Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Jan. 31, 2020 | Jun. 30, 2019 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 001-13251 | ||
Entity Registrant Name | SLM Corp | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 52-2013874 | ||
Entity Address, Address Line One | 300 Continental Drive | ||
Entity Address, City or Town | Newark, | ||
Entity Address, State or Province | DE | ||
Entity Address, Postal Zip Code | 19713 | ||
City Area Code | 302 | ||
Local Phone Number | 451-0200 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 4.1 | ||
Entity Common Stock, Shares Outstanding (in shares) | 422,615,193 | ||
Documents Incorporated by Reference | Portions of the proxy statement relating to the Registrant’s 2020 Annual Meeting of Stockholders are incorporated by reference into Part III of this Annual Report on Form 10-K. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0001032033 | ||
Current Fiscal Year End Date | --12-31 | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common stock, par value $.20 per share | ||
Trading Symbol | SLM | ||
Security Exchange Name | NASDAQ | ||
Noncumulative Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Floating Rate Non-Cumulative Preferred Stock, Series B, par value $.20 per share | ||
Trading Symbol | SLMBP | ||
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and cash equivalents | $ 5,563,877 | $ 2,559,106 |
Investments | ||
Available-for-sale investments at fair value (cost of $485,756 and $182,325, respectively) | 487,669 | 176,245 |
Other investments | 84,420 | 55,554 |
Total investments | 572,089 | 231,799 |
Loans held for investment (net of allowance for losses of $441,912 and $341,121, respectively) | 24,667,792 | 22,270,919 |
Restricted cash | 156,883 | 122,789 |
Other interest-earning assets | 52,564 | 27,157 |
Accrued interest receivable | 1,392,725 | 1,191,981 |
Premises and equipment, net | 134,749 | 105,504 |
Income taxes receivable, net | 88,844 | 41,570 |
Tax indemnification receivable | 27,558 | 39,207 |
Other assets | 29,398 | 48,141 |
Total assets | 32,686,479 | 26,638,173 |
Liabilities | ||
Deposits | 24,283,983 | 18,943,158 |
Short-term borrowings | 289,230 | 0 |
Long-term borrowings | 4,354,037 | 4,284,304 |
Income taxes payable, net | 0 | 0 |
Upromise member accounts | 192,662 | 213,104 |
Other liabilities | 254,731 | 224,951 |
Total liabilities | 29,374,643 | 23,665,517 |
Commitments and contingencies | ||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | ||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 453.6 million and 449.9 million shares issued, respectively | 90,720 | 89,972 |
Additional paid-in capital | 1,307,630 | 1,274,635 |
Accumulated other comprehensive income (loss) (net of tax expense (benefit) of ($3,995) and $3,436, respectively) | (12,367) | 10,623 |
Retained earnings | 1,850,512 | 1,340,017 |
Total SLM Corporation stockholders’ equity before treasury stock | 3,636,495 | 3,115,247 |
Less: Common stock held in treasury at cost: 32.5 million and 14.2 million shares, respectively | (324,659) | (142,591) |
Total equity | 3,311,836 | 2,972,656 |
Total liabilities and equity | 32,686,479 | 26,638,173 |
Series B Preferred Stock | ||
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 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-forsale investments at fair value, cost | $ 485,756 | $ 182,325 |
Loans held for investment | $ 441,912 | $ 341,121 |
Preferred stock, stated value (in dollars per share) | $ 0.2 | $ 0.2 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, par value (in dollars per share) | $ 0.2 | $ 0.2 |
Common stock, shares authorized (in shares) | 1,125,000,000 | 1,125,000,000 |
Common stock, shares issued (in shares) | 453,600,000 | 449,900,000 |
Accumulated other comprehensive loss tax benefit | $ (3,995) | $ 3,436 |
Common stock held in treasury (in shares) | 32,500,000 | 14,200,000 |
Series A Preferred Stock | ||
Preferred stock, stated value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Series B Preferred Stock | ||
Preferred stock, stated value (in dollars per share) | $ 100 | $ 100 |
Preferred stock, shares issued (in shares) | 4,000,000 | 4,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest income: | |||
Loans | $ 2,249,169 | $ 1,894,687 | $ 1,413,505 |
Investments | 7,607 | 6,162 | 8,288 |
Cash and cash equivalents | 74,256 | 34,503 | 15,510 |
Total interest income | 2,331,032 | 1,935,352 | 1,437,303 |
Interest expense: | |||
Deposits | 547,746 | 389,349 | 223,691 |
Interest expense on short-term borrowings | 6,193 | 5,833 | 6,341 |
Interest expense on long-term borrowings | 153,778 | 127,106 | 78,050 |
Total interest expense | 707,717 | 522,288 | 308,082 |
Net interest income | 1,623,315 | 1,413,064 | 1,129,221 |
Less: provisions for credit losses | 354,249 | 244,864 | 185,765 |
Net interest income after provisions for credit losses | 1,269,066 | 1,168,200 | 943,456 |
Non-interest income (loss): | |||
Gains on sales of loans, net | 0 | 2,060 | 0 |
Losses on sales of securities, net | 0 | (1,549) | 0 |
Gains (losses) on derivatives and hedging activities, net | 17,825 | (87) | (8,266) |
Other income (loss) | 31,102 | (52,319) | 5,364 |
Total non-interest income (loss) | 48,927 | (51,895) | (2,902) |
Non-interest expenses: | |||
Compensation and benefits | 278,229 | 252,346 | 213,319 |
FDIC assessment fees | 32,852 | 32,786 | 28,950 |
Other operating expenses | 263,172 | 271,844 | 206,820 |
Total non-interest expenses | 574,253 | 556,976 | 449,089 |
Income before income tax expense | 743,740 | 559,329 | 491,465 |
Income tax expense | 165,464 | 71,853 | 202,531 |
Net income | 578,276 | 487,476 | 288,934 |
Preferred stock dividends | 16,837 | 15,640 | 15,714 |
Net income attributable to SLM Corporation common stock | $ 561,439 | $ 471,836 | $ 273,220 |
Basic earnings per common share attributable to SLM Corporation (in usd per share) | $ 1.31 | $ 1.08 | $ 0.63 |
Average common shares outstanding (in shares) | 427,292 | 435,054 | 431,216 |
Diluted earnings per common share attributable to SLM Corporation (in usd per share) | $ 1.30 | $ 1.07 | $ 0.62 |
Average common and common equivalent shares outstanding (in shares) | 430,674 | 439,681 | 438,551 |
Declared dividends per common share attributable to SLM Corporation (in usd per share) | $ 0.12 | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 578,276 | $ 487,476 | $ 288,934 |
Other comprehensive income (loss): | |||
Unrealized gains (losses) on investments | 7,993 | (2,561) | (716) |
Unrealized gains (losses) on cash flow hedges | (38,414) | 11,907 | 19,195 |
Total unrealized gains (losses) | (30,421) | 9,346 | 18,479 |
Income tax (expense) benefit | 7,431 | (2,333) | (7,060) |
Other comprehensive income (loss), net of tax (expense) benefit | (22,990) | 7,013 | 11,419 |
Total comprehensive income | $ 555,286 | $ 494,489 | $ 300,353 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Series A Preferred Stock | Total SLM Corporation Equity | Total SLM Corporation EquitySeries A Preferred Stock | Total SLM Corporation EquitySeries B Preferred Stock | Redemption of Series A Preferred Stock | Redemption of Series A Preferred StockSeries A Preferred Stock | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained EarningsSeries A Preferred Stock | Retained EarningsSeries B Preferred Stock |
Beginning balance, shares issued (in shares) at Dec. 31, 2016 | 7,300,000 | 436,632,479 | ||||||||||||
Beginning balance (in shares) at Dec. 31, 2016 | 428,903,559 | (7,728,920) | ||||||||||||
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 | $ 288,934 | 288,934 | 288,934 | |||||||||||
Other comprehensive income, net of tax | 11,419 | 11,419 | 11,419 | |||||||||||
Total comprehensive income | $ 300,353 | 300,353 | ||||||||||||
Cash dividends: | ||||||||||||||
Preferred Stock, series B ($3.91 per share) | $ (3,961) | $ (11,753) | $ (3,961) | $ (11,753) | ||||||||||
Redemption of Series A Preferred Stock (in shares) | (3,358,417) | (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) | 6,831,108 | 6,831,108 | ||||||||||||
Issuance of common shares | 19,655 | $ 1,366 | 18,289 | |||||||||||
Stock-based compensation expense | 27,899 | 27,899 | ||||||||||||
Common stock repurchased (in shares) | 0 | |||||||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (3,358,417) | (3,358,417) | ||||||||||||
Shares repurchased related to employee stock-based compensation plans | (40,160) | $ (40,160) | ||||||||||||
Ending balance, shares issued (in shares) at Dec. 31, 2017 | 4,000,000 | 443,463,587 | ||||||||||||
Ending balance (in shares) at Dec. 31, 2017 | 432,376,250 | (11,087,337) | ||||||||||||
Ending 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] | ||||||||||||||
Reclassification resulting from the adoption of ASU No. 2018-02 | $ 600 | |||||||||||||
Beginning balance, shares issued (in shares) at Dec. 31, 2017 | 4,000,000 | 443,463,587 | ||||||||||||
Beginning balance (in shares) at Dec. 31, 2017 | 432,376,250 | (11,087,337) | ||||||||||||
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 | 487,476 | 487,476 | 487,476 | |||||||||||
Other comprehensive income, net of tax | 7,013 | 7,013 | 7,013 | |||||||||||
Total comprehensive income | $ 494,489 | 494,489 | ||||||||||||
Reclassification resulting from the adoption of ASU No. 2018-02 | 0 | 0 | 592 | (592) | ||||||||||
Cash dividends: | ||||||||||||||
Preferred Stock, series B ($3.91 per share) | $ (15,640) | $ (15,640) | ||||||||||||
Redemption of Series A Preferred Stock (in shares) | (3,087,396) | |||||||||||||
Issuance of common shares (in shares) | 6,392,634 | 6,392,634 | ||||||||||||
Issuance of common shares | 22,113 | $ 1,279 | 20,834 | |||||||||||
Stock-based compensation expense | 31,524 | 31,524 | ||||||||||||
Common stock repurchased (in shares) | 0 | |||||||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (3,087,396) | (3,087,396) | ||||||||||||
Shares repurchased related to employee stock-based compensation plans | (34,947) | $ (34,947) | ||||||||||||
Ending balance, shares issued (in shares) at Dec. 31, 2018 | 4,000,000 | 449,856,221 | ||||||||||||
Ending balance (in shares) at Dec. 31, 2018 | 435,681,488 | (14,174,733) | ||||||||||||
Ending balance at Dec. 31, 2018 | $ 2,972,656 | 2,972,656 | $ 400,000 | $ 89,972 | $ (142,591) | 1,274,635 | 10,623 | 1,340,017 | ||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||
Reclassification resulting from the adoption of ASU No. 2017-12 | Accounting Standards Update 2017-12 | 861 | 270 | 591 | |||||||||||
Net income | 578,276 | 578,276 | 578,276 | |||||||||||
Other comprehensive income, net of tax | (22,990) | (22,990) | (22,990) | |||||||||||
Total comprehensive income | $ 555,286 | 555,286 | ||||||||||||
Cash dividends: | ||||||||||||||
Preferred Stock, series B ($3.91 per share) | (16,837) | (16,837) | ||||||||||||
Common Stock ($0.12 per share) | (51,114) | (51,114) | ||||||||||||
Redemption of Series A Preferred Stock (in shares) | (1,369,630) | |||||||||||||
Dividend equivalent units related to employee stock-based compensation plans | 0 | 5 | (5) | |||||||||||
Issuance of common shares (in shares) | 3,743,705 | 3,743,705 | ||||||||||||
Issuance of common shares | 3,375 | $ 748 | 2,627 | |||||||||||
Stock-based compensation expense | 30,538 | 30,363 | 175 | |||||||||||
Common stock repurchased (in shares) | (16,962,199) | (16,962,199) | (16,962,199) | |||||||||||
Common stock repurchased | $ (33,000) | (167,201) | $ (167,201) | |||||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (1,369,630) | (1,369,630) | ||||||||||||
Shares repurchased related to employee stock-based compensation plans | (14,867) | $ (14,867) | ||||||||||||
Ending balance, shares issued (in shares) at Dec. 31, 2019 | 4,000,000 | 453,599,926 | ||||||||||||
Ending balance (in shares) at Dec. 31, 2019 | 421,093,364 | (32,506,562) | ||||||||||||
Ending balance at Dec. 31, 2019 | $ 3,311,836 | $ 3,311,836 | $ 400,000 | $ 90,720 | $ (324,659) | $ 1,307,630 | $ (12,367) | $ 1,850,512 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Dividends | $ 0.12 | $ 0 | $ 0 |
