Document and Entity Information
Document and Entity Information | 9 Months Ended |
Sep. 30, 2015shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Sep. 30, 2015 |
Document Fiscal Year Focus | 2,015 |
Document Fiscal Period Focus | Q3 |
Trading Symbol | SLM |
Entity Registrant Name | SLM CORPORATION |
Entity Central Index Key | 1,032,033 |
Current Fiscal Year End Date | --12-31 |
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 (in shares) | 426,108,435 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Cash and cash equivalents | $ 1,281,797 | $ 2,359,780 |
Available-for-sale investments at fair value (cost of $190,249 and $167,740, respectively) | 190,944 | 168,934 |
Loans held for investment (net of allowance for losses of $104,203 and $83,842, respectively) | 11,909,148 | 9,509,786 |
Restricted cash and investments | 25,605 | 4,804 |
Other interest-earning assets | 47,604 | 72,479 |
Accrued interest receivable | 634,423 | 469,697 |
Premises and equipment, net | 80,224 | 78,470 |
Acquired intangible assets, net | 2,115 | 3,225 |
Tax indemnification receivable | 200,704 | 240,311 |
Other assets | 77,980 | 64,757 |
Total assets | 14,450,544 | 12,972,243 |
Liabilities | ||
Deposits | 10,610,879 | 10,540,555 |
Short-term borrowings | 710,005 | 0 |
Long-term borrowings | 593,687 | 0 |
Income taxes payable, net | 117,531 | 191,499 |
Upromise related liabilities | 283,688 | 293,004 |
Other liabilities | 137,420 | 117,227 |
Total liabilities | $ 12,453,210 | $ 11,142,285 |
Commitments and contingencies | ||
Equity | ||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 430 million and 425 million shares issued, respectively | $ 86,075 | $ 84,961 |
Additional paid-in capital | 1,128,494 | 1,090,511 |
Accumulated other comprehensive loss (net of tax benefit of $14,847 and $7,186, respectively) | (23,515) | (11,393) |
Retained earnings | 281,761 | 113,066 |
Total SLM Corporation stockholders' equity before treasury stock | 2,037,815 | 1,842,145 |
Less: Common stock held in treasury at cost: 4 million and 1 million shares, respectively | (40,481) | (12,187) |
Total equity | 1,997,334 | 1,829,958 |
Total liabilities and equity | 14,450,544 | 12,972,243 |
Series A Preferred Stock | ||
Equity | ||
Preferred stock value outstanding | 165,000 | 165,000 |
Series B Preferred Stock | ||
Equity | ||
Preferred stock value outstanding | $ 400,000 | $ 400,000 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Amortized cost | $ 190,249 | $ 167,740 |
Allowance for loan losses | $ 104,203 | $ 83,842 |
Preferred stock, stated value (in dollars per share) | $ 0.20 | $ 0.20 |
Preferred stock shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock par value (in dollars per share) | $ 0.20 | $ 0.20 |
Common stock, shares authorized (in shares) | 1,125,000,000 | 1,125,000,000 |
Common stock shares issued (in shares) | 430,000,000 | 425,000,000 |
Tax benefit for accumulated other comprehensive (loss) income | $ 14,847 | $ 7,186 |
Common stock held in treasury (in shares) | 4,000,000 | 1,000,000 |
Series A Preferred Stock | ||
Preferred stock, stated value (in dollars per share) | $ 50 | $ 50 |
Preferred stock shares outstanding (in shares) | 3,300,000 | 3,300,000 |
Series B Preferred Stock | ||
Preferred stock, stated value (in dollars per share) | $ 100 | $ 100 |
Preferred stock shares outstanding (in shares) | 4,000,000 | 4,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Interest income: | ||||
Loans | $ 205,274 | $ 164,106 | $ 598,417 | $ 486,379 |
Investments | 2,640 | 2,917 | 7,746 | 6,121 |
Cash and cash equivalents | 987 | 1,180 | 2,568 | 3,145 |
Total interest income | 208,901 | 168,203 | 608,731 | 495,645 |
Interest expense: | ||||
Deposits | 29,110 | 24,177 | 86,961 | 67,842 |
Interest expense on short-term borrowings | 1,951 | 0 | 4,719 | 0 |
Interest expense on long-term borrowings | 2,398 | 0 | 2,398 | 0 |
Total interest expense | 33,459 | 24,177 | 94,078 | 67,842 |
Net interest income | 175,442 | 144,026 | 514,653 | 427,803 |
Less: provisions for loan losses | 27,497 | 14,898 | 59,673 | 55,071 |
Net interest income after provisions for loan losses | 147,945 | 129,128 | 454,980 | 372,732 |
Noninterest income: | ||||
Gains on sales of loans, net | 0 | 85,147 | 76,874 | 120,963 |
(Losses) gains on derivatives and hedging activities, net | (547) | 5,401 | 4,347 | (4,821) |
Other | 10,455 | 5,461 | 29,374 | 28,826 |
Total noninterest income | 9,908 | 96,009 | 110,595 | 144,968 |
Expenses: | ||||
Compensation and benefits | 39,304 | 31,597 | 119,079 | 92,931 |
Other operating expenses | 53,560 | 40,482 | 144,771 | 103,226 |
Total operating expenses | 92,864 | 72,079 | 263,850 | 196,157 |
Acquired intangible asset amortization expense | 370 | 1,150 | 1,110 | 4,145 |
Restructuring and other reorganization expenses | 910 | 14,079 | 6,311 | 27,828 |
Total expenses | 94,144 | 87,308 | 271,271 | 228,130 |
Income before income tax expense | 63,709 | 137,829 | 294,304 | 289,570 |
Income tax expense | 17,985 | 54,903 | 109,865 | 115,502 |
Net income | 45,724 | 82,926 | 184,439 | 174,068 |
Less: net loss attributable to noncontrolling interest | 0 | 0 | 0 | (434) |
Net income attributable to SLM Corporation | 45,724 | 82,926 | 184,439 | 174,502 |
Preferred stock dividends | 4,913 | 4,850 | 14,606 | 8,078 |
Net income attributable to SLM Corporation common stock | $ 40,811 | $ 78,076 | $ 169,833 | $ 166,424 |
Basic earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.10 | $ 0.18 | $ 0.40 | $ 0.39 |
Average common shares outstanding (in shares) | 426,019 | 423,079 | 425,384 | 424,187 |
Diluted earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.09 | $ 0.18 | $ 0.39 | $ 0.38 |
Average common and common equivalent shares outstanding (in shares) | 432,547 | 431,604 | 432,531 | 432,324 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 45,724 | $ 82,926 | $ 184,439 | $ 174,068 |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) on investments | 2,008 | (525) | (499) | 3,629 |
Unrealized losses on cash flow hedges | (21,751) | (1,883) | (19,284) | (1,883) |
Total unrealized (losses) gains | (19,743) | (2,408) | (19,783) | 1,746 |
Income tax benefit (expense) | 7,676 | 921 | 7,661 | (574) |
Other comprehensive (loss) income, net of tax benefit (expense) | (12,067) | (1,487) | (12,122) | 1,172 |
Comprehensive income | 33,657 | 81,439 | 172,317 | 175,240 |
Less: comprehensive loss attributable to noncontrolling interest | 0 | 0 | 0 | (434) |
Total comprehensive income attributable to SLM Corporation | $ 33,657 | $ 81,439 | $ 172,317 | $ 175,674 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) | Total | Series A Preferred Stock | Series B Preferred Stock | Navient's subsidiary investment | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained EarningsSeries A Preferred Stock | Retained EarningsSeries B Preferred Stock | Total SLM Corporation Equity | Total SLM Corporation EquitySeries A Preferred Stock | Total SLM Corporation EquitySeries B Preferred Stock | Non-controlling interest |
Beginning Balance (in shares) at Dec. 31, 2013 | 0 | 0 | 0 | |||||||||||||
Beginning Balance, shares issued (in shares) at Dec. 31, 2013 | 0 | |||||||||||||||
Beginning Balance at Dec. 31, 2013 | $ 1,166,143,000 | $ 1,164,495,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ (3,024,000) | $ 0 | $ 1,161,471,000 | $ 4,672,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income (loss) | 174,068,000 | 68,173,000 | 106,329,000 | 174,502,000 | (434,000) | |||||||||||
Other comprehensive income (loss), net of tax | 1,172,000 | 1,172,000 | 1,172,000 | |||||||||||||
Comprehensive income | 175,240,000 | 175,674,000 | (434,000) | |||||||||||||
Net transfers (to) from affiliate | 479,409,000 | 479,409,000 | 479,409,000 | |||||||||||||
Separation adjustments related to Spin-Off of Navient Corporation (in shares) | 7,300,000 | 422,790,320 | ||||||||||||||
Separation adjustments related to Spin-Off of Navient Corporation | 0 | (1,712,077,000) | $ 565,000,000 | $ 84,558,000 | 1,062,519,000 | |||||||||||
Sale of non-controlling interest | (4,238,000) | (4,238,000) | ||||||||||||||
Cash dividends: | ||||||||||||||||
Cash dividends, preferred stock | $ (4,792,000) | $ (3,286,000) | $ (4,792,000) | $ (3,286,000) | $ (4,792,000) | $ (3,286,000) | ||||||||||
Dividend equivalent units related to employee stock-based compensation plans | $ 0 | 41,000 | (41,000) | |||||||||||||
Issuance of common shares (in shares) | 1,089,716 | 1,089,716 | ||||||||||||||
Issuance of common shares | $ 4,610,000 | $ 219,000 | 4,391,000 | 4,610,000 | ||||||||||||
Stock-based compensation expense | 11,550,000 | 11,550,000 | 11,550,000 | |||||||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (715,393) | (715,393) | ||||||||||||||
Shares repurchased related to employee stock-based compensation plans | (6,208,000) | $ (6,208,000) | (6,208,000) | |||||||||||||
Ending Balance (in shares) at Sep. 30, 2014 | 7,300,000 | 423,164,643 | (715,393) | |||||||||||||
Ending Balance, shares issued (in shares) at Sep. 30, 2014 | 423,880,036 | |||||||||||||||
Ending Balance at Sep. 30, 2014 | 1,818,428,000 | $ 0 | $ 565,000,000 | $ 84,777,000 | $ (6,208,000) | 1,078,501,000 | (1,852,000) | 98,210,000 | 1,818,428,000 | $ 0 | ||||||
Beginning Balance (in shares) at Dec. 31, 2014 | 7,300,000 | 423,438,848 | (1,365,277) | |||||||||||||
Beginning Balance, shares issued (in shares) at Dec. 31, 2014 | 424,804,125 | |||||||||||||||
Beginning Balance at Dec. 31, 2014 | 1,829,958,000 | $ 565,000,000 | $ 84,961,000 | $ (12,187,000) | 1,090,511,000 | (11,393,000) | 113,066,000 | 1,829,958,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income (loss) | 184,439,000 | 184,439,000 | 184,439,000 | |||||||||||||
Other comprehensive income (loss), net of tax | (12,122,000) | (12,122,000) | (12,122,000) | |||||||||||||
Comprehensive income | 172,317,000 | 172,317,000 | ||||||||||||||
Net transfers (to) from affiliate | $ 0 | |||||||||||||||
Cash dividends: | ||||||||||||||||
Cash dividends, preferred stock | $ (8,625,000) | $ (5,981,000) | $ (8,625,000) | $ (5,981,000) | ||||||||||||
Dividend equivalent units related to employee stock-based compensation plans | 1,138,000 | (1,138,000) | 0 | |||||||||||||
Issuance of common shares (in shares) | 5,569,853 | 5,569,853 | ||||||||||||||
Issuance of common shares | $ 1,114,000 | 14,329,000 | 15,443,000 | |||||||||||||
Tax benefit related to employee stock-based compensation | 6,093,000 | 6,093,000 | ||||||||||||||
Stock-based compensation expense | 16,423,000 | 16,423,000 | ||||||||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (2,900,266) | (2,900,266) | ||||||||||||||
Shares repurchased related to employee stock-based compensation plans | $ (28,294,000) | (28,294,000) | ||||||||||||||
Ending Balance (in shares) at Sep. 30, 2015 | 7,300,000 | 426,108,435 | (4,265,543) | |||||||||||||
Ending Balance, shares issued (in shares) at Sep. 30, 2015 | 430,373,978 | |||||||||||||||
Ending Balance at Sep. 30, 2015 | $ 1,997,334,000 | $ 565,000,000 | $ 86,075,000 | $ (40,481,000) | $ 1,128,494,000 | $ (23,515,000) | $ 281,761,000 | $ 1,997,334,000 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Series A Preferred Stock | ||
Preferred stock dividend rate (in dollars per share) | $ 0.87 | $ 0.87 |
Series B Preferred Stock | ||
Preferred stock dividend rate (in dollars per share) | $ 0.51 | $ 0.49 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Operating activities | ||
Net income | $ 184,439 | $ 174,068 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Provisions for loan losses | 59,673 | 55,071 |
Income tax expense | 109,865 | 115,502 |
Amortization of brokered deposit placement fee | 8,006 | 7,548 |
Amortization of asset-backed commercial paper upfront fee | 1,790 | 0 |
Amortization of deferred loan origination costs and fees, net | 2,563 | 1,446 |
Net accretion of discount on borrowings | 108 | 0 |
Net accretion of underwriter fees on borrowings | 108 | 0 |
Net amortization of discount on investments | 1,332 | 433 |
Depreciation of premises and equipment | 5,427 | 4,289 |
Amortization of acquired intangibles | 1,110 | 2,783 |
Stock-based compensation expense | 16,423 | 20,127 |
Unrealized (gains)/losses on derivative and hedging activities, net | (1,985) | 1,307 |
Gains on sale of loans, net | (76,874) | (120,963) |
Changes in operating assets and liabilities: | ||
Net decrease in loans held for sale | 55 | 6,448 |
Origination of loans held for sale | (55) | (6,448) |
Increase in accrued interest receivable | (316,263) | (220,273) |
Increase in restricted cash and investments - other | (2,596) | (1,503) |
Decrease (increase) in other interest-earning assets | 24,875 | (46,333) |
Decrease in tax indemnification receivable | 39,607 | 29,816 |
Increase in other assets | (18,022) | (18,918) |
Decrease in income tax payable, net | (176,172) | (294,116) |
Increase in accrued interest payable | 7,227 | 2,639 |
(Decrease) increase in payable due to entity that is a subsidiary of Navient | (5,368) | 18,114 |
Increase in other liabilities | 5,895 | 30,741 |
Total adjustments | (313,271) | (412,290) |
Total net cash used in operating activities | (128,832) | (238,222) |
Investing activities | ||
Loans acquired and originated | (3,786,946) | (3,535,740) |
Net proceeds from sales of loans held for investment | 790,094 | 1,994,017 |
Proceeds from claim payments | 91,000 | 88,251 |
Net decrease (increase) in loans held for investment | 672,665 | 476,955 |
Increase in restricted cash and investments - variable interest entities | (18,205) | 0 |
Purchases of available-for-sale securities | (50,062) | (55,928) |
Proceeds from sales and maturities of available-for-sale securities | 26,222 | 7,337 |
Total net cash used in investing activities | (2,275,232) | (1,025,108) |
Financing activities | ||
Brokered deposit placement fee | (477) | (5,533) |
Net increase (decrease) in certificates of deposit | 161,096 | (614,953) |
Net (decrease) increase in other deposits | (129,412) | 804,874 |
Borrowings collateralized by loans in securitization trusts - issued | 620,681 | 0 |
Borrowings collateralized by loans in securitization trusts - repaid | (27,195) | 0 |
Borrowings under ABCP facility | 713,746 | 0 |
Repayment of borrowings under ABCP facility | (3,741) | 0 |
Fees paid on ABCP facility | (104) | 0 |
Net decrease in deposits with entity that is a subsidiary of Navient | 0 | (5,633) |
Special cash contribution from Navient | 0 | 472,718 |
Net capital contributions from entity that is a subsidiary of Navient | 0 | 7,448 |
Excess tax benefit from the exercise of stock-based awards | 6,093 | 0 |
Preferred stock dividends paid | (14,606) | (8,078) |
Net cash provided by financing activities | 1,326,081 | 650,843 |
Net decrease in cash and cash equivalents | (1,077,983) | (612,487) |
Cash and cash equivalents at beginning of period | 2,359,780 | 2,182,865 |
Cash and cash equivalents at end of period | 1,281,797 | 1,570,378 |
Cash disbursements made for: | ||
Interest | 79,917 | 64,987 |
