total | 12,753,746 | 10,579,391 | |
Interest-bearing liabilities | |||
Accrued interest payable | 16,082 | 13,097 | |
Derivative instruments | 28,688 | 6,149 | |
Total interest-bearing liabilities | 10,585,324 | 9,020,796 | |
Carrying Value | Money market, savings and NOW accounts | |||
Interest-bearing liabilities | |||
Deposits | 5,231,736 | 4,029,881 | |
Carrying Value | Certificates of Deposit | |||
Interest-bearing liabilities | |||
Deposits | 5,308,818 | 4,971,669 | |
Difference | |||
Earning assets | |||
Loans held for investment, net | 718,613 | 610,542 | |
Cash and cash equivalents | 0 | 0 | |
Available for sale investments | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Tax indemnification receivable | 0 | 0 | |
Derivative instruments | 0 | 0 | |
Total | 718,613 | 610,542 | |
Interest-bearing liabilities | |||
Accrued interest payable | 0 | 0 | |
Derivative instruments | 0 | 0 | |
Total interest-bearing liabilities | -4,827 | -12,445 | |
Excess of net asset fair value over carrying value | 713,786 | 598,097 | |
Difference | Money market, savings and NOW accounts | |||
Interest-bearing liabilities | |||
Deposits | 0 | 0 | |
Difference | Certificates of Deposit | |||
Interest-bearing liabilities | |||
Deposits | ($4,827) | ($12,445) |
Arrangements_with_Navient_Corp1
Arrangements with Navient Corporation Arrangements with Navient Corporation (Details) (USD $) | 12 Months Ended | ||||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Sep. 29, 2014 | Apr. 30, 2014 | |
Related Party Transaction [Line Items] | |||||
Agreements with Navient, period of term (or less) | 2 years | ||||
Non-compete period | 5 years | ||||
Income taxes payable, net | $191,499,000 | $162,205,000 | |||
Deferred taxes | 252,000,000 | 283,000,000 | |||
Remaining amount of indemnification | 224,000,000 | ||||
Deferred tax asset discount | 16,000,000 | 27,000,000 | |||
FDIC civil monetary penalties | 3,300,000 | 3,300,000 | |||
Contingency refund | 30,000,000 | 30,000,000 | |||
Minimum days past due that company may required spin-off company to purchase loans | 90 days | ||||
Period of hardship forbearance | 6 months | ||||
Private education loans | 8,246,647,000 | 6,506,642,000 | |||
Interest income from related party | 5,683,000 | 67,018,000 | 77,685,000 | ||
Gains on loans to related party | 35,848,000 | 196,593,000 | 235,202,000 | ||
Write-down to fair value for loans sold to related party | 53,484,000 | 68,410,000 | 28,694,000 | ||
Participated loans | |||||
Related Party Transaction [Line Items] | |||||
Loans sold to related party | 804,733,000 | 2,415,846,000 | 2,640,245,000 | ||
Split Loans | |||||
Related Party Transaction [Line Items] | |||||
Private education loans | $117,000,000 |
Regulatory_Capital_Regulatory_
Regulatory Capital Regulatory Capital - Well Capitalized Regulatory Requirements (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Actual Amount | ||
Tier I Capital (to Average Assets) | $1,413,988 | $1,221,416 |
Tier I Capital (to Risk Weighted Assets) | 1,413,988 | 1,221,416 |
Total Capital (to Risk Weighted Assets) | 1,497,830 | 1,289,497 |
Actual Ratio | ||
Tier I Capital (to Average Assets) | 11.50% | 11.70% |
Tier I Capital (to Risk Weighted Assets) | 15.00% | 16.40% |
Total Capital (to Risk Weighted Assets) | 15.90% | 17.30% |
Well Capitalized Regulatory Requirements, Amount | ||
Tier I Capital (to Average Assets) | 614,709 | 521,973 |
Tier I Capital (to Risk Weighted Assets) | 565,148 | 446,860 |
Total Capital (to Risk Weighted Assets) | $941,913 | $745,374 |
Well Capitalized Regulatory Requirements, Ratio | ||
Tier I Capital (to Average Assets) | 5.00% | 5.00% |
