Document and Entity Information
Document and Entity Information | 6 Months Ended |
Jun. 30, 2018shares | |
Document And Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Jun. 30, 2018 |
Document Fiscal Year Focus | 2,018 |
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) | 435,380,601 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Assets | ||
Cash and cash equivalents | $ 2,043,789 | $ 1,534,339 |
Available-for-sale investments at fair value (cost of $185,749 and $247,607, respectively) | 178,145 | 244,088 |
Loans held for investment (net of allowance for losses of $295,277 and $251,475, respectively) | 20,308,581 | 18,567,641 |
Restricted cash | 114,659 | 101,836 |
Other interest-earning assets | 28,385 | 21,586 |
Accrued interest receivable | 1,161,161 | 967,482 |
Premises and equipment, net | 101,335 | 89,748 |
Tax indemnification receivable | 153,470 | 168,011 |
Other assets | 99,651 | 84,853 |
Total assets | 24,189,176 | 21,779,584 |
Liabilities | ||
Deposits | 16,745,957 | 15,505,383 |
Long-term borrowings | 4,217,119 | 3,275,270 |
Income taxes payable, net | 79,772 | 102,285 |
Upromise member accounts | 230,228 | 243,080 |
Other liabilities | 187,398 | 179,310 |
Total liabilities | 21,460,474 | 19,305,328 |
Commitments and contingencies | ||
Equity | ||
Preferred stock, par value $0.20 per share, 20 million shares authorized: Series B: 4 million and 4 million shares issued, respectively, at stated value of $100 per share | 400,000 | 400,000 |
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 449.4 million and 443.5 million shares issued, respectively | 89,882 | 88,693 |
Additional paid-in capital | 1,260,201 | 1,222,277 |
Accumulated other comprehensive income (net of tax expense of $7,448 and $1,696, respectively) | 23,216 | 2,748 |
Retained earnings | 1,096,359 | 868,182 |
Total SLM Corporation stockholders’ equity before treasury stock | 2,869,658 | 2,581,900 |
Less: Common stock held in treasury at cost: 14.0 million and 11.1 million shares, respectively | (140,956) | (107,644) |
Total equity | 2,728,702 | 2,474,256 |
Total liabilities and equity | $ 24,189,176 | $ 21,779,584 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Amortized cost | $ 185,749 | $ 247,607 |
Allowance for loan losses | $ 295,277 | $ 251,475 |
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) | 449,400,000 | 443,500,000 |
Tax expense for accumulated other comprehensive (loss) income | $ (7,448) | $ (1,696) |
Common stock held in treasury (in shares) | 14,000,000 | 11,100,000 |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest income: | ||||
Loans | $ 454,045 | $ 336,739 | $ 884,093 | $ 661,496 |
Investments | 1,694 | 2,201 | 3,641 | 4,344 |
Cash and cash equivalents | 6,572 | 3,155 | 11,808 | 5,743 |
Total interest income | 462,311 | 342,095 | 899,542 | 671,583 |
Interest expense: | ||||
Deposits | 90,605 | 50,730 | 168,061 | 95,583 |
Interest expense on short-term borrowings | 1,128 | 1,194 | 3,521 | 2,430 |
Interest expense on long-term borrowings | 29,628 | 20,278 | 54,396 | 35,601 |
Total interest expense | 121,361 | 72,202 | 225,978 | 133,614 |
Net interest income | 340,950 | 269,893 | 673,564 | 537,969 |
Less: provisions for credit losses | 63,267 | 50,215 | 117,198 | 75,511 |
Net interest income after provisions for credit losses | 277,683 | 219,678 | 556,366 | 462,458 |
Non-interest income: | ||||
Gains on sales of loans, net | 2,060 | 0 | 2,060 | 0 |
Losses on sales of securities, net | (1,549) | 0 | (1,549) | 0 |
Losses on derivatives and hedging activities, net | (5,268) | (3,609) | (1,376) | (8,987) |
Other income | 12,295 | 10,629 | 21,937 | 21,975 |
Total non-interest income | 7,538 | 7,020 | 21,072 | 12,988 |
Non-interest expenses: | ||||
Compensation and benefits | 60,245 | 51,007 | 128,562 | 106,471 |
FDIC assessment fees | 8,001 | 6,622 | 16,797 | 13,851 |
Other operating expenses | 66,977 | 53,622 | 114,738 | 93,606 |
Total operating expenses | 135,223 | 111,251 | 260,097 | 213,928 |
Acquired intangible asset amortization expense | 92 | 117 | 184 | 234 |
Total non-interest expenses | 135,315 | 111,368 | 260,281 | 214,162 |
Income before income tax expense | 149,906 | 115,330 | 317,157 | 261,284 |
Income tax expense | 40,074 | 44,713 | 81,071 | 95,724 |
Net income | 109,832 | 70,617 | 236,086 | 165,560 |
Preferred stock dividends | 3,920 | 3,974 | 7,317 | 9,549 |
Net income attributable to SLM Corporation common stock | $ 105,912 | $ 66,643 | $ 228,769 | $ 156,011 |
Basic earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.24 | $ 0.15 | $ 0.53 | $ 0.36 |
Average common shares outstanding (in shares) | 435,187 | 431,245 | 434,573 | 430,572 |
Diluted earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.24 | $ 0.15 | $ 0.52 | $ 0.35 |
Average common and common equivalent shares outstanding (in shares) | 439,445 | 438,115 | 439,212 | 438,424 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 109,832 | $ 70,617 | $ 236,086 | $ 165,560 |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) on investments | 42 | 167 | (4,085) | (1,400) |
Unrealized gains (losses) on cash flow hedges | 10,014 | (2,029) | 30,304 | 2,750 |
Total unrealized gains (losses) | 10,056 | (1,862) | 26,219 | 1,350 |
Income tax (expense) benefit | (2,441) | 701 | (6,343) | (531) |
Other comprehensive income (loss), net of tax (expense) benefit | 7,615 | (1,161) | 19,876 | 819 |
Total comprehensive income | $ 117,447 | $ 69,456 | $ 255,962 | $ 166,379 |
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 | Retained Earnings | Retained EarningsSeries A Preferred Stock | Retained EarningsSeries B Preferred Stock |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Cumulative effect of the adoption of the stock compensation standard amendment | $ 165 | $ 429 | $ (264) | |||||||||
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, net of tax | 819 | 819 | ||||||||||
Total comprehensive income | 166,379 | |||||||||||
Cash dividends: | ||||||||||||
Cash dividends | $ (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) | (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 | |||||
Beginning Balance (in shares) at Dec. 31, 2017 | 4,000,000 | 432,376,250 | 11,087,337 | |||||||||
Beginning Balance, shares issued (in shares) at Dec. 31, 2017 | 443,463,587 | |||||||||||
Beginning Balance at Dec. 31, 2017 | 2,474,256 | $ 400,000 | $ 88,693 | $ (107,644) | 1,222,277 | 2,748 | 868,182 | |||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||
Net income | 236,086 | 236,086 | ||||||||||
Other comprehensive income, net of tax | 19,876 | 19,876 | ||||||||||
Total comprehensive income | $ 255,962 | |||||||||||
Reclassification resulting from the adoption of ASU No. 2018-02 | Accounting Standards Update 2018-02 | 592 | (592) | ||||||||||
Cash dividends: | ||||||||||||
Cash dividends | $ (7,317) | $ (7,317) | ||||||||||
Issuance of common shares (in shares) | 5,944,946 | 5,944,946 | ||||||||||
Issuance of common shares | $ 18,852 | $ 1,189 | 17,663 | |||||||||
Stock-based compensation expense | $ 20,261 | 20,261 | ||||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (2,940,595) | (2,940,595) | (2,940,595) | |||||||||
Shares repurchased related to employee stock-based compensation plans | $ (33,312) | $ (33,312) | ||||||||||
Ending Balance (in shares) at Jun. 30, 2018 | 4,000,000 | 435,380,601 | 14,027,932 | |||||||||
Ending Balance, shares issued (in shares) at Jun. 30, 2018 | 449,408,533 | |||||||||||
Ending Balance at Jun. 30, 2018 | $ 2,728,702 | $ 400,000 | $ 89,882 | $ (140,956) | $ 1,260,201 | $ 23,216 | $ 1,096,359 |
CONSOLIDATED STATEMENTS OF CHA7
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Series A Preferred Stock | ||
Preferred stock dividend rate (in dollars per share) | $ 1.74 | |
Series B Preferred Stock | ||
Preferred stock dividend rate (in dollars per share) | $ 1.81 | $ 1.39 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Operating activities | ||
Net income | $ 236,086 | $ 165,560 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Provisions for credit losses | 117,198 | 75,511 |
Income tax expense | 81,071 | 95,724 |
Amortization of brokered deposit placement fee | 5,847 | 4,339 |
Amortization of ABCP Facility upfront fee | 575 | 668 |
Amortization of deferred loan origination costs and loan premium/(discounts), net | 5,115 | 4,069 |
Net amortization of discount on investments | 985 | 872 |
Income on tax indemnification receivable | (3,453) | (3,427) |
Depreciation of premises and equipment | 6,475 | 5,365 |
Amortization of acquired intangibles | 184 | 234 |
Stock-based compensation expense | 20,261 | 15,500 |
Unrealized losses on derivatives and hedging activities, net | 1,175 | 10,833 |
Gains on sales of loans, net | 2,060 | 0 |
Losses on sales of securities, net | (1,549) | 0 |
Other adjustments to net income, net | 3,296 | 2,998 |
Changes in operating assets and liabilities: | ||
Increase in accrued interest receivable | (407,813) | (324,684) |
(Increase) decrease in other interest-earning assets | (6,799) | 588 |
Decrease in tax indemnification receivable | 17,994 | 29,817 |
Increase in other assets | (51,451) | (20,586) |
Decrease in income taxes payable, net | (107,973) | (139,775) |
Increase in accrued interest payable | 11,295 | 3,275 |
Decrease in payable due to entity that is a subsidiary of Navient | (763) | (1,244) |
Decrease in other liabilities | (8,288) | (35,267) |
Total adjustments | (315,580) | (275,190) |
Total net cash used in operating activities | (79,494) | (109,630) |
Investing activities | ||
Loans acquired and originated | (3,162,764) | (2,347,344) |
Net proceeds from sales of loans held for investment | 44,832 | 3,472 |
Proceeds from claim payments | 27,000 | 24,907 |
Net decrease in loans held for investment | 1,442,627 | 980,234 |
Purchases of available-for-sale securities | (2,914) | (40,124) |
Proceeds from sales and maturities of available-for-sale securities | 62,237 | 16,976 |
Total net cash used in investing activities | (1,588,982) | (1,361,879) |
Financing activities | ||
Brokered deposit placement fee | (18,885) | (5,329) |
Net increase in certificates of deposit | 947,437 | 308,069 |
Net increase in other deposits | 331,926 | 51,447 |
Borrowings collateralized by loans in securitization trusts - issued | 1,350,587 | 767,244 |
Borrowings collateralized by loans in securitization trusts - repaid | (411,904) | (262,567) |
Issuance costs for unsecured debt offering | 0 | (423) |
Unsecured debt issued | 0 | 197,000 |
Borrowings under ABCP Facility | 300,000 | 0 |
Repayment of borrowings under ABCP Facility | (300,000) | 0 |
Fees paid on ABCP Facility | (1,095) | (1,259) |
Redemption of Preferred Stock Series A | 0 | (165,000) |
Preferred stock dividends paid | (7,317) | (9,549) |
Net cash provided by financing activities | 2,190,749 | 879,633 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 522,273 | (591,876) |
Cash, cash equivalents and restricted cash at beginning of period | 1,636,175 | 1,972,510 |
Cash, cash equivalents and restricted cash at beginning of period | 2,158,448 | 1,380,634 |
Cash disbursements made for: | ||
Interest | 207,872 | 121,601 |
Income taxes paid | 111,173 | 139,828 |
Income taxes refunded | (3,790) | (833) |
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Balance Sheets: | ||
Total cash, cash equivalents and restricted cash | $ 1,636,175 | $ 1,972,510 |
Significant Accounting Policies
Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 are not necessarily indicative of the results for the year ending December 31, 2018 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, 2017 (the “2017 Form 10-K”). Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. We consolidate any variable interest entity (“VIE”) where we have determined we are the primary beneficiary. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. Recently Issued and Adopted Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” Whereas restricted cash balances have traditionally been excluded from the statement of cash flows, this ASU requires restricted cash and restricted cash equivalents to be included within the beginning and ending totals of cash, cash equivalents and restricted cash presented on the statement of cash flows for all periods presented. Restricted cash and restricted cash equivalent inflows and outflows with external parties are required to be classified within the operating, investing, and/or financing activity sections of the statement of cash flows, whereas transfers between cash and cash equivalents and restricted cash and restricted cash equivalents should no longer be presented on the statement of cash flows. ASU No. 2016-18 also requires (a) the nature of the restrictions to be disclosed to help provide information about the sources and uses of these balances during a reporting period and (b) a reconciliation of the cash, cash equivalents and restricted cash totals on the statement of cash flows to the related balance sheet line items when cash, cash equivalents, and restricted cash are presented in more than one line item on the balance sheet. The reconciliation can be presented either on the face of the statement of cash flows or in the notes to the financial statements and must be provided for each period that a balance sheet is presented. We adopted the new accounting pronouncement on January 1, 2018, and the adoption did not have a material impact to our statement of cash flows. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the tax law and tax rate changes under the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) enacted on December 22, 2017. Under the Tax Act, deferred taxes were adjusted to reflect the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate, which left the tax effects on items within accumulated other comprehensive income stranded at an inappropriate tax rate. This guidance is effective for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years, with early adoption permitted. We adopted this standard effective January 1, 2018 and recorded a $ 0.6 million reclass from accumulated other comprehensive income to retained earnings in the first quarter of 2018. |
Investments
