Document and Entity Information
Document and Entity Information - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2016 | Jan. 31, 2017 | Jun. 30, 2016 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
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) | 429,101,108 | ||
Entity Public Float | $ 2.6 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Cash and cash equivalents | $ 1,918,793 | $ 2,416,219 |
Available-for-sale investments at fair value (cost of $211,406 and $196,402, respectively) | 208,603 | 195,391 |
Loans held for investment (net of allowance for losses of $184,701 and $112,507, respectively) | 15,137,922 | 11,630,591 |
Restricted cash and investments | 53,717 | 27,980 |
Other interest-earning assets | 49,114 | 54,845 |
Accrued interest receivable | 766,106 | 564,496 |
Premises and equipment, net | 87,063 | 81,273 |
Tax indemnification receivable | 259,532 | 186,076 |
Other assets | 52,153 | 57,227 |
Total assets | 18,533,003 | 15,214,098 |
Liabilities | ||
Deposits | 13,435,667 | 11,487,707 |
Short-term borrowings | 0 | 500,175 |
Long-term borrowings | 2,167,979 | 579,101 |
Income taxes payable, net | 184,324 | 166,662 |
Upromise member accounts | 256,041 | 275,384 |
Other liabilities | 141,934 | 108,746 |
Total liabilities | 16,185,945 | 13,117,775 |
Commitments and contingencies | ||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | ||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 436.6 million and 430.7 million shares issued, respectively | 87,327 | 86,136 |
Additional paid-in capital | 1,175,564 | 1,135,860 |
Accumulated other comprehensive loss tax benefit | (8,671) | (16,059) |
Retained earnings | 595,322 | 366,609 |
Total SLM Corporation stockholders’ equity before treasury stock | 2,414,542 | 2,137,546 |
Less: Common stock held in treasury at cost: 7.7 million and 4.4 million shares, respectively | (67,484) | (41,223) |
Total equity | 2,347,058 | 2,096,323 |
Total liabilities and equity | 18,533,003 | 15,214,098 |
Series A Preferred Stock | ||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | ||
Preferred stock value outstanding | 165,000 | 165,000 |
Series B Preferred Stock | ||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | ||
Preferred stock value outstanding | $ 400,000 | $ 400,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale investments at fair value | $ 211,406 | $ 196,402 |
Loans held for investment | $ 184,701 | $ 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) | 436,600,000 | 430,700,000 |
Accumulated other comprehensive loss tax benefit | $ (5,364) | $ (9,949) |
Common stock held in treasury | 4,400,000 | 4,400,000 |
Series A Preferred Stock | ||
Preferred stock, stated value (in dollars per share) | $ 50 | $ 50 |
Preferred stock, shares issued (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 issued (in shares) | 4,000,000 | 4,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest income: | |||
Loans | $ 1,060,487 | $ 817,120 | $ 660,792 |
Investments | 9,160 | 10,247 | 8,913 |
Cash and cash equivalents | 7,599 | 3,751 | 4,589 |
Total interest income | 1,077,246 | 831,118 | 674,294 |
Interest expense: | |||
Deposits | 148,408 | 116,391 | 95,774 |
Interest expense on short-term borrowings | 7,322 | 6,490 | 0 |
Interest expense on long-term borrowings | 30,178 | 5,738 | 0 |
Other interest expense | 0 | 0 | 41 |
Total interest expense | 185,908 | 128,619 | 95,815 |
Net interest income | 891,338 | 702,499 | 578,479 |
Less: provisions for credit losses | 159,405 | 90,055 | 85,529 |
Net interest income after provisions for credit losses | 731,933 | 612,444 | 492,950 |
Non-interest income: | |||
Gains on sales of loans, net | 230 | 135,358 | 121,359 |
(Losses) gains on derivatives and hedging activities, net | (958) | 5,300 | (3,996) |
Other income | 69,544 | 41,935 | 39,921 |
Total non-interest income | 68,816 | 182,593 | 157,284 |
Non-interest expenses: | |||
Compensation and benefits | 183,996 | 158,975 | 129,709 |
FDIC assessment fees | 19,209 | 14,348 | 6,150 |
Other operating expenses | 182,202 | 175,772 | 139,022 |
Total operating expenses | 385,407 | 349,095 | 274,881 |
Acquired intangible asset amortization expense | 906 | 1,480 | 3,290 |
Restructuring and other reorganization expenses | 0 | 5,398 | 38,311 |
Total non-interest expenses | 386,313 | 355,973 | 316,482 |
Income before income tax expense | 414,436 | 439,064 | 333,752 |
Income tax expense | 164,109 | 164,780 | 139,967 |
Net income | 250,327 | 274,284 | 193,785 |
Less: net loss attributable to noncontrolling interest | 0 | 0 | (434) |
Net income | 250,327 | 274,284 | 194,219 |
Preferred stock dividends | 21,204 | 19,595 | 12,933 |
Net income attributable to SLM Corporation common stock | $ 229,123 | $ 254,689 | $ 181,286 |
Basic earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.54 | $ 0.60 | $ 0.43 |
Average common shares outstanding (in shares) | 427,876 | 425,574 | 423,970 |
Diluted earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.53 | $ 0.59 | $ 0.42 |
Average common and common equivalent shares outstanding (in shares) | 432,919 | 432,234 | 432,269 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 250,327 | $ 274,284 | $ 193,785 |
Other comprehensive income (loss): | |||
Unrealized (losses) gains on investments | (1,792) | (2,205) | 6,066 |
Unrealized gains (losses) on cash flow hedges | 13,764 | (5,224) | (19,772) |
Total unrealized gains (losses) | 11,972 | (7,429) | (13,706) |
Income tax (expense) benefit | (4,584) | 2,763 | 5,337 |
Other comprehensive income (losses), net of tax (expense) benefit | 7,388 | (4,666) | (8,369) |
Total comprehensive income (loss) | $ 257,715 | $ 269,618 | $ 185,416 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) | Total | Total SLM Corporation Equity | Preferred Stock | Treasury | Common Stock | Additional Paid-in Capital | Additional Paid-in CapitalNavient’s Subsidiary Investment | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Non-controlling interest | Series A Preferred Stock | Series A Preferred StockTotal SLM Corporation Equity | Series A Preferred StockRetained Earnings | Series B Preferred Stock | Series B Preferred StockTotal SLM Corporation Equity | Series B Preferred StockRetained Earnings |
Beginning balance, shares issued (in shares) at Dec. 31, 2013 | 0 | 0 | ||||||||||||||
Beginning balance (in shares) at Dec. 31, 2013 | 0 | 0 | ||||||||||||||
Beginning balance at Dec. 31, 2013 | $ 1,166,143,000 | $ 1,161,471,000 | $ 0 | $ 0 | $ 0 | $ 0 | $ 1,164,495,000 | $ (3,024,000) | $ 0 | $ 4,672,000 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income (loss) | 193,785,000 | 194,219,000 | 68,173,000 | 126,046,000 | (434,000) | |||||||||||
Other comprehensive loss, net of tax | (8,369,000) | (8,369,000) | (8,369,000) | |||||||||||||
Total comprehensive income (loss) | 185,416,000 | 185,850,000 | (434,000) | |||||||||||||
Net transfers from affiliate | 479,409,000 | 479,409,000 | 479,409,000 | |||||||||||||
Separation adjustments related to Spin-Off of Navient Corporation (in shares) | 7,300,000 | 0 | 422,790,320 | |||||||||||||
Separation adjustments related to Spin-Off of Navient Corporation | 0 | $ 565,000,000 | $ 84,558,000 | 1,062,519,000 | (1,712,077,000) | |||||||||||
Sale of non-controlling interest | (4,238,000) | (4,238,000) | ||||||||||||||
Cash dividends: | ||||||||||||||||
Preferred stock | $ (7,667,000) | $ (7,667,000) | $ (7,667,000) | $ (5,266,000) | $ (5,266,000) | $ (5,266,000) | ||||||||||
Dividend equivalent units related to employee stock-based compensation plans | $ 0 | 47,000 | (47,000) | |||||||||||||
Issuance of common shares (in shares) | 2,013,805 | 2,013,805 | ||||||||||||||
Issuance of common shares | $ 8,683,000 | 8,683,000 | $ 403,000 | 8,280,000 | ||||||||||||
Tax benefit (deficiency) related to employee stock-based compensation | 3,271,000 | 3,271,000 | 3,271,000 | |||||||||||||
Stock-based compensation expense | 16,394,000 | 16,394,000 | 16,394,000 | |||||||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (1,365,277) | (1,365,277) | ||||||||||||||
Shares repurchased related to employee stock-based compensation plans | (12,187,000) | (12,187,000) | $ (12,187,000) | |||||||||||||
Ending balance, shares issued (in shares) at Dec. 31, 2014 | 7,300,000 | 424,804,125 | ||||||||||||||
Ending balance (in shares) at Dec. 31, 2014 | (1,365,277) | 423,438,848 | ||||||||||||||
Ending balance at Dec. 31, 2014 | 1,829,958,000 | 1,829,958,000 | $ 565,000,000 | $ (12,187,000) | $ 84,961,000 | 1,090,511,000 | $ 0 | (11,393,000) | 113,066,000 | $ 0 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income (loss) | 274,284,000 | 274,284,000 | 274,284,000 | |||||||||||||
Other comprehensive loss, net of tax | (4,666,000) | (4,666,000) | (4,666,000) | |||||||||||||
Total comprehensive income (loss) | 269,618,000 | 269,618,000 | ||||||||||||||
Net transfers from affiliate | $ 0 | |||||||||||||||
Separation adjustments related to Spin-Off of Navient Corporation | 1,660,000 | 1,660,000 | ||||||||||||||
Cash dividends: | ||||||||||||||||
Preferred stock | (11,501,000) | (11,501,000) | (8,094,000) | (8,094,000) | ||||||||||||
Dividend equivalent units related to employee stock-based compensation plans | 0 | 1,146,000 | (1,146,000) | |||||||||||||
Issuance of common shares (in shares) | 5,873,309 | 5,873,309 | ||||||||||||||
Issuance of common shares | 15,980,000 | $ 1,175,000 | 14,805,000 | |||||||||||||
Tax benefit (deficiency) related to employee stock-based compensation | 6,140,000 | 6,140,000 | ||||||||||||||
Stock-based compensation expense | 21,598,000 | 21,598,000 | ||||||||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (3,008,913) | (3,008,913) | ||||||||||||||
Shares repurchased related to employee stock-based compensation plans | (29,036,000) | $ (29,036,000) | ||||||||||||||
Ending balance, shares issued (in shares) at Dec. 31, 2015 | 7,300,000 | 430,677,434 | ||||||||||||||
Ending balance (in shares) at Dec. 31, 2015 | (4,374,190) | 426,303,244 | ||||||||||||||
Ending balance at Dec. 31, 2015 | $ 2,096,323,000 | 2,096,323,000 | $ 565,000,000 | $ (41,223,000) | $ 86,136,000 | 1,135,860,000 | (16,059,000) | 366,609,000 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income (loss) | 250,327,000 | 250,327,000 | 250,327,000 | |||||||||||||
Other comprehensive loss, net of tax | 7,388,000 | 7,388,000 | 7,388,000 | |||||||||||||
Total comprehensive income (loss) | $ 257,715,000 | 257,715,000 | ||||||||||||||
Cash dividends: | ||||||||||||||||
Preferred stock | $ (11,501,000) | $ (11,501,000) | $ (9,703,000) | $ (9,703,000) | ||||||||||||
Dividend equivalent units related to employee stock-based compensation plans | 0 | 410,000 | (410,000) | |||||||||||||
Issuance of common shares (in shares) | 5,955,045 | 5,955,045 | ||||||||||||||
Issuance of common shares | 19,191,000 | $ 1,191,000 | 18,000,000 | |||||||||||||
Tax benefit (deficiency) related to employee stock-based compensation | (1,650,000) | (1,650,000) | ||||||||||||||
Stock-based compensation expense | 22,944,000 | 22,944,000 | ||||||||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (3,354,730) | (3,354,730) | ||||||||||||||
Shares repurchased related to employee stock-based compensation plans | (26,261,000) | $ (26,261,000) | ||||||||||||||
Ending balance, shares issued (in shares) at Dec. 31, 2016 | 7,300,000 | 436,632,479 | ||||||||||||||
Ending balance (in shares) at Dec. 31, 2016 | (7,728,920) | 428,903,559 | ||||||||||||||
Ending balance at Dec. 31, 2016 | $ 2,347,058,000 | $ 2,347,058,000 | $ 565,000,000 | $ (67,484,000) | $ 87,327,000 | $ 1,175,564,000 | $ (8,671,000) | $ 595,322,000 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Series A Preferred Stock | |||
Preferred stock dividend rate (in dollars per share) | $ 3.49 | $ 3.48 | $ 2.61 |
Series B Preferred Stock | |||
Preferred stock dividend rate (in dollars per share) | $ 2.41 | $ 2.06 | $ 1.47 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities | |||
Net income | $ 250,327 | $ 274,284 | $ 193,785 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Provisions for credit losses | 159,405 | 90,055 | 85,529 |
Deferred tax benefit | (88,732) | (77,227) | (40,888) |
Amortization of brokered deposit placement fee | 10,133 | 10,510 | 10,164 |
Amortization of ABCP upfront fee | 1,229 | 2,337 | 0 |
Amortization of deferred loan origination costs and fees, net | 5,811 | 3,746 | 1,995 |
Net amortization of discount on investments | 2,043 | 1,716 | 633 |
Interest income on tax indemnification receivable | (12,283) | (5,398) | (5,904) |
Depreciation of premises and equipment | 9,592 | 7,437 | 6,099 |
Amortization of acquired intangibles | 906 | 1,480 | 3,290 |
Stock-based compensation expense | 22,944 | 21,598 | 24,971 |
Unrealized losses (gains) on derivative and hedging activities, net | 2,263 | (2,500) | 1,214 |
Gains on sale of loans, net | (230) | (135,358) | (121,359) |
Other adjustments to net income, net | 3,524 | (306) | 0 |
Changes in operating assets and liabilities: | |||
Net decrease in loans held for sale | 0 | 55 | 6,519 |
Origination of loans held for sale | 0 | (55) | (6,519) |
Increase in accrued interest receivable | (582,361) | (377,648) | (331,014) |
Increase in restricted cash and investments, net | (3,559) | (737) | (493) |
Decrease (increase) in other interest-earning assets | 5,731 | 17,634 | (72,435) |
Decrease in tax indemnification receivable | 59,633 | 59,633 | 44,724 |
Increase in other assets | (47,162) | (18,070) | (24,959) |
(Decrease) increase in income tax payable, net | (18,997) | 56,813 | (221,222) |
Increase in accrued interest payable | 3,736 | 303 | 2,985 |
Increase (decrease) in payable due to entity that is a subsidiary of Navient | 553 | (6,774) | 8,764 |
Increase (decrease) in other liabilities | 14,562 | (14,731) | (2,652) |
Total adjustments | (451,259) | (365,487) | (630,558) |
Total net cash used in operating activities | (200,932) | (91,203) | (436,773) |
Investing activities | |||
Loans acquired and originated | (4,698,548) | (4,366,651) | (4,094,790) |
Net proceeds from sales of loans held for investment | 9,521 | 1,547,373 | 2,001,625 |
Proceeds from claim payments | 64,869 | 111,580 | 127,869 |
Net decrease in loans held for investment | 1,332,341 | 913,005 | 638,321 |
Increase in restricted cash and investment - variable interest entities | (22,178) | (22,439) | 0 |
Purchases of available-for-sale securities | (55,767) | (64,112) | (72,049) |
Proceeds from sales and maturities of available-for-sale securities | 38,721 | 33,735 | 10,653 |
Total net cash used in investing activities | (3,331,041) | (1,847,509) | (1,388,371) |
Financing activities | |||
Brokered deposit placement fee | (4,371) | (4,098) | (15,098) |
Net (decrease) increase in certificates of deposit | (434,740) | 611,643 | 340,225 |
Net increase in other deposits | 2,412,221 | 324,518 | 1,207,487 |
Issuance costs for collateralized borrowings | (2,090) | 0 | 0 |
Borrowings collateralized by loans in securitization trusts - issued | 1,775,692 | 620,681 | 0 |
Borrowings collateralized by loans in securitization - repaid | (187,686) | (41,976) | 0 |
Borrowings under ABCP facility | 376,325 | 1,210,180 | 0 |
Repayment of borrowings under ABCP facility | (876,500) | (710,005) | 0 |
Fees paid - ABCP facility | (1,450) | (2,337) | 0 |
Net decrease in deposits with entity that is a subsidiary of Navient | 0 | 0 | (5,633) |
Special cash contribution from Navient | 0 | 0 | 472,718 |
Net capital contributions from entity that is a subsidiary of Navient | 0 | 0 | 12,022 |
Excess tax (expense) benefit from the exercise of stock-based awards | (1,650) | 6,140 | 3,271 |
Preferred stock dividends paid | (21,204) | (19,595) | (12,933) |
Net cash (used in) provided by financing activities | 3,034,547 | 1,995,151 | 2,002,059 |
Net (decrease) increase in cash and cash equivalents | (497,426) | 56,439 | 176,915 |
Cash and cash equivalents at beginning of year | 2,416,219 | 2,359,780 | 2,182,865 |
Cash and cash equivalents at end of year | 1,918,793 | 2,416,219 | 2,359,780 |
Cash disbursements made for: | |||
Interest | 169,854 | 111,563 | 90,329 |
Income taxes paid | 271,721 | 205,698 | 401,834 |
Income taxes refunded | $ (86) | $ (25,151) | $ (3,015) |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business SLM Corporation (“Sallie Mae,” “SLM,” the “Company,” “we” or “us”) is a holding company that operates through a number of subsidiaries. Its predecessor was formed in 1972 as the Student Loan Marketing Association, a federally chartered government-sponsored enterprise (the “GSE”), with the goal of furthering access to higher education by providing liquidity to the education loan marketplace. The GSE’s federal charter prohibited it from originating student loans in the primary market. In 1996, the United States Congress passed the Student Loan Marketing Association Reorganization Act, which set the stage for the “privatization” of the GSE. As part of the privatization process, we incorporated SLM Corporation in 1997 as a Delaware corporation, the GSE became a subsidiary of SLM Corporation, and by mid-2004 the GSE stopped purchasing loans insured or guaranteed under the Federal Family Education Loan Program (“FFELP Loans”) in the secondary market and was dissolved by the end of 2004. On November 3, 2005, SLM Corporation formed Sallie Mae Bank, a Utah industrial bank subsidiary (the “Bank”), to fund and originate Private Education Loans on behalf of SLM Corporation. While the Bank first originated Private Education Loans in February 2006, SLM Corporation continued to purchase a portion of its Private Education Loans from its third-party lending partners through mid-2009. With some minor exceptions, the Bank became the sole originator of Private Education Loans for SLM Corporation beginning with the 2009-2010 academic year, the first academic year following the launch of the Bank’s Smart Option Student Loan program in mid-2009. On March 30, 2010, President Obama signed into law the Federal Direct Student Loan Program (the “DSLP”), effective July 1, 2010. At that time, the guaranteed student loan program (under which FFELP Loans were made) was eliminated, although the terms and conditions of existing guaranteed student loans were not altered or affected. On April 30, 2014, we completed our plan to legally separate into two distinct publicly traded entities: an education loan management, servicing and asset recovery business, named Navient Corporation (“Navient”), which retained all assets and liabilities generated prior to the Spin-Off other than those explicitly retained by SLM Corporation; and a consumer banking business, named SLM Corporation. The separation of Navient from SLM Corporation (the “Spin-Off”) was preceded by an internal corporate reorganization, which was the first step to separate the education loan management, servicing and asset recovery business from the consumer banking business. As a result of a holding company merger under Section 251(g) of the Delaware General Corporation Law, which is referred to herein as the “SLM Merger,” all of the shares of then existing SLM Corporation’s common stock were converted, on a 1 -to-1 basis, into shares of common stock of New BLC Corporation, a newly formed company that was a subsidiary of pre-Spin-Off SLM Corporation (“pre-Spin-Off SLM”), and, pursuant to the SLM Merger, New BLC Corporation replaced then existing SLM Corporation as the publicly traded registrant and changed its name to SLM Corporation. As part of the internal corporate reorganization, the assets and liabilities associated with the education loan management, servicing and asset recovery business were transferred to Navient, and those assets and liabilities associated with the consumer banking business remained with or were transferred to the newly constituted SLM Corporation. The separation and distribution were accounted for on a substantially tax-free basis. Our primary business is to originate and service loans we make to students and their families to finance the cost of their education. 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 FFELP Loans. The core of our marketing strategy is to generate Private Education Loan originations by promoting our products on campuses through the financial aid offices as well as through online and direct marketing to students and their families. The Bank is regulated by the Utah Department of Financial Institutions (“UDFI”), the Federal Deposit Insurance Corporation (“FDIC”) and the Consumer Financial Protection Bureau (“CFPB”). We also operate Upromise, Inc. (“Upromise”), a save-for-college rewards program helping Americans save for higher education. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The financial reporting and accounting policies of SLM Corporation conform to generally accepted accounting principles in the United States of America (“GAAP”). In conjunction with the Spin-Off, our consolidated financial statements are comprised of financial information relating to the Bank and Upromise. Also included in our financial statements, for periods before the Spin-Off, are certain general corporate overhead expenses allocated to the Company. The timing and steps necessary to complete the Spin-Off and comply with the Securities and Exchange Commission (“SEC”) reporting requirements, including the replacement of pre-Spin-Off SLM with our current publicly traded registrant, have resulted in our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on February 19, 2014, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, filed with the SEC on May 12, 2014, providing business results and financial information for the periods reported therein on the basis of the consolidated businesses of pre-Spin-Off SLM. While information contained in those prior reports may provide meaningful historical context for our business, the Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 was our first periodic report made on the basis of the post-Spin-Off business. For periods before the Spin-Off, these financial statements are presented on a basis of accounting that reflects a change in reporting entity and have been adjusted for the effects of the Spin-Off. These carved-out financial statements and selected financial information represent only those operations, assets, liabilities and equity that form Sallie Mae on a stand-alone basis. Because the Spin-Off occurred on April 30, 2014, these financial statements include the carved-out financial results for the first four months of 2014. All prior period amounts represent comparably determined carved-out amounts. The year ended December 31, 2015 was the first full year where the financial results did not include the effect of carved-out amounts. Use of Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Key accounting policies that include significant judgments and estimates include the valuation of allowance for loan losses, fair value measurements and derivative accounting. Correction Recorded in the Current Period We recognized in the current period adjustments for tax positions relating to historical transactions among entities that are now subsidiaries of Navient that should have been recorded at the time of the Spin-Off. We have evaluated the quantitative and qualitative materiality of these corrections to all of the relevant periods and concluded that the out of period correction to recognize the asset, liabilities and income statement impacts in the year ended December 31, 2016 is not material to our consolidated financial statements for any of the relevant periods. The adjustments increased our tax indemnification receivable and income taxes payable by $ 120 million and increased our other income and income tax expense by $ 9 million, as we believe we are indemnified by Navient for these additional tax liabilities. Accordingly, there was no effect on equity or net income as a result of these corrections in the current or prior periods. Prospectively, these uncertain tax position liabilities and related assets will be accounted for consistent with our existing accounting policies for these kinds of assets and liabilities. Consolidation The consolidated financial statements include the accounts of SLM Corporation and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. 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. Cash and Cash Equivalents Cash and cash equivalents include cash held in the Federal Reserve Bank of San Francisco (“FRB”) and commercial bank accounts, and other short-term liquid instruments with original maturities of three months or less. Fees associated with investing cash and cash equivalents are amortized into interest income using the effective interest rate method. Investments Investments consisted of mortgage-backed securities and Utah Housing Corporation Bonds in 2016 and only mortgage-backed securities in 2015. We record our investment purchases and sales on a trade date basis. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. Our investments are classified as available-for-sale and reported at fair value. Unrealized gains or losses on available-for-sale investments are recorded in equity and are reported as a component of other comprehensive income (loss), net of applicable income taxes, unless a decline in the investment’s value is considered to be other-than-temporary, in which case the loss is recorded directly to earnings. Management reviews all investments at least quarterly to determine whether any impairment is other-than-temporary. Impairment is evaluated by considering several factors, including the length of time and extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability to retain the investment to allow for an anticipated recovery in fair value. If, based on the analysis, it is determined that the impairment is other-than-temporary, the investment is written down to fair value and a loss is recognized through earnings. Loans Held for Investment Loans, consisting primarily of Private Education Loans and FFELP Loans, that we have the ability and intent to hold for the foreseeable future are classified as held for investment, and are carried at amortized cost. Amortized cost includes the unamortized premiums, discounts, and capitalized origination costs and fees, all of which are amortized to interest income as discussed under “Loan Interest Income.” Loans which are held for investment are reported net of an allowance for loan losses. Restricted Cash and Investments Restricted cash and investments primarily include amounts held in student loan securitization trusts and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the trust assets and when principal and interest is paid on trust liabilities. Allowance for Loan Losses We maintain an allowance for loan losses at an amount sufficient to absorb probable losses incurred in our portfolios, as well as regarding future loan commitments, at the reporting date based on a projection of estimated probable credit losses incurred in the portfolio. We consider a loan to be impaired when, based on current information, a loss has been incurred and it is probable that we will not receive all contractual amounts due. When making our assessment as to whether a loan is impaired, we also take into account more than insignificant delays in payment. We generally evaluate impaired loans on an aggregate basis by grouping similar loans. We analyze our portfolios to determine the effects that the various stages of delinquency and forbearance have on borrower default behavior and ultimate charge off. We estimate the allowance for loan losses for our loan portfolios using a roll rate analysis of delinquent and current accounts. A “roll rate analysis” is a technique used to estimate the likelihood that a loan receivable may progress through the various delinquency stages and ultimately charge off. We also take into account the current and future economic environment and certain other qualitative factors when calculating the allowance for loan losses. The evaluation of the allowance for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. Our default estimates are based on a loss emergence period of one year for Private Education Loans and two years for FFELP Loans. A loss emergence period represents the expected period between the first occurrence of an event likely to cause a loss on a loan and the date the loan is expected to be charged off, taking into consideration account management practices that affect the timing of a loss, such as the usage of forbearance. The loss emergence period underlying the allowance for loan losses is subject to a number of assumptions. If actual future performance in delinquency, charge-offs and recoveries is significantly different than estimated, or account management assumptions or practices were to change, this could materially affect the estimate of the allowance for loan losses, the timing of when losses are recognized, and the related provision for credit losses on our consolidated statements of income. We utilize various models to determine an appropriate allowance for loan losses. Changes to model inputs are made as deemed necessary. These models are reviewed and validated periodically. Below we describe in further detail our policies and procedures for the allowance for loan losses as they relate to our Private Education Loan and FFELP Loan portfolios. Allowance for Private Education Loan Losses We maintain an allowance for loan losses at an amount sufficient to absorb probable losses incurred in our portfolios at the reporting date based on a projection of estimated probable credit losses incurred in the portfolio. In determining the allowance for loan losses on our Private Education Loans that are not troubled debt restructurings (“TDRs”), we estimate the principal amount of loans that will default over the next year ( one year being the expected period between a loss event and default) and how much we expect to recover over the same one year period related to the defaulted amount. The expected defaults less our expected recoveries adjusted for any qualitative factors (discussed below) equal the allowance related to this portfolio. Our historical experience indicates that, on average, the time between the date that a customer experiences a default causing event (i.e., the loss trigger event) and the date that we charge off the unrecoverable portion of that loan is one year. In estimating both the non-TDR and TDR allowance amounts, we start with historical experience of customer delinquency and default behavior. We make judgments about which historical period to start with and then make further judgments about whether that historical experience is representative of future expectations and whether additional adjustments may be needed to those historical default rates. We may also take certain other qualitative factors into consideration when calculating the allowance for loan losses. These qualitative factors include, but are not limited to, changes in the economic environment, changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off and recovery practices not already included in the analysis, and the effect of other external factors such as legal and regulatory requirements on the level of estimated credit losses. Our non-TDR allowance for loan losses is estimated using an analysis of delinquent and current accounts. Our model is used to estimate the likelihood that a loan receivable may progress through the various delinquency stages and ultimately charge off. Once a charge-off forecast is estimated, a recovery assumption is layered on top. In estimating recoveries, we use both estimates of what we would receive from the sale of delinquent loans as well as historical borrower payment behavior to estimate the timing and amount of future recoveries on charged-off loans. In the fourth quarter of 2015, we stopped our previous practice of selling all defaulted loans to third-parties and began collecting on some defaulted loans in-house. It is our expectation that in the future we will continue to collect on defaulted loans in-house as well as sell defaulted loans to third-parties. Prior to this change in practice, we only used estimates of what we would receive from the sale of delinquent loans in estimating recoveries. For December, 31, 2016 and 2015, we used both an estimate of recovery rates from in-house collections as well as expectations of future sales of defaulted loans to estimate the timing and amount of future recoveries on charged-off loans. The roll rate analysis model is based upon actual experience using the 120 day charge-off default aversion strategies. Once the quantitative calculation is performed, we review the adequacy of the allowance for loan losses and determine if qualitative adjustments need to be considered. In connection with the Spin-Off, the agreement under which the Bank previously made sales of defaulted loans to an affiliate was amended so that the Bank now has the right to require Navient to purchase (at fair value) loans only where (a) the borrower has a lending relationship with both the Bank and Navient (“Split Loans”) and (b) the Split Loans either (1) are more than 90 days past due; (2) have been restructured; (3) have been granted a hardship forbearance or more than six months of administrative forbearance; or (4) have a borrower or cosigner who has filed for bankruptcy. At December 31, 2016, we held approximately $67 million of Split Loans. Pre-Spin-Off SLM charged off loans when they were 212 days delinquent. As such, default aversion strategies were focused on the final stages of delinquency, from 150 days to 212 days . In connection with the Spin-Off, we changed our charge-off policy for Private Education Loans to charging off loans when they reach 120 days delinquent. As a result of changing our corporate charge-off policy and greatly reducing the number of potentially delinquent loans we sell to Navient, our default aversion strategies now focus on loans 30 to 120 days delinquent. This change has the effect of accelerating the recognition of losses due to the shorter charge-off period ( 120 days ). In addition, at the time of the Spin-Off, we changed our loss emergence period from two years to one year to reflect the shorter charge-off policy and our revised servicing practices. These two changes resulted in recognizing a $14 million net reduction in our allowance for loan losses in second quarter 2014 because we are now only reserving for one year of losses as compared with two years under the prior policy, which more than offset the impact of the shorter charge-off period. Allowance for Personal Loans In December 2016, we began to opportunistically acquire newly originated personal loans (“Personal Loans”). We maintain an allowance for loan losses at an amount sufficient to absorb probable losses incurred in this portfolio at the reporting date based on a projection of estimated probable credit losses incurred in the portfolio. In determining the allowance for loan losses on our Personal Loan portfolio that are not TDRs, we estimate the principal amount of the loans that will default over the next eight months (eight months being the expected period between a loss event and default) and how much we expect to recover over the same eight-month period related to the defaulted amounts. The expected defaults less our expected recoveries adjusted for any qualitative factors equal the allowance related to this portfolio. At December 31, 2016, we held $ 12.8 million in Personal Loans and the amount of allowance related to this portfolio was immaterial. Troubled Debt Restructurings Separately, for our TDR portfolio, we estimate an allowance amount sufficient to cover life-of-loan expected losses through an impairment calculation based on the difference between the loan’s basis and the present value of expected future cash flows (which would include life-of-loan default and recovery assumptions) discounted at the loan’s original effective interest rate. Our TDR portfolio is comprised mostly of loans with interest rate reductions and loans with forbearance usage greater than three months . We modify the terms of loans for certain borrowers when we believe such modifications may increase the ability and willingness of a borrower to make payments and thus increase the ultimate overall amount collected on a loan. These modifications generally take the form of a forbearance, a temporary interest rate reduction or an extended repayment plan. In the first nine months after a loan enters full principal and interest repayment, the loan may be in forbearance for up to six months without it being classified as a TDR. Once the initial nine -month period described above is over, however, any loan that receives more than three months of forbearance in a 24-month period is classified as a TDR. Also, a loan becomes a TDR when it is modified to reduce the interest rate on the loan (regardless of when such modification occurs and/or whether such interest rate is temporary). The majority of our loans that are considered TDRs involve a temporary forbearance of payments and do not change the contractual interest rate of the loan. Once a loan qualifies for TDR status, it remains a TDR for allowance purposes for the remainder of its life. Approximately 26 percent and 23 percent of the loans granted forbearance as of December 31, 2016 and December 31, 2015, respectively, have been classified as TDRs due to their forbearance status. Key Credit Quality Indicators We determine the collectability of our Private Education Loan portfolio by evaluating certain risk characteristics. We consider credit score, existence of a cosigner, loan status and loan seasoning as the key credit quality indicators because they have the most significant effect on the determination of the adequacy of our allowance for loan losses. Credit scores are an indicator of the creditworthiness of a borrower and the higher the credit score the more likely it is the borrower will be able to make all of their contractual payments. Loan status affects the credit risk because a past due loan is more likely to result in a credit loss than a current loan. Additionally, loans in the deferred payment status have different credit risk profiles compared with those in current pay status. Loan seasoning affects credit risk because a loan with a history of making payments generally has a lower incidence of default than a loan with a history of making infrequent or no payments. The existence of a cosigner lowers the likelihood of default as well. We monitor and update these credit quality indicators in the analysis of the adequacy of our allowance for loan losses on a quarterly basis. Certain Private Education Loans do not require borrowers to begin repayment until six months after they have graduated or otherwise left school. Consequently, the loss estimates for these loans is generally low while the borrower is in school. At December 31, 2016 and 2015, 29 percent and 32 percent , respectively, of the principal balance in the Private Education Loan portfolio was related to borrowers who are in an in-school (fully deferred), grace, or deferment status and not required to make payments. As this population of borrowers leaves school, they will be required to begin payments on their loans, and the allowance for losses may change accordingly. Similar to the rules governing FFELP payment requirements, our collection policies allow for periods of nonpayment for borrowers requesting additional payment grace periods upon leaving school or experiencing temporary difficulty meeting payment obligations. This is referred to as forbearance status and is considered separately in the allowance for loan losses. The loss emergence period is in alignment with the typical collection cycle and takes into account these periods of nonpayment. As part of concluding on the adequacy of the allowance for loan losses, we review key allowance and loan metrics. The most relevant of these metrics considered are the allowance coverage of charge-offs ratio; the allowance as a percentage of total loans and of loans in repayment; and delinquency and forbearance percentages. We consider a loan to be delinquent 31 days after the last payment was contractually due. We use a model to estimate the amount of uncollectible accrued interest on Private Education Loans and reserve for that amount against current period interest income. Allowance for FFELP Loan Losses FFELP Loans are insured as to their principal and accrued interest in the event of default subject to a risk sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement on all qualifying default claims. