Document and Entity Information
Document and Entity Information | 3 Months Ended |
Mar. 31, 2016shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2016 |
Document Fiscal Year Focus | 2,016 |
Document Fiscal Period Focus | Q1 |
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) | 427,915,514 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 938,480 | $ 2,416,219 |
Available-for-sale investments at fair value (cost of $201,585 and $196,402, respectively) | 203,597 | 195,391 |
Loans held for investment (net of allowance for losses of $126,249 and $112,507, respectively) | 13,108,425 | 11,630,591 |
Restricted cash and investments | 24,612 | 27,980 |
Other interest-earning assets | 58,451 | 54,845 |
Accrued interest receivable | 650,813 | 564,496 |
Premises and equipment, net | 81,261 | 81,273 |
Acquired intangible assets, net | 1,485 | 1,745 |
Tax indemnification receivable | 187,156 | 186,076 |
Other assets | 70,493 | 55,482 |
Total assets | 15,324,773 | 15,214,098 |
Liabilities | ||
Deposits | 11,543,355 | 11,487,707 |
Short-term borrowings | 526,500 | 500,175 |
Long-term borrowings | 558,513 | 579,101 |
Income taxes payable, net | 142,410 | 166,662 |
Upromise related liabilities | 263,899 | 275,384 |
Other liabilities | 146,171 | 108,746 |
Total liabilities | $ 13,180,848 | $ 13,117,775 |
Commitments and contingencies | ||
Equity | ||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 433.4 million and 430.7 million shares issued, respectively | $ 86,684 | $ 86,136 |
Additional paid-in capital | 1,142,502 | 1,135,860 |
Accumulated other comprehensive loss (net of tax benefit of $18,089 and $9,949, respectively) | (29,269) | (16,059) |
Retained earnings | 426,986 | 366,609 |
Total SLM Corporation stockholders' equity before treasury stock | 2,191,903 | 2,137,546 |
Less: Common stock held in treasury at cost: 5.5 million and 4.4 million shares, respectively | (47,978) | (41,223) |
Total equity | 2,143,925 | 2,096,323 |
Total liabilities and equity | 15,324,773 | 15,214,098 |
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Amortized cost | $ 201,585 | $ 196,402 |
Allowance for loan losses | $ 126,249 | $ 112,507 |
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) | 433,400,000 | 430,700,000 |
Tax benefit for accumulated other comprehensive (loss) income | $ (18,089) | $ (9,949) |
Common stock held in treasury (in shares) | 5,500,000 | 4,400,000 |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest income: | ||
Loans | $ 245,230 | $ 197,856 |
Investments | 2,591 | 2,720 |
Cash and cash equivalents | 1,634 | 780 |
Total interest income | 249,455 | 201,356 |
Interest expense: | ||
Deposits | 34,012 | 29,570 |
Interest expense on short-term borrowings | 2,163 | 832 |
Interest expense on long-term borrowings | 3,415 | 0 |
Other interest expense | 2 | 0 |
Total interest expense | 39,592 | 30,402 |
Net interest income | 209,863 | 170,954 |
Less: provisions for credit losses | 32,602 | 16,618 |
Net interest income after provisions for credit losses | 177,261 | 154,336 |
Non-interest income: | ||
(Losses) gains on derivatives and hedging activities, net | (354) | 3,292 |
Other | 21,028 | 8,007 |
Total non-interest income | 20,674 | 11,299 |
Expenses: | ||
Compensation and benefits | 50,209 | 41,203 |
Other operating expenses | 42,676 | 39,984 |
Total operating expenses | 92,885 | 81,187 |
Acquired intangible asset amortization expense | 260 | 370 |
Restructuring and other reorganization expenses | 0 | 4,657 |
Total expenses | 93,145 | 86,214 |
Income before income tax expense | 104,790 | 79,421 |
Income tax expense | 38,875 | 31,722 |
Net income attributable to SLM Corporation | 65,915 | 47,699 |
Preferred stock dividends | 5,139 | 4,823 |
Net income attributable to SLM Corporation common stock | $ 60,776 | $ 42,876 |
Basic earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.14 | $ 0.10 |
Average common shares outstanding (in shares) | 427,111 | 424,428 |
Diluted earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.14 | $ 0.10 |
Average common and common equivalent shares outstanding (in shares) | 430,903 | 432,302 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income attributable to SLM Corporation | $ 65,915 | $ 47,699 |
Other comprehensive income (loss): | ||
Unrealized gains on investments | 3,024 | 673 |
Unrealized losses on cash flow hedges | (24,374) | (15,689) |
Total unrealized losses | (21,350) | (15,016) |
Income tax benefit | 8,140 | 5,825 |
Other comprehensive loss, net of tax benefit | (13,210) | (9,191) |
Total comprehensive income attributable to SLM Corporation | $ 52,705 | $ 38,508 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands | Total | 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 |
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 | $ 565,000 | $ 84,961 | $ (12,187) | $ 1,090,511 | $ (11,393) | $ 113,066 | $ 1,829,958 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income (loss) | $ 47,699 | 47,699 | 47,699 | |||||||||
Other comprehensive income (loss), net of tax | $ (9,191) | (9,191) | (9,191) | |||||||||
Comprehensive income | 38,508 | |||||||||||
Cash dividends: | ||||||||||||
Cash dividends, preferred stock | $ (2,875) | $ (1,948) | $ (2,875) | $ (1,948) | ||||||||
Dividend equivalent units related to employee stock-based compensation plans | 1,118 | (1,118) | 0 | |||||||||
Issuance of common shares (in shares) | 3,130,839 | 3,130,839 | ||||||||||
Issuance of common shares | $ 626 | 4,050 | 4,676 | |||||||||
Tax benefit related to employee stock-based compensation | 4,596 | 4,596 | ||||||||||
Stock-based compensation expense | 6,140 | 6,140 | ||||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (1,389,096) | (1,389,096) | ||||||||||
Shares repurchased related to employee stock-based compensation plans | $ (13,142) | (13,142) | ||||||||||
Ending Balance (in shares) at Mar. 31, 2015 | 7,300,000 | 425,180,591 | (2,754,373) | |||||||||
Ending Balance, shares issued (in shares) at Mar. 31, 2015 | 427,934,964 | |||||||||||
Ending Balance at Mar. 31, 2015 | $ 565,000 | $ 85,587 | $ (25,329) | 1,106,415 | (20,584) | 154,824 | 1,865,913 | |||||
Beginning Balance (in shares) at Dec. 31, 2015 | 7,300,000 | 426,303,244 | (4,374,190) | |||||||||
Beginning Balance, shares issued (in shares) at Dec. 31, 2015 | 430,677,434 | |||||||||||
Beginning Balance at Dec. 31, 2015 | $ 2,096,323 | $ 565,000 | $ 86,136 | $ (41,223) | 1,135,860 | (16,059) | 366,609 | 2,096,323 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income (loss) | 65,915 | 65,915 | 65,915 | |||||||||
Other comprehensive income (loss), net of tax | $ (13,210) | (13,210) | (13,210) | |||||||||
Comprehensive income | 52,705 | |||||||||||
Cash dividends: | ||||||||||||
Cash dividends, preferred stock | $ (2,875) | $ (2,264) | $ (2,875) | $ (2,264) | ||||||||
Dividend equivalent units related to employee stock-based compensation plans | 399 | (399) | 0 | |||||||||
Issuance of common shares (in shares) | 2,740,979 | 2,740,979 | ||||||||||
Issuance of common shares | $ 548 | 2,159 | 2,707 | |||||||||
Tax benefit related to employee stock-based compensation | (2,132) | (2,132) | ||||||||||
Stock-based compensation expense | 6,216 | 6,216 | ||||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (1,128,709) | (1,128,709) | ||||||||||
Shares repurchased related to employee stock-based compensation plans | $ (6,755) | (6,755) | ||||||||||
Ending Balance (in shares) at Mar. 31, 2016 | 7,300,000 | 427,915,514 | (5,502,899) | |||||||||
Ending Balance, shares issued (in shares) at Mar. 31, 2016 | 433,418,413 | |||||||||||
Ending Balance at Mar. 31, 2016 | $ 2,143,925 | $ 565,000 | $ 86,684 | $ (47,978) | $ 1,142,502 | $ (29,269) | $ 426,986 | $ 2,143,925 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
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) | $ 0.56 | $ 0.49 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities | ||
Net income attributable to SLM Corporation | $ 65,915 | $ 47,699 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Provisions for credit losses | 32,602 | 16,618 |
Income tax expense | 38,875 | 31,722 |
Amortization of brokered deposit placement fee | 2,615 | 2,695 |
Amortization of ABCP Facility upfront fee | 122 | 0 |
Amortization of deferred loan origination costs and fees, net | 1,223 | 641 |
Net amortization of discount on investments | 342 | 324 |
Interest income on tax indemnification receivable | (1,080) | (1,754) |
Depreciation of premises and equipment | 2,104 | 1,659 |
Amortization of acquired intangibles | 260 | 370 |
Stock-based compensation expense | 6,216 | 6,140 |
Unrealized (gains)/losses on derivative and hedging activities, net | 832 | (2,417) |
Other adjustments to net income, net | 250 | 0 |
Changes in operating assets and liabilities: | ||
Net decrease in loans held for sale | 0 | 55 |
Origination of loans held for sale | 0 | (55) |
Increase in accrued interest receivable | (147,257) | (121,815) |
Decrease in restricted cash and investments - other | 6,778 | 1,046 |
(Increase) decrease in other interest-earning assets | (3,606) | 13,854 |
Decrease in tax indemnification receivable | 0 | 14,908 |
Increase in other assets | (11,391) | (2,079) |
Decrease in income tax payable, net | (54,987) | (23,049) |
Increase in accrued interest payable | 9,079 | 6,541 |
Increase (decrease) in payable due to entity that is a subsidiary of Navient | 1,169 | (1,655) |
Increase (decrease) in other liabilities | 2,159 | (10,629) |
Total adjustments | (113,695) | (66,880) |
Total net cash used in operating activities | (47,780) | (19,181) |
Investing activities | ||
Loans acquired and originated | (1,806,583) | (1,663,149) |
Net proceeds from sales of loans held for investment | 3,365 | 6,387 |
Proceeds from claim payments | 18,528 | 46,442 |
Net decrease (increase) in loans held for investment | 332,414 | 243,990 |
Increase in restricted cash and investments - variable interest entities | (3,410) | 0 |
Purchases of available-for-sale securities | (12,090) | (8,178) |
Proceeds from sales and maturities of available-for-sale securities | 6,566 | 6,630 |
Total net cash used in investing activities | (1,461,210) | (1,367,878) |
Financing activities | ||
Brokered deposit placement fee | (2,759) | 0 |
Net decrease in certificates of deposit | (209,411) | (74,457) |
Net increase (decrease) increase in other deposits | 245,893 | (22,415) |
Borrowings collateralized by loans in securitization trusts - repaid | (20,276) | 0 |
Borrowings under ABCP facility | 26,325 | 0 |
Fees paid on ABCP facility | (1,250) | 0 |
Excess tax (expense) benefit from the exercise of stock-based awards | (2,132) | 4,596 |
Preferred stock dividends paid | (5,139) | (4,823) |
Net cash provided by (used in) financing activities | 31,251 | (97,099) |
Net decrease in cash and cash equivalents | (1,477,739) | (1,484,158) |
Cash and cash equivalents at beginning of period | 2,416,219 | 2,359,780 |
Cash and cash equivalents at end of period | 938,480 | 875,622 |
Cash disbursements made for: | ||
Interest | 32,766 | 25,368 |
Income taxes paid | $ 56,077 | $ 17,811 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying unaudited, consolidated financial statements of SLM Corporation (“Sallie Mae,” “SLM,” the “Company,” “we,” or “us”) 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 months ended March 31, 2016 are not necessarily indicative of the results for the year ending December 31, 2016 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, 2015 (the “2015 Form 10-K”). 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. We consolidate any variable interest entity (“VIE”) where we have determined we are the primary beneficiary. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. Recently Issued but Not Yet Adopted Accounting Pronouncements On February 25, 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases,” a comprehensive new lease standard which will supersede previous lease guidance. The standard requires a lessee to recognize in its balance sheet assets and liabilities related to long-term leases that were classified as operating leases under previous guidance. An asset will be recognized related to the right to use the underlying asset and a liability will be recognized related to the obligation to make lease payments over the term of the lease. The standard also requires expanded disclosures surrounding leases. The standard is effective for fiscal periods beginning after December 15, 2018, and requires modified retrospective adoption, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements and related disclosures. On March 30, 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which amends the current stock compensation guidance. The amendments simplify the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a company's payments for tax withholdings should be classified. The standard is effective for fiscal periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. |