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) | $ 4.21 | $ 3.91 | $ 2.91 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Operating activities | |||
Net income | $ 578,276 | $ 487,476 | $ 288,934 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Provisions for credit losses | 354,249 | 244,864 | 185,765 |
Deferred tax benefit | (9,714) | (63,301) | (58,752) |
Amortization of brokered deposit placement fee | 17,788 | 13,055 | 9,372 |
Amortization of Secured Borrowing Facility upfront fee | 1,117 | 1,128 | 1,316 |
Amortization of deferred loan origination costs and loan premium/(discounts), net | 13,049 | 10,905 | 8,258 |
Net amortization of discount on investments | 2,069 | 1,712 | 2,082 |
Reduction of tax indemnification receivable | 11,649 | 92,815 | 31,888 |
Depreciation of premises and equipment | 14,669 | 13,829 | 11,171 |
Stock-based compensation expense | 30,600 | 31,524 | 27,899 |
Unrealized (gains) losses on derivative and hedging activities, net | (19,046) | (1,353) | 7,248 |
Gains on sale of loans, net | 0 | (2,060) | 0 |
Losses on sales of securities, net | 0 | 1,549 | 0 |
Other adjustments to net income, net | 3,724 | 7,446 | 6,305 |
Changes in operating assets and liabilities: | |||
Increase in accrued interest receivable | (963,885) | (864,461) | (703,081) |
Increase in non-marketable securities | (10,700) | (5,000) | 0 |
(Increase) decrease in other interest-earning assets | (25,407) | (5,571) | 27,528 |
Decrease in tax indemnification receivable | 0 | 35,989 | 59,633 |
Increase in other assets | (3,091) | (64,777) | (72,646) |
Decrease in income tax payable, net | (30,191) | (79,693) | (19,687) |
Increase in accrued interest payable | 13,817 | 25,979 | 14,304 |
Increase in other liabilities | 5,386 | 15,204 | 1,304 |
Total adjustments | (593,917) | (590,217) | (460,093) |
Total net cash used in operating activities | (15,641) | (102,741) | (171,159) |
Investing activities | |||
Loans acquired and originated | (6,138,105) | (6,493,367) | (5,243,732) |
Net proceeds from sales of loans held for investment | 0 | 44,832 | 6,992 |
Proceeds from claim payments | 42,869 | 54,659 | 49,146 |
Net decrease in loans held for investment | 4,094,021 | 3,076,992 | 2,065,727 |
Purchases of available-for-sale securities | (356,414) | (15,876) | (78,327) |
Proceeds from sales and maturities of available-for-sale securities | 50,915 | 77,897 | 40,044 |
Total net cash used in investing activities | (2,306,714) | (3,254,863) | (3,160,150) |
Financing activities | |||
Brokered deposit placement fee | (27,978) | (25,785) | (12,200) |
Net increase in certificates of deposit | 4,349,741 | 2,525,040 | 1,579,615 |
Net increase in other deposits | 923,793 | 918,420 | 508,389 |
Borrowings collateralized by loans in securitization trusts - issued | 1,105,594 | 1,891,027 | 1,440,127 |
Borrowings collateralized by loans in securitization trusts - repaid | (1,042,892) | (888,640) | (534,905) |
Borrowings under Secured Borrowing Facility | 297,800 | 300,000 | 300,000 |
Repayment of borrowings under Secured Borrowing Facility | (8,570) | (300,000) | (300,000) |
Fees paid - Secured Borrowing Facility | (1,116) | (1,098) | (1,281) |
Issuance costs for unsecured debt offering | 0 | 0 | (1,057) |
Unsecured debt issued | 0 | 0 | 197,000 |
Redemption of Series A Preferred Stock | 0 | 0 | (165,000) |
Common stock dividends paid | (51,114) | 0 | 0 |
Preferred stock dividends paid | (16,837) | (15,640) | (15,714) |
Common stock repurchased | (167,201) | 0 | 0 |
Net cash provided by financing activities | 5,361,220 | 4,403,324 | 2,994,974 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 3,038,865 | 1,045,720 | (336,335) |
Cash, cash equivalents and restricted cash at beginning of year | 2,681,895 | 1,636,175 | 1,972,510 |
Cash, cash equivalents and restricted cash at end of year | 5,720,760 | 2,681,895 | 1,636,175 |
Cash disbursements made for: | |||
Interest | 666,018 | 472,459 | 269,017 |
Income taxes paid | 201,792 | 228,074 | 282,278 |
Income taxes refunded | (853) | (13,449) | (1,401) |
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Balance Sheets: | |||
Total cash, cash equivalents and restricted cash | $ 2,681,895 | $ 1,636,175 | $ 1,636,175 |
Organization and Business
Organization and Business | 12 Months Ended |
Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Business | Organization and Business SLM Corporation (“Sallie Mae,” “SLM,” the “Company,” “we,” “our” or “us”) is a holding company that operates through a number of subsidiaries and is the premier brand for college and continuous education. While the Sallie Mae name has existed for more than 40 years, the company that operates as Sallie Mae today, SLM Corporation, was formed in late 2013 and includes its wholly-owned subsidiary, Sallie Mae Bank, an industrial bank established in 2005 (the “Bank”). On April 30, 2014, we legally separated (the “Spin-Off”) from another public company that is now named Navient Corporation (“Navient”),which is in the education loan management, servicing, and asset recovery business. We are a consumer banking business and did not retain any assets or liabilities generated prior to the Spin-Off other than those explicitly retained by us. We sometimes refer to the company that existed prior to the Spin-Off as “pre-Spin-Off SLM.” The Bank was formed in 2005 to fund and originate Private Education Loans (as hereinafter defined) on behalf of pre-Spin-Off SLM. While the Bank first originated Private Education Loans in February 2006, pre-Spin-Off SLM continued to purchase a portion of its Private Education Loans from third-party lending partners through mid-2009. With some minor exceptions, the Bank became the sole originator of Private Education Loans for pre-Spin-Off SLM beginning with the 2009-2010 academic year, the first academic year following the launch of the Bank’s Smart Option Student Loan program in mid-2009. Our primary business is to originate and service loans we make to students and their families to finance the cost of their education. We use “Private Education Loans” to mean education loans to students or their families that are not made, insured or guaranteed by any state or federal government. Private Education Loans do not include loans insured or guaranteed under the Federal Family Education Loan Program (“FFELP Loans”). The core of our marketing strategy is to generate Private Education Loan originations by promoting our products on campuses through the financial aid offices as well as through online and direct marketing to students and their families. The Bank is regulated by the Utah Department of Financial Institutions (the “UDFI”), the Federal Deposit Insurance Corporation (the “FDIC”) and the Consumer Financial Protection Bureau (the “CFPB”). We also operate Upromise, Inc. (“Upromise”), a save-for-college rewards program helping Americans save for higher education. |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Use of Estimates and Assumptions The financial reporting and accounting policies of SLM Corporation conform to generally accepted accounting principles in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Key accounting policies that include significant judgments and estimates include the valuation of allowance for loan losses and derivative accounting. Consolidation The consolidated financial statements include the accounts of SLM Corporation and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. We consolidate any variable interest entity (“VIE”) where we have determined we are the primary beneficiary. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. Cash and Cash Equivalents Cash and cash equivalents include cash held in the Federal Reserve Bank of San Francisco (the “FRB”) and commercial bank accounts, and other short-term liquid instruments with original maturities of three months or less. Fees associated with investing cash and cash equivalents are amortized into interest income using the effective interest rate method. Available-for-Sale Investments Investments consisted of mortgage-backed securities, Utah Housing Corporation bonds and U.S. government-sponsored enterprises securities. We record our investment purchases and sales on a trade date basis. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. Our investments are classified as available-for-sale and reported at fair value. Unrealized gains or losses on available-for-sale investments are recorded in equity and reported as a component of other comprehensive income (loss), net of applicable income taxes, unless a decline in the investment’s value is considered to be other-than-temporary, in which case the loss is recorded directly to earnings. Management reviews all investments at least quarterly to determine whether any impairment is other-than-temporary. Impairment is evaluated by considering several factors, including the length of time and extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability to retain the investment to allow for an anticipated recovery in fair value. If, based on the analysis, it is determined that the impairment is other-than-temporary, the investment is written down to fair value and a loss is recognized through earnings. Other Investments We hold investments in non-marketable securities and account for these investments at cost, less impairment, plus or minus observable price changes of identical or similar securities of the same issuer. We also invest in affordable housing projects that qualify for the low income housing tax credit (“LIHTC”), which is designed to promote private development of low income housing. These investments generate a return mostly through realization of federal tax credits. Loans Held for Investment Loans, consisting of Private Education Loans, FFELP Loans, unsecured personal loans used for non-educational purposes by borrowers (“Personal Loans”), and our suite of credit cards (“Credit Cards”) that we have the ability and intent to hold for the foreseeable future, are classified as held for investment, and are carried at amortized cost. Amortized cost includes the unamortized premiums, discounts, and capitalized origination costs and fees, all of which are amortized to interest income as discussed under “Loan Interest Income.” Loans which are held for investment are reported net of an allowance for loan losses. Restricted Cash Restricted cash primarily includes amounts held in student loan securitization trusts and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the trust assets and when principal and interest is paid on trust liabilities. Allowance for Loan Losses We maintain an allowance for loan losses at an amount sufficient to absorb probable losses incurred in our portfolios, as well as regarding future loan commitments, at the reporting date based on a projection of estimated probable credit losses incurred in the portfolio. We consider a loan to be impaired when, based on current information, a loss has been incurred and it is probable that we will not receive all contractual amounts due. When making our assessment as to whether a loan is impaired, we also take into account more than insignificant delays in payment. We generally evaluate impaired loans on an aggregate basis by grouping similar loans. We analyze our portfolios to determine the effects that the various stages of delinquency and forbearance have on borrower default behavior and ultimate charge off. We estimate the allowance for loan losses for our loan portfolios using a roll rate analysis of delinquent and current accounts. A “roll rate analysis” is a technique used to estimate the likelihood that a loan receivable may progress through the various delinquency stages and ultimately charge off. We also take into account the current and future economic environment and certain other qualitative factors when calculating the allowance for loan losses. The evaluation of the allowance for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. Our default estimates are based on a loss emergence period of one year for Private Education Loans, Personal Loans