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement. The allowance for FFELP Loan losses uses historical experience of customer default behavior and a two-year loss emergence period to estimate the credit losses incurred in the loan portfolio at the reporting date. We apply the default rate projections, net of applicable risk sharing, to each category for the current period to perform our quantitative calculation. Once the quantitative calculation is performed, we review the adequacy of the allowance for loan losses and determine if qualitative adjustments need to be considered. Deposits Our retail deposit accounts are principally certificates of deposit (“CD”), money market deposit accounts (“MMDA”) and high yield savings (“HYS”) accounts. CDs are accounts that have a stipulated maturity and interest rate. Retail CDs may be withdrawn early, but a penalty is assessed. MMDA and HYS accounts are both interest and non-interest bearing accounts that have no maturity or expiration date. For retail MMDA and HYS accounts, the depositor may be required to give written notice of any intended withdrawal not less than seven days before the withdrawal is made, although this provision is not generally enforced. The Bank also includes brokered CDs in its funding base. Early withdrawal of brokered CDs is prohibited (except in the case of death or legal incapacity). Other deposit accounts include large interest-bearing omnibus accounts deposited in the Bank by commercial entities having custodial responsibilities for many underlying accounts. These omnibus accounts may be structured with or without fixed maturities, and may have fixed or variable interest rates. Upromise member accounts Upromise member accounts represent amounts owed to Upromise rewards members for rebates they have earned from qualifying purchases from Upromise’s participating merchants. These amounts are held in trust for the benefit of the members until distributed in accordance with the Upromise member’s request and/or the terms of the Upromise service agreement. Upromise, which acts as the trustee for the trust, has deposited a majority of the cash with the Bank pursuant to a money market deposit account agreement between the Bank and Upromise as trustee of the trust. Fair Value Measurement We use estimates of fair value in applying various accounting standards for our financial statements. Fair value measurements are used in one of four ways: • In the consolidated balance sheet with changes in fair value recorded in the consolidated statement of income; • In the consolidated balance sheet with changes in fair value recorded in the accumulated other comprehensive income section of the consolidated statement of changes in equity; • In the consolidated balance sheet for instruments carried at lower of cost or fair value with impairment charges recorded in the consolidated statement of income; and • In the notes to the consolidated financial statements. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, our policy in estimating fair value is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates and credit spreads (including for our liabilities), relying first on observable data from active markets. Depending on current market conditions, additional adjustments to fair value may be based on factors such as liquidity, credit, and bid/offer spreads. Transaction costs are not included in the determination of fair value. When possible, we seek to validate the model’s output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. We categorize our fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. Classification is based on the lowest level of input that is significant to the fair value of the instrument. The three levels are as follows: • Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. The types of financial instruments included in level 1 are highly liquid instruments with quoted prices. • Level 2 — Inputs from active markets, other than quoted prices for identical instruments, are used to determine fair value. Significant inputs are directly observable from active markets for substantially the full term of the asset or liability being valued. • Level 3 — Pricing inputs significant to the valuation are unobservable. Inputs are developed based on the best information available. However, significant judgment is required by us in developing the inputs. Loan Interest Income For all loans, including impaired loans, classified as “held for investment,” we recognize interest income as earned, adjusted for the amortization of deferred direct origination and acquisition costs. This adjustment is recognized based upon the expected yield of the loan over its life after giving effect to prepayments and extensions. We consider our constant prepayment rate (“CPR”) estimates a significant accounting assumption used to measure the expected prepayment activity in our education loan portfolio. The estimates are based on a number of factors such as historical prepayment rates for loans with similar loan characteristics, assumptions about portfolio composition and loan terms, and the prepayment curve’s tendency to follow a ramp pattern (i.e., the prepayment rate typically increases during the in-school and early repayment periods, then stabilizes). The CPR measures the expected prepayment activity over the life of the loan and is applied as a flat-rate input assumption when used in forecasting. Additionally, interest earned on education loans reflects potential non-payment adjustments in accordance with our uncollectible interest recognition policy as discussed further in “Allowance for Loan Losses” of this Note 2. Because of this, we do not place loans in nonaccrual status prior to charge off. We do not amortize any adjustments to the basis of education loans when they are classified as held-for-sale. Our CPR estimates include the effect of voluntary prepayments and consolidation (if the loans are consolidated to third parties), both of which shorten the lives of loans. CPR estimates also consider the utilization of deferment, forbearance, and extended repayment plans, which lengthen the lives of loans. We regularly evaluate the assumptions used to estimate the CPRs. In instances where there are changes to the assumptions, amortization of deferred direct origination and acquisition costs is adjusted on a cumulative basis to reflect the change since the origination or purchase of the loan. For the year ended December 31, 2016, our CPR for Private Education Loans was 5.00 percent , compared with a CPR of 5.12 percent for the year ended December 31, 2015. We also pay to the U.S. Department of Education (the “DOE”) an annual 105 basis point Consolidation Loan Rebate Fee on FFELP consolidation loans, which is netted against loan interest income. Additionally, interest earned on education loans reflects potential non-payment adjustments in accordance with our uncollectible interest recognition policy. We do not amortize any adjustments to the basis of education loans when they are classified as “held-for-sale.” We recognize certain fee income (primarily late fees) on education loans when earned according to the contractual provisions of the promissory notes, as well as our expectation of collectability. Fee income is recorded when earned in “other non-interest income” in the accompanying consolidated statements of income. Interest Expense Interest expense is based upon contractual interest rates adjusted for the amortization of issuance costs. We incur interest expense on interest bearing deposits comprised of non-maturity savings deposits, brokered and retail CDs, brokered and retail MMDAs and secured financings. Interest expense is recognized when amounts are contractually due to deposit and debt holders and is adjusted for net payments/receipts related to interest rate swap agreements that qualify and are designated hedges of interest bearing liabilities. Interest expense also includes the amortization of deferred gains and losses on closed hedge transactions that qualified as hedges. Amortization of debt issuance costs, premiums, discounts and terminated hedge-basis adjustments are recognized using the effective interest rate method. We incur certain fees related to our Private Education Loan asset-backed commercial paper facility (the “ABCP Facility”), including an unused ABCP Facility fee, and also incur fees related to our term asset-backed securities (“ABS”). These fees are included in interest expense. Refer to Note 8, “Deposits,” and Note 9, “Borrowings” for further details of our interest bearing liabilities. Gains on Sale of Loans, Net We participate and sell loans to third-parties and affiliates, including entities that were related parties prior to the Spin-Off. These sales may occur through whole loan sales or securitization transactions that qualify for sales treatment. If a transfer of loans qualifies as a sale, we derecognize the loan and recognize a gain or loss as the difference between the carry basis of the loan sold and liabilities retained and the compensation received. We recognize the results of a transfer of loans based upon the settlement date of the transaction. These loans were initially recorded as held for investment, and were transferred to held-for-sale immediately prior to sale or securitization. We did not sell loans in 2016 and currently do not expect to sell loans in 2017. Prior to the Spin-Off, the Bank sold loans to an entity that is now a subsidiary of Navient when loans became 90 days delinquent and to facilitate securitization transactions. Prior to the Spin-Off, the Bank sold $ 805 million of loans resulting in a net gain on sale of loans of $ 36 million for the year ended December 31, 2014. Subsequent to the Spin-Off, we sold loans through loan sales and securitization transactions with third-parties (including Navient) resulting in a net gain on sale of loans of $ 135 million and $ 85 million for the years ended December 31, 2015 and 2014, respectively. See Note 16, “Arrangements with Navient Corporation,” for further discussion regarding loan purchase agreements. Other Income Our Upromise subsidiary has a number of programs that encourage consumers to save for the cost of college education. We h |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2016 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents As of December 31, 2016 , cash and cash equivalents include cash due from the FRB of $ 1.9 billion and cash due from depository institutions of $26.9 million. As of December 31, 2015 , cash and cash equivalents include cash due from the FRB of $2.4 billion and cash due from depository institutions of $ 22.4 million. As of December 31, 2016 and 2015 , we had no outstanding cash equivalents. In 2010, the FRB introduced the Term Deposit Facility to facilitate the conduct of monetary policy by providing a tool that may be used to manage the aggregate quantity of reserve balances held by depository institutions. Under this program, the FRB accepts deposits for a stated maturity at a rate of interest determined via auction. The funds are removed from the accounts of participating institutions for the life of the term deposit. We participated in these auctions in 2016 and 2015 , resulting in interest income of $0.2 million and $0.3 million, respectively. As of December 31, 2016 and 2015 , no funds were on deposit with the FRB under this program. We are required to maintain average reserve balances with the FRB based on a percentage of deposits. The average amounts of those reserves for the years ended December 31, 2016 and 2015 were $0.5 million and $1.2 million, respectively. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The amortized cost and fair value of securities available for sale are as follows: December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Mortgage-backed securities $ 196,406 $ 929 $ (3,042 ) $ 194,293 Utah Housing Corporation bonds 15,000 — (690 ) 14,310 Total $ 211,406 $ 929 $ (3,732 ) $ 208,603 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Mortgage-backed securities $ 196,402 $ 1,370 $ (2,381 ) $ 195,391 The following table summarizes the amount of gross unrealized losses for our mortgage-backed securities and Utah housing bonds and the estimated fair value by length of time the securities have been in an unrealized loss position: Less than 12 months 12 months or more Total Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value As of December 31, 2016: Mortgage-backed securities $ (2,423 ) $ 129,549 $ (619 ) $ 10,885 $ (3,042 ) $ 140,434 Utah Housing Corporation bonds (690 ) 14,310 — — (690 ) 14,310 Total $ (3,113 ) $ 143,859 $ (619 ) $ 10,885 $ (3,732 ) $ 154,744 As of December 31, 2015: Mortgage-backed securities $ (827 ) $ 73,802 $ (1,554 ) $ 39,271 $ (2,381 ) $ 113,073 Our investment portfolio is comprised primarily of mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, with amortized costs of $ 101.2 million, $ 66.5 million, and $ 28.8 million, respectively, at December 31, 2016 . We own these securities to meet our requirements under the Community Reinvestment Act. As of December 31, 2016 , there were 48 of 84 separate mortgage-backed securities with unrealized losses in our investment portfolio. As of December 31, 2016, 21 of the 48 securities in a net loss position were issued under Ginnie Mae programs that carry a full faith and credit guarantee from the U.S. Government. The remaining securities in a net loss position carry a principal and interest guarantee by Fannie Mae. As of December 31, 2015 , there were 35 of 74 separate mortgage-backed securities with unrealized losses in our investment portfolio. Fourteen of the 35 securities in a net loss position were issued by Ginnie Mae. We have the ability and the intent to hold these securities for a period of time sufficient for the market price to recover to at least the adjusted amortized cost of the security. In December 2016, we invested in Utah Housing Corporation bonds for the purpose of complying with the Community Reinvestment Act. These bonds are Aa3 rated by Moody’s Investors Service. The amortized cost of the investment on the consolidated balance sheet at December 31, 2016 was $ 15 million. We have the intent and ability to hold these bonds for a period of time sufficient for the market price to recover to at least the adjusted amortized cost of the security. As of December 31, 2016 , the amortized cost and fair value of securities, by contractual maturities, are summarized below. Contractual maturities versus actual maturities may differ due to the effect of prepayments. Year of Maturity Amortized Cost Estimated Fair Value 2038 $ 278 $ 303 2039 5,405 5,758 2042 15,344 14,621 2043 46,996 47,045 2044 37,970 37,876 2045 50,814 50,084 2046 39,599 38,606 2047 15,000 14,310 Total $ 211,406 $ 208,603 The mortgage-backed securities have been pledged to the FRB as collateral against any advances and accrued interest under the Primary Credit lending program sponsored by the FRB. We had $188.0 million and $ 188.3 million par value of mortgage-backed securities pledged to this borrowing facility at December 31, 2016 and 2015 , respectively, as discussed further in Note 9, “Borrowings.” |
Loans Held for Investment
Loans Held for Investment | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Loans Held for Investment | Loans Held for Investment Loans Held for Investment consist of Private Education Loans, FFELP Loans and Personal Loans. Our Private Education Loans are made largely to bridge the gap between the cost of higher education and the amount funded through financial aid, government loans 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 December 31, 2016 , 81 percent of all Private Education Loans were indexed to LIBOR. We provide incentives for customers to include a cosigner on the loan, and the vast majority of loans in our portfolio are cosigned. We also encourage customers to make payments while in school. FFELP Loans are insured as to their principal and accrued interest in the event of default subject to a risk sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement on all qualifying claims. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement. In December 2016, we acquired $ 12.9 million of Personal Loans originated by third parties. Loans held for investment are summarized as follows: December 31, 2016 2015 Private Education Loans $ 14,251,675 $ 10,596,437 Deferred origination costs 44,206 27,884 Allowance for loan losses (182,472 ) (108,816 ) Total Private Education Loans, net 14,113,409 10,515,505 FFELP Loans 1,010,908 1,115,663 Unamortized acquisition costs, net 2,941 3,114 Allowance for loan losses (2,171 ) (3,691 ) Total FFELP Loans, net 1,011,678 1,115,086 Personal Loans 12,893 — Allowance for loan losses (58 ) — Total Personal Loans, net 12,835 — Loans held for investment, net $ 15,137,922 $ 11,630,591 The estimated weighted average life of education loans in our portfolio was approximately 6.0 years and 6.2 years at December 31, 2016 and 2015 , respectively. The average balance and the respective weighted average interest rates for our education loan portfolio are summarized as follows: Years Ended December 31, 2016 2015 2014 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 12,747,756 8.02 % $ 9,819,053 7.93 % $ 7,563,356 8.16 % FFELP Loans 1,063,325 3.53 1,179,723 3.26 1,353,497 3.24 Total education loan portfolio $ 13,811,081 $ 10,998,776 $ 8,916,853 Certain Collection Tools — Private Education Loans Forbearance involves granting the customer a temporary cessation of payments (or temporary acceptance of smaller than scheduled payments) for a specified period of time. Using forbearance extends the original term of the loan. Forbearance does not grant any reduction in the total repayment obligation (principal or interest). While in forbearance status, interest continues to accrue and is capitalized to principal when the loan re-enters repayment status. Our forbearance policies include limits on the number of forbearance months granted consecutively and the total number of forbearance months granted over the life of the loan. We grant forbearance in our servicing centers if a borrower who is current requests it for increments of three months at a time, for up to twelve months. Forbearance as a collection tool is used most effectively when applied based on a customer’s unique situation, including historical information and judgments. We leverage updated customer information and other decision support tools to best determine who will be granted forbearance based on our expectations as to a customer’s ability and willingness to repay their obligation. This strategy is aimed at mitigating the overall risk of the portfolio as well as encouraging cash resolution of delinquent loans. In some instances, we require good-faith payments before granting forbearance. Exceptions to forbearance policies are permitted when such exceptions are judged to increase the likelihood of collection of the loan. Forbearance may be granted to customers who are exiting their grace period to provide additional time to obtain employment and income to support their obligations, or to current customers who are faced with a hardship and request forbearance time to provide temporary payment relief. In these circumstances, a customer’s loan is placed into a forbearance status in limited monthly increments and is reflected in the forbearance status at month-end during this time. At the end of the granted forbearance period, the customer will enter repayment status as current and is expected to begin making scheduled monthly payments on a go-forward basis. Forbearance may also be granted to customers who are delinquent in their payments. If specific requirements are met, the forbearance can cure the delinquency and the customer is returned to a current repayment status. In more limited instances, delinquent customers will also be granted additional forbearance time. We also have an interest rate reduction program to assist customers in repaying their Private Education Loans through reduced payments, while continuing to reduce their outstanding principal balance. This program is offered in situations where the potential for principal recovery, through an interest rate reduction that results in a lower monthly payment amount, is more suitable than other alternatives currently available. As part of demonstrating the ability and willingness to pay, the customer must make three consecutive monthly payments at the reduced rate to qualify for the program. Once the customer has made the initial three payments, the loan’s status is returned to current and the interest rate is reduced for a twenty-four month period. During the first four months of 2014, we did not utilize these collection tools because we sold loans that would otherwise be managed using one or more of these collection tools to an entity that is now a subsidiary of Navient. See Note 16, “Arrangements with Navient Corporation.” The period of delinquency for loans is based on the number of days scheduled payments are contractually past due. As of December 31, 2016 and 2015 , we had $67.5 million and $122.9 million, respectively, of FFELP Loans and $24.2 million and $20.9 million, respectively, of Private Education Loans held for investment which were more than 90 days delinquent that continue to accrue interest. At December 31, 2016 and 2015 , we had no loans in nonaccrual status. Borrower-in-Custody Arrangements We maintain Borrower-in-Custody arrangements with the FRB. Under these arrangements, we can pledge FFELP consolidation loans or Private Education Loans to the FRB to secure any advances and accrued interest generated under the Primary Credit program at the FRB. As of December 31, 2016 and 2015 , we had $0 and $0 , respectively, of FFELP consolidation loans and $2.7 billion and $1.7 billion, respectively, of Private Education Loans pledged to this borrowing facility, as discussed further in Note 9, “Borrowings.” Loans Held for Investment by Region At December 31, 2016 , 40.3 percent of total education loans were concentrated in the following states: 2016 New York 10.3 % California 9.4 Pennsylvania 8.4 New Jersey 6.9 Illinois 5.3 40.3 % At December 31, 2015 , 39.8 percent of total education loans were concentrated in the following states: 2015 New York 10.1 % California 9.6 Pennsylvania 8.1 New Jersey 6.7 Illinois 5.3 39.8 % No other state had a concentration of total education loans in excess of 5 percent of the aggregate outstanding loans held for investment. |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses Our provision for credit losses represents the periodic expense of maintaining an allowance sufficient to absorb incurred probable losses in the held-for-investment loan portfolios. The evaluation of the allowance for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. We believe the allowance for loan losses is appropriate to cover probable losses incurred in the loan portfolios. See Note 2, “Significant Accounting Policies — Allowance for Private Education Loan Losses and — Allowance for FFELP Loan Losses” for a more detailed discussion. Allowance for Loan Losses Metrics Allowance for Loan Losses Year Ended December 31, 2016 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 3,691 $ 108,816 $ 112,507 Total provision (172 ) 159,511 159,339 Net charge-offs: Charge-offs (1,348 ) (90,203 ) (91,551 ) Recoveries — 10,382 10,382 Net charge-offs (1,348 ) (79,821 ) (81,169 ) Loan sales (1) — (6,034 ) (6,034 ) Ending Balance $ 2,171 $ 182,472 $ 184,643 Allowance: Ending balance: individually evaluated for impairment $ — $ 86,930 $ 86,930 Ending balance: collectively evaluated for impairment $ 2,171 $ 95,542 $ 97,713 Loans: Ending balance: individually evaluated for impairment $ — $ 612,606 $ 612,606 Ending balance: collectively evaluated for impairment $ 1,010,908 $ 13,639,069 $ 14,649,977 Net charge-offs as a percentage of average loans in repayment (2) 0.17 % 0.96 % Allowance as a percentage of the ending total loan balance 0.21 % 1.28 % Allowance as a percentage of the ending loans in repayment (2) 0.28 % 1.88 % Allowance coverage of net charge-offs 1.61 2.29 Ending total loans, gross $ 1,010,908 $ 14,251,675 Average loans in repayment (2) $ 793,203 $ 8,283,036 Ending loans in repayment (2) $ 786,332 $ 9,709,758 ____________ (1) Represents fair value adjustments on loans sold. (2) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Allowance for Loan Losses Year Ended December 31, 2015 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 5,268 $ 78,574 $ 83,842 Total provision 1,005 87,344 88,349 Net charge-offs: Charge-offs (2,582 ) (55,357 ) (57,939 ) Recoveries — 5,820 5,820 Net charge-offs (2,582 ) (49,537 ) (52,119 ) Loan sales (1) — (7,565 ) (7,565 ) Ending Balance $ 3,691 $ 108,816 $ 112,507 Allowance: Ending balance: individually evaluated for impairment $ — $ 43,480 $ 43,480 Ending balance: collectively evaluated for impairment $ 3,691 $ 65,336 $ 69,027 Loans: Ending balance: individually evaluated for impairment $ — $ 265,831 $ 265,831 Ending balance: collectively evaluated for impairment $ 1,115,663 $ 10,330,606 $ 11,446,269 Net charge-offs as a percentage of average loans in repayment (2) 0.30 % 0.82 % Allowance as a percentage of the ending total loan balance 0.33 % 1.03 % Allowance as a percentage of the ending loans in repayment (2) 0.45 % 1.57 % Allowance coverage of net charge-offs 1.43 2.20 Ending total loans, gross $ 1,115,663 $ 10,596,437 Average loans in repayment (2) $ 857,359 $ 6,031,741 Ending loans in repayment (2) $ 813,815 $ 6,927,266 ____________ (1) Represents fair value adjustments on loans sold. (2) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Allowance for Loan Losses Year Ended December 31, 2014 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 6,318 $ 61,763 $ 68,081 Total provision 1,946 83,583 85,529 Net charge-offs: Charge-offs (1) (2,996 ) (14,442 ) (17,438 ) Recoveries — 1,155 1,155 Net charge-offs (2,996 ) (13,287 ) (16,283 ) Loan sales (2) — (53,485 ) (53,485 ) Ending Balance $ 5,268 $ 78,574 $ 83,842 Allowance: Ending balance: individually evaluated for impairment $ — $ 9,815 $ 9,815 Ending balance: collectively evaluated for impairment $ 5,268 $ 68,759 $ 74,027 Loans: Ending balance: individually evaluated for impairment $ — $ 59,402 $ 59,402 Ending balance: collectively evaluated for impairment $ 1,264,807 $ 8,251,974 $ 9,516,781 Net charge-offs as a percentage of average loans in repayment (3) 0.31 % 0.30 % Allowance as a percentage of the ending total loan balance 0.42 % 0.95 % Allowance as a percentage of the ending loans in repayment (3) 0.57 % 1.53 % Allowance coverage of net charge-offs 1.76 5.91 Ending total loans, gross $ 1,264,807 $ 8,311,376 Average loans in repayment (3) $ 972,390 $ 4,495,709 Ending loans in repayment (3) $ 926,891 $ 5,149,215 ____________ (1) Prior to the Spin-Off, we sold all loans greater than 90 days delinquent to an entity that is now a subsidiary of Navient Corporation, prior to being charged off. Consequently, many of the pre-Spin-Off, historical credit indicators and period-over-period trends are not comparable and may not be indicative of future performance. (2) Represents fair value adjustments on loans sold. (3) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Troubled Debt Restructurings All of our loans are collectively assessed for impairment, except for loans classified as TDRs (where we conduct individual assessments of impairment). We modify the terms of loans for certain borrowers when we believe such modifications may increase the ability and willingness of a borrower to make payments and thus increase the ultimate overall amount collected on a loan. These modifications generally take the form of a forbearance, a temporary interest rate reduction or an extended repayment plan. In the first nine months after a loan enters full principal and interest repayment, the loan may be in forbearance for up to six months without it being classified as a TDR. Once the initial nine -month period described above is over, however, any loan that receives more than three months of forbearance in a 24-month period is classified as a TDR. Also, a loan becomes a TDR when it is modified to reduce the interest rate on the loan (regardless of when such modification occurs and/or whether such interest rate reduction is temporary). The majority of our loans that are considered TDRs involve a temporary forbearance of payments and do not change the contractual interest rate of the loan. Once a loan qualifies for TDR status, it remains a TDR for allowance purposes for the remainder of its life. Approximately 26 percent and 23 percent of the loans granted forbearance as of December 31, 2016 and 2015 , respectively, have been classified as TDRs due to their forbearance status. Prior to the Spin-Off, we did not have TDR loans because the loans generally were sold to a now unrelated affiliate in the same month that the terms were restructured. Subsequent to May 1, 2014, we have individually assessed $705.5 million of Private Education Loans as TDRs. When these TDR loans are determined to be impaired, we provide for an allowance for losses sufficient to cover life-of-loan expected losses through an impairment calculation based on the difference between the loan’s basis and the present value of expected future cash flows (which would include life-of-loan default and recovery assumptions) discounted at the loan’s original effective interest rate. Within the Private Education Loan portfolio, loans greater than 90 days past due are considered to be nonperforming. FFELP Loans are at least 97 percent guaranteed as to their principal and accrued interest by the federal government in the event of default and, therefore, we do not deem FFELP Loans as nonperforming from a credit risk standpoint at any point in their life cycle prior to claim payment, and continue to accrue interest through the date of claim. At December 31, 2016 and 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 December 31, 2016 TDR Loans $ 620,991 $ 612,606 $ 86,930 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. Years Ended December 31, 2016 2015 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 422,527 $ 30,700 $ 174,087 $ 14,081 $ 23,290 $ 1,105 The following table provides information regarding the loan status and aging of TDR loans. December 31, December 31, 2016 2015 Balance % Balance % TDR loans in in-school/grace/deferment (1) $ 24,185 $ 6,869 TDR loans in forbearance (2) 71,851 43,756 TDR loans in repayment (3) and percentage of each status: Loans current 462,187 89.5 % 185,936 86.4 % Loans delinquent 31-60 days (4) 28,452 5.5 14,948 6.9 Loans delinquent 61-90 days (4) 17,326 3.4 9,239 4.3 Loans delinquent greater than 90 days (4) 8,605 1.6 5,083 2.4 Total TDR loans in repayment 516,570 100.0 % 215,206 100.0 % Total TDR loans, gross $ 612,606 $ 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 or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. (4) The period of delinquency is based on the number of days scheduled payments are contractually past due. 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. Years Ended December 31, 2016 2015 2014 Modified Loans (1) Charge-offs Payment-Default Modified Loans (1) Charge-offs Payment-Default Modified Loans (1) Charge-offs Payment-Default TDR Loans $ 398,324 $ 24,628 $ 64,811 $ 244,890 $ 10,877 $ 51,602 $ 59,402 $ 948 $ 325 _______ (1) Represents the principal balance of loans that have been modified during the period and resulted in a TDR. Key Credit Quality Indicators FFELP Loans are at least 97 percent insured and guaranteed as to their principal and accrued interest in the event of default; therefore, there are no key credit quality indicators associated with FFELP Loans. 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 original approval 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. December 31, 2016 December 31, 2015 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance Cosigners: With cosigner $ 12,816,512 90 % $ 9,515,136 90 % Without cosigner 1,435,163 10 1,081,301 10 Total $ 14,251,675 100 % $ 10,596,437 100 % FICO at Origination: Less than 670 $ 920,132 6 % $ 700,779 7 % 670-699 2,092,722 15 1,554,959 15 700-749 4,639,958 33 3,403,823 32 Greater than or equal to 750 6,598,863 46 4,936,876 46 Total $ 14,251,675 100 % $ 10,596,437 100 % Seasoning (2) : 1-12 payments $ 3,737,110 26 % $ 3,059,901 29 % 13-24 payments 2,841,107 20 2,096,412 20 25-36 payments 1,839,764 13 1,084,818 10 37-48 payments 917,633 7 513,125 5 More than 48 payments 726,106 5 414,217 4 Not yet in repayment 4,189,955 29 3,427,964 32 Total $ 14,251,675 100 % $ 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 on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Private Education Loans December 31, 2016 2015 2014 Balance % Balance % Balance % Loans in-school/grace/deferment (1) $ 4,189,955 $ 3,427,964 $ 3,027,143 Loans in forbearance (2) 351,962 241,207 135,018 Loans in repayment and percentage of each status: Loans current 9,509,394 97.9 % 6,773,095 97.8 % 5,045,600 98.0 % Loans delinquent 31-60 days (3) 124,773 1.3 91,129 1.3 63,873 1.2 Loans delinquent 61-90 days (3) 51,423 0.5 42,048 0.6 29,041 0.6 Loans delinquent greater than 90 days (3) 24,168 0.3 20,994 0.3 10,701 0.2 Total Private Education Loans in repayment 9,709,758 100.0 % 6,927,266 100.0 % 5,149,215 100.0 % Total Private Education Loans, gross 14,251,675 10,596,437 8,311,376 Private Education Loans deferred origination costs 44,206 27,884 13,845 Total Private Education Loans 14,295,881 10,624,321 8,325,221 Private Education Loans allowance for losses (182,472 ) (108,816 ) (78,574 ) Private Education Loans, net $ 14,113,409 $ 10,515,505 $ 8,246,647 Percentage of Private Education Loans in repayment 68.1 % 65.4 % 62.0 % Delinquencies as a percentage of Private Education Loans in repayment 2.1 % 2.2 % 2.0 % Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance 3.5 % 3.4 % 2.6 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. Accrued Interest Receivable The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans greater than 90 days past due as compared to our allowance for uncollectible interest. The allowance for uncollectible interest exceeds the amount of accrued interest on our 90 days past due portfolio for all periods presented. Private Education Loan Accrued Interest Receivable Total Interest Receivable Greater Than 90 Days Past Due Allowance for Uncollectible Interest December 31, 2016 $ 739,847 $ 845 $ 2,898 December 31, 2015 $ 542,919 $ 791 $ 3,332 |
Premises and Equipment, Net