Loans Held for Investment
Loans Held for Investment | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Loans Held for Investment | Loans Held for Investment Loans Held for Investment consist of Private Education Loans and FFELP Loans. We use “Private Education Loans” to mean education loans to students or their families that are not made, insured or guaranteed by any state or federal government. Private Education Loans do not include loans insured or guaranteed under the previously existing Federal Family Education Loan Program (“FFELP”). 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 and customers’ resources. Private Education Loans bear the full credit risk of the customer. We manage this risk through risk-performance underwriting strategies and qualified cosigners. Private Education Loans generally carry a variable rate indexed to LIBOR. As of March 31, 2016, 81 percent of all of our Private Education Loans were indexed to LIBOR. We provide incentives for customers to include a cosigner on the loan, and the vast majority of loans in our portfolio are cosigned. We also encourage customers to make payments while in school. FFELP Loans are insured as to their principal and accrued interest in the event of default subject to a Risk Sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement 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: March 31, December 31, 2016 2015 Private Education Loans $ 12,111,870 $ 10,596,437 Deferred origination costs 31,772 27,884 Allowance for loan losses (122,620 ) (108,816 ) Total Private Education Loans, net 12,021,022 10,515,505 FFELP Loans 1,088,026 1,115,663 Unamortized acquisition costs, net 3,006 3,114 Allowance for loan losses (3,629 ) (3,691 ) Total FFELP Loans, net 1,087,403 1,115,086 Loans held for investment, net $ 13,108,425 $ 11,630,591 The estimated weighted average life of education loans in our portfolio was approximately 6.2 years at both March 31, 2016 and December 31, 2015, respectively. The average balance and the respective weighted average interest rates of education loans in our portfolio are summarized as follows: Three Months Ended March 31, 2016 2015 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 11,817,708 8.03 % $ 9,454,579 8.07 % FFELP Loans 1,103,253 3.42 1,234,682 3.19 Total portfolio $ 12,920,961 $ 10,689,261 |
Allowance for Loan Losses
Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 3,691 $ 108,816 $ 112,507 Total provision 321 33,839 34,160 Net charge-offs: Charge-offs (383 ) (19,004 ) (19,387 ) Recoveries — 1,044 1,044 Net charge-offs (383 ) (17,960 ) (18,343 ) Loan sales (1) — (2,075 ) (2,075 ) Ending Balance $ 3,629 $ 122,620 $ 126,249 Allowance: Ending balance: individually evaluated for impairment $ — $ 49,212 $ 49,212 Ending balance: collectively evaluated for impairment $ 3,629 $ 73,408 $ 77,037 Loans: Ending balance: individually evaluated for impairment $ — $ 318,094 $ 318,094 Ending balance: collectively evaluated for impairment $ 1,088,026 $ 11,793,776 $ 12,881,802 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.19 % 0.95 % Allowance as a percentage of the ending total loan balance 0.33 % 1.01 % Allowance as a percentage of the ending loans in repayment (2) 0.45 % 1.56 % Allowance coverage of net charge-offs (annualized) 2.37 1.71 Ending total loans, gross $ 1,088,026 $ 12,111,870 Average loans in repayment (2) $ 804,690 $ 7,534,234 Ending loans in repayment (2) $ 803,378 $ 7,843,076 ____________ (1) Represents fair value adjustments on loans sold. (2) Loans in repayment include loans on which borrowers are 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 March 31, 2015 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 5,268 $ 78,574 $ 83,842 Total provision 435 16,183 16,618 Net charge-offs: Charge-offs (1,134 ) (8,727 ) (9,861 ) Recoveries — 1,387 1,387 Net charge-offs (1,134 ) (7,340 ) (8,474 ) Loan sales (1) — (2,181 ) (2,181 ) Ending Balance $ 4,569 $ 85,236 $ 89,805 Allowance: Ending balance: individually evaluated for impairment $ — $ 20,105 $ 20,105 Ending balance: collectively evaluated for impairment $ 4,569 $ 65,131 $ 69,700 Loans: Ending balance: individually evaluated for impairment $ — $ 122,120 $ 122,120 Ending balance: collectively evaluated for impairment $ 1,208,977 $ 9,646,641 $ 10,855,618 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.50 % 0.51 % Allowance as a percentage of the ending total loan balance 0.38 % 0.87 % Allowance as a percentage of the ending loans in repayment (2) 0.52 % 1.42 % Allowance coverage of net charge-offs (annualized) 1.01 2.90 Ending total loans, gross $ 1,208,977 $ 9,768,761 Average loans in repayment (2) $ 898,360 $ 5,705,067 Ending loans in repayment (2) $ 872,579 $ 5,995,121 ____________ (1) Represents fair value adjustments on loans sold. (2) Loans in repayment include loans on which borrowers 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. 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 23 percent of the loans granted forbearance as of March 31, 2016 and December 31, 2015, respectively, have been classified as TDRs due to their forbearance status. For additional information, see Note 6, “Allowance for Loan Losses” in our 2015 Form 10-K. 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 continue to accrue interest on those loans through the date of claim. At March 31, 2016 and December 31, 2015, all of our TDR loans had a related allowance recorded. The following table provides the recorded investment, unpaid principal balance and related allowance for our TDR loans. Recorded Investment Unpaid Principal Balance Allowance March 31, 2016 TDR Loans $ 322,744 $ 318,094 $ 49,212 December 31, 2015 TDR Loans $ 269,628 $ 265,831 $ 43,480 The following table provides the average recorded investment and interest income recognized for our TDR loans. Three Months Ended Three Months Ended March 31, 2016 March 31, 2015 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 297,315 $ 5,583 $ 88,120 $ 2,396 The following table provides information regarding the loan status of TDR loans. March 31, December 31, 2016 2015 Balance % Balance % TDR loans in in-school/grace/deferment (1) $ 10,738 $ 6,869 TDR loans in forbearance (2) 42,699 43,756 TDR loans in repayment (3) and percentage of each status: Loans current 232,720 88.0 % 185,936 86.4 % Loans delinquent 31-60 days (4) 13,610 5.1 14,948 6.9 Loans delinquent 61-90 days (4) 11,109 4.2 9,239 4.3 Loans delinquent greater than 90 days (4) 7,218 2.7 5,083 2.4 Total TDR loans in repayment 264,657 100.0 % 215,206 100.0 % Total TDR loans, gross $ 318,094 $ 265,831 _____ (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) Loans in repayment include loans on which borrowers are making interest only and fixed payments as well as loans that have entered full principal and interest repayment status. (4) The period of delinquency is based on the number of days scheduled payments are contractually past due. The following table provides the amount of modified loans (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 March 31, 2016 March 31, 2015 Modified Loans (1) Charge-offs Payment- Default Modified Loans (1) Charge-offs Payment- Default TDR Loans $ 61,006 $ 4,968 $ 25,671 $ 122,120 $ 930 $ 4,785 _____ (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, the 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 March 31, 2016 December 31, 2015 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance Cosigners: With cosigner $ 10,914,736 90 % $ 9,515,136 90 % Without cosigner 1,197,134 10 1,081,301 10 Total $ 12,111,870 100 % $ 10,596,437 100 % FICO at Origination: Less than 670 $ 781,804 6 % $ 700,779 7 % 670-699 1,768,651 15 1,554,959 15 700-749 3,909,444 32 3,403,823 32 Greater than or equal to 750 5,651,971 47 4,936,876 46 Total $ 12,111,870 100 % $ 10,596,437 100 % Seasoning (2) : 1-12 payments $ 3,664,441 30 % $ 3,059,901 29 % 13-24 payments 2,255,999 19 2,096,412 20 25-36 payments 1,171,202 10 1,084,818 10 37-48 payments 549,855 4 513,125 5 More than 48 payments 443,041 4 414,217 4 Not yet in repayment 4,027,332 33 3,427,964 32 Total $ 12,111,870 100 % $ 10,596,437 100 % (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. The following table provides information regarding the loan status of our 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 March 31, December 31, 2016 2015 Balance % Balance % Loans in-school/grace/deferment (1) $ 4,027,332 $ 3,427,964 Loans in forbearance (2) 241,462 241,207 Loans in repayment and percentage of each status: Loans current 7,678,446 97.9 % 6,773,095 97.8 % Loans delinquent 31-60 days (3) 78,242 1.0 91,129 1.3 Loans delinquent 61-90 days (3) 56,906 0.7 42,048 0.6 Loans delinquent greater than 90 days (3) 29,482 0.4 20,994 0.3 Total Private Education Loans in repayment 7,843,076 100.0 % 6,927,266 100.0 % Total Private Education loans, gross 12,111,870 10,596,437 Private Education Loans deferred origination costs 31,772 27,884 Total Private Education Loans 12,143,642 10,624,321 Private Education Loans allowance for losses (122,620 ) (108,816 ) Private Education Loans, net $ 12,021,022 $ 10,515,505 Percentage of Private Education Loans in repayment 64.8 % 65.4 % Delinquencies as a percentage of Private Education Loans in repayment 2.1 % 2.2 % Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance 3.0 % 3.4 % (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 Private Education Loan portfolio for all periods presented. Private Education Loan Accrued Interest Receivable Total Interest Receivable Greater Than 90 Days Past Due Allowance for Uncollectible Interest March 31, 2016 $ 619,226 $ 1,034 $ 3,074 December 31, 2015 $ 542,919 $ 791 $ 3,332 |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits The following table summarizes total deposits at March 31, 2016 and December 31, 2015. March 31, December 31, 2016 2015 Deposits - interest bearing $ 11,542,392 $ 11,487,006 Deposits - non-interest bearing 963 701 Total deposits $ 11,543,355 $ 11,487,707 Interest Bearing Interest bearing deposits as of March 31, 2016 and December 31, 2015 consisted of non-maturity savings and money market deposits, brokered and retail certificates of deposit (“CDs”), and brokered money market deposits (“MMDAs”). Included in these accounts are what we consider to be core deposits from various sources. Our deposit products are serviced by third-party providers. Placement fees associated with the brokered CDs are amortized into interest expense using the effective interest rate method. We recognized placement fee expense of $ 2.6 million and $ 2.7 million in the three months ended March 31, 2016 and 2015, respectively. Fees paid to third-party brokers related to these CDs were $ 2.8 million for the three months ended March 31, 2016. There were no such fees paid in the three months ended March 31, 2015. Interest bearing deposits at March 31, 2016 and December 31, 2015 are summarized as follows: March 31, 2016 December 31, 2015 Amount Qtr.-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 5,125,507 1.22 % $ 4,886,299 1.19 % Savings 679,511 0.82 669,254 0.82 Certificates of deposit 5,737,374 1.19 5,931,453 0.98 Deposits - interest bearing $ 11,542,392 $ 11,487,006 ____________ (1) Includes the effect of interest rate swaps in effective hedge relationships. As of March 31, 2016 and December 31, 2015, there were $ 251.5 million and $709.9 million, respectively, of deposits exceeding Federal Deposit Insurance Corporation (“FDIC”) insurance limits. Accrued interest on deposits was $24.6 million and $15.7 million at March 31, 2016 and December 31, 2015, respectively. Non-Interest Bearing Non-interest bearing deposits were $ 1.0 million and $ 0.7 million as of March 31, 2016 and December 31, 2015, respectively. For both periods, these were comprised of money market accounts related to our Employee Stock Purchase Plan account. |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2016 | |