Investments | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The amortized cost and fair value of securities available for sale are as follows: June 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Mortgage-backed securities $ 167,203 $ 119 $ (6,906 ) $ 160,416 Utah Housing Corporation bonds 18,546 — (817 ) 17,729 Total $ 185,749 $ 119 $ (7,723 ) $ 178,145 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Mortgage-backed securities $ 227,607 $ 650 $ (3,210 ) $ 225,047 Utah Housing Corporation bonds 20,000 — (959 ) 19,041 Total $ 247,607 $ 650 $ (4,169 ) $ 244,088 The following table summarizes the amount of gross unrealized losses for our mortgage-backed securities and Utah Housing Corporation bonds and the estimated fair value for securities having gross unrealized losses, categorized by length of time the securities have been in an unrealized loss position: Less than 12 months 12 months or more Total Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value As of June 30, 2018: Mortgage-backed securities $ (1,568 ) $ 49,747 $ (5,338 ) $ 107,182 $ (6,906 ) $ 156,929 Utah Housing Corporation bonds — — (817 ) 17,729 (817 ) 17,729 Total $ (1,568 ) $ 49,747 $ (6,155 ) $ 124,911 $ (7,723 ) $ 174,658 As of December 31, 2017: Mortgage-backed securities $ (772 ) $ 77,356 $ (2,438 ) $ 110,500 $ (3,210 ) $ 187,856 Utah Housing Corporation bonds (77 ) 4,923 (882 ) 14,118 (959 ) 19,041 Total $ (849 ) $ 82,279 $ (3,320 ) $ 124,618 $ (4,169 ) $ 206,897 Our investment portfolio is comprised primarily of mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, with amortized costs of $72 million , $49 million , and $46 million , respectively, at June 30, 2018. We own these securities to meet our requirements under the Community Reinvestment Act. In the second quarter of 2018, we elected to sell nine securities totaling $41 million to better align the portfolio with the Community Reinvestment Act requirements, and we recognized a $2 million loss upon the sale of those securities. As of June 30, 2018, 75 of the 84 separate mortgage-backed securities in our investment portfolio had unrealized losses, and 35 of the 75 securities in a net loss position were issued under Ginnie Mae programs that carry a full faith and credit guarantee from the U.S. Government. The remaining securities in a net loss position carry a principal and interest guarantee by Fannie Mae or Freddie Mac, respectively. We have the ability and the intent to hold these securities for a period of time sufficient for the market price to recover to at least the adjusted amortized cost of the security. As of December 31, 2017, 62 of the 92 separate mortgage-backed securities in our investment portfolio had unrealized losses, and 31 of the 62 securities in a net loss position were issued under Ginnie Mae programs that carry a full faith and credit guarantee from the U.S. Government. The remainder carried a principal and interest guarantee by Fannie Mae or Freddie Mac, respectively. We also invest in Utah Housing Corporation bonds for the purpose of complying with the Community Reinvestment Act. These bonds are Aa3 rated by Moody’s Investors Service. The amortized cost of the investment on the consolidated balance sheet at June 30, 2018 and December 31, 2017 was $19 million and $20 million , respectively. We have the intent and ability to hold these bonds for a period of time sufficient for the market price to recover to at least the adjusted amortized cost of the security. As of June 30, 2018, the amortized cost and fair value of securities, by contractual maturities, are summarized below. Contractual maturities versus actual maturities may differ due to the effect of prepayments. Year of Maturity Amortized Cost Estimated Fair Value 2038 $ 269 $ 284 2039 3,099 3,203 2042 10,099 9,381 2043 15,371 14,823 2044 24,183 23,464 2045 28,117 26,883 2046 41,807 39,789 2047 59,890 57,416 2048 2,914 2,902 Total $ 185,749 $ 178,145 The mortgage-backed securities have been pledged to the Federal Reserve Bank (the “FRB”) as collateral against any advances and accrued interest under the Primary Credit lending program sponsored by the FRB. We had $ 161 million and $218 million par value of mortgage-backed securities pledged to this borrowing facility at June 30, 2018 and December 31, 2017, respectively, as discussed further in Note 6, “Borrowings.” |
Loans Held for Investment
Loans Held for Investment | 6 Months Ended |
Jun. 30, 2018 | |
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 acquiring Personal Loans from third parties in the fourth quarter of 2016 and originating Personal Loans in the first quarter of 2018. 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, 2018 , and December 31, 2017, 73 percent and 77 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 encourage customers to make payments while in school. In connection with the separation of Navient Corporation (“Navient”) from SLM (the “Spin-Off”), we retained the right to require Navient to purchase delinquent loans (at fair value) when the borrower has a lending relationship with both us and Navient (“Split Loans”). In the second quarter of 2018, we sold our remaining $43 million portfolio of Split Loans (both current and non-current loans) to Navient and recognized a net gain of $2 million . 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, 2018 2017 Private Education Loans: Fixed rate $ 5,086,329 $ 4,000,447 Variable rate 13,601,698 13,431,720 Total Private Education Loans, gross 18,688,027 17,432,167 Deferred origination costs and unamortized premium/(discount) 61,908 56,378 Allowance for loan losses (261,695 ) (243,715 ) Total Private Education Loans, net 18,488,240 17,244,830 FFELP Loans 885,357 927,660 Deferred origination costs and unamortized premium/(discount) 2,496 2,631 Allowance for loan losses (1,073 ) (1,132 ) Total FFELP Loans, net 886,780 929,159 Personal Loans (fixed rate) 966,080 400,280 Deferred origination costs and unamortized premium/(discount) (10 ) — Allowance for loan losses (32,509 ) (6,628 ) Total Personal Loans, net 933,561 393,652 Loans held for investment, net $ 20,308,581 $ 18,567,641 The estimated weighted average life of education loans in our portfolio was approximately 5.3 years and 5.5 years at June 30, 2018 and December 31, 2017 , 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, 2018 2017 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 18,764,768 9.03 % $ 15,687,803 8.33 % FFELP Loans 898,095 4.51 980,478 3.87 Personal Loans 815,356 10.65 60,910 9.28 Total portfolio $ 20,478,219 $ 16,729,191 Six Months Ended June 30, 2018 2017 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 18,712,533 8.93 % $ 15,569,337 8.30 % FFELP Loans 908,846 4.38 991,740 3.78 Personal Loans 672,792 10.65 48,464 9.24 Total portfolio $ 20,294,171 $ 16,609,541 |
Allowance for Loan Losses
Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses Our provision for credit losses represents the periodic expense of maintaining an allowance sufficient to absorb incurred probable losses in the held-for-investment loan portfolios. The evaluation of the allowance for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. We believe the allowance for loan losses is appropriate to cover probable losses incurred in the loan portfolios. Allowance for Loan Losses Metrics Allowance for Loan Losses Three Months Ended June 30, 2018 FFELP Loans Private Education Loans Personal Loans Total Allowance for Loan Losses Beginning balance $ 1,113 $ 252,103 $ 18,907 $ 272,123 Total provision 252 46,264 16,378 62,894 Net charge-offs: Charge-offs (292 ) (42,270 ) (2,872 ) (45,434 ) Recoveries — 5,598 96 5,694 Net charge-offs (292 ) (36,672 ) (2,776 ) (39,740 ) Loan sales (1) — — — — Ending Balance $ 1,073 $ 261,695 $ 32,509 $ 295,277 Allowance: Ending balance: individually evaluated for impairment $ — $ 113,343 $ — $ 113,343 Ending balance: collectively evaluated for impairment $ 1,073 $ 148,352 $ 32,509 $ 181,934 Loans: Ending balance: individually evaluated for impairment $ — $ 1,121,816 $ — $ 1,121,816 Ending balance: collectively evaluated for impairment $ 885,357 $ 17,566,211 $ 966,080 $ 19,417,648 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.17 % 1.14 % 1.36 % Allowance as a percentage of the ending total loan balance 0.12 % 1.40 % 3.37 % Allowance as a percentage of the ending loans in repayment (2) 0.16 % 2.02 % 3.37 % Allowance coverage of net charge-offs (annualized) 0.92 1.78 2.93 Ending total loans, gross $ 885,357 $ 18,688,027 $ 966,080 Average loans in repayment (2) $ 698,197 $ 12,909,623 $ 815,741 Ending loans in repayment (2) $ 680,802 $ 12,979,523 $ 966,080 ____________ (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, 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 Six Months Ended June 30, 2018 FFELP Loans Private Education Loans Personal Loans Total Allowance for Loan Losses Beginning balance $ 1,132 $ 243,715 $ 6,628 $ 251,475 Total provision 483 88,134 29,826 118,443 Net charge-offs: Charge-offs (542 ) (79,623 ) (4,072 ) (84,237 ) Recoveries — 10,685 127 10,812 Net charge-offs (542 ) (68,938 ) (3,945 ) (73,425 ) Loan sales (1) — (1,216 ) — (1,216 ) Ending Balance $ 1,073 $ 261,695 $ 32,509 $ 295,277 Allowance: Ending balance: individually evaluated for impairment $ — $ 113,343 $ — $ 113,343 Ending balance: collectively evaluated for impairment $ 1,073 $ 148,352 $ 32,509 $ 181,934 Loans: Ending balance: individually evaluated for impairment $ — $ 1,121,816 $ — $ 1,121,816 Ending balance: collectively evaluated for impairment $ 885,357 $ 17,566,211 $ 966,080 $ 19,417,648 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.15 % 1.08 % 1.17 % Allowance as a percentage of the ending total loan balance 0.12 % 1.40 % 3.37 % Allowance as a percentage of the ending loans in repayment (2) 0.16 % 2.02 % 3.37 % Allowance coverage of net charge-offs (annualized) 0.99 1.90 4.12 Ending total loans, gross $ 885,357 $ 18,688,027 $ 966,080 Average loans in repayment (2) $ 709,010 $ 12,810,072 $ 673,552 Ending loans in repayment (2) $ 680,802 $ 12,979,523 $ 966,080 ____________ (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. Troubled Debt Restructurings (“TDRs”) All of our loans are collectively assessed for impairment, except for loans classified as TDRs (where we conduct individual assessments of impairment). We modify the terms of loans for certain borrowers when we believe such modifications may increase the ability and willingness of a borrower to make payments and thus increase the ultimate overall amount collected on a loan. These modifications generally take the form of a forbearance, a temporary interest rate reduction or an extended repayment plan. The majority of our loans that are considered TDRs involve a temporary forbearance of payments and do not change the contractual interest rate of the loan. Once a loan qualifies for TDR status, it remains a TDR for allowance purposes for the remainder of its life. As of June 30, 2018 , and December 31, 2017 , approximately 61 percent and 66 percent , respectively, of TDRs were classified as such due to their forbearance status. For additional information, see Note 6, “Allowance for Loan Losses” in our 2017 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, 2018 and December 31, 2017 , 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, 2018 TDR Loans $ 1,139,417 $ 1,121,816 $ 113,343 December 31, 2017 TDR Loans $ 1,007,141 $ 990,351 $ 94,682 The following table provides the average recorded investment and interest income recognized for our TDR loans. Three Months Ended 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 1,105,042 $ 18,718 $ 766,171 $ 14,310 Six Months Ended 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 1,069,721 $ 36,565 $ 718,727 $ 26,567 The following table provides information regarding the loan status and aging of TDR loans. June 30, December 31, 2018 2017 Balance % Balance % TDR loans in in-school/grace/deferment (1) $ 57,595 $ 51,745 TDR loans in forbearance (2) 59,682 69,652 TDR loans in repayment (3) and percentage of each status: Loans current 917,138 91.3 % 774,222 89.1 % Loans delinquent 31-60 days (4) 45,080 4.5 48,377 5.6 Loans delinquent 61-90 days (4) 25,580 2.5 28,778 3.3 Loans delinquent greater than 90 days (4) 16,741 1.7 17,577 2.0 Total TDR loans in repayment 1,004,539 100.0 % 868,954 100.0 % Total TDR loans, gross $ 1,121,816 $ 990,351 _____ (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 include 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 $ 116,478 $ 12,764 $ 18,254 $ 134,489 $ 12,215 $ 23,679 Six Months Ended Six Months Ended Modified Loans (1) Charge-offs Payment- Default Modified Loans (1) Charge-offs Payment- Default TDR Loans $ 200,652 $ 28,224 $ 47,988 $ 246,695 $ 22,738 $ 49,113 _____ (1) Represents the principal balance of loans that have been modified during the period and resulted in a TDR. Private Education Loan Key Credit Quality Indicators FFELP Loans are at least 97 percent insured and guaranteed as to their principal and accrued interest in the event of default; therefore, there are no key credit quality indicators associated with FFELP Loans. For Private Education Loans, the key credit quality indicators are FICO scores, the existence of a cosigner, the loan status and loan seasoning. The FICO scores are assessed at original approval and periodically refreshed/updated through the loan’s term. The following table highlights the gross principal balance of our Private Education Loan portfolio stratified by key credit quality indicators. Private Education Loans Credit Quality Indicators June 30, 2018 December 31, 2017 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance Cosigners: With cosigner $ 16,757,587 90 % $ 15,658,539 90 % Without cosigner 1,930,440 10 1,773,628 10 Total $ 18,688,027 100 % $ 17,432,167 100 % FICO at Original Approval (2) : Less than 670 $ 1,256,273 7 % $ 1,153,591 6 % 670-699 2,814,316 15 2,596,959 15 700-749 6,152,102 33 5,714,554 33 Greater than or equal to 750 8,465,336 45 7,967,063 46 Total $ 18,688,027 100 % $ 17,432,167 100 % Seasoning (3) : 1-12 payments $ 4,837,671 26 % $ 4,256,592 24 % 13-24 payments 3,209,308 17 3,229,465 19 25-36 payments 2,471,002 13 2,429,238 14 37-48 payments 1,582,586 9 1,502,327 9 More than 48 payments 1,337,067 7 1,256,813 7 Not yet in repayment 5,250,393 28 4,757,732 27 Total $ 18,688,027 100 % $ 17,432,167 100 % (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. 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, 2018 2017 Balance % Balance % Loans in-school/grace/deferment (1) $ 5,250,393 $ 4,757,732 Loans in forbearance (2) 458,111 468,402 Loans in repayment and percentage of each status: Loans current 12,697,362 97.8 % 11,911,128 97.6 % Loans delinquent 31-60 days (3) 166,322 1.3 179,002 1.5 Loans delinquent 61-90 days (3) 75,534 0.6 78,292 0.6 Loans delinquent greater than 90 days (3) 40,305 0.3 37,611 0.3 Total Private Education Loans in repayment 12,979,523 100.0 % 12,206,033 100.0 % Total Private Education Loans, gross 18,688,027 17,432,167 Private Education Loans deferred origination costs and unamortized premium/(discount) 61,908 56,378 Total Private Education Loans 18,749,935 17,488,545 Private Education Loans allowance for losses (261,695 ) (243,715 ) Private Education Loans, net $ 18,488,240 $ 17,244,830 Percentage of Private Education Loans in repayment 69.5 % 70.0 % Delinquencies as a percentage of Private Education Loans in repayment 2.2 % 2.4 % Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance 3.4 % 3.7 % (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. Personal Loan Key Credit Quality Indicators For Personal Loans, the key credit quality indicators are FICO scores, loan seasoning and loan status. 