and Credit Cards and two years for FFELP Loans. A loss emergence period represents the expected period between the first occurrence of an event likely to cause a loss on a loan and the date the loan is expected to be charged off, taking into consideration account management practices that affect the timing of a loss, such as the usage of forbearance. The loss emergence period underlying the allowance for loan losses is subject to a number of assumptions. If actual future performance in delinquency, charge-offs and recoveries is significantly different than estimated, or account management assumptions or practices were to change, this could materially affect the estimate of the allowance for loan losses, the timing of when losses are recognized, and the related provision for credit losses on our consolidated statements of income. We utilize various models to determine an appropriate allowance for loan losses. Changes to model inputs are made as deemed necessary. These models are reviewed and validated periodically. Below we describe in further detail our policies and procedures for the allowance for loan losses as they relate to our Private Education Loan, Personal Loan, FFELP Loan portfolios and Credit Cards. Allowance for Private Education Loan Losses In determining the allowance for loan losses on our Private Education Loans that are not troubled debt restructurings (“TDRs”), we estimate the principal amount of loans that will default over the next year ( one year being the expected period between a loss trigger event and default) using a roll rate model and how much we expect to recover over the same one -year period related to the defaulted amount. The expected defaults less our expected recoveries adjusted for any qualitative factors (discussed below) equal the allowance related to this portfolio. Our historical experience indicates that, on average, the time between the date that a customer experiences a default causing event (i.e., the loss trigger event) and the date that we charge off the unrecoverable portion of that loan is one year. In estimating both the non-TDR and TDR allowance amounts, we start with historical experience of customer delinquency and default behavior. We make judgments about which historical period to start with and then make further judgments about whether that historical experience is representative of future expectations and whether additional adjustments may be needed to those historical default rates. We also take certain other qualitative factors into consideration when calculating the allowance for loan losses. These qualitative factors include, but are not limited to, changes in the economic environment, changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off and recovery practices not already included in the analysis, and the effect of other external factors, such as legal and regulatory requirements, on the level of estimated credit losses. Certain Private Education Loans do not require borrowers to begin repayment until at least six months after they have graduated or otherwise left school. Consequently, the loss estimates for these loans is generally low while the borrower is in school. At December 31, 2019 and 2018 , 25 percent and 26 percent , respectively, of the principal balance in the Private Education Loan portfolio was related to borrowers who are in an in-school (fully deferred), grace, or deferment status and not required to make payments. As this population of borrowers leaves school, they will be required to begin payments on their loans, and the allowance for losses may change accordingly. Similar to the rules governing FFELP payment requirements, our collection policies allow for periods of nonpayment for borrowers requesting additional payment grace periods upon leaving school or experiencing temporary difficulty meeting payment obligations. This is referred to as forbearance status and is considered separately in the allowance for loan losses. The loss emergence period is in alignment with the typical collection cycle and takes into account these periods of nonpayment. As part of concluding on the adequacy of the allowance for loan losses, we review key allowance and loan metrics. The most relevant of these metrics considered are the allowance coverage of net charge-offs ratio; the allowance as a percentage of ending total loans and of ending loans in repayment; and delinquency and forbearance percentages. We consider a loan to be delinquent 31 days after the last payment was contractually due. We use a model to estimate the amount of uncollectible accrued interest on Private Education Loans and reserve for that amount against current period interest income. Our non-TDR allowance for loan losses is estimated using an analysis of delinquent and current accounts. Our roll rate model is used to estimate the likelihood that a loan receivable may progress through the various delinquency stages and ultimately charge off. Once a charge-off forecast is estimated, a recovery assumption is layered on top. In estimating recoveries, we use both estimates of what we would receive from the sale of defaulted loans as well as historical borrower payment behavior to estimate the timing and amount of future recoveries on charged-off loans. The roll rate analysis model is based upon actual experience using the 120 day charge-off default aversion strategies. Once the quantitative calculation is performed, we review the adequacy of the allowance for loan losses and determine if qualitative adjustments need to be considered. We collect on defaulted loans through a mix of in-house, third-party collectors and sales to third-parties. For December 31, 2019, 2018 and 2017, we used both an estimate of recovery rates from in-house collections as well as expectations of future sales of defaulted loans to estimate the timing and amount of future recoveries on charged-off loans. In connection with the Spin-Off, we retained the right to require Navient to purchase certain 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 . Allowance for Personal Loans We maintain an allowance for Personal Loan losses at an amount sufficient to absorb losses estimated and viewed at the reporting date as probable credit losses to be incurred in the portfolio. In determining the allowance for loan losses on our Personal Loan portfolio that are not TDRs, we estimate the principal amount of the loans that will default over the next twelve months (twelve months being the expected period between a loss trigger event and default) and how much we expect to recover over the same twelve-month period related to the defaulted amounts. The expected defaults less our expected recoveries adjusted for any qualitative factors equal the allowance related to this portfolio. At December 31, 2019 and 2018, there were no Personal Loans classified as TDRs. Troubled Debt Restructurings Separately, for our TDR portfolio, we estimate an allowance amount sufficient to cover life-of-loan expected losses through an impairment calculation based on the difference between the loan’s basis and the present value of expected future cash flows (which would include life-of-loan default and recovery assumptions) discounted at the loan’s original effective interest rate. Our TDR portfolio is comprised mostly of loans with interest rate reductions and loans with forbearance usage greater than three months during a 24-month period, as further described below. 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 the loan. These modifications generally take the form of a forbearance, a temporary interest rate reduction or an extended repayment plan. When we give a borrower facing financial difficulty an interest rate reduction, we temporarily reduce the rate (currently to 4.0 percent ) for a two-year period and, in the vast majority of cases, permanently extend the final maturity of the loan. The combination of these two loan term changes helps reduce the monthly payment due from the borrower and increases the likelihood the borrower will remain current during the interest rate modification period as well as when the loan returns to its original contractual interest rate. Until the fourth quarter of 2017, we generally considered a loan that was in full principal and interest repayment status which had received more than three months of forbearance in a 24 -month period to be a TDR; however, during the first nine months after a loan had entered full principal and interest repayment status, we did not count up to the first six months of forbearance received during that period against the three-month policy limit. We now classify a loan as a TDR due to forbearance using a two-step process. The first step is to identify a loan that was in full principal and interest repayment status and received more than three months of forbearance in a 24-month period; however, during the first nine months after a loan had entered full principal and interest repayment status, we do not count up to the first six months of forbearance received during that period against the three-month policy limit. The second step is to evaluate the creditworthiness of the loan by examining its most recent refreshed FICO score. Loans that have met the criteria in the first test and have a FICO score above a certain threshold (based on the most recent quarterly FICO score refresh) will not be classified as TDRs. Loans that have met the criteria in the first test and have a FICO score under the threshold (based on the most recent quarterly FICO score refresh) will be classified as TDRs. A loan also becomes a TDR when it is modified to reduce the interest rate on the loan (regardless of when such modification occurs and/or whether such interest rate reduction is temporary). Once a loan qualifies for TDR status, it remains a TDR for allowance purposes for the remainder of its life. As of December 31, 2019 and 2018 , approximately 50 percent and 57 percent, respectively, of TDRs were classified as such due to their forbearance status. Key Credit Quality Indicators We determine the collectability of our Private Education Loan portfolio by evaluating certain risk characteristics. We consider credit scores at original approval and periodically refreshed/updated credit scores through the loan’s term, existence of a cosigner, loan status and loan seasoning as the key credit quality indicators because they have the most significant effect on the determination of the adequacy of our allowance for loan losses. Credit scores are an indicator of the creditworthiness of borrowers and the higher the credit scores the more likely it is the borrowers will be able to make all of their contractual payments. Loan status affects the credit risk because a past due loan is more likely to result in a credit loss than a current loan. Additionally, loans in the deferred payment status have different credit risk profiles compared with those in current pay status. Loan seasoning affects credit risk because a loan with a history of making payments generally has a lower incidence of default than a loan with a history of making infrequent or no payments. The existence of a cosigner lowers the likelihood of default as well. We monitor and update these credit quality indicators in the analysis of the adequacy of our allowance for loan losses on a quarterly basis. For Personal Loans, we consider FICO scores at original approval, seasoning and loan status to be our key credit quality indicators for the same reasons discussed above. For Credit Cards, we consider FICO scores at original approval to be our key credit quality indicator. Allowance for FFELP Loan Losses FFELP Loans are insured as to their principal and accrued interest in the event of default subject to a risk-sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement on all qualifying default claims. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement. The allowance for FFELP Loan losses uses historical experience of customer default behavior and a two -year loss emergence period to estimate the credit losses incurred in the loan portfolio at the reporting date. We apply the default rate projections, net of applicable risk sharing, to each category for the current period to perform our quantitative calculation. Once the quantitative calculation is performed, we review the adequacy of the allowance for loan losses and determine if qualitative adjustments need to be considered. Allowance for Credit Cards The allowance for Credit Card losses is management’s estimate of credit losses inherent in the Credit Card portfolio at the balance sheet date. The allowance for Credit Card losses uses historical loss rates for accounts with similar characteristics (based on industry data) as a reasonable basis to estimate future losses. At December 31, 2019 , there were no Credit Cards classified as TDRs. Deposits Our retail deposit accounts are principally certificates of deposit (“CDs”), money market deposit accounts (“MMDAs”) and high-yield savings (“HYS”) accounts. CDs are accounts that have a stipulated maturity and interest rate. Retail CDs may be withdrawn early, but a penalty is assessed. MMDA and HYS accounts are both interest and non-interest bearing accounts that have no maturity or expiration date. For retail MMDA and HYS accounts, the depositor may be required to give written notice of any intended withdrawal not less than seven days before the withdrawal is made. The Bank also includes brokered CDs in its funding base. Early withdrawal of brokered CDs is prohibited (except in the case of death or legal incapacity). Other deposit accounts include large interest-bearing omnibus accounts deposited in the Bank by commercial entities having custodial responsibilities for many underlying accounts. These omnibus accounts may be structured with or without fixed maturities, and may have fixed or variable interest rates. Upromise Member Accounts Upromise member accounts represent amounts owed to Upromise rewards members for rebates they have earned from qualifying purchases from Upromise’s participating merchants. These amounts are held in trust for the benefit of the members until distributed in accordance with the Upromise member’s request and/or the terms of the Upromise service agreement. Upromise, which acts as the trustee for the trust, has deposited a majority of the cash with the Bank pursuant to a money market deposit account agreement between the Bank and Upromise as trustee of the trust. Fair Value Measurement We use estimates of fair value in applying various accounting standards for our financial statements. Fair value measurements are used in one of four ways: • In the consolidated balance sheet with changes in fair value recorded in the consolidated statement of income; • In the consolidated balance sheet with changes in fair value recorded in the accumulated other comprehensive income section of the consolidated statement of changes in equity; • In the consolidated balance sheet for instruments carried at lower of cost or fair value with impairment charges recorded in the consolidated statement of income; and • In the notes to the consolidated financial statements. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, our policy in estimating fair value is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates and credit spreads (including for our liabilities), relying first on observable data from active markets. Depending on current market conditions, additional adjustments to fair value may be based on factors such as liquidity, credit, and bid/offer spreads. Transaction costs are not included in the determination of fair value. When possible, we seek to validate the model’s output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. We categorize our fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. Classification is based on the lowest level of input that is significant to the fair value of the instrument. The three levels are as follows: • Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. The types of financial instruments included in level 1 are highly liquid instruments with quoted prices. • Level 2 — Inputs from active markets, other than quoted prices for identical instruments, are used to determine fair value. Significant inputs are directly observable from active markets for substantially the full term of the asset or liability being valued. • Level 3 — Pricing inputs significant to the valuation are unobservable. Inputs are developed based on the best information available. However, significant judgment is required by us in developing the inputs. Loan Interest Income For all loans, including impaired loans, classified as held for investment, we recognize interest income as earned, adjusted for the amortization of deferred direct origination and acquisition costs. This adjustment is recognized based upon the expected yield of the loan over its life after giving effect to prepayments and extensions. We consider our constant prepayment rate (“CPR”) estimates a significant accounting assumption used to measure the expected prepayment activity in our education loan portfolio. The estimates are based on a number of factors such as historical prepayment rates for loans with similar loan characteristics, assumptions about portfolio composition and loan terms, and the prepayment curve’s tendency to follow a ramp pattern (i.e., the prepayment rate typically increases during the in-school and early repayment periods, then stabilizes). The CPR measures the expected prepayment activity over the life of the loan and is applied as a flat-rate input assumption when used in forecasting. Additionally, interest earned on education loans reflects potential non-payment adjustments in accordance with our uncollectible interest recognition policy as discussed further in “Allowance for Loan Losses” of this Note 2. Because of this, we do not place loans in nonaccrual status prior to charge-off. We do not amortize any adjustments to the basis of education loans when they are classified as held-for-sale. Our CPR estimates include the effect of voluntary prepayments and consolidation (if the loans are consolidated to third parties), both of which shorten the lives of loans. CPR estimates also consider the utilization of deferment, forbearance, and extended repayment plans, which lengthen the lives of loans. We regularly evaluate the assumptions used to estimate the CPRs. In instances where there are changes to the assumptions, amortization of deferred direct origination and acquisition costs is adjusted on a cumulative basis to reflect the change since the origination or purchase of the loan. For the year ended December 31, 2019 , our CPR for Private Education Loans was 6.92 percent , compared with a CPR of 6.83 percent for the year ended December 31, 2018. We also pay to the U.S. Department of Education (the “DOE”) an annual 105 basis point Consolidation Loan Rebate Fee on FFELP consolidation loans, which is netted against loan interest income. Additionally, interest earned on education loans reflects potential non-payment adjustments in accordance with our uncollectible interest recognition policy. We do not amortize any adjustments to the basis of loans when they are classified as held-for-sale. We recognize certain fee income (primarily late fees) on education loans when earned according to the contractual provisions of the promissory notes, as well as our expectation of collectability. Fee income is recorded when earned in “other non-interest income” in the accompanying consolidated statements of income. Interest Expense Interest expense is based upon contractual interest rates adjusted for the amortization of issuance costs. We incur interest expense on interest bearing deposits comprised of non-maturity savings deposits, brokered and retail CDs, and brokered and retail MMDAs, as well as on unsecured and secured financings. Interest expense is recognized when amounts are contractually due to deposit and debt holders and is adjusted for net payments/receipts related to interest rate swap agreements that qualify and are designated hedges of interest bearing liabilities. Interest expense also includes the amortization of deferred gains and losses on closed hedge transactions that qualified as hedges. Amortization of debt issuance costs, premiums, discounts and terminated hedge-basis adjustments are recognized using the effective interest rate method. We incur certain fees related to our Private Education Loan multi-lender secured borrowing facility (the “Secured Borrowing Facility,” which was previously called the asset-backed commercial paper facility or ABCP Facility), including an unused Secured Borrowing Facility fee, and also incur fees related to our term asset-backed securities (“ABS”). These fees are included in interest expense. Refer to Note 8, “Deposits,” and Note 9, “Borrowings” for further details of our interest bearing liabilities. Gains on Sale of Loans, Net We may participate and sell loans to third-parties and affiliates, including entities that were related parties prior to the Spin-Off. These sales may occur through whole loan sales or securitization transactions that qualify for sales treatment. If a transfer of loans qualifies as a sale, we derecognize the loan and recognize a gain or loss as the difference between the carry basis of the loan sold and liabilities retained and the compensation received. We recognize the results of a transfer of loans based upon the settlement date of the transaction. These loans were initially recorded as held for investment and were transferred to held-for-sale immediately prior to sale or securitization. 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 . See Note 15, “Arrangements with Navient Corporation,” for further discussion regarding loan purchase agreements. We did not sell loans in 2019 and 2017, other than Split Loans. Other Income Our Upromise subsidiary has a number of programs that encourage consumers to save for the cost of college education. We have established a consumer savings network, which is designed to promote college savings by consumers who are members of this program by encouraging them to purchase goods and services from the merchants that participate in the program. Participating merchants generally pay Upromise fees based on member purchase volume, either online or in stores, depending on the contractual arrangement with the merchant. We recognize revenue as marketing and administrative services are rendered, based upon contractually determined rates and member purchase volumes. In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The guidance in this ASU supersedes existing revenue recognition requirements in Topic 605, Revenue Recognition, including an assortment of transaction-specific and industry-specific rules. We adopted the new revenue recognition model on January 1, 2018. This ASU establishes a principles-based model under which revenue from a contract is allocated to the distinct performance obligations within the contract and recognized in income as each performance obligation is satisfied. ASU Topic 606 does not apply to rights or obligations associated with financial instruments (for example, interest income from loans or investments, or interest expense on debt), and therefore our net interest income should not be affected. Certain of our fee income related to our Upromise rewards business is within the scope of these rules. Management has concluded that timing and measurement of fee income related to our Upromise rewards business has remained substantially unchanged under the new standard. This conclusion covers the vast majority of our revenue that is within the scope of the standard. The adoption of this standard did not materially affect our consolidated financial statements in 2018. In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” The guidance in this ASU provides clarification on the principal versus agent concept in relation to revenue recognition guidance issued as part of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” Topic 606 requires a company to determine whether it is a principal or an agent in a transaction in which another party is involved in providing goods or services to a customer by evaluating the nature of its promise to the customer. ASU No. 2016-08 provides clarification for identifying the good, service or right being transferred in a revenue transaction and identifies the |