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 “ABCP Facility”). The following table summarizes our secured borrowings at March 31, 2016 and December 31, 2015. March 31, 2016 December 31, 2015 Short-Term Long-Term Total Short-Term Long-Term Total Secured borrowings: Private Education Loan term securitization $ — $ 558,513 $ 558,513 $ — $ 579,101 $ 579,101 ABCP Facility 526,500 — 526,500 500,175 — 500,175 Total $ 526,500 $ 558,513 $ 1,085,013 $ 500,175 $ 579,101 $ 1,079,276 Short-term Borrowings Asset-Backed Commercial Paper Funding Facility On December 19, 2014, we closed on a $ 750.0 million ABCP Facility. We retained a 5 percent or $ 37.5 million participation interest in the ABCP Facility, resulting in $ 712.5 million of funds available for us to draw under the ABCP Facility. During 2015, we incurred financing costs under the ABCP Facility of approximately 0.40 percent on average on unused borrowing capacity and approximately 3 month LIBOR plus 0.80 percent on outstandings under the ABCP Facility. On February 25, 2016, we amended and extended the maturity of our ABCP Facility. The amended ABCP Facility is a $ 750.0 million ABCP Facility, in which we no longer hold a participation interest. As a result, the full $ 750.0 million is available for us to draw. We hold 100 percent of the residual interest in the ABCP Facility trust. Under the amended ABCP Facility, we incur financing costs of between 0.35 percent and 0.45 percent on unused borrowing capacity and approximately 3 month LIBOR plus 1.00 percent on outstandings. The amended ABCP Facility extends the revolving period, during which we may borrow, repay and reborrow funds, until February 23, 2017. The scheduled amortization period, during which amounts outstanding under the ABCP Facility must be repaid, ends on February 23, 2018 (or earlier, if certain material adverse events occur). At March 31, 2016, $ 526.5 million was outstanding under the ABCP Facility. At March 31, 2016, $ 902.0 million of our Private Education Loans were encumbered to support outstandings under the ABCP Facility. Short-term borrowings have a remaining term to maturity of one year or less. The ABCP Facility's contractual maturity is two years from the date of inception or renewal ( one year revolving period plus a one year amortization period); however, we classify advances under our ABCP Facility as short-term borrowings because it is our intention to repay those advances within one-year. Long-term Borrowings Secured Financings at Issuance 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 at inception of the above on-balance sheet term securitization $ 745,580 ____________ (1) Represents LIBOR equivalent cost of funds for floating and fixed rate bonds, excluding issuance costs. Consolidated Funding Vehicles We consolidate our financing entities that are 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 March 31, 2016 and December 31, 2015, respectively: March 31, 2016 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets (1) Total Secured borrowings: Private Education Loan term securitization $ — $ 558,513 $ 558,513 $ 671,603 $ 10,281 $ 46,305 $ 728,189 ABCP Facility 526,500 — 526,500 902,049 15,567 91,713 1,009,329 Total $ 526,500 $ 558,513 $ 1,085,013 $ 1,573,652 $ 25,848 $ 138,018 $ 1,737,518 ____ (1) Other assets primarily represents accrued interest receivable. December 31, 2015 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets (1) Total Secured borrowings: Private Education Loan term securitization $ — $ 579,101 $ 579,101 $ 687,298 $ 9,996 $ 45,566 $ 742,860 ABCP Facility 500,175 — 500,175 923,687 12,443 58,095 994,225 Total $ 500,175 $ 579,101 $ 1,079,276 $ 1,610,985 $ 22,439 $ 103,661 $ 1,737,085 ____ (1) Other assets primarily represents accrued interest receivable. Other Borrowing Sources We maintain discretionary uncommitted Federal Funds lines of credit with various correspondent banks, which totaled $100 million at March 31, 2016. 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 months ended March 31, 2016 and in the year ended December 31, 2015. 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 (the “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 March 31, 2016 and December 31, 2015, the value of our pledged collateral at the FRB totaled $1.5 billion and $1.7 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 months ended March 31, 2016 and in the year ended December 31, 2015. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
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 reduce the economic effect of interest rate changes. Our goal is to manage interest rate sensitivity by modifying the repricing frequency and underlying index characteristics of certain balance sheet liabilities so any adverse impacts related to movements in interest rates are managed within low to moderate limits. As a result of interest rate fluctuations, hedged liabilities will appreciate or depreciate in market value or create variability in cash flows. Income or loss on the derivative instruments linked to the hedged item will generally offset the effect of this unrealized appreciation or depreciation or volatility in cash flows for the period the item is being hedged. We view this strategy as a prudent management of interest rate risk. Please refer to Note 11, “Derivative Financial Instruments” in our 2015 Form 10-K for a full discussion of our risk management strategy. Although we use derivatives to reduce the risk of interest rate changes, the use of derivatives does expose us to both market and credit risk. Market risk is the chance of financial loss resulting from changes in interest rates and market liquidity. Credit risk is the risk that a counterparty will not perform its obligations under a contract and it is limited to the loss of the fair value gain in a derivative that the counterparty owes us less collateral held and/or plus collateral posted. When the fair value of a derivative contract less collateral held and/or plus collateral posted is negative, we owe the counterparty and, therefore, we have no credit risk exposure to the counterparty; however, the counterparty has exposure to us. We minimize the credit risk in derivative instruments by entering into transactions with highly rated counterparties that are reviewed regularly by our Credit Department. We also maintain a policy of requiring that all derivative contracts be governed by an International Swaps and Derivative Association Master Agreement. Depending on the nature of the derivative transaction, bilateral collateral arrangements are required as well. When we have more than one outstanding derivative transaction with the counterparty, and there exists legally enforceable netting provisions with the counterparty (i.e., a legal right to offset receivable and payable derivative contracts), the “net” mark-to-market exposure, less collateral held and/or plus collateral posted, represents exposure with the counterparty. When there is a net negative exposure, we consider our exposure to the counterparty to be zero. 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 March 31, 2016, $ 5.5 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 and plus any collateral posted. When there is a net negative exposure, we consider our exposure to the counterparty to be zero. At March 31, 2016 and December 31, 2015, we had a net positive exposure (derivative gain positions to us, less collateral held by us and plus collateral posted with counterparties) related to derivatives of $ 60.0 million and $ 50.1 million, respectively. Summary of Derivative Financial Statement Impact The following tables summarize the fair values and notional amounts of all derivative instruments at March 31, 2016 and December 31, 2015, and their impact on earnings and other comprehensive income for the three months ended March 31, 2016 and 2015. Please refer to Note 11, “Derivative Financial Instruments” in our 2015 Form 10-K for a full discussion of cash flow hedges, fair value hedges, and trading activities. Impact of Derivatives on the Consolidated Balance Sheet Cash Flow Hedges Fair Value Hedges Trading Total March 31, December 31, March 31, December March 31, December March 31, December 2016 2015 2016 2015 2016 2015 2016 2015 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ — $ — $ 50,782 $ 15,231 $ 1,225 $ 83 $ 52,007 $ 15,314 Derivative Liabilities: (2) Interest rate swaps Interest rate (51,955 ) (27,512 ) (160 ) (2,339 ) (135 ) (646 ) (52,250 ) (30,497 ) Total net derivatives $ (51,955 ) $ (27,512 ) $ 50,622 $ 12,892 $ 1,090 $ (563 ) $ (243 ) $ (15,183 ) ___________ (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 March 31, December 31, March 31, December 31, 2016 2015 2016 2015 Gross position (1) $ 52,007 $ 15,314 $ (52,250 ) $ (30,497 ) Impact of master netting agreement (14,205 ) (9,278 ) 14,205 9,278 Derivative values with impact of master netting agreements (as carried on balance sheet) 37,802 6,036 (38,045 ) (21,219 ) Cash collateral (held) pledged (19,692 ) (1,070 ) 58,451 54,845 Net position $ 18,110 $ 4,966 $ 20,406 $ 33,626 __________ (1) Gross position amounts are exclusive of accrued interest. Cash Flow Fair Value Trading Total March 31, December 31, March 31, December March 31, December March 31, December 2016 2015 2016 2015 2016 2015 2016 2015 Notional Values Interest rate swaps $ 1,106,847 $ 1,109,933 $ 3,808,016 $ 3,080,167 $ 1,215,900 $ 1,305,757 $ 6,130,763 $ 5,495,857 Impact of Derivatives on the Consolidated Statements of Income Three Months Ended March 31, 2016 2015 Fair Value Hedges Interest rate swaps: Hedge ineffectiveness gains (losses) recorded in earnings (1) $ (2,416 ) $ 427 Realized gains recorded in interest expense 7,258 7,491 Total $ 4,842 $ 7,918 Cash Flow Hedges Interest rate swaps: Hedge ineffectiveness gains (losses) recorded in earnings (1) $ (278 ) $ (304 ) Realized losses recorded in interest expense (4,621 ) (5,353 ) Total $ (4,899 ) $ (5,657 ) Trading Interest rate swaps: Interest reclassification $ 688 $ 1,023 Change in fair value of future interest payments recorded in earnings 1,653 2,146 Total (1) 2,341 3,169 Total $ 2,284 $ 5,430 ________ (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 March 31, 2016 2015 Amount of loss recognized in other comprehensive income $ (28,995 ) $ (21,042 ) Less: amount of loss reclassified in interest expense (1) (4,621 ) (5,353 ) Total change in other comprehensive income for unrealized losses on derivatives, before income tax benefit $ (24,374 ) $ (15,689 ) ___________ (1) Amounts included in “realized gains (losses) recorded in interest expense” in the “Impact of Derivatives on the Consolidated Statements of Income” table. Cash Collateral Cash collateral held related to derivative exposure between the Company and its derivatives counterparties was $19.7 million and $1.1 million at March 31, 2016 and December 31, 2015, respectively. Collateral held is recorded in “Other Liabilities” on the consolidated balance sheets. Cash collateral pledged related to derivative exposure between the Company and its derivatives counterparties was $58.5 million and $54.8 million at March 31, 2016 and December 31, 2015, respectively. Collateral pledged is recorded in “Other interest-earning assets” on the consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders' Equity The following table summarizes our common share repurchases and issuances. Three Months Ended March 31, (Shares and per share amounts in actuals) 2016 2015 Shares repurchased related to employee stock-based compensation plans (1)(2) 1,128,709 1,389,096 Average purchase price per share $ 5.98 $ 9.46 Common shares issued (3) 2,740,979 3,130,839 __________________ (1) Comprised of shares withheld from stock option exercises and vesting of restricted stock for employees’ tax withholding obligations and shares tendered by employees to satisfy option exercise costs. (2) At the present time, we do not intend to initiate a publicly announced share repurchase program. (3) Common shares issued under our various compensation and benefit plans. The closing price of our common stock on March 31, 2016 was $ 6.36 . |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, (In thousands, except per share data) 2016 2015 Numerator: Net income attributable to SLM Corporation $ 65,915 $ 47,699 Preferred stock dividends 5,139 4,823 Net income attributable to SLM Corporation common stock $ 60,776 $ 42,876 Denominator: Weighted average shares used to compute basic EPS 427,111 424,428 Effect of dilutive securities: Dilutive effect of stock options, restricted stock and restricted stock units and Employee Stock Purchase Plan ("ESPP") (1)(2) 3,792 7,874 Weighted average shares used to compute diluted EPS 430,903 432,302 Basic earnings per common share attributable to SLM Corporation $ 0.14 $ 0.10 Diluted earnings per common share attributable to SLM Corporation $ 0.14 $ 0.10 _________________ (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 March 31, 2016 and 2015, securities covering approximately 6 million and 2 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 | 3 Months Ended |