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, 2018 December 31, 2017 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance FICO at Original Approval: Less than 670 $ 70,773 7 % $ 32,156 8 % 670-699 275,210 29 114,731 29 700-749 441,824 46 182,025 45 Greater than or equal to 750 178,273 18 71,368 18 Total $ 966,080 100 % $ 400,280 100 % Seasoning (2) : 0-12 payments $ 932,863 97 % $ 400,280 100 % 13-24 payments 33,217 3 — — 25-36 payments — — — — 37-48 payments — — — — More than 48 payments — — — — Total $ 966,080 100 % $ 400,280 100 % (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 Personal Loans. Personal Loans June 30, December 31, 2018 2017 Balance % Balance % Loans in repayment and percentage of each status: Loans current $ 960,865 99.5 % $ 398,988 99.7 % Loans delinquent 31-60 days (1) 2,376 0.2 761 0.2 Loans delinquent 61-90 days (1) 1,594 0.2 340 0.1 Loans delinquent greater than 90 days (1) 1,245 0.1 191 — Total Personal Loans in repayment 966,080 100.0 % 400,280 100.0 % Total Personal Loans, gross 966,080 400,280 Personal Loans unamortized discount (10 ) — Total Personal Loans 966,070 400,280 Personal Loans allowance for losses (32,509 ) (6,628 ) Personal Loans, net $ 933,561 $ 393,652 Delinquencies as a percentage of Personal Loans in repayment 0.5 % 0.3 % _______ (1) 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 Loans Accrued Interest Receivable Total Interest Receivable Greater Than 90 Days Past Due Allowance for Uncollectible Interest June 30, 2018 $ 1,141,135 $ 1,530 $ 5,852 December 31, 2017 $ 951,138 $ 1,372 $ 4,664 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits The following table summarizes total deposits at June 30, 2018 and December 31, 2017 . June 30, December 31, 2018 2017 Deposits - interest bearing $ 16,743,885 $ 15,504,330 Deposits - non-interest bearing 2,072 1,053 Total deposits $ 16,745,957 $ 15,505,383 Our total deposits of $ 16.7 billion were comprised of $ 8.7 billion in brokered deposits and $ 8.0 billion in retail and other deposits at June 30, 2018 , compared to total deposits of $15.5 billion , which were comprised of $8.2 billion in brokered deposits and $7.3 billion in retail and other deposits, at December 31, 2017. Interest bearing deposits as of June 30, 2018 and December 31, 2017 consisted of retail and brokered non-maturity savings deposits, retail and brokered non-maturity money market deposits (“MMDAs”) and retail and brokered certificates of deposit (“CDs”). Interest bearing deposits include deposits from Educational 529 and Health Savings plans that diversify our funding sources and additional deposits we consider to be core. These and other large omnibus accounts, aggregating the deposits of many individual depositors, represented $5.7 billion of our deposit total as of June 30, 2018 , compared with $ 5.5 billion at December 31, 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 $ 3 million and $2 million in the three months ended June 30, 2018 and 2017, respectively, and placement fee expense of $ 6 million and $ 4 million in the six months ended June 30, 2018 and 2017, respectively. Fees paid to third-party brokers related to brokered CDs were $ 12 million and $3 million for the three months ended June 30, 2018 and 2017, respectively, and fees paid to third-party brokers related to brokered CDs were $ 19 million and $5 million for the six months ended June 30, 2018 and 2017, respectively. Interest bearing deposits at June 30, 2018 and December 31, 2017 are summarized as follows: June 30, 2018 December 31, 2017 Amount Qtr.-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 8,113,708 2.21 % $ 7,731,966 1.80 % Savings 682,242 1.59 738,243 1.10 Certificates of deposit 7,947,935 2.54 7,034,121 1.93 Deposits - interest bearing $ 16,743,885 $ 15,504,330 ____________ (1) Includes the effect of interest rate swaps in effective hedge relationships. As of June 30, 2018 , and December 31, 2017 , there were $ 406 million and $396 million, respectively, of deposits exceeding Federal Deposit Insurance Corporation (“FDIC”) insurance limits. Accrued interest on deposits was $39 million and $28 million at June 30, 2018 and December 31, 2017 , respectively. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 and December 31, 2017 . June 30, 2018 December 31, 2017 Short-Term Long-Term Total Short-Term Long-Term Total Unsecured borrowings: Unsecured debt $ — $ 196,943 $ 196,943 $ — $ 196,539 $ 196,539 Total unsecured borrowings — 196,943 196,943 — 196,539 196,539 Secured borrowings: Private Education Loan term securitizations: Fixed rate — 2,125,035 2,125,035 — 1,565,760 1,565,760 Variable rate — 1,895,141 1,895,141 — 1,512,971 1,512,971 Total Private Education Loan term securitizations — 4,020,176 4,020,176 — 3,078,731 3,078,731 ABCP Facility — — — — — — Total secured borrowings — 4,020,176 4,020,176 — 3,078,731 3,078,731 Total $ — $ 4,217,119 $ 4,217,119 $ — $ 3,275,270 $ 3,275,270 Short-term Borrowings Asset-Backed Commercial Paper Funding Facility On February 21, 2018, we amended and extended the maturity of our $750 million ABCP Facility. 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 0.85 percent on outstandings. The amended ABCP Facility extends the revolving period, during which we may borrow, repay and reborrow funds, until February 20, 2019. The scheduled amortization period, during which amounts outstanding under the ABCP Facility must be repaid, ends on February 20, 2020 (or earlier, if certain material adverse events occur). At both June 30, 2018 and December 31, 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. At June 30, 2018, the outstanding balance was $197 million . Secured Financings On March 21, 2018, we executed our $670 million SMB Private Education Loan Trust 2018-A term ABS transaction, which was accounted for as a secured financing. We sold $670 million of notes to third parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $668 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.43 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 0.78 percent . At June 30, 2018 , $681 million of our Private Education Loans were encumbered because of this transaction. On June 20, 2018, we executed our $687 million SMB Private Education Loan Trust 2018-B term ABS transaction, which was accounted for as a secured financing. We sold $687 million of notes to third parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $683 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.40 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 0.76 percent . At June 30, 2018, $711 million of our Private Education Loans were encumbered because 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: 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 2017-B November 2017 676,000 1-month LIBOR plus 0.80% 4.07 Total notes issued in 2017 $ 1,448,000 Total loan and accrued interest amount securitized at inception in 2017 $ 1,606,804 2018-A March 2018 $ 670,000 1-month LIBOR plus 0.78% 4.43 2018-B June 2018 686,500 1-month LIBOR plus 0.76% 4.40 Total notes issued in 2018 $ 1,356,500 Total loan and accrued interest amount securitized at inception in 2018 $ 1,504,121 ____________ (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, 2018 and December 31, 2017 , respectively: June 30, 2018 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 $ — $ 4,020,176 $ 4,020,176 $ 4,793,290 $ 105,963 $ 334,333 $ 5,233,586 ABCP Facility — — — — — 706 706 Total $ — $ 4,020,176 $ 4,020,176 $ 4,793,290 $ 105,963 $ 335,039 $ 5,234,292 December 31, 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 $ — $ 3,078,731 $ 3,078,731 $ 3,691,024 $ 95,966 $ 240,208 $ 4,027,198 ABCP Facility — — — — 1,017 161 1,178 Total $ — $ 3,078,731 $ 3,078,731 $ 3,691,024 $ 96,983 $ 240,369 $ 4,028,376 ____ (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, 2018 . 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 six months ended June 30, 2018 or in the year ended December 31, 2017 . We established an account at the FRB to meet eligibility requirements for access to the Primary Credit borrowing facility at the FRB’s Discount Window (the “Window”). The Primary Credit borrowing facility is a lending program available to depository institutions that are in generally sound financial condition. All borrowings at the Window must be fully collateralized. We can pledge 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, 2018 and December 31, 2017 , 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 six months ended June 30, 2018 or in the year ended December 31, 2017 . |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2018 | |
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 2017 Form 10-K for a full discussion of our risk management strategy. Title VII of the Dodd-Frank 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. Two of the central counterparties we use are the Chicago Mercantile Exchange (“CME”) and the London Clearing House (“LCH”). 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, and the LCH rule changes, which became effective in January 2018, result in all variation margin payments on derivatives cleared through the CME and LCH being accounted for as legal settlement. As of June 30, 2018 , $5.9 billion notional of our derivative contracts were cleared on the CME and $0.6 billion were cleared on the LCH. The derivative contracts cleared through the CME and LCH represent 90.3 percent and 9.7 percent , respectively, of our total notional derivative contracts of $6.5 billion at June 30, 2018 . For derivatives cleared through the CME and LCH, 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 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, 2018 and December 31, 2017, 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 $30 million and $20 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, 2018 and December 31, 2017 , and their impact on earnings and other comprehensive income for the three and six months ended June 30, 2018 and 2017. Please refer to Note 11, “Derivative Financial Instruments” in our 2017 Form 10-K for a full discussion of cash flow hedges, fair value hedges, and trading activities. Impact of Derivatives on the Consolidated Balance Sheet Cash Flow Hedges Fair Value Hedges Trading Total June 30, December 31, June 30, December June 30, December June 30, December 2018 2017 2018 2017 2018 2017 2018 2017 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ 959 $ — $ 444 $ 630 $ — $ 182 $ 1,403 $ 812 Derivative Liabilities: (2) Interest rate swaps Interest rate — (2,584 ) — — (92 ) — (92 ) (2,584 ) Total net derivatives $ 959 $ (2,584 ) $ 444 $ 630 $ (92 ) $ 182 $ 1,311 $ (1,772 ) ___________ (1) Fair values reported include variation margin as legal settlement of the derivative contract and accrued interest. Assets and liabilities are presented without consideration of master netting agreements. Derivatives are carried on the balance sheet based on net position by counterparty under master netting agreements and classified in other assets or other liabilities depending on whether in a net positive or negative position. (2) The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities June 30, December 31, June 30, December 31, 2018 2017 2018 2017 Gross position (1) $ 1,403 $ 812 $ (92 ) $ (2,584 ) Impact of master netting agreement (92 ) (812 ) 92 812 Derivative values with impact of master netting agreements (as carried on balance sheet) 1,311 — — (1,772 ) Cash collateral pledged (2) 28,385 — — 21,586 Net position $ 29,696 $ — $ — $ 19,814 __________ (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. (2) Cash collateral 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, 2018 2017 2018 2017 2018 2017 2018 2017 Notional Values Interest rate swaps $ 1,344,791 $ 1,408,649 $ 3,867,204 $ 3,062,849 $ 1,317,494 $ 987,577 $ 6,529,489 $ 5,459,075 Impact of Derivatives on the Consolidated Statements of Income Three Months Ended Six Months Ended 2018 2017 2018 2017 Fair Value Hedges Interest rate swaps: Hedge ineffectiveness realized gains (losses) recorded in earnings (1) $ (2,914 ) $ (3,711 ) $ 2,939 $ (7,878 ) Realized gains (losses) recorded in interest expense (2,812 ) 2,881 (3,326 ) 7,428 Total $ (5,726 ) $ (830 ) $ (387 ) $ (450 ) Cash Flow Hedges Interest rate swaps: Hedge ineffectiveness gains (losses) recorded in earnings (1) $ 65 $ (75 ) $ 2,749 $ (147 ) Realized losses recorded in interest expense (543 ) (2,669 ) (2,104 ) (6,008 ) Total $ (478 ) $ (2,744 ) $ 645 $ (6,155 ) Trading Interest rate swaps: Interest reclassification $ (239 ) $ (101 ) $ (129 ) $ (20 ) Realized losses recorded in earnings (2,180 ) 278 (6,935 ) (942 ) Total (1) (2,419 ) 177 (7,064 ) (962 ) Total $ (8,623 ) $ (3,397 ) $ (6,806 ) $ (7,567 ) ________ (1) Amounts included in “gains (losses) 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, 2018 2017 2018 2017 Amount of gain recognized in other comprehensive income (loss) $ 9,471 $ (4,698 ) $ 28,200 $ (3,258 ) Less: amount of loss reclassified in interest expense (1) (543 ) (2,669 ) (2,104 ) (6,008 ) Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit $ 10,014 $ (2,029 ) $ 30,304 $ 2,750 ___________ (1) Amounts included in “realized losses recorded in interest expense” in the “Impact of Derivatives on the Consolidated Statements of Income” table. Cash Collateral As of June 30, 2018 , cash collateral held and pledged excludes amounts that represent legal settlement of the derivative contracts held with CME and LCH. Cash collateral held related to derivative exposure between us and our derivatives counterparties was zero at both June 30, 2018 and December 31, 2017 . 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 $28 million and $22 million at June 30, 2018 and December 31, 2017 , respectively. Collateral pledged is recorded in “Other interest-earning assets” on the consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 6 Months Ended |
Jun. 30, 2018 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity 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) 2018 2017 2018 2017 Shares repurchased related to employee stock-based compensation plans (1)(2) 200,577 981,477 2,940,595 2,584,964 Average purchase price per share $ 11.60 $ 12.39 $ 11.33 $ 12.12 Common shares issued (3) 384,955 1,491,057 5,944,946 5,229,774 __________________ (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 29, 2018 was $11.45 . |
Earnings per Common Share
Earnings per Common Share | 6 Months Ended |
Jun. 30, 2018 | |
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) 2018 2017 2018 2017 Numerator: Net income $ 109,832 $ 70,617 $ 236,086 $ 165,560 Preferred stock dividends 3,920 3,974 7,317 9,549 Net income attributable to SLM Corporation common stock $ 105,912 $ 66,643 $ 228,769 $ 156,011 Denominator: Weighted average shares used to compute basic EPS 435,187 431,245 434,573 430,572 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units and Employee Stock Purchase Plan (“ESPP”) (1)(2) 4,258 6,870 4,639 7,852 Weighted average shares used to compute diluted EPS 439,445 438,115 439,212 438,424 Basic earnings per common share attributable to SLM Corporation $ 0.24 $ 0.15 $ 0.53 $ 0.36 Diluted earnings per common share attributable to SLM Corporation $ 0.24 $ 0.15 $ 0.52 $ 0.35 ________________ (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, 2018 and 2017, securities covering approximately 0 and 0 shares, respectively, and for six months ended June 30, 2018 and 2017, securities covering approximately 0 and 0 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, 2018 | |
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 2017 Form 10-K. During the six months ended June 30, 2018 , 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, 2018 December 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Available-for-sale investments $ — $ 178,145 $ — $ 178,145 $ — $ 244,088 $ — $ 244,088 Derivative instruments — 1,403 — 1,403 — 812 — 812 Total $ — $ 179,548 $ — $ 179,548 $ — $ 244,900 $ — $ 244,900 Liabilities Derivative instruments $ — $ (92 ) $ — $ (92 ) $ — $ (2,584 ) $ — $ (2,584 ) Total $ — $ (92 ) $ — $ (92 ) $ — $ (2,584 ) $ — $ (2,584 ) The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. June 30, 2018 December 31, 2017 Fair Value Carrying Value Difference Fair Value Carrying Value Difference Earning assets Loans held for investment, net $ 22,349,831 $ 20,308,581 $ 2,041,250 $ 20,673,136 $ 18,567,641 $ 2,105,495 Cash and cash equivalents 2,043,789 2,043,789 — 1,534,339 1,534,339 — Available-for-sale investments 178,145 178,145 — 244,088 244,088 — Accrued interest receivable 1,161,161 1,161,161 — 967,482 967,482 — Tax indemnification receivable 153,470 153,470 — 168,011 168,011 — Derivative instruments 1,403 1,403 — 812 812 — Total earning assets $ 25,887,799 $ 23,846,549 $ 2,041,250 $ 23,587,868 $ 21,482,373 $ 2,105,495 Interest-bearing liabilities Money-market and savings accounts $ 8,795,950 $ 8,795,950 $ — $ 8,470,209 $ 8,470,209 $ — Certificates of deposit 7,911,777 7,947,935 36,158 7,044,208 7,034,121 (10,087 ) Long-term borrowings 4,198,150 4,217,119 18,969 3,299,871 3,275,270 (24,601 ) Accrued interest payable 46,658 46,658 — 35,363 35,363 — Derivative instruments 92 92 — 2,584 2,584 — Total interest-bearing liabilities $ 20,952,627 $ 21,007,754 $ 55,127 $ 18,852,235 $ 18,817,547 $ (34,688 ) Excess of net asset fair value over carrying value $ 2,096,377 $ 2,070,807 Please refer to Note 15, “Fair Value Measurements” in our 2017 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, 2018 | |