Premises and Equipment, Net | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Premises and equipment, net | Premises and Equipment, net The following is a summary of our premises and equipment. December 31, 2016 2015 Land and land improvements $ 12,574 $ 12,574 Buildings and leasehold improvements 60,919 56,446 Furniture, fixtures and equipment 15,026 12,275 Software 47,688 39,530 Premises and equipment, gross 136,207 120,825 Accumulated depreciation (49,144 ) (39,552 ) Premises and equipment, net $ 87,063 $ 81,273 Depreciation expense for premises and equipment was $9.6 million, $7.4 million and $6.1 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Deposits | Deposits The following table summarizes total deposits at December 31, 2016 and 2015 . December 31, 2016 2015 Deposits - interest bearing $ 13,434,990 $ 11,487,006 Deposits - non-interest bearing 677 701 Total deposits $ 13,435,667 $ 11,487,707 Interest bearing deposits as of December 31, 2016 and 2015 consisted of retail non-maturity savings deposits, retail and brokered non-maturity money market deposits (“MMDAs”), and brokered and retail certificates of deposit (“CDs”). Included in these accounts are what we consider core deposits from various sources. During 2016, we added $1.5 billion in deposits from Educational 529 and Health Savings Accounts as a way to diversify our funding sources. These and other large omnibus accounts, aggregating the deposits of many individual depositors, represented $ 5.4 billion of our deposit total as of December 31, 2016. Some of 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 $10.1 million, $10.5 million, and $10.3 million in the years ended December 31, 2016 , 2015 and 2014 , respectively. Fees paid to third-party brokers related to these CDs were $4.4 million, $4.1 million, and $15.2 million during the years ended December 31, 2016 , 2015 and 2014 , respectively. Interest bearing deposits at December 31, 2016 and 2015 are summarized as follows: December 31, 2016 December 31, 2015 Amount Year-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 7,129,404 1.22 % $ 4,886,299 1.19 % Savings 834,521 0.84 669,254 0.82 Certificates of deposit 5,471,065 1.41 5,931,453 0.98 Deposits - interest bearing $ 13,434,990 $ 11,487,006 ___ (1) Includes the effect of interest rate swaps in effective hedge relationships. Certificates of deposit remaining maturities are summarized as follows: December 31, 2016 2015 One year or less $ 2,565,246 $ 2,667,980 After one year to two years 1,364,812 1,210,429 After two years to three years 936,125 1,053,442 After three years to four years 225,245 630,851 After four years to five years 379,637 203,704 After five years — 165,047 Total $ 5,471,065 $ 5,931,453 As of December 31, 2016 and 2015 , there were $304.5 million and $709.9 million of deposits exceeding FDIC insurance limits. Accrued interest on deposits was $18.9 million and $15.7 million at December 31, 2016 and 2015 , respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Outstanding borrowings consist of secured borrowings issued through our term ABS program and our ABCP Facility. The following table summarizes our secured borrowings at December 31, 2016 and 2015. December 31, 2016 December 31, 2015 Short-Term Long-Term Total Short-Term Long-Term Total Secured borrowings: Private Education Loan term securitizations $ — $ 2,167,979 $ 2,167,979 $ — $ 579,101 $ 579,101 ABCP Facility — — — 500,175 — 500,175 Total $ — $ 2,167,979 $ 2,167,979 $ 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 ownership 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 and February 22, 2017, we amended and extended the maturity of our $ 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 0.90 percent on outstandings. The amended ABCP Facility extends the revolving period, during which we may borrow, repay and reborrow funds, until February 22, 2018. The scheduled amortization period, during which amounts outstanding under the ABCP Facility must be repaid, ends on February 22, 2019 (or earlier, if certain material adverse events occur). For additional information, see Note 24, “Subsequent Events.” At December 31, 2016 , there were no borrowings outstanding under the ABCP Facility. Short-term borrowings have a remaining term to maturity of one year or less. The following table summarizes the outstanding short-term borrowings, the weighted average interest rates at the end of the period and the related average balance and weighted average interest rates during the period. 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. Rates reflect stated interest of borrowings and related discounts and premiums. December 31, 2016 Year Ended December 31, 2016 Ending Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Short-term borrowings: ABCP Facility $ — — % $ 229,719 2.61 % Maximum outstanding at any month end $ 526,500 December 31, 2015 Year Ended December 31, 2015 Ending Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Short-term borrowings: ABCP Facility $ 500,175 0.84 % $ 135,064 3.10 % Maximum outstanding at any month end $ 710,005 Long-term Borrowings 2016 Transactions On May 26, 2016, we executed our SMB Private Education Loan Trust 2016-A term ABS transaction, which was accounted for as a secured financing. A total of $551 million of notes were issued in connection with the transaction. We retained a 100 percent or $50 million interest in the Class B notes and 100 percent of the residual certificates issued in the securitization. $501 million of Class A notes from the securitization were sold to third parties, raising $501 million of gross proceeds. The Class A notes had a weighted average life of 4.01 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 1.38 percent . At December 31, 2016, $ 564 million of our Private Education Loans were encumbered as a result of this transaction. On July 21, 2016, we executed our SMB Private Education Loan Trust 2016-B term ABS transaction, which was accounted for as a secured financing. A total of $657 million of notes were issued in connection with the transaction. We retained a 100 percent or $50 million interest in the Class B notes and 100 percent of the residual certificates issued in the securitization. $607 million of Class A notes from the securitization were sold to third parties, raising $607 million of gross proceeds. The Class A notes had a weighted average life of 4.01 and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 1.36 percent . At December 31, 2016, $ 683 million of our Private Education Loans were encumbered as a result of this transaction. On October 12, 2016, we executed our SMB Private Education Loan Trust 2016-C term ABS transaction, which was accounted for as a secured financing. A total of $674 million of notes were issued in connection with the transaction. We retained a 100 percent interest in the residual certificates issued in the securitization. $674 million of notes from the securitization were sold to third-parties, raising $673 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.27 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 1.15 percent. At December 31, 2016, $ 689 million of our Private Education Loans were encumbered as a result of this transaction. 2015 Transaction On July 30, 2015, we executed our SMB Private Education Loan Trust 2015-B term ABS transaction, which was accounted for as a secured financing. A total of $ 714 million of notes were issued in connection with the transaction. We retained a 5 percent or $ 33 million interest in the Class A and B notes, a 100 percent or $ 50 million interest in the Class C notes and 100 percent of the residual certificates issued in the securitization. $ 631 million of notes from the securitization were sold to third-parties, raising $ 623 million of gross proceeds. The Class A and B notes had a weighted average life of 4.8 years and priced at a weighted average LIBOR equivalent cost of 1 month LIBOR plus 1.53 percent . At December 31, 2016 , $ 627 million of our Private Education Loans were encumbered as a result of this transaction. The following table summarizes the outstanding long-term borrowings, the weighted average interest rates at the end of the period and the related average balance during the period. Rates reflect stated interest of borrowings and related discounts and premiums. The long-term borrowings amortize over time and mature serially from 2023 to 2040. December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2015 Ending Balance Weighted Average Average Balance Ending Balance Weighted Average Interest Rate Average Balance Floating rate borrowings $ 1,175,819 1.71 % $ 687,580 $ 337,098 1.38 % $ 151,373 Fixed rate borrowings 992,160 2.68 548,465 242,003 3.11 102,386 Total long-term borrowings $ 2,167,979 2.15 % $ 1,236,045 $ 579,101 2.10 % $ 253,759 Secured Financings Issue Date Issued Total Issued Weighted Average Cost of Funds (1) Weighted Average Life (in years) Private Education: 2015-B July 2015 $ 630,800 1 month LIBOR plus 1.53% 4.82 Total notes issued in 2015 $ 630,800 Total loans and accrued interest amount securitized at inception in 2015 $ 745,580 2016-A May 2016 $ 501,000 1 month LIBOR plus 1.38% 4.01 2016-B July 2016 607,000 1 month LIBOR plus 1.36% 4.01 2016-C October 2016 674,000 1 month LIBOR plus 1.15% 4.27 Total notes issued in 2016 $ 1,782,000 Total loans and accrued interest amount securitized at inception in 2016 $ 2,107,042 ____________ (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. December 31, 2016 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets (1) Total Secured borrowings: Private Education Loan term securitization $ — $ 2,167,979 $ 2,167,979 $ 2,562,156 $ 44,617 $ 160,783 $ 2,767,556 ABCP Facility — — — — — — — Total $ — $ 2,167,979 $ 2,167,979 $ 2,562,156 $ 44,617 $ 160,783 $ 2,767,556 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 represent accrued interest receivable. Other Borrowing Sources We maintain discretionary uncommitted Federal Funds lines of credit with various correspondent banks, which totaled $ 125.0 million at December 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 years ended December 31, 2016 , 2015 and 2014. We established an account at the FRB to meet eligibility requirements for access to the Primary Credit borrowing facility at the FRB’s Discount Window (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 December 31, 2016 and December 31, 2015, the value of our pledged collateral at the FRB totaled $ 2.6 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 years ended December 31, 2016 , 2015 and 2014. |
Private Education Loan Term Sec
Private Education Loan Term Securitizations Private Education Loan Term Securitizations | 12 Months Ended |
Dec. 31, 2016 | |
Transfers and Servicing [Abstract] | |
Private Education Loan Term Securitizations | Private Education Loan Term Securitizations We securitize Private Education Loan assets by selling these assets to securitization trusts. If we have a variable interest in a VIE (e.g., a securitization trust) and have determined that we are the primary beneficiary, then we will consolidate the VIE and the transfer is accounted for as a financing. For additional information, see Note 9, “Borrowings.” If a transfer of loans qualifies as a sale, we derecognize the loan and recognize a gain or loss as the difference between compensation received and the carrying basis of the loans sold and liabilities retained. We recognize the results of a transfer of loans based upon the settlement date of the transaction. On October 27, 2015, we executed a $ 701 million Private Education Loan term ABS transaction that qualified for sale treatment and removed the principal balance of the loans backing the securitization trust from our balance sheet on the settlement date. We continue to service the loans in the trust. In the fourth quarter of 2015, we recorded a pre-tax gain of $ 58 million on the sale, net of closing adjustments and transaction costs, a 7.8 percent premium. On April 23, 2015, we executed a $ 738 million Private Education Loan term ABS transaction that qualified for sale treatment and removed the principal balance of the loans backing the securitization trust from our balance sheet on the settlement date. We continue to service the loans in the trust. In the second quarter of 2015, we recorded a pre-tax gain of $ 77 million on the sale, net of closing adjustments and transaction costs, a 10.4 percent premium. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Risk Management Strategy We maintain an overall interest rate risk management strategy that incorporates the use of derivative instruments to 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 that are linked to the hedged item will generally offset the effect of this unrealized appreciation or depreciation or volatility in cash flows for the period the item is being hedged. We view this strategy as a prudent management of interest rate risk. Although we use derivatives to 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 plus collateral posted. When the fair value of a derivative contract less collateral held and 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 Derivatives Association, Inc. 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 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 Wall Street Reform and Consumer Protection Act of 2010 requires all standardized derivatives, including most interest rate swaps, to be submitted for clearing to central counterparties to reduce counterparty risk. As of December 31, 2016, $ 4.8 billion notional of our derivative contracts were cleared on the Chicago Mercantile Exchange and the London Clearing House. This represents 92.1 percent of our total notional derivative contracts of $ 5.2 billion. 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 December 31, 2016 and 2015 , we had a net positive exposure (derivative gain positions to us, less collateral held by us plus collateral posted with counterparties) related to derivatives of $44.6 million and $50.1 million, respectively. Accounting for Derivative Instruments The accounting for derivative instruments requires that every derivative instrument, including certain derivative instruments embedded in other contracts, be recorded on the balance sheet as either an asset or liability measured at fair value. Our derivative instruments are classified and accounted for by us as fair value hedges and cash flow hedges. Fair Value Hedges We generally use fair value hedges to offset the exposure to changes in fair value of a recognized fixed-rate liability. We enter into interest rate swaps to economically convert fixed-rate debt into variable-rate debt. For fair value hedges, we generally consider all components of the derivative’s gain and/or loss when assessing hedge effectiveness and generally hedge changes in fair values due to interest rates. Cash Flow Hedges We use cash flow hedges to hedge the exposure to variability in cash flows of floating-rate deposits. This strategy is used primarily to minimize the exposure to volatility in cash flows from future changes in interest rates. Gains and losses on the effective portion of a qualifying hedge are recorded in accumulated other comprehensive income and ineffectiveness is recorded immediately to earnings. In assessing hedge effectiveness, generally all components of each derivative’s gains or losses are included in the assessment. We hedge exposure to changes in cash flows due to changes in interest rates or total changes in cash flow. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate deposits. During the next twelve months, we estimate that $ 11.2 million will be reclassified as an increase to interest expense. Trading Activities When derivative instruments do not qualify for hedge accounting treatment, they are accounted for at fair value with all changes in fair value recorded through earnings. All our derivative instruments entered into after December 31, 2013 with a maturity of less than 3 years are economically hedging risk, but do not receive hedge accounting treatment. Trading derivatives also include any hedges that originally received hedge accounting treatment, but lost hedge accounting treatment due to failed effectiveness testing, as well as the activity of certain derivatives prior to those derivatives receiving hedge accounting treatment. Summary of Derivative Financial Statement Impact The following tables summarize the fair values and notional amounts of all derivative instruments at December 31, 2016 and 2015 , and their impact on earnings and other comprehensive income for the years ended December 31, 2016 , 2015 and 2014 . Impact of Derivatives on the Consolidated Balance Sheet Cash Flow Hedges Fair Value Hedges Trading Total December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2016 2015 2016 2015 2016 2015 2016 2015 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ — $ — $ 7,808 $ 15,231 $ — $ 83 $ 7,808 $ 15,314 Derivative Liabilities: (2) Interest rate swaps Interest rate (14,463 ) (27,512 ) (10,398 ) (2,339 ) (1,076 ) (646 ) (25,937 ) (30,497 ) Total net derivatives $ (14,463 ) $ (27,512 ) $ (2,590 ) $ 12,892 $ (1,076 ) $ (563 ) $ (18,129 ) $ (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 December 31, December 31, December 31, December 31, 2016 2015 2016 2015 Gross position (1) $ 7,808 $ 15,314 $ (25,937 ) $ (30,497 ) Impact of master netting agreement (7,808 ) (9,278 ) 7,808 9,278 Derivative values with impact of master netting agreements (as carried on balance sheet) — 6,036 (18,129 ) (21,219 ) Cash collateral (held) pledged — (1,070 ) 48,134 54,845 Net position $ — $ 4,966 $ 30,005 $ 33,626 (1) Gross position amounts are exclusive of accrued interest. Cash Flow Fair Value Trading Total December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2016 2015 2016 2015 2016 2015 2016 2015 Notional Values Interest rate swaps $ 1,054,688 $ 1,109,933 $ 3,628,062 $ 3,080,167 $ 494,638 $ 1,305,757 $ 5,177,388 $ 5,495,857 Impact of Derivatives on the Consolidated Statements of Income Years Ended December 31, 2016 2015 2014 Fair Value Hedges Interest rate swaps: Hedge ineffectiveness (losses) gains recorded in earnings (1) $ (1,035 ) $ 2,695 $ 1,718 Realized gains recorded in interest expense 27,810 29,940 20,958 Total $ 26,775 $ 32,635 $ 22,676 Cash Flow Hedges Interest rate swaps: Hedge ineffectiveness losses recorded in earnings (1) $ (1,579 ) $ (1,427 ) $ (520 ) Realized losses recorded in interest expense (17,665 ) (21,475 ) (9,070 ) Total $ (19,244 ) $ (22,902 ) $ (9,590 ) Trading Interest rate swaps: Interest reclassification $ 2,170 $ 3,451 $ (2,250 ) Change in fair value of future interest payments recorded in earnings (513 ) 581 (2,944 ) Total (1) 1,657 4,032 (5,194 ) Total $ 9,188 $ 13,765 $ 7,892 (1) Amounts included in “(losses) gains on derivatives and hedging activities, net.” Impact of Derivatives on the Statements of Changes in Stockholders’ Equity Years Ended December 31, 2016 2015 2014 Amount of loss recognized in other comprehensive income (loss) $ (3,901 ) $ (26,699 ) $ (28,842 ) Amount of loss reclassified in interest expense (1) (17,665 ) (21,475 ) (9,070 ) Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit $ 13,764 $ (5,224 ) $ (19,772 ) (1) Amounts included in “realized losses recorded in interest expense” in the “Impact of Derivatives on the Consolidated Statements of Income” table. Cash Collateral Cash collateral held related to derivative exposure between us and our derivatives counterparties was $1.0 million and $1.1 million at December 31, 2016 and 2015 , respectively. Collateral held is recorded in “Other Liabilities” on the consolidated balance sheets. Cash collateral pledged related to derivative exposure between us and our derivatives counterparties was $49.1 million and $54.8 million at December 31, 2016 and 2015 , respectively. Collateral pledged is recorded in “Other interest-earning assets” on the consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock At December 31, 2016 , we had outstanding 3.3 million shares of 6.97 percent Cumulative Redeemable Preferred Stock, Series A (the “Series A Preferred Stock”) and 4.0 million shares of Floating-Rate Non-Cumulative Preferred Stock, Series B (the “Series B Preferred Stock”). In connection with the Spin-Off, the Company, by reason of a statutory merger, succeeded pre-Spin-Off SLM and issued Series A Preferred Stock and Series B Preferred Stock on terms substantially similar to those of pre-Spin-Off SLM’s respective series of preferred stock. Neither series has a maturity date, but can be redeemed at our option. Redemption would include any accrued and unpaid dividends for the then current quarterly dividend period (and, in the case of the Series A Preferred Stock, any prior dividend periods), up to the redemption date. The shares have no preemptive or conversion rights and are not exchangeable for any of our other securities or property. Dividends on both series are not mandatory and are paid quarterly, when, as, and if declared by the Board of Directors. Holders of Series A Preferred Stock are entitled to receive cumulative, quarterly cash dividends at the annual rate of $ 3.485 per share. Holders of Series B Preferred Stock are entitled to receive quarterly dividends based on 3-month LIBOR plus 170 basis points per annum in arrears. Upon liquidation or dissolution of the Company, holders of the Series A and Series B Preferred Stock are entitled to receive $ 50 and $ 100 per share, respectively, plus an amount equal to accrued and unpaid dividends for the then current quarterly dividend period (and, in the case of the Series A Preferred Stock, all prior dividend periods), pro rata, and before any distribution of assets are made to holders of our common stock. Common Stock Our shareholders have authorized the issuance of 1.125 billion shares of common stock (par value of $ .20 ). At December 31, 2016 , 429 million shares were issued and outstanding and 52 million shares were unissued but encumbered for outstanding stock options, restricted stock units and dividend equivalent units for employee compensation and remaining authority for stock-based compensation plans. We did not pay common stock dividends for the years ended December 31, 2016 and 2015. Because of the carve-out accounting treatment, there were no common stock dividends recognized in the financial statements for the year ended December 31, 2014 . For additional information, see Note 2, “Significant Accounting Policies — Basis of Presentation.” We currently do not intend to initiate a publicly announced share repurchase program. We only expect to repurchase common stock acquired in connection with taxes withheld resulting from award exercises and vesting under our employee stock-based compensation plans. The following table summarizes our common share repurchases and issuances associated with these programs. Years Ended December 31, (Shares and per share amounts in actuals) 2016 2015 2014 Shares repurchased related to employee stock-based compensation plans (1) 3,354,730 3,008,913 1,365,277 Average purchase price per share $ 7.83 $ 9.65 $ 8.93 Common shares issued (2) 5,955,045 5,873,309 2,013,805 (1) Comprises shares withheld from stock option exercises and vesting of restricted stock for employees’ tax withholding obligations and shares tendered by employees to satisfy option exercise costs. (2) Common shares issued under our various compensation and benefit plans. The closing price of our common stock on December 30, 2016 was $ 11.02 . |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 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. The determination of the weighted-average shares and diluted potential common shares for pre-Spin-Off periods are based on the activity at pre-Spin-Off SLM. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows. Years Ended December 31, (In thousands, except per share data) 2016 2015 2014 Numerator: Net income attributable to SLM Corporation $ 250,327 $ 274,284 $ 194,219 Preferred stock dividends 21,204 19,595 12,933 Net income attributable to SLM Corporation common stock $ 229,123 $ 254,689 $ 181,286 Denominator: Weighted average shares used to compute basic EPS 427,876 425,574 423,970 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units and Employee Stock Purchase Plan (“ESPP”) (1)(2) 5,043 6,660 8,299 Weighted average shares used to compute diluted EPS 432,919 432,234 432,269 Basic earnings per common share attributable to SLM Corporation $ 0.54 $ 0.60 $ 0.43 Diluted earnings per common share attributable to SLM Corporation $ 0.53 $ 0.59 $ 0.42 __________ (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method. (2) For the years ended December 31, 2016 , 2015 and 2014 , securities covering approximately 1 million, 2 million and 3 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. |
Stock-Based Compensation Plans
Stock-Based Compensation Plans and Arrangements | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation Plans and Arrangements | Stock-Based Compensation Plans and Arrangements Plan Summaries As of December 31, 2016 , we had one active stock-based compensation plan that provides for grants of equity awards to our employees and non-employee directors. We also maintained an Employee Stock Purchase Plan (“ESPP”). Shares issued under these stock-based compensation plans may be either shares reacquired by us or shares that are authorized but unissued. The SLM Corporation 2012 Omnibus Incentive Plan was approved by shareholders on May 24, 2012. At December 31, 2016, 25 million shares, as adjusted to reflect the effects of the Spin-Off, were authorized to be issued from this plan. An amendment to our ESPP was approved by our shareholders on May 24, 2012 that authorized the issuance of 6 million shares under the plan and kept the terms of the plan substantially the same. The number of shares authorized under the plan was subsequently adjusted to 15 million shares on June 25, 2014, to reflect the effects of the Spin-Off. Stock-Based Compensation The total stock-based compensation cost recognized in the consolidated statements of income for the years ended December 31, 2016 , 2015 and 2014 was $22.9 million, $21.6 million and $25.0 million, respectively. As of December 31, 2016 , there was $ 14.8 million of total unrecognized compensation expense related to unvested stock awards net of estimated forfeitures, which is expected to be recognized over a weighted average period of 1.4 years . We amortize compensation expense on a straight-line basis over the related vesting periods of each tranche of each award. Stock Options Stock options granted prior to 2012 expire 10 years after the grant date, and those granted since 2012 expire in 5 years. The exercise price must be equal to or greater than the market price of our common stock on the grant date. We have granted time-vested, price-vested and performance-vested options to our employees and non-employee directors. Time-vested options granted to management and non-management employees generally vest over three years . Price-vested options granted to management employees vest upon our common stock reaching a targeted closing price for a set number of days. Performance-vested options granted to management employees vest one-third per year for three years based on corporate earnings-related performance targets. Options granted to non-employee directors vest upon the director’s election to the Board. There were no options granted in the years ended December 31, 2016 and 2015. The fair values of the options granted in the year ended December 31, 2014 were estimated as of the grant date using a Black-Scholes option pricing model with the following weighted average assumptions: Year Ended December 31, (Dollars per share) 2014 Risk-free interest rate 0.76 % Expected volatility 26 % Expected dividend rate 2.48 % Expected life of the option 2.9 years Weighted average fair value of options granted $ 3.48 The expected life of the options is based on observed historical exercise patterns. Groups of employees (and non-employee directors) that have received similar option grant terms are considered separately for valuation purposes. The expected volatility is based on implied volatility from publicly traded options on our stock at the grant date and historical volatility of our stock consistent with the expected life of the option. The risk-free interest rate is based on the U.S. Treasury spot rate at the grant date consistent with the expected life of the option. The dividend yield is based on the projected annual dividend payment per share based on the dividend amount at the grant date, divided by the stock price at the grant date. The following table summarizes stock option activity for the year ended December 31, 2016 . (Dollars in thousands, except per share data) Number of Options Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (1) Outstanding at December 31, 2015 11,910,976 $ 10.08 Granted — — Exercised (2)(3) (3,000,047 ) 5.74 Canceled (1,315,870 ) 18.56 Outstanding at December 31, 2016 (4) 7,595,059 $ 10.43 1.8 $ 39,357 Exercisable at December 31, 2016 7,589,682 $ 6.13 1.8 $ 39,344 (1) The aggregate intrinsic value represents the total intrinsic value (the aggregate difference between our closing stock price on December 31, 2016 and the exercise price of in-the-money options) that would have been received by the option holders if all in-the-money options had been exercised on December 31, 2016. (2) The total intrinsic value of options exercised was $9.3 million, $13.7 million, and $11.4 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. (3) Cash of $0.2 million was received from option exercises for the year ended December 31, 2016. The actual tax benefit realized for the tax deductions from option exercises totaled $3.4 million for the year ended December 31, 2016. (4) For net-settled options, gross number is reflected. Restricted Stock Restricted stock awards generally vest over one year and in some cases based on corporate earnings-related performance targets. Outstanding restricted stock is entitled to dividend equivalent units that vest subject to the same vesting requirements or lapse of transfer restrictions, as applicable, as the underlying restricted stock award. The fair value of restricted stock awards is based on our stock price at the grant date. The following table summarizes restricted stock activity for the year ended December 31, 2016 . (Amounts in thousands, except per share data) Number of Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2015 86,174 $ 8.94 Granted 120,879 6.37 Vested (1) (86,174 ) 8.94 Canceled — — Non-vested at December 31, 2016 (2) 120,879 $ 6.37 (1) The total fair value of shares that vested during the years ended December 31, 2016 , 2015 and 2014 was $0.8 million, $0.5 million and $0.4 million, respectively. (2) As of December 31, 2016 , there was $0.4 million of unrecognized compensation cost related to restricted stock net of estimated forfeitures, which is expected to be recognized over a weighted average period of 0.5 years . Restricted Stock Units and Performance Stock Units Restricted stock units (“RSUs”) and performance stock units (“PSUs”) are equity awards granted to employees that entitle the holder to shares of our common stock when the award vests. RSUs may be time-vested over three years or vested at grant but subject to transfer restrictions, while PSUs vest based on corporate performance targets over a three -year period. Outstanding RSUs are entitled to dividend equivalent units that vest subject to the same vesting requirements or lapse of transfer restrictions, as applicable, as the underlying award. The fair value of RSUs is based on our stock price at the grant date. The following table summarizes RSU and PSU activity for the year ended December 31, 2016 . (Amounts in thousands, except per share data) Number of RSUs/ PSUs Weighted Average Grant Date Fair Value Outstanding at December 31, 2015 5,840,388 $ 8.52 Granted 4,508,818 5.95 Vested and converted to common stock (1) (2,798,828 ) 7.92 Canceled (63,768 ) 7.02 Outstanding at December 31, 2016 (2) 7,486,610 $ 7.21 (1) The total fair value of RSUs/PSUs that vested and converted to common stock during the years ended December 31, 2016 , 2015 and 2014 was $22.2 million, $18.9 million and $12.6 million, respectively. (2) As of December 31, 2016 , there was $14.3 million of unrecognized compensation cost related to RSUs/PSUs net of estimated forfeitures, which is expected to be recognized over a weighted average period of 1.4 years . Employee Stock Purchase Plan Employees may purchase shares of our common stock at the end of a 12 -month offering period at a price equal to the share price at the beginning of the 12-month period, less 15 percent , up to a maximum purchase price of $7,500 (whole dollars). The purchase price for each offering is determined at the beginning of the offering period on August 1. The fair values of the stock purchase rights of the ESPP offerings were calculated using a Black-Scholes option pricing model with the following weighted average assumptions: Years Ended December 31, (Dollars per share) 2016 2015 2014 Risk-free interest rate 0.50 % 0.33 % 0.13 % Expected volatility 32 % 27 % 25 % Expected dividend rate — % — % — % Expected life of the option 1 year 1 year 1 year Weighted average fair value of stock purchase rights $ 1.53 $ 1.74 $ 1.66 The expected volatility is based on implied volatility from publicly traded options on our stock at the grant date and historical volatility of our stock consistent with the expected life. The risk-free interest rate is based on the U.S. Treasury bill rate at the grant date consistent with the expected life. The dividend yield is zero , as we have not paid dividends nor do we anticipate paying dividends on our common stock in 2017. The fair values were amortized to compensation cost on a straight-line basis over a one -year vesting period. As of December 31, 2016 , there was $0.2 million of unrecognized compensation cost related to the ESPP, net of estimated forfeitures, which is expected to be recognized by July 2017. No shares were purchased for the year ended December 31, 2016, as our stock price on July 31, 2016 was less than the offering price for the ESPP plan. During the year ended December 31, 2015, plan participants purchased 163,136 shares of our common stock. As our ESPP resumed in late 2014, no shares were purchased for the year ended December 31, 2014. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We use estimates of fair value in applying various accounting standards for the consolidated financial statements. We categorize our fair value estimates based on a hierarchal framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. For additional information regarding our policies for determining fair value and the hierarchical framework, see Note 2, “Significant Accounting Policies — Fair Value Measurement.” The following table summarizes the valuation of our financial instruments that are marked-to-fair value on a recurring basis. Fair Value Measurements on a Recurring Basis December 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Available-for-sale investments $ — $ 208,603 $ — $ 208,603 $ — $ 195,391 $ — $ 195,391 Derivative instruments — 7,808 — 7,808 — 15,314 — 15,314 Total $ — $ 216,411 $ — $ 216,411 $ — $ 210,705 $ — $ 210,705 Liabilities Derivative instruments $ — $ (25,937 ) $ — $ (25,937 ) $ — $ (30,497 ) $ — $ (30,497 ) Total $ — $ (25,937 ) $ — $ (25,937 ) $ — $ (30,497 ) $ — $ (30,497 ) The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. December 31, 2016 December 31, 2015 Fair Value Carrying Value Difference Fair Value Carrying Value Difference Earning assets Loans held for investment, net $ 16,520,786 $ 15,137,922 $ 1,382,864 $ 12,343,726 $ 11,630,591 $ 713,135 Cash and cash equivalents 1,918,793 1,918,793 — 2,416,219 2,416,219 — Available-for-sale investments 208,603 208,603 — 195,391 195,391 — Accrued interest receivable 766,106 766,106 — 564,496 564,496 — Tax indemnification receivable 259,532 259,532 — 186,076 186,076 — Derivative instruments 7,808 7,808 — 15,314 15,314 — Total earning assets $ 19,681,628 $ 18,298,764 $ 1,382,864 $ 15,721,222 $ 15,008,087 $ 713,135 Interest-bearing liabilities Money-market and savings accounts $ 7,963,925 $ 7,963,925 $ — $ 5,556,254 $ 5,556,254 $ — Certificates of deposit 5,510,504 5,471,065 (39,439 ) 5,928,450 5,931,453 3,003 Short-term borrowings — — — 500,175 500,175 — Long-term borrowings 2,160,105 2,167,979 7,874 567,468 579,101 11,633 Accrued interest payable 21,058 21,058 — 16,385 16,385 — Derivative instruments 25,937 25,937 — 30,497 30,497 — Total interest-bearing liabilities $ 15,681,529 $ 15,649,964 (31,565 ) $ 12,599,229 $ 12,613,865 $ 14,636 Excess of net asset fair value over carrying value $ 1,351,299 $ 727,771 The methods and assumptions used to estimate the fair value of each class of financial instruments are as follows: Cash and Cash Equivalents Cash and cash equivalents are carried at cost. Carrying value approximated fair value for disclosure purposes. These are level 1 valuations. Investments Investments are classified as available-for-sale and are carried at fair value in the consolidated financial statements. Investments in mortgage-backed securities are valued using observable market prices of similar assets. As such, these are level 2 valuations. Loans Held For Investment Our Private Education Loans and FFELP Loans are accounted for at cost or at the lower of cost or market if the loan is held-for-sale. For both Private Education Loans and FFELP Loans, fair value was determined by modeling expected loan level cash flows using stated terms of the assets and internally developed assumptions to determine aggregate portfolio yield, net present value and average life. The significant assumptions used to determine fair value are prepayment speeds, default rates, cost of funds and required return on equity. Significant inputs into the model are not observable. However, we do calibrate the model based on market transactions when appropriate. As such, these are level 3 valuations. Accrued Interest Receivable Accrued interest receivable is carried at cost. The carrying value approximates fair value due to its short-term nature. This is a level 1 valuation. Tax Indemnification Receivable Tax indemnification receivable is carried at cost. The carrying value approximates fair value. This is a level 2 valuation. Money Market and Savings Accounts The fair value of money market and savings accounts equal the amounts payable on demand at the balance sheet date and are reported at their carrying value. These are level 1 valuations. Certificates of Deposit The fair values of CDs are estimated using discounted cash flows based on rates currently offered for deposits of similar remaining maturities. These are level 2 valuations. Accrued Interest Payable Accrued interest payable is carried at cost. The carrying value approximates fair value due to its short-term nature. This is a level 1 valuation. Borrowings Borrowings are accounted for at cost in the consolidated financial statements. The carrying value of short-term borrowings approximated fair value for disclosure purposes, due to the short-term nature of those borrowings. This is a level 1 valuation. The fair value of long-term borrowings is estimated using current market prices. This is a level 2 valuation. Derivatives All derivatives are accounted for at fair value in the consolidated financial statements. The fair value of derivative financial instruments was determined by a standard derivative pricing and option model using the stated terms of the contracts and observable market inputs. It is our policy to compare the derivative fair values to those received from our counterparties in order to evaluate the model’s outputs. When determining the fair value of derivatives, we take into account counterparty credit risk for positions where we are exposed to the counterparty on a net basis by assessing exposure net of collateral held. When the counterparty has exposure to us under derivative contracts with the Company, we fully collateralize the exposure (subject to certain thresholds). Interest rate swaps are valued using a standard derivative cash flow model with a LIBOR swap yield curve, which is an observable input from an active market. These derivatives are level 2 fair value estimates in the hierarchy. The carrying value of borrowings designated as the hedged item in a fair value hedge is adjusted for changes in fair value due to changes in the benchmark interest rate (one-month LIBOR). These valuations are determined through standard pricing models using the stated terms of the borrowings and observable yield curves. |
