Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2017shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2017 |
Document Fiscal Year Focus | 2,017 |
Document Fiscal Period Focus | Q2 |
Trading Symbol | SLM |
Entity Registrant Name | SLM CORPORATION |
Entity Central Index Key | 1,032,033 |
Current Fiscal Year End Date | --12-31 |
Entity Filer Category | Large Accelerated Filer |
Entity Common Stock, Shares Outstanding (in shares) | 431,548,369 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and cash equivalents | $ 1,318,168 | $ 1,918,793 |
Available-for-sale investments at fair value (cost of $233,682 and $211,406, respectively) | 229,479 | 208,603 |
Loans held for investment (net of allowance for losses of $207,448 and $184,701, respectively) | 16,560,426 | 15,137,922 |
Restricted cash and investments | 62,466 | 53,717 |
Other interest-earning assets | 48,526 | 49,114 |
Accrued interest receivable | 926,270 | 766,106 |
Premises and equipment, net | 88,978 | 87,063 |
Tax indemnification receivable | 233,142 | 259,532 |
Other assets | 45,841 | 52,153 |
Total assets | 19,513,296 | 18,533,003 |
Liabilities | ||
Deposits | 13,794,815 | 13,435,667 |
Long-term borrowings | 2,872,231 | 2,167,979 |
Income taxes payable, net | 140,138 | 184,324 |
Upromise member accounts | 247,324 | 256,041 |
Other liabilities | 121,078 | 141,934 |
Total liabilities | 17,175,586 | 16,185,945 |
Commitments and contingencies | ||
Equity | ||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 441.8 million and 436.6 million shares issued, respectively | 88,373 | 87,327 |
Additional paid-in capital | 1,205,037 | 1,175,564 |
Accumulated other comprehensive loss (net of tax benefit of $4,833 and $5,364, respectively) | (7,852) | (8,671) |
Retained earnings | 750,973 | 595,322 |
Total SLM Corporation stockholders’ equity before treasury stock | 2,436,531 | 2,414,542 |
Less: Common stock held in treasury at cost: 10.3 million and 7.7 million shares, respectively | (98,821) | (67,484) |
Total equity | 2,337,710 | 2,347,058 |
Total liabilities and equity | 19,513,296 | 18,533,003 |
Series A Preferred Stock | ||
Equity | ||
Preferred stock value outstanding | 0 | 165,000 |
Series B Preferred Stock | ||
Equity | ||
Preferred stock value outstanding | $ 400,000 | $ 400,000 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Amortized cost | $ 233,682 | $ 211,406 |
Allowance for loan losses | 207,448 | 184,701 |
Tax benefit for accumulated other comprehensive (loss) income | $ (4,833) | $ (5,364) |
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) | 441,800,000 | 436,600,000 |
Common stock held in treasury (in shares) | 10,300,000 | 7,700,000 |
Series A Preferred Stock | ||
Preferred stock, stated value (in dollars per share) | $ 0 | $ 50 |
Preferred stock shares outstanding (in shares) | 0 | 3,300,000 |
Series B Preferred Stock | ||
Preferred stock, stated value (in dollars per share) | $ 100 | $ 100 |
Preferred stock shares outstanding (in shares) | 4,000,000 | 4,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest income: | ||||
Loans | $ 336,739 | $ 251,675 | $ 661,496 | $ 496,905 |
Investments | 2,201 | 2,371 | 4,344 | 4,962 |
Cash and cash equivalents | 3,155 | 1,195 | 5,743 | 2,829 |
Total interest income | 342,095 | 255,241 | 671,583 | 504,696 |
Interest expense: | ||||
Deposits | 50,730 | 35,409 | 95,583 | 69,423 |
Interest expense on short-term borrowings | 1,194 | 2,060 | 2,430 | 4,223 |
Interest expense on long-term borrowings | 20,278 | 5,006 | 35,601 | 8,421 |
Total interest expense | 72,202 | 42,475 | 133,614 | 82,067 |
Net interest income | 269,893 | 212,766 | 537,969 | 422,629 |
Less: provisions for credit losses | 50,215 | 41,793 | 75,511 | 74,395 |
Net interest income after provisions for credit losses | 219,678 | 170,973 | 462,458 | 348,234 |
Non-interest income: | ||||
(Losses) gains on derivatives and hedging activities, net | (3,609) | 2,142 | (8,987) | 1,788 |
Other income | 10,629 | 13,683 | 21,975 | 34,711 |
Total non-interest income | 7,020 | 15,825 | 12,988 | 36,499 |
Non-interest expenses: | ||||
Compensation and benefits | 51,007 | 44,570 | 106,471 | 94,779 |
FDIC assessment fees | 6,622 | 4,277 | 13,851 | 8,453 |
Other operating expenses | 53,622 | 45,930 | 93,606 | 84,430 |
Total operating expenses | 111,251 | 94,777 | 213,928 | 187,662 |
Acquired intangible asset amortization expense | 117 | 261 | 234 | 521 |
Total non-interest expenses | 111,368 | 95,038 | 214,162 | 188,183 |
Income before income tax expense | 115,330 | 91,760 | 261,284 | 196,550 |
Income tax expense | 44,713 | 34,555 | 95,724 | 73,430 |
Net income | 70,617 | 57,205 | 165,560 | 123,120 |
Preferred stock dividends | 3,974 | 5,243 | 9,549 | 10,382 |
Net income attributable to SLM Corporation common stock | $ 66,643 | $ 51,962 | $ 156,011 | $ 112,738 |
Basic earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.15 | $ 0.12 | $ 0.36 | $ 0.26 |
Average common shares outstanding (in shares) | 431,245 | 427,942 | 430,572 | 427,526 |
Diluted earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.15 | $ 0.12 | $ 0.35 | $ 0.26 |
Average common and common equivalent shares outstanding (in shares) | 438,115 | 431,796 | 438,424 | 431,349 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 70,617 | $ 57,205 | $ 165,560 | $ 123,120 |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) on investments | 167 | 1,293 | (1,400) | 4,317 |
Unrealized gains (losses) on cash flow hedges | (2,029) | (8,732) | 2,750 | (33,106) |
Total unrealized gains (losses) | (1,862) | (7,439) | 1,350 | (28,789) |
Income tax (expense) benefit | 701 | 2,855 | (531) | 10,995 |
Other comprehensive income (loss), net of tax (expense) benefit | (1,161) | (4,584) | 819 | (17,794) |
Total comprehensive income | $ 69,456 | $ 52,621 | $ 166,379 | $ 105,326 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Series A Preferred Stock | Series B Preferred Stock | Preferred Stock | Preferred StockSeries A Preferred Stock | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained EarningsSeries A Preferred Stock | Retained EarningsSeries B Preferred Stock |
Beginning Balance (in shares) at Dec. 31, 2015 | 7,300,000 | 426,303,244 | (4,374,190) | |||||||||
Beginning Balance, shares issued (in shares) at Dec. 31, 2015 | 430,677,434 | |||||||||||
Beginning Balance at Dec. 31, 2015 | $ 2,096,323 | $ 565,000 | $ 86,136 | $ (41,223) | $ 1,135,860 | $ (16,059) | $ 366,609 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 123,120 | 123,120 | ||||||||||
Other comprehensive income (loss), net of tax | (17,794) | (17,794) | ||||||||||
Total comprehensive income | 105,326 | |||||||||||
Cash dividends: | ||||||||||||
Cash dividends, preferred stock | $ (5,750) | $ (4,632) | $ (5,750) | $ (4,632) | ||||||||
Dividend equivalent units related to employee stock-based compensation plans | $ 0 | 400 | (400) | |||||||||
Issuance of common shares (in shares) | 3,166,474 | 3,166,474 | ||||||||||
Issuance of common shares | $ 3,857 | $ 633 | 3,224 | |||||||||
Tax benefit related to employee stock-based compensation | (2,249) | (2,249) | ||||||||||
Stock-based compensation expense | 12,548 | 12,548 | ||||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (1,391,927) | (1,391,927) | ||||||||||
Shares repurchased related to employee stock-based compensation plans | (8,512) | $ (8,512) | ||||||||||
Ending Balance (in shares) at Jun. 30, 2016 | 7,300,000 | 428,077,791 | (5,766,117) | |||||||||
Ending Balance, shares issued (in shares) at Jun. 30, 2016 | 433,843,908 | |||||||||||
Ending Balance at Jun. 30, 2016 | 2,196,911 | $ 565,000 | $ 86,769 | $ (49,735) | 1,149,783 | (33,853) | 478,947 | |||||
Beginning Balance (in shares) at Dec. 31, 2016 | 7,300,000 | 428,903,559 | (7,728,920) | |||||||||
Beginning Balance, shares issued (in shares) at Dec. 31, 2016 | 436,632,479 | |||||||||||
Beginning Balance at Dec. 31, 2016 | 2,347,058 | $ 565,000 | $ 87,327 | $ (67,484) | 1,175,564 | (8,671) | 595,322 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 165,560 | 165,560 | ||||||||||
Other comprehensive income (loss), net of tax | 819 | 819 | ||||||||||
Total comprehensive income | 166,379 | |||||||||||
Cumulative effect of the new stock compensation standard | 165 | 429 | (264) | |||||||||
Cash dividends: | ||||||||||||
Cash dividends, preferred stock | (3,961) | $ (5,588) | $ (3,961) | $ (5,588) | ||||||||
Redemption of Series A Preferred Stock (in shares) | (3,300,000) | |||||||||||
Redemption of Series A Preferred Stock | $ (165,000) | $ (165,000) | ||||||||||
Dividend equivalent units related to employee stock-based compensation plans | $ 0 | 96 | (96) | |||||||||
Issuance of common shares (in shares) | 5,229,774 | 5,229,774 | ||||||||||
Issuance of common shares | $ 14,494 | $ 1,046 | 13,448 | |||||||||
Stock-based compensation expense | 15,500 | 15,500 | ||||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (2,584,964) | (2,584,964) | ||||||||||
Shares repurchased related to employee stock-based compensation plans | (31,337) | $ (31,337) | ||||||||||
Ending Balance (in shares) at Jun. 30, 2017 | 4,000,000 | 431,548,369 | (10,313,884) | |||||||||
Ending Balance, shares issued (in shares) at Jun. 30, 2017 | 441,862,253 | |||||||||||
Ending Balance at Jun. 30, 2017 | $ 2,337,710 | $ 400,000 | $ 88,373 | $ (98,821) | $ 1,205,037 | $ (7,852) | $ 750,973 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Series A Preferred Stock | ||
Preferred stock dividend rate (in dollars per share) | $ 1.74 | $ 0.87 |
Series B Preferred Stock | ||
Preferred stock dividend rate (in dollars per share) | $ 1.39 | $ 0.6 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Operating activities | ||
Net income | $ 165,560 | $ 123,120 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Provisions for credit losses | 75,511 | 74,395 |
Income tax expense | 95,724 | 71,181 |
Amortization of brokered deposit placement fee | 4,339 | 5,179 |
Amortization of ABCP Facility upfront fee | 668 | 502 |
Amortization of deferred loan origination costs and fees, net | 4,069 | 2,720 |
Net amortization of discount on investments | 872 | 793 |
Interest income on tax indemnification receivable | (3,427) | (4,066) |
Depreciation of premises and equipment | 5,365 | 2,295 |
Amortization of acquired intangibles | 234 | 261 |
Stock-based compensation expense | 15,500 | 12,548 |
Unrealized losses (gains) on derivatives and hedging activities, net | 10,833 | (835) |
Other adjustments to net income, net | 2,998 | 1,101 |
Changes in operating assets and liabilities: | ||
Increase in accrued interest receivable | (324,684) | (277,582) |
Decrease in restricted cash and investments, net | 4,004 | 2,053 |
Increase in other interest-earning assets | 588 | 1,290 |
Decrease in tax indemnification receivable | 29,817 | 29,816 |
Increase in other assets | (20,586) | (14,591) |
Decrease in income taxes payable, net | (139,775) | (149,193) |
Increase in accrued interest payable | 3,275 | 2,924 |
Decrease in payable due to entity that is a subsidiary of Navient | (1,244) | (808) |
(Decrease) increase in other liabilities | (35,267) | 7,976 |
Total adjustments | (271,186) | (232,041) |
Total net cash used in operating activities | (105,626) | (108,921) |
Investing activities | ||
Loans acquired and originated | (2,347,344) | (2,234,556) |
Net proceeds from sales of loans held for investment | 3,472 | 5,736 |
Proceeds from claim payments | 24,907 | 33,892 |
Net decrease in loans held for investment | 980,234 | 624,040 |
Increase in restricted cash and investments - variable interest entities | (12,753) | (8,369) |
Purchases of available-for-sale securities | (40,124) | (23,362) |
Proceeds from sales and maturities of available-for-sale securities | 16,976 | 15,492 |
Total net cash used in investing activities | (1,374,632) | (1,587,127) |
Financing activities | ||
Brokered deposit placement fee | (5,329) | (2,875) |
Net decrease in certificates of deposit | 308,069 | 56,272 |
Net increase in other deposits | 51,447 | 322,959 |
Issuance costs for collateralized borrowings | 0 | (386) |
Borrowings collateralized by loans in securitization trusts - issued | 767,244 | 499,393 |
Borrowings collateralized by loans in securitization trusts - repaid | (262,567) | (40,618) |
Issuance costs for unsecured debt offering | (423) | 0 |
Unsecured debt issued | 197,000 | 0 |
Borrowings under ABCP Facility | 0 | 26,325 |
Repayment of borrowings under ABCP Facility | 0 | (526,500) |
Fees paid on ABCP Facility | (1,259) | (1,444) |
Redemption of Preferred Stock Series A | (165,000) | 0 |
Preferred stock dividends paid | (9,549) | (10,382) |
Net cash provided by financing activities | 879,633 | 322,744 |
Net decrease in cash and cash equivalents | (600,625) | (1,373,304) |
Cash and cash equivalents at beginning of period | 1,918,793 | 2,416,219 |
Cash and cash equivalents at end of period | 1,318,168 | 1,042,915 |
Cash disbursements made for: | ||
Interest | 121,601 | 75,165 |
Income taxes paid | 139,828 | 149,173 |
Income taxes refunded | $ (833) | $ (86) |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying unaudited, consolidated financial statements of SLM Corporation (“Sallie Mae,” “SLM,” the “Company,” “we,” or “us”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all the information and footnotes required by GAAP for complete consolidated financial statements. The consolidated financial statements include the accounts of SLM Corporation and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results for the year ending December 31, 2017 or for any other period. These unaudited financial statements should be read in conjunction with the audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Form 10-K”). Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. We consolidate any variable interest entity (“VIE”) where we have determined we are the primary beneficiary. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. Allowance for 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. Please refer to Note 2, “Significant Accounting Policies - Allowance for Loan Losses - Allowance for Private Education Loan Losses” in the 2016 Form 10-K for a description of certain information we use in estimating allowance amounts for Private Education Loans (as hereafter defined). Troubled Debt Restructurings (“TDRs”) 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. We generally consider a loan that is in full principal and interest repayment status which has received more than three months of forbearance in a 24-month period to be a TDR; however, during the first nine months after a loan has entered full principal and interest repayment status, we do not count up to the first six months of forbearance received during that period against the three-month policy limit. A loan also 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 27 percent and 26 percent of the loans granted forbearance as of June 30, 2017 and December 31, 2016, respectively, were classified as TDRs due to their forbearance status. 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 6, “Derivative Financial Instruments”), exclusive of accrued interest and cash collateral held or pledged. The Chicago Mercantile Exchange (“CME”) and the London Clearing House (“LCH”) made amendments to their respective rules that resulted in the prospective accounting treatment of certain daily payments historically treated as the posting of collateral (variation margin payments) being considered as the legal settlement of the outstanding exposure of the derivative. While the CME rule, which became effective in January 2017, is mandatory, the LCH allows a clearing member institution the option to adopt the rule changes on an individual contract or portfolio basis. As of June 30, 2017 , $4.6 billion notional of our derivative contracts were cleared on the CME and $0.7 billion were cleared on the LCH. The derivative contracts cleared through the CME and LCH represent 80.5 percent and 12.5 percent , respectively, of our total notional derivative contracts of $5.8 billion at June 30, 2017 . Under this new rule, for derivatives cleared through the CME, the net gain (loss) position includes the variation margin amounts as settlement of the derivative and not collateral against the fair value of the derivative. Interest income (expense) related to variation margin on derivatives that are not designated as hedging instruments or are designated as fair value relationships is recognized as a gain (loss) rather than as interest income (expense). Changes in fair value for derivatives not designated as hedging instruments will be presented as realized gains (losses). Our LCH clearing member institution has elected not to adopt the new rule change. Therefore, there has been no change to the accounting for the derivatives cleared through the LCH, and variation margin payments required to be exchanged based on the fair value of these derivatives remain accounted for as collateral. 