Income taxes paid | $ 171,114 | $ 294,116 |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying unaudited, consolidated financial statements of SLM Corporation (“we,” “us,” “our,” “Sallie Mae,” or the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all the information and footnotes required by GAAP for complete consolidated financial statements. 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. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results for the year ending December 31, 2015 or for any other period. These unaudited financial statements should be read in conjunction with the audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2014 (the “2014 Form 10-K”). On April 30, 2014, we completed our plan to legally 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. For periods before the Spin-Off, the 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 carved-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, the balances before that date include the carved-out financial results. Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. Restricted Cash and Investments Restricted cash and investments primarily includes amounts held in student loan securitization trusts and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the trust assets and when principal and interest is paid on trust liabilities. Recently Issued Accounting Pronouncements On February 18, 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which amends the current consolidation guidance. The amendments reduce the number of consolidation models through the elimination of the indefinite deferral of ASC 810 and place more emphasis on risk of loss when determining a controlling financial interest. The standard is effective January 1, 2016, with early adoption permitted during an interim period in fiscal year 2015. In the third quarter of 2015, we elected to early adopt the new accounting guidance retrospectively to July 1, 2015. The early adoption of this standard had no impact on our consolidated financial statements. |
Loans Held for Investment
Loans Held for Investment | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Loans Held for Investment | Loans Held for Investment Loans Held for Investment consist of Private Education Loans and FFELP Loans. “Private Education Loans” are education loans to students or their families that are not issued, insured, or guaranteed by any state or federal government. 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 borrower and any cosigners. We manage this risk through risk-performance underwriting strategies and the addition of qualified cosigners. Our Private Education Loans generally carry a variable interest rate indexed to LIBOR. As of September 30, 2015, 82 percent of all Private Education Loans were indexed to LIBOR. We provide incentives for customers to include a cosigner on our Private Education Loans, and the vast majority of Private Education Loans in our portfolio are cosigned. We also encourage our Private Education Loan customers to make payments while in school. FFELP Loans are insured by the federal government 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 on all qualifying claims. 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 on all qualifying claims. Loans held for investment are summarized as follows: September 30, December 31, 2015 2014 Private Education Loans $ 10,840,261 $ 8,311,376 Deferred origination costs 26,283 13,845 Allowance for loan losses (100,033 ) (78,574 ) Total Private Education Loans, net 10,766,511 8,246,647 FFELP Loans 1,143,595 1,264,807 Unamortized acquisition costs, net 3,212 3,600 Allowance for loan losses (4,170 ) (5,268 ) Total FFELP Loans, net 1,142,637 1,263,139 Loans held for investment, net $ 11,909,148 $ 9,509,786 The estimated weighted average life of education loans in our portfolio was approximately 6.3 years and 6.2 years at September 30, 2015 and December 31, 2014, respectively. The average balance and the respective weighted average interest rates of education loans in our portfolio are summarized as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 9,869,025 7.87 % $ 7,407,774 8.20 % $ 9,563,290 7.96 % $ 7,394,985 8.19 % FFELP Loans 1,161,288 3.27 1,339,748 3.23 1,196,491 3.22 1,373,945 3.25 Total portfolio $ 11,030,313 $ 8,747,522 $ 10,759,781 $ 8,768,930 |
Allowance for Loan Losses
Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses Our provision for 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. Allowance for Loan Losses Metrics Allowance for Loan Losses Three Months Ended September 30, 2015 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 4,556 $ 87,310 $ 91,866 Total provision 143 27,354 27,497 Net charge-offs: Charge-offs (529 ) (14,121 ) (14,650 ) Recoveries — 1,361 1,361 Net charge-offs (529 ) (12,760 ) (13,289 ) Loan sales (1) — (1,871 ) (1,871 ) Ending Balance $ 4,170 $ 100,033 $ 104,203 Allowance: Ending balance: individually evaluated for impairment $ — $ 43,001 $ 43,001 Ending balance: collectively evaluated for impairment $ 4,170 $ 57,032 $ 61,202 Loans: Ending balance: individually evaluated for impairment $ — $ 231,286 $ 231,286 Ending balance: collectively evaluated for impairment $ 1,143,595 $ 10,608,975 $ 11,752,570 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.25 % 0.83 % Allowance as a percentage of the ending total loan balance 0.36 % 0.92 % Allowance as a percentage of the ending loans in repayment (2) 0.50 % 1.50 % Allowance coverage of net charge-offs (annualized) 1.97 1.96 Ending total loans, gross $ 1,143,595 $ 10,840,261 Average loans in repayment (2) $ 839,090 $ 6,118,678 Ending loans in repayment (2) $ 836,585 $ 6,657,228 ____________ (1) Represents fair value write-downs on loans sold. (2) Loans in repayment include loans making interest only and fixed payments as well as loans that have entered full principal and interest repayment status. Allowance for Loan Losses Three Months Ended September 30, 2014 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 6,212 $ 54,315 $ 60,527 Total provision 291 14,607 14,898 Net charge-offs: Charge-offs (761 ) (4,378 ) (5,139 ) Recoveries — — — Net charge-offs (761 ) (4,378 ) (5,139 ) Loan sales (1) — (4,571 ) (4,571 ) Ending Balance $ 5,742 $ 59,973 $ 65,715 Allowance: Ending balance: individually evaluated for impairment $ — $ 2,966 $ 2,966 Ending balance: collectively evaluated for impairment $ 5,742 $ 57,007 $ 62,749 Loans: Ending balance: individually evaluated for impairment $ — $ 13,115 $ 13,115 Ending balance: collectively evaluated for impairment $ 1,317,963 $ 7,816,305 $ 9,134,268 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.32 % 0.39 % Allowance as a percentage of the ending total loan balance 0.44 % 0.77 % Allowance as a percentage of the ending loans in repayment (2) 0.61 % 1.31 % Allowance coverage of net charge-offs (annualized) 1.89 3.42 Ending total loans, gross $ 1,317,963 $ 7,829,420 Average loans in repayment (2) $ 953,620 $ 4,453,775 Ending loans in repayment (2) $ 945,230 $ 4,575,143 ____________ (1) Represents fair value write-downs on loans sold. (2) Loans in repayment include loans making interest only and fixed payments as well as loans that have entered full principal and interest repayment status. Allowance for Loan Losses Nine Months Ended September 30, 2015 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 5,268 $ 78,574 $ 83,842 Total provision 1,044 58,629 59,673 Net charge-offs: Charge-offs (2,142 ) (36,127 ) (38,269 ) Recoveries — 4,529 4,529 Net charge-offs (2,142 ) (31,598 ) (33,740 ) Loan sales (1) — (5,572 ) (5,572 ) Ending Balance $ 4,170 $ 100,033 $ 104,203 Allowance: Ending balance: individually evaluated for impairment $ — $ 43,001 $ 43,001 Ending balance: collectively evaluated for impairment $ 4,170 $ 57,032 $ 61,202 Loans: Ending balance: individually evaluated for impairment $ — $ 231,286 $ 231,286 Ending balance: collectively evaluated for impairment $ 1,143,595 $ 10,608,975 $ 11,752,570 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.33 % 0.72 % Allowance as a percentage of the ending total loan balance 0.36 % 0.92 % Allowance as a percentage of the ending loans in repayment (2) 0.50 % 1.50 % Allowance coverage of net charge-offs (annualized) 1.46 2.37 Ending total loans, gross $ 1,143,595 $ 10,840,261 Average loans in repayment (2) $ 868,649 $ 5,848,345 Ending loans in repayment (2) $ 836,585 $ 6,657,228 ____________ (1) Represents fair value write-downs on loans sold. (2) Loans in repayment include loans making interest only and fixed payments as well as loans that have entered full principal and interest repayment status. Allowance for Loan Losses Nine Months Ended September 30, 2014 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 6,318 $ 61,763 $ 68,081 Total provision 1,482 53,589 55,071 Charge-offs (2,058 ) (4,378 ) (6,436 ) Loan sales (1) — (51,001 ) (51,001 ) Ending Balance $ 5,742 $ 59,973 $ 65,715 Allowance: Ending balance: individually evaluated for impairment $ — $ 2,966 $ 2,966 Ending balance: collectively evaluated for impairment $ 5,742 $ 57,007 $ 62,749 Loans: Ending balance: individually evaluated for impairment $ — $ 13,115 $ 13,115 Ending balance: collectively evaluated for impairment $ 1,317,963 $ 7,816,305 $ 9,134,268 Charge-offs as a percentage of average loans in repayment (annualized) (2) 0.28 % 0.13 % Allowance as a percentage of the ending total loan balance 0.44 % 0.77 % Allowance as a percentage of the ending loans in repayment (2) 0.61 % 1.31 % Allowance coverage of charge-offs (annualized) 2.09 10.27 Ending total loans, gross $ 1,317,963 $ 7,829,420 Average loans in repayment (2) $ 980,733 $ 4,408,852 Ending loans in repayment (3) $ 945,230 $ 4,575,143 ____________ (1) Represents fair value write-downs on loans sold. (2) Loans in repayment include loans making interest only and fixed payments as well as loans that have entered full principal and interest repayment status. Troubled Debt Restructurings (“TDRs”) All of our loans are collectively assessed for impairment, except for loans classified as TDRs (where we conduct individual assessments of impairment). We modify the terms of loans for certain borrowers when we believe such modifications may increase the ability and willingness of a borrower to make payments and thus increase the ultimate overall amount collected on a loan. These modifications generally take the form of a forbearance, a temporary interest rate reduction or an extended repayment plan. In the first nine months after a loan enters full principal and interest repayment, the loan may be in forbearance for up to six months without it being classified as a TDR. Once the initial nine -month period described above is over, however, any loan that receives more than three months of forbearance in a twenty-four month period is classified as a TDR. Also, a loan becomes a TDR when it is modified to reduce the interest rate on the loan (regardless of when such modification occurs and/or whether such interest rate reduction is temporary). 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. Approximately 22 percent and 10 percent of the loans granted forbearance as of September 30, 2015 and December 31, 2014, respectively, have been classified as TDRs due to their forbearance status. Prior to the Spin-Off, we did not have TDR loans because the loans generally were sold to a now unrelated affiliate in the same month that the terms were restructured. Subsequent to May 1, 2014, we have individually assessed $251 million of Private Education Loans as TDRs. When these TDR 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 (which would include life-of-loan default and recovery assumptions) 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 perspective at any point in their life cycle prior to claim payment, and we continue to accrue interest on those loans through the date of claim. At September 30, 2015 and December 31, 2014, all 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 September 30, 2015 TDR Loans $ 234,360 $ 231,286 $ 43,001 December 31, 2014 TDR Loans $ 60,278 $ 59,402 $ 9,815 The following table provides the average recorded investment and interest income recognized for our TDR loans. Three Months Ended Three Months Ended September 30, 2015 September 30, 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 210,039 $ 4,198 $ 8,740 $ 129 Nine Months Ended Nine Months Ended September 30, 2015 September 30, 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 150,240 $ 9,314 $ 3,958 $ 160 The following table provides information regarding the loan status of TDR loans and the aging of TDR loans that are past due. September 30, December 31, 2015 2014 Balance % Balance % TDR loans in in-school/grace/deferment (1) $ 4,940 $ 2,915 TDR loans in forbearance (2) 50,878 18,620 TDR loans in repayment and percentage of each status: Loans current 154,984 88.3 % 34,554 91.2 % Loans delinquent 31-60 days (3) 11,042 6.3 1,953 5.2 Loans delinquent 61-90 days (3) 6,336 3.6 983 2.6 Loans delinquent greater than 90 days (3) 3,106 1.8 377 1.0 Total TDR loans in repayment 175,468 100.0 % 37,867 100.0 % Total TDR loans, gross $ 231,286 $ 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 tables provides the amount of modified loans (which includes forbearance and reductions in interest rates) that became TDRs in the periods presented. Additionally, for the periods presented, the table summarizes charge-offs occurring in the TDR portfolio, as well as TDRs for which a payment default occurred in the relevant period presented and within 12 months of the loan first being designated as a TDR. We define payment default as 60 days past due for this disclosure. Three Months Ended Three Months Ended September 30, 2015 September 30, 2014 Modified Loans (1) Charge-offs Payment- Default Modified Loans (1) Charge-offs Payment- Default TDR Loans $ 49,975 $ 3,456 $ 16,719 $ 7,840 $ 87 $ 252 Nine Months Ended Nine Months Ended September 30, 2015 September 30, 2014 Modified Loans (1) Charge-offs Payment- Default Modified Loans (1) Charge-offs Payment- Default TDR Loans $ 189,066 $ 5,845 $ 29,895 $ 14,880 $ 87 $ 320 _____ (1) Represents the principal balance of loans that have been modified during the period and resulted in a TDR. Key Credit Quality Indicators For Private Education Loans, the key credit quality indicators are FICO scores, the existence of a cosigner, loan status, and loan seasoning. The FICO scores are assessed at origination and periodically refreshed/updated 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. Private Education Loans Credit Quality Indicators September 30, 2015 December 31, 2014 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance Cosigners: With cosigner $ 9,748,371 90 % $ 7,465,339 90 % Without cosigner 1,091,890 10 846,037 10 Total $ 10,840,261 100 % $ 8,311,376 100 % FICO at Origination: Less than 670 $ 706,688 6 % $ 558,801 7 % 670-699 1,582,381 15 1,227,860 15 700-749 3,470,300 32 2,626,238 32 Greater than or equal to 750 5,080,892 47 3,898,477 46 Total $ 10,840,261 100 % $ 8,311,376 100 % Seasoning (2) : 1-12 payments $ 3,575,055 33 % $ 2,373,117 29 % 13-24 payments 1,729,120 16 1,532,042 18 25-36 payments 871,590 8 755,143 9 37-48 payments 411,596 4 411,493 5 More than 48 payments 281,508 2 212,438 3 Not yet in repayment 3,971,392 37 3,027,143 36 Total $ 10,840,261 100 % $ 8,311,376 100 % (1) Balance represents gross Private Education Loans. (2) Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due. 