Arrangements with Navient Corpo
Arrangements with Navient Corporation | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Arrangements with Navient Corporation | Arrangements with Navient Corporation In connection with the Spin-Off, we entered into a Separation and Distribution Agreement with Navient (the “Separation and Distribution Agreement”). We also entered into various other ancillary agreements with Navient to effect the Spin-Off and provide a framework for our relationship with Navient thereafter, such as a transition services agreement, a tax sharing agreement, an employee matters agreement, a loan servicing and administration agreement, a joint marketing agreement, a key services agreement, a data sharing agreement and a master sublease agreement. The majority of these agreements are transitional in nature with most having terms that have expired or will expire within the next two to three years . We continue to have exposure to risks related to Navient’s creditworthiness. If we are unable to obtain indemnification payments from Navient, our results of operations and financial condition could be materially and adversely affected. Pursuant to the terms of the Spin-Off and applicable law, Navient assumed responsibility for all liabilities (whether accrued, contingent or otherwise and whether known or unknown) arising out of or resulting from the conduct of pre-Spin-Off SLM and its subsidiaries’ businesses prior to the Spin-Off, other than certain specifically identified liabilities relating to the conduct of our consumer banking business. Nonetheless, given the prior usage of the Sallie Mae and SLM names by entities now owned by Navient, we and our subsidiaries may from time to time be improperly named as defendants in legal proceedings where the allegations at issue are the legal responsibility of Navient. Most of these legal proceedings involve matters that arose in whole or in part in the ordinary course of business of pre-Spin-Off SLM. Likewise, as the period of time since the Spin-Off increases, so does the likelihood any allegations that may be made may be in part for our own actions in a post-Spin-Off time period and in part for Navient’s conduct in a pre-Spin-Off time period. We will not be providing information on these proceedings unless there are material issues of fact or disagreement with Navient as to the bases of the proceedings or responsibility therefor that we believe could have a material, adverse impact on our business, assets, financial condition, liquidity or outlook if not resolved in our favor. We briefly summarize below some of the most significant agreements and relationships we continue to have with Navient. For additional information regarding the Separation and Distribution Agreement and the other ancillary agreements, see our Current Report on Form 8-K filed on May 2, 2014. Separation and Distribution Agreement The Separation and Distribution Agreement addresses, among other things, the following ongoing activities: • the obligation of each party to indemnify the other against liabilities retained or assumed by that party pursuant to the Separation and Distribution Agreement and in connection with claims of third-parties; • the allocation among the parties of rights and obligations under insurance policies; • the agreement by us and Navient (i) not to engage in certain competitive business activities for a period of five years , (ii) as to the effect of the non-competition provisions on post-spin merger and acquisition activities of the parties and (iii) regarding “first look” opportunities; and • the creation of a governance structure, including a separation oversight committee of representatives from us and Navient, by which matters related to the separation and other transactions contemplated by the Separation and Distribution Agreement will be monitored and managed. The Separation and Distribution Agreement provides specific processes and procedures pursuant to which we may submit claims for indemnification to Navient and, to date, Navient has acknowledged and accepted substantially all claims that we have submitted. Nonetheless, if for any reason Navient is unable or unwilling to pay claims made against it, our costs, operating expenses, cash flows and financial condition could be materially and adversely affected over time. Indemnification Obligations Navient is responsible for, and has agreed to indemnify us against, all claims, actions, damages, losses or expenses that may arise from the conduct of all activities of pre-Spin-Off SLM occurring prior to the Spin-Off other than those specifically excluded in the Separation and Distribution Agreement. Some significant examples of the types of indemnification obligations Navient has under the Separation and Distribution Agreement and related ancillary agreements include: • Navient will indemnify the Company and the Bank for any liabilities, costs or expenses they may incur arising from any action or threatened action related to the servicing, operations and collections activities of pre-Spin-Off SLM and its subsidiaries with respect to Private Education Loans and FFELP Loans that were assets of the Bank or Navient at the time of the Spin-Off; provided that written notice is provided to Navient on or prior to April 30, 2017, the third anniversary date of the Spin-Off. Navient will not indemnify for changes in law or changes in prior existing interpretations of law that occur on or after April 30, 2014. • 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”) and a Consent Order (the “DOJ Consent Order”) issued by the Department of Justice (the “DOJ”). Under the terms of the Separation and Distribution Agreement, Navient is responsible for funding all liabilities under the regulatory orders and, as of the date hereof, has funded all liabilities other than fines directly levied against the Bank in connection with these matters which the Bank is required to pay. • Pursuant to a tax sharing agreement, Navient has agreed to indemnify us for $283 million in deferred taxes that the Company will be legally responsible for but that relate to gains recognized by the Company’s predecessor on debt repurchases made prior to the Spin-Off. The remaining amount of this indemnification at December 31, 2016 was $116 million . In connection with the Spin-Off, we also recorded a liability related to uncertain tax positions of $ 27 million for which we are indemnified by Navient. As of December 31, 2016, the remaining balance of the indemnification receivable related to those uncertain tax positions was $ 28 million. In addition, we believe we are indemnified by Navient for uncertain tax positions relating to historical transactions among entities that are now subsidiaries of Navient that should have been recorded at the time of the Spin-Off. The remaining balance of the indemnification receivable related to these uncertain tax positions also was $116 million at December 31, 2016. See Note 2, “Significant Accounting Policies — Correction Recorded in the Current Period” and “—Income Taxes,” for additional details. Long-Term Arrangements The loan servicing and administration agreement governs the terms by which Navient provides servicing, administration and collection services for the Bank’s portfolio of FFELP Loans and $67 million of Private Education Loans, as well as servicing history information with respect to Private Education Loans previously serviced by Navient and access to certain promissory notes in Navient’s possession. The loan servicing and administration agreement has a fixed term with a renewal option in favor of the Bank. The data sharing agreement states we will continue to have the right to obtain from Navient certain post-Spin-Off performance data relating to Private Education Loans owned or serviced by Navient to support and facilitate ongoing underwriting, originations, forecasting, performance and reserve analyses. The tax sharing agreement governs the respective rights, responsibilities and obligations of us and Navient after the Spin-Off relating to taxes, including with respect to the payment of taxes, the preparation and filing of tax returns and the conduct of tax contests. Under this agreement, each party is generally liable for taxes attributable to its business. The agreement also addresses the allocation of tax liabilities that are incurred as a result of the Spin-Off and related transactions. Additionally, the agreement restricts the parties from taking certain actions that could prevent the Spin-Off from qualifying for the anticipated tax treatment. Amended Loan Participation and Purchase Agreement Prior to the Spin-Off, the Bank sold substantially all of its Private Education Loans to several former affiliates, now subsidiaries of Navient (collectively, the “Purchasers”), pursuant to this agreement. This agreement predates the Spin-Off, but 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 Split Loans (at fair value) for which the borrower also has a separate lending relationship with Navient when the Split Loans either (1) are more than 90 days past due; (2) have been restructured; (3) have been granted a hardship forbearance or more than 6 months of administrative forbearance; or (4) have a borrower or cosigner who has filed for bankruptcy. At December 31, 2016, we held approximately $67 million of Split Loans. During the year ended December 31, 2016, the Bank separately sold loans to the Purchasers in the amount of $ 15.7 million in principal and $ 0.3 million in accrued interest income. During the year ended December 31, 2015, the Bank separately sold loans to the Purchasers in the amount of $27.0 million in principal and $0.6 million in accrued interest income. During the year ended December 31, 2014, the Bank sold loans to the Purchasers in the amount of $804.7 million in principal and $5.7 million in accrued interest income. There was no gain or loss resulting from loans sold to the Purchasers in the year ended December 31, 2016 and 2015, respectively. The gain resulting from loans sold to the Purchasers was $35.8 million in the year ended December 31, 2014. Total write-downs to fair value for loans sold to the Purchasers with a fair value lower than par totaled $ 6.0 million, $7.6 million and $53.5 million in the years ended December 31, 2016, 2015 and 2014, respectively. Navient is the servicer for all of these loans. |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | Regulatory Capital The Bank is subject to various regulatory capital requirements administered by the FDIC and UDFI. 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 operations and financial condition. Under the FDIC’s regulations implementing 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. The Bank is 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 (which is being phased in over several years), 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 December 31, 2016: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 2,011,583 12.6 % $ 1,038,638 > 6.5 % Tier 1 Capital (to Risk-Weighted Assets) $ 2,011,583 12.6 % $ 1,278,323 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 2,197,997 13.8 % $ 1,597,904 > 10.0 % Tier 1 Capital (to Average Assets) $ 2,011,583 11.1 % $ 907,565 > 5.0 % 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 on its common stock for the years ended December 31, 2016 , 2015 and 2014, respectively. For the foreseeable future, we expect the Bank to only pay dividends to the Company as may be necessary to provide for regularly scheduled dividends payable on the Company’s Series A and Series B Preferred Stock. |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Dec. 31, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Defined Contribution Plans | Defined Contribution Plans We participate in a defined contribution plan which is intended to qualify under section 401(k) of the Internal Revenue Code. The Sallie Mae 401(k) Savings Plan covers substantially all employees. After six months of service, we match 100 percent of the first three percent of contributions and match 50 percent of the next two percent of contributions for eligible employees. After one month of service, eligible employees receive a one percent core employer contribution. For the years ended December 31, 2016 , 2015 and 2014 , we contributed $ 4.4 million, $ 3.8 million and $3.1 million, respectively, to this plan. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 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 such approval, 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 December 31, 2016 , we had $ 1.7 billion of outstanding contractual loan commitments which we expect to fund during the remainder of the 2016/2017 academic year. At December 31, 2016 , we had a $1.7 million reserve recorded in “Other Liabilities” to cover expected losses that may 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 the FDIC Consent Order and the DOJ Consent Order. The FDIC Consent Order replaces a prior cease and desist order jointly issued in August 2008 by the FDIC and the UDFI which was terminated on July 15, 2014. On May 13, 2014, the Bank reached a settlement with the DOJ, and agreed to the DOJ Consent Order, regarding compliance issues with the SCRA. At the same time, the Bank reached a settlement with the FDIC regarding disclosures and assessments of certain late fees, as well as compliance with the SCRA. 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. The DOJ Consent Order was approved by the U.S. District Court for the District of Delaware on September 29, 2014. Under the terms of the Separation and Distribution Agreement, Navient is responsible for funding all liabilities under the regulatory orders and, as of the date hereof, has funded all liabilities other than fines directly levied against the Bank in connection with these matters which the Bank is required to pay. We believe the Bank has complied with all the requirements of the FDIC Consent Order and the DOJ Consent Order. This includes implementing new SCRA policies, procedures and training, updated billing statement disclosures, steps to ensure its third-party service providers are also fully compliant in these regards, and overseeing Navient’s restitution responsibilities. Notwithstanding the assumption by the CFPB of the role of the Bank’s primary consumer compliance regulator in January 2015, the FDIC will continue to monitor the Bank’s improved compliance management system, policies and procedures until it is satisfied the Bank has demonstrated its ability to sustain the enhancements and additions implemented in response to the FDIC Consent Order. Pursuant to the terms of the DOJ Consent Order, the Bank will remain subject to certain DOJ reporting and record-keeping requirements until September 29, 2018. In May 2014, the Bank received a Civil Investigative Demand (a “CID”) from 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 by entities now subsidiaries of Navient during a time period prior to the Spin-Off. Two state attorneys general provided the Bank identical CIDs and other state attorneys general have become involved in the inquiry over time. To the extent requested, the Bank has been cooperating fully with the CFPB and the attorneys general but is not in a position at this time to predict the duration or outcome of these matters. Given the timeframe covered by the CIDs and the focus on practices and procedures previously conducted by Navient and its servicing subsidiaries prior to the Spin-Off, as contemplated by the Separation and Distribution Agreement relating to, and the structure of, the Spin-Off, Navient is leading the response to these investigations, is legally responsible for, and has accepted responsibility to indemnify the Company against all costs, expenses, losses and remediation that may arise from these matters. Additionally, on January 18, 2017, the Illinois Attorney General filed a separate lawsuit against Navient - its subsidiaries Navient Solutions, Inc., Pioneer Credit Recovery, Inc., and General Revenue Corporation - and the Bank arising out of the aforementioned multi-state investigation of various lending, servicing, and collection practices. As contemplated by the Separation and Distribution Agreement relating to, and the structure of, the Spin-Off, Navient is legally responsible for, and has accepted responsibility to indemnify the Company against, all costs, expenses, losses and remediation that may arise from these matters. On January 18, 2017, the CFPB filed a complaint in federal court in Pennsylvania against Navient, along with its subsidiaries, Navient Solutions, Inc., and Pioneer Credit Recovery, Inc. The complaint alleges these Navient entities, among other things, engaged in deceptive practices with respect to its historic servicing and debt collection practices. Neither SLM, the Bank, nor any of their current subsidiaries are named in, or otherwise a party to, the lawsuit and are not alleged to have engaged in any wrongdoing. 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. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Reconciliations of the statutory U.S. federal income tax rates to our effective tax rate for continuing operations follow: Years Ended December 31, 2016 2015 2014 Statutory rate 35.0 % 35.0 % 35.0 % State tax, net of federal benefit 3.1 3.0 2.9 Impact of state rate change on net deferred tax liabilities, net of federal benefit (0.5 ) 0.5 4.4 State, valuation allowance adjustments on net operating losses 1.0 (0.2 ) (4.0 ) Unrecognized tax benefits, U.S. federal and state, net of federal benefit 1.6 (0.5 ) 4.8 Other, net (0.6 ) (0.3 ) (1.2 ) Effective tax rate 39.6 % 37.5 % 41.9 % The effective tax rate varies from the statutory U.S. federal rate of 35 percent primarily due to the impact of state taxes, net of federal benefit, for the years ended December 31, 2016 , 2015 and 2014 . Income tax expense consists of: December 31, 2016 2015 2014 Current provision: Federal $ 228,505 $ 215,950 $ 137,573 State 24,336 26,057 43,282 Total current provision 252,841 242,007 180,855 Deferred (benefit)/provision: Federal (89,518 ) (69,546 ) (40,370 ) State 786 (7,681 ) (518 ) Total deferred (benefit)/provision (88,732 ) (77,227 ) (40,888 ) Provision for income tax expense $ 164,109 $ 164,780 $ 139,967 The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following: December 31, 2016 2015 Deferred tax assets: Loan reserves $ 72,125 $ 45,082 Stock-based compensation plans 16,471 16,939 Deferred revenue 793 209 Operating loss and credit carryovers 8,371 16,106 Unrealized losses 5,364 9,949 Accrued expenses not currently deductible 13,605 10,696 Unrecorded tax benefits 5,702 15,251 Other 10,844 9,871 Total deferred tax assets 133,275 124,103 Deferred tax liabilities: Gains on repurchased debt 126,403 190,936 Fixed assets 6,831 6,237 Acquired intangible assets 6,288 6,724 Other 2,933 1,794 Total deferred tax liabilities 142,455 205,691 Net deferred tax liabilities $ (9,180 ) $ (81,588 ) Included in operating loss carryovers is a valuation allowance of $ 88.4 million and $ 83.7 million as of December 31, 2016 and 2015, respectively, against a portion of our state net operating loss carryovers that management believes is more likely than not to expire prior to being realized. As of December 31, 2016 , we have apportioned state net operating loss carryforwards of $12.9 million which begin to expire in 2029. Accounting for Uncertainty in Income Taxes The following table summarizes changes in unrecognized tax benefits: December 31, 2016 2015 2014 Unrecognized tax benefits at beginning of year $ 47,109 $ 59,405 $ 7,344 Increases resulting from tax positions taken during a prior period 110,894 3,456 45,184 Decreases resulting from tax positions taken during a prior period (3,285 ) (10,121 ) — Increases resulting from tax positions taken during the current period 817 3,447 7,713 Decreases related to settlements with taxing authorities (123 ) (7,481 ) (236 ) Reductions related to the lapse of statute of limitations (2,831 ) (1,597 ) (600 ) Unrecognized tax benefits at end of year $ 152,581 $ 47,109 $ 59,405 As of December 31, 2016 , the gross unrecognized tax benefits are $152.6 million. Included in the $152.6 million are $120.0 million of unrecognized tax benefits that, if recognized, would favorably impact the effective tax rate. As a part of the Spin-Off, the Company recorded a liability related to uncertain tax positions for which it is indemnified by Navient. In addition, we believe we are indemnified by Navient for uncertain tax positions relating to historical transactions among entities that are now subsidiaries of Navient that should have been recorded at the time of the Spin-Off. See Note 2, “Significant Accounting Policies — Correction Recorded in the Current Period” and “—Income Taxes,” for additional details. Tax related interest and penalty expense is reported as a component of income tax expense. As of December 31, 2016 , 2015 and 2014, the total amount of income tax-related accrued interest and penalties, net of related benefit, recognized in the consolidated balance sheets was $ 20.2 million, $ 7.0 million and $ 5.9 million, respectively. For the years ended December 31, 2016 , 2015 and 2014 , the total amount of income tax-related accrued interest, net of related tax benefit, recognized in the consolidated statements of income was $ 5.1 million, $ 1.4 million and $ 2.3 million, respectively. The Company or one of its subsidiaries files income tax returns at the U.S. federal level and in most U.S. states. U.S. federal income tax returns filed for years 2012 and prior are no longer subject to examination. Various combinations of subsidiaries, tax years, and jurisdictions remain open for review, subject to statute of limitations periods (typically 3 to 4 prior years). We do not expect the resolution of open audits to have a material impact on our unrecognized tax benefits. |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Dec. 31, 2016 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | Concentrations of Risk Our business is primarily focused on helping students and their families save, plan and pay for college. We primarily originate, service and/or collect loans made to students and their families to finance the cost of their education. We provide funding, delivery and servicing support for education loans in the United States through our Private Education Loan program. Because of this concentration in one industry, we are exposed to credit, legislative, operational, regulatory, and liquidity risks associated with the student loan industry. Concentration Risk in the Revenues Associated with Private Education Loans We compete in the Private Education Loan market with banks and other consumer lending institutions, some with strong consumer brand name recognition and greater financial resources. We compete based on our products, origination capability and customer service. To the extent our competitors compete aggressively or more effectively, we could lose market share to them or subject our existing loans to refinancing risk. Our product offerings may not prove to be profitable and may result in higher than expected losses. We are a leading provider of saving- and paying-for-college products and programs. This concentration gives us a competitive advantage in the marketplace. This concentration also creates risks in our business, particularly in light of our concentrations as a Private Education Loan lender. If population demographics result in a decrease in college-age individuals, if demand for higher education decreases, if the cost of attendance of higher education decreases, if public resistance to higher education costs strengthens, or if the demand for higher education loans decreases, our consumer lending business could be negatively affected. In addition, the federal government, through the DSLP, poses significant competition to our private credit loan products. If loan limits under the DSLP increase, DSLP loans could be more widely available to students and their families and DSLP loans could increase, resulting in further decreases in the size of the Private Education Loan market and demand for our Private Education Loan products. |
Parent Only Statements
Parent Only Statements | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Only Statements | Parent Only Statements The following parent company-only financial information should be read in conjunction with the other notes to the consolidated financial statements. The accounting policies for the parent company-only financial statements are the same as those used in the presentation of the consolidated financial statements other than the parent company-only financial statements account for the parent company’s investments in its subsidiaries under the equity method. Parent Only Condensed Balance Sheets December 31, 2016 2015 Assets Cash and cash equivalents $ 292,277 $ 282,036 Total investments in subsidiaries (primarily Sallie Mae Bank) 2,042,015 1,810,567 Tax indemnification receivable 259,532 186,076 Due from subsidiaries, net 31,834 21,396 Other assets 1,561 1,352 Total assets $ 2,627,219 $ 2,301,427 Liabilities and Equity Liabilities Income taxes payable, net $ 256,556 $ 189,215 Payable due to Navient 2,823 1,990 Other liabilities 20,782 13,899 Total liabilities 280,161 205,104 Equity Preferred stock, par value $0.20 per share, 20 million shares authorized: Series A: 3.3 million and 3.3 million shares issued, respectively, at stated value of $50 per share 165,000 165,000 Series B: 4 million and 4 million shares issued, respectively, at stated value of $100 per share 400,000 400,000 Common stock, par value $0.20 per share, 1.125 billion shares authorized: 436.6 million and 430.7 million shares issued, respectively 87,327 86,136 Additional paid-in capital 1,175,564 1,135,860 Accumulated other comprehensive loss (net of tax benefit of $5,364 and $9,949, respectively) (8,671 ) (16,059 ) Retained earnings 595,322 366,609 Total SLM Corporation stockholders’ equity before treasury stock 2,414,542 2,137,546 Less: Common stock held in treasury at cost: 7.7 million and 4.4 million shares, respectively (67,484 ) (41,223 ) Total equity 2,347,058 2,096,323 Total liabilities and equity $ 2,627,219 $ 2,301,427 Parent Only Condensed Statements of Income Years Ended December 31, 2016 2015 2014 Interest income $ 5,367 $ 6,414 $ 4,980 Interest expense — — — Net interest income 5,367 6,414 4,980 Other income (loss) 9,396 (239 ) 1,097 Operating expenses 32,553 36,141 36,967 Loss before income tax benefit and equity in net income from subsidiaries (17,790 ) (29,966 ) (30,890 ) Income tax benefit (2,839 ) (8,612 ) (13,196 ) Equity in net income from subsidiaries (primarily Sallie Mae Bank) 265,278 295,638 211,479 Net income 250,327 274,284 193,785 Preferred stock dividends 21,204 19,595 12,933 Net income attributable to common stock $ 229,123 $ 254,689 $ 180,852 Parent Only Condensed Statements of Cash Flows Years Ended December 31, 2016 2015 2014 Cash flows from operating activities: Net income $ 250,327 $ 274,284 $ 193,785 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Undistributed earnings of subsidiaries (265,278 ) (295,638 ) (211,479 ) Interest income on tax indemnification receivable (12,283 ) (5,398 ) (5,904 ) Decrease (increase) in investment in subsidiaries, net 63,222 (103,602 ) 278,365 Decrease in tax indemnification receivable 59,633 59,633 44,724 (Increase) decrease in due from subsidiaries, net (10,438 ) 11,012 (32,408 ) Increase in other assets (8,972 ) (14,366 ) (5,447 ) Decrease in income taxes payable, net (53,465 ) (54,907 ) (312,770 ) Increase (decrease) in payable due to entity that is a subsidiary of Navient 553 (6,774 ) 8,764 Increase in other liabilities 8,856 1,402 14,398 Total adjustments (218,172 ) (408,638 ) (221,757 ) Net cash provided by (used in) operating activities 32,155 (134,354 ) (27,972 ) Cash flows from investing activities: Net cash provided by (used in) investing activities — — — Cash flows from financing activities: Special cash contribution from Navient — — 472,718 Excess tax (expense) benefit from exercise of stock-based awards (710 ) 1,740 2,432 Preferred stock dividends paid (21,204 ) (19,595 ) (12,933 ) Net cash (used in) provided by financing activities (21,914 ) (17,855 ) 462,217 Net increase (decrease) in cash and cash equivalents 10,241 (152,209 ) 434,245 Cash and cash equivalents at beginning of year 282,036 434,245 — Cash and cash equivalents at end of year $ 292,277 $ 282,036 $ 434,245 |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information (unaudited) | Selected Quarterly Financial Information (unaudited) 2016 First Second Third Fourth (Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Net interest income $ 209,863 $ 212,766 $ 223,275 $ 245,434 Less: provisions for credit losses 32,602 41,793 41,784 43,226 Net interest income after provisions for credit losses 177,261 170,973 181,491 202,208 Gains on sales of loans, net — — — 230 (Losses) gains on derivative and hedging activities, net (354 ) 2,142 1,368 (4,114 ) Other income 21,028 13,683 21,598 13,235 Total operating expenses 92,885 94,777 99,709 98,036 Acquired intangible asset amortization expense 260 261 226 159 Income tax expense 38,875 34,555 47,557 43,122 Net income 65,915 57,205 56,965 70,242 Preferred stock dividends 5,139 5,243 5,316 5,506 Net income attributable to SLM Corporation common stock $ 60,776 $ 51,962 $ 51,649 $ 64,736 Basic earnings per common share attributable to SLM Corporation (1) $ 0.14 $ 0.12 $ 0.12 $ 0.15 Diluted earnings per common share attributable to SLM Corporation (1) $ 0.14 $ 0.12 $ 0.12 $ 0.15 _____ (1) Basic and diluted earnings per common share attributable to SLM Corporation are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted earnings per common share information may not equal annual basic and diluted earnings per common share. 2015 First Second Third Fourth (Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Net interest income $ 170,954 $ 168,257 $ 175,442 $ 187,846 Less: provisions for credit losses 16,618 15,558 27,497 30,382 Net interest income after provisions for credit losses 154,336 152,699 147,945 157,464 Gains on sales of loans, net — 76,874 — 58,484 Gains (losses) on derivative and hedging activities, net 3,292 1,602 (547 ) 953 Other income 8,007 10,912 10,455 12,561 Total operating expenses 81,187 89,799 92,864 85,245 Acquired intangible asset amortization expense 370 370 370 370 Restructuring and other reorganization expenses 4,657 744 910 (913 ) Income tax expense 31,722 60,158 17,985 54,915 Net income 47,699 91,016 45,724 89,845 Preferred stock dividends 4,823 4,870 4,913 4,989 Net income attributable to SLM Corporation common stock $ 42,876 $ 86,146 $ 40,811 $ 84,856 Basic earnings per common share attributable to SLM Corporation (1) $ 0.10 $ 0.20 $ 0.10 $ 0.20 Diluted earnings per common share attributable to SLM Corporation (1) $ 0.10 $ 0.20 $ 0.09 $ 0.20 _____ (1) Basic and diluted earnings per common share attributable to SLM Corporation are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted earnings per common share information may not equal annual basic and diluted earnings per common share. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events 2017 Securitization On February 8, 2017, we executed our $772 million SMB Private Education Loan Trust 2017-A term ABS transaction, which will be accounted for as a secured financing. We sold $772 million of notes to third parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $768 million of gross proceeds. This transaction will be reflected in our first quarter 2017 consolidated financial statements. Amendment to the ABCP Facility On February 22, 2017, we amended and extended the maturity of the ABCP Facility, discussed in Note 9, “Borrowings.” The amended ABCP Facility is a $750 million ABCP Facility, under which the full $750 million is available for us to draw. 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 0.90 percent on outstandings. The amended ABCP Facility extends the revolving period, during which we may borrow, repay and reborrow funds, until February 22, 2018. The scheduled amortization period, during which amounts outstanding under the ABCP Facility must be repaid, ends on February 22, 2019 (or earlier, if certain material adverse events occur). |
Significant Accounting Polici33
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The financial reporting and accounting policies of SLM Corporation conform to generally accepted accounting principles in the United States of America (“GAAP”). In conjunction with the Spin-Off, our consolidated financial statements are comprised of financial information relating to the Bank and Upromise. Also included in our financial statements, for periods before the Spin-Off, are certain general corporate overhead expenses allocated to the Company. The timing and steps necessary to complete the Spin-Off and comply with the Securities and Exchange Commission (“SEC”) reporting requirements, including the replacement of pre-Spin-Off SLM with our current publicly traded registrant, have resulted in our Annual Report on Form 10-K for the year ended December 31, 2013 filed with the SEC on February 19, 2014, and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2014, filed with the SEC on May 12, 2014, providing business results and financial information for the periods reported therein on the basis of the consolidated businesses of pre-Spin-Off SLM. While information contained in those prior reports may provide meaningful historical context for our business, the Quarterly Report on Form 10-Q for the quarter ended June 30, 2014 was our first periodic report made on the basis of the post-Spin-Off business. For periods before the Spin-Off, these financial statements are presented on a basis of accounting that reflects a change in reporting entity and have been adjusted for the effects of the Spin-Off. These carved-out financial statements and selected financial information represent only those operations, assets, liabilities and equity that form Sallie Mae on a stand-alone basis. Because the Spin-Off occurred on April 30, 2014, these financial statements include the carved-out financial results for the first four months of 2014. All prior period amounts represent comparably determined carved-out amounts. The year ended December 31, 2015 was the first full year where the financial results did not include the effect of carved-out amounts. |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Key accounting policies that include significant judgments and estimates include the valuation of allowance for loan losses, fair value measurements and derivative accounting. |
Consolidation | Consolidation The consolidated financial statements include the accounts of SLM Corporation and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash held in the Federal Reserve Bank of San Francisco (“FRB”) and commercial bank accounts, and other short-term liquid instruments with original maturities of three months or less. Fees associated with investing cash and cash equivalents are amortized into interest income using the effective interest rate method. |
Investments | Investments Investments consisted of mortgage-backed securities and Utah Housing Corporation Bonds in 2016 and only mortgage-backed securities in 2015. We record our investment purchases and sales on a trade date basis. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. Our investments are classified as available-for-sale and reported at fair value. Unrealized gains or losses on available-for-sale investments are recorded in equity and are reported as a component of other comprehensive income (loss), net of applicable income taxes, unless a decline in the investment’s value is considered to be other-than-temporary, in which case the loss is recorded directly to earnings. Management reviews all investments at least quarterly to determine whether any impairment is other-than-temporary. Impairment is evaluated by considering several factors, including the length of time and extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability to retain the investment to allow for an anticipated recovery in fair value. If, based on the analysis, it is determined that the impairment is other-than-temporary, the investment is written down to fair value and a loss is recognized through earnings. |
Loans Held for Investment | Loans Held for Investment Loans, consisting primarily of Private Education Loans and FFELP Loans, that we have the ability and intent to hold for the foreseeable future are classified as held for investment, and are carried at amortized cost. Amortized cost includes the unamortized premiums, discounts, and capitalized origination costs and fees, all of which are amortized to interest income as discussed under “Loan Interest Income.” Loans which are held for investment are reported net of an allowance for loan losses. |
Restricted Cash and Investments | Restricted Cash and Investments Restricted cash and investments primarily include amounts held in student loan securitization trusts and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the trust assets and when principal and interest is paid on trust liabilities. |