Related Party Transactions [Abstract] | |
Arrangements with Navient Corporation | Arrangements with Navient Corporation In connection with the Spin-Off, we entered into a separation and distribution agreement (the “Separation and Distribution Agreement”) and other ancillary agreements with Navient. Please refer to Note 16, “Arrangements with Navient Corporation” in our 2017 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 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 was 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 we are legally responsible for but that relate to gains recognized by our predecessor on debt repurchases made prior to the Spin-Off. The remaining amount of this indemnification at June 30, 2018 was $18 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, 2018 , the remaining balance of the indemnification receivable related to those uncertain tax positions was $26 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 those uncertain tax positions was $110 million at June 30, 2018 . Amended Loan Participation and Purchase Agreement Prior to the Spin-Off, the Bank sold substantially all of its Private Education Loans to several former affiliates, now subsidiaries of Navient (collectively, the “Purchasers”), pursuant to this agreement. This agreement predates the Spin-Off but was significantly amended and reduced in scope in connection with the Spin-Off. Post-Spin-Off, the Bank retained only the right to require the Purchasers to purchase Split Loans (at fair value) when the Split Loans either (1) are more than 90 days past due; (2) have been restructured; (3) have been granted a hardship forbearance or more than six months of administrative forbearance; or (4) have a borrower or cosigner who has filed for bankruptcy. In the second quarter of 2018, we sold our remaining $43 million portfolio of Split Loans (both current and non-current loans) to Navient and recognized a net gain of $2 million . |
Regulatory Capital
Regulatory Capital | 6 Months Ended |
Jun. 30, 2018 | |
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 (the “UDFI”). Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material adverse effect on our business, results of 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 established Common Equity Tier 1 as a tier of capital, modified methods for calculating risk-weighted assets, introduced a capital conservation buffer (which is being phased in over several years), and revised 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, 2018: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 2,617,021 12.0 % $ 1,417,350 > 6.5 % Tier 1 Capital (to Risk-Weighted Assets) $ 2,617,021 12.0 % $ 1,744,431 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 2,889,876 13.3 % $ 2,180,539 > 10.0 % Tier 1 Capital (to Average Assets) $ 2,617,021 11.2 % $ 1,164,750 > 5.0 % As of December 31, 2017: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 2,350,081 11.9 % $ 1,288,435 > 6.5 % Tier 1 Capital (to Risk-Weighted Assets) $ 2,350,081 11.9 % $ 1,585,767 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 2,597,926 13.1 % $ 1,982,208 > 10.0 % Tier 1 Capital (to Average Assets) $ 2,350,081 11.0 % $ 1,067,739 > 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 six months ended June 30, 2018 and June 30, 2017 . |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 , we had $ 1.7 billion of outstanding contractual loan commitments which we expect to fund during the remainder of the 2018/2019 academic year. At June 30, 2018 , we had a $ 0.6 million reserve recorded in “Other Liabilities” to cover expected losses that may occur during the one -year loss emergence period on these unfunded commitments. 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 Polici22
Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 are not necessarily indicative of the results for the year ending December 31, 2018 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, 2017 (the “2017 Form 10-K”). |
Consolidation | Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. We consolidate any variable interest entity (“VIE”) where we have determined we are the primary beneficiary. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements In November 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” Whereas restricted cash balances have traditionally been excluded from the statement of cash flows, this ASU requires restricted cash and restricted cash equivalents to be included within the beginning and ending totals of cash, cash equivalents and restricted cash presented on the statement of cash flows for all periods presented. Restricted cash and restricted cash equivalent inflows and outflows with external parties are required to be classified within the operating, investing, and/or financing activity sections of the statement of cash flows, whereas transfers between cash and cash equivalents and restricted cash and restricted cash equivalents should no longer be presented on the statement of cash flows. ASU No. 2016-18 also requires (a) the nature of the restrictions to be disclosed to help provide information about the sources and uses of these balances during a reporting period and (b) a reconciliation of the cash, cash equivalents and restricted cash totals on the statement of cash flows to the related balance sheet line items when cash, cash equivalents, and restricted cash are presented in more than one line item on the balance sheet. The reconciliation can be presented either on the face of the statement of cash flows or in the notes to the financial statements and must be provided for each period that a balance sheet is presented. We adopted the new accounting pronouncement on January 1, 2018, and the adoption did not have a material impact to our statement of cash flows. In February 2018, the FASB issued ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the tax law and tax rate changes under the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) enacted on December 22, 2017. Under the Tax Act, deferred taxes were adjusted to reflect the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate, which left the tax effects on items within accumulated other comprehensive income stranded at an inappropriate tax rate. This guidance is effective for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years, with early adoption permitted. We adopted this standard effective January 1, 2018 and recorded a $ 0.6 million reclass from accumulated other comprehensive income to retained earnings in the first quarter of 2018. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of securities available for sale | The amortized cost and fair value of securities available for sale are as follows: June 30, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Mortgage-backed securities $ 167,203 $ 119 $ (6,906 ) $ 160,416 Utah Housing Corporation bonds 18,546 — (817 ) 17,729 Total $ 185,749 $ 119 $ (7,723 ) $ 178,145 December 31, 2017 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Mortgage-backed securities $ 227,607 $ 650 $ (3,210 ) $ 225,047 Utah Housing Corporation bonds 20,000 — (959 ) 19,041 Total $ 247,607 $ 650 $ (4,169 ) $ 244,088 |
Available-for-sale securities, continuous unrealized loss position, fair value | The following table summarizes the amount of gross unrealized losses for our mortgage-backed securities and Utah Housing Corporation bonds and the estimated fair value for securities having gross unrealized losses, categorized by length of time the securities have been in an unrealized loss position: Less than 12 months 12 months or more Total Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value Gross Unrealized Losses Estimated Fair Value As of June 30, 2018: Mortgage-backed securities $ (1,568 ) $ 49,747 $ (5,338 ) $ 107,182 $ (6,906 ) $ 156,929 Utah Housing Corporation bonds — — (817 ) 17,729 (817 ) 17,729 Total $ (1,568 ) $ 49,747 $ (6,155 ) $ 124,911 $ (7,723 ) $ 174,658 As of December 31, 2017: Mortgage-backed securities $ (772 ) $ 77,356 $ (2,438 ) $ 110,500 $ (3,210 ) $ 187,856 Utah Housing Corporation bonds (77 ) 4,923 (882 ) 14,118 (959 ) 19,041 Total $ (849 ) $ 82,279 $ (3,320 ) $ 124,618 $ (4,169 ) $ 206,897 |
Schedule of amortized cost and fair value of securities, by contractual maturities | As of June 30, 2018, the amortized cost and fair value of securities, by contractual maturities, are summarized below. Contractual maturities versus actual maturities may differ due to the effect of prepayments. Year of Maturity Amortized Cost Estimated Fair Value 2038 $ 269 $ 284 2039 3,099 3,203 2042 10,099 9,381 2043 15,371 14,823 2044 24,183 23,464 2045 28,117 26,883 2046 41,807 39,789 2047 59,890 57,416 2048 2,914 2,902 Total $ 185,749 $ 178,145 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Loans held for investment are summarized as follows: June 30, December 31, 2018 2017 Private Education Loans: Fixed rate $ 5,086,329 $ 4,000,447 Variable rate 13,601,698 13,431,720 Total Private Education Loans, gross 18,688,027 17,432,167 Deferred origination costs and unamortized premium/(discount) 61,908 56,378 Allowance for loan losses (261,695 ) (243,715 ) Total Private Education Loans, net 18,488,240 17,244,830 FFELP Loans 885,357 927,660 Deferred origination costs and unamortized premium/(discount) 2,496 2,631 Allowance for loan losses (1,073 ) (1,132 ) Total FFELP Loans, net 886,780 929,159 Personal Loans (fixed rate) 966,080 400,280 Deferred origination costs and unamortized premium/(discount) (10 ) — Allowance for loan losses (32,509 ) (6,628 ) Total Personal Loans, net 933,561 393,652 Loans held for investment, net $ 20,308,581 $ 18,567,641 The average balance and the respective weighted average interest rates of loans in our portfolio are summarized as follows: Three Months Ended June 30, 2018 2017 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 18,764,768 9.03 % $ 15,687,803 8.33 % FFELP Loans 898,095 4.51 980,478 3.87 Personal Loans 815,356 10.65 60,910 9.28 Total portfolio $ 20,478,219 $ 16,729,191 Six Months Ended June 30, 2018 2017 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 18,712,533 8.93 % $ 15,569,337 8.30 % FFELP Loans 908,846 4.38 991,740 3.78 Personal Loans 672,792 10.65 48,464 9.24 Total portfolio $ 20,294,171 $ 16,609,541 The following table provides the average recorded investment and interest income recognized for our TDR loans. Three Months Ended 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 1,105,042 $ 18,718 $ 766,171 $ 14,310 Six Months Ended 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 1,069,721 $ 36,565 $ 718,727 $ 26,567 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 FFELP Loans Private Education Loans Personal Loans Total Allowance for Loan Losses Beginning balance $ 1,113 $ 252,103 $ 18,907 $ 272,123 Total provision 252 46,264 16,378 62,894 Net charge-offs: Charge-offs (292 ) (42,270 ) (2,872 ) (45,434 ) Recoveries — 5,598 96 5,694 Net charge-offs (292 ) (36,672 ) (2,776 ) (39,740 ) Loan sales (1) — — — — Ending Balance $ 1,073 $ 261,695 $ 32,509 $ 295,277 Allowance: Ending balance: individually evaluated for impairment $ — $ 113,343 $ — $ 113,343 Ending balance: collectively evaluated for impairment $ 1,073 $ 148,352 $ 32,509 $ 181,934 Loans: Ending balance: individually evaluated for impairment $ — $ 1,121,816 $ — $ 1,121,816 Ending balance: collectively evaluated for impairment $ 885,357 $ 17,566,211 $ 966,080 $ 19,417,648 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.17 % 1.14 % 1.36 % Allowance as a percentage of the ending total loan balance 0.12 % 1.40 % 3.37 % Allowance as a percentage of the ending loans in repayment (2) 0.16 % 2.02 % 3.37 % Allowance coverage of net charge-offs (annualized) 0.92 1.78 2.93 Ending total loans, gross $ 885,357 $ 18,688,027 $ 966,080 Average loans in repayment (2) $ 698,197 $ 12,909,623 $ 815,741 Ending loans in repayment (2) $ 680,802 $ 12,979,523 $ 966,080 ____________ (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, 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 Six Months Ended June 30, 2018 FFELP Loans Private Education Loans Personal Loans Total Allowance for Loan Losses Beginning balance $ 1,132 $ 243,715 $ 6,628 $ 251,475 Total provision 483 88,134 29,826 118,443 Net charge-offs: Charge-offs (542 ) (79,623 ) (4,072 ) (84,237 ) Recoveries — 10,685 127 10,812 Net charge-offs (542 ) (68,938 ) (3,945 ) (73,425 ) Loan sales (1) — (1,216 ) — (1,216 ) Ending Balance $ 1,073 $ 261,695 $ 32,509 $ 295,277 Allowance: Ending balance: individually evaluated for impairment $ — $ 113,343 $ — $ 113,343 Ending balance: collectively evaluated for impairment $ 1,073 $ 148,352 $ 32,509 $ 181,934 Loans: Ending balance: individually evaluated for impairment $ — $ 1,121,816 $ — $ 1,121,816 Ending balance: collectively evaluated for impairment $ 885,357 $ 17,566,211 $ 966,080 $ 19,417,648 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.15 % 1.08 % 1.17 % Allowance as a percentage of the ending total loan balance 0.12 % 1.40 % 3.37 % Allowance as a percentage of the ending loans in repayment (2) 0.16 % 2.02 % 3.37 % Allowance coverage of net charge-offs (annualized) 0.99 1.90 4.12 Ending total loans, gross $ 885,357 $ 18,688,027 $ 966,080 Average loans in repayment (2) $ 709,010 $ 12,810,072 $ 673,552 Ending loans in repayment (2) $ 680,802 $ 12,979,523 $ 966,080 ____________ (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. |
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, 2018 TDR Loans $ 1,139,417 $ 1,121,816 $ 113,343 December 31, 2017 TDR Loans $ 1,007,141 $ 990,351 $ 94,682 |
Average recorded investment and interest income recognized for troubled debt restructuring loans | Loans held for investment are summarized as follows: June 30, December 31, 2018 2017 Private Education Loans: Fixed rate $ 5,086,329 $ 4,000,447 Variable rate 13,601,698 13,431,720 Total Private Education Loans, gross 18,688,027 17,432,167 Deferred origination costs and unamortized premium/(discount) 61,908 56,378 Allowance for loan losses (261,695 ) (243,715 ) Total Private Education Loans, net 18,488,240 17,244,830 FFELP Loans 885,357 927,660 Deferred origination costs and unamortized premium/(discount) 2,496 2,631 Allowance for loan losses (1,073 ) (1,132 ) Total FFELP Loans, net 886,780 929,159 Personal Loans (fixed rate) 966,080 400,280 Deferred origination costs and unamortized premium/(discount) (10 ) — Allowance for loan losses (32,509 ) (6,628 ) Total Personal Loans, net 933,561 393,652 Loans held for investment, net $ 20,308,581 $ 18,567,641 The average balance and the respective weighted average interest rates of loans in our portfolio are summarized as follows: Three Months Ended June 30, 2018 2017 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 18,764,768 9.03 % $ 15,687,803 8.33 % FFELP Loans 898,095 4.51 980,478 3.87 Personal Loans 815,356 10.65 60,910 9.28 Total portfolio $ 20,478,219 $ 16,729,191 Six Months Ended June 30, 2018 2017 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 18,712,533 8.93 % $ 15,569,337 8.30 % FFELP Loans 908,846 4.38 991,740 3.78 Personal Loans 672,792 10.65 48,464 9.24 Total portfolio $ 20,294,171 $ 16,609,541 The following table provides the average recorded investment and interest income recognized for our TDR loans. Three Months Ended 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 1,105,042 $ 18,718 $ 766,171 $ 14,310 Six Months Ended 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 1,069,721 $ 36,565 $ 718,727 $ 26,567 |