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 September 30, 2015 are $700 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 September 30, 2015 and December 31, 2014, 61 percent and 62 percent , respectively, of our FFELP portfolio consisted of rehabilitation loans. The following tables provide information regarding the loan status of our Private Education Loans and the aging of our past due Private Education Loans. Loans in repayment include loans making interest only and fixed payments as well as loans that have entered full principal and interest repayment status. Private Education Loans September 30, December 31, 2015 2014 Balance % Balance % Loans in-school/grace/deferment (1) $ 3,971,392 $ 3,027,143 Loans in forbearance (2) 211,641 135,018 Loans in repayment and percentage of each status: Loans current 6,529,855 98.1 % 5,045,600 98.0 % Loans delinquent 31-60 days (3) 79,794 1.2 63,873 1.2 Loans delinquent 61-90 days (3) 34,743 0.5 29,041 0.6 Loans delinquent greater than 90 days (3) 12,836 0.2 10,701 0.2 Total loans in repayment 6,657,228 100.0 % 5,149,215 100.0 % Total loans, gross 10,840,261 8,311,376 Deferred origination costs 26,283 13,845 Total loans 10,866,544 8,325,221 Allowance for loan losses (100,033 ) (78,574 ) Total loans, net $ 10,766,511 $ 8,246,647 Percentage of loans in repayment 61.4 % 62.0 % Delinquencies as a percentage of loans in repayment 1.9 % 2.0 % Loans in forbearance as a percentage of loans in repayment and forbearance 3.1 % 2.6 % (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 Receivable Greater Than 90 Days Past Due Allowance for Uncollectible Interest September 30, 2015 $ 606,218 $ 489 $ 2,979 December 31, 2014 $ 445,710 $ 443 $ 3,517 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2015 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits The following table summarizes total deposits at September 30, 2015 and December 31, 2014. September 30, December 31, 2015 2014 Deposits - interest bearing $ 10,610,592 $ 10,539,953 Deposits - non interest bearing 287 602 Total deposits $ 10,610,879 $ 10,540,555 Interest Bearing Interest bearing deposits as of September 30, 2015 and December 31, 2014 consisted of retail non-maturity savings and money market deposits, brokered and retail certificates of deposit, 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. Interest bearing deposits at September 30, 2015 and December 31, 2014 are summarized as follows: September 30, 2015 December 31, 2014 Amount Qtr.-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 4,436,095 1.18 % $ 4,527,448 1.15 % Savings 665,941 0.82 703,687 0.81 Certificates of deposit 5,508,556 0.99 5,308,818 1.00 Deposits - interest bearing $ 10,610,592 $ 10,539,953 ____________ (1) Includes the effect of interest rate swaps in effective hedge relationships. As of September 30, 2015 and December 31, 2014, there were $ 194,714 and $253,953 , respectively, of deposits exceeding Federal Deposit Insurance Corporation (“FDIC”) insurance limits. Accrued interest on deposits was $22,637 and $16,082 at September 30, 2015 and December 31, 2014, respectively. Non Interest Bearing Non interest bearing deposits were $ 287 and $ 602 as of September 30, 2015 and December 31, 2014, respectively. For both periods, these were comprised of money market accounts related to our Employee Stock Purchase Plan account. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Outstanding borrowings consist of secured borrowings issued through our term asset backed securitization (“ABS”) program and our asset backed commercial paper (“ABCP”) funding facility. The following table summarizes our secured borrowings at September 30, 2015. We had no secured borrowings outstanding at December 31, 2014. September 30, 2015 Short-Term Long-Term Total Secured borrowings: Private Education Loan term securitization $ — $ 593,687 $ 593,687 ABCP borrowings 710,005 — 710,005 Total $ 710,005 $ 593,687 $ 1,303,692 On July 30, 2015, we executed our $ 714 million SMB Private Education Loan Trust 2015-B term ABS transaction, which was accounted for as an on-balance sheet secured financing. We retained a 5 percent or $33 million interest in the Class A and B notes, a 100 percent or $50 million interest in the Class C notes and 100 percent of the residual certificates issued in the securitization. $ 631 million of notes from the securitization were sold to third parties, raising $ 623 million of gross proceeds. The Class A and B notes had a weighted average life of 4.8 years and priced at a weighted average LIBOR equivalent cost of 1 month LIBOR plus 1.53 percent . At September 30, 2015, $ 692 million of our Private Education Loans were encumbered as a result of this transaction. On-Balance Sheet Term Securitizations Issue Date Issued Total Issued To Third Parties Weighted Average Cost of Funds (1) Weighted Average Life Private Education: 2015-B July 2015 $ 630,800 1 month LIBOR plus 1.53% 4.82 Total notes issued in 2015 $ 630,800 Total loan amount securitized in on-balance sheet term securitizations in 2015 $ 745,580 ____________ (1) Represents LIBOR equivalent cost of funds for floating and fixed rate bonds, excluding issuance costs. Asset-Backed Commercial Paper Funding Facility On December 19, 2014, we closed on a $ 750 million ABCP Private Education Loan funding facility. Pursuant to FDIC safe harbor guidelines, we retained a 5 percent or $37.5 million ownership interest in the ABCP facility, resulting in $712.5 million of funds being available for us to draw under the facility. We incur financing costs under the ABCP facility of approximately 0.40 percent on unused borrowing capacity and approximately 3 month LIBOR plus 0.80 percent on outstandings under the facility. At September 30, 2015, $710 million had been drawn and remained outstanding under the facility, net of our 5 percent retention. At September 30, 2015, $ 902 million of our Private Education Loans were encumbered as a result of this transaction. We consolidate our financing entities that are variable interest entities (“VIEs”) as a result of our being the entities’ primary beneficiary. As a result, these financing VIEs are accounted for as secured borrowings. We consolidate the following financing VIEs as of September 30, 2015: September 30, 2015 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets Total Secured borrowings: Private Education Loan term securitization $ — $ 593,687 $ 593,687 $ 692,379 $ 8,135 $ 49,717 $ 750,231 ABCP borrowings 710,005 — 710,005 901,515 10,070 54,297 965,882 Total $ 710,005 $ 593,687 $ 1,303,692 $ 1,593,894 $ 18,205 $ 104,014 $ 1,716,113 Other Borrowing Sources We maintain discretionary uncommitted Federal Funds lines of credit with various correspondent banks, which totaled $100,000 at September 30, 2015. The interest rate we are charged 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 the three and nine months ended September 30, 2015 and September 30, 2014. We established an account at the Federal Reserve Bank (“FRB”) to meet eligibility requirements for access to the Primary Credit borrowing facility at the FRB’s Discount Window (“Window”). The Primary Credit borrowing facility is a lending program available to depository institutions that are in generally sound financial condition. All borrowings at the Window must be fully collateralized. We can pledge 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 September 30, 2015 and December 31, 2014, the value of our pledged collateral at the FRB totaled $1.5 billion and $1.4 billion, respectively. The interest rate charged to us is the discount rate set by the FRB. We did not utilize this facility in the three and nine months ended September 30, 2015 and September 30, 2014. |
Private Education Loan Term Sec
Private Education Loan Term Securitization | 9 Months Ended |
Sep. 30, 2015 | |
Transfers and Servicing of Financial Assets [Abstract] | |
Private Education Loan Securitization | Private Education Loan Term Securitizations We securitize Private Education Loan assets by selling these assets to securitization trusts. If a transfer of loans qualifies as a sale, we derecognize the loan and recognize a gain or loss as the difference between compensation received and the carrying basis of the loans sold and liabilities retained. We recognize the results of a transfer of loans based upon the settlement date of the transaction. If we have a variable interest in a VIE (e.g., a securitization trust) and have determined that we are the primary beneficiary, then we will consolidate the VIE and the transfer is accounted for as a financing as opposed to a sale. On July 30, 2015, we executed a $ 714 million Private Education Loan term ABS transaction that was accounted for as an on-balance sheet secured financing. We retained a 5 percent interest in the Class A and B notes, a 100 percent interest in the Class C notes and 100 percent of the residual certificates issued in the securitization. $ 631 million of notes were sold to third parties, raising $ 623 million of gross proceeeds. At September 30, 2015, $ 692 million of our Private Education Loans are encumbered as a result of this transaction. On April 23, 2015, we sold $738 million of Private Education Loans through a securitization transaction to qualified institutional buyers. The transaction qualified for sale treatment and removed the principal balance of the loans backing the securitization trust from our balance sheet on the settlement date. We continue to service the loans in the trust. In the second quarter of 2015, we recorded a pre-tax gain of $77 million on the sale, net of closing adjustments and transaction costs, a 10.4 percent premium. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments 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 assets and liabilities so the net interest margin is not, on a material basis, adversely affected by movements in interest rates. We do not use derivative instruments to hedge credit risk. As a result of interest rate fluctuations, hedged assets and liabilities will appreciate or depreciate in market value. Income or loss on the derivative instruments linked to the hedged assets and liabilities will generally offset the effect of this unrealized appreciation or depreciation for the period the item is being hedged. We view this strategy as a prudent management of interest rate sensitivity. Please refer to “Note 11 - Derivative Financial Instruments” in our 2014 Form 10-K for a full discussion of our risk management strategy. 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, foreign exchange rates, and market liquidity. Credit risk is the risk 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 the counterparty owes us. When the fair value of a derivative contract is negative, we owe the counterparty and, therefore, 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. Related to derivative transactions, protection against counterparty risk is generally provided by International Swaps and Derivatives Association, Inc. (“ISDA”) Credit Support Annexes (“CSAs”), or clearinghouses for Over the Counter (“OTC”) derivatives. CSAs require a counterparty to post collateral if a potential default would expose the other party to a loss. All derivative contracts entered into by the Bank are covered under such agreements and require collateral to be exchanged based on the net fair value of derivatives with each counterparty. Our exposure is limited to the value of the derivative contracts in a gain position less any collateral held or plus any collateral posted. Title VII of the Dodd-Frank Act requires all standardized derivatives, including most interest rate swaps, to be submitted for clearing to central counterparties to reduce counterparty risk. As of September 30, 2015, $ 4.0 billion notional of our derivative contracts were cleared on the Chicago Mercantile Exchange and the London Clearing House. All derivative contracts cleared through an exchange require collateral to be exchanged based on the fair value of the derivative. Our exposure is limited to the value of the derivative contracts in a gain position less any collateral held or plus any collateral posted. When there is a net negative exposure, we consider our exposure to the counterparty to be zero. At September 30, 2015 and December 31, 2014, 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 $ 48.9 million and $ 60.8 million, respectively. Summary of Derivative Financial Statement Impact The following tables summarize the fair values and notional amounts of all derivative instruments at September 30, 2015 and December 31, 2014, and their impact on earnings and other comprehensive income for the three and nine months ended September 30, 2015 and 2014. Impact of Derivatives on the Consolidated Balance Sheet Cash Flow Hedges Fair Value Hedges Trading Total September 30, December 31, September 30, December 31, September 30, December 31, September 30, December 31, 2015 2014 2015 2014 2015 2014 2015 2014 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ — $ — $ 36,919 $ 5,012 $ 1,827 $ 226 $ 38,746 $ 5,238 Derivative Liabilities: (2) Interest rate swaps Interest rate (40,855 ) (21,435 ) — (5,883 ) — (1,370 ) (40,855 ) (28,688 ) Total net derivatives $ (40,855 ) $ (21,435 ) $ 36,919 $ (871 ) $ 1,827 $ (1,144 ) $ (2,109 ) $ (23,450 ) ___________ (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 September 30, December 31, September 30, December 31, 2015 2014 2015 2014 Gross position $ 38,746 $ 5,238 $ (40,855 ) $ (28,688 ) Impact of master netting agreement (11,253 ) (4,045 ) 11,253 4,045 Derivative values with impact of master netting agreements (as carried on balance sheet) 27,493 1,193 (29,602 ) (24,643 ) Cash collateral (held) pledged (1) (14,617 ) (900 ) 47,604 72,478 Net position $ 12,876 $ 293 $ 18,002 $ 47,835 (1) Cash collateral amount calculations include outstanding accrued interest payable/receivable. Cash Flow Fair Value Trading Total September 30, December 31, September 30, December 31, September 30, December 31, September 30, December 31, 2015 2014 2015 2014 2015 2014 2015 2014 Notional Values Interest rate swaps $ 1,110,549 $ 1,106,920 $ 2,957,443 $ 3,044,492 $ 836,512 $ 973,539 $ 4,904,504 $ 5,124,951 Impact of Derivatives on the Consolidated Statements of Income Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Fair Value Hedges Interest rate swaps: Hedge ineffectiveness gains (losses) recorded in earnings (1) $ (1,843 ) $ 1,238 $ (929 ) $ 1,488 Realized gains recorded in interest expense 7,531 3,835 22,512 14,081 Total $ 5,688 $ 5,073 $ 21,583 $ 15,569 Cash Flow Hedges Interest rate swaps: Hedge ineffectiveness gains (losses) recorded in earnings (1) $ (273 ) $ (303 ) $ (542 ) $ (303 ) Realized losses recorded in interest expense (5,411 ) (3,587 ) (16,157 ) (3,587 ) Total $ (5,684 ) $ (3,890 ) $ (16,699 ) $ (3,890 ) Trading Interest rate swaps: Interest reclassification $ 853 $ (1,170 ) $ 2,846 $ (3,137 ) Change in fair value of future interest payments recorded in earnings 716 5,636 2,972 (2,870 ) Total (1) 1,569 4,466 5,818 (6,007 ) Total $ 1,573 $ 5,649 $ 10,702 $ 5,672 ________ (1) Amounts included in “(losses) gains on derivatives and hedging activities, net” in the consolidated statements of income. Impact of Derivatives on the Statements of Changes in Stockholders' Equity Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Amount of loss recognized in other comprehensive income $ (27,162 ) $ (5,470 ) $ (35,441 ) $ (5,470 ) Less: amount of loss reclassified in interest expense (1) 5,411 3,587 16,157 3,587 Total change in other comprehensive income for unrealized losses on derivatives $ (21,751 ) $ (1,883 ) $ (19,284 ) $ (1,883 ) ___________ (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 us and our derivatives counterparties was $14.6 million and $0.9 million at September 30, 2015 and December 31, 2014, respectively. Collateral held is recorded in “Other Liabilities.” Cash collateral pledged related to derivative exposure between us and our derivatives counterparties was $47.6 million and $72.5 million at September 30, 2015 and December 31, 2014, respectively. Collateral pledged is recorded in “Other Assets.” |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity The following table summarizes our common share repurchases and issuances. Three Months Ended September 30, Nine Months Ended September 30, (Shares and per share amounts in actuals) 2015 2014 2015 2014 Shares repurchased related to employee stock-based compensation plans (1)(2) 136,173 356,622 2,900,266 715,393 Average purchase price per share $ 8.88 $ 8.68 $ 9.76 $ 8.68 Common shares issued (3) 361,779 584,787 5,569,853 1,089,716 __________________ (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) At the present time, we do not have a publicly announced repurchase plan or program. (3) Common shares issued under our various compensation and benefit plans. The closing price of our common stock on September 30, 2015 was $ 7.40 . 