Cash and Cash Equivalents
Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents | Cash and Cash Equivalents As of December 31, 2019 , cash and cash equivalents include cash due from the FRB of $ 5.5 billion and cash due from depository institutions of $93 million. As of December 31, 2018 , cash and cash equivalents include cash due from the FRB of $2.5 billion and cash due from depository institutions of $ 62 million. As of December 31, 2019 and 2018 , we had no outstanding cash equivalents. The FRB Term Deposit Facility program is used to facilitate the conduct of monetary policy by providing a tool that may be used to manage the aggregate quantity of reserve balances held by depository institutions. Under this program, the FRB accepts deposits for a stated maturity at a rate of interest determined via auction. The funds are removed from the accounts of participating institutions for the life of the term deposit. We participated in these auctions in 2019 and 2018 , resulting in interest income of $0.3 million and $0.2 million, respectively. As of December 31, 2019 and 2018 , no funds were on deposit with the FRB under this program. |
Investments
Investments | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments The amortized cost and fair value of securities available for sale are as follows: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Mortgage-backed securities $ 215,888 $ 1,895 $ (658 ) $ 217,125 Utah Housing Corporation bonds 19,474 145 (83 ) 19,536 U.S. government-sponsored enterprises 250,394 635 (21 ) 251,008 Total $ 485,756 $ 2,675 $ (762 ) $ 487,669 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Mortgage-backed securities $ 159,937 $ 155 $ (5,517 ) $ 154,575 Utah Housing Corporation bonds 22,388 23 (741 ) 21,670 Total $ 182,325 $ 178 $ (6,258 ) $ 176,245 The following table summarizes the amount of gross unrealized losses for our available-for-sale securities and the estimated fair value for securities having gross unrealized loss positions, 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 December 31, 2019: Mortgage-backed securities $ (218 ) $ 25,624 $ (440 ) $ 42,448 $ (658 ) $ 68,072 Utah Housing Corporation bonds — — (83 ) 11,097 (83 ) 11,097 U.S. government-sponsored enterprises (21 ) 14,977 — — (21 ) 14,977 Total $ (239 ) $ 40,601 $ (523 ) $ 53,545 $ (762 ) $ 94,146 As of December 31, 2018: Mortgage-backed securities $ (228 ) $ 16,948 $ (5,289 ) $ 125,537 $ (5,517 ) $ 142,485 Utah Housing Corporation bonds — — (741 ) 16,647 (741 ) 16,647 Total $ (228 ) $ 16,948 $ (6,030 ) $ 142,184 $ (6,258 ) $ 159,132 Our investment portfolio is comprised primarily of mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, with amortized costs of $54 million, $ 106 million, and $ 56 million, respectively, at December 31, 2019 . 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 December 31, 2019 , 33 of the 107 separate mortgage-backed securities in our investment portfolio had unrealized losses, and 18 of the 33 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 intent and ability to hold these bonds for a period of time sufficient for the market price to recover to at least the adjusted amortized cost of the security. As of December 31, 2018 , 74 of the 86 separate mortgage-backed securities in our investment portfolio had unrealized losses, and 34 of the 74 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 December 31, 2019 and December 31, 2018 was $19 million and $22 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. Beginning in the second quarter of 2019, we began investing in U.S. government-sponsored enterprise securities issued by the Federal Home Loan Bank (“FHLB”), Freddie Mac and the Federal Farm Credit Bank (“FFCB”). These bonds are rated AA+ by Moody’s Investors Services. As of December 31, 2019, 1 of the 14 securities had unrealized losses. As of December 31, 2019 , 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 2020 $ 77,240 $ 77,385 2021 138,157 138,640 2022 34,997 34,983 2038 176 191 2039 2,597 2,778 2042 7,196 7,050 2043 11,661 11,813 2044 17,300 17,487 2045 18,280 18,332 2046 28,892 28,822 2047 45,411 45,353 2048 12,154 12,478 2049 91,695 92,357 Total $ 485,756 $ 487,669 The mortgage-backed securities have been pledged to the FRB as collateral against any advances and accrued interest under the Primary Credit lending program sponsored by the FRB. We had $252 million and $ 147 million par value of securities pledged to this borrowing facility at December 31, 2019 and 2018 , respectively, as discussed further in Note 9, “Borrowings.” Other Investments Investments in Non-Marketable Securities We hold investments in non-marketable securities and account for these investments at cost, less impairment, plus or minus observable price changes of identical or similar securities of the same issuer. In the third quarter of 2019, we funded an additional investment, as part of a larger equity raise, in an issuer whose equity securities we purchased in the past. We used the valuation associated with the more recent securities investment to adjust the valuation of our previous investments and, as a result, recorded a gain of $ 8 million on our earlier equity securities investments. This gain was recorded in “other income” in the consolidated statements of income. As of December 31, 2019 and December 31, 2018, our total investment in the securities of this issuer was $26 million and $ 8 million , respectively. Low Income Housing Tax Credit Investments We invest in affordable housing projects that qualify for the LIHTC, which is designed to promote private development of low income housing. We recognized $6 million , $4 million and $1 million of tax credits and other tax benefits associated with investments in affordable housing projects within income tax expense for the years ended December 31, 2019, 2018 and 2017, respectively. The amount of amortization of such investments reported in income tax expense was $4 million , $4 million and $1 million for the years ended December 31, 2019, 2018 and 2017, respectively. Total carrying value of the LIHTC investments was $58 million at December 31, 2019 and $48 million at December 31, 2018. We are periodically required to provide additional financial support during the investment period. Our liability for these unfunded commitments was $29 million at December 31, 2019 and $ 37 million at December 31, 2018. |
Loans Held for Investment
Loans Held for Investment | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans Held for Investment | Loans Held for Investment Loans Held for Investment consist of Private Education Loans, FFELP Loans, Personal Loans and Credit Cards. 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, the London interbank offered rate. As of December 31, 2019 and 2018, 58 percent and 67 percent , respectively, 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 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. 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 . See Note 15, “Arrangements with Navient Corporation,” for further discussion regarding loan purchase agreements. 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. In 2016, we began to acquire Personal Loans from a marketplace lender, but discontinued those purchases in July 2018. In 2018, we began to originate and service Personal Loans. However, in the fourth quarter of 2019, we elected to discontinue new originations as part of our 2020 planning process. In the second quarter of 2019, we launched our suite of cash-back Credit Cards with unique bonus rewards designed to help cardholders develop financially responsible habits. Loans held for investment are summarized as follows: December 31, 2019 2018 Private Education Loans: Fixed-rate $ 9,830,301 $ 6,759,019 Variable-rate 13,359,290 13,745,446 Total Private Education Loans, gross 23,189,591 20,504,465 Deferred origination costs and unamortized premium/ (discount) 81,224 68,321 Allowance for loan losses (374,300 ) (277,943 ) Total Private Education Loans, net 22,896,515 20,294,843 FFELP Loans 783,306 846,487 Deferred origination costs and unamortized premium/ (discount) 2,143 2,379 Allowance for loan losses (1,633 ) (977 ) Total FFELP Loans, net 783,816 847,889 Personal Loans (fixed-rate) 1,049,007 1,190,091 Deferred origination costs and unamortized premium/ (discount) 513 297 Allowance for loan losses (65,877 ) (62,201 ) Total Personal Loans, net 983,643 1,128,187 Credit Cards (fixed-rate) 3,884 — Deferred origination costs and unamortized premium/ (discount) 36 — Allowance for loan losses (102 ) — Total Credit Cards, net 3,818 — Loans held for investment, net $ 24,667,792 $ 22,270,919 The estimated weighted average life of education loans in our portfolio was approximately 5.4 years at both December 31, 2019 and 2018 , respectively. The average balance and the respective weighted average interest rates of loans in our portfolio are summarized as follows: Years Ended December 31, 2019 2018 2017 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 22,225,473 9.32 % $ 19,282,500 9.10 % $ 16,176,351 8.43 % FFELP Loans 814,198 4.79 888,301 4.57 970,738 3.91 Personal Loans 1,141,503 12.09 900,152 11.08 112,644 9.90 Total portfolio $ 24,181,174 $ 21,070,953 $ 17,259,733 Certain Collection Tools — Private Education Loans We adjust the terms of loans for certain borrowers when we believe such changes will help our customers manage their student loan obligations, achieve better student outcomes, and increase the collectability of the loan. These changes generally take the form of a temporary forbearance of payments, a temporary interest rate reduction, a temporary interest rate reduction with a permanent extension of the loan term, and/or a short-term extended repayment alternative. Forbearance is granted prospectively for borrowers who are current in their payments and may be granted retroactively for certain delinquent borrowers. Forbearance allows a borrower to temporarily not make scheduled payments or to make smaller than scheduled payments, in each case for a specified period of time. Using forbearance extends the original term of the loan by the term of forbearance taken. Forbearance does not grant any reduction in the total principal or interest repayment obligation. While a loan is in forbearance status, interest continues to accrue and is capitalized to principal when the loan re-enters repayment status. We grant forbearance through our servicing centers to borrowers who are current in their payments and through our collections centers to certain borrowers who are delinquent. Our forbearance policies and practices vary depending upon whether a borrower is current or delinquent at the time forbearance is requested, generally with stricter payment requirements for delinquent borrowers. We view the population of borrowers that use forbearance positively because the borrowers are either proactively reaching out to the Company to obtain assistance in managing their obligations or are working with our collections center to bring their loans current. Forbearance may be granted through our servicing centers to customers who are exiting their grace period, which generally is the six-month period after the borrower separates from school and during which the borrower is not required to make full principal and interest payments, and to other customers who are current in their payments, to provide temporary payment relief. In these circumstances, a customer’s loan is placed into a forbearance status in limited monthly increments and is reflected in the forbearance status at month-end during this time. At the end of the forbearance period, the customer will enter repayment status as