Mar. 31, 2016 | |
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 2015 Form 10-K. During the three months ended March 31, 2016, 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 March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Mortgage-backed securities $ — $ 203,597 $ — $ 203,597 $ — $ 195,391 $ — $ 195,391 Derivative instruments — 52,007 — 52,007 — 15,314 — 15,314 Total $ — $ 255,604 $ — $ 255,604 $ — $ 210,705 $ — $ 210,705 Liabilities Derivative instruments $ — $ (52,250 ) $ — $ (52,250 ) $ — $ (30,497 ) $ — $ (30,497 ) Total $ — $ (52,250 ) $ — $ (52,250 ) $ — $ (30,497 ) $ — $ (30,497 ) The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. March 31, 2016 December 31, 2015 Fair Value Carrying Value Difference Fair Value Carrying Value Difference Earning assets Loans held for investment, net $ 13,911,665 $ 13,108,425 $ 803,240 $ 12,343,726 $ 11,630,591 $ 713,135 Cash and cash equivalents 938,480 938,480 — 2,416,219 2,416,219 — Available-for-sale investments 203,597 203,597 — 195,391 195,391 — Accrued interest receivable 650,813 650,813 — 564,496 564,496 — Tax indemnification receivable 187,156 187,156 — 186,076 186,076 — Derivative instruments 52,007 52,007 — 15,314 15,314 — Total earning assets $ 15,943,718 $ 15,140,478 $ 803,240 $ 15,721,222 $ 15,008,087 $ 713,135 Interest-bearing liabilities Money-market and savings accounts $ 5,805,018 $ 5,805,018 $ — $ 5,556,254 $ 5,556,254 $ — Certificates of deposit 5,757,232 5,737,374 (19,858 ) 5,928,450 5,931,453 3,003 Short-term borrowings 526,500 526,500 — 500,175 500,175 — Long-term borrowings 555,365 558,513 3,148 567,468 579,101 11,633 Accrued interest payable 25,464 25,464 — 16,385 16,385 — Derivative instruments 52,250 52,250 — 30,497 30,497 — Total interest-bearing liabilities $ 12,721,829 $ 12,705,119 $ (16,710 ) $ 12,599,229 $ 12,613,865 $ 14,636 Excess of net asset fair value over carrying value $ 786,530 $ 727,771 Please refer to Note 15, “Fair Value Measurements” in our 2015 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 | 3 Months Ended |
Mar. 31, 2016 | |
Related Party Transactions [Abstract] | |
Arrangements with Navient Corporation | Arrangements with Navient Corporation In connection with the separation of Navient Corporation (“Navient”) from SLM Corporation (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 2015 Form 10-K for a full discussion of these agreements. Amended Loan Participation and Purchase Agreement Prior to the Spin-Off, Sallie Mae Bank, a Utah industrial bank subsidiary of the Company (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 six months of administrative forbearance; or (4) have a borrower or cosigner who has filed for bankruptcy. At March 31, 2016, we held approximately $82 million of Split Loans. During the three months ended March 31, 2016, the Bank sold loans to the Purchasers in the amount of $ 5.5 million in principal and $ 0.1 million in accrued interest income. During the three months ended March 31, 2015, the Bank sold loans to the Purchasers in the amount of $ 8.7 million in principal and $ 0.2 million in accrued interest income. There was no gain as a result of the loans sold to the Purchasers in the three months ended March 31, 2016 and March 31, 2015. Total write-downs to fair value for loans sold with a fair value lower than par totaled $2.1 million and $2.2 million in the three months ended March 31, 2016 and March 31, 2015, respectively. Navient is the servicer for all of these loans. |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | 6.5 % Tier 1 Capital (to Risk-Weighted Assets) $ 1,800,069 13.4 % $ 1,072,608 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 1,926,465 14.4 % $ 1,340,761 > 10.0 % Tier 1 Capital (to Average Assets) $ 1,800,069 11.9 % $ 758,944 > 5.0 % As of December 31, 2015: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 1,734,315 14.4 % $ 781,638 > 6.5 % Tier 1 Capital (to Risk-Weighted Assets) $ 1,734,315 14.4 % $ 962,017 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 1,848,528 15.4 % $ 1,202,521 > 10.0 % Tier 1 Capital (to Average Assets) $ 1,734,315 12.3 % $ 704,979 > 5.0 % Bank Dividends The Bank is chartered under the laws of the State of Utah and its deposits are insured by the FDIC. The Bank’s ability to pay dividends is subject to the laws of Utah and the regulations of the FDIC. Generally, under Utah’s industrial bank laws and regulations as well as FDIC regulations, the Bank may pay dividends from its net profits without regulatory approval if, following the payment of the dividend, the Bank’s capital and surplus would not be impaired. The Bank paid no dividends for the three months ended March 31, 2016 and March 31, 2015." id="sjs-B4">Regulatory Capital The Bank is subject to various regulatory capital requirements administered by federal and state 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 business, results of operation and financial condition. Under the Basel III capital framework (“U.S. Basel III”) and the regulatory framework for prompt corrective action, the Bank must meet specific capital standards that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and its classification under the prompt corrective action framework are also subject to qualitative judgments by the regulators about components of capital, risk weightings and other factors. As of January 1, 2015, the Bank was required to report regulatory capital and ratios in accordance with U.S. Basel III. Among other things, U.S. Basel III establishes Common Equity Tier 1 as a new tier of capital, modifies methods for calculating risk-weighted assets, introduces a new capital conservation buffer, and revises the capital thresholds of the prompt corrective action framework, including the “well capitalized” standard. “Well capitalized” regulatory requirements are the quantitative measures established by regulation to ensure capital adequacy. To qualify as “well capitalized,” the Bank must maintain minimum amounts and ratios (set forth in the table below) of Common Equity Tier 1, Tier 1 and Total capital to risk-weighted assets and of Tier 1 capital to average assets. The following capital amounts and ratios are based upon the Bank's assets. Actual "Well Capitalized" Regulatory Requirements Amount Ratio Amount Ratio As of March 31, 2016: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 1,800,069 13.4 % $ 871,494 > 6.5 % Tier 1 Capital (to Risk-Weighted Assets) $ 1,800,069 13.4 % $ 1,072,608 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 1,926,465 14.4 % $ 1,340,761 > 10.0 % Tier 1 Capital (to Average Assets) $ 1,800,069 11.9 % $ 758,944 > 5.0 % As of December 31, 2015: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 1,734,315 14.4 % $ 781,638 > 6.5 % Tier 1 Capital (to Risk-Weighted Assets) $ 1,734,315 14.4 % $ 962,017 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 1,848,528 15.4 % $ 1,202,521 > 10.0 % Tier 1 Capital (to Average Assets) $ 1,734,315 12.3 % $ 704,979 > 5.0 % Bank Dividends The Bank is chartered under the laws of the State of Utah and its deposits are insured by the FDIC. The Bank’s ability to pay dividends is subject to the laws of Utah and the regulations of the FDIC. Generally, under Utah’s industrial bank laws and regulations as well as FDIC regulations, the Bank may pay dividends from its net profits without regulatory approval if, following the payment of the dividend, the Bank’s capital and surplus would not be impaired. The Bank paid no dividends for the three months ended March 31, 2016 and March 31, 2015. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016, we had $ 429 million of outstanding contractual loan commitments which we expect to fund during the remainder of the 2015/2016 academic year. At March 31, 2016, we had a $ 0.1 million reserve recorded in "Other Liabilities" to cover expected losses that we conclude are probable to occur during the one year loss emergence period on these unfunded commitments. Regulatory Matters At the time of this filing, the Bank remains subject to a Consent Order, Order to Pay Restitution and Order to Pay Civil Money Penalty dated May 13, 2014 issued by the FDIC (the “FDIC Consent Order”). On May 13, 2014, the Bank reached settlements with the FDIC and the Department of Justice (the “DOJ”) regarding disclosures and assessments of certain late fees, as well as compliance with the Servicemembers Civil Relief Act (“SCRA”). The DOJ Consent Order (the “DOJ Consent Order”) was approved by the U.S. District Court for the District of Delaware on September 29, 2014. Under the FDIC Consent Order, the Bank agreed to pay $3.3 million in fines and oversee the refund of up to $30 million in late fees assessed on loans owned or originated by the Bank since its inception in November 2005. Under the terms of the Separation and Distribution Agreement between the Company and Navient, Navient is responsible for funding all liabilities under the regulatory orders, other than fines directly levied against the Bank in connection with these matters. Under the DOJ Consent Order, Navient is solely responsible for reimbursing SCRA benefits and related compensation on behalf of both its subsidiary, Navient Solutions, Inc., and the Bank. As required by the FDIC Consent Order and the DOJ Consent Order, the Bank has 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 regards. The FDIC Consent Order also requires the Bank to have its current compliance with consumer protection regulations and its compliance management system audited by independent qualified audit personnel. The Bank is focused on sustaining timely and comprehensive remediation of each item contained in the orders and on further enhancing its policies and practices to promote responsible financial practices, customer experience and compliance. In May 2014, the Bank received a Civil Investigative Demand (“CID”) from the Consumer Financial Protection Bureau (the “CFPB”) as part of the CFPB’s separate investigation relating to customer complaints, fees and charges assessed in connection with the servicing of student loans and related collection practices of pre-Spin-Off SLM Corporation (“pre-Spin-Off SLM”) by entities now subsidiaries of Navient during a time period prior to the Spin-Off. Two state attorneys general have provided the Bank identical CIDs and others have become involved in the inquiry over time. To the extent requested, we have been cooperating fully with the CFPB and the attorneys general but are not in a position at this time to predict the duration or outcome of the investigation. Given the timeframe covered by this demand and the focus on practices and procedures previously conducted by Navient and its servicing subsidiaries, Navient is leading the response to this investigation and has accepted responsibility for all costs, expenses, losses or remediation that may arise from this investigation. Contingencies In the ordinary course of business, we and our subsidiaries are routinely defendants in or parties to pending and threatened legal actions and proceedings, including actions brought on behalf of various classes of claimants. These actions and proceedings may be based on alleged violations of consumer protection, securities, employment and other laws. In certain of these actions and proceedings, claims for substantial monetary damage may be asserted against us and our subsidiaries. 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. 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 for which reserves should be established. |
Significant Accounting Polici21
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited, consolidated financial statements of SLM Corporation (“Sallie Mae,” “SLM,” the “Company,” “we,” or “us”) 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 months ended March 31, 2016 are not necessarily indicative of the results for the year ending December 31, 2016 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, 2015 (the “2015 Form 10-K”). |