Tier I Capital (to Risk Weighted Assets) | 6.00% | 6.00% |
Total Capital (to Risk Weighted Assets) | 10.00% | 10.00% |
Regulatory_Capital_Additional_
Regulatory Capital - Additional Information (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||||||
Dividends | $0 | $120,000,000 | $420,000,000 | ||||||||
Preferred stock dividends | 4,855,000 | 4,850,000 | 3,228,000 | 0 | 0 | 0 | 0 | 0 | 12,933,000 | 0 | 0 |
Sallie Mae Bank | |||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||||||
Dividends | $0 | $120,000,000 | $420,000,000 |
Defined_Contribution_Plans_Det
Defined Contribution Plans (Details) (Sallie Mae 401(k) Savings Plan [Member], USD $) | 1 Months Ended | 12 Months Ended | ||
In Thousands, unless otherwise specified | Jan. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Defined Contribution Plan Disclosure [Line Items] | ||||
Requisite service period | 6 months | 1 month | 1 year | |
Type 1 of defined benefit contribution | 3.00% | |||
Type 2 of defined contribution plan | 2.00% | |||
Percent of core employer contribution | 1.00% | |||
Employer contribution amount | $3,084 | $2,779 | $2,317 | |
Maximum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer matching contribution percentage | 100.00% | |||
Minimum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer matching contribution percentage | 50.00% |
Commitments_Contingencies_and_1
Commitments, Contingencies and Guarantees - Additional Information (Detail) (USD $) | Dec. 31, 2014 | Sep. 29, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||
FDIC civil monetary penalties | $3,300,000 | $3,300,000 |
Contingency refund | $30,000,000 | $30,000,000 |
Income_Taxes_Reconciliations_o
Income Taxes - Reconciliations of Statutory U.S. Federal Income Tax Rates to Our Effective Tax Rate for Continuing Operations (Detail) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory rate | 35.00% | 35.00% | 35.00% |
State tax, net of federal benefit | 2.90% | 2.60% | 0.00% |
Effect of state rate change on net deferred tax liabilities, net of federal benefit | 4.40% | 0.00% | -0.10% |
State, release valuation allowance on net operating losses | -4.00% | 0.00% | 0.00% |
Unrecognized tax benefits, U.S. federal and state, net of federal benefit | 4.80% | 0.00% | 0.00% |
Other, net | -1.20% | 0.60% | 2.00% |
Effective tax rate | 41.90% | 38.20% | 36.90% |
Income_Taxes_Additional_Inform
Income Taxes - Additional Information (Detail) (USD $) | 12 Months Ended | |||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Operating Loss Carryforwards, Valuation Allowance | $69,900,000 | |||
Statutory U.S. federal rate | 35.00% | 35.00% | 35.00% | |
Unrecognized tax benefits | 59,404,900 | 7,343,500 | 3,951,100 | 2,467,300 |
Unrecognized tax benefits recognition impact on effective tax rate | 33,100,000 | |||
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | 5,900,000 | 400,000 | ||
Unrecognized Tax Benefits, Interest on Income Taxes Expense | 2,300,000 | 100,000 | 0 | |
State and Local Jurisdiction | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Operating loss carryforwards | 22,000,000 | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $4,500,000 | |||
Minimum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Combination of subsidiaries, tax years | 3 years | |||
Maximum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Combination of subsidiaries, tax years | 4 years |
Income_Taxes_Components_of_Pro
Income Taxes - Components of Provision for Income Tax Expense (Benefit) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Current provision: | |||||||||||
Federal | $137,573 | $130,854 | $126,484 | ||||||||
State | 43,282 | 13,513 | 10,674 | ||||||||