Allowance for Loan Losses | Allowance for Loan Losses We maintain an allowance for loan losses at an amount sufficient to absorb probable losses incurred in our portfolios, as well as regarding future loan commitments, at the reporting date based on a projection of estimated probable credit losses incurred in the portfolio. We consider a loan to be impaired when, based on current information, a loss has been incurred and it is probable that we will not receive all contractual amounts due. When making our assessment as to whether a loan is impaired, we also take into account more than insignificant delays in payment. We generally evaluate impaired loans on an aggregate basis by grouping similar loans. We analyze our portfolios to determine the effects that the various stages of delinquency and forbearance have on borrower default behavior and ultimate charge off. We estimate the allowance for loan losses for our loan portfolios using a roll rate analysis of delinquent and current accounts. A “roll rate analysis” is a technique used to estimate the likelihood that a loan receivable may progress through the various delinquency stages and ultimately charge off. We also take into account the current and future economic environment and certain other qualitative factors when calculating the allowance for loan losses. The evaluation of the allowance for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. Our default estimates are based on a loss emergence period of one year for Private Education Loans and two years for FFELP Loans. A loss emergence period represents the expected period between the first occurrence of an event likely to cause a loss on a loan and the date the loan is expected to be charged off, taking into consideration account management practices that affect the timing of a loss, such as the usage of forbearance. The loss emergence period underlying the allowance for loan losses is subject to a number of assumptions. If actual future performance in delinquency, charge-offs and recoveries is significantly different than estimated, or account management assumptions or practices were to change, this could materially affect the estimate of the allowance for loan losses, the timing of when losses are recognized, and the related provision for credit losses on our consolidated statements of income. |
Allowance for Personal Loans | Allowance for Personal Loans In December 2016, we began to opportunistically acquire newly originated personal loans (“Personal Loans”). We maintain an allowance for loan losses at an amount sufficient to absorb probable losses incurred in this portfolio at the reporting date based on a projection of estimated probable credit losses incurred in the portfolio. In determining the allowance for loan losses on our Personal Loan portfolio that are not TDRs, we estimate the principal amount of the loans that will default over the next eight months (eight months being the expected period between a loss event and default) and how much we expect to recover over the same eight-month period related to the defaulted amounts. The expected defaults less our expected recoveries adjusted for any qualitative factors equal the allowance related to this portfolio. At December 31, 2016, we held $ 12.8 million in Personal Loans and the amount of allowance related to this portfolio was immaterial. |
Allowance for Private Education Loan Losses | Allowance for Private Education Loan Losses We maintain an allowance for loan losses at an amount sufficient to absorb probable losses incurred in our portfolios at the reporting date based on a projection of estimated probable credit losses incurred in the portfolio. In determining the allowance for loan losses on our Private Education Loans that are not troubled debt restructurings (“TDRs”), we estimate the principal amount of loans that will default over the next year ( one year being the expected period between a loss event and default) and how much we expect to recover over the same one year period related to the defaulted amount. The expected defaults less our expected recoveries adjusted for any qualitative factors (discussed below) equal the allowance related to this portfolio. Our historical experience indicates that, on average, the time between the date that a customer experiences a default causing event (i.e., the loss trigger event) and the date that we charge off the unrecoverable portion of that loan is one year. In estimating both the non-TDR and TDR allowance amounts, we start with historical experience of customer delinquency and default behavior. We make judgments about which historical period to start with and then make further judgments about whether that historical experience is representative of future expectations and whether additional adjustments may be needed to those historical default rates. We may also take certain other qualitative factors into consideration when calculating the allowance for loan losses. These qualitative factors include, but are not limited to, changes in the economic environment, changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off and recovery practices not already included in the analysis, and the effect of other external factors such as legal and regulatory requirements on the level of estimated credit losses. Our non-TDR allowance for loan losses is estimated using an analysis of delinquent and current accounts. Our model is used to estimate the likelihood that a loan receivable may progress through the various delinquency stages and ultimately charge off. Once a charge-off forecast is estimated, a recovery assumption is layered on top. In estimating recoveries, we use both estimates of what we would receive from the sale of delinquent loans as well as historical borrower payment behavior to estimate the timing and amount of future recoveries on charged-off loans. In the fourth quarter of 2015, we stopped our previous practice of selling all defaulted loans to third-parties and began collecting on some defaulted loans in-house. It is our expectation that in the future we will continue to collect on defaulted loans in-house as well as sell defaulted loans to third-parties. Prior to this change in practice, we only used estimates of what we would receive from the sale of delinquent loans in estimating recoveries. For December, 31, 2016 and 2015, we used both an estimate of recovery rates from in-house collections as well as expectations of future sales of defaulted loans to estimate the timing and amount of future recoveries on charged-off loans. The roll rate analysis model is based upon actual experience using the 120 day charge-off default aversion strategies. Once the quantitative calculation is performed, we review the adequacy of the allowance for loan losses and determine if qualitative adjustments need to be considered. In connection with the Spin-Off, the agreement under which the Bank previously made sales of defaulted loans to an affiliate was amended so that the Bank now has the right to require Navient to purchase (at fair value) loans only where (a) the borrower has a lending relationship with both the Bank and Navient (“Split Loans”) and (b) the Split Loans either (1) are more than 90 days past due; (2) have been restructured; (3) have been granted a hardship forbearance or more than six months of administrative forbearance; or (4) have a borrower or cosigner who has filed for bankruptcy. At December 31, 2016, we held approximately $67 million of Split Loans. Pre-Spin-Off SLM charged off loans when they were 212 days delinquent. As such, default aversion strategies were focused on the final stages of delinquency, from 150 days to 212 days . In connection with the Spin-Off, we changed our charge-off policy for Private Education Loans to charging off loans when they reach 120 days delinquent. As a result of changing our corporate charge-off policy and greatly reducing the number of potentially delinquent loans we sell to Navient, our default aversion strategies now focus on loans 30 to 120 days delinquent. This change has the effect of accelerating the recognition of losses due to the shorter charge-off period ( 120 days ). In addition, at the time of the Spin-Off, we changed our loss emergence period from two years to one year to reflect the shorter charge-off policy and our revised servicing practices. These two changes resulted in recognizing a $14 million net reduction in our allowance for loan losses in second quarter 2014 because we are now only reserving for one year of losses as compared with two years under the prior policy, which more than offset the impact of the shorter charge-off period. Allowance for Personal Loans In December 2016, we began to opportunistically acquire newly originated personal loans (“Personal Loans”). We maintain an allowance for loan losses at an amount sufficient to absorb probable losses incurred in this portfolio at the reporting date based on a projection of estimated probable credit losses incurred in the portfolio. In determining the allowance for loan losses on our Personal Loan portfolio that are not TDRs, we estimate the principal amount of the loans that will default over the next eight months (eight months being the expected period between a loss event and default) and how much we expect to recover over the same eight-month period related to the defaulted amounts. The expected defaults less our expected recoveries adjusted for any qualitative factors equal the allowance related to this portfolio. At December 31, 2016, we held $ 12.8 million in Personal Loans and the amount of allowance related to this portfolio was immaterial. Troubled Debt Restructurings Separately, for our TDR portfolio, we estimate an allowance amount sufficient to cover life-of-loan expected losses through an impairment calculation based on the difference between the loan’s basis and the present value of expected future cash flows (which would include life-of-loan default and recovery assumptions) discounted at the loan’s original effective interest rate. Our TDR portfolio is comprised mostly of loans with interest rate reductions and loans with forbearance usage greater than three months . We modify the terms of loans for certain borrowers when we believe such modifications may increase the ability and willingness of a borrower to make payments and thus increase the ultimate overall amount collected on a loan. These modifications generally take the form of a forbearance, a temporary interest rate reduction or an extended repayment plan. In the first nine months after a loan enters full principal and interest repayment, the loan may be in forbearance for up to six months without it being classified as a TDR. Once the initial nine -month period described above is over, however, any loan that receives more than three months of forbearance in a 24-month period is classified as a TDR. Also, a loan becomes a TDR when it is modified to reduce the interest rate on the loan (regardless of when such modification occurs and/or whether such interest rate is temporary). The majority of our loans that are considered TDRs involve a temporary forbearance of payments and do not change the contractual interest rate of the loan. Once a loan qualifies for TDR status, it remains a TDR for allowance purposes for the remainder of its life. Approximately 26 percent and 23 percent of the loans granted forbearance as of December 31, 2016 and December 31, 2015, respectively, have been classified as TDRs due to their forbearance status. Key Credit Quality Indicators We determine the collectability of our Private Education Loan portfolio by evaluating certain risk characteristics. We consider credit score, existence of a cosigner, loan status and loan seasoning as the key credit quality indicators because they have the most significant effect on the determination of the adequacy of our allowance for loan losses. Credit scores are an indicator of the creditworthiness of a borrower and the higher the credit score the more likely it is the borrower will be able to make all of their contractual payments. Loan status affects the credit risk because a past due loan is more likely to result in a credit loss than a current loan. Additionally, loans in the deferred payment status have different credit risk profiles compared with those in current pay status. Loan seasoning affects credit risk because a loan with a history of making payments generally has a lower incidence of default than a loan with a history of making infrequent or no payments. The existence of a cosigner lowers the likelihood of default as well. We monitor and update these credit quality indicators in the analysis of the adequacy of our allowance for loan losses on a quarterly basis. Certain Private Education Loans do not require borrowers to begin repayment until six months after they have graduated or otherwise left school. Consequently, the loss estimates for these loans is generally low while the borrower is in school. At December 31, 2016 and 2015, 29 percent and 32 percent , respectively, of the principal balance in the Private Education Loan portfolio was related to borrowers who are in an in-school (fully deferred), grace, or deferment status and not required to make payments. As this population of borrowers leaves school, they will be required to begin payments on their loans, and the allowance for losses may change accordingly. Similar to the rules governing FFELP payment requirements, our collection policies allow for periods of nonpayment for borrowers requesting additional payment grace periods upon leaving school or experiencing temporary difficulty meeting payment obligations. This is referred to as forbearance status and is considered separately in the allowance for loan losses. The loss emergence period is in alignment with the typical collection cycle and takes into account these periods of nonpayment. As part of concluding on the adequacy of the allowance for loan losses, we review key allowance and loan metrics. The most relevant of these metrics considered are the allowance coverage of charge-offs ratio; the allowance as a percentage of total loans and of loans in repayment; and delinquency and forbearance percentages. We consider a loan to be delinquent 31 days after the last payment was contractually due. We use a model to estimate the amount of uncollectible accrued interest on Private Education Loans and reserve for that amount against current period interest income. |
Allowance for FFELP Loan Losses | Allowance for FFELP Loan Losses FFELP Loans are insured as to their principal and accrued interest in the event of default subject to a risk sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement on all qualifying default claims. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement. The allowance for FFELP Loan losses uses historical experience of customer default behavior and a two-year loss emergence period to estimate the credit losses incurred in the loan portfolio at the reporting date. We apply the default rate projections, net of applicable risk sharing, to each category for the current period to perform our quantitative calculation. Once the quantitative calculation is performed, we review the adequacy of the allowance for loan losses and determine if qualitative adjustments need to be considered. |
Deposits | Deposits Our retail deposit accounts are principally certificates of deposit (“CD”), money market deposit accounts (“MMDA”) and high yield savings (“HYS”) accounts. CDs are accounts that have a stipulated maturity and interest rate. Retail CDs may be withdrawn early, but a penalty is assessed. MMDA and HYS accounts are both interest and non-interest bearing accounts that have no maturity or expiration date. For retail MMDA and HYS accounts, the depositor may be required to give written notice of any intended withdrawal not less than seven days before the withdrawal is made, although this provision is not generally enforced. |
Upromise member accounts | Upromise member accounts Upromise member accounts represent amounts owed to Upromise rewards members for rebates they have earned from qualifying purchases from Upromise’s participating merchants. These amounts are held in trust for the benefit of the members until distributed in accordance with the Upromise member’s request and/or the terms of the Upromise service agreement. Upromise, which acts as the trustee for the trust, has deposited a majority of the cash with the Bank pursuant to a money market deposit account agreement between the Bank and Upromise as trustee of the trust. |
Fair Value Measurement | Fair Value Measurement We use estimates of fair value in applying various accounting standards for our financial statements. Fair value measurements are used in one of four ways: • In the consolidated balance sheet with changes in fair value recorded in the consolidated statement of income; • In the consolidated balance sheet with changes in fair value recorded in the accumulated other comprehensive income section of the consolidated statement of changes in equity; • In the consolidated balance sheet for instruments carried at lower of cost or fair value with impairment charges recorded in the consolidated statement of income; and • In the notes to the consolidated financial statements. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, our policy in estimating fair value is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates and credit spreads (including for our liabilities), relying first on observable data from active markets. Depending on current market conditions, additional adjustments to fair value may be based on factors such as liquidity, credit, and bid/offer spreads. Transaction costs are not included in the determination of fair value. When possible, we seek to validate the model’s output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. We categorize our fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. Classification is based on the lowest level of input that is significant to the fair value of the instrument. The three levels are as follows: • Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. The types of financial instruments included in level 1 are highly liquid instruments with quoted prices. • Level 2 — Inputs from active markets, other than quoted prices for identical instruments, are used to determine fair value. Significant inputs are directly observable from active markets for substantially the full term of the asset or liability being valued. • Level 3 — Pricing inputs significant to the valuation are unobservable. Inputs are developed based on the best information available. However, significant judgment is required by us in developing the inputs. |
Loan Interest Income | Loan Interest Income For all loans, including impaired loans, classified as “held for investment,” we recognize interest income as earned, adjusted for the amortization of deferred direct origination and acquisition costs. This adjustment is recognized based upon the expected yield of the loan over its life after giving effect to prepayments and extensions. We consider our constant prepayment rate (“CPR”) estimates a significant accounting assumption used to measure the expected prepayment activity in our education loan portfolio. The estimates are based on a number of factors such as historical prepayment rates for loans with similar loan characteristics, assumptions about portfolio composition and loan terms, and the prepayment curve’s tendency to follow a ramp pattern (i.e., the prepayment rate typically increases during the in-school and early repayment periods, then stabilizes). The CPR measures the expected prepayment activity over the life of the loan and is applied as a flat-rate input assumption when used in forecasting. Additionally, interest earned on education loans reflects potential non-payment adjustments in accordance with our uncollectible interest recognition policy as discussed further in “Allowance for Loan Losses” of this Note 2. Because of this, we do not place loans in nonaccrual status prior to charge off. We do not amortize any adjustments to the basis of education loans when they are classified as held-for-sale. Our CPR estimates include the effect of voluntary prepayments and consolidation (if the loans are consolidated to third parties), both of which shorten the lives of loans. CPR estimates also consider the utilization of deferment, forbearance, and extended repayment plans, which lengthen the lives of loans. We regularly evaluate the assumptions used to estimate the CPRs. In instances where there are changes to the assumptions, amortization of deferred direct origination and acquisition costs is adjusted on a cumulative basis to reflect the change since the origination or purchase of the loan. For the year ended December 31, 2016, our CPR for Private Education Loans was 5.00 percent , compared with a CPR of 5.12 percent for the year ended December 31, 2015. We also pay to the U.S. Department of Education (the “DOE”) an annual 105 basis point Consolidation Loan Rebate Fee on FFELP consolidation loans, which is netted against loan interest income. Additionally, interest earned on education loans reflects potential non-payment adjustments in accordance with our uncollectible interest recognition policy. We do not amortize any adjustments to the basis of education loans when they are classified as “held-for-sale.” We recognize certain fee income (primarily late fees) on education loans when earned according to the contractual provisions of the promissory notes, as well as our expectation of collectability. Fee income is recorded when earned in “other non-interest income” in the accompanying consolidated statements of income. |
Interest Expense | Interest Expense Interest expense is based upon contractual interest rates adjusted for the amortization of issuance costs. We incur interest expense on interest bearing deposits comprised of non-maturity savings deposits, brokered and retail CDs, brokered and retail MMDAs and secured financings. Interest expense is recognized when amounts are contractually due to deposit and debt holders and is adjusted for net payments/receipts related to interest rate swap agreements that qualify and are designated hedges of interest bearing liabilities. Interest expense also includes the amortization of deferred gains and losses on closed hedge transactions that qualified as hedges. Amortization of debt issuance costs, premiums, discounts and terminated hedge-basis adjustments are recognized using the effective interest rate method. We incur certain fees related to our Private Education Loan asset-backed commercial paper facility (the “ABCP Facility”), including an unused ABCP Facility fee, and also incur fees related to our term asset-backed securities (“ABS”). These fees are included in interest expense. |
Gains on Sale of Loans, Net | Gains on Sale of Loans, Net We participate and sell loans to third-parties and affiliates, including entities that were related parties prior to the Spin-Off. These sales may occur through whole loan sales or securitization transactions that qualify for sales treatment. If a transfer of loans qualifies as a sale, we derecognize the loan and recognize a gain or loss as the difference between the carry basis of the loan sold and liabilities retained and the compensation received. We recognize the results of a transfer of loans based upon the settlement date of the transaction. These loans were initially recorded as held for investment, and were transferred to held-for-sale immediately prior to sale or securitization. |
Other Income | Other Income Our Upromise subsidiary has a number of programs that encourage consumers to save for the cost of college education. We have established a consumer savings network, which is designed to promote college savings by consumers who are members of this program by encouraging them to purchase goods and services from the merchants that participate in the program. Participating merchants generally pay Upromise fees based on member purchase volume, either online or in stores, depending on the contractual arrangement with the merchant. We recognize revenue as marketing and administrative services are rendered, based upon contractually determined rates and member purchase volumes. Also included in other income are late fees on both Private Education Loans and FFELP Loans, which we recognize when the cash has been received, fees related to our credit card affinity program, income for servicing private student loans for third parties and changes to our tax indemnification receivable from Navient. |
Securitization Accounting | Securitization Accounting Our securitizations transactions use a two-step structure with a special purpose entity VIE that legally isolates the transferred assets from us in the event of bankruptcy or receivership. Transactions receiving sale treatment are also structured to ensure that the holders of the beneficial interests issued are not constrained from pledging or exchanging their interests, and that we do not maintain effective control over the transferred assets. If these criteria are not met, then the transaction is accounted for as an on-balance sheet secured borrowing. If a securitization qualifies as a sale, we then assess whether we are the primary beneficiary of the securitization trust and are required to consolidate such trust. We are considered the primary beneficiary if we have 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. There can be considerable judgment as it relates to determining the primary beneficiary of the VIEs. There are no “bright line” tests. Rather, the assessment of who has the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance and who has the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE can be very qualitative and judgmental in nature. If we are the primary beneficiary, then no gain or loss is recognized. We have determined that as the servicer of Sallie Mae securitization trusts, we meet the first primary beneficiary criterion because we have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. Irrespective of whether a securitization receives sale or on-balance sheet treatment, our continuing involvement with our securitization trusts is generally limited to: • Owning the equity certificates of certain trusts; • The servicing of the student loan assets within the securitization trusts, on both a pre- and post-default basis; • Our acting as administrator for the securitization transactions we sponsored; • Our responsibilities relative to representation and warranty violations; and • The option to exercise the clean-up call and purchase the student loans from the trust when the pool balance is 10 percent or less of the original pool balance. In 2015 and 2014, we executed both secured financing and securitized loan sale transactions. Based upon our relationships with these securitizations, we believe the consolidation assessment is straightforward. We consolidated our secured financing transactions because either we did not meet the accounting criterion for sales treatment or we determined we were the primary beneficiary of the VIE because we retained (a) the residual interest in the securitization and therefore had the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE as well as (b) the power to direct the activities of the VIE in our role as servicer. For those accounted for as securitized loan sales, we were not the primary beneficiary because we have no obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. The investors in our securitization trusts have no recourse to our other assets should there be a failure of the trust to pay when due. Generally, the only recourse the securitization trusts have to us is in the event we breach a seller representation or warranty or our duties as master servicer and servicer, in which event we are obligated to repurchase the related loans from the trust. We did not record a servicing asset or servicing liability related to our securitization transactions because we determined the servicing fees we receive are at market rate. |
Derivative Accounting | Derivative Accounting We account for our derivatives, consisting of interest rate swaps, at fair value on the consolidated balance sheets as either an asset or liability. Derivative positions are recorded as net positions by counterparty based on master netting arrangements (see Note 11, “Derivative Financial Instruments”) exclusive of accrued interest and cash collateral held or pledged. We determine the fair value for our derivative contracts primarily using pricing models that consider current market conditions and the contractual terms of the derivative contracts. These factors include interest rates, time value, forward interest rate curves, and volatility factors. Inputs are generally from active financial markets. The majority of our derivatives qualify as effective hedges. For these derivatives, the relationship between the hedging instrument and the hedged items (including the hedged risk and method for assessing effectiveness), as well as the risk management objective and strategy for undertaking various hedge transactions at the inception of the hedging relationship, is documented. Each derivative is designated to a specific (or pool of) liability(ies) on the consolidated balance sheets, and is designated as either a “fair value” hedge or a “cash flow” hedge. Fair value hedges are designed to hedge our exposure to changes in fair value of a fixed-rate liability. For effective fair value hedges, both the hedge and the hedged item (for the risk being hedged) are recorded at fair value with any difference reflecting ineffectiveness which is recorded immediately in the consolidated statements of income. Cash flow hedges are designed to hedge our exposure to variability in cash flows related to variable-rate deposits. The assessment of the hedge’s effectiveness is performed at inception and on an ongoing basis, generally using regression testing. For hedges of a pool of liabilities, tests are performed to demonstrate the similarity of individual instruments of the pool. When it is determined that a derivative is not currently an effective hedge, ineffectiveness is recognized for the full change in fair value of the derivative with no offsetting amount from the hedged item since the last time it was effective. If it is also determined the hedge will not be effective in the future, we discontinue the hedge accounting prospectively and begin amortization of any basis adjustments that exist related to the hedged item. |
Stock-Based Compensation | Stock-Based Compensation We recognize stock-based compensation cost in our consolidated statements of income using the fair value method. Under this method, we determine the fair value of the stock-based compensation at the time of the grant and recognize the resulting compensation expense over the vesting period of the stock-based grant. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability approach, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and tax basis of our assets and liabilities. To the extent tax laws change, deferred tax assets and liabilities are adjusted in the period that the tax change is enacted. “Income tax expense (benefit)” includes (i) deferred tax expense (benefit), which represents the net change in the deferred tax asset or liability balance during the year when applicable, and (ii) current tax expense (benefit), which represents the amount of tax currently payable to or receivable from a tax authority plus amounts accrued for unrecognized tax benefits. Income tax expense (benefit) excludes the tax effects related to adjustments recorded in equity. An uncertain tax position is recognized only if it is more likely than not to be sustained upon examination based on the technical merits of the position. The amount of tax benefit recognized in the consolidated financial statements is the largest amount of benefit that is more than fifty percent likely of being sustained upon ultimate settlement of the uncertain tax position. We recognize interest and penalties related to unrecognized tax benefits in income tax expense (benefit). |
Reclassifications | Reclassifications Certain reclassifications have been made to the balances as of and for the years ended December 31, 2015 and 2014, to be consistent with classifications adopted for 2016, which had no effect on net income, total assets or total liabilities. |
Recently Issued but Not Yet Adopted Accounting Pronouncements | Recently Issued but Not Yet Adopted Accounting Pronouncements On May 28, 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers,” which requires an entity to recognize the amount of revenue to which it expects to be entitled for the transfer of promised goods or services to customers. The ASU will replace most existing revenue recognition guidance when it becomes effective. The new standard is effective on January 1, 2018. Early application is not permitted. The adoption of this guidance by the Company is not expected to have a material impact on its consolidated financial statements. On January 5, 2016, the FASB issued ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” which changes the income statement impact of equity investments, and the recognition of changes in fair value of financial liabilities when the fair value option is elected. The new standard is effective on January 1, 2018. The adoption of this guidance is not expected to have a material impact on our consolidated financial statements. On February 25, 2016, the FASB issued 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 expect the standard to result in immaterial volatility in earnings caused by the change in the treatment of the tax benefits or deficiencies related to share-based payments at settlement (or expiration) through “income tax expense” in our consolidated statements of income. On June 16, 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which requires measurement and recognition of expected credit losses for financial assets held. Under this standard, we will be required to hold an allowance equal to the expected life-of-loan losses on our loan portfolio. The standard is effective for fiscal periods beginning after December 15, 2019. While we are currently evaluating the impact of our pending adoption of this standard on our consolidated financial statements, we expect the adoption to have a material impact on our consolidated financial statements and capital ratios. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Value of Securities Available-for-sale | The amortized cost and fair value of securities available for sale are as follows: December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Mortgage-backed securities $ 196,406 $ 929 $ (3,042 ) $ 194,293 Utah Housing Corporation bonds 15,000 — (690 ) 14,310 Total $ 211,406 $ 929 $ (3,732 ) $ 208,603 December 31, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Mortgage-backed securities $ 196,402 $ 1,370 $ (2,381 ) $ 195,391 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | The following table summarizes the amount of gross unrealized losses for our mortgage-backed securities and Utah housing bonds and the estimated fair value by length of time the securities have been in an unrealized loss position: Less than 12 months 12 months or more Total Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value As of December 31, 2016: Mortgage-backed securities $ (2,423 ) $ 129,549 $ (619 ) $ 10,885 $ (3,042 ) $ 140,434 Utah Housing Corporation bonds (690 ) 14,310 — — (690 ) 14,310 Total $ (3,113 ) $ 143,859 $ (619 ) $ 10,885 $ (3,732 ) $ 154,744 As of December 31, 2015: Mortgage-backed securities $ (827 ) $ 73,802 $ (1,554 ) $ 39,271 $ (2,381 ) $ 113,073 |
Amortized Cost and Fair Value of Securities by Contractual Maturities | As of December 31, 2016 , the amortized cost and fair value of securities, by contractual maturities, are summarized below. Contractual maturities versus actual maturities may differ due to the effect of prepayments. Year of Maturity Amortized Cost Estimated Fair Value 2038 $ 278 $ 303 2039 5,405 5,758 2042 15,344 14,621 2043 46,996 47,045 2044 37,970 37,876 2045 50,814 50,084 2046 39,599 38,606 2047 15,000 14,310 Total $ 211,406 $ 208,603 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Loans held for investment | Loans held for investment are summarized as follows: December 31, 2016 2015 Private Education Loans $ 14,251,675 $ 10,596,437 Deferred origination costs 44,206 27,884 Allowance for loan losses (182,472 ) (108,816 ) Total Private Education Loans, net 14,113,409 10,515,505 FFELP Loans 1,010,908 1,115,663 Unamortized acquisition costs, net 2,941 3,114 Allowance for loan losses (2,171 ) (3,691 ) Total FFELP Loans, net 1,011,678 1,115,086 Personal Loans 12,893 — Allowance for loan losses (58 ) — Total Personal Loans, net 12,835 — Loans held for investment, net $ 15,137,922 $ 11,630,591 The estimated weighted average life of education loans in our portfolio was approximately 6.0 years and 6.2 years at December 31, 2016 and 2015 , respectively. The average balance and the respective weighted average interest rates for our education loan portfolio are summarized as follows: Years Ended December 31, 2016 2015 2014 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 12,747,756 8.02 % $ 9,819,053 7.93 % $ 7,563,356 8.16 % FFELP Loans 1,063,325 3.53 1,179,723 3.26 1,353,497 3.24 Total education loan portfolio $ 13,811,081 $ 10,998,776 $ 8,916,853 |
Loans held for investment by Region | At December 31, 2016 , 40.3 percent of total education loans were concentrated in the following states: 2016 New York 10.3 % California 9.4 Pennsylvania 8.4 New Jersey 6.9 Illinois 5.3 40.3 % At December 31, 2015 , 39.8 percent of total education loans were concentrated in the following states: 2015 New York 10.1 % California 9.6 Pennsylvania 8.1 New Jersey 6.7 Illinois 5.3 39.8 % |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Receivables [Abstract] | |