Consolidation | 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. We consolidate any variable interest entity (“VIE”) where we have determined we are the primary beneficiary. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. |
Recently Issued but Not Yet Adopted Accounting Pronouncements | Recently Issued but Not Yet Adopted Accounting Pronouncements On February 25, 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-02, “Leases,” a comprehensive new lease standard which will supersede previous lease guidance. The standard requires a lessee to recognize in its balance sheet assets and liabilities related to long-term leases that were classified as operating leases under previous guidance. An asset will be recognized related to the right to use the underlying asset and a liability will be recognized related to the obligation to make lease payments over the term of the lease. The standard also requires expanded disclosures surrounding leases. The standard is effective for fiscal periods beginning after December 15, 2018, and requires modified retrospective adoption, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements and related disclosures. On March 30, 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which amends the current stock compensation guidance. The amendments simplify the accounting for the taxes related to stock based compensation, including adjustments to how excess tax benefits and a company's payments for tax withholdings should be classified. The standard is effective for fiscal periods beginning after December 15, 2016, with early adoption permitted. We are currently evaluating the impact of the adoption of this standard on our consolidated financial statements. |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Loans held for investment | Loans held for investment are summarized as follows: March 31, December 31, 2016 2015 Private Education Loans $ 12,111,870 $ 10,596,437 Deferred origination costs 31,772 27,884 Allowance for loan losses (122,620 ) (108,816 ) Total Private Education Loans, net 12,021,022 10,515,505 FFELP Loans 1,088,026 1,115,663 Unamortized acquisition costs, net 3,006 3,114 Allowance for loan losses (3,629 ) (3,691 ) Total FFELP Loans, net 1,087,403 1,115,086 Loans held for investment, net $ 13,108,425 $ 11,630,591 The average balance and the respective weighted average interest rates of education loans in our portfolio are summarized as follows: Three Months Ended March 31, 2016 2015 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 11,817,708 8.03 % $ 9,454,579 8.07 % FFELP Loans 1,103,253 3.42 1,234,682 3.19 Total portfolio $ 12,920,961 $ 10,689,261 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Receivables [Abstract] | |
Allowance for credit losses and recorded investments in loans | Allowance for Loan Losses Metrics Allowance for Loan Losses Three Months Ended March 31, 2016 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 3,691 $ 108,816 $ 112,507 Total provision 321 33,839 34,160 Net charge-offs: Charge-offs (383 ) (19,004 ) (19,387 ) Recoveries — 1,044 1,044 Net charge-offs (383 ) (17,960 ) (18,343 ) Loan sales (1) — (2,075 ) (2,075 ) Ending Balance $ 3,629 $ 122,620 $ 126,249 Allowance: Ending balance: individually evaluated for impairment $ — $ 49,212 $ 49,212 Ending balance: collectively evaluated for impairment $ 3,629 $ 73,408 $ 77,037 Loans: Ending balance: individually evaluated for impairment $ — $ 318,094 $ 318,094 Ending balance: collectively evaluated for impairment $ 1,088,026 $ 11,793,776 $ 12,881,802 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.19 % 0.95 % Allowance as a percentage of the ending total loan balance 0.33 % 1.01 % Allowance as a percentage of the ending loans in repayment (2) 0.45 % 1.56 % Allowance coverage of net charge-offs (annualized) 2.37 1.71 Ending total loans, gross $ 1,088,026 $ 12,111,870 Average loans in repayment (2) $ 804,690 $ 7,534,234 Ending loans in repayment (2) $ 803,378 $ 7,843,076 ____________ (1) Represents fair value adjustments on loans sold. (2) Loans in repayment include loans on which borrowers are 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 March 31, 2015 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 5,268 $ 78,574 $ 83,842 Total provision 435 16,183 16,618 Net charge-offs: Charge-offs (1,134 ) (8,727 ) (9,861 ) Recoveries — 1,387 1,387 Net charge-offs (1,134 ) (7,340 ) (8,474 ) Loan sales (1) — (2,181 ) (2,181 ) Ending Balance $ 4,569 $ 85,236 $ 89,805 Allowance: Ending balance: individually evaluated for impairment $ — $ 20,105 $ 20,105 Ending balance: collectively evaluated for impairment $ 4,569 $ 65,131 $ 69,700 Loans: Ending balance: individually evaluated for impairment $ — $ 122,120 $ 122,120 Ending balance: collectively evaluated for impairment $ 1,208,977 $ 9,646,641 $ 10,855,618 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.50 % 0.51 % Allowance as a percentage of the ending total loan balance 0.38 % 0.87 % Allowance as a percentage of the ending loans in repayment (2) 0.52 % 1.42 % Allowance coverage of net charge-offs (annualized) 1.01 2.90 Ending total loans, gross $ 1,208,977 $ 9,768,761 Average loans in repayment (2) $ 898,360 $ 5,705,067 Ending loans in repayment (2) $ 872,579 $ 5,995,121 ____________ (1) Represents fair value adjustments on loans sold. (2) Loans in repayment include loans on which borrowers making interest only and fixed payments as well as loans that have entered full principal and interest repayment status. |
Impaired financing receivables | The following table provides the recorded investment, unpaid principal balance and related allowance for our TDR loans. Recorded Investment Unpaid Principal Balance Allowance March 31, 2016 TDR Loans $ 322,744 $ 318,094 $ 49,212 December 31, 2015 TDR Loans $ 269,628 $ 265,831 $ 43,480 |
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 March 31, 2016 March 31, 2015 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 297,315 $ 5,583 $ 88,120 $ 2,396 |
Age analysis of past due loans delinquencies | The following table provides information regarding the loan status of our 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 March 31, December 31, 2016 2015 Balance % Balance % Loans in-school/grace/deferment (1) $ 4,027,332 $ 3,427,964 Loans in forbearance (2) 241,462 241,207 Loans in repayment and percentage of each status: Loans current 7,678,446 97.9 % 6,773,095 97.8 % Loans delinquent 31-60 days (3) 78,242 1.0 91,129 1.3 Loans delinquent 61-90 days (3) 56,906 0.7 42,048 0.6 Loans delinquent greater than 90 days (3) 29,482 0.4 20,994 0.3 Total Private Education Loans in repayment 7,843,076 100.0 % 6,927,266 100.0 % Total Private Education loans, gross 12,111,870 10,596,437 Private Education Loans deferred origination costs 31,772 27,884 Total Private Education Loans 12,143,642 10,624,321 Private Education Loans allowance for losses (122,620 ) (108,816 ) Private Education Loans, net $ 12,021,022 $ 10,515,505 Percentage of Private Education Loans in repayment 64.8 % 65.4 % Delinquencies as a percentage of Private Education Loans in repayment 2.1 % 2.2 % Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance 3.0 % 3.4 % (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. March 31, December 31, 2016 2015 Balance % Balance % TDR loans in in-school/grace/deferment (1) $ 10,738 $ 6,869 TDR loans in forbearance (2) 42,699 43,756 TDR loans in repayment (3) and percentage of each status: Loans current 232,720 88.0 % 185,936 86.4 % Loans delinquent 31-60 days (4) 13,610 5.1 14,948 6.9 Loans delinquent 61-90 days (4) 11,109 4.2 9,239 4.3 Loans delinquent greater than 90 days (4) 7,218 2.7 5,083 2.4 Total TDR loans in repayment 264,657 100.0 % 215,206 100.0 % Total TDR loans, gross $ 318,094 $ 265,831 _____ (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) Loans in repayment include loans on which borrowers are making interest only and fixed payments as well as loans that have entered full principal and interest repayment status. (4) The period of delinquency is based on the number of days scheduled payments are contractually past due. |
Modified loans accounts for troubled debt restructuring | The following table provides the amount of modified loans (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 March 31, 2016 March 31, 2015 Modified Loans (1) Charge-offs Payment- Default Modified Loans (1) Charge-offs Payment- Default TDR Loans $ 61,006 $ 4,968 $ 25,671 $ 122,120 $ 930 $ 4,785 _____ (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 March 31, 2016 December 31, 2015 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance Cosigners: With cosigner $ 10,914,736 90 % $ 9,515,136 90 % Without cosigner 1,197,134 10 1,081,301 10 Total $ 12,111,870 100 % $ 10,596,437 100 % FICO at Origination: Less than 670 $ 781,804 6 % $ 700,779 7 % 670-699 1,768,651 15 1,554,959 15 700-749 3,909,444 32 3,403,823 32 Greater than or equal to 750 5,651,971 47 4,936,876 46 Total $ 12,111,870 100 % $ 10,596,437 100 % Seasoning (2) : 1-12 payments $ 3,664,441 30 % $ 3,059,901 29 % 13-24 payments 2,255,999 19 2,096,412 20 25-36 payments 1,171,202 10 1,084,818 10 37-48 payments 549,855 4 513,125 5 More than 48 payments 443,041 4 414,217 4 Not yet in repayment 4,027,332 33 3,427,964 32 Total $ 12,111,870 100 % $ 10,596,437 100 % (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 Private Education Loan portfolio for all periods presented. Private Education Loan Accrued Interest Receivable Total Interest Receivable Greater Than 90 Days Past Due Allowance for Uncollectible Interest March 31, 2016 $ 619,226 $ 1,034 $ 3,074 December 31, 2015 $ 542,919 $ 791 $ 3,332 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of deposits | The following table summarizes total deposits at March 31, 2016 and December 31, 2015. March 31, December 31, 2016 2015 Deposits - interest bearing $ 11,542,392 $ 11,487,006 Deposits - non-interest bearing 963 701 Total deposits $ 11,543,355 $ 11,487,707 |
Interest bearing deposits | Interest bearing deposits at March 31, 2016 and December 31, 2015 are summarized as follows: March 31, 2016 December 31, 2015 Amount Qtr.-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 5,125,507 1.22 % $ 4,886,299 1.19 % Savings 679,511 0.82 669,254 0.82 Certificates of deposit 5,737,374 1.19 5,931,453 0.98 Deposits - interest bearing $ 11,542,392 $ 11,487,006 ____________ (1) Includes the effect of interest rate swaps in effective hedge relationships. |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The following table summarizes our secured borrowings at March 31, 2016 and December 31, 2015. March 31, 2016 December 31, 2015 Short-Term Long-Term Total Short-Term Long-Term Total Secured borrowings: Private Education Loan term securitization $ — $ 558,513 $ 558,513 $ — $ 579,101 $ 579,101 ABCP Facility 526,500 — 526,500 500,175 — 500,175 Total $ 526,500 $ 558,513 $ 1,085,013 $ 500,175 $ 579,101 $ 1,079,276 |
Schedule of securities financing transactions | Secured Financings at Issuance 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 at inception of the above on-balance sheet term securitization $ 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 the following financing VIEs as of March 31, 2016 and December 31, 2015, respectively: March 31, 2016 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets (1) Total Secured borrowings: Private Education Loan term securitization $ — $ 558,513 $ 558,513 $ 671,603 $ 10,281 $ 46,305 $ 728,189 ABCP Facility 526,500 — 526,500 902,049 15,567 91,713 1,009,329 Total $ 526,500 $ 558,513 $ 1,085,013 $ 1,573,652 $ 25,848 $ 138,018 $ 1,737,518 ____ (1) Other assets primarily represents accrued interest receivable. December 31, 2015 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets (1) Total Secured borrowings: Private Education Loan term securitization $ — $ 579,101 $ 579,101 $ 687,298 $ 9,996 $ 45,566 $ 742,860 ABCP Facility 500,175 — 500,175 923,687 12,443 58,095 994,225 Total $ 500,175 $ 579,101 $ 1,079,276 $ 1,610,985 $ 22,439 $ 103,661 $ 1,737,085 ____ (1) Other assets primarily represents accrued interest receivable. |
Derivative Financial Instrume26