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, expenses of those transactions 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 transaction 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. There were no transfers (to)/from the entity that is now a subsidiary of Navient during the three or nine months ended September 30, 2015 and during the three months ended September 30, 2014. The components of the net transfers (to)/from the entity that is now a subsidiary of Navient for the nine months ended September 30, 2014 are summarized below: Nine Months Ended September 30, 2014 Capital contributions: Loan origination activities $ 32,452 Loan sales 45 Corporate overhead activities 21,216 Other 492,368 Total capital contributions 546,081 Corporate push-down 4,977 Net change in income tax accounts 15,659 Net change in receivable/payable (87,277 ) Other (31 ) Total net transfers from the entity that is now a subsidiary of Navient $ 479,409 Capital Contributions During the first four months of 2014, pre-Spin-Off SLM contributed capital to Sallie Mae Bank (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 loan origination functions were 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 sheet of the Company includes certain assets and liabilities that historically were 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 | 9 Months Ended |
Sep. 30, 2015 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | 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. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows. Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share data) 2015 2014 2015 2014 Numerator: Net income attributable to SLM Corporation $ 45,724 $ 82,926 $ 184,439 $ 174,502 Preferred stock dividends 4,913 4,850 14,606 8,078 Net income attributable to SLM Corporation common stock $ 40,811 $ 78,076 $ 169,833 $ 166,424 Denominator: Weighted average shares used to compute basic EPS 426,019 423,079 425,384 424,187 Effect of dilutive securities: Dilutive effect of stock options, restricted stock and restricted stock units and Employee Stock Purchase Plan ("ESPP") (1)(2) 6,528 8,525 7,147 8,137 Weighted average shares used to compute diluted EPS 432,547 431,604 432,531 432,324 Basic earnings per common share attributable to SLM Corporation $ 0.10 $ 0.18 $ 0.40 $ 0.39 Diluted earnings per common share attributable to SLM Corporation $ 0.09 $ 0.18 $ 0.39 $ 0.38 _________________ (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method. (2) For the three months ended September 30, 2015 and 2014, securities covering approximately 2 million and 3 million shares, respectively, and for the nine months ended September 30, 2015 and 2014, securities covering approximately 2 million and 3 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2015 | |
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 hierarchical 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” in our 2014 Form 10-K. During the nine months ended September 30, 2015, there were no significant transfers of financial instruments between levels or changes in our methodology or assumptions used to value our financial instruments. 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 September 30, 2015 December 31, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Mortgage-backed securities $ — $ 190,944 $ — $ 190,944 $ — $ 168,934 $ — $ 168,934 Derivative instruments — 38,746 — 38,746 — 5,238 — 5,238 Total $ — $ 229,690 $ — $ 229,690 $ — $ 174,172 $ — $ 174,172 Liabilities Derivative instruments $ — $ (40,855 ) $ — $ (40,855 ) $ — $ (28,688 ) $ — $ (28,688 ) Total $ — $ (40,855 ) $ — $ (40,855 ) $ — $ (28,688 ) $ — $ (28,688 ) The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. September 30, 2015 December 31, 2014 Fair Value Carrying Value Difference Fair Value Carrying Value Difference Earning assets Loans held for investment, net $ 12,837,892 $ 11,909,148 $ 928,744 $ 10,228,399 $ 9,509,786 $ 718,613 Cash and cash equivalents 1,281,797 1,281,797 — 2,359,780 2,359,780 — Available-for-sale investments 190,944 190,944 — 168,934 168,934 — Accrued interest receivable 634,423 634,423 — 469,697 469,697 — Tax indemnification receivable 200,704 200,704 — 240,311 240,311 — Derivative instruments 38,746 38,746 — 5,238 5,238 — Total earning assets $ 15,184,506 $ 14,255,762 $ 928,744 $ 13,472,359 $ 12,753,746 $ 718,613 Interest-bearing liabilities Money-market and savings accounts $ 5,102,323 $ 5,102,323 $ — $ 5,231,736 $ 5,231,736 $ — Certificates of deposit 5,487,525 5,508,556 21,031 5,313,645 5,308,818 (4,827 ) Short-term borrowings 710,005 710,005 — — — — Long-term borrowings 583,314 593,687 10,373 — — — Accrued interest payable 23,309 23,309 — 16,082 16,082 — Derivative instruments 40,855 40,855 — 28,688 28,688 — Total interest-bearing liabilities $ 11,947,331 $ 11,978,735 $ 31,404 $ 10,590,151 $ 10,585,324 $ (4,827 ) Excess of net asset fair value over carrying value $ 960,148 $ 713,786 Borrowings are accounted for at cost in the financial statements. The carrying value of short-term borrowings approximated fair value for disclosure purposes, due to the short-term nature of those borrowings. This is a level 1 valuation. The fair value of long-term borrowings is estimated using current market prices. This is a level 2 valuation. Please refer to “Note 15 - Fair Value Measurements” in our 2014 Form 10-K for a full discussion of the methods and assumptions used to estimate the fair value of each class of financial instruments. |
Arrangements with Navient Corpo
Arrangements with Navient Corporation | 9 Months Ended |
Sep. 30, 2015 | |
Related Party Transactions [Abstract] | |
Arrangements with Navient Corporation | Arrangements with Navient Corporation In connection with the Spin-Off, we entered into a separation and distribution agreement and other ancillary agreements with Navient. Please refer to “Note 16 - Arrangements with Navient Corporation” in our 2014 Form 10-K for a full discussion of these agreements. Amended Loan Participation and Purchase Agreement Prior to the Spin-Off, the Bank sold substantially all its Private Education Loans to several former affiliates, now subsidiaries of Navient (collectively, the “Purchasers”), pursuant to a Loan Participation and Purchase Agreement. This agreement predated the Spin-Off, but was 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 September 30, 2015, we held approximately $96.1 million of Split Loans. During the three months ended September 30, 2015, the Bank sold loans to the Purchasers in the amount of $ 6,552 in principal and $ 153 in accrued interest income. During the three months ended September 30, 2014, the Bank sold loans to the Purchasers in the amount of $ 28,871 in principal and $ 542 in accrued interest income. During the nine months ended September 30, 2015, the Bank sold loans to the Purchasers in the amount of $21,109 in principal and $438 in accrued interest income. During the nine months ended September 30, 2014, the Bank sold loans to the Purchasers in the amount of $794,870 in principal and $26,339 in accrued interest income. There was no gain as a result of the loans sold to the Purchasers in the three months ended September 30, 2015 and September 30, 2014. Total write-downs to fair value for loans sold with a fair value lower than par totaled $1,871 and $4,571 in the three months ended September 30, 2015 and 2014, respectively. There was no gain as a result of the loans sold in the nine months ended September 30, 2015. The gain resulting from loans sold was $ 35,848 in the nine months ended September 30, 2014. Total write-downs to fair value for loans sold with a fair value lower than par totaled $ 5,573 and $ 51,001 in the nine months ended September 30, 2015 and September 30, 2014, respectively. Navient is the servicer for all of these loans. |
Regulatory Capital
Regulatory Capital | 9 Months Ended |
Sep. 30, 2015 | |
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. As of the first quarter 2015, the Bank was required by federal banking authorities to report regulatory capital and ratios based on the U.S. Basel III rule. U.S. Basel III implemented changes to capital, risk-weighted assets, and “well capitalized” definitions and added a reporting requirement of Common Equity Tier 1 Capital (to risk-weighted assets). Regulatory capital reported as of December 31, 2014 was calculated according to regulatory guidelines in effect at that date. “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, Common Equity Tier I Capital to risk-weighted assets, and Tier I Capital to average assets, as defined by the regulation. The following amounts and ratios are based upon the Bank's assets. Well Capitalized Regulatory Requirements Amount Ratio Amount Ratio As of September 30, 2015: Tier I Capital (to Average Assets) $ 1,639,235 12.2 % $ 674,490 > 5.0 % Tier I Capital (to Risk-Weighted Assets) $ 1,639,235 13.3 % $ 989,333 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 1,743,438 14.1 % $ 1,236,667 > 10.0 % Common Equity Tier I Capital (to Risk-Weighted Assets) $ 1,639,235 13.3 % $ 803,833 > 6.5 % As of December 31, 2014: Tier I Capital (to Average Assets) $ 1,413,988 11.5 % $ 614,709 > 5.0 % Tier I Capital (to Risk-Weighted Assets) $ 1,413,988 15.0 % $ 565,148 > 6.0 % Total Capital (to Risk-Weighted Assets) $ 1,497,830 15.9 % $ 941,913 > 10.0 % Bank Dividends The Bank is chartered under the laws of the State of Utah and its deposits are insured by the Federal Deposit Insurance Corporation (“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 dividends, the Bank’s capital and surplus would not be impaired. The Bank paid no dividends for the three and nine months ended September 30, 2015 and September 30, 2014. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 9 Months Ended |
Sep. 30, 2015 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Commitments When we approve a Private Education Loan at the beginning of an academic year, that approval may cover the borrowing for the entire academic year. As such, we do not always disburse the full amount of the loan at the time of origination but instead have a commitment to fund a portion of the loan at a later date (usually at the start of the second semester or subsequent trimesters). At September 30, 2015, we had $1.7 billion of outstanding contractual loan commitments which we expect to fund during the remainder of the 2015/2016 academic year. Regulatory Matters At the time of this filing, the Bank remains subject to the consent order (the “2014 FDIC Order”) relating to the settlement of previously disclosed regulatory matters with the FDIC. Specifically, on May 13, 2014, the Bank reached settlements with the FDIC and the Department of Justice (“DOJ”) regarding disclosures and assessments of certain late fees, as well as compliance with the Servicemembers’ Civil Relief Act (“SCRA”). The order issued by the DOJ (the “DOJ Order”) was approved by the U.S. District Court for the District of Delaware on September 29, 2014. Under the 2014 FDIC 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. As required by the 2014 FDIC Order and the DOJ Order, the Bank has now implemented new SCRA policies, procedures and training, has updated billing statement disclosures, and is taking additional steps to ensure its third-party service providers are also fully compliant in these areas. In 2014, we engaged a third-party firm to conduct independent audits of certain key consumer protection processes and procedures, including our compliance management system. To date, we have received no high-risk findings. In 2015, the third-party firm is continuing to conduct additional independent audits over the remainder of those processes and procedures. Required restitution activities under the 2014 FDIC and DOJ Orders are well under way. Applicable late fees were credited to eligible customers with open accounts in October 2014 and the mailing of restitution checks to all other eligible customers is ongoing. Checks for payment of SCRA benefits and related compensation, as determined by the DOJ, began mailing in June 2015. Under the terms of the Separation and Distribution Agreement, Navient remains 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. 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. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event On October 21, 2015, we announced plans to sell approximately $750 million of Private Education Loans through a term ABS transaction to qualified institutional buyers. The transaction will remove the principal balance of the loans backing the securitization trust from our balance sheet on the settlement date. We will continue to service the loans after they are transferred to the securitization trust. We expect to sell these loans at an approximate 8 percent premium and we expect to record a pre-tax gain of approximately $59 million on the sale, net of estimated closing adjustments and transaction costs. The transaction is expected to settle on or about October 27, 2015, and will be reflected in our fourth quarter 2015 results. |
Significant Accounting Polici23
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2015 | |
Accounting Policies [Abstract] | |