Total current provision | 180,855 | 144,367 | 137,158 | ||||||||
Deferred (benefit)/provision: | |||||||||||
Federal | -40,370 | 13,240 | -9,747 | ||||||||
State | -518 | 1,327 | -1,268 | ||||||||
Total deferred (benefit)/provision | -40,888 | 14,567 | -11,015 | ||||||||
Provision for income tax expense | $24,465 | $54,903 | $31,941 | $28,658 | $36,923 | $30,272 | $46,973 | $44,765 | $139,967 | $158,934 | $126,143 |
Income_Taxes_Schedule_of_Defer
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, unless otherwise specified | ||
Deferred tax assets: | ||
Loan reserves | $33,570 | $26,853 |
Stock-based compensation plans | 16,342 | 28,211 |
Deferred revenue | 418 | 607 |
Operating loss and credit carryovers | 14,324 | 1,273 |
Unrealized losses | 7,185 | 1,849 |
Accrued expenses not currently deductible | 10,606 | 2,853 |
Unrecorded tax benefits | 19,798 | 2,331 |
Other | 8,918 | 334 |
Total deferred tax assets | 111,161 | 64,311 |
Deferred tax liabilities: | ||
Gains on repurchased debt | 251,671 | 0 |
Fixed assets | 5,849 | 3,181 |
Acquired intangible assets | 6,151 | 616 |
Student loan premiums and discounts, net | 3,050 | -87 |
Other | 2,656 | 3 |
Total deferred tax liabilities | 269,377 | 3,713 |
Net deferred tax (liabilities) assets | ($158,216) | $60,598 |
Income_Taxes_Summary_of_Change
Income Taxes - Summary of Changes in Unrecognized Tax Benefits (Detail) (USD $) | 12 Months Ended | ||
Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $7,343,500 | $3,951,100 | $2,467,300 |
Increases resulting from tax positions taken during a prior period | 45,184,200 | 573,900 | 503,100 |
Increases resulting from tax positions taken during the current period | 7,712,500 | 2,818,500 | 980,700 |
Decreases related to settlements with taxing authorities | -235,700 | 0 | 0 |
Reductions related to the lapse of statute of limitations | -599,600 | 0 | 0 |
Unrecognized tax benefits at end of year | $59,404,900 | $7,343,500 | $3,951,100 |
Concentrations_of_Risk_Details
Concentrations of Risk (Details) (USD $) | 12 Months Ended |
In Thousands, unless otherwise specified | Dec. 31, 2014 |
Risks and Uncertainties [Abstract] | |
Interest income, FFELP loans portfolio | $43,831 |
Parent_Only_Statements_Balance
Parent Only Statements - Balance Sheets (Details) (USD $) | Dec. 31, 2014 | Apr. 30, 2014 | Dec. 31, 2013 | Dec. 31, 2012 | Dec. 31, 2011 |
In Thousands, unless otherwise specified | |||||
Assets | |||||
Cash and cash equivalents | $2,359,780 | $2,182,865 | $1,599,082 | $1,465,894 | |
Tax indemnification receivable | 240,311 | 291,000 | 0 | ||
Other assets | 64,757 | 48,976 | |||
Total assets | 12,972,243 | 10,706,664 | |||
Liabilities | |||||
Income taxes payable, net | 191,499 | 162,205 | |||
Other liabilities | 117,227 | 69,248 | |||
Total liabilities | 11,142,285 | 9,540,521 | |||
Preferred stock, par value $0.20 per share, 20 million shares authorized | |||||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 425 million and 0 shares, issued, respectively | 84,961 | 0 | |||
Additional paid-in capital | 1,090,511 | 0 | |||
Accumulated other comprehensive loss (net of tax benefit $(7,186) and $(1,849), respectively) | -11,393 | -3,024 | |||
Retained earnings | 113,066 | 0 | |||
Total SLM Corporation's stockholders' equity before treasury stock | 1,842,145 | 1,161,471 | |||
Less: Common stock held in treasury at cost: 1 million and 0 shares, respectively | -12,187 | 0 | |||
Total SLM Corporation stockholders' equity | 1,829,958 | 1,161,471 | |||
Total liabilities and equity | 12,972,243 | 10,706,664 | |||
Parent Company | |||||
Assets | |||||
Cash and cash equivalents | 434,245 | 0 | 0 | 0 | |