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 pricing models consider 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 recorded immediately in the consolidated statements of income. Cash flow hedges are designed to hedge our exposure to variability in cash flows related to variable-rate deposits. The assessment of the hedge’s effectiveness is performed at inception and on an ongoing basis, generally using regression testing. For hedges of a pool of liabilities, tests are performed to demonstrate the similarity of individual instruments of the pool. When it is determined that a derivative is not currently an effective hedge, ineffectiveness is recognized for the full change in fair value of the derivative with no offsetting amount from the hedged item since the last time it was effective. If it is also determined the hedge will not be effective in the future, we discontinue the hedge accounting prospectively and begin amortization of any basis adjustments that exist related to the hedged item. Stock-Based Compensation We recognize stock-based compensation cost in our consolidated statements of income using the fair value method. Under this method, we determine the fair value of the stock-based compensation at the time of the grant and recognize the resulting compensation expense over the vesting period of the stock-based grant. On January 1, 2017, we adopted the Financial Accounting Standards Board’s (“FASB’s”) Accounting Standards Update (“ASU”) 2016-09 “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This new guidance requires that we record all excess tax benefits/deficiencies related to the settlement of employee stock-based compensation to the income tax expense line item on our consolidated statements of income, under a modified retrospective basis. In the six months ended June 30, 2017, we recorded a $6.5 million benefit in income tax expense because of this new standard. We previously recorded the excess tax benefits/deficiencies to the additional paid-in capital line item on our consolidated balance sheets. Under the new guidance, we also elected the option to no longer apply a forfeiture rate to our stock-based compensation expense, but to record forfeitures when they occur, and, as a result, under a modified retrospective basis we recorded a cumulative effect of the new stock compensation standard in total equity of $0.2 million , net of tax, in the first quarter of 2017. |
Loans Held for Investment
Loans Held for Investment | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Loans Held for Investment | Loans Held for Investment Loans held for investment consist of Private Education Loans, FFELP Loans and Personal Loans. We use “Private Education Loans” to mean education loans to students or their families that are not made, insured or guaranteed by any state or federal government. Private Education Loans do not include loans insured or guaranteed under the previously existing Federal Family Education Loan Program (“FFELP”). We use “Personal Loans” to mean those unsecured loans to individuals that may be used for non-educational purposes. We began to opportunistically acquire Personal Loans in the fourth quarter of 2016. 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 may be fixed rate or may carry a variable interest rate indexed to LIBOR. As of June 30, 2017 and December 31, 2016, 81.3 percent and 81.4 percent , respectively, of all of our Private Education Loans were indexed to LIBOR. We provide incentives for customers to include a cosigner on the loan, and the vast majority of loans in our portfolio are cosigned. We also provide total cost incentives for customers to make payments while in school. FFELP Loans are insured as to their principal and accrued interest in the event of default, subject to a risk sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement on all qualifying claims. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement on all qualifying claims. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement on all qualifying claims. Loans held for investment are summarized as follows: June 30, December 31, 2017 2016 Private Education Loans $ 15,679,457 $ 14,251,675 Deferred origination costs 48,905 44,206 Allowance for loan losses (205,024 ) (182,472 ) Total Private Education Loans, net 15,523,338 14,113,409 FFELP Loans 967,237 1,010,908 Unamortized acquisition costs, net 2,767 2,941 Allowance for loan losses (1,606 ) (2,171 ) Total FFELP Loans, net 968,398 1,011,678 Personal Loans 69,508 12,893 Allowance for loan losses (818 ) (58 ) Total Personal Loans, net 68,690 12,835 Loans held for investment, net $ 16,560,426 $ 15,137,922 The estimated weighted average life of education loans in our portfolio was approximately 5.6 years and 6.0 years at June 30, 2017 and December 31, 2016 , respectively. The average balance and the respective weighted average interest rates of loans in our portfolio are summarized as follows: Three Months Ended June 30, 2017 2016 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 15,687,803 8.33 % $ 12,217,890 7.98 % FFELP Loans 980,478 3.87 1,076,419 3.48 Personal Loans 60,910 9.28 — — Total portfolio $ 16,729,191 $ 13,294,309 Six Months Ended June 30, 2017 2016 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 15,569,337 8.30 % $ 12,017,799 8.00 % FFELP Loans 991,740 3.78 1,089,836 3.45 Personal Loans 48,894 9.19 — — Total portfolio $ 16,609,971 $ 13,107,635 |
Allowance for Loan Losses
Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses Our provision for loan losses represents the periodic expense of maintaining an allowance sufficient to absorb incurred probable losses in the held-for-investment loan portfolios. The evaluation of the allowance for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. We believe the allowance for loan losses is appropriate to cover probable losses incurred in the loan portfolios. We began acquiring Personal Loans in the fourth quarter of 2016. Allowance for Loan Losses Metrics Allowance for Loan Losses Three Months Ended June 30, 2017 FFELP Loans Private Education Loans Personal Loans Total Allowance for Loan Losses Beginning balance $ 1,637 $ 185,103 $ 346 $ 187,086 Total provision 228 49,166 492 49,886 Net charge-offs: Charge-offs (259 ) (32,728 ) (20 ) (33,007 ) Recoveries — 4,396 — 4,396 Net charge-offs (259 ) (28,332 ) (20 ) (28,611 ) Loan sales (1) — (913 ) — (913 ) Ending Balance $ 1,606 $ 205,024 $ 818 $ 207,448 Allowance: Ending balance: individually evaluated for impairment $ — $ 95,177 $ — $ 95,177 Ending balance: collectively evaluated for impairment $ 1,606 $ 109,847 $ 818 $ 112,271 Loans: Ending balance: individually evaluated for impairment $ — $ 803,456 $ — $ 803,456 Ending balance: collectively evaluated for impairment $ 967,237 $ 14,876,001 $ 69,508 $ 15,912,746 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.14 % 1.08 % 0.13 % Allowance as a percentage of the ending total loan balance 0.17 % 1.31 % 1.18 % Allowance as a percentage of the ending loans in repayment (2) 0.21 % 1.93 % 1.18 % Allowance coverage of net charge-offs (annualized) 1.55 1.81 10.23 Ending total loans, gross $ 967,237 $ 15,679,457 $ 69,508 Average loans in repayment (2) $ 757,186 $ 10,523,225 $ 61,439 Ending loans in repayment (2) $ 765,980 $ 10,615,105 $ 69,508 ____________ (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 Three Months Ended June 30, 2016 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 3,629 $ 122,620 $ 126,249 Total provision (985 ) 42,362 41,377 Net charge-offs: Charge-offs (347 ) (23,903 ) (24,250 ) Recoveries — 3,082 3,082 Net charge-offs (347 ) (20,821 ) (21,168 ) Loan sales (1) — (1,533 ) (1,533 ) Ending Balance $ 2,297 $ 142,628 $ 144,925 Allowance: Ending balance: individually evaluated for impairment $ — $ 63,370 $ 63,370 Ending balance: collectively evaluated for impairment $ 2,297 $ 79,258 $ 81,555 Loans: Ending balance: individually evaluated for impairment $ — $ 400,969 $ 400,969 Ending balance: collectively evaluated for impairment $ 1,061,517 $ 11,889,740 $ 12,951,257 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.18 % 1.05 % Allowance as a percentage of the ending total loan balance 0.22 % 1.16 % Allowance as a percentage of the ending loans in repayment (2) 0.30 % 1.78 % Allowance coverage of net charge-offs (annualized) 1.65 1.71 Ending total loans, gross $ 1,061,517 $ 12,290,709 Average loans in repayment (2) $ 786,818 $ 7,894,340 Ending loans in repayment (2) $ 773,321 $ 8,029,034 ____________ (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 Six Months Ended June 30, 2017 FFELP Loans Private Education Loans Personal Loans Total Allowance for Loan Losses Beginning balance $ 2,171 $ 182,472 $ 58 $ 184,701 Total provision (88 ) 75,986 780 76,678 Net charge-offs: Charge-offs (477 ) (58,955 ) (20 ) (59,452 ) Recoveries — 7,655 — 7,655 Net charge-offs (477 ) (51,300 ) (20 ) (51,797 ) Loan sales (1) — (2,134 ) — (2,134 ) Ending Balance $ 1,606 $ 205,024 $ 818 $ 207,448 Allowance: Ending balance: individually evaluated for impairment $ — $ 95,177 $ — $ 95,177 Ending balance: collectively evaluated for impairment $ 1,606 $ 109,847 $ 818 $ 112,271 Loans: Ending balance: individually evaluated for impairment $ — $ 803,456 $ — $ 803,456 Ending balance: collectively evaluated for impairment $ 967,237 $ 14,876,001 $ 69,508 $ 15,912,746 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.12 % 0.99 % 0.08 % Allowance as a percentage of the ending total loan balance 0.17 % 1.31 % 1.18 % Allowance as a percentage of the ending loans in repayment (2) 0.21 % 1.93 % 1.18 % Allowance coverage of net charge-offs (annualized) 1.68 2.00 20.45 Ending total loans, gross $ 967,237 $ 15,679,457 $ 69,508 Average loans in repayment (2) $ 765,347 $ 10,375,463 $ 47,654 Ending loans in repayment (2) $ 765,980 $ 10,615,105 $ 69,508 ____________ (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 Six Months Ended June 30, 2016 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 3,691 $ 108,816 $ 112,507 Total provision (664 ) 76,201 75,537 Net charge-offs: Charge-offs (730 ) (42,907 ) (43,637 ) Recoveries — 4,125 4,125 Net charge-offs (730 ) (38,782 ) (39,512 ) Loan sales (1) — (3,607 ) (3,607 ) Ending Balance $ 2,297 $ 142,628 $ 144,925 Allowance: Ending balance: individually evaluated for impairment $ — $ 63,370 $ 63,370 Ending balance: collectively evaluated for impairment $ 2,297 $ 79,258 $ 81,555 Loans: Ending balance: individually evaluated for impairment $ — $ 400,969 $ 400,969 Ending balance: collectively evaluated for impairment $ 1,061,517 $ 11,889,740 $ 12,951,257 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.18 % 1.01 % Allowance as a percentage of the ending total loan balance 0.22 % 1.16 % Allowance as a percentage of the ending loans in repayment (2) 0.30 % 1.78 % Allowance coverage of net charge-offs (annualized) 1.57 1.84 Ending total loans, gross $ 1,061,517 $ 12,290,709 Average loans in repayment (2) $ 794,665 $ 7,695,889 Ending loans in repayment (2) $ 773,321 $ 8,029,034 ____________ (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. 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. The majority of our loans that are considered TDRs involve a temporary forbearance of payments and do not change the contractual interest rate of the loan. Approximately 27 percent and 26 percent of the loans granted forbearance as of June 30, 2017 and December 31, 2016 , respectively, have been classified as TDRs due to their forbearance status. For additional information, see Note 6, “Allowance for Loan Losses” in our 2016 Form 10-K. Within the Private Education Loan portfolio, loans greater than 90 days past due are considered to be nonperforming. FFELP Loans are at least 97 percent guaranteed as to their principal and accrued interest by the federal government in the event of default and, therefore, we do not deem FFELP Loans as nonperforming from a credit risk perspective at any point in their life cycle prior to claim payment, and continue to accrue interest on those loans through the date of claim. At June 30, 2017 and December 31, 2016 , all 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 June 30, 2017 TDR Loans $ 815,515 $ 803,456 $ 95,177 December 31, 2016 TDR Loans $ 620,991 $ 612,606 $ 86,930 The following table provides the average recorded investment and interest income recognized for our TDR loans. Three Months Ended 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 766,171 $ 14,310 $ 364,882 $ 6,697 Six Months Ended 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 718,727 $ 26,567 $ 332,292 $ 12,280 The following table provides information regarding the loan status and aging of TDR loans. June 30, December 31, 2017 2016 Balance % Balance % TDR loans in in-school/grace/deferment (1) $ 33,693 $ 24,185 TDR loans in forbearance (2) 98,710 71,851 TDR loans in repayment (3) and percentage of each status: Loans current 603,215 89.9 % 462,187 89.5 % Loans delinquent 31-60 days (4) 35,120 5.2 28,452 5.5 Loans delinquent 61-90 days (4) 20,170 3.0 17,326 3.4 Loans delinquent greater than 90 days (4) 12,548 1.9 8,605 1.6 Total TDR loans in repayment 671,053 100.0 % 516,570 100.0 % Total TDR loans, gross $ 803,456 $ 612,606 _____ (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 more than 60 days past due for this disclosure. Three Months Ended Three Months Ended Modified Loans (1) Charge-offs Payment- Default Modified Loans (1) Charge-offs Payment- Default TDR Loans $ 134,489 $ 12,215 $ 23,679 $ 92,782 $ 5,464 $ 21,388 Six Months Ended Six Months Ended Modified Loans (1) Charge-offs Payment- Default Modified Loans (1) Charge-offs Payment- Default TDR Loans $ 246,695 $ 22,738 $ 49,113 $ 153,848 $ 10,432 $ 47,089 _____ (1) Represents the principal balance of loans that have been modified during the period and resulted in a TDR. Key Credit Quality Indicators For Private Education Loans, the key credit quality indicators are FICO scores, the existence of a cosigner, the loan status and loan seasoning. The FICO scores are assessed at 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. Private Education Loans Credit Quality Indicators June 30, 2017 December 31, 2016 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance Cosigners: With cosigner $ 14,079,677 90 % $ 12,816,512 90 % Without cosigner 1,599,780 10 1,435,163 10 Total $ 15,679,457 100 % $ 14,251,675 100 % FICO at Original Approval (2) : Less than 670 $ 1,016,829 6 % $ 920,132 6 % 670-699 2,314,571 15 2,092,722 15 700-749 5,128,665 33 4,639,958 33 Greater than or equal to 750 7,219,392 46 6,598,863 46 Total $ 15,679,457 100 % $ 14,251,675 100 % Seasoning (3) : 1-12 payments $ 4,291,633 27 % $ 3,737,110 26 % 13-24 payments 2,931,945 19 2,841,107 20 25-36 payments 1,965,406 13 1,839,764 13 37-48 payments 990,248 6 917,633 7 More than 48 payments 792,829 5 726,106 5 Not yet in repayment 4,707,396 30 4,189,955 29 Total $ 15,679,457 100 % $ 14,251,675 100 % (1) Balance represents gross Private Education Loans. (2) Represents the higher credit score of the cosigner or the borrower. (3) 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. Key Credit Quality Indicators For Personal Loans, the key credit quality indicators are FICO scores 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 Personal Loan portfolio stratified by key credit quality indicators. Personal Loans Credit Quality Indicators June 30, 2017 December 31, 2016 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance FICO at Original Approval: Less than 670 $ 5,367 8 % $ 1,189 9 % 670-699 20,137 29 3,139 24 700-749 31,974 46 5,678 44 Greater than or equal to 750 12,030 17 2,888 23 Total $ 69,508 100 % $ 12,894 100 % Seasoning (2) : 0-12 payments $ 69,508 100 % $ 12,894 100 % 13-24 payments — — — — 25-36 payments — — — — 37-48 payments — — — — More than 48 payments — — — — Total $ 69,508 100 % $ 12,894 100 % (1) Balance represents gross Personal Loans. (2) Number of months in active repayment for which a scheduled payment was due. The following table provides information regarding the loan status of our Private Education Loans. Loans in repayment include loans making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Private