current and is expected to begin making scheduled monthly payments. Currently, we generally grant forbearance in our servicing centers if a borrower who is current requests it for increments of up to three months at a time, for up to 12 months. Forbearance may also be granted through our collections centers to customers who are delinquent in their payments. If specific payment requirements are met, the forbearance can cure the delinquency and the customer is returned to a current repayment status. Forbearance as a collection tool is used most effectively when applying historical experience and our judgment to a customer’s unique situation. We leverage updated customer information and other decision support tools to best determine who will be granted forbearance based on our expectations as to a customer’s ability and willingness to repay their obligation. This strategy is aimed at assisting customers while mitigating the risks of delinquency and default as well as encouraging resolution of delinquent loans. In all instances, we require one or more payments before granting forbearance to delinquent borrowers. Management continually monitors our credit administration practices and may periodically modify these practices based upon performance, industry conventions, and/or regulatory feedback. In light of these considerations, we plan to implement certain changes to our credit administration practices. Specifically, we plan to revise our credit administration practices limiting the number of forbearance months granted consecutively and the number of times certain extended or reduced repayment alternatives may be granted. For example, we currently grant forbearance to borrowers without requiring any period of prior principal and interest payments, meaning that, if a borrower satisfies all eligibility requirements, forbearance increments may be granted consecutively. Beginning in the second quarter of 2020, we plan to phase in a required six-month period between successive grants of forbearance and between forbearance grants and certain other repayment alternatives. This required period will not apply, however, to forbearances granted during the first six months following a borrower’s grace period and will not be required for a borrower to receive a contractual interest rate reduction. In addition, we plan to limit the participation of delinquent borrowers in certain short-term extended or interest-only repayment alternatives to once in 12 months and twice in five years. We also offer rate and term modifications to customers experiencing more severe hardship. Currently, we temporarily reduce the contractual interest rate on a loan to 4.0 percent (previously, to 2.0 percent ) for a two-year period and, in the vast majority of cases, permanently extend the final maturity date of the loan. As part of demonstrating the ability and willingness to pay, the customer must make three consecutive monthly payments at the reduced payment to qualify for the program. The combination of the rate reduction and maturity extension helps reduce the monthly payment due from the borrower and increases the likelihood the borrower will remain current during the interest rate modification period as well as when the loan returns to its original contractual interest rate. At December 31, 2019 and December 31, 2018, 7.2 percent and 6.4 percent , respectively, of our loans then currently in full principal and interest repayment status were subject to interest rate reductions made under our rate modification program. We currently have no plans to change the basic elements of the rate and term modifications we offer to our customers experiencing more severe hardship. Prior to full implementation of the credit administration practice changes described above, management will conduct a controlled testing program on randomly selected borrowers to measure the impact of the changes on our customers, our credit operations, and key credit metrics. The testing commenced in October 2019 for some of the planned changes on a very small percentage of our total portfolio and will expand over subsequent quarters as the impacts are better understood. Management expects to have completed implementation of the new policies and practices by year-end 2020. However, we may modify or delay the contemplated practice changes, the proposed timeline, or the method of implementation as we learn more about the impacts during the progression of the testing program. While there are limitations to our estimate of the future impact of the credit administration practice changes described above, absent the effect of any mitigating measures, and based on an analysis of borrower behavior under our current credit administration practices, which may not be indicative of how borrowers will behave under revised credit administration practices, we expect that the credit administration practice changes described above will accelerate defaults and could increase life of loan defaults in our Private Education Loan portfolio by approximately 4 percent to 14 percent . Among the measures that we are planning to implement and expect may partly offset or moderate any acceleration of or increase in defaults will be greater focus on the risk assessment process to ensure borrowers are mapped to the appropriate program, better utilization of existing programs (e.g., Graduated Repayment Program and rate modifications), and the introduction of a new program offering short-term payment reductions (permitting interest-only payments for up to six months) for certain early stage delinquencies. As a result of the changes described above, we recorded a minimal increase in our current allowance for loan losses at December 31, 2019, as a result of higher expected losses on our TDR loans where we maintain a life of loan allowance. The full impact of these revisions may only be realized over the longer term, however. In particular, when calculated under CECL, which became effective on January 1, 2020, our loan loss reserves are expected to increase materially because we expect the life of loan defaults on our overall Private Education Loan portfolio to increase as a result of the planned changes to our credit administrative practices. As we progress with the controlled testing program of the planned changes to our credit administration practices, we expect to learn more about how our borrowers are reacting to these changes and, as we analyze such reactions, will continue to refine our estimates of the impact of those changes on our allowance for loan losses. The period of delinquency for loans is based on the number of days scheduled payments are contractually past due. As of December 31, 2019 and 2018 , we had $48 million and $43 million, respectively, of FFELP Loans and $63 million and $51 million, respectively, of Private Education Loans held for investment which were more than 90 days delinquent that continue to accrue interest. At December 31, 2019 and 2018 , we had no loans in nonaccrual status. Borrower-in-Custody Arrangements We maintain Borrower-in-Custody arrangements with the FRB. Under these arrangements, we can pledge FFELP Loans or Private Education Loans to the FRB to secure any advances and accrued interest generated under the Primary Credit program at the FRB. As of December 31, 2019 and 2018 , we had $3.4 billion and $3.4 billion, respectively, of Private Education Loans pledged to this borrowing facility, as discussed further in Note 9, “Borrowings.” We did not have any FFELP consolidation loans pledged at December 31, 2019 or 2018. Loans Held for Investment by Region At December 31, 2019 , 39.4 percent of total education loans were concentrated in the following states: 2019 New York 10.1 % California 9.4 Pennsylvania 8.4 New Jersey 6.6 Texas 4.9 39.4 % At December 31, 2018 , 39.9 percent of total education loans were concentrated in the following states: 2018 New York 10.3 % California 9.3 Pennsylvania 8.5 New Jersey 6.8 Illinois 5.0 39.9 % No other state had a concentration of total education loans in excess of 5 percent of the aggregate outstanding education loans held for investment. |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses Our provision for credit losses represents the periodic expense of maintaining an allowance sufficient to absorb incurred probable losses in the held-for-investment loan portfolios. The evaluation of the allowance for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. We believe the allowance for loan losses is appropriate to cover probable losses incurred in the loan portfolios. See Note 2, “Significant Accounting Policies — Allowance for Loan Losses — Allowance for Private Education Loan Losses, — Allowance for Personal Loans, — Allowance for FFELP Loan Losses, and — Allowance for Credit Cards” for a more detailed discussion. Allowance for Loan Losses Metrics Allowance for Loan Losses Year Ended December 31, 2019 FFELP Loans Private Education Loans Personal Loans Credit Cards Total Allowance for Loan Losses Beginning balance $ 977 $ 277,943 $ 62,201 $ — $ 341,121 Total provision 1,478 279,570 72,783 103 353,934 Net charge-offs: Charge-offs (822 ) (208,978 ) (74,313 ) (1 ) (284,114 ) Recoveries — 25,765 5,206 — 30,971 Net charge-offs (822 ) (183,213 ) (69,107 ) (1 ) (253,143 ) Ending Balance $ 1,633 $ 374,300 $ 65,877 $ 102 $ 441,912 Allowance: Ending balance: individually evaluated for impairment $ — $ 186,697 $ — $ — $ 186,697 Ending balance: collectively evaluated for impairment $ 1,633 $ 187,603 $ 65,877 $ 102 $ 255,215 Loans: Ending balance: individually evaluated for impairment $ — $ 1,581,966 $ — $ — $ 1,581,966 Ending balance: collectively evaluated for impairment $ 783,306 $ 21,607,625 $ 1,049,007 $ 3,884 $ 23,443,822 Net charge-offs as a percentage of average loans in repayment (1) 0.13 % 1.17 % 6.07 % 0.13 % Allowance as a percentage of the ending total loan balance 0.21 % 1.61 % 6.28 % 2.63 % Allowance as a percentage of the ending loans in repayment (1) 0.26 % 2.23 % 6.28 % 2.63 % Allowance coverage of net charge-offs 1.99 2.04 0.95 102.00 Ending total loans, gross $ 783,306 $ 23,189,591 $ 1,049,007 $ 3,884 Average loans in repayment (1) $ 631,029 $ 15,605,927 $ 1,138,887 $ 786 Ending loans in repayment (1) $ 617,646 $ 16,787,670 $ 1,049,007 $ 3,884 ____________ (1) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Allowance for Loan Losses Year Ended December 31, 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 980 169,287 74,317 244,584 Net charge-offs: Charge-offs (1,135 ) (154,701 ) (19,690 ) (175,526 ) Recoveries — 20,858 946 21,804 Net charge-offs (1,135 ) (133,843 ) (18,744 ) (153,722 ) Loan sales (1) — (1,216 ) — (1,216 ) Ending Balance $ 977 $ 277,943 $ 62,201 $ 341,121 Allowance: Ending balance: individually evaluated for impairment $ — $ 120,110 $ — $ 120,110 Ending balance: collectively evaluated for impairment $ 977 $ 157,833 $ 62,201 $ 221,011 Loans: Ending balance: individually evaluated for impairment $ — $ 1,257,856 $ — $ 1,257,856 Ending balance: collectively evaluated for impairment $ 846,487 $ 19,246,609 $ 1,190,091 $ 21,283,187 Net charge-offs as a percentage of average loans in repayment (2) 0.16 % 1.01 % 2.11 % Allowance as a percentage of the ending total loan balance 0.12 % 1.36 % 5.23 % Allowance as a percentage of the ending loans in repayment (2) 0.15 % 1.90 % 5.23 % Allowance coverage of net charge-offs 0.86 2.08 3.32 Ending total loans, gross $ 846,487 $ 20,504,465 $ 1,190,091 Average loans in repayment (2) $ 691,406 $ 13,303,801 $ 889,348 Ending loans in repayment (2) $ 665,807 $ 14,666,856 $ 1,190,091 ____________ (1) Represents fair value adjustments on loans sold. (2) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Allowance for Loan Losses Year Ended December 31, 2017 FFELP Loans Private Education Loans Personal Loans Total Allowance for Loan Losses Beginning balance $ 2,171 $ 182,472 $ 58 $ 184,701 Total provision (85 ) 178,542 7,138 185,595 Net charge-offs: Charge-offs (954 ) (130,063 ) (579 ) (131,596 ) Recoveries — 17,635 11 17,646 Net charge-offs (954 ) (112,428 ) (568 ) (113,950 ) Loan sales (1) — (4,871 ) — (4,871 ) Ending Balance $ 1,132 $ 243,715 $ 6,628 $ 251,475 Allowance: Ending balance: individually evaluated for impairment $ — $ 94,682 $ — $ 94,682 Ending balance: collectively evaluated for impairment $ 1,132 $ 149,033 $ 6,628 $ 156,793 Loans: Ending balance: individually evaluated for impairment $ — $ 990,351 $ — $ 990,351 Ending balance: collectively evaluated for impairment $ 927,660 $ 16,441,816 $ 400,280 $ 17,769,756 Net charge-offs as a percentage of average loans in repayment (2) 0.13 % 1.03 % 0.47 % Allowance as a percentage of the ending total loan balance 0.12 % 1.40 % 1.66 % Allowance as a percentage of the ending loans in repayment (2) 0.15 % 2.00 % 1.66 % Allowance coverage of net charge-offs 1.19 2.17 11.67 Ending total loans, gross $ 927,660 $ 17,432,167 $ 400,280 Average loans in repayment (2) $ 745,039 $ 10,881,058 $ 119,606 Ending loans in repayment (2) $ 746,456 $ 12,206,033 $ 400,280 ____________ (1) Represents fair value adjustments on loans sold. (2) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Troubled Debt Restructurings All of our loans are collectively assessed for impairment, except for loans classified as TDRs (where we conduct individual assessments of impairment). We adjust the terms of loans for certain borrowers when we believe such changes will help our customers manage their student loan obligations, achieve better student outcomes, and increase the collectability of the loan. These changes generally take the form of a temporary forbearance of payments, a temporary interest rate reduction, a temporary interest rate reduction with a permanent extension of the loan term, and/or a short-term extended repayment alternative. When we give a borrower facing financial difficulty an interest rate reduction, we temporarily reduce the contractual interest rate on a loan to 4.0 percent (previously, to 2.0 percent ) for a two-year period and, in the vast majority of cases, permanently extend the final maturity date of the loan. The combination of these two loan term changes helps reduce the monthly payment due from the borrower and increases the likelihood the borrower will remain current during the interest rate modification period as well as when the loan returns to its original contractual interest rate. At December 31, 2019 and 2018, 7.2 percent and 6.4 percent , respectively, of our loans then currently in full principal and interest repayment status were subject to interest rate reductions made under our rate modification program. Once a loan qualifies for TDR status, it remains a TDR for allowance purposes for the remainder of its life. As of December 31, 2019 and 2018, approximately 50 percent and 57 percent , respectively, of TDRs were classified as such due to their forbearance status. See Note 2, “Significant Accounting Policies — Allowance for Loan Losses” for a more detailed discussion. Within the Private Education Loan portfolio, loans greater than 90 days past due are nonperforming. FFELP Loans are at least 97 percent guaranteed as to their principal and accrued interest by the federal government in the event of default and, therefore, we do not deem FFELP Loans as nonperforming from a credit risk standpoint at any point in their life cycle prior to claim payment and continue to accrue interest on those loans through the date of claim. At December 31, 2019 and 2018 , all of our TDR loans had a related allowance recorded. The following table provides the recorded investment, unpaid principal balance and related allowance for our TDR loans. Recorded Investment Unpaid Principal Balance Allowance December 31, 2019 TDR Loans $ 1,612,896 $ 1,581,966 $ 186,697 December 31, 2018 TDR Loans $ 1,280,713 $ 1,257,856 $ 120,110 The following table provides the average recorded investment and interest income recognized for our TDR loans. Years Ended December 31, 2019 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 1,434,137 $ 95,507 $ 1,141,993 $ 77,670 $ 822,145 $ 61,119 The following table provides information regarding the loan status and aging of TDR loans. December 31, December 31, 2019 2018 Balance % Balance % TDR loans in in-school/grace/deferment (1) $ 87,749 $ 69,212 TDR loans in forbearance (2) 99,054 69,796 TDR loans in repayment (3) and percentage of each status: Loans current 1,230,954 88.2 % 994,411 88.9 % Loans delinquent 31-60 days (4) 85,555 6.1 63,074 5.6 Loans delinquent 61-90 days (4) 49,626 3.6 36,804 3.3 Loans delinquent greater than 90 days (4) 29,028 2.1 24,559 2.2 Total TDR loans in repayment 1,395,163 100.0 % 1,118,848 100.0 % Total TDR loans, gross $ 1,581,966 $ 1,257,856 _____ (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. (4) The period of delinquency is based on the number of days scheduled payments are contractually past due. The following table provides the amount of modified loans (which includes forbearance and reductions in interest rates) that became TDRs in the periods presented. Additionally, for the periods presented, the table summarizes charge-offs occurring in the TDR portfolio, as well as TDRs for which a payment default occurred in the relevant period presented and within 12 months of the loan first being designated as a TDR. We define payment default as 60 days past due for this disclosure. Years Ended December 31, 2019 2018 2017 Modified Loans (1) Charge-offs Payment-Default Modified Loans (1) Charge-offs Payment-Default Modified Loans (1) Charge-offs Payment-Default TDR Loans $ 515,398 $ 74,137 $ 111,810 $ 394,639 $ 52,823 $ 90,231 $ 498,812 $ 48,469 $ 92,532 _______ (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. December 31, 2019 December 31, 2018 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance Cosigners: With cosigner $ 20,709,636 89 % $ 18,378,398 90 % Without cosigner 2,479,955 11 2,126,067 10 Total $ 23,189,591 100 % $ 20,504,465 100 % FICO at Original Approval (2) : Less than 670 $ 1,665,589 7 % $ 1,409,789 7 % 670-699 3,570,025 16 3,106,983 15 700-749 7,670,748 33 6,759,721 33 Greater than or equal to 750 10,283,229 44 9,227,972 45 Total $ 23,189,591 100 % $ 20,504,465 100 % FICO-Refreshed (2)(3) : Less than 670 $ 2,979,437 13 % $ 2,416,979 12 % 670-699 2,883,122 13 2,504,467 12 700-749 6,806,602 29 6,144,489 30 Greater than or equal to 750 10,520,430 45 9,438,530 46 Total $ 23,189,591 100 % $ 20,504,465 100 % Seasoning (4) : 1-12 payments $ 5,351,702 23 % $ 4,969,334 24 % 13-24 payments 4,004,151 17 3,481,235 17 25-36 payments 2,902,365 12 2,741,954 13 37-48 payments 2,213,944 10 1,990,049 10 More than 48 payments 3,030,024 13 2,061,448 10 Not yet in repayment 5,687,405 25 5,260,445 26 Total $ 23,189,591 100 % $ 20,504,465 100 % _____ (1) Balance represents gross Private Education Loans. (2) Represents the higher credit score of the cosigner or the borrower. (3) Represents the FICO score updated as of the fourth-quarter 2019. (4) Number of months in active repayment (whether interest-only payment, fixed payment, or full principal and interest repayment status) for which a scheduled payment was due. Personal Loan Key Credit Quality Indicators For Personal Loans, the key credit quality indicators are FICO scores, loan seasoning, and loan delinquency 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 December 31, 2019 December 31, 2018 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance FICO at Original Approval: Less than 670 $ 47,367 4 % $ 77,702 7 % 670-699 259,098 25 339,053 28 700-749 521,856 50 554,700 47 Greater than or equal to 750 220,686 21 218,636 18 Total $ 1,049,007 100 % $ 1,190,091 100 % Seasoning (2) : 0-12 payments $ 469,940 45 % $ 1,008,758 85 % 13-24 payments 505,318 48 181,333 15 25-36 payments 73,749 7 — — 37-48 payments — — — — More than 48 payments — — — — Total $ 1,049,007 100 % $ 1,190,091 100 % ___________ (1) Balance represents gross Personal Loans. (2) Number of months in active repayment for which a scheduled payment was due. Private Education Loan Delinquencies The following table provides information regarding the loan status of our Private Education Loans. Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Private Education Loans December 31, 2019 2018 2017 Balance % Balance % Balance % Loans in-school/grace/deferment (1) $ 5,687,405 $ 5,260,445 $ 4,757,732 Loans in forbearance (2) 714,516 577,164 468,402 Loans in repayment and percentage of each status: Loans current 16,315,651 97.2 % 14,289,705 97.4 % 11,911,128 97.6 % Loans delinquent 31-60 days (3) 288,051 1.7 231,216 1.6 179,002 1.5 Loans delinquent 61-90 days (3) 121,302 0.7 95,105 0.7 78,292 0.6 Loans delinquent greater than 90 days (3) 62,666 0.4 50,830 0.3 37,611 0.3 Total Private Education Loans in repayment 16,787,670 100.0 % 14,666,856 100.0 % 12,206,033 100.0 % Total Private Education Loans, gross 23,189,591 20,504,465 17,432,167 Private Education Loans deferred origination costs and unamortized premium/(discount) 81,224 68,321 56,378 Total Private Education Loans 23,270,815 20,572,786 17,488,545 Private Education Loans allowance for losses (374,300 ) (277,943 ) (243,715 ) Private Education Loans, net $ 22,896,515 $ 20,294,843 $ 17,244,830 Percentage of Private Education Loans in repayment 72.4 % 71.5 % 70.0 % Delinquencies as a percentage of Private Education Loans in repayment 2.8 % 2.6 % 2.4 % Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance 4.1 % 3.8 % 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 Delinquencies The following table provides information regarding the loan status of our Personal Loans. Personal Loans December 31, 2019 2018 Balance % Balance % Loans in repayment and percentage of each status: Loans current $ 1,023,517 97.6 % $ 1,172,776 98.5 % Loans delinquent 31-60 days (1) 9,435 0.9 6,722 0.6 Loans delinquent 61-90 days (1) 7,172 0.7 5,416 0.5 Loans delinquent greater than 90 days (1) 8,883 0.8 5,177 0.4 Total Personal Loans in repayment 1,049,007 100.0 % 1,190,091 100.0 % Total Personal Loans, gross 1,049,007 1,190,091 Personal Loans deferred origination costs and unamortized premium/(discount) 513 297 Total Personal Loans 1,049,520 1,190,388 Personal Loans allowance for losses (65,877 ) (62,201 ) Personal Loans, net $ 983,643 $ 1,128,187 Delinquencies as a percentage of Personal Loans in repayment 2.4 % 1.5 % _______ (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 majority of the total accrued interest receivable represents accrued interest on deferred loans where no payments are due while the borrower is in school and fixed-pay loans where the borrower makes a $25 monthly payment that is smaller than the interest accruing on the loan in that month. The accrued interest on these loans will be capitalized to the balance of the loans when the borrower exits the grace period upon separation from school. The allowance for uncollectible interest exceeds the amount of accrued interest on our 90 days past due portfolio for all periods presented. Private Education Loans Accrued Interest Receivable Total Interest Receivable Greater Than 90 Days Past Due Allowance for Uncollectible Interest December 31, 2019 $ 1,366,158 $ 2,390 $ 5,309 December 31, 2018 $ 1,168,823 $ 1,920 $ 6,322 |
Premises and Equipment, Net