Total investments in subsidiaries (primarily Sallie Mae Bank) | 1,389,995 | 1,161,471 | |||
Tax indemnification receivable | 240,311 | 0 | |||
Due from subsidiaries, net | 32,408 | 0 | |||
Other assets | 1,943 | 0 | |||
Total assets | 2,098,902 | 1,161,471 | |||
Liabilities | |||||
Income taxes payable, net | 245,782 | 0 | |||
Payable due to Navient | 8,764 | 0 | |||
Other liabilities | 14,398 | 0 | |||
Total liabilities | 268,944 | 0 | |||
Preferred stock, par value $0.20 per share, 20 million shares authorized | |||||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 425 million and 0 shares, issued, respectively | 84,961 | 0 | |||
Additional paid-in capital | 1,090,511 | 0 | |||
Accumulated other comprehensive loss (net of tax benefit $(7,186) and $(1,849), respectively) | -11,393 | -3,024 | |||
Retained earnings | 113,066 | 0 | |||
Total SLM Corporation's stockholders' equity before treasury stock | 1,842,145 | 1,161,471 | |||
Less: Common stock held in treasury at cost: 1 million and 0 shares, respectively | -12,187 | 0 | |||
Total SLM Corporation stockholders' equity | 1,829,958 | 1,161,471 | |||
Total liabilities and equity | 2,098,902 | 1,161,471 | |||
Parent Company | Series A Preferred Stock | |||||
Preferred stock, par value $0.20 per share, 20 million shares authorized | |||||
Preferred stock issued | 165,000 | 0 | |||
Parent Company | Series B Preferred Stock | |||||
Preferred stock, par value $0.20 per share, 20 million shares authorized | |||||
Preferred stock issued | 400,000 | 0 | |||
Navient's Subsidiary Investment | |||||
Preferred stock, par value $0.20 per share, 20 million shares authorized | |||||
Additional paid-in capital | 0 | 1,164,495 | |||
Navient's Subsidiary Investment | Parent Company | |||||
Preferred stock, par value $0.20 per share, 20 million shares authorized | |||||
Additional paid-in capital | $0 | $1,164,495 |
Parent_Only_Statements_Balance1
Parent Only Statements - Balance Sheets (Additional Information) (Details) (USD $) | Dec. 31, 2014 | Dec. 31, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Condensed Financial Statements, Captions [Line Items] | ||
Preferred stock, stated value | $0.20 | $0 |
Preferred stock, shares authorized | 20,000,000 | 0 |
Common stock, par value | $0.20 | $0 |
Common stock, shares authorized | 1,125,000,000 | 0 |
Common stock, shares issued | 425,000,000 | 0 |
Accumulated other comprehensive loss (net of tax benefit $(7,186) and $(1,849), respectively) | ($7,186) | ($1,849) |
Common stock held in treasury | 1,000,000 | 0 |
Series A Preferred Stock | ||
Condensed Financial Statements, Captions [Line Items] | ||
Preferred stock, stated value | $50 | $0 |
Series B Preferred Stock | ||
Condensed Financial Statements, Captions [Line Items] | ||
Preferred stock, stated value | $100 | $0 |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Preferred stock, stated value | $0.20 | $0 |
Preferred stock, shares authorized | 20,000,000 | 0 |
Common stock, par value | $0.20 | $0 |
Common stock, shares authorized | 1,125,000,000 | 0 |
Common stock, shares issued | 425,000,000 | 0 |
Accumulated other comprehensive loss (net of tax benefit $(7,186) and $(1,849), respectively) | ($7,186) | ($1,849) |
Common stock held in treasury | 1,000,000 | 0 |
Parent Company | Series A Preferred Stock | ||
Condensed Financial Statements, Captions [Line Items] | ||
Preferred stock, stated value | $50 | $0 |
Preferred stock, shares issued | 3,300,000 | 0 |
Parent Company | Series B Preferred Stock | ||
Condensed Financial Statements, Captions [Line Items] | ||
Preferred stock, stated value | $100 | $0 |