Education Loans June 30, December 31, 2017 2016 Balance % Balance % Loans in-school/grace/deferment (1) $ 4,707,396 $ 4,189,955 Loans in forbearance (2) 356,956 351,962 Loans in repayment and percentage of each status: Loans current 10,385,289 97.8 % 9,509,394 97.9 % Loans delinquent 31-60 days (3) 132,108 1.3 124,773 1.3 Loans delinquent 61-90 days (3) 67,371 0.6 51,423 0.5 Loans delinquent greater than 90 days (3) 30,337 0.3 24,168 0.3 Total Private Education Loans in repayment 10,615,105 100.0 % 9,709,758 100.0 % Total Private Education Loans, gross 15,679,457 14,251,675 Private Education Loans deferred origination costs 48,905 44,206 Total Private Education Loans 15,728,362 14,295,881 Private Education Loans allowance for losses (205,024 ) (182,472 ) Private Education Loans, net $ 15,523,338 $ 14,113,409 Percentage of Private Education Loans in repayment 67.7 % 68.1 % Delinquencies as a percentage of Private Education Loans in repayment 2.2 % 2.1 % Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance 3.3 % 3.5 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. Accrued Interest Receivable The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans greater than 90 days past due as compared to our allowance for uncollectible interest. The allowance for uncollectible interest exceeds the amount of accrued interest on our 90 days past due Private Education Loan portfolio for all periods presented. Private Education Loan Accrued Interest Receivable Total Interest Receivable Greater Than 90 Days Past Due Allowance for Uncollectible Interest June 30, 2017 $ 913,080 $ 1,107 $ 4,522 December 31, 2016 $ 739,847 $ 845 $ 2,898 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits The following table summarizes total deposits at June 30, 2017 and December 31, 2016 . June 30, December 31, 2017 2016 Deposits - interest bearing $ 13,793,200 $ 13,434,990 Deposits - non-interest bearing 1,615 677 Total deposits $ 13,794,815 $ 13,435,667 Interest bearing deposits as of June 30, 2017 and December 31, 2016 consisted of retail non-maturity savings deposits, retail and brokered non-maturity money market deposits (“MMDAs”) and brokered and retail certificates of deposit (“CDs”). Interest bearing deposits include deposits from Educational 529 and Health Savings plans that diversify our funding sources and add deposits we consider to be core. These and other large omnibus accounts, aggregating the deposits of many individual depositors, represented $5.4 billion of our deposit total as of June 30, 2017 . 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 $ 2.2 million and $2.6 million in the three months ended June 30, 2017 and 2016, respectively, and placement fee expense of $ 4.3 million and $5.2 million in the six months ended June 30, 2017 and 2016, respectively. Fees paid to third-party brokers related to brokered CDs were $ 3.2 million and $0.1 million for the three months ended June 30, 2017 and 2016, respectively, and fees paid to third-party brokers related to brokered CDs were $5.3 million and $2.9 million for the six months ended June 30, 2017 and 2016, respectively. Interest bearing deposits at June 30, 2017 and December 31, 2016 are summarized as follows: June 30, 2017 December 31, 2016 Amount Qtr.-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 7,167,473 1.55 % $ 7,129,404 1.22 % Savings 847,714 0.99 834,521 0.84 Certificates of deposit 5,778,013 1.73 5,471,065 1.41 Deposits - interest bearing $ 13,793,200 $ 13,434,990 ____________ (1) Includes the effect of interest rate swaps in effective hedge relationships. As of June 30, 2017 and December 31, 2016 , there were $ 259.6 million and $304.5 million, respectively, of deposits exceeding Federal Deposit Insurance Corporation (“FDIC”) insurance limits. Accrued interest on deposits was $21.8 million and $18.9 million at June 30, 2017 and December 31, 2016 , respectively. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Outstanding borrowings consist of unsecured debt and secured borrowings issued through our term asset-backed securitization (“ABS”) program and our asset-backed commercial paper (“ABCP”) funding facility (the “ABCP Facility”). The following table summarizes our borrowings at June 30, 2017 and December 31, 2016 . June 30, 2017 December 31, 2016 Short-Term Long-Term Total Short-Term Long-Term Total Unsecured borrowings: Unsecured debt $ — $ 196,740 $ 196,740 $ — $ — $ — Total unsecured borrowings — 196,740 196,740 — — — Secured borrowings: Private Education Loan term securitizations $ — $ 2,675,491 $ 2,675,491 $ — $ 2,167,979 $ 2,167,979 ABCP Facility — — — — — — Total secured borrowings — 2,675,491 2,675,491 — 2,167,979 2,167,979 Total $ — $ 2,872,231 $ 2,872,231 $ — $ 2,167,979 $ 2,167,979 Short-term Borrowings Asset-Backed Commercial Paper Funding Facility On February 25, 2016 and February 22, 2017, we amended and extended the maturity of our ABCP Facility. The amended ABCP Facility is a $ 750 million ABCP Facility, in which we no longer hold a participation interest. As a result, the full $ 750 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). At June 30, 2017 , there were no borrowings outstanding under the ABCP Facility. We expect to amend and extend the ABCP Facility on an annual basis. Long-term Borrowings Unsecured Debt On April 5, 2017, we issued an unsecured debt offering of $200 million of 5.125 percent Senior Notes due April 5, 2022 at par. Secured Financings On February 8, 2017, we executed our $772 million SMB Private Education Loan Trust 2017-A term ABS transaction, which was 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. 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 0.93 percent . At June 30, 2017 , $772 million of our Private Education Loans were encumbered as a result of this transaction. Secured Financings at Issuance 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 loan 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 loan and accrued interest amount securitized at inception in 2016 $ 2,107,042 2017-A February 2017 $ 772,000 1-month LIBOR plus 0.93% 4.27 Total notes issued in 2017 $ 772,000 Total loan and accrued interest amount securitized at inception in 2017 $ 856,253 ____________ (1) Represents LIBOR equivalent cost of funds for floating and fixed rate bonds, excluding issuance costs. Consolidated Funding Vehicles We consolidate our financing entities that are VIEs as a result of our being the entities’ primary beneficiary. As a result, these financing VIEs are accounted for as secured borrowings. We consolidate the following financing VIEs as of June 30, 2017 and December 31, 2016 , respectively: June 30, 2017 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 securitizations $ — $ 2,675,491 $ 2,675,491 $ 3,172,113 $ 57,370 $ 224,768 $ 3,454,251 ABCP Facility — — — — — — — Total $ — $ 2,675,491 $ 2,675,491 $ 3,172,113 $ 57,370 $ 224,768 $ 3,454,251 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 securitizations $ — $ 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 ____ (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 million at June 30, 2017 . The interest rate we are charged on these lines of credit is priced at Fed Funds plus a spread at the time of borrowing, and is payable daily. We did not utilize these lines of credit in the three or six months ended June 30, 2017 or in the year ended December 31, 2016 . We established an account at the Federal Reserve Bank (“FRB”) to meet eligibility requirements for access to the Primary Credit borrowing facility at the FRB’s Discount Window (the “Window”). The Primary Credit borrowing facility is a lending program available to depository institutions that are in generally sound financial condition. All borrowings at the Window must be fully collateralized. We can pledge to the FRB asset-backed and mortgage-backed securities, as well as FFELP Loans and Private Education Loans, as collateral for borrowings at the Window. Generally, collateral value is assigned based on the estimated fair value of the pledged assets. At June 30, 2017 and December 31, 2016 , the value of our pledged collateral at the FRB totaled $2.5 billion and $2.6 billion, respectively. The interest rate charged to us is the discount rate set by the FRB. We did not utilize this facility in the three or six months ended June 30, 2017 or in the year ended December 31, 2016 . |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments We maintain an overall interest rate risk management strategy that incorporates the use of derivative instruments to reduce the economic effect of interest rate changes. Our goal is to manage interest rate sensitivity by modifying the repricing frequency and underlying index characteristics of certain balance sheet assets or 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 balance sheet positions will appreciate or depreciate in market value or create variability in cash flows. Income or loss on the derivative instruments linked to the hedged item will generally offset the effect of this unrealized appreciation or depreciation or volatility in cash flows for the period the item is being hedged. We view this strategy as a prudent management of interest rate risk. Please refer to Note 11, “Derivative Financial Instruments” in our 2016 Form 10-K for a full discussion of our risk management strategy. Although we use derivatives to reduce the risk of interest rate changes, the use of derivatives does expose us to both market and credit risk. Market risk is the chance of financial loss resulting from changes in interest rates and market liquidity. Credit risk is the risk that a counterparty will not perform its obligations under a contract and it is limited to the loss of the fair value gain in a derivative that the counterparty owes us less collateral held and 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 reputable 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. We refer to this as the “net position.” When there is a net negative exposure, we consider our exposure to the counterparty and the net position to be zero. Title VII of the Dodd-Frank Act Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) requires all standardized derivatives, including most interest rate swaps, to be submitted for clearing to central counterparties to reduce counterparty risk. The CME and the LCH made amendments to their respective rules that resulted in the prospective accounting treatment of certain daily variation margin payments being considered as the legal settlement of the outstanding exposure of the derivative instead of the posting of collateral. The CME rule changes, which became effective in January 2017, result in all variation margin payments on derivatives cleared through the CME being accounted for as legal settlement, while the LCH allows the clearing member institution the option to adopt the rule changes on an individual contract or portfolio basis. As of June 30, 2017 , $4.6 billion notional of our derivative contracts were cleared on the CME and $0.7 billion were cleared on the LCH. The derivative contracts cleared through the CME and LCH represent 80.5 percent and 12.5 percent , respectively, of our total notional derivative contracts of $5.8 billion at June 30, 2017 . Under this new rule, for derivatives cleared through the CME, the net gain (loss) position includes the variation margin amounts as settlement of the derivative and not collateral against the fair value of the derivative. Interest income (expense) related to variation margin on derivatives that are not designated as hedging instruments or are designated as fair value relationships is recognized as a gain (loss) rather than as interest income (expense). Changes in fair value for derivatives not designated as hedging instruments will be presented as realized gains (losses). Our LCH clearing member institution has elected not to adopt the new rule change. Therefore, there has been no change to the accounting for the derivatives cleared through the LCH, and variation margin payments required to be exchanged based on the fair value of those derivatives remain accounted for as collateral. 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 June 30, 2017 and December 31, 2016, we had a net positive exposure (derivative gain positions to us, less collateral held by us and plus collateral posted with counterparties) related to derivatives of $38.3 million and $44.6 million, respectively. Summary of Derivative Financial Statement Impact The following tables summarize the fair values and notional amounts of all derivative instruments at June 30, 2017 and December 31, 2016 , and their impact on earnings and other comprehensive income for the six months ended June 30, 2017 and 2016. Please refer to Note 11, “Derivative Financial Instruments” in our 2016 Form 10-K for a full discussion of cash flow hedges, fair value hedges, and trading activities. The net fair value of derivative instruments as of June 30, 2017 was a liability of $10.9 million , compared to the net fair value as of December 31, 2016 liability of $18.1 million . The change in the net fair value reflects a $5.1 million decrease in fair value offset by variation margin amounts of $12.3 million . The net position as of June 30, 2017 was $36.7 million , compared to $30.0 million as of December 31, 2016. The change in the net position reflects a $5.1 million decrease in fair value, $6.0 million decrease in collateral held and pledged (for contracts other than those cleared through the CME), offset by variation margin impacts of $17.8 million . Impact of Derivatives on the Consolidated Balance Sheet Cash Flow Hedges Fair Value Hedges Trading Total June 30, December 31, June 30, December June 30, December June 30, December 2017 2016 2017 2016 2017 2016 2017 2016 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ 326 $ — $ — $ 7,808 $ — $ — $ 326 $ 7,808 Derivative Liabilities: (2) Interest rate swaps Interest rate (8,476 ) (14,463 ) (2,648 ) (10,398 ) (128 ) (1,076 ) (11,252 ) (25,937 ) Total net derivatives $ (8,150 ) $ (14,463 ) $ (2,648 ) $ (2,590 ) $ (128 ) $ (1,076 ) $ (10,926 ) $ (18,129 ) ___________ (1) Except for instruments cleared through the CME, 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. The net position includes the variation margin as legal settlement of the derivative contract for instruments cleared with the CME. (2) The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities June 30, December 31, June 30, December 31, 2017 2016 2017 2016 Gross position (1) $ 326 $ 7,808 $ (11,252 ) $ (25,937 ) Impact of master netting agreement (326 ) (7,808 ) 326 7,808 Derivative values with impact of master netting agreements (as carried on balance sheet) — — (10,926 ) (18,129 ) Cash collateral (held) pledged (2) — — 47,616 48,134 Net position $ — $ — $ 36,690 $ 30,005 __________ (1) Except for instruments cleared with the CME, gross position amounts are exclusive of accrued interest and collateral held and pledged. (2) Cash collateral (held) pledged excludes amounts that represent legal settlement of the derivative contracts. Cash Flow Fair Value Trading Total June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, 2017 2016 2017 2016 2017 2016 2017 2016 Notional Values Interest rate swaps $ 996,458 $ 1,054,688 $ 4,071,595 $ 3,628,062 $ 694,776 $ 494,638 $ 5,762,829 $ 5,177,388 Impact of Derivatives on the Consolidated Statements of Income Three Months Ended Six Months Ended 2017 2016 2017 2016 Fair Value Hedges Interest rate swaps: Hedge ineffectiveness realized gains (losses) recorded in earnings (1) $ (3,711 ) $ 1,218 $ (7,878 ) $ (1,199 ) Realized gains (losses) recorded in interest expense 2,881 7,391 7,428 14,650 Total $ (830 ) $ 8,609 $ (450 ) $ 13,451 Cash Flow Hedges Interest rate swaps: Hedge ineffectiveness losses recorded in earnings (1) $ (75 ) $ (403 ) $ (147 ) $ (681 ) Realized losses recorded in interest expense (2,669 ) (4,586 ) (6,008 ) (9,207 ) Total $ (2,744 ) $ (4,989 ) $ (6,155 ) $ (9,888 ) Trading Interest rate swaps: Interest reclassification $ (101 ) $ 672 $ (20 ) $ 1,360 Realized gains (losses) recorded in earnings 278 655 (942 ) 2,308 Total (1) 177 1,327 (962 ) 3,668 Total $ (3,397 ) $ 4,947 $ (7,567 ) $ 7,231 ________ (1) Amounts included in “(losses) gains on derivatives and hedging activities, net” in the consolidated statements of income. Impact of Derivatives on the Statements of Changes in Stockholders’ Equity Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Amount of gain (loss) recognized in