Basis of Presentation | The accompanying unaudited, consolidated financial statements of SLM Corporation (“we,” “us,” “our,” “Sallie Mae,” or the “Company”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all the information and footnotes required by GAAP for complete consolidated financial statements. 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. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and nine months ended September 30, 2015 are not necessarily indicative of the results for the year ending December 31, 2015 or for any other period. These unaudited financial statements should be read in conjunction with the audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2014 (the “2014 Form 10-K”). On April 30, 2014, we completed our plan to legally 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. For periods before the Spin-Off, the 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 carved-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, the balances before that date include the carved-out financial results. |
Consolidation | The consolidated financial statements include the accounts of the Company and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. |
Restricted Cash and Investments | Restricted cash and investments primarily includes amounts held in student loan securitization trusts and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the trust assets and when principal and interest is paid on trust liabilities. |
Recently Issued Accounting Pronouncements | On February 18, 2015, the FASB issued Accounting Standards Update (“ASU”) No. 2015-02, “Consolidation (Topic 810): Amendments to the Consolidation Analysis,” which amends the current consolidation guidance. The amendments reduce the number of consolidation models through the elimination of the indefinite deferral of ASC 810 and place more emphasis on risk of loss when determining a controlling financial interest. The standard is effective January 1, 2016, with early adoption permitted during an interim period in fiscal year 2015. In the third quarter of 2015, we elected to early adopt the new accounting guidance retrospectively to July 1, 2015. The early adoption of this standard had no impact on our consolidated financial statements. |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Loans held for investment | Loans held for investment are summarized as follows: September 30, December 31, 2015 2014 Private Education Loans $ 10,840,261 $ 8,311,376 Deferred origination costs 26,283 13,845 Allowance for loan losses (100,033 ) (78,574 ) Total Private Education Loans, net 10,766,511 8,246,647 FFELP Loans 1,143,595 1,264,807 Unamortized acquisition costs, net 3,212 3,600 Allowance for loan losses (4,170 ) (5,268 ) Total FFELP Loans, net 1,142,637 1,263,139 Loans held for investment, net $ 11,909,148 $ 9,509,786 The estimated weighted average life of education loans in our portfolio was approximately 6.3 years and 6.2 years at September 30, 2015 and December 31, 2014, respectively. The average balance and the respective weighted average interest rates of education loans in our portfolio are summarized as follows: Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 9,869,025 7.87 % $ 7,407,774 8.20 % $ 9,563,290 7.96 % $ 7,394,985 8.19 % FFELP Loans 1,161,288 3.27 1,339,748 3.23 1,196,491 3.22 1,373,945 3.25 Total portfolio $ 11,030,313 $ 8,747,522 $ 10,759,781 $ 8,768,930 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Receivables [Abstract] | |
Allowance for Credit Losses and Recorded Investments in Loans | Allowance for Loan Losses Metrics Allowance for Loan Losses Three Months Ended September 30, 2015 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 4,556 $ 87,310 $ 91,866 Total provision 143 27,354 27,497 Net charge-offs: Charge-offs (529 ) (14,121 ) (14,650 ) Recoveries — 1,361 1,361 Net charge-offs (529 ) (12,760 ) (13,289 ) Loan sales (1) — (1,871 ) (1,871 ) Ending Balance $ 4,170 $ 100,033 $ 104,203 Allowance: Ending balance: individually evaluated for impairment $ — $ 43,001 $ 43,001 Ending balance: collectively evaluated for impairment $ 4,170 $ 57,032 $ 61,202 Loans: Ending balance: individually evaluated for impairment $ — $ 231,286 $ 231,286 Ending balance: collectively evaluated for impairment $ 1,143,595 $ 10,608,975 $ 11,752,570 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.25 % 0.83 % Allowance as a percentage of the ending total loan balance 0.36 % 0.92 % Allowance as a percentage of the ending loans in repayment (2) 0.50 % 1.50 % Allowance coverage of net charge-offs (annualized) 1.97 1.96 Ending total loans, gross $ 1,143,595 $ 10,840,261 Average loans in repayment (2) $ 839,090 $ 6,118,678 Ending loans in repayment (2) $ 836,585 $ 6,657,228 ____________ (1) Represents fair value write-downs on loans sold. (2) Loans in repayment include loans making interest only and fixed payments as well as loans that have entered full principal and interest repayment status. Allowance for Loan Losses Three Months Ended September 30, 2014 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 6,212 $ 54,315 $ 60,527 Total provision 291 14,607 14,898 Net charge-offs: Charge-offs (761 ) (4,378 ) (5,139 ) Recoveries — — — Net charge-offs (761 ) (4,378 ) (5,139 ) Loan sales (1) — (4,571 ) (4,571 ) Ending Balance $ 5,742 $ 59,973 $ 65,715 Allowance: Ending balance: individually evaluated for impairment $ — $ 2,966 $ 2,966 Ending balance: collectively evaluated for impairment $ 5,742 $ 57,007 $ 62,749 Loans: Ending balance: individually evaluated for impairment $ — $ 13,115 $ 13,115 Ending balance: collectively evaluated for impairment $ 1,317,963 $ 7,816,305 $ 9,134,268 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.32 % 0.39 % Allowance as a percentage of the ending total loan balance 0.44 % 0.77 % Allowance as a percentage of the ending loans in repayment (2) 0.61 % 1.31 % Allowance coverage of net charge-offs (annualized) 1.89 3.42 Ending total loans, gross $ 1,317,963 $ 7,829,420 Average loans in repayment (2) $ 953,620 $ 4,453,775 Ending loans in repayment (2) $ 945,230 $ 4,575,143 ____________ (1) Represents fair value write-downs on loans sold. (2) Loans in repayment include loans making interest only and fixed payments as well as loans that have entered full principal and interest repayment status. Allowance for Loan Losses Nine Months Ended September 30, 2015 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 5,268 $ 78,574 $ 83,842 Total provision 1,044 58,629 59,673 Net charge-offs: Charge-offs (2,142 ) (36,127 ) (38,269 ) Recoveries — 4,529 4,529 Net charge-offs (2,142 ) (31,598 ) (33,740 ) Loan sales (1) — (5,572 ) (5,572 ) Ending Balance $ 4,170 $ 100,033 $ 104,203 Allowance: Ending balance: individually evaluated for impairment $ — $ 43,001 $ 43,001 Ending balance: collectively evaluated for impairment $ 4,170 $ 57,032 $ 61,202 Loans: Ending balance: individually evaluated for impairment $ — $ 231,286 $ 231,286 Ending balance: collectively evaluated for impairment $ 1,143,595 $ 10,608,975 $ 11,752,570 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.33 % 0.72 % Allowance as a percentage of the ending total loan balance 0.36 % 0.92 % Allowance as a percentage of the ending loans in repayment (2) 0.50 % 1.50 % Allowance coverage of net charge-offs (annualized) 1.46 2.37 Ending total loans, gross $ 1,143,595 $ 10,840,261 Average loans in repayment (2) $ 868,649 $ 5,848,345 Ending loans in repayment (2) $ 836,585 $ 6,657,228 ____________ (1) Represents fair value write-downs on loans sold. (2) Loans in repayment include loans making interest only and fixed payments as well as loans that have entered full principal and interest repayment status. Allowance for Loan Losses Nine Months Ended September 30, 2014 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 6,318 $ 61,763 $ 68,081 Total provision 1,482 53,589 55,071 Charge-offs (2,058 ) (4,378 ) (6,436 ) Loan sales (1) — (51,001 ) (51,001 ) Ending Balance $ 5,742 $ 59,973 $ 65,715 Allowance: Ending balance: individually evaluated for impairment $ — $ 2,966 $ 2,966 Ending balance: collectively evaluated for impairment $ 5,742 $ 57,007 $ 62,749 Loans: Ending balance: individually evaluated for impairment $ — $ 13,115 $ 13,115 Ending balance: collectively evaluated for impairment $ 1,317,963 $ 7,816,305 $ 9,134,268 Charge-offs as a percentage of average loans in repayment (annualized) (2) 0.28 % 0.13 % Allowance as a percentage of the ending total loan balance 0.44 % 0.77 % Allowance as a percentage of the ending loans in repayment (2) 0.61 % 1.31 % Allowance coverage of charge-offs (annualized) 2.09 10.27 Ending total loans, gross $ 1,317,963 $ 7,829,420 Average loans in repayment (2) $ 980,733 $ 4,408,852 Ending loans in repayment (3) $ 945,230 $ 4,575,143 ____________ (1) Represents fair value write-downs on loans sold. (2) Loans in repayment include loans making interest only and fixed payments as well as loans that have entered full principal and interest repayment status. |
Impaired Financing Receivables | At September 30, 2015 and December 31, 2014, all 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 September 30, 2015 TDR Loans $ 234,360 $ 231,286 $ 43,001 December 31, 2014 TDR Loans $ 60,278 $ 59,402 $ 9,815 |
Average Recorded Investment And Interest Income Recognized For Troubled Debt Restructuring Loans | The following table provides the average recorded investment and interest income recognized for our TDR loans. Three Months Ended Three Months Ended September 30, 2015 September 30, 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 210,039 $ 4,198 $ 8,740 $ 129 Nine Months Ended Nine Months Ended September 30, 2015 September 30, 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 150,240 $ 9,314 $ 3,958 $ 160 |
Age Analysis of Past Due Loans Delinquencies | The following tables provide information regarding the loan status of our Private Education Loans and the aging of our past due Private Education Loans. Loans in repayment include loans making interest only and fixed payments as well as loans that have entered full principal and interest repayment status. Private Education Loans September 30, December 31, 2015 2014 Balance % Balance % Loans in-school/grace/deferment (1) $ 3,971,392 $ 3,027,143 Loans in forbearance (2) 211,641 135,018 Loans in repayment and percentage of each status: Loans current 6,529,855 98.1 % 5,045,600 98.0 % Loans delinquent 31-60 days (3) 79,794 1.2 63,873 1.2 Loans delinquent 61-90 days (3) 34,743 0.5 29,041 0.6 Loans delinquent greater than 90 days (3) 12,836 0.2 10,701 0.2 Total loans in repayment 6,657,228 100.0 % 5,149,215 100.0 % Total loans, gross 10,840,261 8,311,376 Deferred origination costs 26,283 13,845 Total loans 10,866,544 8,325,221 Allowance for loan losses (100,033 ) (78,574 ) Total loans, net $ 10,766,511 $ 8,246,647 Percentage of loans in repayment 61.4 % 62.0 % Delinquencies as a percentage of loans in repayment 1.9 % 2.0 % Loans in forbearance as a percentage of loans in repayment and forbearance 3.1 % 2.6 % (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 of TDR loans and the aging of TDR loans that are past due. September 30, December 31, 2015 2014 Balance % Balance % TDR loans in in-school/grace/deferment (1) $ 4,940 $ 2,915 TDR loans in forbearance (2) 50,878 18,620 TDR loans in repayment and percentage of each status: Loans current 154,984 88.3 % 34,554 91.2 % Loans delinquent 31-60 days (3) 11,042 6.3 1,953 5.2 Loans delinquent 61-90 days (3) 6,336 3.6 983 2.6 Loans delinquent greater than 90 days (3) 3,106 1.8 377 1.0 Total TDR loans in repayment 175,468 100.0 % 37,867 100.0 % Total TDR loans, gross $ 231,286 $ 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 tables provides the amount of modified loans (which includes forbearance and reductions in interest rates) that became TDRs in the periods presented. Additionally, for the periods presented, the table summarizes charge-offs occurring in the TDR portfolio, as well as TDRs for which a payment default occurred in the relevant period presented and within 12 months of the loan first being designated as a TDR. We define payment default as 60 days past due for this disclosure. Three Months Ended Three Months Ended September 30, 2015 September 30, 2014 Modified Loans (1) Charge-offs Payment- Default Modified Loans (1) Charge-offs Payment- Default TDR Loans $ 49,975 $ 3,456 $ 16,719 $ 7,840 $ 87 $ 252 Nine Months Ended Nine Months Ended September 30, 2015 September 30, 2014 Modified Loans (1) Charge-offs Payment- Default Modified Loans (1) Charge-offs Payment- Default TDR Loans $ 189,066 $ 5,845 $ 29,895 $ 14,880 $ 87 $ 320 _____ (1) Represents the principal balance of loans that have been modified during the period and resulted in a TDR. |
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. Private Education Loans Credit Quality Indicators September 30, 2015 December 31, 2014 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance Cosigners: With cosigner $ 9,748,371 90 % $ 7,465,339 90 % Without cosigner 1,091,890 10 846,037 10 Total $ 10,840,261 100 % $ 8,311,376 100 % FICO at Origination: Less than 670 $ 706,688 6 % $ 558,801 7 % 670-699 1,582,381 15 1,227,860 15 700-749 3,470,300 32 2,626,238 32 Greater than or equal to 750 5,080,892 47 3,898,477 46 Total $ 10,840,261 100 % $ 8,311,376 100 % Seasoning (2) : 1-12 payments $ 3,575,055 33 % $ 2,373,117 29 % 13-24 payments 1,729,120 16 1,532,042 18 25-36 payments 871,590 8 755,143 9 37-48 payments 411,596 4 411,493 5 More than 48 payments 281,508 2 212,438 3 Not yet in repayment 3,971,392 37 3,027,143 36 Total $ 10,840,261 100 % $ 8,311,376 100 % (1) Balance represents gross Private Education Loans. (2) Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due. |
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 Receivable Greater Than 90 Days Past Due Allowance for Uncollectible Interest September 30, 2015 $ 606,218 $ 489 $ 2,979 December 31, 2014 $ 445,710 $ 443 $ 3,517 |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Banking and Thrift [Abstract] | |
Schedule of Deposits | The following table summarizes total deposits at September 30, 2015 and December 31, 2014. September 30, December 31, 2015 2014 Deposits - interest bearing $ 10,610,592 $ 10,539,953 Deposits - non interest bearing 287 602 Total deposits $ 10,610,879 $ 10,540,555 |
Interest Bearing Deposits | Interest bearing deposits at September 30, 2015 and December 31, 2014 are summarized as follows: September 30, 2015 December 31, 2014 Amount Qtr.-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 4,436,095 1.18 % $ 4,527,448 1.15 % Savings 665,941 0.82 703,687 0.81 Certificates of deposit 5,508,556 0.99 5,308,818 1.00 Deposits - interest bearing $ 10,610,592 $ 10,539,953 ____________ (1) Includes the effect of interest rate swaps in effective hedge relationships. |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | Outstanding borrowings consist of secured borrowings issued through our term asset backed securitization (“ABS”) program and our asset backed commercial paper (“ABCP”) funding facility. The following table summarizes our secured borrowings at September 30, 2015. We had no secured borrowings outstanding at December 31, 2014. September 30, 2015 Short-Term Long-Term Total Secured borrowings: Private Education Loan term securitization $ — $ 593,687 $ 593,687 ABCP borrowings 710,005 — 710,005 Total $ 710,005 $ 593,687 $ 1,303,692 |