Preferred stock, shares issued | 4,000,000 | 0 |
Parent_Only_Statements_Stateme
Parent Only Statements - Statements of Income (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest income | $674,294 | $551,200 | $491,281 | ||||||||
Interest expense | 95,815 | 89,085 | 82,912 | ||||||||
Net interest income | 150,676 | 144,026 | 144,539 | 139,238 | 122,213 | 116,783 | 107,417 | 115,702 | 578,479 | 462,115 | 408,369 |
Other | 11,095 | 5,461 | 15,229 | 8,136 | 75,155 | 9,416 | 8,665 | 7,799 | 39,921 | 37,222 | 36,641 |
Operating expenses | 77,362 | 72,721 | 61,127 | 63,671 | 74,215 | 68,717 | 66,771 | 60,771 | 274,881 | 270,474 | 253,770 |
Income tax expense | 24,465 | 54,903 | 31,941 | 28,658 | 36,923 | 30,272 | 46,973 | 44,765 | 139,967 | 158,934 | 126,143 |
Net income | 19,717 | 82,926 | 44,128 | 47,014 | 59,870 | 49,057 | 76,122 | 72,545 | 193,785 | 257,593 | 215,726 |
Preferred stock dividends | 4,855 | 4,850 | 3,228 | 0 | 0 | 0 | 0 | 0 | 12,933 | 0 | 0 |
Net income attributable to SLM Corporation common stock | 14,862 | 78,076 | 40,900 | 47,448 | 60,202 | 49,390 | 76,469 | 72,885 | 181,286 | 258,945 | 217,620 |
Parent Company | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest income | 4,980 | 0 | 0 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Net interest income | 4,980 | 0 | 0 | ||||||||
Other | 1,097 | 0 | 0 | ||||||||
Operating expenses | 36,967 | 3,556 | 4,871 | ||||||||
Loss before income tax expense and equity in net income from subsidiaries | -30,890 | -3,556 | -4,871 | ||||||||
Income tax expense | -13,196 | 133,121 | 102,842 | ||||||||
Equity in net income from subsidiaries (primarily Sallie Mae Bank) | 211,479 | 394,270 | 323,439 | ||||||||
Net income | 193,785 | 257,593 | 215,726 | ||||||||
Preferred stock dividends | 12,933 | 0 | 0 | ||||||||
Net income attributable to SLM Corporation common stock | $180,852 | $257,593 | $215,726 |
Parent_Only_Statements_Stateme1
Parent Only Statements - Statements of Cash Flows (Details) (USD $) | 12 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Cash flows from operating activities: | |||
Net income | $194,219 | $258,945 | $217,620 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Decrease in tax indemnification receivable | 38,820 | 0 | 0 |
Increase in other assets | -24,959 | -2,357 | -7,008 |
(Decrease) increase in income tax payable | -221,222 | 56,784 | 88,803 |
Increase in payable due to entity that is a subsidiary of Navient | 8,764 | 147,379 | 96,591 |
Increase in other liabilities | -2,652 | 39,096 | -614 |
Total adjustments | -630,558 | -187,573 | -116,176 |
Total net cash (used in) provided by operating activities | -436,773 | 70,020 | 99,550 |
Cash flows from investing activities: | |||
Net cash provided by (used in) investing activities | -1,388,371 | -731,116 | -1,003,374 |
Cash flows from financing activities: | |||
Special cash contribution from Navient | 472,718 | 0 | 0 |
Excess tax benefit from the exercise of stock-based awards | 3,271 | 6,258 | 891 |
Preferred stock dividends paid | -12,933 | 0 | 0 |
Net cash provided by financing activities | 2,002,059 | 1,244,879 | 1,037,012 |
Net increase in cash and cash equivalents | 176,915 | 583,783 | 133,188 |
Cash and cash equivalents | 2,359,780 | 2,182,865 | 1,599,082 |
Cash and cash equivalents at end of year | 2,359,780 | 2,182,865 | 1,599,082 |
Parent Company | |||
Cash flows from operating activities: | |||
Net income | 193,785 | 257,593 | 215,726 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Undistributed earnings of subsidiaries | -211,479 | -394,270 | -323,439 |
(Increase) decrease in investment in subsidiaries, net | 278,365 | 136,677 | 107,713 |