Allowance for Credit Losses and Recorded Investments in Loans | Allowance for Loan Losses Metrics Allowance for Loan Losses Year Ended December 31, 2016 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 3,691 $ 108,816 $ 112,507 Total provision (172 ) 159,511 159,339 Net charge-offs: Charge-offs (1,348 ) (90,203 ) (91,551 ) Recoveries — 10,382 10,382 Net charge-offs (1,348 ) (79,821 ) (81,169 ) Loan sales (1) — (6,034 ) (6,034 ) Ending Balance $ 2,171 $ 182,472 $ 184,643 Allowance: Ending balance: individually evaluated for impairment $ — $ 86,930 $ 86,930 Ending balance: collectively evaluated for impairment $ 2,171 $ 95,542 $ 97,713 Loans: Ending balance: individually evaluated for impairment $ — $ 612,606 $ 612,606 Ending balance: collectively evaluated for impairment $ 1,010,908 $ 13,639,069 $ 14,649,977 Net charge-offs as a percentage of average loans in repayment (2) 0.17 % 0.96 % Allowance as a percentage of the ending total loan balance 0.21 % 1.28 % Allowance as a percentage of the ending loans in repayment (2) 0.28 % 1.88 % Allowance coverage of net charge-offs 1.61 2.29 Ending total loans, gross $ 1,010,908 $ 14,251,675 Average loans in repayment (2) $ 793,203 $ 8,283,036 Ending loans in repayment (2) $ 786,332 $ 9,709,758 ____________ (1) Represents fair value adjustments on loans sold. (2) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Allowance for Loan Losses Year Ended December 31, 2015 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 5,268 $ 78,574 $ 83,842 Total provision 1,005 87,344 88,349 Net charge-offs: Charge-offs (2,582 ) (55,357 ) (57,939 ) Recoveries — 5,820 5,820 Net charge-offs (2,582 ) (49,537 ) (52,119 ) Loan sales (1) — (7,565 ) (7,565 ) Ending Balance $ 3,691 $ 108,816 $ 112,507 Allowance: Ending balance: individually evaluated for impairment $ — $ 43,480 $ 43,480 Ending balance: collectively evaluated for impairment $ 3,691 $ 65,336 $ 69,027 Loans: Ending balance: individually evaluated for impairment $ — $ 265,831 $ 265,831 Ending balance: collectively evaluated for impairment $ 1,115,663 $ 10,330,606 $ 11,446,269 Net charge-offs as a percentage of average loans in repayment (2) 0.30 % 0.82 % Allowance as a percentage of the ending total loan balance 0.33 % 1.03 % Allowance as a percentage of the ending loans in repayment (2) 0.45 % 1.57 % Allowance coverage of net charge-offs 1.43 2.20 Ending total loans, gross $ 1,115,663 $ 10,596,437 Average loans in repayment (2) $ 857,359 $ 6,031,741 Ending loans in repayment (2) $ 813,815 $ 6,927,266 ____________ (1) Represents fair value adjustments on loans sold. (2) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Allowance for Loan Losses Year Ended December 31, 2014 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 6,318 $ 61,763 $ 68,081 Total provision 1,946 83,583 85,529 Net charge-offs: Charge-offs (1) (2,996 ) (14,442 ) (17,438 ) Recoveries — 1,155 1,155 Net charge-offs (2,996 ) (13,287 ) (16,283 ) Loan sales (2) — (53,485 ) (53,485 ) Ending Balance $ 5,268 $ 78,574 $ 83,842 Allowance: Ending balance: individually evaluated for impairment $ — $ 9,815 $ 9,815 Ending balance: collectively evaluated for impairment $ 5,268 $ 68,759 $ 74,027 Loans: Ending balance: individually evaluated for impairment $ — $ 59,402 $ 59,402 Ending balance: collectively evaluated for impairment $ 1,264,807 $ 8,251,974 $ 9,516,781 Net charge-offs as a percentage of average loans in repayment (3) 0.31 % 0.30 % Allowance as a percentage of the ending total loan balance 0.42 % 0.95 % Allowance as a percentage of the ending loans in repayment (3) 0.57 % 1.53 % Allowance coverage of net charge-offs 1.76 5.91 Ending total loans, gross $ 1,264,807 $ 8,311,376 Average loans in repayment (3) $ 972,390 $ 4,495,709 Ending loans in repayment (3) $ 926,891 $ 5,149,215 ____________ (1) Prior to the Spin-Off, we sold all loans greater than 90 days delinquent to an entity that is now a subsidiary of Navient Corporation, prior to being charged off. Consequently, many of the pre-Spin-Off, historical credit indicators and period-over-period trends are not comparable and may not be indicative of future performance. (2) Represents fair value adjustments on loans sold. (3) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. |
Recorded Investment, Unpaid Principal Balance and Related Allowance for TDR Loans | At December 31, 2016 and 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 December 31, 2016 TDR Loans $ 620,991 $ 612,606 $ 86,930 December 31, 2015 TDR Loans $ 269,628 $ 265,831 $ 43,480 |
Average recorded investment and interest income recognized | The following table provides the average recorded investment and interest income recognized for our TDR loans. Years Ended December 31, 2016 2015 2014 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 422,527 $ 30,700 $ 174,087 $ 14,081 $ 23,290 $ 1,105 |
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. Years Ended December 31, 2016 2015 2014 Modified Loans (1) Charge-offs Payment-Default Modified Loans (1) Charge-offs Payment-Default Modified Loans (1) Charge-offs Payment-Default TDR Loans $ 398,324 $ 24,628 $ 64,811 $ 244,890 $ 10,877 $ 51,602 $ 59,402 $ 948 $ 325 _______ (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. December 31, 2016 December 31, 2015 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance Cosigners: With cosigner $ 12,816,512 90 % $ 9,515,136 90 % Without cosigner 1,435,163 10 1,081,301 10 Total $ 14,251,675 100 % $ 10,596,437 100 % FICO at Origination: Less than 670 $ 920,132 6 % $ 700,779 7 % 670-699 2,092,722 15 1,554,959 15 700-749 4,639,958 33 3,403,823 32 Greater than or equal to 750 6,598,863 46 4,936,876 46 Total $ 14,251,675 100 % $ 10,596,437 100 % Seasoning (2) : 1-12 payments $ 3,737,110 26 % $ 3,059,901 29 % 13-24 payments 2,841,107 20 2,096,412 20 25-36 payments 1,839,764 13 1,084,818 10 37-48 payments 917,633 7 513,125 5 More than 48 payments 726,106 5 414,217 4 Not yet in repayment 4,189,955 29 3,427,964 32 Total $ 14,251,675 100 % $ 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. |
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 on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Private Education Loans December 31, 2016 2015 2014 Balance % Balance % Balance % Loans in-school/grace/deferment (1) $ 4,189,955 $ 3,427,964 $ 3,027,143 Loans in forbearance (2) 351,962 241,207 135,018 Loans in repayment and percentage of each status: Loans current 9,509,394 97.9 % 6,773,095 97.8 % 5,045,600 98.0 % Loans delinquent 31-60 days (3) 124,773 1.3 91,129 1.3 63,873 1.2 Loans delinquent 61-90 days (3) 51,423 0.5 42,048 0.6 29,041 0.6 Loans delinquent greater than 90 days (3) 24,168 0.3 20,994 0.3 10,701 0.2 Total Private Education Loans in repayment 9,709,758 100.0 % 6,927,266 100.0 % 5,149,215 100.0 % Total Private Education Loans, gross 14,251,675 10,596,437 8,311,376 Private Education Loans deferred origination costs 44,206 27,884 13,845 Total Private Education Loans 14,295,881 10,624,321 8,325,221 Private Education Loans allowance for losses (182,472 ) (108,816 ) (78,574 ) Private Education Loans, net $ 14,113,409 $ 10,515,505 $ 8,246,647 Percentage of Private Education Loans in repayment 68.1 % 65.4 % 62.0 % Delinquencies as a percentage of Private Education Loans in repayment 2.1 % 2.2 % 2.0 % Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance 3.5 % 3.4 % 2.6 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. The following table provides information regarding the loan status and aging of TDR loans. December 31, December 31, 2016 2015 Balance % Balance % TDR loans in in-school/grace/deferment (1) $ 24,185 $ 6,869 TDR loans in forbearance (2) 71,851 43,756 TDR loans in repayment (3) and percentage of each status: Loans current 462,187 89.5 % 185,936 86.4 % Loans delinquent 31-60 days (4) 28,452 5.5 14,948 6.9 Loans delinquent 61-90 days (4) 17,326 3.4 9,239 4.3 Loans delinquent greater than 90 days (4) 8,605 1.6 5,083 2.4 Total TDR loans in repayment 516,570 100.0 % 215,206 100.0 % Total TDR loans, gross $ 612,606 $ 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 or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. (4) The period of delinquency is based on the number of days scheduled payments are contractually past due. |
Accrued Interest Receivable | The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans greater than 90 days past due as compared to our allowance for uncollectible interest. The allowance for uncollectible interest exceeds the amount of accrued interest on our 90 days past due portfolio for all periods presented. Private Education Loan Accrued Interest Receivable Total Interest Receivable Greater Than 90 Days Past Due Allowance for Uncollectible Interest December 31, 2016 $ 739,847 $ 845 $ 2,898 December 31, 2015 $ 542,919 $ 791 $ 3,332 |
Premises and Equipment, Net (Ta
Premises and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following is a summary of our premises and equipment. December 31, 2016 2015 Land and land improvements $ 12,574 $ 12,574 Buildings and leasehold improvements 60,919 56,446 Furniture, fixtures and equipment 15,026 12,275 Software 47,688 39,530 Premises and equipment, gross 136,207 120,825 Accumulated depreciation (49,144 ) (39,552 ) Premises and equipment, net $ 87,063 $ 81,273 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Schedule of Deposits | The following table summarizes total deposits at December 31, 2016 and 2015 . December 31, 2016 2015 Deposits - interest bearing $ 13,434,990 $ 11,487,006 Deposits - non-interest bearing 677 701 Total deposits $ 13,435,667 $ 11,487,707 |
Interest Bearing Deposits | Interest bearing deposits at December 31, 2016 and 2015 are summarized as follows: December 31, 2016 December 31, 2015 Amount Year-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 7,129,404 1.22 % $ 4,886,299 1.19 % Savings 834,521 0.84 669,254 0.82 Certificates of deposit 5,471,065 1.41 5,931,453 0.98 Deposits - interest bearing $ 13,434,990 $ 11,487,006 ___ (1) Includes the effect of interest rate swaps in effective hedge relationships. |
Schedule of Maturities of Time Deposits | Certificates of deposit remaining maturities are summarized as follows: December 31, 2016 2015 One year or less $ 2,565,246 $ 2,667,980 After one year to two years 1,364,812 1,210,429 After two years to three years 936,125 1,053,442 After three years to four years 225,245 630,851 After four years to five years 379,637 203,704 After five years — 165,047 Total $ 5,471,065 $ 5,931,453 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Debt Disclosure [Abstract] | |
Secured borrowings | The following table summarizes our secured borrowings at December 31, 2016 and 2015. December 31, 2016 December 31, 2015 Short-Term Long-Term Total Short-Term Long-Term Total Secured borrowings: Private Education Loan term securitizations $ — $ 2,167,979 $ 2,167,979 $ — $ 579,101 $ 579,101 ABCP Facility — — — 500,175 — 500,175 Total $ — $ 2,167,979 $ 2,167,979 $ 500,175 $ 579,101 $ 1,079,276 |
Short-term borrowings | The following table summarizes the outstanding short-term borrowings, the weighted average interest rates at the end of the period and the related average balance and weighted average interest rates during the period. 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. Rates reflect stated interest of borrowings and related discounts and premiums. December 31, 2016 Year Ended December 31, 2016 Ending Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Short-term borrowings: ABCP Facility $ — — % $ 229,719 2.61 % Maximum outstanding at any month end $ 526,500 December 31, 2015 Year Ended December 31, 2015 Ending Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Short-term borrowings: ABCP Facility $ 500,175 0.84 % $ 135,064 3.10 % Maximum outstanding at any month end $ 710,005 |
Long-term borrowings | The following table summarizes the outstanding long-term borrowings, the weighted average interest rates at the end of the period and the related average balance during the period. Rates reflect stated interest of borrowings and related discounts and premiums. The long-term borrowings amortize over time and mature serially from 2023 to 2040. December 31, 2016 Year Ended December 31, 2015 Year Ended December 31, 2015 Ending Balance Weighted Average Average Balance Ending Balance Weighted Average Interest Rate Average Balance Floating rate borrowings $ 1,175,819 1.71 % $ 687,580 $ 337,098 1.38 % $ 151,373 Fixed rate borrowings 992,160 2.68 548,465 242,003 3.11 102,386 Total long-term borrowings $ 2,167,979 2.15 % $ 1,236,045 $ 579,101 2.10 % $ 253,759 |
Secured financing | Secured Financings Issue Date Issued Total Issued Weighted Average Cost of Funds (1) Weighted Average Life (in years) Private Education: 2015-B July 2015 $ 630,800 1 month LIBOR plus 1.53% 4.82 Total notes issued in 2015 $ 630,800 Total loans and accrued interest amount securitized at inception in 2015 $ 745,580 2016-A May 2016 $ 501,000 1 month LIBOR plus 1.38% 4.01 2016-B July 2016 607,000 1 month LIBOR plus 1.36% 4.01 2016-C October 2016 674,000 1 month LIBOR plus 1.15% 4.27 Total notes issued in 2016 $ 1,782,000 Total loans and accrued interest amount securitized at inception in 2016 $ 2,107,042 ____________ (1) Represents LIBOR equivalent cost of funds for floating and fixed rate bonds, excluding issuance costs. |
Schedule of variable interest entities | December 31, 2016 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets (1) Total Secured borrowings: Private Education Loan term securitization $ — $ 2,167,979 $ 2,167,979 $ 2,562,156 $ 44,617 $ 160,783 $ 2,767,556 ABCP Facility — — — — — — — Total $ — $ 2,167,979 $ 2,167,979 $ 2,562,156 $ 44,617 $ 160,783 $ 2,767,556 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 represent accrued interest receivable. |
Derivative Financial Instrume40
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 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 December 31, 2016 and 2015 , and their impact on earnings and other comprehensive income for the years ended December 31, 2016 , 2015 and 2014 . Impact of Derivatives on the Consolidated Balance Sheet Cash Flow Hedges Fair Value Hedges Trading Total December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2016 2015 2016 2015 2016 2015 2016 2015 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ — $ — $ 7,808 $ 15,231 $ — $ 83 $ 7,808 $ 15,314 Derivative Liabilities: (2) Interest rate swaps Interest rate (14,463 ) (27,512 ) (10,398 ) (2,339 ) (1,076 ) (646 ) (25,937 ) (30,497 ) Total net derivatives $ (14,463 ) $ (27,512 ) $ (2,590 ) $ 12,892 $ (1,076 ) $ (563 ) $ (18,129 ) $ (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 December 31, December 31, December 31, December 31, 2016 2015 2016 2015 Gross position (1) $ 7,808 $ 15,314 $ (25,937 ) $ (30,497 ) Impact of master netting agreement (7,808 ) (9,278 ) 7,808 9,278 Derivative values with impact of master netting agreements (as carried on balance sheet) — 6,036 (18,129 ) (21,219 ) Cash collateral (held) pledged — (1,070 ) 48,134 54,845 Net position $ — $ 4,966 $ 30,005 $ 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 December 31, December 31, December 31, December 31, 2016 2015 2016 2015 Gross position (1) $ 7,808 $ 15,314 $ (25,937 ) $ (30,497 ) Impact of master netting agreement (7,808 ) (9,278 ) 7,808 9,278 Derivative values with impact of master netting agreements (as carried on balance sheet) — 6,036 (18,129 ) (21,219 ) Cash collateral (held) pledged — (1,070 ) 48,134 54,845 Net position $ — $ 4,966 $ 30,005 $ 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 December 31, December 31, December 31, December 31, 2016 2015 2016 2015 Gross position (1) $ 7,808 $ 15,314 $ (25,937 ) $ (30,497 ) Impact of master netting agreement (7,808 ) (9,278 ) 7,808 9,278 Derivative values with impact of master netting agreements (as carried on balance sheet) — 6,036 (18,129 ) (21,219 ) Cash collateral (held) pledged — (1,070 ) 48,134 54,845 Net position $ — $ 4,966 $ 30,005 $ 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 December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2016 2015 2016 2015 2016 2015 2016 2015 Notional Values Interest rate swaps $ 1,054,688 $ 1,109,933 $ 3,628,062 $ 3,080,167 $ 494,638 $ 1,305,757 $ 5,177,388 $ 5,495,857 |
Schedule of Derivatives Instruments Statements of Financial Performance and Financial Position, Location | Impact of Derivatives on the Consolidated Statements of Income Years Ended December 31, 2016 2015 2014 Fair Value Hedges Interest rate swaps: Hedge ineffectiveness (losses) gains recorded in earnings (1) $ (1,035 ) $ 2,695 $ 1,718 Realized gains recorded in interest expense 27,810 29,940 20,958 Total $ 26,775 $ 32,635 $ 22,676 Cash Flow Hedges Interest rate swaps: Hedge ineffectiveness losses recorded in earnings (1) $ (1,579 ) $ (1,427 ) $ (520 ) Realized losses recorded in interest expense (17,665 ) (21,475 ) (9,070 ) Total $ (19,244 ) $ (22,902 ) $ (9,590 ) Trading Interest rate swaps: Interest reclassification $ 2,170 $ 3,451 $ (2,250 ) Change in fair value of future interest payments recorded in earnings (513 ) 581 (2,944 ) Total (1) 1,657 4,032 (5,194 ) Total $ 9,188 $ 13,765 $ 7,892 (1) Amounts included in “(losses) gains on derivatives and hedging activities, net.” |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | Impact of Derivatives on the Statements of Changes in Stockholders’ Equity Years Ended December 31, 2016 2015 2014 Amount of loss recognized in other comprehensive income (loss) $ (3,901 ) $ (26,699 ) $ (28,842 ) Amount of loss reclassified in interest expense (1) (17,665 ) (21,475 ) (9,070 ) Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit $ 13,764 $ (5,224 ) $ (19,772 ) (1) Amounts included in “realized losses recorded in interest expense” in the “Impact of Derivatives on the Consolidated Statements of Income” table. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity [Abstract] | |
Class of Treasury Stock | The following table summarizes our common share repurchases and issuances associated with these programs. Years Ended December 31, (Shares and per share amounts in actuals) 2016 2015 2014 Shares repurchased related to employee stock-based compensation plans (1) 3,354,730 3,008,913 1,365,277 Average purchase price per share $ 7.83 $ 9.65 $ 8.93 Common shares issued (2) 5,955,045 5,873,309 2,013,805 (1) Comprises shares withheld from stock option exercises and vesting of restricted stock for employees’ tax withholding obligations and shares tendered by employees to satisfy option exercise costs. (2) Common shares issued under our various compensation and benefit plans. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 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. Years Ended December 31, (In thousands, except per share data) 2016 2015 2014 Numerator: Net income attributable to SLM Corporation $ 250,327 $ 274,284 $ 194,219 Preferred stock dividends 21,204 19,595 12,933 Net income attributable to SLM Corporation common stock $ 229,123 $ 254,689 $ 181,286 Denominator: Weighted average shares used to compute basic EPS 427,876 425,574 423,970 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units and Employee Stock Purchase Plan (“ESPP”) (1)(2) 5,043 6,660 8,299 Weighted average shares used to compute diluted EPS 432,919 432,234 432,269 Basic earnings per common share attributable to SLM Corporation $ 0.54 $ 0.60 $ 0.43 Diluted earnings per common share attributable to SLM Corporation $ 0.53 $ 0.59 $ 0.42 __________ (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method. (2) For the years ended December 31, 2016 , 2015 and 2014 , securities covering approximately 1 million, 2 million and 3 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. |
Stock-Based Compensation Plan43
Stock-Based Compensation Plans and Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Black-Scholes Model Assumptions for Calculating Stock Option Fair Values | The fair values of the options granted in the year ended December 31, 2014 were estimated as of the grant date using a Black-Scholes option pricing model with the following weighted average assumptions: Year Ended December 31, (Dollars per share) 2014 Risk-free interest rate 0.76 % Expected volatility 26 % Expected dividend rate 2.48 % Expected life of the option 2.9 years Weighted average fair value of options granted $ 3.48 |
Stock Option Activity | The following table summarizes stock option activity for the year ended December 31, 2016 . (Dollars in thousands, except per share data) Number of Options Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (1) Outstanding at December 31, 2015 11,910,976 $ 10.08 Granted — — Exercised (2)(3) (3,000,047 ) 5.74 Canceled (1,315,870 ) 18.56 Outstanding at December 31, 2016 (4) 7,595,059 $ 10.43 1.8 $ 39,357 Exercisable at December 31, 2016 7,589,682 $ 6.13 1.8 $ 39,344 (1) The aggregate intrinsic value represents the total intrinsic value (the aggregate difference between our closing stock price on December 31, 2016 and the exercise price of in-the-money options) that would have been received by the option holders if all in-the-money options had been exercised on December 31, 2016. (2) The total intrinsic value of options exercised was $9.3 million, $13.7 million, and $11.4 million for the years ended December 31, 2016 , 2015 and 2014 , respectively. (3) Cash of $0.2 million was received from option exercises for the year ended December 31, 2016. The actual tax benefit realized for the tax deductions from option exercises totaled $3.4 million for the year ended December 31, 2016. (4) For net-settled options, gross number is reflected. |
Restricted Stock Activity | The following table summarizes restricted stock activity for the year ended December 31, 2016 . (Amounts in thousands, except per share data) Number of Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2015 86,174 $ 8.94 Granted 120,879 6.37 Vested (1) (86,174 ) 8.94 Canceled — — Non-vested at December 31, 2016 (2) 120,879 $ 6.37 (1) The total fair value of shares that vested during the years ended December 31, 2016 , 2015 and 2014 was $0.8 million, $0.5 million and $0.4 million, respectively. (2) As of December 31, 2016 , there was $0.4 million of unrecognized compensation cost related to restricted stock net of estimated forfeitures, which is expected to be recognized over a weighted average period of 0.5 years . |
Restricted Stock Unit and Performance Stock Unit Activity | The following table summarizes RSU and PSU activity for the year ended December 31, 2016 . (Amounts in thousands, except per share data) Number of RSUs/ PSUs Weighted Average Grant Date Fair Value Outstanding at December 31, 2015 5,840,388 $ 8.52 Granted 4,508,818 5.95 Vested and converted to common stock (1) (2,798,828 ) 7.92 Canceled (63,768 ) 7.02 Outstanding at December 31, 2016 (2) 7,486,610 $ 7.21 (1) The total fair value of RSUs/PSUs that vested and converted to common stock during the years ended December 31, 2016 , 2015 and 2014 was $22.2 million, $18.9 million and $12.6 million, respectively. (2) As of December 31, 2016 , there was $14.3 million of unrecognized compensation cost related to RSUs/PSUs net of estimated forfeitures, which is expected to be recognized over a weighted average period of 1.4 years . |
Black-Scholes Model Assumptions for Calculating ESPP Fair Values | The fair values of the stock purchase rights of the ESPP offerings were calculated using a Black-Scholes option pricing model with the following weighted average assumptions: Years Ended December 31, (Dollars per share) 2016 2015 2014 Risk-free interest rate 0.50 % 0.33 % 0.13 % Expected volatility 32 % 27 % 25 % Expected dividend rate — % — % — % Expected life of the option 1 year 1 year 1 year Weighted average fair value of stock purchase rights $ 1.53 $ 1.74 $ 1.66 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 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 December 31, 2016 December 31, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Available-for-sale investments $ — $ 208,603 $ — $ 208,603 $ — $ 195,391 $ — $ 195,391 Derivative instruments — 7,808 — 7,808 — 15,314 — 15,314 Total $ — $ 216,411 $ — $ 216,411 $ — $ 210,705 $ — $ 210,705 Liabilities Derivative instruments $ — $ (25,937 ) $ — $ (25,937 ) $ — $ (30,497 ) $ — $ (30,497 ) Total $ — $ (25,937 ) $ — $ (25,937 ) $ — $ (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. December 31, 2016 December 31, 2015 Fair Value Carrying Value Difference Fair Value Carrying Value Difference Earning assets Loans held for investment, net $ 16,520,786 $ 15,137,922 $ 1,382,864 $ 12,343,726 $ 11,630,591 $ 713,135 Cash and cash equivalents 1,918,793 1,918,793 — 2,416,219 2,416,219 — Available-for-sale investments 208,603 208,603 — 195,391 195,391 — Accrued interest receivable 766,106 766,106 — 564,496 564,496 — Tax indemnification receivable 259,532 259,532 — 186,076 186,076 — Derivative instruments 7,808 7,808 — 15,314 15,314 — Total earning assets $ 19,681,628 $ 18,298,764 $ 1,382,864 $ 15,721,222 $ 15,008,087 $ 713,135 Interest-bearing liabilities Money-market and savings accounts $ 7,963,925 $ 7,963,925 $ — $ 5,556,254 $ 5,556,254 $ — Certificates of deposit 5,510,504 5,471,065 (39,439 ) 5,928,450 5,931,453 3,003 Short-term borrowings — — — 500,175 500,175 — Long-term borrowings 2,160,105 2,167,979 7,874 567,468 579,101 11,633 Accrued interest payable 21,058 21,058 — 16,385 16,385 — Derivative instruments 25,937 25,937 — 30,497 30,497 — Total interest-bearing liabilities $ 15,681,529 $ 15,649,964 (31,565 ) $ 12,599,229 $ 12,613,865 $ 14,636 Excess of net asset fair value over carrying value $ 1,351,299 $ 727,771 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following capital amounts and ratios are based upon the Bank’s assets. Actual “Well Capitalized” Regulatory Requirements Amount Ratio Amount Ratio As of December 31, 2016: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 2,011,583 12.6 % $ 1,038,638 > 6.5 % Tier 1 Capital (to Risk-Weighted Assets) $ 2,011,583 12.6 % $ 1,278,323 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 2,197,997 13.8 % $ 1,597,904 > 10.0 % Tier 1 Capital (to Average Assets) $ 2,011,583 11.1 % $ 907,565 > 5.0 % 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 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Tax Disclosure [Abstract] | |
Reconciliations of Statutory U.S. Federal Income Tax Rates to Our Effective Tax Rate for Continuing Operations | Reconciliations of the statutory U.S. federal income tax rates to our effective tax rate for continuing operations follow: Years Ended December 31, 2016 2015 2014 Statutory rate 35.0 % 35.0 % 35.0 % State tax, net of federal benefit 3.1 3.0 2.9 Impact of state rate change on net deferred tax liabilities, net of federal benefit (0.5 ) 0.5 4.4 State, valuation allowance adjustments on net operating losses 1.0 (0.2 ) (4.0 ) Unrecognized tax benefits, U.S. federal and state, net of federal benefit 1.6 (0.5 ) 4.8 Other, net (0.6 ) (0.3 ) (1.2 ) Effective tax rate 39.6 % 37.5 % 41.9 % |
Components of Provision for Income Tax Expense (Benefit) | Income tax expense consists of: December 31, 2016 2015 2014 Current provision: Federal $ 228,505 $ 215,950 $ 137,573 State 24,336 26,057 43,282 Total current provision 252,841 242,007 180,855 Deferred (benefit)/provision: Federal (89,518 ) (69,546 ) (40,370 ) State 786 (7,681 ) (518 ) Total deferred (benefit)/provision (88,732 ) (77,227 ) (40,888 ) Provision for income tax expense $ 164,109 $ 164,780 $ 139,967 |
Schedule of Deferred Tax Assets and Liabilities | The tax effect of temporary differences that give rise to deferred tax assets and liabilities include the following: December 31, 2016 2015 Deferred tax assets: Loan reserves $ 72,125 $ 45,082 Stock-based compensation plans 16,471 16,939 Deferred revenue 793 209 Operating loss and credit carryovers 8,371 16,106 Unrealized losses 5,364 9,949 Accrued expenses not currently deductible 13,605 10,696 Unrecorded tax benefits 5,702 15,251 Other 10,844 9,871 Total deferred tax assets 133,275 124,103 Deferred tax liabilities: Gains on repurchased debt 126,403 190,936 Fixed assets 6,831 6,237 Acquired intangible assets 6,288 6,724 Other 2,933 1,794 Total deferred tax liabilities 142,455 205,691 Net deferred tax liabilities $ (9,180 ) $ (81,588 ) |
Summary of Changes in Unrecognized Tax Benefits | The following table summarizes changes in unrecognized tax benefits: December 31, 2016 2015 2014 Unrecognized tax benefits at beginning of year $ 47,109 $ 59,405 $ 7,344 Increases resulting from tax positions taken during a prior period 110,894 3,456 45,184 Decreases resulting from tax positions taken during a prior period (3,285 ) (10,121 ) — Increases resulting from tax positions taken during the current period 817 3,447 7,713 Decreases related to settlements with taxing authorities (123 ) (7,481 ) (236 ) Reductions related to the lapse of statute of limitations (2,831 ) (1,597 ) (600 ) Unrecognized tax benefits at end of year $ 152,581 $ 47,109 $ 59,405 |
Parent Only Statements (Tables)
Parent Only Statements (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Parent Only Condensed Balance Sheets | Parent Only Condensed Balance Sheets December 31, 2016 2015 Assets Cash and cash equivalents $ 292,277 $ 282,036 Total investments in subsidiaries (primarily Sallie Mae Bank) 2,042,015 1,810,567 Tax indemnification receivable 259,532 186,076 Due from subsidiaries, net 31,834 21,396 Other assets 1,561 1,352 Total assets $ 2,627,219 $ 2,301,427 Liabilities and Equity Liabilities Income taxes payable, net $ 256,556 $ 189,215 Payable due to Navient 2,823 1,990 Other liabilities 20,782 13,899 Total liabilities 280,161 205,104 Equity Preferred stock, par value $0.20 per share, 20 million shares authorized: Series A: 3.3 million and 3.3 million shares issued, respectively, at stated value of $50 per share 165,000 165,000 Series B: 4 million and 4 million shares issued, respectively, at stated value of $100 per share 400,000 400,000 Common stock, par value $0.20 per share, 1.125 billion shares authorized: 436.6 million and 430.7 million shares issued, respectively 87,327 86,136 Additional paid-in capital 1,175,564 1,135,860 Accumulated other comprehensive loss (net of tax benefit of $5,364 and $9,949, respectively) (8,671 ) (16,059 ) Retained earnings 595,322 366,609 Total SLM Corporation stockholders’ equity before treasury stock 2,414,542 2,137,546 Less: Common stock held in treasury at cost: 7.7 million and 4.4 million shares, respectively (67,484 ) (41,223 ) Total equity 2,347,058 2,096,323 Total liabilities and equity $ 2,627,219 $ 2,301,427 |
Parent Only Condensed Statements of Income | Parent Only Condensed Statements of Income Years Ended December 31, 2016 2015 2014 Interest income $ 5,367 $ 6,414 $ 4,980 Interest expense — — — Net interest income 5,367 6,414 4,980 Other income (loss) 9,396 (239 ) 1,097 Operating expenses 32,553 36,141 36,967 Loss before income tax benefit and equity in net income from subsidiaries (17,790 ) (29,966 ) (30,890 ) Income tax benefit (2,839 ) (8,612 ) (13,196 ) Equity in net income from subsidiaries (primarily Sallie Mae Bank) 265,278 295,638 211,479 Net income 250,327 274,284 193,785 Preferred stock dividends 21,204 19,595 12,933 Net income attributable to common stock $ 229,123 $ 254,689 $ 180,852 |
Parent Only Condensed Statements of Cash Flows | Parent Only Condensed Statements of Cash Flows Years Ended December 31, 2016 2015 2014 Cash flows from operating activities: Net income $ 250,327 $ 274,284 $ 193,785 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Undistributed earnings of subsidiaries (265,278 ) (295,638 ) (211,479 ) Interest income on tax indemnification receivable (12,283 ) (5,398 ) (5,904 ) Decrease (increase) in investment in subsidiaries, net 63,222 (103,602 ) 278,365 Decrease in tax indemnification receivable 59,633 59,633 44,724 (Increase) decrease in due from subsidiaries, net (10,438 ) 11,012 (32,408 ) Increase in other assets (8,972 ) (14,366 ) (5,447 ) Decrease in income taxes payable, net (53,465 ) (54,907 ) (312,770 ) Increase (decrease) in payable due to entity that is a subsidiary of Navient 553 (6,774 ) 8,764 Increase in other liabilities 8,856 1,402 14,398 Total adjustments (218,172 ) (408,638 ) (221,757 ) Net cash provided by (used in) operating activities 32,155 (134,354 ) (27,972 ) Cash flows from investing activities: Net cash provided by (used in) investing activities — — — Cash flows from financing activities: Special cash contribution from Navient — — 472,718 Excess tax (expense) benefit from exercise of stock-based awards (710 ) 1,740 2,432 Preferred stock dividends paid (21,204 ) (19,595 ) (12,933 ) Net cash (used in) provided by financing activities (21,914 ) (17,855 ) 462,217 Net increase (decrease) in cash and cash equivalents 10,241 (152,209 ) 434,245 Cash and cash equivalents at beginning of year 282,036 434,245 — Cash and cash equivalents at end of year $ 292,277 $ 282,036 $ 434,245 |
Selected Quarterly Financial 48
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | 2016 First Second Third Fourth (Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Net interest income $ 209,863 $ 212,766 $ 223,275 $ 245,434 Less: provisions for credit losses 32,602 41,793 41,784 43,226 Net interest income after provisions for credit losses 177,261 170,973 181,491 202,208 Gains on sales of loans, net — — — 230 (Losses) gains on derivative and hedging activities, net (354 ) 2,142 1,368 (4,114 ) Other income 21,028 13,683 21,598 13,235 Total operating expenses 92,885 94,777 99,709 98,036 Acquired intangible asset amortization expense 260 261 226 159 Income tax expense 38,875 34,555 47,557 43,122 Net income 65,915 57,205 56,965 70,242 Preferred stock dividends 5,139 5,243 5,316 5,506 Net income attributable to SLM Corporation common stock $ 60,776 $ 51,962 $ 51,649 $ 64,736 Basic earnings per common share attributable to SLM Corporation (1) $ 0.14 $ 0.12 $ 0.12 $ 0.15 Diluted earnings per common share attributable to SLM Corporation (1) $ 0.14 $ 0.12 $ 0.12 $ 0.15 _____ (1) Basic and diluted earnings per common share attributable to SLM Corporation are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted earnings per common share information may not equal annual basic and diluted earnings per common share. 2015 First Second Third Fourth (Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Net interest income $ 170,954 $ 168,257 $ 175,442 $ 187,846 Less: provisions for credit losses 16,618 15,558 27,497 30,382 Net interest income after provisions for credit losses 154,336 152,699 147,945 157,464 Gains on sales of loans, net — 76,874 — 58,484 Gains (losses) on derivative and hedging activities, net 3,292 1,602 (547 ) 953 Other income 8,007 10,912 10,455 12,561 Total operating expenses 81,187 89,799 92,864 85,245 Acquired intangible asset amortization expense 370 370 370 370 Restructuring and other reorganization expenses 4,657 744 910 (913 ) Income tax expense 31,722 60,158 17,985 54,915 Net income 47,699 91,016 45,724 89,845 Preferred stock dividends 4,823 4,870 4,913 4,989 Net income attributable to SLM Corporation common stock $ 42,876 $ 86,146 $ 40,811 $ 84,856 Basic earnings per common share attributable to SLM Corporation (1) $ 0.10 $ 0.20 $ 0.10 $ 0.20 Diluted earnings per common share attributable to SLM Corporation (1) $ 0.10 $ 0.20 $ 0.09 $ 0.20 _____ (1) Basic and diluted earnings per common share attributable to SLM Corporation are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted earnings per common share information may not equal annual basic and diluted earnings per common share. |
Organization and Business - Add
Organization and Business - Additional Information (Detail) | Apr. 30, 2014entityshares |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of publicly-traded entities | entity | 2 |
Number of shares issued for each share prior to spin-off (in shares) | shares | 1 |
Significant Accounting Polici50
Significant Accounting Policies - Additional Information (Detail) - USD ($) | Apr. 29, 2014 | Jun. 30, 2014 | Apr. 30, 2014 | Apr. 29, 2014 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans purchased | $ 0 | |||||||
Private Education Loan loss confirmation period (in years) | 1 year | |||||||
FFELP loan loss confirmation period (in years) | 2 years | |||||||
Loan delinquent period | 90 days | |||||||
Minimum days past due for spin off loan purchase | 90 days | |||||||
Period of hardship forbearance | 6 months | |||||||
Private education loans | $ 14,113,409,000 | $ 10,515,505,000 | ||||||
Loss confirmation period | 2 years | 1 year | ||||||
Personal loans held at end of year | $ 12.8 | |||||||
Interest rate reduction and forbearance usage (greater than) | 3 months | |||||||
Period after grace period for forbearance allowance for loans | 9 months | |||||||
Forbearance period after grace period for loans | 6 months | |||||||
Period of forbearance period to be classified as TDR | 3 months | |||||||
Percentage of loans granted forbearance (as a percentage) | 26.00% | 23.00% | ||||||
Dollar amount of change in allowance due to policy change | $ 14,000,000 | |||||||
Percentage of Private Education Loans related to borrowers inschool, grace or deferment (as a percentage) | 29.00% | 32.00% | ||||||
Period after last payment contractually due private education loan considered to be delinquent | 31 days | |||||||
Percentage reimbursement on all qualifying default claims period two (as a percentage) | 97.00% | |||||||
Percentage reimbursement on all qualifying default claims period one (as a percentage) | 98.00% | |||||||
Percentage reimbursement on all qualifying default claims period three (as a percentage) | 100.00% | |||||||
Period of notification for withdrawal of deposits (less than or equal to) | 7 days | |||||||
Constant prepayment rate for Private Education Loans (in percentage) | 5.00% | 5.12% | ||||||
Loans sold | $ 805,000,000 | |||||||
Gains on sales of loans, net | $ 36,000,000 | $ 85,000,000 | $ 230,000 | $ 135,358,000 | $ 121,359,000 | |||
Asset balance related to securitization trust (as a percentage) | 10.00% | |||||||
Deferred taxes | 283,000,000 | $ 9,180,000 | 81,588,000 | |||||
Tax indemnification receivable | 259,532,000 | 186,076,000 | ||||||
Deferred tax asset discount | 27,000,000 | 116,000,000 | ||||||
Remaining amount of indemnification | $ 116,000,000 | |||||||
Maximum | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loan delinquent period | 212 days | 120 days | ||||||