Schedule of Securities Financing Transactions | On-Balance Sheet Term Securitizations Issue Date Issued Total Issued To Third Parties Weighted Average Cost of Funds (1) Weighted Average Life Private Education: 2015-B July 2015 $ 630,800 1 month LIBOR plus 1.53% 4.82 Total notes issued in 2015 $ 630,800 Total loan amount securitized in on-balance sheet term securitizations in 2015 $ 745,580 ____________ (1) Represents LIBOR equivalent cost of funds for floating and fixed rate bonds, excluding issuance costs. |
Schedule of Variable Interest Entities | We consolidate our financing entities that are variable interest entities (“VIEs”) as a result of our being the entities’ primary beneficiary. As a result, these financing VIEs are accounted for as secured borrowings. We consolidate the following financing VIEs as of September 30, 2015: September 30, 2015 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets Total Secured borrowings: Private Education Loan term securitization $ — $ 593,687 $ 593,687 $ 692,379 $ 8,135 $ 49,717 $ 750,231 ABCP borrowings 710,005 — 710,005 901,515 10,070 54,297 965,882 Total $ 710,005 $ 593,687 $ 1,303,692 $ 1,593,894 $ 18,205 $ 104,014 $ 1,716,113 |
Derivative Financial Instrume28
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Impact of Derivatives on the Consolidated Balance Sheet | Impact of Derivatives on the Consolidated Balance Sheet Cash Flow Hedges Fair Value Hedges Trading Total September 30, December 31, September 30, December 31, September 30, December 31, September 30, December 31, 2015 2014 2015 2014 2015 2014 2015 2014 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ — $ — $ 36,919 $ 5,012 $ 1,827 $ 226 $ 38,746 $ 5,238 Derivative Liabilities: (2) Interest rate swaps Interest rate (40,855 ) (21,435 ) — (5,883 ) — (1,370 ) (40,855 ) (28,688 ) Total net derivatives $ (40,855 ) $ (21,435 ) $ 36,919 $ (871 ) $ 1,827 $ (1,144 ) $ (2,109 ) $ (23,450 ) ___________ (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 September 30, December 31, September 30, December 31, 2015 2014 2015 2014 Gross position $ 38,746 $ 5,238 $ (40,855 ) $ (28,688 ) Impact of master netting agreement (11,253 ) (4,045 ) 11,253 4,045 Derivative values with impact of master netting agreements (as carried on balance sheet) 27,493 1,193 (29,602 ) (24,643 ) Cash collateral (held) pledged (1) (14,617 ) (900 ) 47,604 72,478 Net position $ 12,876 $ 293 $ 18,002 $ 47,835 (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 September 30, December 31, September 30, December 31, 2015 2014 2015 2014 Gross position $ 38,746 $ 5,238 $ (40,855 ) $ (28,688 ) Impact of master netting agreement (11,253 ) (4,045 ) 11,253 4,045 Derivative values with impact of master netting agreements (as carried on balance sheet) 27,493 1,193 (29,602 ) (24,643 ) Cash collateral (held) pledged (1) (14,617 ) (900 ) 47,604 72,478 Net position $ 12,876 $ 293 $ 18,002 $ 47,835 (1) Cash collateral amount calculations include outstanding accrued interest payable/receivable. |
Offsetting Liabilities | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities September 30, December 31, September 30, December 31, 2015 2014 2015 2014 Gross position $ 38,746 $ 5,238 $ (40,855 ) $ (28,688 ) Impact of master netting agreement (11,253 ) (4,045 ) 11,253 4,045 Derivative values with impact of master netting agreements (as carried on balance sheet) 27,493 1,193 (29,602 ) (24,643 ) Cash collateral (held) pledged (1) (14,617 ) (900 ) 47,604 72,478 Net position $ 12,876 $ 293 $ 18,002 $ 47,835 (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 September 30, December 31, September 30, December 31, September 30, December 31, September 30, December 31, 2015 2014 2015 2014 2015 2014 2015 2014 Notional Values Interest rate swaps $ 1,110,549 $ 1,106,920 $ 2,957,443 $ 3,044,492 $ 836,512 $ 973,539 $ 4,904,504 $ 5,124,951 |
Derivative Instruments, Gain (Loss) | Impact of Derivatives on the Consolidated Statements of Income Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Fair Value Hedges Interest rate swaps: Hedge ineffectiveness gains (losses) recorded in earnings (1) $ (1,843 ) $ 1,238 $ (929 ) $ 1,488 Realized gains recorded in interest expense 7,531 3,835 22,512 14,081 Total $ 5,688 $ 5,073 $ 21,583 $ 15,569 Cash Flow Hedges Interest rate swaps: Hedge ineffectiveness gains (losses) recorded in earnings (1) $ (273 ) $ (303 ) $ (542 ) $ (303 ) Realized losses recorded in interest expense (5,411 ) (3,587 ) (16,157 ) (3,587 ) Total $ (5,684 ) $ (3,890 ) $ (16,699 ) $ (3,890 ) Trading Interest rate swaps: Interest reclassification $ 853 $ (1,170 ) $ 2,846 $ (3,137 ) Change in fair value of future interest payments recorded in earnings 716 5,636 2,972 (2,870 ) Total (1) 1,569 4,466 5,818 (6,007 ) Total $ 1,573 $ 5,649 $ 10,702 $ 5,672 ________ (1) Amounts included in “(losses) gains on derivatives and hedging activities, net” in the consolidated statements of income. |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | Impact of Derivatives on the Statements of Changes in Stockholders' Equity Three Months Ended Nine Months Ended September 30, September 30, 2015 2014 2015 2014 Amount of loss recognized in other comprehensive income $ (27,162 ) $ (5,470 ) $ (35,441 ) $ (5,470 ) Less: amount of loss reclassified in interest expense (1) 5,411 3,587 16,157 3,587 Total change in other comprehensive income for unrealized losses on derivatives $ (21,751 ) $ (1,883 ) $ (19,284 ) $ (1,883 ) ___________ (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) | 9 Months Ended |
Sep. 30, 2015 | |
Equity [Abstract] | |
Schedule of Common Share Repurchases | The following table summarizes our common share repurchases and issuances. Three Months Ended September 30, Nine Months Ended September 30, (Shares and per share amounts in actuals) 2015 2014 2015 2014 Shares repurchased related to employee stock-based compensation plans (1)(2) 136,173 356,622 2,900,266 715,393 Average purchase price per share $ 8.88 $ 8.68 $ 9.76 $ 8.68 Common shares issued (3) 361,779 584,787 5,569,853 1,089,716 __________________ (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) At the present time, we do not have a publicly announced repurchase plan or program. (3) Common shares issued under our various compensation and benefit plans. |
Schedule of Net Transfers (to) from Navient | The components of the net transfers (to)/from the entity that is now a subsidiary of Navient for the nine months ended September 30, 2014 are summarized below: Nine Months Ended September 30, 2014 Capital contributions: Loan origination activities $ 32,452 Loan sales 45 Corporate overhead activities 21,216 Other 492,368 Total capital contributions 546,081 Corporate push-down 4,977 Net change in income tax accounts 15,659 Net change in receivable/payable (87,277 ) Other (31 ) Total net transfers from the entity that is now a subsidiary of Navient $ 479,409 |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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. Three Months Ended Nine Months Ended September 30, September 30, (In thousands, except per share data) 2015 2014 2015 2014 Numerator: Net income attributable to SLM Corporation $ 45,724 $ 82,926 $ 184,439 $ 174,502 Preferred stock dividends 4,913 4,850 14,606 8,078 Net income attributable to SLM Corporation common stock $ 40,811 $ 78,076 $ 169,833 $ 166,424 Denominator: Weighted average shares used to compute basic EPS 426,019 423,079 425,384 424,187 Effect of dilutive securities: Dilutive effect of stock options, restricted stock and restricted stock units and Employee Stock Purchase Plan ("ESPP") (1)(2) 6,528 8,525 7,147 8,137 Weighted average shares used to compute diluted EPS 432,547 431,604 432,531 432,324 Basic earnings per common share attributable to SLM Corporation $ 0.10 $ 0.18 $ 0.40 $ 0.39 Diluted earnings per common share attributable to SLM Corporation $ 0.09 $ 0.18 $ 0.39 $ 0.38 _________________ (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method. (2) For the three months ended September 30, 2015 and 2014, securities covering approximately 2 million and 3 million shares, respectively, and for the nine months ended September 30, 2015 and 2014, securities covering approximately 2 million and 3 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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 September 30, 2015 December 31, 2014 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Mortgage-backed securities $ — $ 190,944 $ — $ 190,944 $ — $ 168,934 $ — $ 168,934 Derivative instruments — 38,746 — 38,746 — 5,238 — 5,238 Total $ — $ 229,690 $ — $ 229,690 $ — $ 174,172 $ — $ 174,172 Liabilities Derivative instruments $ — $ (40,855 ) $ — $ (40,855 ) $ — $ (28,688 ) $ — $ (28,688 ) Total $ — $ (40,855 ) $ — $ (40,855 ) $ — $ (28,688 ) $ — $ (28,688 ) |
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. September 30, 2015 December 31, 2014 Fair Value Carrying Value Difference Fair Value Carrying Value Difference Earning assets Loans held for investment, net $ 12,837,892 $ 11,909,148 $ 928,744 $ 10,228,399 $ 9,509,786 $ 718,613 Cash and cash equivalents 1,281,797 1,281,797 — 2,359,780 2,359,780 — Available-for-sale investments 190,944 190,944 — 168,934 168,934 — Accrued interest receivable 634,423 634,423 — 469,697 469,697 — Tax indemnification receivable 200,704 200,704 — 240,311 240,311 — Derivative instruments 38,746 38,746 — 5,238 5,238 — Total earning assets $ 15,184,506 $ 14,255,762 $ 928,744 $ 13,472,359 $ 12,753,746 $ 718,613 Interest-bearing liabilities Money-market and savings accounts $ 5,102,323 $ 5,102,323 $ — $ 5,231,736 $ 5,231,736 $ — Certificates of deposit 5,487,525 5,508,556 21,031 5,313,645 5,308,818 (4,827 ) Short-term borrowings 710,005 710,005 — — — — Long-term borrowings 583,314 593,687 10,373 — — — Accrued interest payable 23,309 23,309 — 16,082 16,082 — Derivative instruments 40,855 40,855 — 28,688 28,688 — Total interest-bearing liabilities $ 11,947,331 $ 11,978,735 $ 31,404 $ 10,590,151 $ 10,585,324 $ (4,827 ) Excess of net asset fair value over carrying value $ 960,148 $ 713,786 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 9 Months Ended |
Sep. 30, 2015 | |
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. Well Capitalized Regulatory Requirements Amount Ratio Amount Ratio As of September 30, 2015: Tier I Capital (to Average Assets) $ 1,639,235 12.2 % $ 674,490 > 5.0 % Tier I Capital (to Risk-Weighted Assets) $ 1,639,235 13.3 % $ 989,333 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 1,743,438 14.1 % $ 1,236,667 > 10.0 % Common Equity Tier I Capital (to Risk-Weighted Assets) $ 1,639,235 13.3 % $ 803,833 > 6.5 % As of December 31, 2014: Tier I Capital (to Average Assets) $ 1,413,988 11.5 % $ 614,709 > 5.0 % Tier I Capital (to Risk-Weighted Assets) $ 1,413,988 15.0 % $ 565,148 > 6.0 % Total Capital (to Risk-Weighted Assets) $ 1,497,830 15.9 % $ 941,913 > 10.0 % |
Significant Accounting Polici33
Significant Accounting Policies Significant Accounting Policies Detail (Details) | Apr. 30, 2014entity |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of publicly traded entities | 2 |
Loans Held for Investment - Add
Loans Held for Investment - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2015 | Dec. 31, 2014 | Jul. 01, 2006 | Jun. 30, 2006 | Sep. 30, 1993 | |
Receivables [Abstract] | |||||
Percent of Private Loans indexed to LIBOR | 82.00% | ||||
Tier 1 of government guarantee | 97.00% | 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 3 months 8 days | 6 years 2 months 8 days |
Loans Held for Investment - Stu
Loans Held for Investment - Student Loan Portfolio by Program (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Private Education Loans | $ 10,840,261 | $ 8,311,376 |
Deferred origination costs | 26,283 | 13,845 |
Allowance for loan losses | (100,033) | (78,574) |
Total Private Education Loans, net | 10,766,511 | 8,246,647 |
FFELP Loans | 1,143,595 | 1,264,807 |
Unamortized acquisition costs, net | 3,212 | 3,600 |
Allowance for loan losses | (4,170) | (5,268) |
Total FFELP Loans, net | 1,142,637 | 1,263,139 |
Loans held for investment, net | $ 11,909,148 | $ 9,509,786 |
Loans Held for Investment - S36
Loans Held for Investment - Student Loan Portfolio Average Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Receivables [Abstract] | ||||
Average Balance, Private Education Loans | $ 9,869,025 | $ 7,407,774 | $ 9,563,290 | $ 7,394,985 |
Average Balance FFELP Loans | 1,161,288 | 1,339,748 | 1,196,491 | 1,373,945 |
Average balance, total portfolio | $ 11,030,313 | $ 8,747,522 | $ 10,759,781 | $ 8,768,930 |
Weighted Average Interest Rate, Private Education Loans | 7.87% | 8.20% | 7.96% | 8.19% |
Weighted Average Interest Rate FFELP loans | 3.27% | 3.23% | 3.22% | 3.25% |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance for Credit Losses and Recorded Investments in Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Allowance for Loan Losses | ||||
Beginning balance | $ 91,866 | $ 60,527 | $ 83,842 | $ 68,081 |
Total provision | 27,497 | 14,898 | 59,673 | 55,071 |
Net charge-offs: | ||||
Charge-offs | (14,650) | (5,139) | (38,269) | (6,436) |
Recoveries | 1,361 | 0 | 4,529 | |
Net charge-offs | (13,289) | (5,139) | (33,740) | |
Loan sales | (1,871) | (4,571) | (5,572) | (51,001) |
Ending Balance | 104,203 | 65,715 | 104,203 | 65,715 |
Allowance: | ||||
Ending balance: individually evaluated for impairment | 43,001 | 2,966 | 43,001 | 2,966 |
Ending balance: collectively evaluated for impairment | 61,202 | 62,749 | 61,202 | 62,749 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 231,286 | 13,115 | 231,286 | 13,115 |
Ending balance: collectively evaluated for impairment | 11,752,570 | 9,134,268 | 11,752,570 | 9,134,268 |
FFELP Loans | ||||
Allowance for Loan Losses | ||||
Beginning balance | 4,556 | 6,212 | 5,268 | 6,318 |
Total provision | 143 | 291 | 1,044 | 1,482 |
Net charge-offs: | ||||
Charge-offs | (529) | (761) | (2,142) | (2,058) |
Recoveries | 0 | 0 | 0 | |
Net charge-offs | (529) | (761) | (2,142) | |
Loan sales | 0 | 0 | 0 | 0 |
Ending Balance | 4,170 | 5,742 | 4,170 | 5,742 |
Allowance: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 4,170 | 5,742 | 4,170 | 5,742 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | $ 1,143,595 | $ 1,317,963 | $ 1,143,595 | $ 1,317,963 |
Net charge-offs as a percentage of average loans in repayment (annualized) | 0.25% | 0.32% | 0.33% | 0.28% |
Allowance as a percentage of the ending total loan balance | 0.36% | 0.44% | 0.36% | 0.44% |
Allowance as a percentage of the ending loans in repayment | 0.50% | 0.61% | 0.50% | 0.61% |
Allowance coverage of net charge-offs (annualized) | 1.97 | 1.89 | 1.46 | 2.09 |
Ending total loans, gross | $ 1,143,595 | $ 1,317,963 | $ 1,143,595 | $ 1,317,963 |
Average loans in repayment | 839,090 | 953,620 | 868,649 | 980,733 |
Ending loans in repayment | 836,585 | 945,230 | 836,585 | 945,230 |
Private Education Loans | ||||
Allowance for Loan Losses | ||||
Beginning balance | 87,310 | 54,315 | 78,574 | 61,763 |
Total provision | 27,354 | 14,607 | 58,629 | 53,589 |
Net charge-offs: | ||||
Charge-offs | (14,121) | (4,378) | (36,127) | (4,378) |
Recoveries | 1,361 | 0 | 4,529 | |
Net charge-offs | (12,760) | (4,378) | (31,598) | |
Loan sales | (1,871) | (4,571) | (5,572) | (51,001) |
Ending Balance | 100,033 | 59,973 | 100,033 | 59,973 |
Allowance: | ||||
Ending balance: individually evaluated for impairment | 43,001 | 2,966 | 43,001 | 2,966 |