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, 2018 2017 Balance % Balance % TDR loans in in-school/grace/deferment (1) $ 57,595 $ 51,745 TDR loans in forbearance (2) 59,682 69,652 TDR loans in repayment (3) and percentage of each status: Loans current 917,138 91.3 % 774,222 89.1 % Loans delinquent 31-60 days (4) 45,080 4.5 48,377 5.6 Loans delinquent 61-90 days (4) 25,580 2.5 28,778 3.3 Loans delinquent greater than 90 days (4) 16,741 1.7 17,577 2.0 Total TDR loans in repayment 1,004,539 100.0 % 868,954 100.0 % Total TDR loans, gross $ 1,121,816 $ 990,351 _____ (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, 2018 2017 Balance % Balance % Loans in-school/grace/deferment (1) $ 5,250,393 $ 4,757,732 Loans in forbearance (2) 458,111 468,402 Loans in repayment and percentage of each status: Loans current 12,697,362 97.8 % 11,911,128 97.6 % Loans delinquent 31-60 days (3) 166,322 1.3 179,002 1.5 Loans delinquent 61-90 days (3) 75,534 0.6 78,292 0.6 Loans delinquent greater than 90 days (3) 40,305 0.3 37,611 0.3 Total Private Education Loans in repayment 12,979,523 100.0 % 12,206,033 100.0 % Total Private Education Loans, gross 18,688,027 17,432,167 Private Education Loans deferred origination costs and unamortized premium/(discount) 61,908 56,378 Total Private Education Loans 18,749,935 17,488,545 Private Education Loans allowance for losses (261,695 ) (243,715 ) Private Education Loans, net $ 18,488,240 $ 17,244,830 Percentage of Private Education Loans in repayment 69.5 % 70.0 % Delinquencies as a percentage of Private Education Loans in repayment 2.2 % 2.4 % Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance 3.4 % 3.7 % (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 include 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 $ 116,478 $ 12,764 $ 18,254 $ 134,489 $ 12,215 $ 23,679 Six Months Ended Six Months Ended Modified Loans (1) Charge-offs Payment- Default Modified Loans (1) Charge-offs Payment- Default TDR Loans $ 200,652 $ 28,224 $ 47,988 $ 246,695 $ 22,738 $ 49,113 _____ (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 provides information regarding the loan status of our Personal Loans. Personal Loans June 30, December 31, 2018 2017 Balance % Balance % Loans in repayment and percentage of each status: Loans current $ 960,865 99.5 % $ 398,988 99.7 % Loans delinquent 31-60 days (1) 2,376 0.2 761 0.2 Loans delinquent 61-90 days (1) 1,594 0.2 340 0.1 Loans delinquent greater than 90 days (1) 1,245 0.1 191 — Total Personal Loans in repayment 966,080 100.0 % 400,280 100.0 % Total Personal Loans, gross 966,080 400,280 Personal Loans unamortized discount (10 ) — Total Personal Loans 966,070 400,280 Personal Loans allowance for losses (32,509 ) (6,628 ) Personal Loans, net $ 933,561 $ 393,652 Delinquencies as a percentage of Personal Loans in repayment 0.5 % 0.3 % _______ (1) The period of delinquency is based on the number of days scheduled payments are contractually past 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, 2018 December 31, 2017 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance Cosigners: With cosigner $ 16,757,587 90 % $ 15,658,539 90 % Without cosigner 1,930,440 10 1,773,628 10 Total $ 18,688,027 100 % $ 17,432,167 100 % FICO at Original Approval (2) : Less than 670 $ 1,256,273 7 % $ 1,153,591 6 % 670-699 2,814,316 15 2,596,959 15 700-749 6,152,102 33 5,714,554 33 Greater than or equal to 750 8,465,336 45 7,967,063 46 Total $ 18,688,027 100 % $ 17,432,167 100 % Seasoning (3) : 1-12 payments $ 4,837,671 26 % $ 4,256,592 24 % 13-24 payments 3,209,308 17 3,229,465 19 25-36 payments 2,471,002 13 2,429,238 14 37-48 payments 1,582,586 9 1,502,327 9 More than 48 payments 1,337,067 7 1,256,813 7 Not yet in repayment 5,250,393 28 4,757,732 27 Total $ 18,688,027 100 % $ 17,432,167 100 % (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. 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, 2018 December 31, 2017 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance FICO at Original Approval: Less than 670 $ 70,773 7 % $ 32,156 8 % 670-699 275,210 29 114,731 29 700-749 441,824 46 182,025 45 Greater than or equal to 750 178,273 18 71,368 18 Total $ 966,080 100 % $ 400,280 100 % Seasoning (2) : 0-12 payments $ 932,863 97 % $ 400,280 100 % 13-24 payments 33,217 3 — — 25-36 payments — — — — 37-48 payments — — — — More than 48 payments — — — — Total $ 966,080 100 % $ 400,280 100 % (1) Balance represents gross Personal Loans. (2) Number of months in active repayment for which a scheduled payment was due. |
Accrued interest receivable | The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans greater than 90 days past due as compared to our allowance for uncollectible interest. The allowance for uncollectible interest exceeds the amount of accrued interest on our 90 days past due Private Education Loan portfolio for all periods presented. Private Education Loans Accrued Interest Receivable Total Interest Receivable Greater Than 90 Days Past Due Allowance for Uncollectible Interest June 30, 2018 $ 1,141,135 $ 1,530 $ 5,852 December 31, 2017 $ 951,138 $ 1,372 $ 4,664 |
Deposits (Tables)
Deposits (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
Schedule of deposits | The following table summarizes total deposits at June 30, 2018 and December 31, 2017 . June 30, December 31, 2018 2017 Deposits - interest bearing $ 16,743,885 $ 15,504,330 Deposits - non-interest bearing 2,072 1,053 Total deposits $ 16,745,957 $ 15,505,383 |
Interest bearing deposits | Interest bearing deposits at June 30, 2018 and December 31, 2017 are summarized as follows: June 30, 2018 December 31, 2017 Amount Qtr.-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 8,113,708 2.21 % $ 7,731,966 1.80 % Savings 682,242 1.59 738,243 1.10 Certificates of deposit 7,947,935 2.54 7,034,121 1.93 Deposits - interest bearing $ 16,743,885 $ 15,504,330 ____________ (1) Includes the effect of interest rate swaps in effective hedge relationships. |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The following table summarizes our borrowings at June 30, 2018 and December 31, 2017 . June 30, 2018 December 31, 2017 Short-Term Long-Term Total Short-Term Long-Term Total Unsecured borrowings: Unsecured debt $ — $ 196,943 $ 196,943 $ — $ 196,539 $ 196,539 Total unsecured borrowings — 196,943 196,943 — 196,539 196,539 Secured borrowings: Private Education Loan term securitizations: Fixed rate — 2,125,035 2,125,035 — 1,565,760 1,565,760 Variable rate — 1,895,141 1,895,141 — 1,512,971 1,512,971 Total Private Education Loan term securitizations — 4,020,176 4,020,176 — 3,078,731 3,078,731 ABCP Facility — — — — — — Total secured borrowings — 4,020,176 4,020,176 — 3,078,731 3,078,731 Total $ — $ 4,217,119 $ 4,217,119 $ — $ 3,275,270 $ 3,275,270 |
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: 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 2017-B November 2017 676,000 1-month LIBOR plus 0.80% 4.07 Total notes issued in 2017 $ 1,448,000 Total loan and accrued interest amount securitized at inception in 2017 $ 1,606,804 2018-A March 2018 $ 670,000 1-month LIBOR plus 0.78% 4.43 2018-B June 2018 686,500 1-month LIBOR plus 0.76% 4.40 Total notes issued in 2018 $ 1,356,500 Total loan and accrued interest amount securitized at inception in 2018 $ 1,504,121 ____________ (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, 2018 and December 31, 2017 , respectively: June 30, 2018 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 $ — $ 4,020,176 $ 4,020,176 $ 4,793,290 $ 105,963 $ 334,333 $ 5,233,586 ABCP Facility — — — — — 706 706 Total $ — $ 4,020,176 $ 4,020,176 $ 4,793,290 $ 105,963 $ 335,039 $ 5,234,292 December 31, 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 $ — $ 3,078,731 $ 3,078,731 $ 3,691,024 $ 95,966 $ 240,208 $ 4,027,198 ABCP Facility — — — — 1,017 161 1,178 Total $ — $ 3,078,731 $ 3,078,731 $ 3,691,024 $ 96,983 $ 240,369 $ 4,028,376 ____ (1) Other assets primarily represent accrued interest receivable. |
Derivative Financial Instrume28
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018 and December 31, 2017 , and their impact on earnings and other comprehensive income for the three and six months ended June 30, 2018 and 2017. Please refer to Note 11, “Derivative Financial Instruments” in our 2017 Form 10-K for a full discussion of cash flow hedges, fair value hedges, and trading activities. Impact of Derivatives on the Consolidated Balance Sheet Cash Flow Hedges Fair Value Hedges Trading Total June 30, December 31, June 30, December June 30, December June 30, December 2018 2017 2018 2017 2018 2017 2018 2017 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ 959 $ — $ 444 $ 630 $ — $ 182 $ 1,403 $ 812 Derivative Liabilities: (2) Interest rate swaps Interest rate — (2,584 ) — — (92 ) — (92 ) (2,584 ) Total net derivatives $ 959 $ (2,584 ) $ 444 $ 630 $ (92 ) $ 182 $ 1,311 $ (1,772 ) ___________ (1) Fair values reported include variation margin as legal settlement of the derivative contract and accrued interest. Assets and liabilities are presented without consideration of master netting agreements. Derivatives are carried on the balance sheet based on net position by counterparty under master netting agreements and classified in other assets or other liabilities depending on whether in a net positive or negative position. (2) The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities June 30, December 31, June 30, December 31, 2018 2017 2018 2017 Gross position (1) $ 1,403 $ 812 $ (92 ) $ (2,584 ) Impact of master netting agreement (92 ) (812 ) 92 812 Derivative values with impact of master netting agreements (as carried on balance sheet) 1,311 — — (1,772 ) Cash collateral pledged (2) 28,385 — — 21,586 Net position $ 29,696 $ — $ — $ 19,814 __________ (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. (2) Cash collateral 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, 2018 2017 2018 2017 Gross position (1) $ 1,403 $ 812 $ (92 ) $ (2,584 ) Impact of master netting agreement (92 ) (812 ) 92 812 Derivative values with impact of master netting agreements (as carried on balance sheet) 1,311 — — (1,772 ) Cash collateral pledged (2) 28,385 — — 21,586 Net position $ 29,696 $ — $ — $ 19,814 __________ (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. (2) Cash collateral 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, 2018 2017 2018 2017 Gross position (1) $ 1,403 $ 812 $ (92 ) $ (2,584 ) Impact of master netting agreement (92 ) (812 ) 92 812 Derivative values with impact of master netting agreements (as carried on balance sheet) 1,311 — — (1,772 ) Cash collateral pledged (2) 28,385 — — 21,586 Net position $ 29,696 $ — $ — $ 19,814 __________ (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. (2) Cash collateral 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, 2018 2017 2018 2017 2018 2017 2018 2017 Notional Values Interest rate swaps $ 1,344,791 $ 1,408,649 $ 3,867,204 $ 3,062,849 $ 1,317,494 $ 987,577 $ 6,529,489 $ 5,459,075 |
Derivative instruments, gain (loss) | Impact of Derivatives on the Consolidated Statements of Income Three Months Ended Six Months Ended 2018 2017 2018 2017 Fair Value Hedges Interest rate swaps: Hedge ineffectiveness realized gains (losses) recorded in earnings (1) $ (2,914 ) $ (3,711 ) $ 2,939 $ (7,878 ) Realized gains (losses) recorded in interest expense (2,812 ) 2,881 (3,326 ) 7,428 Total $ (5,726 ) $ (830 ) $ (387 ) $ (450 ) Cash Flow Hedges Interest rate swaps: Hedge ineffectiveness gains (losses) recorded in earnings (1) $ 65 $ (75 ) $ 2,749 $ (147 ) Realized losses recorded in interest expense (543 ) (2,669 ) (2,104 ) (6,008 ) Total $ (478 ) $ (2,744 ) $ 645 $ (6,155 ) Trading Interest rate swaps: Interest reclassification $ (239 ) $ (101 ) $ (129 ) $ (20 ) Realized losses recorded in earnings (2,180 ) 278 (6,935 ) (942 ) Total (1) (2,419 ) 177 (7,064 ) (962 ) Total $ (8,623 ) $ (3,397 ) $ (6,806 ) $ (7,567 ) ________ (1) Amounts included in “gains (losses) 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, 2018 2017 2018 2017 Amount of gain recognized in other comprehensive income (loss) $ 9,471 $ (4,698 ) $ 28,200 $ (3,258 ) Less: amount of loss reclassified in interest expense (1) (543 ) (2,669 ) (2,104 ) (6,008 ) Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit $ 10,014 $ (2,029 ) $ 30,304 $ 2,750 ___________ (1) Amounts included in “realized losses recorded in interest expense” in the “Impact of Derivatives on the Consolidated Statements of Income” table. |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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) 2018 2017 2018 2017 Shares repurchased related to employee stock-based compensation plans (1)(2) 200,577 981,477 2,940,595 2,584,964 Average purchase price per share $ 11.60 $ 12.39 $ 11.33 $ 12.12 Common shares issued (3) 384,955 1,491,057 5,944,946 5,229,774 __________________ (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, 2018 | |
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) 2018 2017 2018 2017 Numerator: Net income $ 109,832 $ 70,617 $ 236,086 $ 165,560 Preferred stock dividends 3,920 3,974 7,317 9,549 Net income attributable to SLM Corporation common stock $ 105,912 $ 66,643 $ 228,769 $ 156,011 Denominator: Weighted average shares used to compute basic EPS 435,187 431,245 434,573 430,572 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units and Employee Stock Purchase Plan (“ESPP”) (1)(2) 4,258 6,870 4,639 7,852 Weighted average shares used to compute diluted EPS 439,445 438,115 439,212 438,424 Basic earnings per common share attributable to SLM Corporation $ 0.24 $ 0.15 $ 0.53 $ 0.36 Diluted earnings per common share attributable to SLM Corporation $ 0.24 $ 0.15 $ 0.52 $ 0.35 ________________ (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, 2018 and 2017, securities covering approximately 0 and 0 shares, respectively, and for six months ended June 30, 2018 and 2017, securities covering approximately 0 and 0 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, 2018 | |
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, 2018 December 31, 2017 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Available-for-sale investments $ — $ 178,145 $ — $ 178,145 $ — $ 244,088 $ — $ 244,088 Derivative instruments — 1,403 — 1,403 — 812 — 812 Total $ — $ 179,548 $ — $ 179,548 $ — $ 244,900 $ — $ 244,900 Liabilities Derivative instruments $ — $ (92 ) $ — $ (92 ) $ — $ (2,584 ) $ — $ (2,584 ) Total $ — $ (92 ) $ — $ (92 ) $ — $ (2,584 ) $ — $ (2,584 ) |