Minimum | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loan delinquent period | 150 days | 30 days | ||||||
FFELP Loans Rehabilitated | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Loans purchased | $ 0 | |||||||
Split Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Private education loans | 67,000,000 | |||||||
Navient | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Deferred taxes | 283,000,000 | 131,000,000 | ||||||
Tax indemnification receivable | 291,000,000 | 144,000,000 | ||||||
Deferred tax asset discount | 27,000,000 | $ 0 | 28,000,000 | |||||
Deferred tax liability | 310,000,000 | 159,000,000 | ||||||
Deferred tax assets | 310,000,000 | |||||||
Deferred tax asset discount | $ 19,000,000 | |||||||
Remaining amount of indemnification | $ 116,000,000 | |||||||
ABCP borrowings | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Contractual maturity related to ABCP facility | 2 years | |||||||
Additional Tax Positions [Member] | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Increase (decrease) in tax receivable and income tax payable | $ 120,000,000 | |||||||
Increase (decrease) in other income and income tax expense | $ 9,000,000 |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Cash and Cash Equivalents [Abstract] | ||
Cash due from Federal Reserve Bank | $ 1,900,000,000 | $ 2,400,000,000 |
Cash due from depository institutions | 26,900,000 | 22,400,000 |
Outstanding cash equivalents | 0 | 0 |
Interest income from term deposit facility | 200,000 | 300,000 |
Funds on deposit under the Term Deposit Facility program | 0 | 0 |
Average reserve balances with Federal Reserve | $ 500,000 | $ 1,200,000 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available for sale: | ||
Amortized Cost | $ 211,406 | $ 196,402 |
Gross Unrealized Gains | 929 | |
Gross Unrealized Losses | (3,732) | |
Mortgage-backed securities | 208,603 | 195,391 |
Mortgage-backed securities | ||
Available for sale: | ||
Amortized Cost | 196,406 | 196,402 |
Gross Unrealized Gains | 929 | 1,370 |
Gross Unrealized Losses | (3,042) | (2,381) |
Mortgage-backed securities | 194,293 | $ 195,391 |
Utah Housing Corporation bonds | ||
Available for sale: | ||
Amortized Cost | 15,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (690) | |
Mortgage-backed securities | $ 14,310 |
Investments - Gross Unrealized
Investments - Gross Unrealized Losses and Fair Value for Mortgage-Backed in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Gross Unrealized Losses | $ (3,113) | |
12 months or more, Gross Unrealized Losses | (619) | |
Total, Gross Unrealized Losses | (3,732) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, Estimated Fair Value | 143,859 | |
12 months or more, Estimated Fair Value | 10,885 | |
Total, Estimated Fair Value | 154,744 | |
Mortgage-backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Gross Unrealized Losses | (2,423) | $ (827) |
12 months or more, Gross Unrealized Losses | (619) | (1,554) |
Total, Gross Unrealized Losses | (3,042) | (2,381) |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, Estimated Fair Value | 129,549 | 73,802 |
12 months or more, Estimated Fair Value | 10,885 | 39,271 |
Total, Estimated Fair Value | 140,434 | $ 113,073 |
Utah Housing Corporation bonds | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss [Abstract] | ||
Less than 12 months, Gross Unrealized Losses | (690) | |
12 months or more, Gross Unrealized Losses | 0 | |
Total, Gross Unrealized Losses | (690) | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Abstract] | ||
Less than 12 months, Estimated Fair Value | 14,310 | |
12 months or more, Estimated Fair Value | 0 | |
Total, Estimated Fair Value | $ 14,310 |
Investments - Additional Inform
Investments - Additional Information (Details) $ in Thousands | Dec. 31, 2016USD ($)security | Dec. 31, 2015USD ($)security |
Investment Holdings [Line Items] | ||
Amortized Cost | $ 211,406 | $ 196,402 |
Par value of mortgage-backed securities pledged to FRB | 188,000 | 188,300 |
Mortgage-backed securities | ||
Investment Holdings [Line Items] | ||
Amortized Cost | $ 196,406 | $ 196,402 |
Number of mortgage-backed securities with unrealized losses | security | 48 | 35 |
Number of mortgage-backed securities | security | 84 | 74 |
Utah Housing Corporation bonds | ||
Investment Holdings [Line Items] | ||
Amortized Cost | $ 15,000 | |
Ginnie Mae | Mortgage-backed securities | ||
Investment Holdings [Line Items] | ||
Amortized Cost | $ 101,200 | |
Number of mortgage-backed securities with unrealized losses | security | 21 | 14 |
Fannie Mae | Mortgage-backed securities | ||
Investment Holdings [Line Items] | ||
Amortized Cost | $ 66,500 | |
Freddie Mac | Mortgage-backed securities | ||
Investment Holdings [Line Items] | ||
Amortized Cost | 28,800 | |
Aa3 Rating | Utah Housing Corporation bonds | ||
Investment Holdings [Line Items] | ||
Amortized Cost | $ 15,000 |
Investments - Maturity Table (D
Investments - Maturity Table (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments at fair value | $ 211,406 | $ 196,402 |
Mortgage-backed securities | 208,603 | $ 195,391 |
Maturity 2,038 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments at fair value | 278 | |
Mortgage-backed securities | 303 | |
Maturity 2,039 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments at fair value | 5,405 | |
Mortgage-backed securities | 5,758 | |
Maturity 2,042 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments at fair value | 15,344 | |
Mortgage-backed securities | 14,621 | |
Maturity 2,043 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments at fair value | 46,996 | |
Mortgage-backed securities | 47,045 | |
Maturity 2,044 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments at fair value | 37,970 | |
Mortgage-backed securities | 37,876 | |
Maturity 2,045 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments at fair value | 50,814 | |
Mortgage-backed securities | 50,084 | |
Maturity 2,046 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments at fair value | 39,599 | |
Mortgage-backed securities | 38,606 | |
Maturity 2,047 | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale investments at fair value | 15,000 | |
Mortgage-backed securities | $ 14,310 |
Loans Held for Investment - Add
Loans Held for Investment - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2016USD ($)payment | Dec. 31, 2015USD ($) | Jul. 01, 2006 | Jun. 30, 2006 | Sep. 30, 1993 | |
Finance Receivable Transferred To Held For Sale [Line Items] | |||||
Percent of private loans indexed to LIBOR (as a percentage) | 81.00% | ||||
Tier 1 of government guarantee | 97.00% | ||||
Tier 2 of government guarantee | 98.00% | ||||
Tier 3 of government guarantee | 100.00% | ||||
Newly originated personal loans | $ 12,900,000 | ||||
Estimated weighted average life of student loans | 6 years | 6 years 2 months 6 days | |||
Number of payments to qualify for Private Education Loan program | payment | 3 | ||||
Period of interest rate reduction | 24 months | ||||
Period of loans past due that have accrued interest | 90 days | ||||
Loans in nonaccrual status | $ 0 | $ 0 | |||
FFELP Loans | |||||
Finance Receivable Transferred To Held For Sale [Line Items] | |||||
90 or more days delinquent | 67,500,000 | 122,900,000 | |||
Private Education Loans | |||||
Finance Receivable Transferred To Held For Sale [Line Items] | |||||
90 or more days delinquent | 24,200,000 | 20,900,000 | |||
FFELP Loans | |||||
Finance Receivable Transferred To Held For Sale [Line Items] | |||||
Loans pledged to Borrower in Custody | 0 | 0 | |||
Private Education Loans | |||||
Finance Receivable Transferred To Held For Sale [Line Items] | |||||
Loans pledged to Borrower in Custody | $ 2,700,000,000 | $ 1,700,000,000 |
Loans Held for Investment - Stu
Loans Held for Investment - Student Loan Portfolio by Program (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Private Education Loans | $ 14,251,675 | $ 10,596,437 |
Deferred origination costs | 44,206 | 27,884 |
Allowance for loan losses | (182,472) | (108,816) |
Total Private Education Loans, net | 14,113,409 | 10,515,505 |
FFELP Loans | 1,010,908 | 1,115,663 |
Unamortized acquisition costs, net | 2,941 | 3,114 |
Allowance for loan losses | (2,171) | (3,691) |
Total FFELP Loans, net | 1,011,678 | 1,115,086 |
Personal Loans | 12,893 | 0 |
Allowance for loan losses | (58) | 0 |
Total Personal Loans, net | 12,835 | 0 |
Loans held for investment, net | $ 15,137,922 | $ 11,630,591 |
Loans Held for Investment - S58
Loans Held for Investment - Student Loan Portfolio Average Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | |||
Average balance of Private Education Loans | $ 12,747,756 | $ 9,819,053 | $ 7,563,356 |
Average Balance, FFELP Loans | 1,063,325 | 1,179,723 | 1,353,497 |
Average Balance, Total portfolio | $ 13,811,081 | $ 10,998,776 | $ 8,916,853 |
Weighted Average Interest Rate, Private Education Loans | 8.02% | 7.93% | 8.16% |
Weighted Average Interest Rate, FFELP Loans | 3.53% | 3.26% | 3.24% |
Loans Held for Investment - by
Loans Held for Investment - by Region (Details) | Dec. 31, 2016 | Dec. 31, 2015 |
Loans held for investment by Region [Line Items] | ||
Percentage of Loans concentrated in major states | 40.30% | 39.80% |
New York | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 10.30% | 10.10% |
California | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 9.40% | 9.60% |
Pennsylvania | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 8.40% | 8.10% |
New Jersey | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 6.90% | 6.70% |
Illinois | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 5.30% | 5.30% |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance for Credit Losses and Recorded Investments in Loans (Detail) $ in Thousands | Apr. 29, 2014 | Dec. 31, 2016USD ($)charge_off | Dec. 31, 2015USD ($)charge_off | Dec. 31, 2014USD ($)charge_off |
Allowance for Loan Losses | ||||
Beginning balance | $ 112,507 | $ 83,842 | $ 68,081 | |
Total provision | 159,339 | 88,349 | 85,529 | |
Charge-offs | (91,551) | (57,939) | (17,438) | |
Recoveries | 10,382 | 5,820 | 1,155 | |
Net charge-offs | (81,169) | (52,119) | (16,283) | |
Student loan sales | (6,034) | (7,565) | (53,485) | |
Ending Balance | 184,643 | 112,507 | 83,842 | |
Allowance: | ||||
Ending balance: individually evaluated for impairment | 86,930 | 43,480 | 9,815 | |
Ending balance: collectively evaluated for impairment | 97,713 | 69,027 | 74,027 | |
Loans: | ||||
Ending balance: individually evaluated for impairment | 612,606 | 265,831 | 59,402 | |
Ending balance: collectively evaluated for impairment | 14,649,977 | 11,446,269 | 9,516,781 | |
Period of delinquent loans sold to subsidiary (greater than) | 90 days | |||
FFELP Loans | ||||
Allowance for Loan Losses | ||||
Beginning balance | 3,691 | 5,268 | 6,318 | |
Total provision | (172) | 1,005 | 1,946 | |
Charge-offs | (1,348) | (2,582) | (2,996) | |
Recoveries | 0 | 0 | 0 | |
Net charge-offs | (1,348) | (2,582) | (2,996) | |
Student loan sales | 0 | 0 | 0 | |
Ending Balance | 2,171 | 3,691 | 5,268 | |
Allowance: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | |
Ending balance: collectively evaluated for impairment | 2,171 | 3,691 | 5,268 | |
Loans: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | |
Ending balance: collectively evaluated for impairment | $ 1,010,908 | $ 1,115,663 | $ 1,264,807 | |
Net charge-offs as a percentage of average loans in repayment | 0.17% | 0.30% | 0.31% | |
Allowance as a percentage of the ending total loan balance | 0.21% | 0.33% | 0.42% | |
Allowance as a percentage of the ending loans in repayment | 0.28% | 0.45% | 0.57% | |
Allowance coverage of net charge-offs | charge_off | 1.61 | 1.43 | 1.76 | |
Ending total loans, gross | $ 1,010,908 | $ 1,115,663 | $ 1,264,807 | |
Average loans in repayment | 793,203 | 857,359 | 972,390 | |
Ending loans in repayment | 786,332 | 813,815 | 926,891 | |
Private Education Loans | ||||
Allowance for Loan Losses | ||||
Beginning balance | 108,816 | 78,574 | 61,763 | |
Total provision | 159,511 | 87,344 | 83,583 | |
Charge-offs | (90,203) | (55,357) | (14,442) | |
Recoveries | 10,382 | 5,820 | 1,155 | |
Net charge-offs | (79,821) | (49,537) | (13,287) | |
Student loan sales | (6,034) | (7,565) | (53,485) | |
Ending Balance | 182,472 | 108,816 | 78,574 | |
Allowance: | ||||
Ending balance: individually evaluated for impairment | 86,930 | 43,480 | 9,815 | |
Ending balance: collectively evaluated for impairment | 95,542 | 65,336 | 68,759 | |
Loans: | ||||
Ending balance: individually evaluated for impairment | 612,606 | 265,831 | 59,402 | |
Ending balance: collectively evaluated for impairment | $ 13,639,069 | $ 10,330,606 | $ 8,251,974 | |
Net charge-offs as a percentage of average loans in repayment | 0.96% | 0.82% | 0.30% | |
Allowance as a percentage of the ending total loan balance | 1.28% | 1.03% | 0.95% | |
Allowance as a percentage of the ending loans in repayment | 1.88% | 1.57% | 1.53% | |
Allowance coverage of net charge-offs | charge_off | 2.29 | 2.20 | 5.91 | |
Ending total loans, gross | $ 14,251,675 | $ 10,596,437 | $ 8,311,376 | |
Average loans in repayment | 8,283,036 | 6,031,741 | 4,495,709 | |
Ending loans in repayment | $ 9,709,758 | $ 6,927,266 | $ 5,149,215 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Jul. 01, 2006 | |
Schedule Of Allowance For Credit Losses And Recorded Investment In Financing Receivables Table [Line Items] | |||
Period after grace period for forbearance allowance for loans | 9 months | ||
Forbearance period after grace period for loans | 6 months | ||
Period of forbearance period to be classified as TDR | 3 months | ||
Percentage of loans granted forbearance (as a percentage) | 26.00% | 23.00% | |
Criteria for loans to be considered as nonperforming | 90 days | ||
Tier 1 of government guarantee | 97.00% | ||
TDR payment default period | 60 days | ||
Period of loans past due that have accrued interest | 90 days | ||
Private Education Loans | |||
Schedule Of Allowance For Credit Losses And Recorded Investment In Financing Receivables Table [Line Items] | |||
Troubled debt restructuring | $ 705.5 | ||
FFELP Loans | |||
Schedule Of Allowance For Credit Losses And Recorded Investment In Financing Receivables Table [Line Items] | |||
Tier 1 of government guarantee | 97.00% |
Allowance for Loan Losses - Rec
Allowance for Loan Losses - Recorded Investment, Unpaid Principal Balance and Related Allowance for TDR Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
TDR Loans, Recorded Investment | $ 620,991 | $ 269,628 |
TDR Loans, Unpaid Principal Balance | 612,606 | 265,831 |
TDR Loans, Allowance | $ 86,930 | $ 43,480 |
Allowance for Loan Losses - Ave
Allowance for Loan Losses - Average Recorded Investment and Interest Income Recognized for TDR (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | |||
TDR Loans, Average Recorded Investment | $ 422,527 | $ 174,087 | $ 23,290 |
TDR Loans, Interest Income Recognized | $ 30,700 | $ 14,081 | $ 1,105 |
Allowance for Loan Losses - Age
Allowance for Loan Losses - Age Analysis of Past Due Loan Delinquencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
TDR loans in repayment and percentage of each status: | ||||
Private Education Loans allowance for losses | $ (184,643) | $ (112,507) | $ (83,842) | $ (68,081) |
Student Loan | Consumer Portfolio Segment | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans in in-school/grace/deferment | 4,189,955 | 3,427,964 | 3,027,143 | |
Loans in forbearance | 351,962 | 241,207 | 135,018 | |
TDR loans in repayment and percentage of each status: | ||||
Loans current | 9,509,394 | 6,773,095 | 5,045,600 | |
Total TDR loans in repayment | $ 9,709,758 | $ 6,927,266 | $ 5,149,215 | |
Loans current, in percentage | 97.90% | 97.80% | 98.00% | |
Loans in repayment, in percentage | 100.00% | 100.00% | 100.00% | |
Total TDR loans, gross | $ 14,251,675 | $ 10,596,437 | $ 8,311,376 | |
Private Education Loans deferred origination costs | 44,206 | 27,884 | 13,845 | |
Total Private Education Loans | 14,295,881 | 10,624,321 | 8,325,221 | |
Private Education Loans allowance for losses | (182,472) | (108,816) | (78,574) | |
Percentage of Private Education Loans in repayment | $ 14,113,409 | $ 10,515,505 | $ 8,246,647 | |
Percentage of Private Education Loans in repayment | 68.10% | 65.40% | 62.00% | |
Delinquencies as a percentage of Private Education Loans in repayment | 2.10% | 2.20% | 2.00% | |
Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance | 3.50% | 3.40% | 2.60% | |
Student Loan | Consumer Portfolio Segment | Loans delinquent 31-60 days | ||||
TDR loans in repayment and percentage of each status: | ||||
Loans delinquent | $ 124,773 | $ 91,129 | $ 63,873 | |
Loans delinquent (in percentage) | 1.30% | 1.30% | 1.20% | |
Student Loan | Consumer Portfolio Segment | Loans delinquent 61-90 days | ||||
TDR loans in repayment and percentage of each status: | ||||
Loans delinquent | $ 51,423 | $ 42,048 | $ 29,041 | |
Loans delinquent (in percentage) | 0.50% | 0.60% | 0.60% | |
Student Loan | Consumer Portfolio Segment | Loans delinquent greater than 90 days | ||||
TDR loans in repayment and percentage of each status: | ||||
Loans delinquent | $ 24,168 | $ 20,994 | $ 10,701 | |
Loans delinquent (in percentage) | 0.30% | 0.30% | 0.20% | |
Troubled Debt Restructured Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans in in-school/grace/deferment | $ 24,185 | $ 6,869 | ||
Loans in forbearance | 71,851 | 43,756 | ||
TDR loans in repayment and percentage of each status: | ||||
Loans current | 462,187 | 185,936 | ||
Total TDR loans in repayment | $ 516,570 | $ 215,206 | ||
Loans current, in percentage | 89.50% | 86.40% | ||
Loans in repayment, in percentage | 100.00% | 100.00% | ||
Total TDR loans, gross | $ 612,606 | $ 265,831 | ||
Troubled Debt Restructured Loans | Loans delinquent 31-60 days | ||||
TDR loans in repayment and percentage of each status: | ||||
Loans delinquent | $ 28,452 | $ 14,948 | ||
Loans delinquent (in percentage) | 5.50% | 6.90% | ||
Troubled Debt Restructured Loans | Loans delinquent 61-90 days | ||||
TDR loans in repayment and percentage of each status: | ||||
Loans delinquent | $ 17,326 | $ 9,239 | ||
Loans delinquent (in percentage) | 3.40% | 4.30% | ||
Troubled Debt Restructured Loans | Loans delinquent greater than 90 days | ||||
TDR loans in repayment and percentage of each status: | ||||
Loans delinquent | $ 8,605 | $ 5,083 | ||
Loans delinquent (in percentage) | 1.60% | 2.40% |
Allowance for Loan Losses - Mod
Allowance for Loan Losses - Modified Loan Accounts for TDR (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Receivables [Abstract] | |||
Modified Loans | $ 398,324 | $ 244,890 | $ 59,402 |
Charge-offs | 24,628 | 10,877 | 948 |
Payment-Default | $ 64,811 | $ 51,602 | $ 325 |
Allowance for Loan Losses - Pri
Allowance for Loan Losses - Private Education Loan Portfolio Stratified by Key Credit Quality Indicators (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 14,251,675 | $ 10,596,437 |
Consumer Portfolio Segment | Student Loan | With cosigner | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 12,816,512 | $ 9,515,136 |
Private Education Loans with cosigner in percent | 90.00% | 90.00% |
Consumer Portfolio Segment | Student Loan | Without cosigner | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 1,435,163 | $ 1,081,301 |
Private Education Loans without cosigner in percent | 10.00% | 10.00% |
Consumer Portfolio Segment | Student Loan | Cosigners | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 14,251,675 | $ 10,596,437 |
Total in percent | 100.00% | 100.00% |
Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 14,251,675 | $ 10,596,437 |
Total in percent | 100.00% | 100.00% |
Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 14,251,675 | $ 10,596,437 |
Total in percent | 100.00% | 100.00% |
Seasoning based on monthly scheduled payments due from 1-12 payments, in percent | 26.00% | 29.00% |
Seasoning based on monthly scheduled payments due from 13 - 24 payments, in percent | 20.00% | 20.00% |
Seasoning based on monthly scheduled payments due from 25 - 36 payments, in percent | 13.00% | 10.00% |
Seasoning based on monthly scheduled payments due from 37 - 48 payments, in percent | 7.00% | 5.00% |
Seasoning based on monthly scheduled payments due from more than 48 payments, in percent | 5.00% | 4.00% |
Seasoning - based on monthly scheduled payments due from not yet in repayment, in percent | 29.00% | 32.00% |
FICO score less than 670 | Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 920,132 | $ 700,779 |
Private Education Loans at origination | 6.00% | 7.00% |
FICO score 670-699 | Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 2,092,722 | $ 1,554,959 |
Private Education Loans at origination | 15.00% | 15.00% |
FICO score 700-749 | Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 4,639,958 | $ 3,403,823 |
Private Education Loans at origination | 33.00% | 32.00% |
FICO score greater than 750 | Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 6,598,863 | $ 4,936,876 |
Private Education Loans at origination | 46.00% | 46.00% |
1-12 payments | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 3,737,110 | $ 3,059,901 |
13-24 payments | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 2,841,107 | 2,096,412 |
25-36 payments | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 1,839,764 | 1,084,818 |
37-48 payments | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 917,633 | 513,125 |
More than 48 payments | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 726,106 | 414,217 |
Not yet in repayment | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 4,189,955 | $ 3,427,964 |
Allowance for Loan Losses - Acc
Allowance for Loan Losses - Accrued Interest Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||
Accrued Interest Receivable On Private Education Loans | $ 739,847 | $ 542,919 |
Greater Than 90 Days Past Due | 845 | 791 |
Allowance For Uncollectible Accrued Interest | $ 2,898 | $ 3,332 |
Premises and Equipment, Net - S
Premises and Equipment, Net - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 136,207 | $ 120,825 |
Accumulated depreciation | (49,144) | (39,552) |
Premises and equipment, net | 87,063 | 81,273 |
Land and Land Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 12,574 | 12,574 |
Buildings and Leasehold Improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 60,919 | 56,446 |
Furniture, Fixtures and Equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 15,026 | 12,275 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 47,688 | $ 39,530 |
Premises and Equipment, Net - N
Premises and Equipment, Net - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation of premises and equipment | $ 9,592 | $ 7,437 | $ 6,099 |
Deposits - Summary (Details)
Deposits - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Deposits [Abstract] | ||
Deposits - interest bearing | $ 13,434,990 | $ 11,487,006 |
Deposits - non-interest bearing | 677 | 701 |
Total deposits | $ 13,435,667 | $ 11,487,707 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Deposits [Abstract] | |||
Stable interest-bearing deposits | $ 1,500,000 | ||
Aggregate of deposits of individual depositors | 5,400,000 | ||
Brokered deposit placement fee | 10,100 | $ 10,500 | $ 10,300 |
Third party broker fees paid | 4,400 | 4,100 | $ 15,200 |
Deposits exceeding FDIC insurance limits | 304,500 | 709,900 | |
Accrued interest on deposits | 18,900 | 15,700 | |
Deposits - non-interest bearing | $ 677 | $ 701 |
Deposits - Interest Bearing Dep
Deposits - Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Interest-bearing Deposit Liabilities, Domestic, by Component [Abstract] | ||
Money market | $ 7,129,404 | $ 4,886,299 |
Savings | 834,521 | 669,254 |
Certificates of deposit | 5,471,065 | 5,931,453 |
Deposits - interest bearing | $ 13,434,990 | $ 11,487,006 |
Year-End Weighted Average Stated Rate | ||
Money market | 1.22% | 1.19% |
Savings | 0.84% | 0.82% |
Certificates of deposit | 1.41% | 0.98% |
Deposits - Certificates of Depo
Deposits - Certificates of Deposits Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
One year or less | $ 2,565,246 | $ 2,667,980 |
After one year to two years | 1,364,812 | 1,210,429 |
After two years to three years | 936,125 | 1,053,442 |
After three years to four years | 225,245 | 630,851 |
After four years to five years | 379,637 | 203,704 |
After five years | 0 | 165,047 |
Total | $ 5,471,065 | $ 5,931,453 |
Borrowings - Secured Borrowings
Borrowings - Secured Borrowings (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Secured borrowings: | ||
Short-Term | $ 0 | $ 500,175,000 |
Long-Term | 2,167,979,000 | 579,101,000 |
Total | 2,167,979,000 | 1,079,276,000 |
Private Education Loan term securitizations | ||
Secured borrowings: | ||
Short-Term | 0 | 0 |
Long-Term | 2,167,979,000 | 579,101,000 |
Total | 2,167,979,000 | 579,101,000 |
ABCP borrowings | ||
Secured borrowings: | ||
Short-Term | 0 | 500,175,000 |
Long-Term | 0 | 0 |
Total | $ 0 | $ 500,175,000 |
Borrowings - Additional (Detail
Borrowings - Additional (Details) - USD ($) | Feb. 22, 2017 | Oct. 12, 2016 | Jul. 21, 2016 | May 26, 2016 | Feb. 25, 2016 | Jul. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Feb. 08, 2017 | Oct. 27, 2015 | Apr. 23, 2015 | Dec. 19, 2014 |
Debt Instrument [Line Items] | ||||||||||||
Amount drawn and outstanding under ABCP facility | $ 0 | $ 500,175,000 | ||||||||||
Estimated weighted average life of student loans | 6 years | 6 years 2 months 6 days | ||||||||||
Discretionary uncommitted federal funds line of credit | $ 125,000,000 | |||||||||||
Lendable value of collateral | 2,600,000,000 | $ 1,700,000,000 | ||||||||||
ABCP borrowings | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount drawn and outstanding under ABCP facility | $ 0 | $ 500,175,000 | ||||||||||
Contractual maturity related to ABCP facility | 2 years | |||||||||||
Revolving period of contractual maturity | 1 year | |||||||||||
Amortization period of contractual maturity | 1 year | |||||||||||
Private Education Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Private education loan term accounted for as a secured financing | $ 674,000,000 | $ 657,000,000 | $ 551,000,000 | $ 714,000,000 | ||||||||
Loans sold to third parties | 631,000,000 | $ 701,000,000 | $ 738,000,000 | |||||||||
Gross profit raised from loans sold to third parties | $ 623,000,000 | |||||||||||
Loans pledged as collateral | $ 627,000,000 | |||||||||||
Class B Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Ownership interest percentage on asset-backed financing | 100.00% | 100.00% | ||||||||||
Ownership interest amount of securitized or asset backed loan | $ 50,000,000 | $ 50,000,000 | ||||||||||
Residual Certificates | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Ownership interest percentage on asset-backed financing | 100.00% | 100.00% | 100.00% | |||||||||
Private Education Loans, Class A | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loans sold to third parties | $ 607,000,000 | $ 501,000,000 | ||||||||||
Gross profit raised from loans sold to third parties | $ 607,000,000 | $ 501,000,000 | ||||||||||
Class A Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated weighted average life of student loans | 4 years 4 days | 4 years 4 days | ||||||||||
Private Education Loans, 2016 Term A | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loans pledged as collateral | 564,000,000 | |||||||||||
Private Education Loans, 2016 Term B | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loans pledged as collateral | $ 683,000,000 | |||||||||||
Class A and B Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Ownership interest percentage on asset-backed financing | 5.00% | |||||||||||
Ownership interest amount of securitized or asset backed loan | $ 33,000,000 | |||||||||||
Estimated weighted average life of student loans | 4 years 3 months 7 days | 4 years 9 months 18 days | ||||||||||
Private Education Loans, 2016 Term C | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Loans pledged as collateral | $ 689,000,000 | |||||||||||
Class C Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Ownership interest percentage on asset-backed financing | 100.00% | |||||||||||
Ownership interest amount of securitized or asset backed loan | $ 50,000,000 | |||||||||||
Loans sold to third parties | $ 674,000,000 | |||||||||||
Gross profit raised from loans sold to third parties | $ 673,000,000 | |||||||||||
London Interbank Offered Rate (LIBOR) | Class A Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.36% | 1.38% | ||||||||||
London Interbank Offered Rate (LIBOR) | Class A and B Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.15% | 1.53% | ||||||||||
Commercial Paper | ABCP borrowings | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Private education loan funding | $ 750,000,000 | $ 750,000,000 | ||||||||||
Ownership interest retained in ABCP facility (as a percent) | 5.00% | |||||||||||
Required ownership interest | $ 37,500,000 | |||||||||||
Funds available to draw | $ 712,500,000 | |||||||||||
Unused borrowing capacity fee (as a percent) | 0.40% | |||||||||||
Ownership Interest Percentage | 100.00% | |||||||||||
Commercial Paper | London Interbank Offered Rate (LIBOR) | ABCP borrowings | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 0.90% | 0.80% | ||||||||||
Minimum | Commercial Paper | ABCP borrowings | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unused borrowing capacity fee (as a percent) | 0.35% | |||||||||||
Maximum | Commercial Paper | ABCP borrowings | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unused borrowing capacity fee (as a percent) | 0.45% | |||||||||||
Subsequent Event | Private Education Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Private education loan term accounted for as a secured financing | $ 772,000,000 | |||||||||||
Loans sold to third parties | $ 772,000,000 | |||||||||||
Subsequent Event | Residual Certificates | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Ownership interest percentage on asset-backed financing | 100.00% | |||||||||||
Subsequent Event | Commercial Paper | ABCP borrowings | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Private education loan funding | $ 750,000,000 | |||||||||||
Subsequent Event | Commercial Paper | London Interbank Offered Rate (LIBOR) | ABCP borrowings | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 0.90% | |||||||||||
Subsequent Event | Minimum | Commercial Paper | ABCP borrowings | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unused borrowing capacity fee (as a percent) | 0.35% | |||||||||||
Subsequent Event | Maximum | Commercial Paper | ABCP borrowings | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Unused borrowing capacity fee (as a percent) | 0.45% |
Borrowings - Short Term Borrowi
Borrowings - Short Term Borrowings (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Short-term borrowings: | ||
Short-Term | $ 0 | $ 500,175,000 |
Maximum outstanding at any month end | 526,500,000 | 710,005,000 |
ABCP Facility | ||
Short-term borrowings: | ||
Short-Term | $ 0 | $ 500,175,000 |
Weighted Average Interest Rate | 0.00% | 0.84% |
Average Balance | $ 229,719,000 | $ 135,064,000 |
Weighted Average Interest Rate | 2.61% | 3.10% |
Borrowings - Long Term Borrowi
Borrowings - Long Term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Line of Credit Facility [Line Items] | ||
Long-term borrowings | $ 2,167,979 | $ 579,101 |
Weighted Average Interest Rate | 2.15% | 2.10% |
Average Balance | $ 1,236,045 | $ 253,759 |
Floating rate borrowings | ||
Line of Credit Facility [Line Items] | ||
Long-term borrowings | $ 1,175,819 | $ 337,098 |
Weighted Average Interest Rate | 1.71% | 1.38% |
Average Balance | $ 687,580 | $ 151,373 |
Fixed rate borrowings | ||
Line of Credit Facility [Line Items] | ||
Long-term borrowings | $ 992,160 | $ 242,003 |
Weighted Average Interest Rate | 2.68% | 3.11% |
Average Balance | $ 548,465 | $ 102,386 |
Borrowings - Secured Financing
Borrowings - Secured Financing (Details) - USD ($) | 12 Months Ended | |||||
Dec. 31, 2016 | Dec. 31, 2015 | Oct. 31, 2016 | Jul. 31, 2016 | May 31, 2016 | Jul. 31, 2015 | |
Debt Instrument [Line Items] | ||||||
Total Issued | $ 1,782,000,000 | $ 630,800,000 | ||||
Total loans and accrued interest amount securitized at inception | $ 2,107,042,000 | $ 745,580,000 | ||||
Issuance 2015-B | ||||||
Debt Instrument [Line Items] | ||||||
Total Issued | $ 630,800,000 | |||||
Weighted Average Life (in years) | 4 years 8 months 55 days | |||||
Issuance 2016-A | ||||||
Debt Instrument [Line Items] | ||||||
Total Issued | $ 501,000,000 | |||||
Weighted Average Life (in years) | 4 years 5 days | |||||
Issuance 2016-B | ||||||
Debt Instrument [Line Items] | ||||||
Total Issued | $ 607,000,000 | |||||
Weighted Average Life (in years) | 4 years 5 days | |||||
Issuance 2016-C | ||||||
Debt Instrument [Line Items] | ||||||
Total Issued | $ 674,000,000 | |||||
Weighted Average Life (in years) | 4 years 2 months 36 days | |||||
London Interbank Offered Rate (LIBOR) | Issuance 2015-B | ||||||
Debt Instrument [Line Items] | ||||||
Derivative basis spread on variable rate | 1.53% | |||||
London Interbank Offered Rate (LIBOR) | Issuance 2016-A | ||||||
Debt Instrument [Line Items] | ||||||
Derivative basis spread on variable rate | 1.38% | |||||
London Interbank Offered Rate (LIBOR) | Issuance 2016-B | ||||||
Debt Instrument [Line Items] | ||||||
Derivative basis spread on variable rate | 1.36% | |||||
London Interbank Offered Rate (LIBOR) | Issuance 2016-C | ||||||
Debt Instrument [Line Items] | ||||||
Derivative basis spread on variable rate | 1.15% |
Borrowings - Variable Interest
Borrowings - Variable Interest Entity (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Secured borrowings: | ||
Short-Term | $ 0 | $ 500,175,000 |
Long-Term | 2,167,979,000 | 579,101,000 |
Total | 2,167,979,000 | 1,079,276,000 |
Restricted Cash | 53,717,000 | 27,980,000 |
Other assets | 52,153,000 | 57,227,000 |
Private Education Loan term securitizations | ||
Secured borrowings: | ||
Short-Term | 0 | 0 |
Long-Term | 2,167,979,000 | 579,101,000 |
Total | 2,167,979,000 | 579,101,000 |
ABCP Facility | ||
Secured borrowings: | ||
Short-Term | 0 | 500,175,000 |
Long-Term | 0 | 0 |
Total | 0 | 500,175,000 |
Variable Interest Entity, Primary Beneficiary | ||
Secured borrowings: | ||
Short-Term | 0 | 500,175,000 |
Long-Term | 2,167,979,000 | 579,101,000 |
Total | 2,167,979,000 | 1,079,276,000 |
Loans | 2,562,156,000 | 1,610,985,000 |
Restricted Cash | 44,617,000 | 22,439,000 |
Other assets | 160,783,000 | 103,661,000 |
Total | 2,767,556,000 | 1,737,085,000 |
Variable Interest Entity, Primary Beneficiary | Private Education Loan term securitizations | ||
Secured borrowings: | ||
Short-Term | 0 | 0 |
Long-Term | 2,167,979,000 | 579,101,000 |
Total | 2,167,979,000 | 579,101,000 |
Loans | 2,562,156,000 | 687,298,000 |
Restricted Cash | 44,617,000 | 9,996,000 |
Other assets | 160,783,000 | 45,566,000 |
Total | 2,767,556,000 | 742,860,000 |
Variable Interest Entity, Primary Beneficiary | ABCP Facility | ||
Secured borrowings: | ||
Short-Term | 0 | 500,175,000 |
Long-Term | 0 | 0 |
Total | 0 | 500,175,000 |
Loans | 0 | 923,687,000 |
Restricted Cash | 0 | 12,443,000 |
Other assets | 0 | 58,095,000 |
Total | $ 0 | $ 994,225,000 |
Private Education Loan Term S80
Private Education Loan Term Securitizations Private Education Loan Term Securitizations (Details) - Private Education Loans - USD ($) $ in Millions | 3 Months Ended | ||||
Dec. 31, 2015 | Jun. 30, 2015 | Oct. 27, 2015 | Jul. 30, 2015 | Apr. 23, 2015 | |
Securitization or Asset-backed Financing Arrangement, Financial Asset for which Transfer is Accounted as Sale [Line Items] | |||||
Loans sold to third parties | $ 701 | $ 631 | $ 738 | ||
Pre-tax gain on sale of loans | $ 58 | $ 77 | |||
Percentage premium of private education loan term | 7.80% | 10.40% |
Derivative Financial Instrume81
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Derivative [Line Items] | ||
Percentage of total notional derivative contracts | 92.10% | |
Total amount of notional derivative contracts | $ 5,200 | |
Net positive exposure | 44.6 | $ 50.1 |
Estimated reclassification of AOCI to interest expense | 11.2 | |
Cash collateral held relative to derivative exposure | 1 | 1.1 |
Cash collateral pledged | 49.1 | $ 54.8 |
Chicago Mercantile Exchange and the London Clearing House | ||
Derivative [Line Items] | ||
Total amount of notional derivative contracts | $ 4,800 |
Derivative Financial Instrume82
Derivative Financial Instruments - Impact of Derivatives on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 7,808 | $ 15,314 |
Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 7,808 | 15,314 |
Derivative Liabilities | (25,937) | (30,497) |
Total net derivatives | (18,129) | (15,183) |
Trading | Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 83 |
Derivative Liabilities | (1,076) | (646) |
Total net derivatives | (1,076) | (563) |
Cash Flow | Designated as Hedging Instrument | Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | (14,463) | (27,512) |
Total net derivatives | (14,463) | (27,512) |
Fair Value | Designated as Hedging Instrument | Interest Rate Swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 7,808 | 15,231 |
Derivative Liabilities | (10,398) | (2,339) |
Total net derivatives | $ (2,590) | $ 12,892 |
Derivative Financial Instrume83
Derivative Financial Instruments - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Other Assets | ||
Gross position(1) | $ 7,808 | $ 15,314 |
Impact of master netting agreement | (7,808) | (9,278) |
Derivative values with impact of master netting agreements (as carried on balance sheet) | 0 | 6,036 |
Cash collateral (held) pledged | 0 | (1,070) |
Net position | 0 | 4,966 |
Other Liabilities | ||
Cash collateral (held) pledged | 49,100 | 54,800 |
Other Liabilities | ||
Other Liabilities | ||
Gross position(1) | (25,937) | (30,497) |
Impact of master netting agreement | 7,808 | 9,278 |
Derivative values with impact of master netting agreements (as carried on balance sheet) | (18,129) | (21,219) |
Cash collateral (held) pledged | 48,134 | 54,845 |
Net position | $ 30,005 | $ 33,626 |
Derivative Financial Instrume84
Derivative Financial Instruments - Notional Values (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | $ 5,200,000 | |
Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 5,177,388 | $ 5,495,857 |
Interest Rate Swaps | Trading | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 494,638 | 1,305,757 |
Interest Rate Swaps | Cash Flow | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 1,054,688 | 1,109,933 |
Interest Rate Swaps | Fair Value | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | $ 3,628,062 | $ 3,080,167 |
Derivative Financial Instrume85
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Trading | |||||||||||
Total | $ (4,114) | $ 1,368 | $ 2,142 | $ (354) | $ 953 | $ (547) | $ 1,602 | $ 3,292 | |||
Interest Rate Swaps | |||||||||||
Trading | |||||||||||
Total | $ 9,188 | $ 13,765 | $ 7,892 | ||||||||
Interest Rate Swaps | Designated as Hedging Instrument | Fair Value | |||||||||||
Fair Value Hedges | |||||||||||
Hedge ineffectiveness (losses) gains recorded in earnings(1) | (1,035) | 2,695 | 1,718 | ||||||||
Realized gains recorded in interest expense | 27,810 | 29,940 | 20,958 | ||||||||
Trading | |||||||||||
Total | 26,775 | 32,635 | 22,676 | ||||||||
Interest Rate Swaps | Designated as Hedging Instrument | Cash Flow | |||||||||||
Cash Flow Hedges | |||||||||||
Hedge ineffectiveness losses recorded in earnings(1) | (1,579) | (1,427) | (520) | ||||||||
Realized losses recorded in interest expense | (17,665) | (21,475) | (9,070) | ||||||||
Trading | |||||||||||
Total | (19,244) | (22,902) | (9,590) | ||||||||
Interest Rate Swaps | Trading | |||||||||||
Trading | |||||||||||
Interest reclassification | 2,170 | 3,451 | (2,250) | ||||||||
Change in fair value of future interest payments recorded in earnings | (513) | 581 | (2,944) | ||||||||
Total | $ 1,657 | $ 4,032 | $ (5,194) |
Derivative Financial Instrume86
Derivative Financial Instruments - Impact of Derivatives on the Statements of Changes in Stockholder's Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Amount of loss recognized in other comprehensive income (loss) | $ (3,901) | $ (26,699) | $ (28,842) |
Amount of loss reclassified in interest expense | (17,665) | (21,475) | (9,070) |
Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit | $ 13,764 | $ (5,224) | $ (19,772) |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) $ / shares in Units, shares in Millions | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 30, 2016 | |
Class of Stock [Line Items] | ||||
Common stock, shares authorized (in shares) | 1,125 | 1,125 | ||
Common stock, par value (in dollars per share) | $ 0.20 | $ 0.20 | ||
Common stock shares outstanding (in shares) | 429 | |||
Common shares unissued but encumbered (in shares) | 52 | |||
Common stock dividends | $ 0 | $ 0 | $ 0 | |
Net transfers to/from affiliate | $ 0 | $ 479,409,000 | ||
Series A Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock shares outstanding (in shares) | 3.3 | 3.3 | ||
Preferred stock dividend rate (as a percentage) | 6.97% | |||
Preferred stock dividend rate (in dollars per share) | $ 3.485 | |||
Preferred stock liquidation preference (in dollars per share) | $ 50 | |||
Series B Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock shares outstanding (in shares) | 4 | 4 | ||
Preferred stock liquidation preference (in dollars per share) | $ 100 | |||
Common Stock | ||||
Class of Stock [Line Items] | ||||
Share price (in dollars per share) | $ 11.02 | |||
Three Month LIBOR | Series B Preferred Stock | ||||
Class of Stock [Line Items] | ||||
Preferred stock dividend rate (as a percentage) | 1.70% |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Repurchased (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Equity [Abstract] | |||
Shares repurchased related to employee stock-based compensation plans (in shares) | 3,354,730 | 3,008,913 | 1,365,277 |
Average purchase price per share (in dollars per share) | $ 7.83 | $ 9.65 | $ 8.93 |
Common shares issued (in shares) | 5,955,045 | 5,873,309 | 2,013,805 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Numerator: | |||||||||||
Net income attributable to SLM Corporation | $ 70,242 | $ 56,965 | $ 57,205 | $ 65,915 | $ 89,845 | $ 45,724 | $ 91,016 | $ 47,699 | $ 250,327 | $ 274,284 | $ 194,219 |
Preferred stock dividends | 5,506 | 5,316 | 5,243 | 5,139 | 4,989 | 4,913 | 4,870 | 4,823 | 21,204 | 19,595 | 12,933 |
Net income attributable to SLM Corporation common stock | $ 64,736 | $ 51,649 | $ 51,962 | $ 60,776 | $ 84,856 | $ 40,811 | $ 86,146 | $ 42,876 | $ 229,123 | $ 254,689 | $ 181,286 |
Denominator: | |||||||||||
Weighted average shares used to compute basic EPS (in shares) | 427,876 | 425,574 | 423,970 | ||||||||
Effect of dilutive securities: | |||||||||||
Dilutive effect of stock options, restricted stock, restricted stock units and Employee Stock Purchase Plan (ESPP) (in shares) | 5,043 | 6,660 | 8,299 | ||||||||
Weighted average shares used to compute diluted EPS (in shares) | 432,919 | 432,234 | 432,269 | ||||||||
Basic earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.15 | $ 0.12 | $ 0.12 | $ 0.14 | $ 0.2 | $ 0.1 | $ 0.2 | $ 0.1 | $ 0.54 | $ 0.60 | $ 0.43 |
Diluted earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.15 | $ 0.12 | $ 0.12 | $ 0.14 | $ 0.2 | $ 0.09 | $ 0.2 | $ 0.1 | $ 0.53 | $ 0.59 | $ 0.42 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,000 | 2,000 | 3,000 |
Stock-Based Compensation Plan90
Stock-Based Compensation Plans and Arrangements - Additional Information (Detail) | 12 Months Ended | ||||
Dec. 31, 2016USD ($)compensation_planshares | Dec. 31, 2015USD ($)shares | Dec. 31, 2014USD ($)shares | Jun. 25, 2014shares | May 24, 2012shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of active stock-based compensation plans | compensation_plan | 1 | ||||
Stock-based compensation cost | $ 22,944,000 | $ 21,598,000 | $ 24,971,000 | ||
Unrecognized compensation cost | $ 14,800,000 | ||||
Weighted average period for total unrecognized compensation cost | 1 year 4 months 15 days | ||||
Vesting period | 3 years | ||||
Options granted in period (in shares) | shares | 0 | 0 | |||
Offering period of employee stock purchase plan | 12 months | ||||
Maximum contribution amount per employee to ESPP | $ 7,500 | ||||
SLM Corporation 2012 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized to be issued under plan (in shares) | shares | 25,000,000 | ||||
Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized to be issued under plan (in shares) | shares | 15,000,000 | 6,000,000 | |||
Unrecognized compensation cost | $ 200,000 | ||||
Vesting period | 1 year | ||||
Percentage of discount available to employees under ESPP | 15.00% | ||||
Expected dividend rate | 0.00% | 0.00% | 0.00% | ||
Company's common stock purchased by ESPP participants (in shares) | shares | 0 | 163,136 | 0 | ||
Grants made prior to 2012 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum term for stock options (in years) | 10 years | ||||
Grants made in 2012 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum term for stock options (in years) | 5 years | ||||
Performance Vesting Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Performance Vesting Stock Options | Tranche 1 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage per year of performance-vested options granted to management | 33.33% | ||||
Performance Vesting Stock Options | Tranche 2 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage per year of performance-vested options granted to management | 33.33% | ||||
Performance Vesting Stock Options | Tranche 3 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage per year of performance-vested options granted to management | 33.33% | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 400,000 | ||||
Weighted average period for total unrecognized compensation cost | 6 months | ||||
Vesting period | 1 year | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years |
Stock-Based Compensation Plan91
Stock-Based Compensation Plans and Arrangements - Black-Scholes Model Assumptions for Calculating Stock Option and ESPP Fair Values (Detail) - Stock Options | 12 Months Ended |
Dec. 31, 2014$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Risk-free interest rate (as a percentage) | 0.76% |
Expected volatility (as a percentage) | 26.00% |
Expected dividend rate (as a percentage) | 2.48% |
Expected life of the option (in years) | 2 years 10 months 18 days |
Weighted average fair value of stock purchase rights (in dollars per share) | $ 3.48 |
Stock-Based Compensation Plan92
Stock-Based Compensation Plans and Arrangements - Stock Option Activity (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Number of Options | |||
Outstanding at December 31, 2015 (in shares) | 11,910,976 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (3,000,047) | ||
Canceled (in shares) | (1,315,870) | ||
Outstanding at December 31, 2016 (in shares) | 7,595,059 | 11,910,976 | |
Exercisable at December 31, 2016 (in shares) | 7,589,682 | ||
Weighted Average Exercise Price per Share | |||
Outstanding at December 31, 2015 (in dollars per share) | $ 10.08 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 5.74 | ||
Canceled (in dollars per share) | 18.56 | ||
Outstanding at December 31, 2016 (in dollars per share) | 10.43 | $ 10.08 | |
Exercisable at December 31, 2016 (in dollars per share) | $ 6.13 | ||
Weighted Average Remaining Contractual Term | |||
Weighted Average Remaining Contractual Term, Outstanding, ending balance (in years) | 1 year 8 months 50 days | ||
Weighted Average Remaining Contractual Term, Exercisable, ending balance (in years) | 1 year 8 months 50 days | ||
Aggregate Intrinsic Value | |||
Aggregate Intrinsic Value, Outstanding, ending balance | $ 39,357 | ||
Aggregate Intrinsic Value, Exercisable, ending balance | 39,344 | ||
Total intrinsic value of options exercised | 9,300 | $ 13,700 | $ 11,400 |
Cash received from option exercises | 200 | ||
Tax benefit realized from exercise of stock options | $ 3,400 |
Stock-Based Compensation Plan93
Stock-Based Compensation Plans and Arrangements - Restricted Stock and Performance Stock Unit Activity (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Weighted Average Grant Date Fair Value | |||
Unrecognized compensation cost | $ 14.8 | ||
Weighted average period for total unrecognized compensation cost | 1 year 4 months 15 days | ||
Restricted Stock | |||
Number of Shares | |||
Non-vested at December 31, 2015 (in shares) | 86,174 | ||
Granted (in shares) | 120,879 | ||
Vested and converted to common stock (in shares) | (86,174) | ||
Canceled (in shares) | 0 | ||
Non-vested at December 31, 2016 (in shares) | 120,879 | 86,174 | |
Weighted Average Grant Date Fair Value | |||
Non-vested at December 31, 2015 (in dollars per share) | $ 8.94 | ||
Granted (in dollars per share) | 6.37 | ||
Vested (in dollars per share) | 8.94 | ||
Canceled (in dollars per share) | 0 | ||
Non-vested at December 31, 2016 (in dollars per share) | $ 6.37 | $ 8.94 | |
Fair value of shares vested | $ 0.8 | $ 0.5 | $ 0.4 |
Unrecognized compensation cost | $ 0.4 | ||
Weighted average period for total unrecognized compensation cost | 6 months | ||
Restricted Stock Units And Performance Stock Units | |||
Number of Shares | |||
Non-vested at December 31, 2015 (in shares) | 5,840,388 | ||
Granted (in shares) | 4,508,818 | ||
Vested and converted to common stock (in shares) | (2,798,828) | ||
Canceled (in shares) | (63,768) | ||
Non-vested at December 31, 2016 (in shares) | 7,486,610 | 5,840,388 | |
Weighted Average Grant Date Fair Value | |||
Non-vested at December 31, 2015 (in dollars per share) | $ 8.52 | ||
Granted (in dollars per share) | 5.95 | ||
Vested (in dollars per share) | 7.92 | ||
Canceled (in dollars per share) | 7.02 | ||
Non-vested at December 31, 2016 (in dollars per share) | $ 7.21 | $ 8.52 | |
Fair value of restricted stock units that vested and converted to common stock | $ 22.2 | $ 18.9 | $ 12.6 |
Unrecognized compensation cost | $ 14.3 | ||
Weighted average period for total unrecognized compensation cost | 1 year 4 months 24 days |
Stock-Based Compensation Plan94
Stock-Based Compensation Plans and Arrangements - Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 0.50% | 0.33% | 0.13% |
Expected volatility | 32.00% | 27.00% | 25.00% |
Expected dividend rate | 0.00% | 0.00% | 0.00% |
Expected life of the option (in years) | 1 year | 1 year | 1 year |
Weighted average fair value of stock purchase rights (in dollars per share) | $ 1.53 | $ 1.74 | $ 1.66 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation of Financial Instruments that are Marked-to-Market on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Assets | ||
Mortgage-backed securities | $ 208,603 | $ 195,391 |
Derivative instruments | 0 | 6,036 |
Fair Value Measurements Recurring | ||
Assets | ||
Mortgage-backed securities | 208,603 | 195,391 |
Derivative instruments | 7,808 | 15,314 |
Total | 216,411 | 210,705 |
Liabilities | ||
Derivative instruments | (25,937) | (30,497) |
Fair Value Measurements Recurring | Level 1 | ||
Assets | ||
Mortgage-backed securities | 0 | 0 |
Derivative instruments | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Derivative instruments | 0 | 0 |
Fair Value Measurements Recurring | Level 2 | ||
Assets | ||
Mortgage-backed securities | 208,603 | 195,391 |
Derivative instruments | 7,808 | 15,314 |
Total | 216,411 | 210,705 |
Liabilities | ||
Derivative instruments | (25,937) | (30,497) |
Fair Value Measurements Recurring | Level 3 | ||
Assets | ||
Mortgage-backed securities | 0 | 0 |
Derivative instruments | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Derivative instruments | $ 0 | $ 0 |
Fair value Measurements - Fair
Fair value Measurements - Fair Values of Financial Assets and Liabilities, Including Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Earning assets | ||
Loans held for investment, net, difference | $ 1,382,864 | $ 713,135 |
Tax indemnification receivable | 259,532 | 186,076 |
Derivative instruments | 0 | 6,036 |
Total earning assets, difference | 1,382,864 | 713,135 |
Interest-bearing liabilities | ||
Long-term borrowings, difference | 7,874 | 11,633 |
Total interest-bearing liabilities, difference | (31,565) | 14,636 |
Excess of net asset fair value over carrying value | 1,351,299 | 727,771 |
Certificates of Deposit | ||
Interest-bearing liabilities | ||
Certificates of deposits, difference | (39,439) | 3,003 |
Fair Value | ||
Earning assets | ||
Loans held for investment, net | 16,520,786 | 12,343,726 |
Cash and cash equivalents | 1,918,793 | 2,416,219 |
Available-for-sale investments | 208,603 | 195,391 |
Accrued interest receivable | 766,106 | 564,496 |
Tax indemnification receivable | 259,532 | 186,076 |
Derivative instruments | 7,808 | 15,314 |
Total | 19,681,628 | 15,721,222 |
Interest-bearing liabilities | ||
Short-term borrowings | 0 | 500,175 |
Long-term borrowings | 2,160,105 | 567,468 |
Accrued interest payable | 21,058 | 16,385 |
Derivative instruments | 25,937 | 30,497 |
Total interest-bearing liabilities | 15,681,529 | 12,599,229 |
Fair Value | Money-market and savings accounts | ||
Interest-bearing liabilities | ||
Deposits | 7,963,925 | 5,556,254 |
Fair Value | Certificates of Deposit | ||
Interest-bearing liabilities | ||
Deposits | 5,510,504 | 5,928,450 |
Carrying Value | ||
Earning assets | ||
Loans held for investment, net | 15,137,922 | 11,630,591 |
Cash and cash equivalents | 1,918,793 | 2,416,219 |
Available-for-sale investments | 208,603 | 195,391 |
Accrued interest receivable | 766,106 | 564,496 |
Tax indemnification receivable | 259,532 | 186,076 |
Derivative instruments | 7,808 | 15,314 |
Total | 18,298,764 | 15,008,087 |
Interest-bearing liabilities | ||
Short-term borrowings | 0 | 500,175 |
Long-term borrowings | 2,167,979 | 579,101 |
Accrued interest payable | 21,058 | 16,385 |
Derivative instruments | 25,937 | 30,497 |
Total interest-bearing liabilities | 15,649,964 | 12,613,865 |
Carrying Value | Money-market and savings accounts | ||
Interest-bearing liabilities | ||
Deposits | 7,963,925 | 5,556,254 |
Carrying Value | Certificates of Deposit | ||
Interest-bearing liabilities | ||
Deposits | $ 5,471,065 | $ 5,931,453 |
Arrangements with Navient Cor97
Arrangements with Navient Corporation Arrangements with Navient Corporation (Details) - USD ($) | Apr. 30, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 |
Related Party Transaction [Line Items] | ||||
Non-compete period | 5 years | |||
Deferred taxes | $ 283,000,000 | $ 9,180,000 | $ 81,588,000 | |
Remaining amount of indemnification | 116,000,000 | |||
Deferred tax asset discount | $ 27,000,000 | 116,000,000 | ||
Remaining balance of indemnification receivable in connection with the spin-off | 28,000,000 | |||
Private education loans | $ 14,251,675,000 | 10,596,437,000 | ||
Minimum days past due for spin off loan purchase | 90 days | |||
Period of hardship forbearance | 6 months | |||
Private education loans | $ 14,113,409,000 | 10,515,505,000 | ||
Interest income from third party | 300,000 | 600,000 | $ 5,700,000 | |
Gain (Loss) resulting from loans sold | 0 | 0 | 35,800,000 | |
Write-down to fair value for loans sold to third party | 6,000,000 | 7,600,000 | 53,500,000 | |
Split Loans | ||||
Related Party Transaction [Line Items] | ||||
Private education loans | 67,000,000 | |||
Participated loans | ||||
Related Party Transaction [Line Items] | ||||
Loans sold to third party | 15,700,000 | $ 27,000,000 | $ 804,700,000 | |
FFELP Loans | ||||
Related Party Transaction [Line Items] | ||||
Private education loans | $ 67,000,000 | |||
Minimum | ||||
Related Party Transaction [Line Items] | ||||
Agreements with Navient, period of term (or less) | 2 years | |||
Maximum | ||||
Related Party Transaction [Line Items] | ||||
Agreements with Navient, period of term (or less) | 3 years |
Regulatory Capital - Well Capit
Regulatory Capital - Well Capitalized Regulatory Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Actual Amount | ||
Tier 1 Capital (to Average Assets) | $ 2,011,583 | $ 1,734,315 |
Tier 1 Capital (to Risk-Weighted Assets) | 2,011,583 | 1,734,315 |
Total Capital (to Risk-Weighted Assets) | 2,197,997 | 1,848,528 |
Tier 1 Capital (to Average Assets) | $ 2,011,583 | $ 1,734,315 |
Actual Ratio | ||
Tier 1 Capital (to Average Assets) | 12.60% | 14.40% |
Tier 1 Capital (to Risk-Weighted Assets) | 12.60% | 14.40% |
Total Capital (to Risk-Weighted Assets) | 13.80% | 15.40% |
Tier 1 Capital (to Average Assets) | 11.10% | 12.30% |
Well Capitalized Regulatory Requirements, Amount | ||
Tier 1 Capital (to Average Assets) | $ 1,038,638 | $ 781,638 |
Tier 1 Capital (to Risk-Weighted Assets) | 1,278,323 | 962,017 |
Total Capital (to Risk-Weighted Assets) | 1,597,904 | 1,202,521 |
Tier 1 Capital (to Average Assets) | $ 907,565 | $ 704,979 |
Well Capitalized Regulatory Requirements, Ratio | ||
Tier 1 Capital (to Average 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 ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Sallie Mae Bank | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Dividends | $ 0 | $ 0 | $ 0 |
Defined Contribution Plans (Det
Defined Contribution Plans (Details) - Sallie Mae 401(k) Savings Plan - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | ||
Jan. 31, 2013 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Defined Contribution Plan Disclosure [Line Items] | ||||
Requisite service period | 6 months | 1 month | ||
Type 1 of defined benefit contribution (up to) | 3.00% | |||
Type 2 of defined contribution plan | 2.00% | |||
Percent of core employer contribution | 1.00% | |||
Employer contribution amount | $ 4.4 | $ 3.8 | $ 3.1 | |
Maximum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer matching contribution percentage | 100.00% | |||
Minimum | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Employer matching contribution percentage | 50.00% |
Commitments, Contingencies a101
Commitments, Contingencies and Guarantees - Additional Information (Detail) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($)attorney_general | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual obligation | $ 1,700 |
Other liabilities reserve | $ 1.7 |
Loss emergence period | 1 year |
FDIC civil monetary penalties | $ 3.3 |
Contingency refund (up to) | $ 30 |
Number of state attorney generals | attorney_general | 2 |
Income Taxes - Reconciliations
Income Taxes - Reconciliations of Statutory U.S. Federal Income Tax Rates to Our Effective Tax Rate for Continuing Operations (Detail) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory rate | 35.00% | 35.00% | 35.00% |
State tax, net of federal benefit | 3.10% | 3.00% | 2.90% |
Impact of state rate change on net deferred tax liabilities, net of federal benefit | (0.50%) | 0.50% | 4.40% |
State, valuation allowance adjustments on net operating losses | 1.00% | (0.20%) | (4.00%) |
Unrecognized tax benefits, U.S. federal and state, net of federal benefit | 1.60% | (0.50%) | 4.80% |
Other, net | (0.60%) | (0.30%) | (1.20%) |
Effective tax rate | 39.60% | 37.50% | 41.90% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Statutory U.S. federal rate | 35.00% | 35.00% | 35.00% | |
Operating loss carryforwards, valuation allowance | $ 88,400 | $ 83,700 | ||
Unrecognized tax benefits | 152,581 | 47,109 | $ 59,405 | $ 7,344 |
Unrecognized tax benefits recognition impact on effective tax rate | 120,000 | |||
Interest on income taxes accrued net of related benefit | 20,200 | 7,000 | 5,900 | |
Interest on income tax expense net of related tax benefit | 5,100 | $ 1,400 | $ 2,300 | |
State and Local Jurisdiction | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Operating loss carryforwards | $ 12,900 | |||
Minimum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Combination of subsidiaries (in years) | 3 years | |||
Maximum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Combination of subsidiaries (in years) | 4 years |
Income Taxes - Components of Pr
Income Taxes - Components of Provision for Income Tax Expense (Benefit) (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Current provision: | |||||||||||
Federal | $ 228,505 | $ 215,950 | $ 137,573 | ||||||||
State | 24,336 | 26,057 | 43,282 | ||||||||
Total current provision | 252,841 | 242,007 | 180,855 | ||||||||
Deferred (benefit)/provision: | |||||||||||
Federal | (89,518) | (69,546) | (40,370) | ||||||||
State | 786 | (7,681) | (518) | ||||||||
Total deferred (benefit)/provision | (88,732) | (77,227) | (40,888) | ||||||||
Provision for income tax expense | $ 43,122 | $ 47,557 | $ 34,555 | $ 38,875 | $ 54,915 | $ 17,985 | $ 60,158 | $ 31,722 | $ 164,109 | $ 164,780 | $ 139,967 |
Income Taxes - Schedule of Defe
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Apr. 30, 2014 |
Deferred tax assets: | |||
Loan reserves | $ 72,125 | $ 45,082 | |
Stock-based compensation plans | 16,471 | 16,939 | |
Deferred revenue | 793 | 209 | |
Operating loss and credit carryovers | 8,371 | 16,106 | |
Unrealized losses | 5,364 | 9,949 | |
Accrued expenses not currently deductible | 13,605 | 10,696 | |
Unrecorded tax benefits | 5,702 | 15,251 | |
Other | 10,844 | 9,871 | |
Total deferred tax assets | 133,275 | 124,103 | |
Deferred tax liabilities: | |||
Gains on repurchased debt | 126,403 | 190,936 | |
Fixed assets | 6,831 | 6,237 | |
Acquired intangible assets | 6,288 | 6,724 | |
Other | 2,933 | 1,794 | |
Total deferred tax liabilities | 142,455 | 205,691 | |
Net deferred tax liabilities | $ (9,180) | $ (81,588) | $ (283,000) |
Income Taxes - Summary of Chang
Income Taxes - Summary of Changes in Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 47,109 | $ 59,405 | $ 7,344 |
Increases resulting from tax positions taken during a prior period | 110,894 | 3,456 | 45,184 |
Decreases resulting from tax positions taken during a prior period | (3,285) | (10,121) | 0 |
Increases resulting from tax positions taken during the current period | 817 | 3,447 | 7,713 |
Decreases related to settlements with taxing authorities | (123) | (7,481) | (236) |
Reductions related to the lapse of statute of limitations | (2,831) | (1,597) | (600) |
Unrecognized tax benefits at end of year | $ 152,581 | $ 47,109 | $ 59,405 |
Parent Only Statements - Balanc
Parent Only Statements - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 |
Assets | ||||
Cash and cash equivalents | $ 1,918,793 | $ 2,416,219 | $ 2,359,780 | $ 2,182,865 |
Tax indemnification receivable | 259,532 | 186,076 | ||
Other assets | 52,153 | 57,227 | ||
Total assets | 18,533,003 | 15,214,098 | ||
Liabilities | ||||
Income taxes payable, net | 184,324 | 166,662 | ||
Other liabilities | 141,934 | 108,746 | ||
Total liabilities | 16,185,945 | 13,117,775 | ||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | ||||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 436.6 million and 430.7 million shares issued, respectively | 87,327 | 86,136 | ||
Additional paid-in capital | 1,175,564 | 1,135,860 | ||
Accumulated other comprehensive loss (net of tax benefit of $5,364 and $9,949, respectively) | (8,671) | (16,059) | ||
Retained earnings | 595,322 | 366,609 | ||
Total SLM Corporation’s stockholders’ equity before treasury stock | 2,414,542 | 2,137,546 | ||
Less: Common stock held in treasury at cost: 7.7 million and 4.4 million shares, respectively | (67,484) | (41,223) | ||
Total equity | 2,347,058 | 2,096,323 | 1,829,958 | 1,166,143 |
Total liabilities and equity | 18,533,003 | 15,214,098 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 292,277 | 282,036 | $ 434,245 | $ 0 |
Total investments in subsidiaries (primarily Sallie Mae Bank) | 2,042,015 | 1,810,567 | ||
Tax indemnification receivable | 259,532 | 186,076 | ||
Due from subsidiaries, net | 31,834 | 21,396 | ||
Other assets | 1,561 | 1,352 | ||
Total assets | 2,627,219 | 2,301,427 | ||
Liabilities | ||||
Income taxes payable, net | 256,556 | 189,215 | ||
Payable due to Navient | 2,823 | 1,990 | ||
Other liabilities | 20,782 | 13,899 | ||
Total liabilities | 280,161 | 205,104 | ||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | ||||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 436.6 million and 430.7 million shares issued, respectively | 87,327 | 86,136 | ||
Additional paid-in capital | 1,175,564 | 1,135,860 | ||
Accumulated other comprehensive loss (net of tax benefit of $5,364 and $9,949, respectively) | (8,671) | (16,059) | ||
Retained earnings | 595,322 | 366,609 | ||
Total SLM Corporation’s stockholders’ equity before treasury stock | 2,414,542 | 2,137,546 | ||
Less: Common stock held in treasury at cost: 7.7 million and 4.4 million shares, respectively | (67,484) | (41,223) | ||
Total equity | 2,347,058 | 2,096,323 | ||
Total liabilities and equity | 2,627,219 | 2,301,427 | ||
Parent Company | Series A Preferred Stock | ||||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | ||||
Preferred stock issued | 165,000 | 165,000 | ||
Parent Company | Series B Preferred Stock | ||||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | ||||
Preferred stock issued | $ 400,000 | $ 400,000 |
Parent Only Statements - Bal108
Parent Only Statements - Balance Sheets - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Condensed Financial Statements, Captions [Line Items] | ||
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) | 436,600,000 | 430,700,000 |
Accumulated other comprehensive loss tax benefit | $ (5,364) | $ (9,949) |
Common stock held in treasury (in shares) | 4,400,000 | 4,400,000 |
Series A Preferred Stock | ||
Condensed Financial Statements, Captions [Line Items] | ||
Preferred stock, stated value (in dollars per share) | $ 50 | $ 50 |
Series B Preferred Stock | ||
Condensed Financial Statements, Captions [Line Items] | ||
Preferred stock, stated value (in dollars per share) | 100 | 100 |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
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) | 436,600,000 | 430,700,000 |
Accumulated other comprehensive loss tax benefit | $ 5,364 | $ 9,949 |
Common stock held in treasury (in shares) | 7,700,000 | 4,400,000 |
Parent Company | Series A Preferred Stock | ||
Condensed Financial Statements, Captions [Line Items] | ||
Preferred stock, stated value (in dollars per share) | $ 50 | $ 50 |
Preferred stock, shares issued (in shares) | 3,300,000 | 3,300,000 |
Parent Company | Series B Preferred Stock | ||
Condensed Financial Statements, Captions [Line Items] | ||
Preferred stock, stated value (in dollars per share) | $ 100 | $ 100 |
Preferred stock, shares issued (in shares) | 4,000,000 | 4,000,000 |
Parent Only Statements - Statem
Parent Only Statements - Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest income | $ 1,077,246 | $ 831,118 | $ 674,294 | ||||||||
Interest expense | 185,908 | 128,619 | 95,815 | ||||||||
Net interest income | $ 245,434 | $ 223,275 | $ 212,766 | $ 209,863 | $ 187,846 | $ 175,442 | $ 168,257 | $ 170,954 | 891,338 | 702,499 | 578,479 |
Other income | 13,235 | 21,598 | 13,683 | 21,028 | 12,561 | 10,455 | 10,912 | 8,007 | 69,544 | 41,935 | 39,921 |
Operating expenses | 98,036 | 99,709 | 94,777 | 92,885 | 85,245 | 92,864 | 89,799 | 81,187 | 385,407 | 349,095 | 274,881 |
Income tax benefit | 43,122 | 47,557 | 34,555 | 38,875 | 54,915 | 17,985 | 60,158 | 31,722 | 164,109 | 164,780 | 139,967 |
Net income | 250,327 | 274,284 | 193,785 | ||||||||
Preferred stock dividends | 5,506 | 5,316 | 5,243 | 5,139 | 4,989 | 4,913 | 4,870 | 4,823 | 21,204 | 19,595 | 12,933 |
Net income attributable to SLM Corporation common stock | $ 64,736 | $ 51,649 | $ 51,962 | $ 60,776 | $ 84,856 | $ 40,811 | $ 86,146 | $ 42,876 | 229,123 | 254,689 | 181,286 |
Parent Company | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest income | 5,367 | 6,414 | 4,980 | ||||||||
Interest expense | 0 | 0 | 0 | ||||||||
Net interest income | 5,367 | 6,414 | 4,980 | ||||||||
Other income | 9,396 | (239) | 1,097 | ||||||||
Operating expenses | 32,553 | 36,141 | 36,967 | ||||||||
Loss before income tax benefit and equity in net income from subsidiaries | (17,790) | (29,966) | (30,890) | ||||||||
Income tax benefit | (2,839) | (8,612) | (13,196) | ||||||||
Equity in net income from subsidiaries (primarily Sallie Mae Bank) | 265,278 | 295,638 | 211,479 | ||||||||
Net income | 250,327 | 274,284 | 193,785 | ||||||||
Preferred stock dividends | 21,204 | 19,595 | 12,933 | ||||||||
Net income attributable to SLM Corporation common stock | $ 229,123 | $ 254,689 | $ 180,852 |
Parent Only Statements - Sta110
Parent Only Statements - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 250,327 | $ 274,284 | $ 193,785 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Interest income on tax indemnification receivable | (12,283) | (5,398) | (5,904) |
Decrease in tax indemnification receivable | 59,633 | 59,633 | 44,724 |
Increase in other assets | (47,162) | (18,070) | (24,959) |
Decrease in income taxes payable, net | (18,997) | 56,813 | (221,222) |
Increase (decrease) in payable due to entity that is a subsidiary of Navient | 553 | (6,774) | 8,764 |
Increase in other liabilities | 14,562 | (14,731) | (2,652) |
Total adjustments | (451,259) | (365,487) | (630,558) |
Total net cash used in operating activities | (200,932) | (91,203) | (436,773) |
Cash flows from investing activities: | |||
Net cash provided by (used in) investing activities | (3,331,041) | (1,847,509) | (1,388,371) |
Cash flows from financing activities: | |||
Special cash contribution from Navient | 0 | 0 | 472,718 |
Excess tax (expense) benefit from exercise of stock-based awards | (1,650) | 6,140 | 3,271 |
Preferred stock dividends paid | (21,204) | (19,595) | (12,933) |
Net cash (used in) provided by financing activities | 3,034,547 | 1,995,151 | 2,002,059 |
Net (decrease) increase in cash and cash equivalents | (497,426) | 56,439 | 176,915 |
Cash and cash equivalents at beginning of year | 2,416,219 | 2,359,780 | 2,182,865 |
Cash and cash equivalents at end of year | 1,918,793 | 2,416,219 | 2,359,780 |
Parent Company | |||
Cash flows from operating activities: | |||
Net income | 250,327 | 274,284 | 193,785 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Undistributed earnings of subsidiaries | (265,278) | (295,638) | (211,479) |
Interest income on tax indemnification receivable | (12,283) | (5,398) | (5,904) |
Decrease (increase) in investment in subsidiaries, net | 63,222 | (103,602) | 278,365 |
Decrease in tax indemnification receivable | 59,633 | 59,633 | 44,724 |
(Increase) decrease in due from subsidiaries, net | (10,438) | 11,012 | (32,408) |
Increase in other assets | (8,972) | (14,366) | (5,447) |
Decrease in income taxes payable, net | (53,465) | (54,907) | (312,770) |
Increase (decrease) in payable due to entity that is a subsidiary of Navient | 553 | (6,774) | 8,764 |
Increase in other liabilities | 8,856 | 1,402 | 14,398 |
Total adjustments | (218,172) | (408,638) | (221,757) |
Total net cash used in operating activities | 32,155 | (134,354) | (27,972) |
Cash flows from investing activities: | |||
Net cash provided by (used in) investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Special cash contribution from Navient | 0 | 0 | 472,718 |
Excess tax (expense) benefit from exercise of stock-based awards | (710) | 1,740 | 2,432 |
Preferred stock dividends paid | (21,204) | (19,595) | (12,933) |
Net cash (used in) provided by financing activities | (21,914) | (17,855) | 462,217 |
Net (decrease) increase in cash and cash equivalents | 10,241 | (152,209) | 434,245 |
Cash and cash equivalents at beginning of year | 282,036 | 434,245 | 0 |
Cash and cash equivalents at end of year | $ 292,277 | $ 282,036 | $ 434,245 |
Selected Quarterly Financial111
Selected Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income, net | $ 245,434 | $ 223,275 | $ 212,766 | $ 209,863 | $ 187,846 | $ 175,442 | $ 168,257 | $ 170,954 | $ 891,338 | $ 702,499 | $ 578,479 |
Less: provisions for credit losses | 43,226 | 41,784 | 41,793 | 32,602 | 30,382 | 27,497 | 15,558 | 16,618 | 159,405 | 90,055 | 85,529 |
Net interest income after provisions for credit losses | 202,208 | 181,491 | 170,973 | 177,261 | 157,464 | 147,945 | 152,699 | 154,336 | 731,933 | 612,444 | 492,950 |
Gains on sales of loans, net | 230 | 0 | 0 | 0 | 58,484 | 0 | 76,874 | 0 | |||
(Losses) gains on derivative and hedging activities, net | (4,114) | 1,368 | 2,142 | (354) | 953 | (547) | 1,602 | 3,292 | |||
Other income | 13,235 | 21,598 | 13,683 | 21,028 | 12,561 | 10,455 | 10,912 | 8,007 | 69,544 | 41,935 | 39,921 |
Total operating expenses | 98,036 | 99,709 | 94,777 | 92,885 | 85,245 | 92,864 | 89,799 | 81,187 | 385,407 | 349,095 | 274,881 |
Acquired intangible asset amortization expense | 159 | 226 | 261 | 260 | 370 | 370 | 370 | 370 | |||
Restructuring and other reorganization expenses | (913) | 910 | 744 | 4,657 | 0 | 5,398 | 38,311 | ||||
Income tax benefit | 43,122 | 47,557 | 34,555 | 38,875 | 54,915 | 17,985 | 60,158 | 31,722 | 164,109 | 164,780 | 139,967 |
Net income | 70,242 | 56,965 | 57,205 | 65,915 | 89,845 | 45,724 | 91,016 | 47,699 | 250,327 | 274,284 | 194,219 |
Preferred stock dividends | 5,506 | 5,316 | 5,243 | 5,139 | 4,989 | 4,913 | 4,870 | 4,823 | 21,204 | 19,595 | 12,933 |
Net income attributable to SLM Corporation common stock | $ 64,736 | $ 51,649 | $ 51,962 | $ 60,776 | $ 84,856 | $ 40,811 | $ 86,146 | $ 42,876 | $ 229,123 | $ 254,689 | $ 181,286 |
Basic earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.15 | $ 0.12 | $ 0.12 | $ 0.14 | $ 0.2 | $ 0.1 | $ 0.2 | $ 0.1 | $ 0.54 | $ 0.60 | $ 0.43 |
Diluted earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.15 | $ 0.12 | $ 0.12 | $ 0.14 | $ 0.2 | $ 0.09 | $ 0.2 | $ 0.1 | $ 0.53 | $ 0.59 | $ 0.42 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Feb. 22, 2017 | Feb. 08, 2017 | Feb. 25, 2016 | Jul. 30, 2015 | Dec. 31, 2015 | Oct. 12, 2016 | Jul. 21, 2016 | May 26, 2016 | Oct. 27, 2015 | Apr. 23, 2015 | Dec. 19, 2014 |
Private Education Loans | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Loans sold to third parties | $ 631,000,000 | $ 701,000,000 | $ 738,000,000 | ||||||||
Private education loan term accounted for as a secured financing | 714,000,000 | $ 674,000,000 | $ 657,000,000 | $ 551,000,000 | |||||||
Gross profit raised from loans sold to third parties | $ 623,000,000 | ||||||||||
Residual Certificates | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Ownership interest percentage on asset-backed financing | 100.00% | 100.00% | 100.00% | ||||||||
Subsequent Event | Private Education Loans | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Loans sold to third parties | $ 772,000,000 | ||||||||||
Private education loan term accounted for as a secured financing | $ 772,000,000 | ||||||||||
Subsequent Event | Residual Certificates | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Ownership interest percentage on asset-backed financing | 100.00% | ||||||||||
Subsequent Event | Private Education Loans, 2017 Term A | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Gross profit raised from loans sold to third parties | $ 768,000,000 | ||||||||||
Commercial Paper | ABCP borrowings | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Private education loan funding | $ 750,000,000 | $ 750,000,000 | |||||||||
Unused borrowing capacity fee (as a percent) | 0.40% | ||||||||||
Commercial Paper | Subsequent Event | ABCP borrowings | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Private education loan funding | $ 750,000,000 | ||||||||||
Minimum | Commercial Paper | ABCP borrowings | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Unused borrowing capacity fee (as a percent) | 0.35% | ||||||||||
Minimum | Commercial Paper | Subsequent Event | ABCP borrowings | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Unused borrowing capacity fee (as a percent) | 0.35% | ||||||||||
Maximum | Commercial Paper | ABCP borrowings | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Unused borrowing capacity fee (as a percent) | 0.45% | ||||||||||
Maximum | Commercial Paper | Subsequent Event | ABCP borrowings | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Unused borrowing capacity fee (as a percent) | 0.45% | ||||||||||
London Interbank Offered Rate (LIBOR) | Commercial Paper | ABCP borrowings | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Basis spread on variable rate | 0.90% | 0.80% | |||||||||
London Interbank Offered Rate (LIBOR) | Commercial Paper | Subsequent Event | ABCP borrowings | |||||||||||
Subsequent Event [Line Items] | |||||||||||
Basis spread on variable rate | 0.90% |