other comprehensive income (loss) $ (4,698 ) $ (13,318 ) $ (3,258 ) $ (42,313 ) Less: amount of gain (loss) reclassified in interest expense (1) (2,669 ) (4,586 ) (6,008 ) (9,207 ) Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax benefit (expense) $ (2,029 ) $ (8,732 ) $ 2,750 $ (33,106 ) ___________ (1) Amounts included in “realized gains (losses) recorded in interest expense” in the “Impact of Derivatives on the Consolidated Statements of Income” table. Cash Collateral As of June 30, 2017 , cash collateral held and pledged excludes amounts that represent legal settlement of the derivative contracts held with CME. Cash collateral held related to derivative exposure between us and our derivatives counterparties was $0.9 million and $1.0 million at June 30, 2017 and December 31, 2016 , 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 $48.5 million and $49.1 million at June 30, 2017 and December 31, 2016 , respectively. Collateral pledged is recorded in “Other interest-earning assets” on the consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock On May 5, 2017, we redeemed, with the proceeds of our unsecured debt offering, the outstanding 3.3 million shares of our 6.97 percent Cumulative Redeemable Preferred Stock, Series A (the “Series A Preferred Stock”). The Series A Preferred Stock was redeemed at a price of $50.00 per share, plus accrued and unpaid dividends from May 1, 2017 to, but excluding, the May 5, 2017 redemption date. Common Stock The following table summarizes our common share repurchases and issuances. Three Months Ended Six Months Ended (Shares and per share amounts in actuals) 2017 2016 2017 2016 Shares repurchased related to employee stock-based compensation plans (1)(2) 981,477 263,218 2,584,964 1,391,927 Average purchase price per share $ 12.39 $ 6.68 $ 12.12 $ 6.12 Common shares issued (3) 1,491,057 425,495 5,229,774 3,166,474 __________________ (1) Comprised of shares withheld from stock option exercises and vesting of restricted stock for employees’ tax withholding obligations and shares tendered by employees to satisfy option exercise costs. (2) At the present time, we do not intend to initiate a publicly announced share repurchase program. (3) Common shares issued under our various compensation and benefit plans. The closing price of our common stock on June 30, 2017 was $11.50 . |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share (“EPS”) are calculated using the weighted average number of shares of common stock outstanding during each period. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows. Three Months Ended Six Months Ended June 30, June 30, (In thousands, except per share data) 2017 2016 2017 2016 Numerator: Net income $ 70,617 $ 57,205 $ 165,560 $ 123,120 Preferred stock dividends 3,974 5,243 9,549 10,382 Net income attributable to SLM Corporation common stock $ 66,643 $ 51,962 $ 156,011 $ 112,738 Denominator: Weighted average shares used to compute basic EPS 431,245 427,942 430,572 427,526 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units and Employee Stock Purchase Plan (“ESPP”) (1)(2) 6,870 3,854 7,852 3,823 Weighted average shares used to compute diluted EPS 438,115 431,796 438,424 431,349 Basic earnings per common share attributable to SLM Corporation $ 0.15 $ 0.12 $ 0.36 $ 0.26 Diluted earnings per common share attributable to SLM Corporation $ 0.15 $ 0.12 $ 0.35 $ 0.26 ________________ (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method. (2) For the three months ended June 30, 2017 and 2016, securities covering approximately 0 and 1 million shares, respectively, and for the six months ended June 30, 2017 and 2016, securities covering approximately 0 and 4 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We use estimates of fair value in applying various accounting standards for our financial statements. We categorize our fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. For additional information regarding our policies for determining fair value and the hierarchical framework, see Note 2, “Significant Accounting Policies - Fair Value Measurement” in our 2016 Form 10-K. During the three and six months ended June 30, 2017 , there were no significant transfers of financial instruments between levels or changes in our methodology or assumptions used to value our financial instruments. The following table summarizes the valuation of our financial instruments that are marked to fair value on a recurring basis. Fair Value Measurements on a Recurring Basis June 30, 2017 December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Available-for-sale investments $ — $ 229,479 $ — $ 229,479 $ — $ 208,603 $ — $ 208,603 Derivative instruments — 326 — 326 — 7,808 — 7,808 Total $ — $ 229,805 $ — $ 229,805 $ — $ 216,411 $ — $ 216,411 Liabilities Derivative instruments $ — $ (11,252 ) $ — $ (11,252 ) $ — $ (25,937 ) $ — $ (25,937 ) Total $ — $ (11,252 ) $ — $ (11,252 ) $ — $ (25,937 ) $ — $ (25,937 ) The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. June 30, 2017 December 31, 2016 Fair Value Carrying Value Difference Fair Value Carrying Value Difference Earning assets Loans held for investment, net $ 18,349,005 $ 16,560,426 $ 1,788,579 $ 16,520,786 $ 15,137,922 $ 1,382,864 Cash and cash equivalents 1,318,168 1,318,168 — 1,918,793 1,918,793 — Available-for-sale investments 229,479 229,479 — 208,603 208,603 — Accrued interest receivable 926,270 926,270 — 766,106 766,106 — Tax indemnification receivable 233,142 233,142 — 259,532 259,532 — Derivative instruments 326 326 — 7,808 7,808 — Total earning assets $ 21,056,390 $ 19,267,811 $ 1,788,579 $ 19,681,628 $ 18,298,764 $ 1,382,864 Interest-bearing liabilities Money-market and savings accounts $ 8,015,192 $ 8,015,192 $ — $ 7,963,925 $ 7,963,925 $ — Certificates of deposit 5,788,342 5,778,013 (10,329 ) 5,510,504 5,471,065 (39,439 ) Short-term borrowings — — — — — — Long-term borrowings 2,899,491 2,872,231 (27,260 ) 2,160,105 2,167,979 7,874 Accrued interest payable 27,114 27,114 — 21,058 21,058 — Derivative instruments 11,252 11,252 — 25,937 25,937 — Total interest-bearing liabilities $ 16,741,391 $ 16,703,802 $ (37,589 ) $ 15,681,529 $ 15,649,964 $ (31,565 ) Excess of net asset fair value over carrying value $ 1,750,990 $ 1,351,299 Please refer to Note 15, “Fair Value Measurements” in our 2016 Form 10-K for a full discussion of the methods and assumptions used to estimate the fair value of each class of financial instruments. |
Arrangements with Navient Corpo
Arrangements with Navient Corporation | 6 Months Ended |
Jun. 30, 2017 | |
Related Party Transactions [Abstract] | |
Arrangements with Navient Corporation | Arrangements with Navient Corporation In connection with the separation of Navient Corporation (“Navient”) from SLM (“the Spin-Off”), we entered into a separation and distribution agreement (the “Separation and Distribution Agreement”) and other ancillary agreements with Navient. Please refer to Note 16, “Arrangements with Navient Corporation” in our 2016 Form 10-K for a full discussion of these agreements. 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 Corporation (“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 Sallie Mae Bank, a Utah industrial bank subsidiary of the Company (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. • 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 June 30, 2017 was $87 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 June 30, 2017 , 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 was $118 million at June 30, 2017 . |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | Regulatory Capital The Bank is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material adverse effect on our business, results of operation and financial condition. Under the 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” Amount Ratio Amount Ratio As of June 30, 2017: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 2,199,979 12.5 % $ 1,139,897 > 6.5 % Tier 1 Capital (to Risk-Weighted Assets) $ 2,199,979 12.5 % $ 1,402,950 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 2,407,976 13.7 % $ 1,753,687 > 10.0 % Tier 1 Capital (to Average Assets) $ 2,199,979 11.5 % $ 955,156 > 5.0 % 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 % Bank Dividends The Bank is chartered under the laws of the State of Utah and its deposits are insured by the FDIC. The Bank’s ability to pay dividends is subject to the laws of Utah and the regulations of the FDIC. Generally, under Utah’s industrial bank laws and regulations as well as FDIC regulations, the Bank may pay dividends from its net profits without regulatory approval if, following the payment of the dividend, the Bank’s capital and surplus would not be impaired. The Bank paid no dividends for the three and six months ended June 30, 2017 and June 30, 2016 . |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 , we had $ 1.2 billion of outstanding contractual loan commitments which we expect to fund during the remainder of the 2017/2018 academic year. At June 30, 2017 , we had a $ 0.5 million reserve recorded in “Other Liabilities” to cover expected losses that we conclude are probable to occur during the one year loss emergence period on these unfunded commitments. Regulatory Matters On May 13, 2014, the Bank reached settlements with (a) the FDIC regarding disclosures and assessments of certain late fees, as well as compliance with the Servicemembers’ Civil Relief Act (“SCRA”) and (b) the Department of Justice (the “DOJ”) regarding compliance with the SCRA. In connection with the settlements, the Bank became 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 DOJ Consent Order (“the DOJ Consent Order”), which 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. On March 27, 2017, the Bank received confirmation from the FDIC that effective March 23, 2017, the FDIC terminated the FDIC Consent Order. The termination was issued with no conditions. The Bank continues to be in full compliance with the DOJ Consent Order, including policy and procedure updates. 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 (“CID”) from the Consumer Financial Protection Bureau (the “CFPB”) as part of the CFPB’s separate investigation relating to customer complaints, fees and charges assessed in connection with the servicing of student loans and related collection practices of pre-Spin-Off SLM 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 their 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. |
Significant Accounting Polici21
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited, consolidated financial statements of SLM Corporation (“Sallie Mae,” “SLM,” the “Company,” “we,” or “us”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all the information and footnotes required by GAAP for complete consolidated financial statements. The consolidated financial statements include the accounts of SLM Corporation and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and six months ended June 30, 2017 are not necessarily indicative of the results for the year ending December 31, 2017 or for any other period. These unaudited financial statements should be read in conjunction with the audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2016 (the “2016 Form 10-K”). |
Consolidation | Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. We consolidate any variable interest entity (“VIE”) where we have determined we are the primary beneficiary. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. |
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 at the reporting date based on a projection of estimated probable credit losses incurred in the portfolio. |
Troubled Debt Restructurings | Troubled Debt Restructurings (“TDRs”) 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. We generally consider a loan that is in full principal and interest repayment status which has received more than three months of forbearance in a 24-month period to be a TDR; however, during the first nine months after a loan has entered full principal and interest repayment status, we do not count up to the first six months of forbearance received during that period against the three-month policy limit. A loan also 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 27 percent and 26 percent of the loans granted forbearance as of June 30, 2017 and December 31, 2016, respectively, were classified as TDRs due to their forbearance status. |
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 6, “Derivative Financial Instruments”), exclusive of accrued interest and cash collateral held or pledged. The Chicago Mercantile Exchange (“CME”) and the London Clearing House (“LCH”) made amendments to their respective rules that resulted in the prospective accounting treatment of certain daily payments historically treated as the posting of collateral (variation margin payments) being considered as the legal settlement of the outstanding exposure of the derivative. While the CME rule, which became effective in January 2017, is mandatory, the LCH allows a clearing member institution the option to adopt the rule changes on an individual contract or portfolio basis. As of June 30, 2017 , $4.6 billion notional of our derivative contracts were cleared on the CME and $0.7 billion were cleared on the LCH. The derivative contracts cleared through the CME and LCH represent 80.5 percent and 12.5 percent , respectively, of our total notional derivative contracts of $5.8 billion at June 30, 2017 . Under this new rule, for derivatives cleared through the CME, the net gain (loss) position includes the variation margin amounts as settlement of the derivative and not collateral against the fair value of the derivative. Interest income (expense) related to variation margin on derivatives that are not designated as hedging instruments or are designated as fair value relationships is recognized as a gain (loss) rather than as interest income (expense). Changes in fair value for derivatives not designated as hedging instruments will be presented as realized gains (losses). Our LCH clearing member institution has elected not to adopt the new rule change. Therefore, there has been no change to the accounting for the derivatives cleared through the LCH, and variation margin payments required to be exchanged based on the fair value of these derivatives remain accounted for as collateral. 