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, 2018 December 31, 2017 Fair Value Carrying Value Difference Fair Value Carrying Value Difference Earning assets Loans held for investment, net $ 22,349,831 $ 20,308,581 $ 2,041,250 $ 20,673,136 $ 18,567,641 $ 2,105,495 Cash and cash equivalents 2,043,789 2,043,789 — 1,534,339 1,534,339 — Available-for-sale investments 178,145 178,145 — 244,088 244,088 — Accrued interest receivable 1,161,161 1,161,161 — 967,482 967,482 — Tax indemnification receivable 153,470 153,470 — 168,011 168,011 — Derivative instruments 1,403 1,403 — 812 812 — Total earning assets $ 25,887,799 $ 23,846,549 $ 2,041,250 $ 23,587,868 $ 21,482,373 $ 2,105,495 Interest-bearing liabilities Money-market and savings accounts $ 8,795,950 $ 8,795,950 $ — $ 8,470,209 $ 8,470,209 $ — Certificates of deposit 7,911,777 7,947,935 36,158 7,044,208 7,034,121 (10,087 ) Long-term borrowings 4,198,150 4,217,119 18,969 3,299,871 3,275,270 (24,601 ) Accrued interest payable 46,658 46,658 — 35,363 35,363 — Derivative instruments 92 92 — 2,584 2,584 — Total interest-bearing liabilities $ 20,952,627 $ 21,007,754 $ 55,127 $ 18,852,235 $ 18,817,547 $ (34,688 ) Excess of net asset fair value over carrying value $ 2,096,377 $ 2,070,807 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 6 Months Ended |
Jun. 30, 2018 | |
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, 2018: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 2,617,021 12.0 % $ 1,417,350 > 6.5 % Tier 1 Capital (to Risk-Weighted Assets) $ 2,617,021 12.0 % $ 1,744,431 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 2,889,876 13.3 % $ 2,180,539 > 10.0 % Tier 1 Capital (to Average Assets) $ 2,617,021 11.2 % $ 1,164,750 > 5.0 % As of December 31, 2017: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 2,350,081 11.9 % $ 1,288,435 > 6.5 % Tier 1 Capital (to Risk-Weighted Assets) $ 2,350,081 11.9 % $ 1,585,767 > 8.0 % Total Capital (to Risk-Weighted Assets) $ 2,597,926 13.1 % $ 1,982,208 > 10.0 % Tier 1 Capital (to Average Assets) $ 2,350,081 11.0 % $ 1,067,739 > 5.0 % |
Significant Accounting Polices
Significant Accounting Polices (Details) $ in Millions | 3 Months Ended |
Mar. 31, 2018USD ($) | |
Accounting Policies [Abstract] | |
Reclassification resulting from the adoption of ASU No. 2018-02 | $ 0.6 |
Investments - Schedule of Amort
Investments - Schedule of Amortized Cost and Fair Value of Securities Available-for-sale (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Available for sale: | ||
Amortized Cost | $ 185,749 | $ 247,607 |
Gross Unrealized Gains | 119 | 650 |
Gross Unrealized Losses | (7,723) | (4,169) |
Available-for-sale investments | 178,145 | 244,088 |
Mortgage-backed securities | ||
Available for sale: | ||
Amortized Cost | 167,203 | 227,607 |
Gross Unrealized Gains | 119 | 650 |
Gross Unrealized Losses | (6,906) | (3,210) |
Available-for-sale investments | 160,416 | 225,047 |
Utah Housing Corporation bonds | ||
Available for sale: | ||
Amortized Cost | 18,546 | 20,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (817) | (959) |
Available-for-sale investments | $ 17,729 | $ 19,041 |
Investments - Unrealized Losses
Investments - Unrealized Losses and Fair Value for Mortgage-Backed Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Less than 12 months | ||
Gross Unrealized Losses | $ (1,568) | $ (849) |
Estimated Fair Value | 49,747 | 82,279 |
12 months or more | ||
Gross Unrealized Losses | (6,155) | (3,320) |
Estimated Fair Value | 124,911 | 124,618 |
Gross Unrealized Losses | (7,723) | (4,169) |
Estimated Fair Value | 174,658 | 206,897 |
Mortgage-backed securities | ||
Less than 12 months | ||
Gross Unrealized Losses | (1,568) | (772) |
Estimated Fair Value | 49,747 | 77,356 |
12 months or more | ||
Gross Unrealized Losses | (5,338) | (2,438) |
Estimated Fair Value | 107,182 | 110,500 |
Gross Unrealized Losses | (6,906) | (3,210) |
Estimated Fair Value | 156,929 | 187,856 |
Utah Housing Corporation bonds | ||
Less than 12 months | ||
Gross Unrealized Losses | 0 | (77) |
Estimated Fair Value | 0 | 4,923 |
12 months or more | ||
Gross Unrealized Losses | (817) | (882) |
Estimated Fair Value | 17,729 | 14,118 |
Gross Unrealized Losses | (817) | (959) |
Estimated Fair Value | $ 17,729 | $ 19,041 |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Thousands | 3 Months Ended | |
Jun. 30, 2018USD ($)security | Dec. 31, 2017USD ($)security | |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 185,749 | $ 247,607 |
Available-for-sale investments | 178,145 | 244,088 |
Ginnie Mae | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 72,000 | |
Fannie Mae | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 49,000 | |
Freddie Mac | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | 46,000 | |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 167,203 | 227,607 |
Number of mortgage-backed securities sold | security | 9 | |
Securities sold to align the portfolio with the Community Reinvestment Act requirements | $ 41,000 | |
Available-for-sale investments | 160,416 | $ 225,047 |
Recognized loss on securities | $ 2,000 | |
Number of mortgage-backed securities with unrealized losses | security | 75 | 62 |
Number of mortgage-backed securities | security | 84 | 92 |
Par value of mortgage-backed securities pledged | $ 161,000 | $ 218,000 |
Mortgage-backed securities | Ginnie Mae | ||
Debt Securities, Available-for-sale [Line Items] | ||
Number of mortgage-backed securities with unrealized losses | security | 35 | 31 |
Utah Housing Corporation bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost | $ 18,546 | $ 20,000 |
Available-for-sale investments | 17,729 | 19,041 |
Moody's, Aa3 Rating | Utah Housing Corporation bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized cost basis | $ 19,000 | $ 20,000 |
Investments - Schedule of Matur
Investments - Schedule of Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 185,749 | $ 247,607 |
Available-for-sale investments | 178,145 | $ 244,088 |
2,038 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 269 | |
Available-for-sale investments | 284 | |
2,039 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,099 | |
Available-for-sale investments | 3,203 | |
2,042 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,099 | |
Available-for-sale investments | 9,381 | |
2,043 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15,371 | |
Available-for-sale investments | 14,823 | |
2,044 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 24,183 | |
Available-for-sale investments | 23,464 | |
2,045 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 28,117 | |
Available-for-sale investments | 26,883 | |
2,046 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 41,807 | |
Available-for-sale investments | 39,789 | |
2,047 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 59,890 | |
Available-for-sale investments | 57,416 | |
2,048 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,914 | |
Available-for-sale investments | $ 2,902 |
Loans Held for Investment - Add
Loans Held for Investment - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Jul. 01, 2006 | Jun. 30, 2006 | Sep. 30, 1993 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Percent of private loans indexed to LIBOR | 73.00% | 73.00% | 77.00% | |||||
Gain on sale of portfolio split loans | $ 2,060 | $ 0 | $ 2,060 | $ 0 | ||||
Tier 1 of government guarantee (in percentage) | 97.00% | 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 3 months 5 days | 5 years 6 months 5 days | ||||||
Discontinued Operations, Disposed of by Sale | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gain on sale of portfolio split loans | $ 2,000 | |||||||
Portfolio split loans sold | $ 43,000 | $ 43,000 |
Loans Held for Investment - Stu
Loans Held for Investment - Student Loan Portfolio by Program (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for loan losses | $ (295,277) | $ (272,123) | $ (251,475) | $ (207,448) | $ (187,086) | $ (184,701) |
Loans held for investment, net | 20,308,581 | 18,567,641 | ||||
Private Education Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross amount of loans | 18,688,027 | 17,432,167 | ||||
Deferred origination costs and unamortized premium/(discount) | 61,908 | 56,378 | ||||
Allowance for loan losses | (261,695) | (243,715) | ||||
Loans held for investment, net | 18,488,240 | 17,244,830 | ||||
Private Education Loans | Fixed rate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross amount of loans | 5,086,329 | 4,000,447 | ||||
Private Education Loans | Variable rate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross amount of loans | 13,601,698 | 13,431,720 | ||||
FFELP Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross amount of loans | 885,357 | 927,660 | ||||
Deferred origination costs and unamortized premium/(discount) | 2,496 | 2,631 | ||||
Allowance for loan losses | (1,073) | (1,132) | ||||
Loans held for investment, net | 886,780 | 929,159 | ||||
Personal Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Gross amount of loans | 966,080 | 400,280 | ||||
Deferred origination costs and unamortized premium/(discount) | (10) | 0 | ||||
Allowance for loan losses | (32,509) | (6,628) | ||||
Loans held for investment, net | $ 933,561 | $ 393,652 |
Loans Held for Investment - S40
Loans Held for Investment - Student Loan Portfolio Average Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average Balance | $ 20,478,219 | $ 16,729,191 | $ 20,294,171 | $ 16,609,541 |
Private Education Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average Balance | $ 18,764,768 | $ 15,687,803 | $ 18,712,533 | $ 15,569,337 |
Weighted Average Interest Rate | 9.03% | 8.33% | 8.93% | 8.30% |
FFELP Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average Balance | $ 898,095 | $ 980,478 | $ 908,846 | $ 991,740 |
Weighted Average Interest Rate | 4.51% | 3.87% | 4.38% | 3.78% |
Personal Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average Balance | $ 815,356 | $ 60,910 | $ 672,792 | $ 48,464 |
Weighted Average Interest Rate | 10.65% | 9.28% | 10.65% | 9.24% |
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, 2018USD ($)charge_off | Jun. 30, 2017USD ($)charge_off | Jun. 30, 2018USD ($)charge_off | Jun. 30, 2017USD ($)charge_off | |
Allowance for Loan Losses | ||||
Allowance at beginning of period | $ 272,123 | $ 187,086 | $ 251,475 | $ 184,701 |
Total provision | 62,894 | 49,886 | 118,443 | 76,678 |
Net charge-offs: | ||||
Charge-offs | (45,434) | (33,007) | (84,237) | (59,452) |
Recoveries | 5,694 | 4,396 | 10,812 | 7,655 |
Net charge-offs | (39,740) | (28,611) | (73,425) | (51,797) |
Loan sales | 0 | (913) | (1,216) | (2,134) |
Allowance at end of period | 295,277 | 207,448 | 295,277 | 207,448 |
Allowance: | ||||
Ending balance: individually evaluated for impairment | 113,343 | 95,177 | 113,343 | 95,177 |
Ending balance: collectively evaluated for impairment | 181,934 | 112,271 | 181,934 | 112,271 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 1,121,816 | 803,456 | 1,121,816 | 803,456 |
Ending balance: collectively evaluated for impairment | 19,417,648 | 15,912,746 | 19,417,648 | 15,912,746 |
FFELP Loans | ||||
Allowance for Loan Losses | ||||
Allowance at beginning of period | 1,113 | 1,637 | 1,132 | 2,171 |
Total provision | 252 | 228 | 483 | (88) |
Net charge-offs: | ||||
Charge-offs | (292) | (259) | (542) | (477) |
Recoveries | 0 | 0 | 0 | 0 |
Net charge-offs | (292) | (259) | (542) | (477) |
Loan sales | 0 | 0 | 0 | 0 |
Allowance at end of period | 1,073 | 1,606 | 1,073 | 1,606 |
Allowance: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 1,073 | 1,606 | 1,073 | 1,606 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | $ 885,357 | $ 967,237 | $ 885,357 | $ 967,237 |
Net charge-offs as a percentage of average loans in repayment (annualized) | 0.17% | 0.14% | 0.15% | 0.12% |
Allowance as a percentage of the ending total loan balance | 0.12% | 0.17% | 0.12% | 0.17% |
Allowance as a percentage of the ending loans in repayment | 0.16% | 0.21% | 0.16% | 0.21% |
Allowance coverage of net charge-offs (annualized) | charge_off | 0.92 | 1.55 | 0.99 | 1.68 |
Ending total loans, gross | $ 885,357 | $ 967,237 | $ 885,357 | $ 967,237 |
Average loans in repayment | 698,197 | 757,186 | 709,010 | 765,347 |
Ending loans in repayment | 680,802 | 765,980 | 680,802 | 765,980 |
Private Education Loans | ||||
Allowance for Loan Losses | ||||
Allowance at beginning of period | 252,103 | 185,103 | 243,715 | 182,472 |
Total provision | 46,264 | 49,166 | 88,134 | 75,986 |
Net charge-offs: | ||||
Charge-offs | (42,270) | (32,728) | (79,623) | (58,955) |
Recoveries | 5,598 | 4,396 | 10,685 | 7,655 |
Net charge-offs | (36,672) | (28,332) | (68,938) | (51,300) |
Loan sales | 0 | (913) | (1,216) | (2,134) |
Allowance at end of period | 261,695 | 205,024 | 261,695 | 205,024 |
Allowance: | ||||
Ending balance: individually evaluated for impairment | 113,343 | 95,177 | 113,343 | 95,177 |
Ending balance: collectively evaluated for impairment | 148,352 | 109,847 | 148,352 | 109,847 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 1,121,816 | 803,456 | 1,121,816 | 803,456 |
Ending balance: collectively evaluated for impairment | $ 17,566,211 | $ 14,876,001 | $ 17,566,211 | $ 14,876,001 |
Net charge-offs as a percentage of average loans in repayment (annualized) | 1.14% | 1.08% | 1.08% | 0.99% |
Allowance as a percentage of the ending total loan balance | 1.40% | 1.31% | 1.40% | 1.31% |
Allowance as a percentage of the ending loans in repayment | 2.02% | 1.93% | 2.02% | 1.93% |
Allowance coverage of net charge-offs (annualized) | charge_off | 1.78 | 1.81 | 1.90 | 2 |
Ending total loans, gross | $ 18,688,027 | $ 15,679,457 | $ 18,688,027 | $ 15,679,457 |
Average loans in repayment | 12,909,623 | 10,523,225 | 12,810,072 | 10,375,463 |
Ending loans in repayment | 12,979,523 | 10,615,105 | 12,979,523 | 10,615,105 |
Personal Loans | ||||
Allowance for Loan Losses | ||||
Allowance at beginning of period | 18,907 | 346 | 6,628 | 58 |
Total provision | 16,378 | 492 | 29,826 | 780 |
Net charge-offs: | ||||
Charge-offs | (2,872) | (20) | (4,072) | (20) |
Recoveries | 96 | 0 | 127 | 0 |
Net charge-offs | (2,776) | (20) | (3,945) | (20) |
Loan sales | 0 | 0 | 0 | 0 |
Allowance at end of period | 32,509 | 818 | 32,509 | 818 |
Allowance: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 32,509 | 818 | 32,509 | 818 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | $ 966,080 | $ 69,508 | $ 966,080 | $ 69,508 |
Net charge-offs as a percentage of average loans in repayment (annualized) | 1.36% | 0.13% | 1.17% | 0.08% |
Allowance as a percentage of the ending total loan balance | 3.37% | 1.18% | 3.37% | 1.18% |
Allowance as a percentage of the ending loans in repayment | 3.37% | 1.18% | 3.37% | 1.18% |
Allowance coverage of net charge-offs (annualized) | charge_off | 2.93 | 10.23 | 4.12 | 20.45 |
Ending total loans, gross | $ 966,080 | $ 69,508 | $ 966,080 | $ 69,508 |
Average loans in repayment | 815,741 | 61,439 | 673,552 | 47,654 |
Ending loans in repayment | $ 966,080 | $ 69,508 | $ 966,080 | $ 69,508 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) | 6 Months Ended | ||
Jun. 30, 2018 | Dec. 31, 2017 | Jul. 01, 2006 | |
Receivables [Abstract] | |||
Percentage of loans granted forbearance qualified as TDR | 61.00% | 66.00% | |
Criteria for loans to be considered as nonperforming (greater than) | 90 days | ||
Tier 1 of government guarantee (at least) (in percentage) | 97.00% | 97.00% | |
TDR payment default period (more than) | 60 days | ||
Percentage of FFELP loans insured and guaranteed (at least) | 97.00% | ||
Period of loans past due that have accrued interest (greater than) | 90 days |
Allowance for Loan Losses - Rec
Allowance for Loan Losses - Recorded Investment, Unpaid Principal Balance and Related Allowance for TDR Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Recorded Investment | $ 1,139,417 | $ 1,007,141 |
Unpaid Principal Balance | 1,121,816 | 990,351 |
Allowance | $ 113,343 | $ 94,682 |
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Receivables [Abstract] | ||||
Average Recorded Investment | $ 1,105,042 | $ 766,171 | $ 1,069,721 | $ 718,727 |