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Impact of derivatives on the consolidated balance sheet | The following tables summarize the fair values and notional amounts of all derivative instruments at March 31, 2016 and December 31, 2015, and their impact on earnings and other comprehensive income for the three months ended March 31, 2016 and 2015. Please refer to Note 11, “Derivative Financial Instruments” in our 2015 Form 10-K for a full discussion of cash flow hedges, fair value hedges, and trading activities. Impact of Derivatives on the Consolidated Balance Sheet Cash Flow Hedges Fair Value Hedges Trading Total March 31, December 31, March 31, December March 31, December March 31, December 2016 2015 2016 2015 2016 2015 2016 2015 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ — $ — $ 50,782 $ 15,231 $ 1,225 $ 83 $ 52,007 $ 15,314 Derivative Liabilities: (2) Interest rate swaps Interest rate (51,955 ) (27,512 ) (160 ) (2,339 ) (135 ) (646 ) (52,250 ) (30,497 ) Total net derivatives $ (51,955 ) $ (27,512 ) $ 50,622 $ 12,892 $ 1,090 $ (563 ) $ (243 ) $ (15,183 ) ___________ (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 March 31, December 31, March 31, December 31, 2016 2015 2016 2015 Gross position (1) $ 52,007 $ 15,314 $ (52,250 ) $ (30,497 ) Impact of master netting agreement (14,205 ) (9,278 ) 14,205 9,278 Derivative values with impact of master netting agreements (as carried on balance sheet) 37,802 6,036 (38,045 ) (21,219 ) Cash collateral (held) pledged (19,692 ) (1,070 ) 58,451 54,845 Net position $ 18,110 $ 4,966 $ 20,406 $ 33,626 __________ (1) Gross position amounts are exclusive of accrued interest. |
Offsetting assets | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities March 31, December 31, March 31, December 31, 2016 2015 2016 2015 Gross position (1) $ 52,007 $ 15,314 $ (52,250 ) $ (30,497 ) Impact of master netting agreement (14,205 ) (9,278 ) 14,205 9,278 Derivative values with impact of master netting agreements (as carried on balance sheet) 37,802 6,036 (38,045 ) (21,219 ) Cash collateral (held) pledged (19,692 ) (1,070 ) 58,451 54,845 Net position $ 18,110 $ 4,966 $ 20,406 $ 33,626 __________ (1) Gross position amounts are exclusive of accrued interest. |
Offsetting liabilities | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities March 31, December 31, March 31, December 31, 2016 2015 2016 2015 Gross position (1) $ 52,007 $ 15,314 $ (52,250 ) $ (30,497 ) Impact of master netting agreement (14,205 ) (9,278 ) 14,205 9,278 Derivative values with impact of master netting agreements (as carried on balance sheet) 37,802 6,036 (38,045 ) (21,219 ) Cash collateral (held) pledged (19,692 ) (1,070 ) 58,451 54,845 Net position $ 18,110 $ 4,966 $ 20,406 $ 33,626 __________ (1) Gross position amounts are exclusive of accrued interest. |
Schedule of notional amounts of outstanding derivative positions | Cash Flow Fair Value Trading Total March 31, December 31, March 31, December March 31, December March 31, December 2016 2015 2016 2015 2016 2015 2016 2015 Notional Values Interest rate swaps $ 1,106,847 $ 1,109,933 $ 3,808,016 $ 3,080,167 $ 1,215,900 $ 1,305,757 $ 6,130,763 $ 5,495,857 |
Derivative instruments, gain (loss) | Impact of Derivatives on the Consolidated Statements of Income Three Months Ended March 31, 2016 2015 Fair Value Hedges Interest rate swaps: Hedge ineffectiveness gains (losses) recorded in earnings (1) $ (2,416 ) $ 427 Realized gains recorded in interest expense 7,258 7,491 Total $ 4,842 $ 7,918 Cash Flow Hedges Interest rate swaps: Hedge ineffectiveness gains (losses) recorded in earnings (1) $ (278 ) $ (304 ) Realized losses recorded in interest expense (4,621 ) (5,353 ) Total $ (4,899 ) $ (5,657 ) Trading Interest rate swaps: Interest reclassification $ 688 $ 1,023 Change in fair value of future interest payments recorded in earnings 1,653 2,146 Total (1) 2,341 3,169 Total $ 2,284 $ 5,430 ________ (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 March 31, 2016 2015 Amount of loss recognized in other comprehensive income $ (28,995 ) $ (21,042 ) Less: amount of loss reclassified in interest expense (1) (4,621 ) (5,353 ) Total change in other comprehensive income for unrealized losses on derivatives, before income tax benefit $ (24,374 ) $ (15,689 ) ___________ (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) | 3 Months Ended |
Mar. 31, 2016 | |
Equity [Abstract] | |
Schedule of common share repurchases | The following table summarizes our common share repurchases and issuances. Three Months Ended March 31, (Shares and per share amounts in actuals) 2016 2015 Shares repurchased related to employee stock-based compensation plans (1)(2) 1,128,709 1,389,096 Average purchase price per share $ 5.98 $ 9.46 Common shares issued (3) 2,740,979 3,130,839 __________________ (1) Comprised of shares withheld from stock option exercises and vesting of restricted stock for employees’ tax withholding obligations and shares tendered by employees to satisfy option exercise costs. (2) At the present time, we do not intend to initiate a publicly announced share repurchase program. (3) Common shares issued under our various compensation and benefit plans. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, (In thousands, except per share data) 2016 2015 Numerator: Net income attributable to SLM Corporation $ 65,915 $ 47,699 Preferred stock dividends 5,139 4,823 Net income attributable to SLM Corporation common stock $ 60,776 $ 42,876 Denominator: Weighted average shares used to compute basic EPS 427,111 424,428 Effect of dilutive securities: Dilutive effect of stock options, restricted stock and restricted stock units and Employee Stock Purchase Plan ("ESPP") (1)(2) 3,792 7,874 Weighted average shares used to compute diluted EPS 430,903 432,302 Basic earnings per common share attributable to SLM Corporation $ 0.14 $ 0.10 Diluted earnings per common share attributable to SLM Corporation $ 0.14 $ 0.10 _________________ (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 March 31, 2016 and 2015, securities covering approximately 6 million and 2 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) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Mortgage-backed securities $ — $ 203,597 $ — $ 203,597 $ — $ 195,391 $ — $ 195,391 Derivative instruments — 52,007 — 52,007 — 15,314 — 15,314 Total $ — $ 255,604 $ — $ 255,604 $ — $ 210,705 $ — $ 210,705 Liabilities Derivative instruments $ — $ (52,250 ) $ — $ (52,250 ) $ — $ (30,497 ) $ — $ (30,497 ) Total $ — $ (52,250 ) $ — $ (52,250 ) $ — $ (30,497 ) $ — $ (30,497 ) |
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. March 31, 2016 December 31, 2015 Fair Value Carrying Value Difference Fair Value Carrying Value Difference Earning assets Loans held for investment, net $ 13,911,665 $ 13,108,425 $ 803,240 $ 12,343,726 $ 11,630,591 $ 713,135 Cash and cash equivalents 938,480 938,480 — 2,416,219 2,416,219 — Available-for-sale investments 203,597 203,597 — 195,391 195,391 — Accrued interest receivable 650,813 650,813 — 564,496 564,496 — Tax indemnification receivable 187,156 187,156 — 186,076 186,076 — Derivative instruments 52,007 52,007 — 15,314 15,314 — Total earning assets $ 15,943,718 $ 15,140,478 $ 803,240 $ 15,721,222 $ 15,008,087 $ 713,135 Interest-bearing liabilities Money-market and savings accounts $ 5,805,018 $ 5,805,018 $ — $ 5,556,254 $ 5,556,254 $ — Certificates of deposit 5,757,232 5,737,374 (19,858 ) 5,928,450 5,931,453 3,003 Short-term borrowings 526,500 526,500 — 500,175 500,175 — Long-term borrowings 555,365 558,513 3,148 567,468 579,101 11,633 Accrued interest payable 25,464 25,464 — 16,385 16,385 — Derivative instruments 52,250 52,250 — 30,497 30,497 — Total interest-bearing liabilities $ 12,721,829 $ 12,705,119 $ (16,710 ) $ 12,599,229 $ 12,613,865 $ 14,636 Excess of net asset fair value over carrying value $ 786,530 $ 727,771 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of compliance with regulatory capital requirements under banking regulations | 6.5 % Tier 1 Capital (to Risk-Weighted Assets) $ 1,800,069 13.4 % $ 1,072,608 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 1,926,465 14.4 % $ 1,340,761 > 10.0 % Tier 1 Capital (to Average Assets) $ 1,800,069 11.9 % $ 758,944 > 5.0 % As of December 31, 2015: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 1,734,315 14.4 % $ 781,638 > 6.5 % Tier 1 Capital (to Risk-Weighted Assets) $ 1,734,315 14.4 % $ 962,017 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 1,848,528 15.4 % $ 1,202,521 > 10.0 % Tier 1 Capital (to Average Assets) $ 1,734,315 12.3 % $ 704,979 > 5.0 %" id="sjs-B4">The following capital amounts and ratios are based upon the Bank's assets. Actual "Well Capitalized" Regulatory Requirements Amount Ratio Amount Ratio As of March 31, 2016: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 1,800,069 13.4 % $ 871,494 > 6.5 % Tier 1 Capital (to Risk-Weighted Assets) $ 1,800,069 13.4 % $ 1,072,608 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 1,926,465 14.4 % $ 1,340,761 > 10.0 % Tier 1 Capital (to Average Assets) $ 1,800,069 11.9 % $ 758,944 > 5.0 % As of December 31, 2015: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 1,734,315 14.4 % $ 781,638 > 6.5 % Tier 1 Capital (to Risk-Weighted Assets) $ 1,734,315 14.4 % $ 962,017 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 1,848,528 15.4 % $ 1,202,521 > 10.0 % Tier 1 Capital (to Average Assets) $ 1,734,315 12.3 % $ 704,979 > 5.0 % |
Loans Held for Investment - Add
Loans Held for Investment - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Dec. 31, 2015 | Jul. 01, 2006 | Jun. 30, 2006 | Sep. 30, 1993 | |
Receivables [Abstract] | |||||
Percent of private loans indexed to LIBOR | 81.00% | ||||
Tier 1 of government guarantee (in percentage) | 97.00% | 97.00% | |||
Tier 2 of government guarantee (in percentage) | 98.00% | ||||
Tier 3 of government guarantee (in percentage) | 100.00% | ||||
Estimated weighted average life of student loans (in years) | 6 years 2 months 8 days | 6 years 2 months 12 days |
Loans Held for Investment - Stu
Loans Held for Investment - Student Loan Portfolio by Program (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Private Education Loans | $ 12,111,870 | $ 10,596,437 |
Deferred origination costs | 31,772 | 27,884 |
Allowance for loan losses | (122,620) | (108,816) |
Total Private Education Loans, net | 12,021,022 | 10,515,505 |
FFELP Loans | 1,088,026 | 1,115,663 |
Unamortized acquisition costs, net | 3,006 | 3,114 |
Allowance for loan losses | (3,629) | (3,691) |
Total FFELP Loans, net | 1,087,403 | 1,115,086 |
Loans held for investment, net | $ 13,108,425 | $ 11,630,591 |
Loans Held for Investment - S33
Loans Held for Investment - Student Loan Portfolio Average Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Receivables [Abstract] | ||
Average Balance, Private Education Loans | $ 11,817,708 | $ 9,454,579 |
Average Balance FFELP Loans | 1,103,253 | 1,234,682 |
Average balance, Total portfolio | $ 12,920,961 | $ 10,689,261 |
Weighted Average Interest Rate, Private Education Loans | 8.03% | 8.07% |
Weighted Average Interest Rate FFELP loans | 3.42% | 3.19% |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Allowance for Loan Losses | ||
Beginning balance | $ 112,507 | $ 83,842 |
Total provision | 34,160 | 16,618 |
Net charge-offs: | ||
Charge-offs | (19,387) | (9,861) |
Recoveries | 1,044 | 1,387 |
Net charge-offs | (18,343) | (8,474) |
Loan sales | (2,075) | (2,181) |
Ending Balance | 126,249 | 89,805 |
Allowance: | ||
Ending balance: individually evaluated for impairment | 49,212 | 20,105 |
Ending balance: collectively evaluated for impairment | 77,037 | 69,700 |
Loans: | ||
Ending balance: individually evaluated for impairment | 318,094 | 122,120 |
Ending balance: collectively evaluated for impairment | 12,881,802 | 10,855,618 |
FFELP Loans | ||
Allowance for Loan Losses | ||
Beginning balance | 3,691 | 5,268 |
Total provision | 321 | 435 |
Net charge-offs: | ||
Charge-offs | (383) | (1,134) |
Recoveries | 0 | 0 |
Net charge-offs | (383) | (1,134) |
Loan sales | 0 | 0 |
Ending Balance | 3,629 | 4,569 |
Allowance: | ||
Ending balance: individually evaluated for impairment | 0 | 0 |
Ending balance: collectively evaluated for impairment | 3,629 | 4,569 |
Loans: | ||
Ending balance: individually evaluated for impairment | 0 | 0 |
Ending balance: collectively evaluated for impairment | $ 1,088,026 | $ 1,208,977 |
Net charge-offs as a percentage of average loans in repayment (annualized) | 0.19% | 0.50% |
Allowance as a percentage of the ending total loan balance | 0.33% | 0.38% |
Allowance as a percentage of the ending loans in repayment | 0.45% | 0.52% |
Allowance coverage of net charge-offs (annualized) | 2.37 | 1.01 |