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 pricing models consider 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 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. On January 1, 2017, we adopted the Financial Accounting Standards Board’s (“FASB’s”) Accounting Standards Update (“ASU”) 2016-09 “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.” This new guidance requires that we record all excess tax benefits/deficiencies related to the settlement of employee stock-based compensation to the income tax expense line item on our consolidated statements of income, under a modified retrospective basis. In the six months ended June 30, 2017, we recorded a $6.5 million benefit in income tax expense because of this new standard. We previously recorded the excess tax benefits/deficiencies to the additional paid-in capital line item on our consolidated balance sheets. Under the new guidance, we also elected the option to no longer apply a forfeiture rate to our stock-based compensation expense, but to record forfeitures when they occur, and, as a result, under a modified retrospective basis we recorded a cumulative effect of the new stock compensation standard in total equity of $0.2 million , net of tax, in the first quarter of 2017. |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Loans held for investment | Loans held for investment are summarized as follows: June 30, December 31, 2017 2016 Private Education Loans $ 15,679,457 $ 14,251,675 Deferred origination costs 48,905 44,206 Allowance for loan losses (205,024 ) (182,472 ) Total Private Education Loans, net 15,523,338 14,113,409 FFELP Loans 967,237 1,010,908 Unamortized acquisition costs, net 2,767 2,941 Allowance for loan losses (1,606 ) (2,171 ) Total FFELP Loans, net 968,398 1,011,678 Personal Loans 69,508 12,893 Allowance for loan losses (818 ) (58 ) Total Personal Loans, net 68,690 12,835 Loans held for investment, net $ 16,560,426 $ 15,137,922 The average balance and the respective weighted average interest rates of loans in our portfolio are summarized as follows: Three Months Ended June 30, 2017 2016 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 15,687,803 8.33 % $ 12,217,890 7.98 % FFELP Loans 980,478 3.87 1,076,419 3.48 Personal Loans 60,910 9.28 — — Total portfolio $ 16,729,191 $ 13,294,309 Six Months Ended June 30, 2017 2016 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 15,569,337 8.30 % $ 12,017,799 8.00 % FFELP Loans 991,740 3.78 1,089,836 3.45 Personal Loans 48,894 9.19 — — Total portfolio $ 16,609,971 $ 13,107,635 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Allowance for credit losses and recorded investments in loans | Allowance for Loan Losses Metrics Allowance for Loan Losses Three Months Ended June 30, 2017 FFELP Loans Private Education Loans Personal Loans Total Allowance for Loan Losses Beginning balance $ 1,637 $ 185,103 $ 346 $ 187,086 Total provision 228 49,166 492 49,886 Net charge-offs: Charge-offs (259 ) (32,728 ) (20 ) (33,007 ) Recoveries — 4,396 — 4,396 Net charge-offs (259 ) (28,332 ) (20 ) (28,611 ) Loan sales (1) — (913 ) — (913 ) Ending Balance $ 1,606 $ 205,024 $ 818 $ 207,448 Allowance: Ending balance: individually evaluated for impairment $ — $ 95,177 $ — $ 95,177 Ending balance: collectively evaluated for impairment $ 1,606 $ 109,847 $ 818 $ 112,271 Loans: Ending balance: individually evaluated for impairment $ — $ 803,456 $ — $ 803,456 Ending balance: collectively evaluated for impairment $ 967,237 $ 14,876,001 $ 69,508 $ 15,912,746 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.14 % 1.08 % 0.13 % Allowance as a percentage of the ending total loan balance 0.17 % 1.31 % 1.18 % Allowance as a percentage of the ending loans in repayment (2) 0.21 % 1.93 % 1.18 % Allowance coverage of net charge-offs (annualized) 1.55 1.81 10.23 Ending total loans, gross $ 967,237 $ 15,679,457 $ 69,508 Average loans in repayment (2) $ 757,186 $ 10,523,225 $ 61,439 Ending loans in repayment (2) $ 765,980 $ 10,615,105 $ 69,508 ____________ (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 Three Months Ended June 30, 2016 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 3,629 $ 122,620 $ 126,249 Total provision (985 ) 42,362 41,377 Net charge-offs: Charge-offs (347 ) (23,903 ) (24,250 ) Recoveries — 3,082 3,082 Net charge-offs (347 ) (20,821 ) (21,168 ) Loan sales (1) — (1,533 ) (1,533 ) Ending Balance $ 2,297 $ 142,628 $ 144,925 Allowance: Ending balance: individually evaluated for impairment $ — $ 63,370 $ 63,370 Ending balance: collectively evaluated for impairment $ 2,297 $ 79,258 $ 81,555 Loans: Ending balance: individually evaluated for impairment $ — $ 400,969 $ 400,969 Ending balance: collectively evaluated for impairment $ 1,061,517 $ 11,889,740 $ 12,951,257 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.18 % 1.05 % Allowance as a percentage of the ending total loan balance 0.22 % 1.16 % Allowance as a percentage of the ending loans in repayment (2) 0.30 % 1.78 % Allowance coverage of net charge-offs (annualized) 1.65 1.71 Ending total loans, gross $ 1,061,517 $ 12,290,709 Average loans in repayment (2) $ 786,818 $ 7,894,340 Ending loans in repayment (2) $ 773,321 $ 8,029,034 ____________ (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 Six Months Ended June 30, 2017 FFELP Loans Private Education Loans Personal Loans Total Allowance for Loan Losses Beginning balance $ 2,171 $ 182,472 $ 58 $ 184,701 Total provision (88 ) 75,986 780 76,678 Net charge-offs: Charge-offs (477 ) (58,955 ) (20 ) (59,452 ) Recoveries — 7,655 — 7,655 Net charge-offs (477 ) (51,300 ) (20 ) (51,797 ) Loan sales (1) — (2,134 ) — (2,134 ) Ending Balance $ 1,606 $ 205,024 $ 818 $ 207,448 Allowance: Ending balance: individually evaluated for impairment $ — $ 95,177 $ — $ 95,177 Ending balance: collectively evaluated for impairment $ 1,606 $ 109,847 $ 818 $ 112,271 Loans: Ending balance: individually evaluated for impairment $ — $ 803,456 $ — $ 803,456 Ending balance: collectively evaluated for impairment $ 967,237 $ 14,876,001 $ 69,508 $ 15,912,746 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.12 % 0.99 % 0.08 % Allowance as a percentage of the ending total loan balance 0.17 % 1.31 % 1.18 % Allowance as a percentage of the ending loans in repayment (2) 0.21 % 1.93 % 1.18 % Allowance coverage of net charge-offs (annualized) 1.68 2.00 20.45 Ending total loans, gross $ 967,237 $ 15,679,457 $ 69,508 Average loans in repayment (2) $ 765,347 $ 10,375,463 $ 47,654 Ending loans in repayment (2) $ 765,980 $ 10,615,105 $ 69,508 ____________ (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 Six Months Ended June 30, 2016 FFELP Loans Private Education Loans Total Allowance for Loan Losses Beginning balance $ 3,691 $ 108,816 $ 112,507 Total provision (664 ) 76,201 75,537 Net charge-offs: Charge-offs (730 ) (42,907 ) (43,637 ) Recoveries — 4,125 4,125 Net charge-offs (730 ) (38,782 ) (39,512 ) Loan sales (1) — (3,607 ) (3,607 ) Ending Balance $ 2,297 $ 142,628 $ 144,925 Allowance: Ending balance: individually evaluated for impairment $ — $ 63,370 $ 63,370 Ending balance: collectively evaluated for impairment $ 2,297 $ 79,258 $ 81,555 Loans: Ending balance: individually evaluated for impairment $ — $ 400,969 $ 400,969 Ending balance: collectively evaluated for impairment $ 1,061,517 $ 11,889,740 $ 12,951,257 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.18 % 1.01 % Allowance as a percentage of the ending total loan balance 0.22 % 1.16 % Allowance as a percentage of the ending loans in repayment (2) 0.30 % 1.78 % Allowance coverage of net charge-offs (annualized) 1.57 1.84 Ending total loans, gross $ 1,061,517 $ 12,290,709 Average loans in repayment (2) $ 794,665 $ 7,695,889 Ending loans in repayment (2) $ 773,321 $ 8,029,034 |
Impaired financing receivables | The following table provides the recorded investment, unpaid principal balance and related allowance for our TDR loans. Recorded Investment Unpaid Principal Balance Allowance June 30, 2017 TDR Loans $ 815,515 $ 803,456 $ 95,177 December 31, 2016 TDR Loans $ 620,991 $ 612,606 $ 86,930 |
Average recorded investment and interest income recognized for troubled debt restructuring loans | The following table provides the average recorded investment and interest income recognized for our TDR loans. Three Months Ended 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 766,171 $ 14,310 $ 364,882 $ 6,697 Six Months Ended 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 718,727 $ 26,567 $ 332,292 $ 12,280 |
Age analysis of past due loans delinquencies | The following table provides information regarding the loan status and aging of TDR loans. June 30, December 31, 2017 2016 Balance % Balance % TDR loans in in-school/grace/deferment (1) $ 33,693 $ 24,185 TDR loans in forbearance (2) 98,710 71,851 TDR loans in repayment (3) and percentage of each status: Loans current 603,215 89.9 % 462,187 89.5 % Loans delinquent 31-60 days (4) 35,120 5.2 28,452 5.5 Loans delinquent 61-90 days (4) 20,170 3.0 17,326 3.4 Loans delinquent greater than 90 days (4) 12,548 1.9 8,605 1.6 Total TDR loans in repayment 671,053 100.0 % 516,570 100.0 % Total TDR loans, gross $ 803,456 $ 612,606 _____ (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 information regarding the loan status of our Private Education Loans. Loans in repayment include loans 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 June 30, December 31, 2017 2016 Balance % Balance % Loans in-school/grace/deferment (1) $ 4,707,396 $ 4,189,955 Loans in forbearance (2) 356,956 351,962 Loans in repayment and percentage of each status: Loans current 10,385,289 97.8 % 9,509,394 97.9 % Loans delinquent 31-60 days (3) 132,108 1.3 124,773 1.3 Loans delinquent 61-90 days (3) 67,371 0.6 51,423 0.5 Loans delinquent greater than 90 days (3) 30,337 0.3 24,168 0.3 Total Private Education Loans in repayment 10,615,105 100.0 % 9,709,758 100.0 % Total Private Education Loans, gross 15,679,457 14,251,675 Private Education Loans deferred origination costs 48,905 44,206 Total Private Education Loans 15,728,362 14,295,881 Private Education Loans allowance for losses (205,024 ) (182,472 ) Private Education Loans, net $ 15,523,338 $ 14,113,409 Percentage of Private Education Loans in repayment 67.7 % 68.1 % Delinquencies as a percentage of Private Education Loans in repayment 2.2 % 2.1 % Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance 3.3 % 3.5 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. |
Modified loans accounts for troubled debt restructuring | The following table provides the amount of modified loans (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 more than 60 days past due for this disclosure. Three Months Ended Three Months Ended Modified Loans (1) Charge-offs Payment- Default Modified Loans (1) Charge-offs Payment- Default TDR Loans $ 134,489 $ 12,215 $ 23,679 $ 92,782 $ 5,464 $ 21,388 Six Months Ended Six Months Ended Modified Loans (1) Charge-offs Payment- Default Modified Loans (1) Charge-offs Payment- Default TDR Loans $ 246,695 $ 22,738 $ 49,113 $ 153,848 $ 10,432 $ 47,089 _____ (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 Personal Loan portfolio stratified by key credit quality indicators. Personal Loans Credit Quality Indicators June 30, 2017 December 31, 2016 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance FICO at Original Approval: Less than 670 $ 5,367 8 % $ 1,189 9 % 670-699 20,137 29 3,139 24 700-749 31,974 46 5,678 44 Greater than or equal to 750 12,030 17 2,888 23 Total $ 69,508 100 % $ 12,894 100 % Seasoning (2) : 0-12 payments $ 69,508 100 % $ 12,894 100 % 13-24 payments — — — — 25-36 payments — — — — 37-48 payments — — — — More than 48 payments — — — — Total $ 69,508 100 % $ 12,894 100 % (1) Balance represents gross Personal Loans. (2) Number of months in active repayment for which a scheduled payment was due. The following table highlights the gross principal balance of our Private Education Loan portfolio stratified by key credit quality indicators. Private Education Loans Credit Quality Indicators June 30, 2017 December 31, 2016 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance Cosigners: With cosigner $ 14,079,677 90 % $ 12,816,512 90 % Without cosigner 1,599,780 10 1,435,163 10 Total $ 15,679,457 100 % $ 14,251,675 100 % FICO at Original Approval (2) : Less than 670 $ 1,016,829 6 % $ 920,132 6 % 670-699 2,314,571 15 2,092,722 15 700-749 5,128,665 33 4,639,958 33 Greater than or equal to 750 7,219,392 46 6,598,863 46 Total $ 15,679,457 100 % $ 14,251,675 100 % Seasoning (3) : 1-12 payments $ 4,291,633 27 % $ 3,737,110 26 % 13-24 payments 2,931,945 19 2,841,107 20 25-36 payments 1,965,406 13 1,839,764 13 37-48 payments 990,248 6 917,633 7 More than 48 payments 792,829 5 726,106 5 Not yet in repayment 4,707,396 30 4,189,955 29 Total $ 15,679,457 100 % $ 14,251,675 100 % (1) Balance represents gross Private Education Loans. (2) Represents the higher credit score of the cosigner or the borrower. (3) Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due. |
Accrued interest receivable | The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans greater than 90 days past due as compared to our allowance for uncollectible interest. The allowance for uncollectible interest exceeds the amount of accrued interest on our 90 days past due Private Education Loan portfolio for all periods presented. Private Education Loan Accrued Interest Receivable Total Interest Receivable Greater Than 90 Days Past Due Allowance for Uncollectible Interest June 30, 2017 $ 913,080 $ 1,107 $ 4,522 December 31, 2016 $ 739,847 $ 845 $ 2,898 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Banking and Thrift [Abstract] | |
Schedule of deposits | The following table summarizes total deposits at June 30, 2017 and December 31, 2016 . June 30, December 31, 2017 2016 Deposits - interest bearing $ 13,793,200 $ 13,434,990 Deposits - non-interest bearing 1,615 677 Total deposits $ 13,794,815 $ 13,435,667 |
Interest bearing deposits | Interest bearing deposits at June 30, 2017 and December 31, 2016 are summarized as follows: June 30, 2017 December 31, 2016 Amount Qtr.-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 7,167,473 1.55 % $ 7,129,404 1.22 % Savings 847,714 0.99 834,521 0.84 Certificates of deposit 5,778,013 1.73 5,471,065 1.41 Deposits - interest bearing $ 13,793,200 $ 13,434,990 ____________ (1) Includes the effect of interest rate swaps in effective hedge relationships. |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The following table summarizes our borrowings at June 30, 2017 and December 31, 2016 . June 30, 2017 December 31, 2016 Short-Term Long-Term Total Short-Term Long-Term Total Unsecured borrowings: Unsecured debt $ — $ 196,740 $ 196,740 $ — $ — $ — Total unsecured borrowings — 196,740 196,740 — — — Secured borrowings: Private Education Loan term securitizations $ — $ 2,675,491 $ 2,675,491 $ — $ 2,167,979 $ 2,167,979 ABCP Facility — — — — — — Total secured borrowings — 2,675,491 2,675,491 — 2,167,979 2,167,979 Total $ — $ 2,872,231 $ 2,872,231 $ — $ 2,167,979 $ 2,167,979 |
Schedule of securities financing transactions | Secured Financings at Issuance 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 loan 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 loan and accrued interest amount securitized at inception in 2016 $ 2,107,042 2017-A February 2017 $ 772,000 1-month LIBOR plus 0.93% 4.27 Total notes issued in 2017 $ 772,000 Total loan and accrued interest amount securitized at inception in 2017 $ 856,253 ____________ (1) Represents LIBOR equivalent cost of funds for floating and fixed rate bonds, excluding issuance costs. |
Schedule of variable interest entities | We consolidate the following financing VIEs as of June 30, 2017 and December 31, 2016 , respectively: June 30, 2017 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 securitizations $ — $ 2,675,491 $ 2,675,491 $ 3,172,113 $ 57,370 $ 224,768 $ 3,454,251 ABCP Facility — — — — — — — Total $ — $ 2,675,491 $ 2,675,491 $ 3,172,113 $ 57,370 $ 224,768 $ 3,454,251 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 securitizations $ — $ 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 ____ (1) Other assets primarily represent accrued interest receivable. |
Derivative Financial Instrume26
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 and December 31, 2016 , and their impact on earnings and other comprehensive income for the six months ended June 30, 2017 and 2016. Please refer to Note 11, “Derivative Financial Instruments” in our 2016 Form 10-K for a full discussion of cash flow hedges, fair value hedges, and trading activities. The net fair value of derivative instruments as of June 30, 2017 was a liability of $10.9 million , compared to the net fair value as of December 31, 2016 liability of $18.1 million . The change in the net fair value reflects a $5.1 million decrease in fair value offset by variation margin amounts of $12.3 million . The net position as of June 30, 2017 was $36.7 million , compared to $30.0 million as of December 31, 2016. The change in the net position reflects a $5.1 million decrease in fair value, $6.0 million decrease in collateral held and pledged (for contracts other than those cleared through the CME), offset by variation margin impacts of $17.8 million . Impact of Derivatives on the Consolidated Balance Sheet Cash Flow Hedges Fair Value Hedges Trading Total June 30, December 31, June 30, December June 30, December June 30, December 2017 2016 2017 2016 2017 2016 2017 2016 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ 326 $ — $ — $ 7,808 $ — $ — $ 326 $ 7,808 Derivative Liabilities: (2) Interest rate swaps Interest rate (8,476 ) (14,463 ) (2,648 ) (10,398 ) (128 ) (1,076 ) (11,252 ) (25,937 ) Total net derivatives $ (8,150 ) $ (14,463 ) $ (2,648 ) $ (2,590 ) $ (128 ) $ (1,076 ) $ (10,926 ) $ (18,129 ) ___________ (1) Except for instruments cleared through the CME, 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. The net position includes the variation margin as legal settlement of the derivative contract for instruments cleared with the CME. (2) The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities June 30, December 31, June 30, December 31, 2017 2016 2017 2016 Gross position (1) $ 326 $ 7,808 $ (11,252 ) $ (25,937 ) Impact of master netting agreement (326 ) (7,808 ) 326 7,808 Derivative values with impact of master netting agreements (as carried on balance sheet) — — (10,926 ) (18,129 ) Cash collateral (held) pledged (2) — — 47,616 48,134 Net position $ — $ — $ 36,690 $ 30,005 __________ (1) Except for instruments cleared with the CME, gross position amounts are exclusive of accrued interest and collateral held and pledged. (2) Cash collateral (held) pledged excludes amounts that represent legal settlement of the derivative contracts. |