Interest Income Recognized | $ 18,718 | $ 14,310 | $ 36,565 | $ 26,567 |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loan Status and Aging of Past Due TDR Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
TDR loans in repayment and percentage of each status: | ||||||
Allowance for loan losses | $ (295,277) | $ (272,123) | $ (251,475) | $ (207,448) | $ (187,086) | $ (184,701) |
Loans held for investment, net | 20,308,581 | 18,567,641 | ||||
Student Loan | Consumer Portfolio Segment | Troubled Debt Restructured Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
TDR loans in in-school/grace/deferment | 57,595 | 51,745 | ||||
TDR loans in forbearance | 59,682 | 69,652 | ||||
TDR loans in repayment and percentage of each status: | ||||||
Loans current | 917,138 | 774,222 | ||||
Total TDR loans in repayment | $ 1,004,539 | $ 868,954 | ||||
Loans current (as a percentage) | 91.30% | 89.10% | ||||
Total TDR loans in repayment | 100.00% | 100.00% | ||||
Total Private Education Loans, gross | $ 1,121,816 | $ 990,351 | ||||
Student Loan | Consumer Portfolio Segment | Loans delinquent 31-60 days | Troubled Debt Restructured Loans | ||||||
TDR loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 45,080 | $ 48,377 | ||||
Loans delinquent (as a percentage) | 4.50% | 5.60% | ||||
Student Loan | Consumer Portfolio Segment | Loans delinquent 61-90 days | Troubled Debt Restructured Loans | ||||||
TDR loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 25,580 | $ 28,778 | ||||
Loans delinquent (as a percentage) | 2.50% | 3.30% | ||||
Student Loan | Consumer Portfolio Segment | Loans delinquent, greater than 90 days | Troubled Debt Restructured Loans | ||||||
TDR loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 16,741 | $ 17,577 | ||||
Loans delinquent (as a percentage) | 1.70% | 2.00% |
Allowance for Loan Losses - Mod
Allowance for Loan Losses - Modified Loan Accounts for TDR (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Receivables [Abstract] | ||||
Modified Loans | $ 116,478 | $ 134,489 | $ 200,652 | $ 246,695 |
Charge-offs | 12,764 | 12,215 | 28,224 | 22,738 |
Payment Default | $ 18,254 | $ 23,679 | $ 47,988 | $ 49,113 |
Allowance for Loan Losses - L47
Allowance for Loan Losses - Loan Portfolio Stratified by Key Credit Quality Indicators (Detail) - Consumer Portfolio Segment - Student Loan - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Private Education Loans | With Cosigner | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 16,757,587 | $ 15,658,539 |
Private Education Loans with cosigner (in percentage) | 90.00% | 90.00% |
Private Education Loans | Without Cosigner | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 1,930,440 | $ 1,773,628 |
Private Education Loans without cosigner (in percentage) | 10.00% | 10.00% |
Private Education Loans | Cosigners | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 18,688,027 | $ 17,432,167 |
Total in percent | 100.00% | 100.00% |
Private Education Loans | FICO at Original Approval | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 18,688,027 | $ 17,432,167 |
Total in percent | 100.00% | 100.00% |
Private Education Loans | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 18,688,027 | $ 17,432,167 |
Total in percent | 100.00% | 100.00% |
Seasoning based on monthly scheduled payments due from 1-12 payments (in percentage) | 26.00% | 24.00% |
Seasoning based on monthly scheduled payments due from 13 - 24 payments (in percentage) | 17.00% | 19.00% |
Seasoning based on monthly scheduled payments due from 25 - 36 payments (in percentage) | 13.00% | 14.00% |
Seasoning based on monthly scheduled payments due from 37 - 48 payments (in percentage) | 9.00% | 9.00% |
Seasoning based on monthly scheduled payments due from more than 48 payments (in percentage) | 7.00% | 7.00% |
Seasoning based on monthly scheduled payments due from not yet in repayment (in percentage) | 28.00% | 27.00% |
Private Education Loans | FICO score less than 670 | FICO at Original Approval | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 1,256,273 | $ 1,153,591 |
Private Education Loans At Origination | 7.00% | 6.00% |
Private Education Loans | FICO score 670-699 | FICO at Original Approval | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 2,814,316 | $ 2,596,959 |
Private Education Loans At Origination | 15.00% | 15.00% |
Private Education Loans | FICO score 700-749 | FICO at Original Approval | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 6,152,102 | $ 5,714,554 |
Private Education Loans At Origination | 33.00% | 33.00% |
Private Education Loans | FICO score greater than or equal to 750 | FICO at Original Approval | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 8,465,336 | $ 7,967,063 |
Private Education Loans At Origination | 45.00% | 46.00% |
Private Education Loans | 1-12 payments | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 4,837,671 | $ 4,256,592 |
Private Education Loans | 13-24 payments | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 3,209,308 | 3,229,465 |
Private Education Loans | 25-36 payments | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 2,471,002 | 2,429,238 |
Private Education Loans | 37-48 payments | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 1,582,586 | 1,502,327 |
Private Education Loans | More than 48 payments | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 1,337,067 | 1,256,813 |
Private Education Loans | Not yet in repayment | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 5,250,393 | 4,757,732 |
Personal Loans | FICO at Original Approval | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 966,080 | $ 400,280 |
Total in percent | 100.00% | 100.00% |
Personal Loans | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 966,080 | $ 400,280 |
Total in percent | 100.00% | 100.00% |
Seasoning based on monthly scheduled payments due from 1-12 payments (in percentage) | 97.00% | 100.00% |
Seasoning based on monthly scheduled payments due from 13 - 24 payments (in percentage) | 3.00% | 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 | FICO at Original Approval | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 70,773 | $ 32,156 |
Private Education Loans At Origination | 7.00% | 8.00% |
Personal Loans | FICO score 670-699 | FICO at Original Approval | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 275,210 | $ 114,731 |
Private Education Loans At Origination | 29.00% | 29.00% |
Personal Loans | FICO score 700-749 | FICO at Original Approval | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 441,824 | $ 182,025 |
Private Education Loans At Origination | 46.00% | 45.00% |
Personal Loans | FICO score greater than or equal to 750 | FICO at Original Approval | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 178,273 | $ 71,368 |
Private Education Loans At Origination | 18.00% | 18.00% |
Personal Loans | 1-12 payments | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 932,863 | $ 400,280 |
Personal Loans | 13-24 payments | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 33,217 | 0 |
Personal Loans | 25-36 payments | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 0 | 0 |
Personal Loans | 37-48 payments | Seasoning | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 0 | 0 |
Personal Loans | More than 48 payments | 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, 2018 | Mar. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Loans in repayment and percentage of each status: | ||||||
Private Education Loans allowance for losses | $ (295,277) | $ (272,123) | $ (251,475) | $ (207,448) | $ (187,086) | $ (184,701) |
Loans held for investment, net | 20,308,581 | 18,567,641 | ||||
Private Education Loans | ||||||
Loans in repayment and percentage of each status: | ||||||
Private Education Loans deferred origination costs | 61,908 | 56,378 | ||||
Total Private Education Loans, gross | 18,688,027 | 17,432,167 | ||||
Private Education Loans allowance for losses | (261,695) | (243,715) | ||||
Loans held for investment, net | 18,488,240 | 17,244,830 | ||||
Private Education Loans | Consumer Portfolio Segment | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans in-school/grace/deferment | 5,250,393 | 4,757,732 | ||||
Loans in forbearance | 458,111 | 468,402 | ||||
Loans in repayment and percentage of each status: | ||||||
Loans current | $ 12,697,362 | $ 11,911,128 | ||||
Loans current (as a percentage) | 97.80% | 97.60% | ||||
Total TDR loans in repayment | $ 12,979,523 | $ 12,206,033 | ||||
Total TDR loans in repayment (as a percentage) | 100.00% | 100.00% | ||||
Private Education Loans deferred origination costs | $ 61,908 | $ 56,378 | ||||
Total Private Education Loans, gross | 18,749,935 | 17,488,545 | ||||
Total Private Education Loans, gross | 18,688,027 | 17,432,167 | ||||
Private Education Loans allowance for losses | (261,695) | (243,715) | ||||
Loans held for investment, net | $ 18,488,240 | $ 17,244,830 | ||||
Percentage of Private Education Loans in repayment | 69.50% | 70.00% | ||||
Delinquencies as a percentage of Private Education Loans in repayment | 2.20% | 2.40% | ||||
Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance | 3.40% | 3.70% | ||||
Private Education Loans | Consumer Portfolio Segment | Loans delinquent 31-60 days | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 166,322 | $ 179,002 | ||||
Loans delinquent (as a percentage) | 1.30% | 1.50% | ||||
Private Education Loans | Consumer Portfolio Segment | Loans delinquent 61-90 days | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 75,534 | $ 78,292 | ||||
Loans delinquent (as a percentage) | 0.60% | 0.60% | ||||
Private Education Loans | Consumer Portfolio Segment | Loans delinquent, greater than 90 days | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 40,305 | $ 37,611 | ||||
Loans delinquent (as a percentage) | 0.30% | 0.30% | ||||
Personal Loans | ||||||
Loans in repayment and percentage of each status: | ||||||
Private Education Loans deferred origination costs | $ (10) | $ 0 | ||||
Total Private Education Loans, gross | 966,080 | 400,280 | ||||
Private Education Loans allowance for losses | (32,509) | (6,628) | ||||
Loans held for investment, net | 933,561 | 393,652 | ||||
Personal Loans | Consumer Portfolio Segment | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans current | $ 960,865 | $ 398,988 | ||||
Loans current (as a percentage) | 99.50% | 99.70% | ||||
Total TDR loans in repayment | $ 966,080 | $ 400,280 | ||||
Total TDR loans in repayment (as a percentage) | 100.00% | 100.00% | ||||
Private Education Loans deferred origination costs | $ (10) | $ 0 | ||||
Total Private Education Loans, gross | 966,070 | 400,280 | ||||
Total Private Education Loans, gross | 966,080 | 400,280 | ||||
Private Education Loans allowance for losses | (32,509) | (6,628) | ||||
Loans held for investment, net | $ 933,561 | $ 393,652 | ||||
Delinquencies as a percentage of Private Education Loans in repayment | 0.50% | 0.30% | ||||
Personal Loans | Consumer Portfolio Segment | Loans delinquent 31-60 days | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 2,376 | $ 761 | ||||
Loans delinquent (as a percentage) | 0.20% | 0.20% | ||||
Personal Loans | Consumer Portfolio Segment | Loans delinquent 61-90 days | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 1,594 | $ 340 | ||||
Loans delinquent (as a percentage) | 0.20% | 0.10% | ||||
Personal Loans | Consumer Portfolio Segment | Loans delinquent, greater than 90 days | ||||||
Loans in repayment and percentage of each status: | ||||||
Loans delinquent | $ 1,245 | $ 191 | ||||
Loans delinquent (as a percentage) | 0.10% | 0.00% |
Allowance for Loan Losses - Acc
Allowance for Loan Losses - Accrued Interest Receivable (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||
Total Interest Receivable | $ 1,141,135 | $ 951,138 |
Greater Than 90 Days Past Due | 1,530 | 1,372 |
Allowance for Uncollectible Interest | $ 5,852 | $ 4,664 |
Deposits - Summary of Total Dep
Deposits - Summary of Total Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Banking and Thrift [Abstract] | ||
Deposits - interest bearing | $ 16,743,885 | $ 15,504,330 |
Deposits - non-interest bearing | 2,072 | 1,053 |
Total deposits | $ 16,745,957 | $ 15,505,383 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |||||
Deposits | $ 16,745,957 | $ 16,745,957 | $ 15,505,383 | ||
Brokered deposits | 8,700,000 | 8,700,000 | 8,200,000 | ||
Retail and other deposits | 8,000,000 | 8,000,000 | 7,300,000 | ||
Stable interest-bearing deposits, total | 5,700,000 | 5,700,000 | 5,500,000 | ||
Brokered deposit placement fee | 3,000 | $ 2,000 | 6,000 | $ 4,000 | |
Third party broker fees paid | 12,000 | $ 3,000 | 19,000 | $ 5,000 | |
Deposits exceeding FDIC insurance limits | 406,000 | 406,000 | 396,000 | ||
Accrued interest on deposits | $ 39,000 | $ 39,000 | $ 28,000 |
Deposits - Interest Bearing Dep
Deposits - Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Amount | ||
Money market | $ 8,113,708 | $ 7,731,966 |
Savings | 682,242 | 738,243 |
Certificates of deposit | 7,947,935 | 7,034,121 |
Deposits - interest bearing | $ 16,743,885 | $ 15,504,330 |
Weighted Average Stated Rate | ||
Money market | 2.21% | 1.80% |
Savings | 1.59% | 1.10% |
Certificates of deposit | 2.54% | 1.93% |
Borrowings - Company Borrowings
Borrowings - Company Borrowings (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Debt Instrument [Line Items] | ||
Short Term | $ 0 | $ 0 |
Long Term | 4,217,119 | 3,275,270 |
Total | 4,217,119 | 3,275,270 |
Unsecured borrowings | ||
Debt Instrument [Line Items] | ||
Short Term | 0 | 0 |
Long Term | 196,943 | 196,539 |
Total | 196,943 | 196,539 |
Secured borrowings | ||
Debt Instrument [Line Items] | ||
Short Term | 0 | 0 |
Long Term | 4,020,176 | 3,078,731 |
Total | 4,020,176 | 3,078,731 |
Secured borrowings | Private Education Loan securitization | ||
Debt Instrument [Line Items] | ||
Short Term | 0 | 0 |
Long Term | 4,020,176 | 3,078,731 |
Total | 4,020,176 | 3,078,731 |
Secured borrowings | Private Education Loan securitization | Fixed rate | ||
Debt Instrument [Line Items] | ||
Short Term | 0 | 0 |
Long Term | 2,125,035 | 1,565,760 |
Total | 2,125,035 | 1,565,760 |
Secured borrowings | Private Education Loan securitization | Variable rate | ||
Debt Instrument [Line Items] | ||
Short Term | 0 | 0 |
Long Term | 1,895,141 | 1,512,971 |
Total | 1,895,141 | 1,512,971 |
Secured borrowings | ABCP Facility | ||
Debt Instrument [Line Items] | ||
Short Term | 0 | 0 |
Long Term | 0 | 0 |
Total | $ 0 | $ 0 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | Jun. 20, 2018 | Mar. 21, 2018 | Feb. 21, 2018 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 31, 2017 | Apr. 05, 2017 | Dec. 31, 2016 |
Line of Credit Facility [Line Items] | ||||||||
Short-term borrowings | $ 0 | $ 0 | ||||||
Unsecured offering issued | 1,356,500,000 | $ 1,448,000,000 | $ 1,782,000,000 | |||||
Proceeds from loan securitization sold to third parties | $ 0 | $ 197,000,000 | ||||||
Estimated weighted average life of student loans (in years) | 5 years 3 months 5 days | 5 years 6 months 5 days | ||||||
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 | |||||||
Ownership interest percentage in residual interest in ABCP facility | 100.00% | |||||||
Short-term borrowings | 0 | 0 | ||||||
Private Education Loans 2018 Term A | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Total loan amount securitized at inception | $ 670,000,000 | |||||||
Amount of loan securitization sold to third parties | $ 670,000,000 | |||||||
Ownership interest percentage | 100.00% | |||||||