Ending balance: collectively evaluated for impairment | 57,032 | 57,007 | 57,032 | 57,007 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 231,286 | 13,115 | 231,286 | 13,115 |
Ending balance: collectively evaluated for impairment | $ 10,608,975 | $ 7,816,305 | $ 10,608,975 | $ 7,816,305 |
Net charge-offs as a percentage of average loans in repayment (annualized) | 0.83% | 0.39% | 0.72% | 0.13% |
Allowance as a percentage of the ending total loan balance | 0.92% | 0.77% | 0.92% | 0.77% |
Allowance as a percentage of the ending loans in repayment | 1.50% | 1.31% | 1.50% | 1.31% |
Allowance coverage of net charge-offs (annualized) | 1.96 | 3.42 | 2.37 | 10.27 |
Ending total loans, gross | $ 10,840,261 | $ 7,829,420 | $ 10,840,261 | $ 7,829,420 |
Average loans in repayment | 6,118,678 | 4,453,775 | 5,848,345 | 4,408,852 |
Ending loans in repayment | $ 6,657,228 | $ 4,575,143 | $ 6,657,228 | $ 4,575,143 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2015 | Dec. 31, 2014 | Jul. 01, 2006 | |
Receivables [Abstract] | |||
Forbearance period after grace period | 6 months | ||
Period after grace period for forbearance allowance | 9 months | ||
Period of forbearance within 24-month period to be classified as TDR | 3 months | ||
Percentage of loans granted forbearance qualified as TDR | 22.00% | 10.00% | |
Troubled debt restructuring | $ 251 | ||
Criteria for loans to be considered as nonperforming | 90 days | ||
Tier 1 of government guarantee | 97.00% | 97.00% | |
TDR payment default period | 60 days | ||
Ffelp loans | $ 700 | ||
Percentage of FFELP rehabilitation loans | 61.00% | 62.00% | |
Period of loans past due that have accrued interest | 90 days |
Allowance for Loan Losses - Rec
Allowance for Loan Losses - Recorded Investment, Unpaid Principal Balance and Related Allowance for TDR Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Recorded Investment | $ 234,360 | $ 60,278 |
Unpaid Principal Balance | 231,286 | 59,402 |
Allowance | $ 43,001 | $ 9,815 |
Allowance for Loan Losses - Ave
Allowance for Loan Losses - Average Recorded Investment and Interest Income Recognized for TDR (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Receivables [Abstract] | ||||
Average Recorded Investment | $ 210,039 | $ 8,740 | $ 150,240 | $ 3,958 |
Interest Income Recognized | $ 4,198 | $ 129 | $ 9,314 | $ 160 |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loan Status and Aging of Past Due TDR Loans (Details) - Troubled Debt Restructured Loans - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2015 | Dec. 31, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDR loans in in-school/grace/deferment | $ 4,940 | $ 2,915 |
TDR loans in forbearance | 50,878 | 18,620 |
TDR loans in repayment and percentage of each status: | ||
Loans current | 154,984 | 34,554 |
Total TDR loans in repayment | 175,468 | 37,867 |
Total TDR loans, gross | $ 231,286 | $ 59,402 |
Loans current, in percentage | 88.30% | 91.20% |
Total TDR loans in repayment, in percentage | 100.00% | 100.00% |
Loans delinquent 31-60 days | ||
TDR loans in repayment and percentage of each status: | ||
Loans delinquent | $ 11,042 | $ 1,953 |
Loans delinquent, in percentage | 6.30% | 5.20% |
Loans delinquent 61-90 days | ||
TDR loans in repayment and percentage of each status: | ||
Loans delinquent | $ 6,336 | $ 983 |
Loans delinquent, in percentage | 3.60% | 2.60% |
Loans delinquent greater than 90 days | ||
TDR loans in repayment and percentage of each status: | ||
Loans delinquent | $ 3,106 | $ 377 |
Loans delinquent, in percentage | 1.80% | 1.00% |
Allowance for Loan Losses - Mod
Allowance for Loan Losses - Modified Loan Accounts for TDR (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Receivables [Abstract] | ||||
Modified Loans | $ 49,975 | $ 7,840 | $ 189,066 | $ 14,880 |
Charge-offs | 3,456 | 87 | 5,845 | 87 |
Payment-Default | $ 16,719 | $ 252 | $ 29,895 | $ 320 |
Allowance for Loan Losses - Pri
Allowance for Loan Losses - Private Education Loan Portfolio Stratified by Key Credit Quality Indicators (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 10,840,261 | $ 8,311,376 |
Private Education Loans | Cosigners | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans with cosigner | 9,748,371 | 7,465,339 |
Private Education Loans without cosigner | 1,091,890 | 846,037 |
Total | $ 10,840,261 | $ 8,311,376 |
Private Education Loans with cosigner in percent | 90.00% | 90.00% |
Private Education Loans without cosigner in percent | 10.00% | 10.00% |
Total in percent | 100.00% | 100.00% |
Private Education Loans | FICO at Origination | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 10,840,261 | $ 8,311,376 |
Total in percent | 100.00% | 100.00% |
Private Education Loans | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 10,840,261 | $ 8,311,376 |
Total in percent | 100.00% | 100.00% |
Seasoning - based on monthly scheduled payments due from 1-12 payments | $ 3,575,055 | $ 2,373,117 |
Seasoning - based on monthly scheduled payments due from 13-24 payments | 1,729,120 | 1,532,042 |
Seasoning - based on monthly scheduled payments due from 25-36 payments | 871,590 | 755,143 |
Seasoning - based on monthly scheduled payments due from 37-48 payments | 411,596 | 411,493 |
Seasoning - based on monthly scheduled payments due from more than 48 payments | 281,508 | 212,438 |
Seasoning - based on monthly scheduled payments due from not yet in repayment | $ 3,971,392 | $ 3,027,143 |
Seasoning based on monthly scheduled payments due from 1-12 payments, in percent | 33.00% | 29.00% |
Seasoning based on monthly scheduled payments due from 13 - 24 payments, in percent | 16.00% | 18.00% |
Seasoning based on monthly scheduled payments due from 25 - 36 payments, in percent | 8.00% | 9.00% |
Seasoning based on monthly scheduled payments due from 37 - 48 payments, in percent | 4.00% | 5.00% |
Seasoning based on monthly scheduled payments due from more than 48 payments, in percent | 2.00% | 3.00% |
Seasoning - based on monthly scheduled payments due from not yet in repayment, in percent | 37.00% | 36.00% |
FICO score less than 670 | Private Education Loans | FICO at Origination | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 706,688 | $ 558,801 |
Total in percent | 6.00% | 7.00% |
FICO score 670-699 | Private Education Loans | FICO at Origination | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 1,582,381 | $ 1,227,860 |
Total in percent | 15.00% | 15.00% |
FICO score 700-749 | Private Education Loans | FICO at Origination | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 3,470,300 | $ 2,626,238 |
Total in percent | 32.00% | 32.00% |
FICO score greater than or equal to 750 | Private Education Loans | FICO at Origination | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 5,080,892 | $ 3,898,477 |
Total in percent | 47.00% | 46.00% |
Allowance for Loan Losses - Age
Allowance for Loan Losses - Age Analysis of Past Due Loans Delinquencies (Detail) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||||
Sep. 30, 2015 | Dec. 31, 2014 | Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | Dec. 31, 2013 | |
Loans in repayment and percentage of each status: | ||||||
Allowance for loan losses | $ (104,203) | $ (83,842) | $ (91,866) | $ (65,715) | $ (60,527) | $ (68,081) |
Private Education Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans in-school/grace/deferment | 3,971,392 | 3,027,143 | ||||
Loans in forbearance | 211,641 | 135,018 | ||||
Loans in repayment and percentage of each status: | ||||||
Loans current | 6,529,855 | 5,045,600 | ||||
Total loans in repayment | 6,657,228 | 5,149,215 | ||||
Total loans, gross | 10,840,261 | 8,311,376 | ||||
Deferred origination costs | 26,283 | 13,845 | ||||
Total loans | 10,866,544 | 8,325,221 | ||||
Allowance for loan losses | (100,033) | (78,574) | $ (87,310) | $ (59,973) | $ (54,315) | $ (61,763) |
Total loans, net | $ 10,766,511 | $ 8,246,647 | ||||
Loans current, in percentage | 98.10% | 98.00% | ||||
Total loans in repayment, in percentage | 100.00% | 100.00% | ||||
Percentage of loans in repayment | 61.40% | 62.00% | ||||
Delinquencies as a percentage of loans in repayment | 1.90% | 2.00% | ||||
Loans in forbearance as a percentage of loans in repayment and forbearance | 3.10% | 2.60% | ||||
Loans delinquent 31-60 days | Private Education Loans | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 79,794 | $ 63,873 | ||||
Loans delinquent, in percentage | 1.20% | 1.20% | ||||
Loans delinquent 61-90 days | Private Education Loans | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 34,743 | $ 29,041 | ||||
Loans delinquent, in percentage | 0.50% | 0.60% | ||||
Loans delinquent greater than 90 days | Private Education Loans | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 12,836 | $ 10,701 | ||||
Loans delinquent, in percentage | 0.20% | 0.20% |
Allowance for Loan Losses - Acc
Allowance for Loan Losses - Accrued Interest Receivable (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Receivables [Abstract] | ||
Total Interest Receivable | $ 606,218 | $ 445,710 |
Greater Than 90 Days Past Due | 489 | 443 |
Allowance for Uncollectible Interest | $ 2,979 | $ 3,517 |
Deposits - Summary (Details)
Deposits - Summary (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Banking and Thrift [Abstract] | ||
Deposits - interest bearing | $ 10,610,592 | $ 10,539,953 |
Deposits - non interest bearing | 287 | 602 |
Total deposits | $ 10,610,879 | $ 10,540,555 |
Deposits - Interest Bearing Dep
Deposits - Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Interest-bearing Deposit Liabilities, Domestic, by Component [Abstract] | ||
Money market | $ 4,436,095 | $ 4,527,448 |
Savings | 665,941 | 703,687 |
Certificates of deposit | 5,508,556 | 5,308,818 |
Deposits - interest bearing | $ 10,610,592 | $ 10,539,953 |
Weighted Average Stated Rate | ||
Money market | 1.18% | 1.15% |
Savings | 0.82% | 0.81% |
Certificates of deposit | 0.99% | 1.00% |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Banking and Thrift [Abstract] | ||
Deposits exceeding FDIC insurance limits | $ 194,714 | $ 253,953 |
Accrued interest on deposits | 22,637 | 16,082 |
Deposits - non interest bearing | $ 287 | $ 602 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | Jul. 30, 2015 | Dec. 19, 2014 | Sep. 30, 2015 | Dec. 31, 2014 | Apr. 23, 2015 |
Line of Credit Facility [Line Items] | |||||
Estimated weighted average life of student loans | 6 years 3 months 8 days | 6 years 2 months 8 days | |||
Short-term borrowings | $ 710,005,000 | $ 0 | |||
Uncommitted federal funds | 100,000 | ||||
Lendable value of collateral | 1,500,000,000 | $ 1,400,000,000 | |||
Private Education Loans | |||||
Line of Credit Facility [Line Items] | |||||
Outstanding amount of asset-backed loan | $ 714,000,000 | ||||
Sale of Private Education Loans | 631,000,000 | $ 738,000,000 | |||
Gross proceeds on securitization | $ 623,000,000 | ||||
Loans pledged as collateral | 692,000,000 | ||||
Class A and B Notes | |||||
Line of Credit Facility [Line Items] | |||||
Ownership interest as a percentage | 5.00% | ||||
Estimated weighted average life of student loans | 4 years 9 months 18 days | ||||
Ownership interest amount | $ 33,000,000 | ||||
Class C Notes | |||||
Line of Credit Facility [Line Items] | |||||
Ownership interest as a percentage | 100.00% | ||||
Ownership interest amount | $ 50,000,000 | ||||
Residual Certificates | |||||
Line of Credit Facility [Line Items] | |||||
Ownership interest as a percentage | 100.00% | ||||
ABCP borrowings | |||||
Line of Credit Facility [Line Items] | |||||
Short-term borrowings | 710,005,000 | ||||
Loans pledged as collateral | $ 902,000,000 | ||||
ABCP borrowings | Commercial Paper | |||||
Line of Credit Facility [Line Items] | |||||
Private asset backed commercial paper education loan funding facility | $ 750,000,000 | ||||
Ownership interest percentage in loan facility | 5.00% | ||||
Required ownership interest | $ 37,500,000 | ||||
Funds available for Private Education Loan originations | $ 712,500,000 | ||||
Financing cost percentage of unused borrowing capacity | 0.40% | ||||
LIBOR | Class A and B Notes | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 1.53% | ||||
LIBOR | ABCP borrowings | Commercial Paper | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.80% |
Borrowings - Company Borrowings
Borrowings - Company Borrowings (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Instrument [Line Items] | ||
Short Term | $ 710,005,000 | $ 0 |
Long Term | 593,687,000 | 0 |
Total | 1,303,692,000 | $ 0 |
Private Education Loan securitization | ||
Debt Instrument [Line Items] | ||
Short Term | 0 | |
Long Term | 593,687,000 | |
Total | 593,687,000 | |
ABCP borrowings | ||
Debt Instrument [Line Items] | ||
Short Term | 710,005,000 | |
Long Term | 0 | |
Total | $ 710,005,000 |
Borrowings - Securitizations (D
Borrowings - Securitizations (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2015 | Jul. 31, 2015 | |
Securities Financing Transaction [Line Items] | ||
Total bonds issued | $ 630,800 | |
Weighted Average Life | 4 years 8 months 55 days | |
Total loan amount securitized in 2015 | $ 745,580 | |
2015-B | ||
Securities Financing Transaction [Line Items] | ||
Total bonds issued | $ 630,800 | |
LIBOR | 2015-B | ||
Securities Financing Transaction [Line Items] | ||
Basis spread on variable rate | 1.53% |
Borrowings - Financing VIEs (De
Borrowings - Financing VIEs (Details) - USD ($) | Sep. 30, 2015 | Dec. 31, 2014 |
Debt Outstanding | ||
Short Term | $ 710,005,000 | $ 0 |
Long Term | 593,687,000 | 0 |
Total | 1,303,692,000 | 0 |
Carrying Amount of Assets Securing Debt Outstanding | ||
Restricted Cash | 25,605,000 | 4,804,000 |
Other Assets | 77,980,000 | $ 64,757,000 |
Private Education Loan securitization | ||
Debt Outstanding | ||
Short Term | 0 | |
Long Term | 593,687,000 | |
Total | 593,687,000 | |
ABCP borrowings | ||
Debt Outstanding | ||
Short Term | 710,005,000 | |
Long Term | 0 | |
Total | 710,005,000 | |
Variable Interest Entity, Primary Beneficiary | ||
Debt Outstanding | ||
Short Term | 710,005,000 | |
Long Term | 593,687,000 | |
Total | 1,303,692,000 | |
Carrying Amount of Assets Securing Debt Outstanding | ||
Loans | 1,593,894,000 | |
Restricted Cash | 18,205,000 | |
Other Assets | 104,014,000 | |
Total | 1,716,113,000 | |
Variable Interest Entity, Primary Beneficiary | Private Education Loan securitization | ||
Debt Outstanding | ||
Short Term | 0 | |
Long Term | 593,687,000 | |
Total | 593,687,000 | |
Carrying Amount of Assets Securing Debt Outstanding | ||
Loans | 692,379,000 | |
Restricted Cash | 8,135,000 | |
Other Assets | 49,717,000 | |
Total | 750,231,000 | |
Variable Interest Entity, Primary Beneficiary | ABCP borrowings | ||
Debt Outstanding | ||
Short Term | 710,005,000 | |
Long Term | 0 | |
Total | 710,005,000 | |
Carrying Amount of Assets Securing Debt Outstanding | ||
Loans | 901,515,000 | |
Restricted Cash | 10,070,000 | |
Other Assets | 54,297,000 | |
Total | $ 965,882,000 |
Private Education Loan Term S53
Private Education Loan Term Securitization (Details) - USD ($) $ in Millions | Jul. 30, 2015 | Apr. 23, 2015 | Sep. 30, 2015 |
Private Education Loans | |||
Line of Credit Facility [Line Items] | |||
Outstanding amount of asset-backed loan | $ 714 | ||