Offsetting assets | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities June 30, December 31, June 30, December 31, 2017 2016 2017 2016 Gross position (1) $ 326 $ 7,808 $ (11,252 ) $ (25,937 ) Impact of master netting agreement (326 ) (7,808 ) 326 7,808 Derivative values with impact of master netting agreements (as carried on balance sheet) — — (10,926 ) (18,129 ) Cash collateral (held) pledged (2) — — 47,616 48,134 Net position $ — $ — $ 36,690 $ 30,005 __________ (1) Except for instruments cleared with the CME, gross position amounts are exclusive of accrued interest and collateral held and pledged. (2) Cash collateral (held) pledged excludes amounts that represent legal settlement of the derivative contracts. |
Offsetting liabilities | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities June 30, December 31, June 30, December 31, 2017 2016 2017 2016 Gross position (1) $ 326 $ 7,808 $ (11,252 ) $ (25,937 ) Impact of master netting agreement (326 ) (7,808 ) 326 7,808 Derivative values with impact of master netting agreements (as carried on balance sheet) — — (10,926 ) (18,129 ) Cash collateral (held) pledged (2) — — 47,616 48,134 Net position $ — $ — $ 36,690 $ 30,005 __________ (1) Except for instruments cleared with the CME, gross position amounts are exclusive of accrued interest and collateral held and pledged. (2) Cash collateral (held) pledged excludes amounts that represent legal settlement of the derivative contracts. |
Schedule of notional amounts of outstanding derivative positions | Cash Flow Fair Value Trading Total June 30, December 31, June 30, December 31, June 30, December 31, June 30, December 31, 2017 2016 2017 2016 2017 2016 2017 2016 Notional Values Interest rate swaps $ 996,458 $ 1,054,688 $ 4,071,595 $ 3,628,062 $ 694,776 $ 494,638 $ 5,762,829 $ 5,177,388 |
Derivative instruments, gain (loss) | Impact of Derivatives on the Consolidated Statements of Income Three Months Ended Six Months Ended 2017 2016 2017 2016 Fair Value Hedges Interest rate swaps: Hedge ineffectiveness realized gains (losses) recorded in earnings (1) $ (3,711 ) $ 1,218 $ (7,878 ) $ (1,199 ) Realized gains (losses) recorded in interest expense 2,881 7,391 7,428 14,650 Total $ (830 ) $ 8,609 $ (450 ) $ 13,451 Cash Flow Hedges Interest rate swaps: Hedge ineffectiveness losses recorded in earnings (1) $ (75 ) $ (403 ) $ (147 ) $ (681 ) Realized losses recorded in interest expense (2,669 ) (4,586 ) (6,008 ) (9,207 ) Total $ (2,744 ) $ (4,989 ) $ (6,155 ) $ (9,888 ) Trading Interest rate swaps: Interest reclassification $ (101 ) $ 672 $ (20 ) $ 1,360 Realized gains (losses) recorded in earnings 278 655 (942 ) 2,308 Total (1) 177 1,327 (962 ) 3,668 Total $ (3,397 ) $ 4,947 $ (7,567 ) $ 7,231 ________ (1) Amounts included in “(losses) gains on derivatives and hedging activities, net” in the consolidated statements of income. |
Schedule of derivative instruments, effect on other comprehensive income (loss) | Impact of Derivatives on the Statements of Changes in Stockholders’ Equity Three Months Ended Six Months Ended June 30, June 30, 2017 2016 2017 2016 Amount of gain (loss) recognized in other comprehensive income (loss) $ (4,698 ) $ (13,318 ) $ (3,258 ) $ (42,313 ) Less: amount of gain (loss) reclassified in interest expense (1) (2,669 ) (4,586 ) (6,008 ) (9,207 ) Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax benefit (expense) $ (2,029 ) $ (8,732 ) $ 2,750 $ (33,106 ) ___________ (1) Amounts included in “realized gains (losses) recorded in interest expense” in the “Impact of Derivatives on the Consolidated Statements of Income” table. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of common share repurchases | The following table summarizes our common share repurchases and issuances. Three Months Ended Six Months Ended (Shares and per share amounts in actuals) 2017 2016 2017 2016 Shares repurchased related to employee stock-based compensation plans (1)(2) 981,477 263,218 2,584,964 1,391,927 Average purchase price per share $ 12.39 $ 6.68 $ 12.12 $ 6.12 Common shares issued (3) 1,491,057 425,495 5,229,774 3,166,474 __________________ (1) Comprised of shares withheld from stock option exercises and vesting of restricted stock for employees’ tax withholding obligations and shares tendered by employees to satisfy option exercise costs. (2) At the present time, we do not intend to initiate a publicly announced share repurchase program. (3) Common shares issued under our various compensation and benefit plans. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows. Three Months Ended Six Months Ended June 30, June 30, (In thousands, except per share data) 2017 2016 2017 2016 Numerator: Net income $ 70,617 $ 57,205 $ 165,560 $ 123,120 Preferred stock dividends 3,974 5,243 9,549 10,382 Net income attributable to SLM Corporation common stock $ 66,643 $ 51,962 $ 156,011 $ 112,738 Denominator: Weighted average shares used to compute basic EPS 431,245 427,942 430,572 427,526 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units and Employee Stock Purchase Plan (“ESPP”) (1)(2) 6,870 3,854 7,852 3,823 Weighted average shares used to compute diluted EPS 438,115 431,796 438,424 431,349 Basic earnings per common share attributable to SLM Corporation $ 0.15 $ 0.12 $ 0.36 $ 0.26 Diluted earnings per common share attributable to SLM Corporation $ 0.15 $ 0.12 $ 0.35 $ 0.26 ________________ (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method. (2) For the three months ended June 30, 2017 and 2016, securities covering approximately 0 and 1 million shares, respectively, and for the six months ended June 30, 2017 and 2016, securities covering approximately 0 and 4 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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 June 30, 2017 December 31, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Available-for-sale investments $ — $ 229,479 $ — $ 229,479 $ — $ 208,603 $ — $ 208,603 Derivative instruments — 326 — 326 — 7,808 — 7,808 Total $ — $ 229,805 $ — $ 229,805 $ — $ 216,411 $ — $ 216,411 Liabilities Derivative instruments $ — $ (11,252 ) $ — $ (11,252 ) $ — $ (25,937 ) $ — $ (25,937 ) Total $ — $ (11,252 ) $ — $ (11,252 ) $ — $ (25,937 ) $ — $ (25,937 ) |
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. June 30, 2017 December 31, 2016 Fair Value Carrying Value Difference Fair Value Carrying Value Difference Earning assets Loans held for investment, net $ 18,349,005 $ 16,560,426 $ 1,788,579 $ 16,520,786 $ 15,137,922 $ 1,382,864 Cash and cash equivalents 1,318,168 1,318,168 — 1,918,793 1,918,793 — Available-for-sale investments 229,479 229,479 — 208,603 208,603 — Accrued interest receivable 926,270 926,270 — 766,106 766,106 — Tax indemnification receivable 233,142 233,142 — 259,532 259,532 — Derivative instruments 326 326 — 7,808 7,808 — Total earning assets $ 21,056,390 $ 19,267,811 $ 1,788,579 $ 19,681,628 $ 18,298,764 $ 1,382,864 Interest-bearing liabilities Money-market and savings accounts $ 8,015,192 $ 8,015,192 $ — $ 7,963,925 $ 7,963,925 $ — Certificates of deposit 5,788,342 5,778,013 (10,329 ) 5,510,504 5,471,065 (39,439 ) Short-term borrowings — — — — — — Long-term borrowings 2,899,491 2,872,231 (27,260 ) 2,160,105 2,167,979 7,874 Accrued interest payable 27,114 27,114 — 21,058 21,058 — Derivative instruments 11,252 11,252 — 25,937 25,937 — Total interest-bearing liabilities $ 16,741,391 $ 16,703,802 $ (37,589 ) $ 15,681,529 $ 15,649,964 $ (31,565 ) Excess of net asset fair value over carrying value $ 1,750,990 $ 1,351,299 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
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” Amount Ratio Amount Ratio As of June 30, 2017: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 2,199,979 12.5 % $ 1,139,897 > 6.5 % Tier 1 Capital (to Risk-Weighted Assets) $ 2,199,979 12.5 % $ 1,402,950 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 2,407,976 13.7 % $ 1,753,687 > 10.0 % Tier 1 Capital (to Average Assets) $ 2,199,979 11.5 % $ 955,156 > 5.0 % 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 % |
Significant Accounting Polices
Significant Accounting Polices - Narrative (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | |
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Period of forbearance within twenty-four months | 3 months | ||
Period after grace period for forbearance allowance | 9 months | ||
Forbearance period after grace period | 6 months | ||
Percentage of loans granted forbearance qualified as TDR | 27.00% | 26.00% | |
Notional value | $ 5,800 | ||
Excess tax benefit, amount | 6.5 | ||
Chicago Mercantile Exchange | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Notional value | $ 4,600 | ||
Percent of total notional derivative contracts | 80.50% | ||
London Clearing House | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Notional value | $ 700 | ||
Percent of total notional derivative contracts | 12.50% | ||
Accounting Standards Update 2016-09 | Retained Earnings | New Accounting Pronouncement, Early Adoption, Effect | |||
Error Corrections and Prior Period Adjustments Restatement [Line Items] | |||
Cumulative effect adjustment to retained earnings | $ 0.2 |
Loans Held for Investment - Add
Loans Held for Investment - Additional Information (Detail) | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2017 | Dec. 31, 2016 | Jul. 01, 2006 | Jun. 30, 2006 | Sep. 30, 1993 | |
Receivables [Abstract] | |||||
Percent of private loans indexed to LIBOR | 81.30% | 81.40% | |||
Tier 1 of government guarantee (in percentage) | 97.00% | 97.00% | |||
Tier 2 of government guarantee (in percentage) | 98.00% | ||||
Tier 3 of government guarantee (in percentage) | 100.00% | ||||
Estimated weighted average life of student loans (in years) | 5 years 7 months | 6 years |
Loans Held for Investment - Stu
Loans Held for Investment - Student Loan Portfolio by Program (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Private Education Loans | $ 15,679,457 | $ 14,251,675 |
Deferred origination costs | 48,905 | 44,206 |
Allowance for loan losses | (205,024) | (182,472) |
Total Private Education Loans, net | 15,523,338 | 14,113,409 |
FFELP Loans | 967,237 | 1,010,908 |
Unamortized acquisition costs, net | 2,767 | 2,941 |
Allowance for loan losses | (1,606) | (2,171) |
Total FFELP Loans, net | 968,398 | 1,011,678 |
Personal Loans | 69,508 | 12,893 |
Allowance for loan losses | (818) | (58) |
Total Personal Loans, net | 68,690 | 12,835 |
Loans held for investment, net | $ 16,560,426 | $ 15,137,922 |
Loans Held for Investment - S34
Loans Held for Investment - Student Loan Portfolio Average Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Receivables [Abstract] | ||||
Average Balance, Private Education Loans | $ 15,687,803 | $ 12,217,890 | $ 15,569,337 | $ 12,017,799 |
Average Balance FFELP Loans | 980,478 | 1,076,419 | 991,740 | 1,089,836 |
Average Balance of Personal Loans | 60,910 | 0 | 48,894 | 0 |
Average balance, Total portfolio | $ 16,729,191 | $ 13,294,309 | $ 16,609,971 | $ 13,107,635 |
Weighted Average Interest Rate, Private Education Loans | 8.33% | 7.98% | 8.30% | 8.00% |
Weighted Average Interest Rate FFELP loans | 3.87% | 3.48% | 3.78% | 3.45% |
Weighted Average Interest Rate of Personal Loans | 9.28% | 0.00% | 9.19% |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance for Credit Losses and Recorded Investments in Loans (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($)charge_off | Jun. 30, 2016USD ($)charge_off | Jun. 30, 2017USD ($)charge_off | Jun. 30, 2016USD ($)charge_off | |
Allowance for Loan Losses | ||||
Allowance at beginning of period | $ 187,086 | $ 126,249 | $ 184,701 | $ 112,507 |
Total provision | 49,886 | 41,377 | 76,678 | 75,537 |
Net charge-offs: | ||||
Charge-offs | (33,007) | (24,250) | (59,452) | (43,637) |
Recoveries | 4,396 | 3,082 | 7,655 | 4,125 |
Net charge-offs | (28,611) | (21,168) | (51,797) | (39,512) |
Loan sales | (913) | (1,533) | (2,134) | (3,607) |
Allowance at end of period | 207,448 | 144,925 | 207,448 | 144,925 |
Allowance: | ||||
Ending balance: individually evaluated for impairment | 95,177 | 63,370 | 95,177 | 63,370 |
Ending balance: collectively evaluated for impairment | 112,271 | 81,555 | 112,271 | 81,555 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 803,456 | 400,969 | 803,456 | 400,969 |
Ending balance: collectively evaluated for impairment | 15,912,746 | 12,951,257 | 15,912,746 | 12,951,257 |
FFELP Loans | ||||
Allowance for Loan Losses | ||||
Allowance at beginning of period | 1,637 | 3,629 | 2,171 | 3,691 |
Total provision | 228 | (985) | (88) | (664) |
Net charge-offs: | ||||
Charge-offs | (259) | (347) | (477) | (730) |
Recoveries | 0 | 0 | 0 | 0 |
Net charge-offs | (259) | (347) | (477) | (730) |
Loan sales | 0 | 0 | 0 | 0 |
Allowance at end of period | 1,606 | 2,297 | 1,606 | 2,297 |
Allowance: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 1,606 | 2,297 | 1,606 | 2,297 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | $ 967,237 | $ 1,061,517 | $ 967,237 | $ 1,061,517 |
Net charge-offs as a percentage of average loans in repayment (annualized) | 0.14% | 0.18% | 0.12% | 0.18% |
Allowance as a percentage of the ending total loan balance | 0.17% | 0.22% | 0.17% | 0.22% |
Allowance as a percentage of the ending loans in repayment | 0.21% | 0.30% | 0.21% | 0.30% |
Allowance coverage of net charge-offs (annualized) | charge_off | 1.55 | 1.65 | 1.68 | 1.57 |
Ending total loans, gross | $ 967,237 | $ 1,061,517 | $ 967,237 | $ 1,061,517 |
Average loans in repayment | 757,186 | 786,818 | 765,347 | 794,665 |
Ending loans in repayment | 765,980 | 773,321 | 765,980 | 773,321 |
Private Education Loans | ||||
Allowance for Loan Losses | ||||
Allowance at beginning of period | 185,103 | 122,620 | 182,472 | 108,816 |
Total provision | 49,166 | 42,362 | 75,986 | 76,201 |
Net charge-offs: | ||||
Charge-offs | (32,728) | (23,903) | (58,955) | (42,907) |
Recoveries | 4,396 | 3,082 | 7,655 | 4,125 |
Net charge-offs | (28,332) | (20,821) | (51,300) | (38,782) |
Loan sales | (913) | (1,533) | (2,134) | (3,607) |
Allowance at end of period | 205,024 | 142,628 | 205,024 | 142,628 |
Allowance: | ||||
Ending balance: individually evaluated for impairment | 95,177 | 63,370 | 95,177 | 63,370 |
Ending balance: collectively evaluated for impairment | 109,847 | 79,258 | 109,847 | 79,258 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 803,456 | 400,969 | 803,456 | 400,969 |
Ending balance: collectively evaluated for impairment | $ 14,876,001 | $ 11,889,740 | $ 14,876,001 | $ 11,889,740 |
Net charge-offs as a percentage of average loans in repayment (annualized) | 1.08% | 1.05% | 0.99% | 1.01% |
Allowance as a percentage of the ending total loan balance | 1.31% | 1.16% | 1.31% | 1.16% |
Allowance as a percentage of the ending loans in repayment | 1.93% | 1.78% | 1.93% | 1.78% |
Allowance coverage of net charge-offs (annualized) | charge_off | 1.81 | 1.71 | 2 | 1.84 |
Ending total loans, gross | $ 15,679,457 | $ 12,290,709 | $ 15,679,457 | $ 12,290,709 |
Average loans in repayment | 10,523,225 | 7,894,340 | 10,375,463 | 7,695,889 |
Ending loans in repayment | 10,615,105 | $ 8,029,034 | 10,615,105 | $ 8,029,034 |
Personal Loans | ||||
Allowance for Loan Losses | ||||
Allowance at beginning of period | 346 | 58 | ||
Total provision | 492 | 780 | ||
Net charge-offs: | ||||
Charge-offs | (20) | (20) | ||
Recoveries | 0 | 0 | ||
Net charge-offs | (20) | (20) | ||
Loan sales | 0 | 0 | ||
Allowance at end of period | 818 | 818 | ||
Allowance: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 818 | 818 | ||
Loans: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | $ 69,508 | $ 69,508 | ||
Net charge-offs as a percentage of average loans in repayment (annualized) | 0.13% | 0.08% | ||
Allowance as a percentage of the ending total loan balance | 1.18% | 1.18% | ||
Allowance as a percentage of the ending loans in repayment | 1.18% | 1.18% | ||
Allowance coverage of net charge-offs (annualized) | charge_off | 10.23 | 20.45 | ||
Ending total loans, gross | $ 69,508 | $ 69,508 | ||
Average loans in repayment | 61,439 | 47,654 | ||
Ending loans in repayment | $ 69,508 | $ 69,508 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) | 6 Months Ended | ||
Jun. 30, 2017 | Dec. 31, 2016 | Jul. 01, 2006 | |
Receivables [Abstract] | |||
Percentage of loans granted forbearance qualified as TDR | 27.00% | 26.00% | |
Criteria for loans to be considered as nonperforming | 90 days | ||