Proceeds from loan securitization sold to third parties | $ 668,000,000 | |||||||
Loans pledged as collateral | 681,000,000 | |||||||
Class A and B Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Estimated weighted average life of student loans (in years) | 4 years 4 months 25 days | 4 years 5 months 5 days | ||||||
Private Education Loans 2018 Term B | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Total loan amount securitized at inception | $ 687,000,000 | |||||||
Amount of loan securitization sold to third parties | $ 687,000,000 | |||||||
Ownership interest percentage | 100.00% | |||||||
Proceeds from loan securitization sold to third parties | $ 683,000,000 | |||||||
Loans pledged as collateral | $ 711,000,000 | |||||||
LIBOR | ABCP borrowings | Commercial Paper | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 0.85% | |||||||
LIBOR | Class A and B Notes | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 0.76% | 0.78% | ||||||
Minimum | ABCP borrowings | Commercial Paper | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Financing cost percentage of unused borrowing capacity | 0.35% | |||||||
Maximum | ABCP borrowings | Commercial Paper | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Financing cost percentage of unused borrowing capacity | 0.45% | |||||||
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 | $ 197,000,000 | $ 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 | Jun. 30, 2018 | Mar. 31, 2018 | Nov. 30, 2017 | Dec. 31, 2017 | Dec. 31, 2016 |
Securities Financing Transaction [Line Items] | |||||||||
Total Issued | $ 1,356,500,000 | $ 1,448,000,000 | $ 1,782,000,000 | ||||||
Total loan and accrued interest amount securitized at inception on-balance sheet term securitization | 1,504,121,000 | $ 1,606,804,000 | $ 2,107,042,000 | ||||||
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 | ||||||||
2017-B | |||||||||
Securities Financing Transaction [Line Items] | |||||||||
Total Issued | $ 676,000,000 | ||||||||
Weighted Average Life (in years) | 4 years 25 days | ||||||||
Basis spread on variable rate | 0.80% | ||||||||
2018-A | |||||||||
Securities Financing Transaction [Line Items] | |||||||||
Total Issued | $ 670,000,000 | ||||||||
Weighted Average Life (in years) | 4 years 5 months 4 days | ||||||||
Basis spread on variable rate | 0.78% | ||||||||
2018-B | |||||||||
Securities Financing Transaction [Line Items] | |||||||||
Total Issued | $ 686,500,000 | ||||||||
Weighted Average Life (in years) | 4 years 4 months 25 days | ||||||||
Basis spread on variable rate | 0.76% | ||||||||
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, 2018 | Dec. 31, 2017 | Jun. 30, 2017 |
Debt Outstanding | |||
Short Term | $ 0 | $ 0 | |
Long Term | 4,217,119 | 3,275,270 | |
Total | 4,217,119 | 3,275,270 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Restricted Cash | 114,659 | 101,836 | $ 62,466 |
Other Assets | 99,651 | 84,853 | |
Variable Interest Entity, Primary Beneficiary | |||
Debt Outstanding | |||
Short Term | 0 | 0 | |
Long Term | 4,020,176 | 3,078,731 | |
Total | 4,020,176 | 3,078,731 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Loans | 4,793,290 | 3,691,024 | |
Restricted Cash | 105,963 | 96,983 | |
Other Assets | 335,039 | 240,369 | |
Total | 5,234,292 | 4,028,376 | |
Variable Interest Entity, Primary Beneficiary | Private Education Loan securitization | |||
Debt Outstanding | |||
Short Term | 0 | 0 | |
Long Term | 4,020,176 | 3,078,731 | |
Total | 4,020,176 | 3,078,731 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Loans | 4,793,290 | 3,691,024 | |
Restricted Cash | 105,963 | 95,966 | |
Other Assets | 334,333 | 240,208 | |
Total | 5,233,586 | 4,027,198 | |
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 | 1,017 | |
Other Assets | 706 | 161 | |
Total | $ 706 | $ 1,178 |
Derivative Financial Instrume57
Derivative Financial Instruments - Additional Information (Detail) - USD ($) | 6 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2017 | |
Derivative [Line Items] | ||
Notional value | $ 6,500,000,000 | |
Net derivatives | 30,000,000 | $ 20,000,000 |
Cash collateral held relative to derivative exposure | 0 | 0 |
Cash collateral pledged | 28,000,000 | $ 22,000,000 |
Chicago Mercantile Exchange | ||
Derivative [Line Items] | ||
Notional value | $ 5,900,000,000 | |
Percent of total notional derivative contracts | 90.30% | |
London Clearing House | ||
Derivative [Line Items] | ||
Notional value | $ 600,000,000 | |
Percent of total notional derivative contracts | 9.70% |
Derivative Financial Instrume58
Derivative Financial Instruments - Impact of Derivatives on Consolidated Balance Sheet (Detail) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Total net derivatives | $ 30,000 | $ 20,000 |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | 1,403 | 812 |
Derivative Liabilities | (92) | (2,584) |
Total net derivatives | 1,311 | (1,772) |
Interest rate swaps | Trading | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | 0 | 182 |
Derivative Liabilities | (92) | 0 |
Total net derivatives | (92) | 182 |
Interest rate swaps | Cash Flow | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | 959 | 0 |
Derivative Liabilities | 0 | (2,584) |
Total net derivatives | 959 | (2,584) |
Interest rate swaps | Fair Value | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | 444 | 630 |
Derivative Liabilities | 0 | 0 |
Total net derivatives | $ 444 | $ 630 |
Derivative Financial Instrume59
Derivative Financial Instruments - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Other Liabilities | ||
Cash collateral pledged | $ 28,000 | $ 22,000 |
Other Assets | ||
Other Assets | ||
Gross position | 1,403 | 812 |
Impact of master netting agreement | (92) | (812) |
Derivative values with impact of master netting agreements (as carried on balance sheet) | 1,311 | 0 |
Cash collateral pledged | 28,385 | 0 |
Net position | 29,696 | 0 |
Other Liabilities | ||
Other Liabilities | ||
Gross position | (92) | (2,584) |
Impact of master netting agreement | 92 | 812 |
Derivative values with impact of master netting agreements (as carried on balance sheet) | 0 | (1,772) |
Cash collateral pledged | 0 | 21,586 |
Net position | $ 0 | $ 19,814 |
Derivative Financial Instrume60
Derivative Financial Instruments - Notional Values (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Derivatives, Fair Value [Line Items] | ||
Notional values | $ 6,500,000 | |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | 6,529,489 | $ 5,459,075 |
Interest rate swaps | Trading | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | 1,317,494 | 987,577 |
Interest rate swaps | Cash Flow Hedges | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | 1,344,791 | 1,408,649 |
Interest rate swaps | Fair Value Hedges | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | $ 3,867,204 | $ 3,062,849 |
Derivative Financial Instrume61
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Trading | ||||
Total | $ (8,623) | $ (3,397) | $ (6,806) | $ (7,567) |
Designated as Hedging Instrument | Fair Value Hedges | ||||
Fair Value Hedges | ||||
Hedge ineffectiveness realized gains (losses) recorded in earnings | (2,914) | (3,711) | 2,939 | (7,878) |
Realized gains (losses) recorded in interest expense | (2,812) | 2,881 | (3,326) | 7,428 |
Trading | ||||
Total | (5,726) | (830) | (387) | (450) |
Designated as Hedging Instrument | Cash Flow Hedges | ||||
Cash Flow Hedges | ||||
Hedge ineffectiveness gains (losses) recorded in earnings | 65 | (75) | 2,749 | (147) |
Realized losses recorded in interest expense | (543) | (2,669) | (2,104) | (6,008) |
Trading | ||||
Total | (478) | (2,744) | 645 | (6,155) |
Trading | ||||
Trading | ||||
Interest reclassification | (239) | (101) | (129) | (20) |
Realized losses recorded in earnings | (2,180) | 278 | (6,935) | (942) |
Total | $ (2,419) | $ 177 | $ (7,064) | $ (962) |
Derivative Financial Instrume62
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, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Amount of gain recognized in other comprehensive income (loss) | $ 9,471 | $ (4,698) | $ 28,200 | $ (3,258) |
Less: amount of loss reclassified in interest expense | (543) | (2,669) | (2,104) | (6,008) |
Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit | $ 10,014 | $ (2,029) | $ 30,304 | $ 2,750 |
Stockholders' Equity - Common s
Stockholders' Equity - Common stock repurchased (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Equity [Abstract] | ||||
Shares repurchased related to employee stock-based compensation plans (in shares) | 200,577 | 981,477 | 2,940,595 | 2,584,964 |
Average purchase price per share (in dollars per share) | $ 11.60 | $ 12.39 | $ 11.33 | $ 12.12 |
Common shares issued (in shares) | 384,955 | 1,491,057 | 5,944,946 | 5,229,774 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Detail (Details) | Jun. 29, 2018$ / shares |
Common Stock | |
Class of Stock [Line Items] | |
Common stock closing price (in dollars per share) | $ 11.45 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Numerator: | ||||
Net income | $ 109,832 | $ 70,617 | $ 236,086 | $ 165,560 |
Preferred stock dividends | 3,920 | 3,974 | 7,317 | 9,549 |
Net income attributable to SLM Corporation common stock | $ 105,912 | $ 66,643 | $ 228,769 | $ 156,011 |
Denominator: | ||||
Weighted average shares used to compute basic EPS (in shares) | 435,187,000 | 431,245,000 | 434,573,000 | 430,572,000 |
Effect of dilutive securities: | ||||
Dilutive effect of stock options, restricted stock and restricted stock units and Employee Stock Purchase Plan (ESPP) (in shares) | 4,258,000 | 6,870,000 | 4,639,000 | 7,852,000 |
Weighted average shares used to compute diluted EPS (in shares) | 439,445,000 | 438,115,000 | 439,212,000 | 438,424,000 |
Basic earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.24 | $ 0.15 | $ 0.53 | $ 0.36 |
Diluted earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.24 | $ 0.15 | $ 0.52 | $ 0.35 |
Securities excluded from computation of EPS (in shares) | 0 | 0 | 0 | 0 |
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, 2018 | Dec. 31, 2017 |
Assets | ||
Available-for-sale investments | $ 178,145 | $ 244,088 |
Fair Value Measurements on a Recurring Basis | ||
Assets | ||
Available-for-sale investments | 178,145 | 244,088 |
Derivative instruments | 1,403 | 812 |
Total earning assets | 179,548 | 244,900 |
Liabilities | ||
Derivative instruments | (92) | (2,584) |
Fair Value Measurements on a Recurring Basis | 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 on a Recurring Basis | Level 2 | ||
Assets | ||
Available-for-sale investments | 178,145 | 244,088 |
Derivative instruments | 1,403 | 812 |
Total earning assets | 179,548 | 244,900 |
Liabilities | ||
Derivative instruments | (92) | (2,584) |
Fair Value Measurements on a Recurring Basis | 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, 2018 | Dec. 31, 2017 |
Earning assets | ||
Loans held for investment, net, difference | $ 2,041,250 | $ 2,105,495 |
Accrued interest receivable, difference | 0 | |
Tax indemnification receivable | 153,470 | 168,011 |
Total earning assets, difference | 2,041,250 | 2,105,495 |
Interest-bearing liabilities | ||
Long-term borrowings, difference | 18,969 | (24,601) |
Total interest-bearing liabilities, difference | 55,127 | (34,688) |
Excess of net asset fair value over carrying value | 2,096,377 | 2,070,807 |
Certificates of deposit | ||
Interest-bearing liabilities | ||
Deposits, difference | 36,158 | (10,087) |
Fair Value | ||
Earning assets | ||
Loans held for investment, net | 22,349,831 | 20,673,136 |
Cash and cash equivalents | 2,043,789 | 1,534,339 |
Available-for-sale investments | 178,145 | 244,088 |
Accrued interest receivable | 1,161,161 | 967,482 |
Tax indemnification receivable | 153,470 | 168,011 |
Derivative instruments | 1,403 | 812 |
Total earning assets | 25,887,799 | 23,587,868 |
Interest-bearing liabilities | ||
Long-term borrowings | 4,198,150 | 3,299,871 |
Accrued interest payable | 46,658 | 35,363 |
Derivative instruments | 92 | 2,584 |
Total interest-bearing liabilities | 20,952,627 | 18,852,235 |
Fair Value | Money-market and savings accounts | ||
Interest-bearing liabilities | ||
Deposits | 8,795,950 | 8,470,209 |
Fair Value | Certificates of deposit | ||
Interest-bearing liabilities | ||
Deposits | 7,911,777 | 7,044,208 |
Carrying Value | ||
Earning assets | ||
Loans held for investment, net | 20,308,581 | 18,567,641 |
Cash and cash equivalents | 2,043,789 | 1,534,339 |
Available-for-sale investments | 178,145 | 244,088 |
Accrued interest receivable | 1,161,161 | 967,482 |
Tax indemnification receivable | 153,470 | 168,011 |
Derivative instruments | 1,403 | 812 |
Total earning assets | 23,846,549 | 21,482,373 |
Interest-bearing liabilities | ||
Long-term borrowings | 4,217,119 | 3,275,270 |
Accrued interest payable | 46,658 | 35,363 |
Derivative instruments | 92 | 2,584 |
Total interest-bearing liabilities | 21,007,754 | 18,817,547 |
Carrying Value | Money-market and savings accounts | ||
Interest-bearing liabilities | ||
Deposits | 8,795,950 | 8,470,209 |
Deposits, difference | 0 | |
Carrying Value | Certificates of deposit | ||
Interest-bearing liabilities | ||
Deposits | $ 7,947,935 | $ 7,034,121 |
Arrangements with Navient Cor68
Arrangements with Navient Corporation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Apr. 30, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Deferred taxes to be indemnified | $ 283,000 | ||||
Amount remaining | $ 18,000 | $ 18,000 | |||
Remaining balance of indemnification receivable in connection with the spin-off | 27,000 | 27,000 | |||
Liability for uncertainty in income taxes | 26,000 | 26,000 | |||
Liability for uncertainty in income taxes relating to historical transactions | 110,000 | 110,000 | |||
Gain on sale of portfolio split loans | 2,060 | $ 0 | 2,060 | $ 0 | |
Discontinued Operations, Disposed of by Sale | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Portfolio split loans sold | 43,000 | $ 43,000 | |||
Gain on sale of portfolio split loans | $ 2,000 |
Regulatory Capital - Well Capit
Regulatory Capital - Well Capitalized Regulatory Requirements (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Dec. 31, 2017 |
Actual Amount | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | $ 2,617,021 | $ 2,350,081 |
Tier 1 Capital (to Risk-Weighted Assets) | 2,617,021 | 2,350,081 |
Total Capital (to Risk-Weighted Assets) | 2,889,876 | 2,597,926 |
Tier 1 Capital (to Average Assets) | $ 2,617,021 | $ 2,350,081 |
Actual Ratio | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | 12.00% | 11.90% |
Tier 1 Capital (to Risk-Weighted Assets) | 12.00% | 11.90% |
Total Capital (to Risk-Weighted Assets) | 13.30% | 13.10% |
Tier 1 Capital (to Average Assets) | 11.20% | 11.00% |
Well Capitalized Regulatory Requirements, Amount | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | $ 1,417,350 | $ 1,288,435 |
Tier 1 Capital (to Risk-Weighted Assets) | 1,744,431 | 1,585,767 |
Total Capital (to Risk-Weighted Assets) | 2,180,539 | 1,982,208 |
Tier 1 Capital (to Average Assets) | $ 1,164,750 | $ 1,067,739 |
Well Capitalized Regulatory Requirements, Ratio | ||
Common Equity Tier 1 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 ($) | 6 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Banking and Thrift [Abstract] | ||
Dividends | $ 0 | $ 0 |
Commitments, Contingencies an71
Commitments, Contingencies and Guarantees (Detail) $ in Millions | 6 Months Ended |
Jun. 30, 2018USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual obligation | $ 1,700 |
Other liabilities reserve | $ 0.6 |
Loss contingency, loss emergence period | 1 year |