Ending total loans, gross | $ 1,088,026 | $ 1,208,977 |
Average loans in repayment | 804,690 | 898,360 |
Ending loans in repayment | 803,378 | 872,579 |
Private Education Loans | ||
Allowance for Loan Losses | ||
Beginning balance | 108,816 | 78,574 |
Total provision | 33,839 | 16,183 |
Net charge-offs: | ||
Charge-offs | (19,004) | (8,727) |
Recoveries | 1,044 | 1,387 |
Net charge-offs | (17,960) | (7,340) |
Loan sales | (2,075) | (2,181) |
Ending Balance | 122,620 | 85,236 |
Allowance: | ||
Ending balance: individually evaluated for impairment | 49,212 | 20,105 |
Ending balance: collectively evaluated for impairment | 73,408 | 65,131 |
Loans: | ||
Ending balance: individually evaluated for impairment | 318,094 | 122,120 |
Ending balance: collectively evaluated for impairment | $ 11,793,776 | $ 9,646,641 |
Net charge-offs as a percentage of average loans in repayment (annualized) | 0.95% | 0.51% |
Allowance as a percentage of the ending total loan balance | 1.01% | 0.87% |
Allowance as a percentage of the ending loans in repayment | 1.56% | 1.42% |
Allowance coverage of net charge-offs (annualized) | 1.71 | 2.90 |
Ending total loans, gross | $ 12,111,870 | $ 9,768,761 |
Average loans in repayment | 7,534,234 | 5,705,067 |
Ending loans in repayment | $ 7,843,076 | $ 5,995,121 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Jul. 01, 2006 | |
Receivables [Abstract] | |||
Percentage of loans granted forbearance qualified as TDR | 22.00% | 23.00% | |
Criteria for loans to be considered as nonperforming | 90 days | ||
Tier 1 of government guarantee (in percentage) | 97.00% | 97.00% | |
TDR payment default period | 60 days | ||
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Recorded Investment | $ 322,744 | $ 269,628 |
Unpaid Principal Balance | 318,094 | 265,831 |
Allowance | $ 49,212 | $ 43,480 |
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 | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Receivables [Abstract] | ||
Average Recorded Investment | $ 297,315 | $ 88,120 |
Interest Income Recognized | $ 5,583 | $ 2,396 |
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 | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDR loans in in-school/grace/deferment | $ 10,738 | $ 6,869 |
TDR loans in forbearance | 42,699 | 43,756 |
TDR loans in repayment and percentage of each status: | ||
Loans current | 232,720 | 185,936 |
Total TDR loans in repayment | 264,657 | 215,206 |
Total TDR loans, gross | $ 318,094 | $ 265,831 |
Loans current, in percentage | 88.00% | 86.40% |
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 | $ 13,610 | $ 14,948 |
Loans delinquent, in percentage | 5.10% | 6.90% |
Loans delinquent 61-90 days | ||
TDR loans in repayment and percentage of each status: | ||
Loans delinquent | $ 11,109 | $ 9,239 |
Loans delinquent, in percentage | 4.20% | 4.30% |
Loans delinquent greater than 90 days | ||
TDR loans in repayment and percentage of each status: | ||
Loans delinquent | $ 7,218 | $ 5,083 |
Loans delinquent, in percentage | 2.70% | 2.40% |
Allowance for Loan Losses - Mod
Allowance for Loan Losses - Modified Loan Accounts for TDR (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Receivables [Abstract] | ||
Modified Loans | $ 61,006 | $ 122,120 |
Charge-offs | 4,968 | 930 |
Payment-Default | $ 25,671 | $ 4,785 |
Allowance for Loan Losses - Pri
Allowance for Loan Losses - Private Education Loan Portfolio Stratified by Key Credit Quality Indicators (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 12,111,870 | $ 10,596,437 |
Private Education Loans | Cosigners | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans with cosigner | 10,914,736 | 9,515,136 |
Private Education Loans without cosigner | 1,197,134 | 1,081,301 |
Total | $ 12,111,870 | $ 10,596,437 |
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 | $ 12,111,870 | $ 10,596,437 |
Total in percent | 100.00% | 100.00% |
Private Education Loans | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 12,111,870 | $ 10,596,437 |
Total in percent | 100.00% | 100.00% |
Seasoning - based on monthly scheduled payments due from 1-12 payments | $ 3,664,441 | $ 3,059,901 |
Seasoning - based on monthly scheduled payments due from 13-24 payments | 2,255,999 | 2,096,412 |
Seasoning - based on monthly scheduled payments due from 25-36 payments | 1,171,202 | 1,084,818 |
Seasoning - based on monthly scheduled payments due from 37-48 payments | 549,855 | 513,125 |
Seasoning - based on monthly scheduled payments due from more than 48 payments | 443,041 | 414,217 |
Seasoning - based on monthly scheduled payments due from not yet in repayment | $ 4,027,332 | $ 3,427,964 |
Seasoning based on monthly scheduled payments due from 1-12 payments, in percent | 30.00% | 29.00% |
Seasoning based on monthly scheduled payments due from 13 - 24 payments, in percent | 19.00% | 20.00% |
Seasoning based on monthly scheduled payments due from 25 - 36 payments, in percent | 10.00% | 10.00% |
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 | 4.00% | 4.00% |
Seasoning - based on monthly scheduled payments due from not yet in repayment, in percent | 33.00% | 32.00% |
FICO score less than 670 | Private Education Loans | FICO at Origination | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total | $ 781,804 | $ 700,779 |
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 | $ 1,768,651 | $ 1,554,959 |
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 | $ 3,909,444 | $ 3,403,823 |
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 | $ 5,651,971 | $ 4,936,876 |
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 | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | |
Loans in repayment and percentage of each status: | ||||
Private Education Loans allowance for losses | $ (126,249) | $ (112,507) | $ (89,805) | $ (83,842) |
Private Education Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans in-school/grace/deferment | 4,027,332 | 3,427,964 | ||
Loans in forbearance | 241,462 | 241,207 | ||
Loans in repayment and percentage of each status: | ||||
Loans current | 7,678,446 | 6,773,095 | ||
Total Private Education Loans in repayment | 7,843,076 | 6,927,266 | ||
Total Private Education loans, gross | 12,111,870 | 10,596,437 | ||
Private Education Loans deferred origination costs | 31,772 | 27,884 | ||
Total Private Education Loans | 12,143,642 | 10,624,321 | ||
Private Education Loans allowance for losses | (122,620) | (108,816) | $ (85,236) | $ (78,574) |
Private Education Loans, net | $ 12,021,022 | $ 10,515,505 | ||
Loans current, in percentage | 97.90% | 97.80% | ||
Total Private Education Loans in repayment (as a percentage) | 100.00% | 100.00% | ||
Percentage of Private Education Loans in repayment (as a percentage) | 64.80% | 65.40% | ||
Delinquencies as a percentage of Private Education Loans in repayment (as a percentage) | 2.10% | 2.20% | ||
Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance (as a percentage) | 3.00% | 3.40% | ||
Loans delinquent 31-60 days | Private Education Loans | ||||
Loans in repayment and percentage of each status: | ||||
Loans delinquent | $ 78,242 | $ 91,129 | ||
Loans delinquent, in percentage | 1.00% | 1.30% | ||
Loans delinquent 61-90 days | Private Education Loans | ||||
Loans in repayment and percentage of each status: | ||||
Loans delinquent | $ 56,906 | $ 42,048 | ||
Loans delinquent, in percentage | 0.70% | 0.60% | ||
Loans delinquent greater than 90 days | Private Education Loans | ||||
Loans in repayment and percentage of each status: | ||||
Loans delinquent | $ 29,482 | $ 20,994 | ||
Loans delinquent, in percentage | 0.40% | 0.30% |
Allowance for Loan Losses - Acc
Allowance for Loan Losses - Accrued Interest Receivable (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Total Interest Receivable | $ 619,226 | $ 542,919 |
Greater Than 90 Days Past Due | 1,034 | 791 |
Allowance for Uncollectible Interest | $ 3,074 | $ 3,332 |
Deposits - Summary (Details)
Deposits - Summary (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Banking and Thrift [Abstract] | ||
Deposits - interest bearing | $ 11,542,392 | $ 11,487,006 |
Deposits - non-interest bearing | 963 | 701 |
Total deposits | $ 11,543,355 | $ 11,487,707 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
Banking and Thrift [Abstract] | |||
Brokered deposit placement fee | $ 2,600,000 | $ 2,700,000 | |
Third party broker fees paid | 2,800,000 | $ 0 | |
Deposits exceeding FDIC insurance limits | 251,500,000 | $ 709,900,000 | |
Accrued interest on deposits | 24,600,000 | 15,700,000 | |
Deposits - non-interest bearing | $ 963,000 | $ 701,000 |
Deposits - Interest Bearing Dep
Deposits - Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Amount | ||
Money market | $ 5,125,507 | $ 4,886,299 |
Savings | 679,511 | 669,254 |
Certificates of deposit | 5,737,374 | 5,931,453 |
Deposits - interest bearing | $ 11,542,392 | $ 11,487,006 |
Weighted Average Stated Rate | ||
Money market | 1.22% | 1.19% |
Savings | 0.82% | 0.82% |
Certificates of deposit | 1.19% | 0.98% |
Borrowings - Company Borrowings
Borrowings - Company Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Instrument [Line Items] | ||
Short Term | $ 526,500 | $ 500,175 |
Long Term | 558,513 | 579,101 |
Total | 1,085,013 | 1,079,276 |
Private Education Loan securitization | ||
Debt Instrument [Line Items] | ||
Short Term | 0 | 0 |
Long Term | 558,513 | 579,101 |
Total | 558,513 | 579,101 |
ABCP borrowings | ||
Debt Instrument [Line Items] | ||
Short Term | 526,500 | 500,175 |
Long Term | 0 | 0 |
Total | $ 526,500 | $ 500,175 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | Feb. 25, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Dec. 19, 2014 |
Line of Credit Facility [Line Items] | ||||
Short-term borrowings | $ 526,500,000 | $ 500,175,000 | ||
Uncommitted federal funds | 100,000,000 | |||
Lendable value of collateral | 1,500,000,000 | 1,700,000,000 | ||
ABCP borrowings | ||||
Line of Credit Facility [Line Items] | ||||
Short-term borrowings | 526,500,000 | $ 500,175,000 | ||
Loans pledged as collateral | $ 902,000,000 | |||
Contractual maturity | 2 years | |||
Contractual maturity term, revolving period | 1 year | |||
Contractual maturity term, amortization period | 1 year | |||
ABCP borrowings | Commercial Paper | ||||
Line of Credit Facility [Line Items] | ||||
Private asset backed commercial paper education loan funding facility | $ 750,000,000 | $ 750,000,000 | ||
Ownership Interest Percentage | 100.00% | |||
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 | ABCP borrowings | Commercial Paper | ||||
Line of Credit Facility [Line Items] | ||||
Basis spread on variable rate | 1.00% | 0.80% | ||
Minimum | ABCP borrowings | Commercial Paper | ||||
Line of Credit Facility [Line Items] | ||||
Financing cost percentage of unused borrowing capacity | 0.35% | |||
Maximum | ABCP borrowings | Commercial Paper | ||||
Line of Credit Facility [Line Items] | ||||
Financing cost percentage of unused borrowing capacity | 0.45% |
Borrowings - Securitizations (D
Borrowings - Securitizations (Details) - USD ($) $ in Thousands | Jul. 30, 2015 | Dec. 31, 2015 |
Securities Financing Transaction [Line Items] | ||
Total bonds issued | $ 630,800 | |
Total loan amount securitized at inception of the above on-balance sheet term securitization | $ 745,580 | |
2015-B | ||
Securities Financing Transaction [Line Items] | ||
Total bonds issued | $ 630,800 | |
Weighted Average Life | 4 years 9 months 26 days | |
LIBOR | 2015-B | ||
Securities Financing Transaction [Line Items] | ||
Basis spread on variable rate | 1.53% |
Borrowings - Financing VIEs (De
Borrowings - Financing VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Debt Outstanding | ||
Short Term | $ 526,500 | $ 500,175 |
Long Term | 558,513 | 579,101 |
Total | 1,085,013 | 1,079,276 |
Carrying Amount of Assets Securing Debt Outstanding | ||
Restricted Cash | 24,612 | 27,980 |
Other Assets(1) | 70,493 | 55,482 |
Private Education Loan securitization | ||
Debt Outstanding | ||
Short Term | 0 | 0 |
Long Term | 558,513 | 579,101 |
Total | 558,513 | 579,101 |
ABCP Facility | ||
Debt Outstanding | ||
Short Term | 526,500 | 500,175 |
Long Term | 0 | 0 |
Total | 526,500 | 500,175 |
Variable Interest Entity, Primary Beneficiary | ||
Debt Outstanding | ||
Short Term | 526,500 | 500,175 |
Long Term | 558,513 | 579,101 |
Total | 1,085,013 | 1,079,276 |
Carrying Amount of Assets Securing Debt Outstanding | ||
Loans | 1,573,652 | 1,610,985 |
Restricted Cash | 25,848 | 22,439 |
Other Assets(1) | 138,018 | 103,661 |