Tier 1 of government guarantee (at least) (in percentage) | 97.00% | 97.00% | |
TDR payment default period (more than) | 60 days | ||
Period of loans past due that have accrued interest | 90 days |
Allowance for Loan Losses - Rec
Allowance for Loan Losses - Recorded Investment, Unpaid Principal Balance and Related Allowance for TDR Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Recorded Investment | $ 815,515 | $ 620,991 |
Unpaid Principal Balance | 803,456 | 612,606 |
Allowance | $ 95,177 | $ 86,930 |
Allowance for Loan Losses - Ave
Allowance for Loan Losses - Average Recorded Investment and Interest Income Recognized for TDR (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Receivables [Abstract] | ||||
Average Recorded Investment | $ 766,171 | $ 364,882 | $ 718,727 | $ 332,292 |
Interest Income Recognized | $ 14,310 | $ 6,697 | $ 26,567 | $ 12,280 |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loan Status and Aging of Past Due TDR Loans (Details) - Student Loan - Consumer Portfolio Segment - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDR loans in in-school/grace/deferment | $ 4,707,396 | $ 4,189,955 |
TDR loans in forbearance | 356,956 | 351,962 |
TDR loans in repayment and percentage of each status: | ||
Loans current | 10,385,289 | 9,509,394 |
Total TDR loans in repayment | 10,615,105 | 9,709,758 |
Total TDR loans, gross | $ 15,679,457 | $ 14,251,675 |
Loans current (as a percentage) | 97.80% | 97.90% |
Total TDR loans in repayment | 100.00% | 100.00% |
Troubled Debt Restructured Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDR loans in in-school/grace/deferment | $ 33,693 | $ 24,185 |
TDR loans in forbearance | 98,710 | 71,851 |
TDR loans in repayment and percentage of each status: | ||
Loans current | 603,215 | 462,187 |
Total TDR loans in repayment | 671,053 | 516,570 |
Total TDR loans, gross | $ 803,456 | $ 612,606 |
Loans current (as a percentage) | 89.90% | 89.50% |
Total TDR loans in repayment | 100.00% | 100.00% |
Loans delinquent 31-60 days | ||
TDR loans in repayment and percentage of each status: | ||
Loans delinquent | $ 132,108 | $ 124,773 |
Loans delinquent (as a percentage) | 1.30% | 1.30% |
Loans delinquent 31-60 days | Troubled Debt Restructured Loans | ||
TDR loans in repayment and percentage of each status: | ||
Loans delinquent | $ 35,120 | $ 28,452 |
Loans delinquent (as a percentage) | 5.20% | 5.50% |
Loans delinquent 61-90 days | ||
TDR loans in repayment and percentage of each status: | ||
Loans delinquent | $ 67,371 | $ 51,423 |
Loans delinquent (as a percentage) | 0.60% | 0.50% |
Loans delinquent 61-90 days | Troubled Debt Restructured Loans | ||
TDR loans in repayment and percentage of each status: | ||
Loans delinquent | $ 20,170 | $ 17,326 |
Loans delinquent (as a percentage) | 3.00% | 3.40% |
Loans delinquent, greater than 90 days | ||
TDR loans in repayment and percentage of each status: | ||
Loans delinquent | $ 30,337 | $ 24,168 |
Loans delinquent (as a percentage) | 0.30% | 0.30% |
Loans delinquent, greater than 90 days | Troubled Debt Restructured Loans | ||
TDR loans in repayment and percentage of each status: | ||
Loans delinquent | $ 12,548 | $ 8,605 |
Loans delinquent (as a percentage) | 1.90% | 1.60% |
Allowance for Loan Losses - Mod
Allowance for Loan Losses - Modified Loan Accounts for TDR (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Receivables [Abstract] | ||||
Modified Loans | $ 134,489 | $ 92,782 | $ 246,695 | $ 153,848 |
Charge-offs | 12,215 | 5,464 | 22,738 | 10,432 |
Payment- Default | $ 23,679 | $ 21,388 | $ 49,113 | $ 47,089 |
Allowance for Loan Losses - L41
Allowance for Loan Losses - Loan Portfolio Stratified by Key Credit Quality Indicators (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 15,679,457 | $ 14,251,675 |
Private Education Loans | Consumer Portfolio Segment | Student Loan | With Cosigner | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 14,079,677 | $ 12,816,512 |
Private Education Loans with cosigner (in percentage) | 90.00% | 90.00% |
Private Education Loans | Consumer Portfolio Segment | Student Loan | Without Cosigner | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 1,599,780 | $ 1,435,163 |
Private Education Loans without cosigner (in percentage) | 10.00% | 10.00% |
Private Education Loans | Consumer Portfolio Segment | Student Loan | Cosigners | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 15,679,457 | $ 14,251,675 |
Total in percent | 100.00% | 100.00% |
Private Education Loans | Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 15,679,457 | $ 14,251,675 |
Total in percent | 100.00% | 100.00% |
Private Education Loans | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 15,679,457 | $ 14,251,675 |
Total in percent | 100.00% | 100.00% |
Seasoning based on monthly scheduled payments due from 1-12 payments (in percentage) | 27.00% | 26.00% |
Seasoning based on monthly scheduled payments due from 13 - 24 payments (in percentage) | 19.00% | 20.00% |
Seasoning based on monthly scheduled payments due from 25 - 36 payments (in percentage) | 13.00% | 13.00% |
Seasoning based on monthly scheduled payments due from 37 - 48 payments (in percentage) | 6.00% | 7.00% |
Seasoning based on monthly scheduled payments due from more than 48 payments (in percentage) | 5.00% | 5.00% |
Seasoning based on monthly scheduled payments due from not yet in repayment (in percentage) | 30.00% | 29.00% |
Private Education Loans | 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 | $ 1,016,829 | $ 920,132 |
Private Education Loans At Origination | 6.00% | 6.00% |
Private Education Loans | FICO score 670-699 | Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 2,314,571 | $ 2,092,722 |
Private Education Loans At Origination | 15.00% | 15.00% |
Private Education Loans | FICO score 700-749 | Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 5,128,665 | $ 4,639,958 |
Private Education Loans At Origination | 33.00% | 33.00% |
Private Education Loans | FICO score greater than or equal to 750 | Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 7,219,392 | $ 6,598,863 |
Private Education Loans At Origination | 46.00% | 46.00% |
Private Education Loans | 1-12 payments | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 4,291,633 | $ 3,737,110 |
Private Education Loans | 13-24 payments | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 2,931,945 | 2,841,107 |
Private Education Loans | 25-36 payments | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 1,965,406 | 1,839,764 |
Private Education Loans | 37-48 payments | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 990,248 | 917,633 |
Private Education Loans | More than 48 payments | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 792,829 | 726,106 |
Private Education Loans | Not yet in repayment | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 4,707,396 | 4,189,955 |
Personal Loans | Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 69,508 | $ 12,894 |
Total in percent | 100.00% | 100.00% |
Personal Loans | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 69,508 | $ 12,894 |
Total in percent | 100.00% | 100.00% |
Seasoning based on monthly scheduled payments due from 1-12 payments (in percentage) | 100.00% | 100.00% |
Seasoning based on monthly scheduled payments due from 13 - 24 payments (in percentage) | 0.00% | 0.00% |
Seasoning based on monthly scheduled payments due from 25 - 36 payments (in percentage) | 0.00% | 0.00% |
Seasoning based on monthly scheduled payments due from 37 - 48 payments (in percentage) | 0.00% | 0.00% |
Seasoning based on monthly scheduled payments due from more than 48 payments (in percentage) | 0.00% | 0.00% |
Personal Loans | 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 | $ 5,367 | $ 1,189 |
Private Education Loans At Origination | 8.00% | 9.00% |
Personal Loans | FICO score 670-699 | Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 20,137 | $ 3,139 |
Private Education Loans At Origination | 29.00% | 24.00% |
Personal Loans | FICO score 700-749 | Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 31,974 | $ 5,678 |
Private Education Loans At Origination | 46.00% | 44.00% |
Personal Loans | FICO score greater than or equal to 750 | Consumer Portfolio Segment | Student Loan | School Type/FICO Scores | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 12,030 | $ 2,888 |
Private Education Loans At Origination | 17.00% | 23.00% |
Personal Loans | 1-12 payments | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 69,508 | $ 12,894 |
Personal Loans | 13-24 payments | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 0 | 0 |
Personal Loans | 25-36 payments | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 0 | 0 |
Personal Loans | 37-48 payments | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 0 | 0 |
Personal Loans | More than 48 payments | Consumer Portfolio Segment | Student Loan | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 0 | $ 0 |
Allowance for Loan Losses - Age
Allowance for Loan Losses - Age Analysis of Past Due Loans Delinquencies (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Loans in repayment and percentage of each status: | ||||||
Private Education Loans allowance for losses | $ (207,448) | $ (187,086) | $ (184,701) | $ (144,925) | $ (126,249) | $ (112,507) |
Student Loan | Consumer Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans in-school/grace/deferment | 4,707,396 | 4,189,955 | ||||
Loans in forbearance | 356,956 | 351,962 | ||||
Loans in repayment and percentage of each status: | ||||||
Loans current | $ 10,385,289 | $ 9,509,394 | ||||
Loans current (as a percentage) | 97.80% | 97.90% | ||||
Total TDR loans in repayment | $ 10,615,105 | $ 9,709,758 | ||||
Total TDR loans in repayment | 100.00% | 100.00% | ||||
Total TDR loans, gross | $ 15,679,457 | $ 14,251,675 | ||||
Private Education Loans deferred origination costs | 48,905 | 44,206 | ||||
Total Private Education Loans | 15,728,362 | 14,295,881 | ||||
Private Education Loans allowance for losses | (205,024) | (182,472) | ||||
Private Education Loans, net | $ 15,523,338 | $ 14,113,409 | ||||
Percentage of Private Education Loans in repayment | 67.70% | 68.10% | ||||
Delinquencies as a percentage of Private Education Loans in repayment | 2.20% | 2.10% | ||||
Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance | 3.30% | 3.50% | ||||
Student Loan | Consumer Portfolio Segment | Loans delinquent 31-60 days | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 132,108 | $ 124,773 | ||||
Loans delinquent (as a percentage) | 1.30% | 1.30% | ||||
Student Loan | Consumer Portfolio Segment | Loans delinquent 61-90 days | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 67,371 | $ 51,423 | ||||
Loans delinquent (as a percentage) | 0.60% | 0.50% | ||||
Student Loan | Consumer Portfolio Segment | Loans delinquent, greater than 90 days | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 30,337 | $ 24,168 | ||||
Loans delinquent (as a percentage) | 0.30% | 0.30% |
Allowance for Loan Losses - Acc
Allowance for Loan Losses - Accrued Interest Receivable (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Receivables [Abstract] | ||
Total Interest Receivable | $ 913,080 | $ 739,847 |
Greater Than 90 Days Past Due | 1,107 | 845 |
Allowance for Uncollectible Interest | $ 4,522 | $ 2,898 |
Deposits - Summary of Total Dep
Deposits - Summary of Total Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Banking and Thrift [Abstract] | ||
Deposits - interest bearing | $ 13,793,200 | $ 13,434,990 |
Deposits - non-interest bearing | 1,615 | 677 |
Total deposits | $ 13,794,815 | $ 13,435,667 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Banking and Thrift [Abstract] | |||||
Stable interest-bearing deposits, total | $ 5,400 | $ 5,400 | |||
Brokered deposit placement fee | 2.2 | $ 2.6 | 4.3 | $ 5.2 | |
Third party broker fees paid | 3.2 | $ 0.1 | 5.3 | $ 2.9 | |
Deposits exceeding FDIC insurance limits | 259.6 | 259.6 | $ 304.5 | ||
Accrued interest on deposits | $ 21.8 | $ 21.8 | $ 18.9 |
Deposits - Interest Bearing Dep
Deposits - Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Amount | ||
Money market | $ 7,167,473 | $ 7,129,404 |
Savings | 847,714 | 834,521 |
Certificates of deposit | 5,778,013 | 5,471,065 |
Deposits - interest bearing | $ 13,793,200 | $ 13,434,990 |
Weighted Average Stated Rate | ||
Money market | 1.55% | 1.22% |
Savings | 0.99% | 0.84% |
Certificates of deposit | 1.73% | 1.41% |
Borrowings - Company Borrowings
Borrowings - Company Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Instrument [Line Items] | ||
Short Term | $ 0 | $ 0 |
Long Term | 2,872,231 | 2,167,979 |
Total | 2,872,231 | 2,167,979 |
Unsecured borrowings | ||
Debt Instrument [Line Items] | ||
Short Term | 0 | 0 |
Long Term | 196,740 | 0 |
Total | 196,740 | 0 |
Secured borrowings | ||
Debt Instrument [Line Items] | ||
Short Term | 0 | 0 |
Long Term | 2,675,491 | 2,167,979 |
Total | 2,675,491 | 2,167,979 |
Secured borrowings | Private Education Loan securitization | ||
Debt Instrument [Line Items] | ||
Short Term | 0 | 0 |
Long Term | 2,675,491 | 2,167,979 |
Total | 2,675,491 | 2,167,979 |
Secured borrowings | ABCP borrowings | ||
Debt Instrument [Line Items] | ||
Short Term | 0 | 0 |
Long Term | 0 | 0 |
Total | $ 0 | $ 0 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | Feb. 22, 2017 | Feb. 08, 2017 | Feb. 25, 2016 | Jun. 30, 2017 | Dec. 31, 2016 | Apr. 05, 2017 | Dec. 31, 2015 |
Line of Credit Facility [Line Items] | |||||||
Short-term borrowings | $ 0 | $ 0 | |||||
Unsecured offering issued | $ 772,000,000 | $ 1,782,000,000 | $ 630,800,000 | ||||
Estimated weighted average life of student loans (in years) | 5 years 7 months | 6 years | |||||
Uncommitted federal funds | $ 125,000,000 | ||||||
Lendable value of collateral | $ 2,500,000,000 | $ 2,600,000,000 | |||||
ABCP borrowings | Commercial Paper | |||||||
Line of Credit Facility [Line Items] | |||||||
Private asset backed commercial paper education loan funding facility | $ 750,000,000 | $ 750,000,000 | |||||
Ownership interest percentage in residual interest in ABCP facility | 100.00% | 100.00% | |||||
Short-term borrowings | $ 0 | ||||||
Private Education Loans | |||||||
Line of Credit Facility [Line Items] | |||||||
Total loan amount securitized at inception | $ 772,000,000 | ||||||
Amount of loan securitization sold to third parties | $ 772,000,000 | ||||||
Class A Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Ownership interest percentage | 100.00% | ||||||
Proceeds from loan securitization sold to third parties | $ 768,000,000 | ||||||
Class A and B Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Estimated weighted average life of student loans (in years) | 4 years 3 months 7 days | ||||||
Private Education Loans, 2016 Term A | |||||||
Line of Credit Facility [Line Items] | |||||||
Loans pledged as collateral | 772,000,000 | ||||||
LIBOR | ABCP borrowings | Commercial Paper | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0.90% | 0.90% | |||||
LIBOR | Class A and B Notes | |||||||
Line of Credit Facility [Line Items] | |||||||
Basis spread on variable rate | 0.93% | ||||||
Minimum | ABCP borrowings | Commercial Paper | |||||||
Line of Credit Facility [Line Items] | |||||||
Financing cost percentage of unused borrowing capacity | 0.35% | 0.35% | |||||
Maximum | ABCP borrowings | Commercial Paper | |||||||
Line of Credit Facility [Line Items] | |||||||
Financing cost percentage of unused borrowing capacity | 0.45% | 0.45% | |||||
Unsecured borrowings | |||||||
Line of Credit Facility [Line Items] | |||||||
Short-term borrowings | $ 0 | $ 0 | |||||
Unsecured borrowings | Senior Unsecured Notes Due April 5, 2022 | |||||||
Line of Credit Facility [Line Items] | |||||||
Unsecured offering issued | $ 200,000,000 | ||||||
Interest rate stated percentage | 5.125% |
Borrowings - Securitizations (D
Borrowings - Securitizations (Details) - USD ($) | Feb. 28, 2017 | Oct. 31, 2016 | Jul. 31, 2016 | May 31, 2016 | Jul. 31, 2015 | Jun. 30, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Securities Financing Transaction [Line Items] | ||||||||
Total Issued | $ 772,000,000 | $ 1,782,000,000 | $ 630,800,000 | |||||
Total loan and accrued interest amount securitized at inception on-balance sheet term securitization | $ 856,253,000 | $ 2,107,042,000 | $ 745,580,000 | |||||
2015-B | ||||||||
Securities Financing Transaction [Line Items] | ||||||||
Total Issued | $ 630,800,000 | |||||||
Weighted Average Life (in years) | 4 years 9 months 26 days | |||||||
2016-A | ||||||||
Securities Financing Transaction [Line Items] | ||||||||