Decrease in tax indemnification receivable | 38,820 | 0 | 0 |
Increase in due from subsidiaries, net | -32,408 | 0 | 0 |
Increase in other assets | -5,447 | 0 | 0 |
(Decrease) increase in income tax payable | -312,770 | 0 | 0 |
Increase in payable due to entity that is a subsidiary of Navient | 8,764 | 0 | 0 |
Increase in other liabilities | 14,398 | 0 | 0 |
Total adjustments | -221,757 | -257,593 | -215,726 |
Total net cash (used in) provided by operating activities | -27,972 | 0 | 0 |
Cash flows from investing activities: | |||
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Special cash contribution from Navient | 472,718 | 0 | 0 |
Excess tax benefit from the exercise of stock-based awards | 2,432 | 0 | 0 |
Preferred stock dividends paid | -12,933 | 0 | 0 |
Net cash provided by financing activities | 462,217 | 0 | 0 |
Net increase in cash and cash equivalents | 434,245 | 0 | 0 |
Cash and cash equivalents | 434,245 | 0 | 0 |
Cash and cash equivalents at end of year | $434,245 | $0 | $0 |
Selected_Quarterly_Financial_I2
Selected Quarterly Financial Information (unaudited) (Details) (USD $) | 3 Months Ended | 12 Months Ended | |||||||||
In Thousands, except Per Share data, unless otherwise specified | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2014 | Dec. 31, 2013 | Dec. 31, 2012 |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income, net | $150,676 | $144,026 | $144,539 | $139,238 | $122,213 | $116,783 | $107,417 | $115,702 | $578,479 | $462,115 | $408,369 |
Less: provisions for loan losses | 30,458 | 14,898 | 1,014 | 39,159 | 29,258 | 20,404 | -1,015 | 20,692 | 85,529 | 69,339 | 66,116 |
Net interest income after provisions for loan losses | 120,218 | 129,128 | 143,525 | 100,079 | 92,955 | 96,379 | 108,432 | 95,010 | 492,950 | 392,776 | 342,253 |
Gains on sales of loans, net | 396 | 85,147 | 1,928 | 33,888 | 4,496 | 43,434 | 73,441 | 75,222 | |||
(Losses) gains on derivative and hedging activities, net | 825 | 5,401 | -9,458 | -764 | -215 | 297 | -52 | 610 | 7,892 | 29,308 | 30,527 |
Other income | 11,095 | 5,461 | 15,229 | 8,136 | 75,155 | 9,416 | 8,665 | 7,799 | 39,921 | 37,222 | 36,641 |
Operating expenses | 77,362 | 72,721 | 61,127 | 63,671 | 74,215 | 68,717 | 66,771 | 60,771 | 274,881 | 270,474 | 253,770 |
Acquired intangible asset impairment and amortization expense | 507 | 508 | 508 | 1,767 | 764 | 1,480 | 536 | 537 | 3,290 | 3,317 | 13,125 |
Restructuring and other reorganization expenses | 10,483 | 14,079 | 13,520 | 229 | 619 | 0 | 84 | 23 | 38,311 | 726 | 0 |
Income tax expense | 24,465 | 54,903 | 31,941 | 28,658 | 36,923 | 30,272 | 46,973 | 44,765 | 139,967 | 158,934 | 126,143 |
Net income | 19,717 | 82,926 | 44,128 | 47,014 | 59,870 | 49,057 | 76,122 | 72,545 | 193,785 | 257,593 | 215,726 |
Less: Net loss attributable to noncontrolling interest | 0 | 0 | 0 | -434 | -332 | -333 | -347 | -340 | -434 | -1,352 | -1,894 |
Net income attributable to SLM Corporation | 19,717 | 82,926 | 44,128 | 47,448 | 60,202 | 49,390 | 76,469 | 72,885 | 194,219 | 258,945 | 217,620 |
Preferred stock dividends | 4,855 | 4,850 | 3,228 | 0 | 0 | 0 | 0 | 0 | 12,933 | 0 | 0 |
Net income attributable to SLM Corporation common stock | $14,862 | $78,076 | $40,900 | $47,448 | $60,202 | $49,390 | $76,469 | $72,885 | $181,286 | $258,945 | $217,620 |
Basic earnings per common share attributable to SLM Corporation (in dollars per share) | $0.04 | $0.18 | $0.10 | $0.11 | $0.14 | $0.11 | $0.17 | $0.16 | $0.43 | $0.59 | $0.46 |
Diluted earnings per common share attributable to SLM Corporation (in dollars per share) | $0.03 | $0.18 | $0.09 | $0.11 | $0.14 | $0.11 | $0.17 | $0.16 | $0.42 | $0.58 | $0.45 |