Total | 1,737,518 | 1,737,085 |
Variable Interest Entity, Primary Beneficiary | Private Education Loan securitization | ||
Debt Outstanding | ||
Short Term | 0 | 0 |
Long Term | 558,513 | 579,101 |
Total | 558,513 | 579,101 |
Carrying Amount of Assets Securing Debt Outstanding | ||
Loans | 671,603 | 687,298 |
Restricted Cash | 10,281 | 9,996 |
Other Assets(1) | 46,305 | 45,566 |
Total | 728,189 | 742,860 |
Variable Interest Entity, Primary Beneficiary | ABCP Facility | ||
Debt Outstanding | ||
Short Term | 526,500 | 500,175 |
Long Term | 0 | 0 |
Total | 526,500 | 500,175 |
Carrying Amount of Assets Securing Debt Outstanding | ||
Loans | 902,049 | 923,687 |
Restricted Cash | 15,567 | 12,443 |
Other Assets(1) | 91,713 | 58,095 |
Total | $ 1,009,329 | $ 994,225 |
Derivative Financial Instrume50
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivative [Line Items] | ||
Net derivatives | $ 60,000 | $ 50,100 |
Cash collateral held | 19,692 | 1,070 |
Cash collateral pledged | 58,451 | $ 54,845 |
Chicago Mercantile Exchange and the London Clearing House | ||
Derivative [Line Items] | ||
Notional value | $ 5,500,000 |
Derivative Financial Instrume51
Derivative Financial Instruments - Impact of Derivatives on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 52,007 | $ 15,314 |
Derivative Liabilities | (52,250) | (30,497) |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 52,007 | 15,314 |
Derivative Liabilities | (52,250) | (30,497) |
Total net derivatives | (243) | (15,183) |
Interest rate swaps | Trading | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 1,225 | 83 |
Derivative Liabilities | (135) | (646) |
Total net derivatives | 1,090 | (563) |
Interest rate swaps | Cash Flow | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | (51,955) | (27,512) |
Total net derivatives | (51,955) | (27,512) |
Interest rate swaps | Fair Value | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 50,782 | 15,231 |
Derivative Liabilities | (160) | (2,339) |
Total net derivatives | $ 50,622 | $ 12,892 |
Derivative Financial Instrume52
Derivative Financial Instruments - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Other Assets | ||
Gross position | $ 52,007 | $ 15,314 |
Impact of master netting agreement | (14,205) | (9,278) |
Derivative values with impact of master netting agreements (as carried on balance sheet) | 37,802 | 6,036 |
Cash collateral (held) pledged | (19,692) | (1,070) |
Net position | 18,110 | 4,966 |
Other Liabilities | ||
Gross position | (52,250) | (30,497) |
Impact of master netting agreement | 14,205 | 9,278 |
Derivative values with impact of master netting agreements (as carried on balance sheet) | (38,045) | (21,219) |
Cash collateral (held) pledged | 58,451 | 54,845 |
Net position | $ 20,406 | $ 33,626 |
Derivative Financial Instrume53
Derivative Financial Instruments - Notional Values (Details) - Interest rate swaps - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Notional values | $ 6,130,763 | $ 5,495,857 |
Trading | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | 1,215,900 | 1,305,757 |
Cash Flow Hedges | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | 1,106,847 | 1,109,933 |
Fair Value Hedges | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | $ 3,808,016 | $ 3,080,167 |
Derivative Financial Instrume54
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statements of Income (Details) - Interest rate swaps - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Trading | ||
Gain (loss) on derivatives, net | $ 2,284 | $ 5,430 |
Designated as Hedging Instrument | Fair Value Hedges | ||
Fair Value Hedges | ||
Hedge ineffectiveness gains (losses) recorded in earnings | (2,416) | 427 |
Realized gains recorded in interest expense | 7,258 | 7,491 |
Trading | ||
Gain (loss) on derivatives, net | 4,842 | 7,918 |
Designated as Hedging Instrument | Cash Flow Hedges | ||
Cash Flow Hedges | ||
Hedge ineffectiveness gains (losses) recorded in earnings | (278) | (304) |
Realized losses recorded in interest expense | (4,621) | (5,353) |
Trading | ||
Gain (loss) on derivatives, net | (4,899) | (5,657) |
Trading | ||
Trading | ||
Interest reclassification | 688 | 1,023 |
Change in fair value of future interest payments recorded in earnings | 1,653 | 2,146 |
Gain (loss) on derivatives, net | $ 2,341 | $ 3,169 |
Derivative Financial Instrume55
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statement of Changes in Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Amount of loss recognized in other comprehensive income | $ (28,995) | $ (21,042) |
Less: amount of loss reclassified in interest expense | (4,621) | (5,353) |
Total change in other comprehensive income for unrealized losses on derivatives, before income tax benefit | $ (24,374) | $ (15,689) |
Stockholders' Equity - Common s
Stockholders' Equity - Common stock repurchased (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Equity [Abstract] | ||
Shares repurchased related to employee stock-based compensation plans (in shares) | 1,128,709 | 1,389,096 |
Average purchase price per share (in dollars per share) | $ 5.98 | $ 9.46 |
Common shares issued (in shares) | 2,740,979 | 3,130,839 |
Stockholders' Equity - Additio
Stockholders' Equity - Additional Detail (Details) | Mar. 31, 2016$ / shares |
Common Stock | |
Class of Stock [Line Items] | |
Common stock closing price (usd per share) | $ 6.36 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Numerator: | ||
Net income attributable to SLM Corporation | $ 65,915 | $ 47,699 |
Preferred stock dividends | 5,139 | 4,823 |
Net income attributable to SLM Corporation common stock | $ 60,776 | $ 42,876 |
Denominator: | ||
Weighted average shares used to compute basic EPS (in shares) | 427,111 | 424,428 |
Effect of dilutive securities: | ||
Dilutive effect of stock options, restricted stock and restricted stock units and Employee Stock Purchase Plan (ESPP) (in shares) | 3,792 | 7,874 |
Weighted average shares used to compute diluted EPS (in shares) | 430,903 | 432,302 |
Basic earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.14 | $ 0.10 |
Diluted earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.14 | $ 0.10 |
Securities excluded from computation of EPS (in shares) | 6,000 | 2,000 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation of Financial Instruments that are Marked-to-Market on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Mortgage-backed securities | $ 203,597 | $ 195,391 |
Derivative instruments | 37,802 | 6,036 |
Liabilities | ||
Derivative instruments | (38,045) | (21,219) |
Fair Value Measurements Recurring | ||
Assets | ||
Mortgage-backed securities | 203,597 | 195,391 |
Derivative instruments | 52,007 | 15,314 |
Total earning assets | 255,604 | 210,705 |
Liabilities | ||
Derivative instruments | (52,250) | (30,497) |
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 | 203,597 | 195,391 |
Derivative instruments | 52,007 | 15,314 |
Total earning assets | 255,604 | 210,705 |
Liabilities | ||
Derivative instruments | (52,250) | (30,497) |
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 | Mar. 31, 2016 | Dec. 31, 2015 |
Earning assets | ||
Tax indemnification receivable | $ 187,156 | $ 186,076 |
Derivative instruments | 37,802 | 6,036 |
Interest-bearing liabilities | ||
Derivative instruments | 38,045 | 21,219 |
Fair Value | ||
Earning assets | ||
Loans held for investment, net | 13,911,665 | 12,343,726 |
Cash and cash equivalents | 938,480 | 2,416,219 |
Available-for-sale investments | 203,597 | 195,391 |
Accrued interest receivable | 650,813 | 564,496 |
Tax indemnification receivable | 187,156 | 186,076 |
Derivative instruments | 52,007 | 15,314 |
Total earning assets | 15,943,718 | 15,721,222 |
Interest-bearing liabilities | ||
Short-term borrowings | 526,500 | 500,175 |
Long-term borrowings | 555,365 | 567,468 |
Accrued interest payable | 25,464 | 16,385 |
Derivative instruments | 52,250 | 30,497 |
Total interest-bearing liabilities | 12,721,829 | 12,599,229 |
Fair Value | Money-market and savings accounts | ||
Interest-bearing liabilities | ||
Deposits | 5,805,018 | 5,556,254 |
Fair Value | Certificates of deposit | ||
Interest-bearing liabilities | ||
Deposits | 5,757,232 | 5,928,450 |
Carrying Value | ||
Earning assets | ||
Loans held for investment, net | 13,108,425 | 11,630,591 |
Cash and cash equivalents | 938,480 | 2,416,219 |
Available-for-sale investments | 203,597 | 195,391 |
Accrued interest receivable | 650,813 | 564,496 |
Tax indemnification receivable | 187,156 | 186,076 |
Derivative instruments | 52,007 | 15,314 |
Total earning assets | 15,140,478 | 15,008,087 |
Interest-bearing liabilities | ||
Short-term borrowings | 526,500 | 500,175 |
Long-term borrowings | 558,513 | 579,101 |
Accrued interest payable | 25,464 | 16,385 |
Derivative instruments | 52,250 | 30,497 |
Total interest-bearing liabilities | 12,705,119 | 12,613,865 |
Carrying Value | Money-market and savings accounts | ||
Interest-bearing liabilities | ||
Deposits | 5,805,018 | 5,556,254 |
Carrying Value | Certificates of deposit | ||
Interest-bearing liabilities | ||
Deposits | 5,737,374 | 5,931,453 |
Difference | ||
Earning assets | ||
Loans held for investment, net | 803,240 | 713,135 |
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 | 803,240 | 713,135 |
Interest-bearing liabilities | ||
Short-term borrowings | 0 | 0 |
Long-term borrowings | 3,148 | 11,633 |
Accrued interest payable | 0 | 0 |
Derivative instruments | 0 | 0 |
Total interest-bearing liabilities | (16,710) | 14,636 |
Excess of net asset fair value over carrying value | 786,530 | 727,771 |
Difference | Money-market and savings accounts | ||
Interest-bearing liabilities | ||
Deposits | 0 | 0 |
Difference | Certificates of deposit | ||
Interest-bearing liabilities | ||
Deposits | $ (19,858) | $ 3,003 |
Arrangements with Navient Cor61
Arrangements with Navient Corporation (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | |
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 | $ 12,021,022,000 | $ 10,515,505,000 | |
Interest income from related party | 100,000 | $ 200,000 | |
Gains on loans to related party | 0 | 0 | |
Write-down to fair value for loans sold to related party | 2,100,000 | 2,200,000 | |
Split Loans | |||
Related Party Transaction [Line Items] | |||
Split loans, net | 82,000,000 | ||
Participated loans | |||
Related Party Transaction [Line Items] | |||
Loans sold to related party | $ 5,500,000 | $ 8,700,000 |
Regulatory Capital - Well Capit
Regulatory Capital - Well Capitalized Regulatory Requirements (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Actual | ||
Common Equity Tier I Capital (to Risk-Weighted Assets) | $ 1,800,069 | $ 1,734,315 |
Tier 1 Capital (to Risk-Weighted Assets) | 1,800,069 | 1,734,315 |
Total Capital (to Risk-Weighted Assets) | 1,926,465 | 1,848,528 |
Tier 1 Capital (to Average Assets) | $ 1,800,069 | $ 1,734,315 |
Actual Ratio | ||
Common Equity Tier I Capital (to Risk-Weighted Assets) | 13.40% | 14.40% |
Tier 1 Capital (to Risk-Weighted Assets) | 13.40% | 14.40% |
Total Capital (to Risk-Weighted Assets) | 14.40% | 15.40% |
Tier 1 Capital (to Average Assets) | 11.90% | 12.30% |
Well Capitalized Regulatory Requirements, Amount | ||
Common Equity Tier I Capital (to Risk-Weighted Assets) | $ 871,494 | $ 781,638 |
Tier 1 Capital (to Risk-Weighted Assets) | 1,072,608 | 962,017 |
Total Capital (to Risk-Weighted Assets) | 1,340,761 | 1,202,521 |
Tier 1 Capital (to Average Assets) | $ 758,944 | $ 704,979 |
Well Capitalized Regulatory Requirements, Ratio | ||
Common Equity Tier I Capital (to Risk-Weighted Assets) | 6.50% | 6.50% |
Tier 1 Capital (to Risk-Weighted Assets) | 8.00% | 8.00% |
Total Capital (to Risk-Weighted Assets) | 10.00% | 10.00% |
Tier 1 Capital (to Average Assets) | 5.00% | 5.00% |
Regulatory Capital - Additional
Regulatory Capital - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Banking and Thrift [Abstract] | ||
Dividends | $ 0 | $ 0 |
Commitments, Contingencies an64
Commitments, Contingencies and Guarantees - Additional Information (Detail) | 3 Months Ended | |
Mar. 31, 2016USD ($)attorney_general | Sep. 30, 2014USD ($) | |
Loss Contingencies [Line Items] | ||
Contractual obligation | $ 429,000,000 | |
Other liabilities reserve | $ 100,000 | |
Loss contingency, loss emergence period | 1 year | |
FDIC civil monetary penalties | $ 3,300,000 | |
Number of Attorney Generals | attorney_general | 2 | |
Maximum | ||
Loss Contingencies [Line Items] | ||
Contingency refund | $ 30,000,000 |