Total Issued | $ 501,000,000 | |||||||
Weighted Average Life (in years) | 4 years 3 days | |||||||
2016-B | ||||||||
Securities Financing Transaction [Line Items] | ||||||||
Total Issued | $ 607,000,000 | |||||||
Weighted Average Life (in years) | 4 years 3 days | |||||||
2016-C | ||||||||
Securities Financing Transaction [Line Items] | ||||||||
Total Issued | $ 674,000,000 | |||||||
Weighted Average Life (in years) | 4 years 3 months 7 days | |||||||
2017-A | ||||||||
Securities Financing Transaction [Line Items] | ||||||||
Total Issued | $ 772,000,000 | |||||||
Weighted Average Life (in years) | 4 years 3 months 7 days | |||||||
LIBOR | 2015-B | ||||||||
Securities Financing Transaction [Line Items] | ||||||||
Basis spread on variable rate | 1.53% | |||||||
LIBOR | 2016-A | ||||||||
Securities Financing Transaction [Line Items] | ||||||||
Basis spread on variable rate | 1.38% | |||||||
LIBOR | 2016-B | ||||||||
Securities Financing Transaction [Line Items] | ||||||||
Basis spread on variable rate | 1.36% | |||||||
LIBOR | 2016-C | ||||||||
Securities Financing Transaction [Line Items] | ||||||||
Basis spread on variable rate | 1.15% | |||||||
LIBOR | 2017-A | ||||||||
Securities Financing Transaction [Line Items] | ||||||||
Basis spread on variable rate | 0.93% |
Borrowings - Financing VIEs (De
Borrowings - Financing VIEs (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Debt Outstanding | ||
Short Term | $ 0 | $ 0 |
Long Term | 2,872,231 | 2,167,979 |
Total | 2,872,231 | 2,167,979 |
Carrying Amount of Assets Securing Debt Outstanding | ||
Restricted Cash | 62,466 | 53,717 |
Other Assets | 45,841 | 52,153 |
Variable Interest Entity, Primary Beneficiary | ||
Debt Outstanding | ||
Short Term | 0 | 0 |
Long Term | 2,675,491 | 2,167,979 |
Total | 2,675,491 | 2,167,979 |
Carrying Amount of Assets Securing Debt Outstanding | ||
Loans | 3,172,113 | 2,562,156 |
Restricted Cash | 57,370 | 44,617 |
Other Assets | 224,768 | 160,783 |
Total | 3,454,251 | 2,767,556 |
Variable Interest Entity, Primary Beneficiary | Private Education Loan securitization | ||
Debt Outstanding | ||
Short Term | 0 | 0 |
Long Term | 2,675,491 | 2,167,979 |
Total | 2,675,491 | 2,167,979 |
Carrying Amount of Assets Securing Debt Outstanding | ||
Loans | 3,172,113 | 2,562,156 |
Restricted Cash | 57,370 | 44,617 |
Other Assets | 224,768 | 160,783 |
Total | 3,454,251 | 2,767,556 |
Variable Interest Entity, Primary Beneficiary | ABCP Facility | ||
Debt Outstanding | ||
Short Term | 0 | 0 |
Long Term | 0 | 0 |
Total | 0 | 0 |
Carrying Amount of Assets Securing Debt Outstanding | ||
Loans | 0 | 0 |
Restricted Cash | 0 | 0 |
Other Assets | 0 | 0 |
Total | $ 0 | $ 0 |
Derivative Financial Instrume51
Derivative Financial Instruments - Additional Information (Detail) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Notional value | $ 5,800,000 | |
Cash collateral (held) pledged | 0 | $ 0 |
Net derivatives | 38,300 | 44,600 |
Cash collateral held relative to derivative exposure | 900 | 1,000 |
Cash collateral pledged | 48,500 | 49,100 |
Chicago Mercantile Exchange | ||
Derivative [Line Items] | ||
Notional value | $ 4,600,000 | |
Percent of total notional derivative contracts | 80.50% | |
London Clearing House | ||
Derivative [Line Items] | ||
Notional value | $ 700,000 | |
Percent of total notional derivative contracts | 12.50% | |
Interest rate swaps | ||
Derivative [Line Items] | ||
Notional value | $ 5,762,829 | 5,177,388 |
Net position | (10,926) | (18,129) |
Designated as Hedging Instrument | Fair Value Hedges | ||
Derivative [Line Items] | ||
Net position | 36,700 | 30,000 |
Designated as Hedging Instrument | Fair Value Hedges | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional value | 4,071,595 | 3,628,062 |
Derivative instruments | 10,900 | 18,100 |
Increase (decrease) in fair value of collateral | 5,100 | |
Variation margin | 12,300 | |
Net position | (2,648) | $ (2,590) |
Designated as Hedging Instrument | Fair Value Hedges | Contracts other than CME | ||
Derivative [Line Items] | ||
Increase (decrease) in fair value of collateral | 5,100 | |
Variation margin | 17,800 | |
Cash collateral (held) pledged | $ (6,000) |
Derivative Financial Instrume52
Derivative Financial Instruments - Impact of Derivatives on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 326 | $ 7,808 |
Fair Value | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivatives | 36,700 | 30,000 |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 326 | 7,808 |
Derivative Liabilities | (11,252) | (25,937) |
Total net derivatives | (10,926) | (18,129) |
Interest rate swaps | Trading | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 0 |
Derivative Liabilities | (128) | (1,076) |
Total net derivatives | (128) | (1,076) |
Interest rate swaps | Cash Flow | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 326 | 0 |
Derivative Liabilities | (8,476) | (14,463) |
Total net derivatives | (8,150) | (14,463) |
Interest rate swaps | Fair Value | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 7,808 |
Derivative Liabilities | (2,648) | (10,398) |
Total net derivatives | $ (2,648) | $ (2,590) |
Derivative Financial Instrume53
Derivative Financial Instruments - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Other Assets | ||
Gross position | $ 326 | $ 7,808 |
Impact of master netting agreement | (326) | (7,808) |
Derivative values with impact of master netting agreements (as carried on balance sheet) | 0 | 0 |
Cash collateral (held) pledged | 0 | 0 |
Net position | 0 | 0 |
Other Liabilities | ||
Cash collateral (held) pledged | 48,500 | 49,100 |
Other Liabilities | ||
Other Liabilities | ||
Gross position | (11,252) | (25,937) |
Impact of master netting agreement | 326 | 7,808 |
Derivative values with impact of master netting agreements (as carried on balance sheet) | (10,926) | (18,129) |
Cash collateral (held) pledged | 47,616 | 48,134 |
Net position | $ 36,690 | $ 30,005 |
Derivative Financial Instrume54
Derivative Financial Instruments - Notional Values (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Derivatives, Fair Value [Line Items] | ||
Notional values | $ 5,800,000 | |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | 5,762,829 | $ 5,177,388 |
Interest rate swaps | Trading | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | 694,776 | 494,638 |
Interest rate swaps | Cash Flow Hedges | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | 996,458 | 1,054,688 |
Interest rate swaps | Fair Value Hedges | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | $ 4,071,595 | $ 3,628,062 |
Derivative Financial Instrume55
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statements of Income (Details) - Interest rate swaps - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Trading | ||||
Gain (loss) on derivatives, net | $ (3,397) | $ 4,947 | $ (7,567) | $ 7,231 |
Designated as Hedging Instrument | Fair Value Hedges | ||||
Fair Value Hedges | ||||
Hedge ineffectiveness gains (losses) recorded in earnings | (3,711) | 1,218 | (7,878) | (1,199) |
Realized gains (losses) recorded in interest expense | 2,881 | 7,391 | 7,428 | 14,650 |
Trading | ||||
Gain (loss) on derivatives, net | (830) | 8,609 | (450) | 13,451 |
Designated as Hedging Instrument | Cash Flow Hedges | ||||
Cash Flow Hedges | ||||
Hedge ineffectiveness losses recorded in earnings | (75) | (403) | (147) | (681) |
Realized losses recorded in interest expense | (2,669) | (4,586) | (6,008) | (9,207) |
Trading | ||||
Gain (loss) on derivatives, net | (2,744) | (4,989) | (6,155) | (9,888) |
Trading | ||||
Trading | ||||
Interest reclassification | (101) | 672 | (20) | 1,360 |
Realized gains (losses) recorded in earnings | 278 | 655 | (942) | 2,308 |
Gain (loss) on derivatives, net | $ 177 | $ 1,327 | $ (962) | $ 3,668 |
Derivative Financial Instrume56
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statement of Changes in Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Amount of gain (loss) recognized in other comprehensive income (loss) | $ (4,698) | $ (13,318) | $ (3,258) | $ (42,313) |
Less: amount of (loss) gain reclassified in interest expense | (2,669) | (4,586) | (6,008) | (9,207) |
Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax benefit (expense) | $ (2,029) | $ (8,732) | $ 2,750 | $ (33,106) |
Stockholders' Equity - Additio
Stockholders' Equity - Additional Detail (Details) - $ / shares shares in Millions | May 05, 2017 | Jun. 30, 2017 | Dec. 31, 2016 |
Series A Preferred Stock | |||
Class of Stock [Line Items] | |||
Preferred stock shares outstanding (in shares) | 3.3 | 0 | 3.3 |
Preferred stock, dividend rate, percentage | 6.97% | ||
Redemption price of preferred stock (in dollars per share) | $ 50 | ||
Common Stock | |||
Class of Stock [Line Items] | |||
Common stock closing price (in dollars per share) | $ 11.50 |
Stockholders' Equity - Common s
Stockholders' Equity - Common stock repurchased (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Equity [Abstract] | ||||
Shares repurchased related to employee stock-based compensation plans (in shares) | 981,477 | 263,218 | 2,584,964 | 1,391,927 |
Average purchase price per share (in dollars per share) | $ 12.39 | $ 6.68 | $ 12.12 | $ 6.12 |
Common shares issued (in shares) | 1,491,057 | 425,495 | 5,229,774 | 3,166,474 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Numerator: | ||||
Net income | $ 70,617 | $ 57,205 | $ 165,560 | $ 123,120 |
Preferred stock dividends | 3,974 | 5,243 | 9,549 | 10,382 |
Net income attributable to SLM Corporation common stock | $ 66,643 | $ 51,962 | $ 156,011 | $ 112,738 |
Denominator: | ||||
Weighted average shares used to compute basic EPS (in shares) | 431,245,000 | 427,942,000 | 430,572,000 | 427,526,000 |
Effect of dilutive securities: | ||||
Dilutive effect of stock options, restricted stock and restricted stock units and Employee Stock Purchase Plan (ESPP) (in shares) | 6,870,000 | 3,854,000 | 7,852,000 | 3,823,000 |
Weighted average shares used to compute diluted EPS (in shares) | 438,115,000 | 431,796,000 | 438,424,000 | 431,349,000 |
Basic earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.15 | $ 0.12 | $ 0.36 | $ 0.26 |
Diluted earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.15 | $ 0.12 | $ 0.35 | $ 0.26 |
Securities excluded from computation of EPS (in shares) | 0 | 1,000,000 | 0 | 4,000,000 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation of Financial Instruments that are Marked-to-Market on Recurring Basis (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Available-for-sale investments | $ 229,479 | $ 208,603 |
Derivative instruments | 0 | 0 |
Fair Value Measurements Recurring | ||
Assets | ||
Available-for-sale investments | 229,479 | 208,603 |
Derivative instruments | 326 | 7,808 |
Total earning assets | 229,805 | 216,411 |
Liabilities | ||
Derivative instruments | (11,252) | (25,937) |
Fair Value Measurements Recurring | Level 1 | ||
Assets | ||
Available-for-sale investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Total earning assets | 0 | 0 |
Liabilities | ||
Derivative instruments | 0 | 0 |
Fair Value Measurements Recurring | Level 2 | ||
Assets | ||
Available-for-sale investments | 229,479 | 208,603 |
Derivative instruments | 326 | 7,808 |
Total earning assets | 229,805 | 216,411 |
Liabilities | ||
Derivative instruments | (11,252) | (25,937) |
Fair Value Measurements Recurring | Level 3 | ||
Assets | ||
Available-for-sale investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Total earning assets | 0 | 0 |
Liabilities | ||
Derivative instruments | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values of Financial Assets and Liabilities, Including Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Earning assets | ||
Loans held for investment, net, difference | $ 1,788,579 | $ 1,382,864 |
Cash and cash equivalents, difference | 0 | 0 |
Tax indemnification receivable | 233,142 | 259,532 |
Derivative instruments | 0 | 0 |
Total earning assets, difference | 1,788,579 | 1,382,864 |
Interest-bearing liabilities | ||
Long-term borrowings, difference | (27,260) | 7,874 |
Total interest-bearing liabilities, difference | (37,589) | (31,565) |
Excess of net asset fair value over carrying value | 1,750,990 | 1,351,299 |
Certificates of deposit | ||
Interest-bearing liabilities | ||
Certificates of deposit, difference | (10,329) | (39,439) |
Fair Value | ||
Earning assets | ||
Loans held for investment, net | 18,349,005 | 16,520,786 |
Cash and cash equivalents | 1,318,168 | 1,918,793 |
Available-for-sale investments | 229,479 | 208,603 |
Accrued interest receivable | 926,270 | 766,106 |
Tax indemnification receivable | 233,142 | 259,532 |
Derivative instruments | 326 | 7,808 |
Total earning assets | 21,056,390 | 19,681,628 |
Interest-bearing liabilities | ||
Short-term borrowings | 0 | 0 |
Long-term borrowings | 2,899,491 | 2,160,105 |
Accrued interest payable | 27,114 | 21,058 |
Derivative instruments | 11,252 | 25,937 |
Total interest-bearing liabilities | 16,741,391 | 15,681,529 |
Fair Value | Money-market and savings accounts | ||
Interest-bearing liabilities | ||
Deposits | 8,015,192 | 7,963,925 |
Fair Value | Certificates of deposit | ||
Interest-bearing liabilities | ||
Deposits | 5,788,342 | 5,510,504 |
Carrying Value | ||
Earning assets | ||
Loans held for investment, net | 16,560,426 | 15,137,922 |
Cash and cash equivalents | 1,318,168 | 1,918,793 |
Available-for-sale investments | 229,479 | 208,603 |
Accrued interest receivable | 926,270 | 766,106 |
Tax indemnification receivable | 233,142 | 259,532 |
Derivative instruments | 326 | 7,808 |
Total earning assets | 19,267,811 | 18,298,764 |
Interest-bearing liabilities | ||
Short-term borrowings | 0 | 0 |
Long-term borrowings | 2,872,231 | 2,167,979 |
Accrued interest payable | 27,114 | 21,058 |
Derivative instruments | 11,252 | 25,937 |
Total interest-bearing liabilities | 16,703,802 | 15,649,964 |
Carrying Value | Money-market and savings accounts | ||
Interest-bearing liabilities | ||
Deposits | 8,015,192 | 7,963,925 |
Carrying Value | Certificates of deposit | ||
Interest-bearing liabilities | ||
Deposits | $ 5,778,013 | $ 5,471,065 |
Arrangements with Navient Cor62
Arrangements with Navient Corporation (Details) - USD ($) $ in Millions | Jun. 30, 2017 | Apr. 30, 2014 |
Related Party Transactions [Abstract] | ||
Deferred taxes to be indemnified | $ 283 | |
Amount remaining | $ 87 | |
Remaining balance of indemnification receivable in connection with the spin-off | 27 | |
Liability for uncertainty in income taxes | 28 | |
Liability for uncertainty in income taxes relating to historical transactions | $ 118 |
Regulatory Capital - Well Capit
Regulatory Capital - Well Capitalized Regulatory Requirements (Details) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Actual | ||
Common Equity Tier I Capital (to Risk-Weighted Assets) | $ 2,199,979 | $ 2,011,583 |
Tier 1 Capital (to Risk-Weighted Assets) | 2,199,979 | 2,011,583 |
Total Capital (to Risk-Weighted Assets) | 2,407,976 | 2,197,997 |
Tier 1 Capital (to Average Assets) | $ 2,199,979 | $ 2,011,583 |
Actual Ratio | ||
Common Equity Tier I Capital (to Risk-Weighted Assets) | 12.50% | 12.60% |
Tier 1 Capital (to Risk-Weighted Assets) | 12.50% | 12.60% |
Total Capital (to Risk-Weighted Assets) | 13.70% | 13.80% |
Tier 1 Capital (to Average Assets) | 11.50% | 11.10% |
Well Capitalized Regulatory Requirements, Amount | ||
Common Equity Tier I Capital (to Risk-Weighted Assets) | $ 1,139,897 | $ 1,038,638 |
Tier 1 Capital (to Risk-Weighted Assets) | 1,402,950 | 1,278,323 |
Total Capital (to Risk-Weighted Assets) | 1,753,687 | 1,597,904 |
Tier 1 Capital (to Average Assets) | $ 955,156 | $ 907,565 |
Well Capitalized Regulatory Requirements, Ratio | ||
Common Equity Tier I Capital (to Risk-Weighted Assets) | 6.50% | 6.50% |
Tier 1 Capital (to Risk-Weighted Assets) | 8.00% | 8.00% |
Total Capital (to Risk-Weighted Assets) | 10.00% | 10.00% |
Tier 1 Capital (to Average Assets) | 5.00% | 5.00% |
Regulatory Capital - Additional
Regulatory Capital - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Banking and Thrift [Abstract] | ||||
Dividends | $ 0 | $ 0 | $ 0 | $ 0 |
Commitments, Contingencies an65
Commitments, Contingencies and Guarantees - Additional Information (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2017USD ($)attorney_general_office | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual obligation | $ 1,200 |
Other liabilities reserve | $ 0.5 |
Loss contingency, loss emergence period | 1 year |
Number of attorneys general | attorney_general_office | 2 |