Loans pledged as collateral | $ 692 | ||
Sale of Private Education Loans | 631 | $ 738 | |
Gross proceeds on securitization | $ 623 | ||
Gain on sale of loans, net of costs and adjustments | $ 77 | ||
Percentage of premium on loan sale | 10.40% | ||
Class A and B Notes | |||
Line of Credit Facility [Line Items] | |||
Ownership interest as a percentage | 5.00% | ||
Class C Notes | |||
Line of Credit Facility [Line Items] | |||
Ownership interest as a percentage | 100.00% |
Derivative Financial Instrume54
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Derivative [Line Items] | ||
Net derivatives | $ 48,900 | $ 60,800 |
Cash collateral held | 14,617 | 900 |
Cash collateral pledged | 47,604 | $ 72,478 |
Chicago Mercantile Exchange and the London Clearing House | ||
Derivative [Line Items] | ||
Notional value | $ 4,000,000 |
Derivative Financial Instrume55
Derivative Financial Instruments - Impact of Derivatives on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 38,746 | $ 5,238 |
Derivative Liabilities | (40,855) | (28,688) |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 38,746 | 5,238 |
Derivative Liabilities | (40,855) | (28,688) |
Total net derivatives | (2,109) | (23,450) |
Interest rate swaps | Trading | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1,827 | 226 |
Derivative Liabilities | 0 | (1,370) |
Total net derivatives | 1,827 | (1,144) |
Interest rate swaps | Cash Flow | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | (40,855) | (21,435) |
Total net derivatives | (40,855) | (21,435) |
Interest rate swaps | Fair Value | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 36,919 | 5,012 |
Derivative Liabilities | 0 | (5,883) |
Total net derivatives | $ 36,919 | $ (871) |
Derivative Financial Instrume56
Derivative Financial Instruments - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Other Assets | ||
Gross position | $ 38,746 | $ 5,238 |
Impact of master netting agreement | (11,253) | (4,045) |
Derivative values with impact of master netting agreements (as carried on balance sheet) | 27,493 | 1,193 |
Cash collateral (held) pledged | (14,617) | (900) |
Net position | 12,876 | 293 |
Other Liabilities | ||
Gross position | (40,855) | (28,688) |
Impact of master netting agreement | 11,253 | 4,045 |
Derivative values with impact of master netting agreements (as carried on balance sheet) | (29,602) | (24,643) |
Cash collateral (held) pledged | 47,604 | 72,478 |
Net position | $ 18,002 | $ 47,835 |
Derivative Financial Instrume57
Derivative Financial Instruments - Notional Values (Details) - Interest rate swaps - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Derivatives, Fair Value [Line Items] | ||
Notional values | $ 4,904,504 | $ 5,124,951 |
Trading | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | 836,512 | 973,539 |
Cash Flow Hedges | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | 1,110,549 | 1,106,920 |
Fair Value Hedges | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | $ 2,957,443 | $ 3,044,492 |
Derivative Financial Instrume58
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statements of Income (Details) - Interest rate swaps - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Trading | ||||
Gain (loss) on derivatives, net | $ 1,573 | $ 5,649 | $ 10,702 | $ 5,672 |
Designated as Hedging Instrument | Fair Value Hedges | ||||
Fair Value Hedges | ||||
Hedge ineffectiveness gains (losses) recorded in earnings | (1,843) | 1,238 | (929) | 1,488 |
Realized gains recorded in interest expense | 7,531 | 3,835 | 22,512 | 14,081 |
Trading | ||||
Gain (loss) on derivatives, net | 5,688 | 5,073 | 21,583 | 15,569 |
Designated as Hedging Instrument | Cash Flow Hedges | ||||
Cash Flow Hedges | ||||
Hedge ineffectiveness gains (losses) recorded in earnings | (273) | (303) | (542) | (303) |
Realized losses recorded in interest expense | (5,411) | (3,587) | (16,157) | (3,587) |
Trading | ||||
Gain (loss) on derivatives, net | (5,684) | (3,890) | (16,699) | (3,890) |
Trading | ||||
Trading | ||||
Interest reclassification | 853 | (1,170) | 2,846 | (3,137) |
Change in fair value of future interest payments recorded in earnings | 716 | 5,636 | 2,972 | (2,870) |
Gain (loss) on derivatives, net | $ 1,569 | $ 4,466 | $ 5,818 | $ (6,007) |
Derivative Financial Instrume59
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statement of Changes in Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Amount of loss recognized in other comprehensive income | $ (27,162) | $ (5,470) | $ (35,441) | $ (5,470) |
Less: amount of loss reclassified in interest expense | 5,411 | 3,587 | 16,157 | 3,587 |
Total change in other comprehensive income for unrealized losses on derivatives | $ (21,751) | $ (1,883) | $ (19,284) | $ (1,883) |
Stockholders' Equity - Common s
Stockholders' Equity - Common stock repurchased (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Equity [Abstract] | ||||
Shares repurchased related to employee stock-based compensation plans (in shares) | 136,173 | 356,622 | 2,900,266 | 715,393 |
Average purchase price per share (in dollars per share) | $ 8.88 | $ 8.68 | $ 9.76 | $ 8.68 |
Common shares issued (in shares) | 361,779 | 584,787 | 5,569,853 | 1,089,716 |
Stockholders' Equity - Additio
Stockholders' Equity - Additional Detail (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Class of Stock [Line Items] | ||||
Total net transfers from the entity that is now a subsidiary of Navient | $ 0 | $ 0 | $ 0 | $ 479,409,000 |
Common Stock | ||||
Class of Stock [Line Items] | ||||
Common stock closing price (usd per share) | $ 7.40 | $ 7.40 |
Stockholders' Equity - Net Tran
Stockholders' Equity - Net Transfers (To) From Navient (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Schedule of Transfers To and From Affiliate [Line Items] | ||||
Total capital contributions | $ 546,081,000 | |||
Corporate push-down | 4,977,000 | |||
Net change in income tax accounts | 15,659,000 | |||
Net change in receivable/payable | (87,277,000) | |||
Other | (31,000) | |||
Total net transfers from the entity that is now a subsidiary of Navient | $ 0 | $ 0 | $ 0 | 479,409,000 |
Loan origination activities | ||||
Schedule of Transfers To and From Affiliate [Line Items] | ||||
Total capital contributions | 32,452,000 | |||
Loan sales | ||||
Schedule of Transfers To and From Affiliate [Line Items] | ||||
Total capital contributions | 45,000 | |||
Corporate overhead activities | ||||
Schedule of Transfers To and From Affiliate [Line Items] | ||||
Total capital contributions | 21,216,000 | |||
Other | ||||
Schedule of Transfers To and From Affiliate [Line Items] | ||||
Total capital contributions | $ 492,368,000 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Numerator [Abstract] | ||||
Net income attributable to SLM Corporation | $ 45,724 | $ 82,926 | $ 184,439 | $ 174,502 |
Preferred stock dividends | 4,913 | 4,850 | 14,606 | 8,078 |
Net income attributable to SLM Corporation common stock | $ 40,811 | $ 78,076 | $ 169,833 | $ 166,424 |
Denominator [Abstract] | ||||
Weighted average shares used to compute basic EPS (in shares) | 426,019 | 423,079 | 425,384 | 424,187 |
Effect of dilutive securities: | ||||
Dilutive effect of stock options, restricted stock and restricted stock units and Employee Stock Purchase Plan (ESPP) (in shares) | 6,528 | 8,525 | 7,147 | 8,137 |
Weighted average shares used to compute diluted EPS (in shares) | 432,547 | 431,604 | 432,531 | 432,324 |
Basic earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.10 | $ 0.18 | $ 0.40 | $ 0.39 |
Diluted earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.09 | $ 0.18 | $ 0.39 | $ 0.38 |
Securities excluded from computation of EPS (in shares) | 2,000 | 3,000 | 2,000 | 3,000 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation of Financial Instruments that are Marked-to-Market on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Assets | ||
Mortgage-backed securities | $ 190,944 | $ 168,934 |
Derivative instruments | 27,493 | 1,193 |
Liabilities | ||
Derivative instruments | (29,602) | (24,643) |
Fair Value Measurements Recurring | ||
Assets | ||
Mortgage-backed securities | 190,944 | 168,934 |
Derivative instruments | 38,746 | 5,238 |
Total earning assets | 229,690 | 174,172 |
Liabilities | ||
Derivative instruments | (40,855) | (28,688) |
Fair Value Measurements Recurring | Level 1 | ||
Assets | ||
Mortgage-backed securities | 0 | 0 |
Derivative instruments | 0 | 0 |
Total earning assets | 0 | 0 |
Liabilities | ||
Derivative instruments | 0 | 0 |
Fair Value Measurements Recurring | Level 2 | ||
Assets | ||
Mortgage-backed securities | 190,944 | 168,934 |
Derivative instruments | 38,746 | 5,238 |
Total earning assets | 229,690 | 174,172 |
Liabilities | ||
Derivative instruments | (40,855) | (28,688) |
Fair Value Measurements Recurring | Level 3 | ||
Assets | ||
Mortgage-backed securities | 0 | 0 |
Derivative instruments | 0 | 0 |
Total earning assets | 0 | 0 |
Liabilities | ||
Derivative instruments | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values of Financial Assets and Liabilities, Including Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Earning assets | ||
Tax indemnification receivable | $ 200,704 | $ 240,311 |
Derivative instruments | 27,493 | 1,193 |
Interest-bearing liabilities | ||
Derivative instruments | 29,602 | 24,643 |
Fair Value | ||
Earning assets | ||
Loans held for investment, net | 12,837,892 | 10,228,399 |
Cash and cash equivalents | 1,281,797 | 2,359,780 |
Available-for-sale investments | 190,944 | 168,934 |
Accrued interest receivable | 634,423 | 469,697 |
Tax indemnification receivable | 200,704 | 240,311 |
Derivative instruments | 38,746 | 5,238 |
Total earning assets | 15,184,506 | 13,472,359 |
Interest-bearing liabilities | ||
Short-term borrowings | 710,005 | 0 |
Long-term borrowings | 583,314 | 0 |
Accrued interest payable | 23,309 | 16,082 |
Derivative instruments | 40,855 | 28,688 |
Total interest-bearing liabilities | 11,947,331 | 10,590,151 |
Fair Value | Money-market and savings accounts | ||
Interest-bearing liabilities | ||
Deposits | 5,102,323 | 5,231,736 |
Fair Value | Certificates of deposit | ||
Interest-bearing liabilities | ||
Deposits | 5,487,525 | 5,313,645 |
Carrying Value | ||
Earning assets | ||
Loans held for investment, net | 11,909,148 | 9,509,786 |
Cash and cash equivalents | 1,281,797 | 2,359,780 |
Available-for-sale investments | 190,944 | 168,934 |
Accrued interest receivable | 634,423 | 469,697 |
Tax indemnification receivable | 200,704 | 240,311 |
Derivative instruments | 38,746 | 5,238 |
Total earning assets | 14,255,762 | 12,753,746 |
Interest-bearing liabilities | ||
Short-term borrowings | 710,005 | 0 |
Long-term borrowings | 593,687 | 0 |
Accrued interest payable | 23,309 | 16,082 |
Derivative instruments | 40,855 | 28,688 |
Total interest-bearing liabilities | 11,978,735 | 10,585,324 |
Carrying Value | Money-market and savings accounts | ||
Interest-bearing liabilities | ||
Deposits | 5,102,323 | 5,231,736 |
Carrying Value | Certificates of deposit | ||
Interest-bearing liabilities | ||
Deposits | 5,508,556 | 5,308,818 |
Difference | ||
Earning assets | ||
Loans held for investment, net | 928,744 | 718,613 |
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 earning assets | 928,744 | 718,613 |
Interest-bearing liabilities | ||
Short-term borrowings | 0 | 0 |
Long-term borrowings | 10,373 | 0 |
Accrued interest payable | 0 | 0 |
Derivative instruments | 0 | 0 |
Total interest-bearing liabilities | 31,404 | (4,827) |
Excess of net asset fair value over carrying value | 960,148 | 713,786 |
Difference | Money-market and savings accounts | ||
Interest-bearing liabilities | ||
Deposits | 0 | 0 |
Difference | Certificates of deposit | ||
Interest-bearing liabilities | ||
Deposits | $ 21,031 | $ (4,827) |
Arrangements with Navient Cor66
Arrangements with Navient Corporation (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | Dec. 31, 2014 | |
Related Party Transaction [Line Items] | |||||
Minimum days past due that company may required spin-off company to purchase loans | 90 days | ||||
Period of hardship forbearance | 6 months | ||||
Split loans, net | $ 10,766,511,000 | $ 10,766,511,000 | $ 8,246,647,000 | ||
Interest income from related party | 153,000 | $ 542,000 | 438,000 | $ 26,339,000 | |
Gains on loans to related party | 0 | 0 | 0 | 35,848,000 | |
Write-down to fair value for loans sold to related party | 1,871,000 | 4,571,000 | 5,573,000 | 51,001,000 | |
Split Loans | |||||
Related Party Transaction [Line Items] | |||||
Split loans, net | 96,100,000 | 96,100,000 | |||
Participated loans | |||||
Related Party Transaction [Line Items] | |||||
Loans sold to related party | $ 6,552,000 | $ 28,871,000 | $ 21,109,000 | $ 794,870,000 |
Regulatory Capital - Well Capit
Regulatory Capital - Well Capitalized Regulatory Requirements (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Dec. 31, 2014 |
Actual | ||
Tier I Capital (to Average Assets) | $ 1,639,235 | $ 1,413,988 |
Tier I Capital (to Risk-Weighted Assets) | 1,639,235 | 1,413,988 |
Total Capital (to Risk-Weighted Assets) | 1,743,438 | $ 1,497,830 |
Common Equity Tier I Capital (to Risk-Weighted Assets) | $ 1,639,235 | |
Actual Ratio | ||
Tier I Capital (to Average Assets) | 12.20% | 11.50% |
Tier I Capital (to Risk-Weighted Assets) | 13.30% | 15.00% |
Total Capital (to Risk-Weighted Assets) | 14.10% | 15.90% |
Common Equity Tier I Capital (to Risk-Weighted Assets) | 13.30% | |
Well Capitalized Regulatory Requirements, Amount | ||
Tier I Capital (to Average Assets) | $ 674,490 | $ 614,709 |
Tier I Capital (to Risk-Weighted Assets) | 989,333 | 565,148 |
Total Capital (to Risk-Weighted Assets) | 1,236,667 | $ 941,913 |
Common Equity Tier I Capital (to Risk-Weighted Assets) | $ 803,833 | |
Well Capitalized Regulatory Requirements, Ratio | ||
Tier I Capital (to Average Assets) | 5.00% | 5.00% |
Tier I Capital (to Risk-Weighted Assets) | 8.00% | 6.00% |
Total Capital (to Risk-Weighted Assets) | 10.00% | 10.00% |
Common Equity Tier I Capital (to Risk-Weighted Assets) | 6.50% |
Regulatory Capital - Additional
Regulatory Capital - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 | |
Banking and Thrift [Abstract] | ||||
Dividends | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments, Contingencies an69
Commitments, Contingencies and Guarantees - Additional Information (Detail) - USD ($) | Sep. 30, 2015 | Sep. 29, 2014 |
Commitments and Contingencies Disclosure [Abstract] | ||
FDIC civil monetary penalties | $ 3,300,000 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Contingency refund | $ 30,000,000 | |
Private Education Loans | ||
Loss Contingencies [Line Items] | ||
Outstanding loan commitments | $ 1,700,000,000 |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) number in Thousands, $ in Thousands | Oct. 30, 2015 | Oct. 21, 2015 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 30, 2014 |
Subsequent Event [Line Items] | ||||||
Gains on sales of loans, net | $ 0 | $ 85,147 | $ 76,874 | $ 120,963 | ||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Private Education Loans to sell | $ 750,000 | |||||
Scenario, Forecast | ||||||
Subsequent Event [Line Items] | ||||||
Gains on sales of loans, net | $ 59,000 | |||||
Percentage of premium on loan sale | 0.00% |