Premises and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment, net | Premises and Equipment, net The following is a summary of our premises and equipment. December 31, 2019 2018 Land and land improvements $ 12,356 $ 12,356 Buildings and leasehold improvements 105,986 71,919 Furniture, fixtures and equipment 25,694 20,794 Software 70,191 65,023 Premises and equipment, gross 214,227 170,092 Accumulated depreciation (79,478 ) (64,588 ) Premises and equipment, net $ 134,749 $ 105,504 Depreciation expense for premises and equipment was $15 million, $14 million and $11 million for the years ended December 31, 2019 , 2018 and 2017 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | Deposits The following table summarizes total deposits at December 31, 2019 and 2018 . December 31, 2019 2018 Deposits - interest bearing $ 24,282,906 $ 18,942,082 Deposits - non-interest bearing 1,077 1,076 Total deposits $ 24,283,983 $ 18,943,158 Our total deposits of $24.3 billion were comprised of $13.8 billion in brokered deposits and $10.5 billion in retail and other deposits at December 31, 2019 , compared with total deposits of $18.9 billion , which were comprised of $10.3 billion in brokered deposits and $8.6 billion in retail and other deposits, at December 31, 2018 . Interest bearing deposits as of December 31, 2019 and 2018 consisted of retail and brokered non-maturity savings deposits, retail and brokered non-maturity MMDAs and retail and brokered CDs. Interest bearing deposits include deposits from Educational 529 and Health Savings plans that diversify our funding sources and add deposits we consider to be core. These and other large omnibus accounts, aggregating the deposits of many individual depositors, represented $ 6.8 billion of our deposit total as of December 31, 2019 , compared with $5.9 billion at December 31, 2018 . 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 $18 million, $13 million, and $9 million in the years ended December 31, 2019 , 2018 and 2017 , respectively. Fees paid to third-party brokers related to these CDs were $28 million, $26 million, and $12 million during the years ended December 31, 2019 , 2018 and 2017 , respectively. Interest bearing deposits at December 31, 2019 and 2018 are summarized as follows: December 31, 2019 December 31, 2018 Amount Year-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 9,616,547 2.04 % $ 8,687,766 2.46 % Savings 718,616 1.71 702,342 2.00 Certificates of deposit 13,947,743 2.44 9,551,974 2.74 Deposits - interest bearing $ 24,282,906 $ 18,942,082 ___ (1) Includes the effect of interest rate swaps in effective hedge relationships. Certificates of deposit remaining maturities are summarized as follows: December 31, 2019 2018 One year or less $ 4,934,933 $ 4,098,520 After one year to two years 4,279,406 2,045,861 After two years to three years 2,807,297 1,479,292 After three years to four years 1,285,504 494,654 After four years to five years 548,492 1,274,198 After five years 92,111 159,449 Total $ 13,947,743 $ 9,551,974 As of December 31, 2019 and 2018 , there were $963 million and $523 million, respectively, of deposits exceeding FDIC insurance limits. Accrued interest on deposits was $68 million and $53 million at December 31, 2019 and 2018 , respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Outstanding borrowings consist of unsecured debt and secured borrowings issued through our term ABS program and our Secured Borrowing Facility. The issuing entities for those secured borrowings are VIEs and are consolidated for accounting purposes. The following table summarizes our secured borrowings at December 31, 2019 and 2018. December 31, 2019 December 31, 2018 Short-Term Long-Term Total Short-Term Long-Term Total Unsecured borrowings: Unsecured debt (fixed-rate) $ — $ 198,159 $ 198,159 $ — $ 197,348 $ 197,348 Total unsecured borrowings — 198,159 198,159 — 197,348 197,348 Secured borrowings: Private Education Loan term securitizations: Fixed-rate — 2,629,902 2,629,902 — 2,284,347 2,284,347 Variable-rate — 1,525,976 1,525,976 — 1,802,609 1,802,609 Total Private Education Loan term securitizations — 4,155,878 4,155,878 — 4,086,956 4,086,956 Secured Borrowing Facility 289,230 — 289,230 — — — Total secured borrowings 289,230 4,155,878 4,445,108 — 4,086,956 4,086,956 Total $ 289,230 $ 4,354,037 $ 4,643,267 $ — $ 4,284,304 $ 4,284,304 Short-term Borrowings Secured Borrowing Facility On February 20, 2019, we amended and extended the maturity of our Secured Borrowing Facility. On February 19, 2020, we amended our Secured Borrowing Facility to, among other things, increase the amount that can be borrowed under the facility to $2 billion (from $750 million ) and extend the maturity of the facility. We hold 100 percent of the residual interest in the Secured Borrowing Facility trust. Under the amended Secured Borrowing Facility, we incur financing costs on unused borrowing capacity and on outstandings. The amended Secured Borrowing Facility extended the revolving period, during which we may borrow, repay and reborrow funds, until February 17, 2021. The scheduled amortization period, during which amounts outstanding under the Secured Borrowing Facility must be repaid, ends on February 17, 2022 (or earlier, if certain material adverse events occur). At December 31, 2019 , $289 million secured borrowings were outstanding under the Secured Borrowing Facility, and at December 31, 2018, there were no secured borrowings outstanding under the Secured Borrowing Facility. For additional information, see Notes to Consolidated Financial Statements, Note 23, “Subsequent Events.” Short-term borrowings have a remaining term to maturity of one year or less. The following table summarizes the outstanding short-term borrowings, the weighted average interest rates at the end of the period and the related average balance and weighted average interest rates during the period. The Secured Borrowing Facility’s contractual maturity is two years from the date of inception or renewal ( one -year revolving period plus a one -year amortization period); however, we classify advances under our Secured Borrowing Facility as short-term borrowings because it is our intention to repay those advances within one year. December 31, 2019 Year Ended December 31, 2019 Ending Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Short-term borrowings: Secured Borrowing Facility $ 289,230 1.74 % $ 102,639 4.91 % Maximum outstanding at any month end $ 297,800 December 31, 2018 Year Ended December 31, 2018 Ending Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Short-term borrowings: Secured Borrowing Facility $ — — % $ 52,603 8.91 % Maximum outstanding at any month end $ 300,000 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 December 31, 2019, the outstanding balance was $198 million . Secured Financings 2019 Transactions On March 13, 2019, we executed our $ 453 million SMB Private Education Loan Trust 2019-A term ABS transaction, which was accounted for as a secured financing. We sold $ 453 million of notes to third parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $451 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.26 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 0.92 percent. At December 31, 2019, $445 million of our Private Education Loans, including $417 million of principal and $28 million in capitalized interest, were encumbered because of this transaction. On June 12, 2019, we executed our $657 million SMB Private Education Loan Trust 2019-B term ABS transaction, which was accounted for as a secured financing. We sold $657 million of notes to third parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $655 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.41 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 1.01 percent . At December 31, 2019, $666 million of our Private Education Loans, including $625 million of principal and $41 million in capitalized interest, were encumbered because of this transaction. 2018 Transactions 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 December 31, 2019, $588 million of our Private Education Loans, including $553 million of principal and $35 million in capitalized interest, 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 December 31, 2019, $623 million of our Private Education Loans, including $585 million of principal and $38 million in capitalized interest, were encumbered because of this transaction. On September 19, 2018, we executed our $544 million SMB Private Education Loan Trust 2018-C term ABS transaction, which was accounted for as a secured financing. We sold $544 million of notes to third parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $541 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.32 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 0.77 percent . At December 31, 2019, $502 million of our Private Education Loans, including $471 million of principal and $31 million in capitalized interest, were encumbered because of this transaction. Pre-2018 Transactions Prior to 2018, we executed a total of $3.9 billion in ABS transactions that were accounted for as secured financings. At December 31, 2019, $2.7 billion of our Private Education Loans, including $2.6 billion of principal and $115 million in capitalized interest, were encumbered as a result of these transactions. The following table summarizes the outstanding long-term borrowings, the weighted average interest rates at the end of the period and the related average balance during the period. Rates reflect stated interest of borrowings and related discounts and premiums. The long-term borrowings amortize over time and mature serially from 2023 to 2040. December 31, 2019 Year Ended December 31, 2018 Year Ended December 31, 2018 Ending Balance Weighted Average Average Balance Ending Balance Weighted Average Interest Rate Average Balance Floating-rate borrowings $ 1,525,976 2.61 % $ 1,731,675 $ 1,802,609 3.26 % $ 1,720,540 Fixed-rate borrowings 2,828,061 3.31 2,752,183 2,481,695 3.28 2,172,993 Total long-term borrowings $ 4,354,037 3.07 % $ 4,483,858 $ 4,284,304 3.27 % $ 3,893,533 As of December 31, 2019 , the stated maturity and maturity to call date of our brokered deposits and borrowings are summarized below. December 31, 2019 Stated Maturity (1) Maturity to Call Date (2) Brokered Deposits Unsecured Debt Secured Borrowings Total Brokered Deposits Unsecured Debt Secured Borrowings Total Year of Maturity 2020 $ 2,650,654 $ — $ 565,805 $ 3,216,459 $ 2,650,654 $ — $ 565,805 $ 3,216,459 2021 3,691,692 — 507,319 4,199,011 3,691,692 — 507,319 4,199,011 2022 2,690,974 200,000 512,718 3,403,692 2,690,974 200,000 512,718 3,403,692 2023 1,270,385 — 534,692 1,805,077 1,270,385 — 534,692 1,805,077 2024 499,112 — 529,471 1,028,583 499,112 — 529,471 1,028,583 2025 and after 92,822 — 1,688,473 1,781,295 92,822 — 1,688,473 1,781,295 10,895,639 200,000 4,338,478 15,434,117 10,895,639 200,000 4,338,478 15,434,117 Hedge accounting adjustments 45,887 — — 45,887 45,887 — — 45,887 Total $ 10,941,526 $ 200,000 $ 4,338,478 $ 15,480,004 $ 10,941,526 $ 200,000 $ 4,338,478 $ 15,480,004 ____________ (1) We view our securitization trust debt as long-term based on the contractual maturity dates and projected principal paydowns based on our current estimates regarding loan prepayment speeds. The projected principal paydowns in year 2020 include $566 million related to the securitization trust debt. (2) The aggregate principal amount of debt that matures in each period is $3.2 billion in 2020, $4.2 billion in 2021, $3.4 billion in 2022, $1.8 billion in 2023, $1.0 billion in 2024, and $1.8 billion in 2025 and after. Secured Financings The following summarizes our secured financings issued in 2018 and 2019: Issue Date Issued Total Issued Weighted Average Cost of Funds (1) Weighted Average Life (in years) Private Education: 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 2018-C September 2018 544,000 1-month LIBOR plus 0.77% 4.32 Total notes issued in 2018 $ 1,900,500 Total loan and accrued interest amount securitized at inception in 2018 $ 2,101,644 2019-A March 2019 $ 453,000 1-month LIBOR plus 0.92% 4.26 2019-B June 2019 657,000 1-month LIBOR plus 1.01% 4.41 Total notes issued in 2019 $ 1,110,000 Total loan and accrued interest amount securitized at inception in 2019 $ 1,208,963 ____________ (1) Represents LIBOR equivalent cost of funds for floating and fixed-rate bonds, excluding issuance costs. Consolidated Funding Vehicles We consolidate our financing entities that are VIEs as a result of our being the entities’ primary beneficiary. As a result, these financing VIEs are accounted for as secured borrowings. December 31, 2019 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 $ — $ 4,155,878 $ 4,155,878 $ 5,246,986 $ 145,760 $ 333,173 $ 5,725,919 Secured Borrowing Facility 289,230 — 289,230 339,666 8,803 23,832 372,301 Total $ 289,230 $ 4,155,878 $ 4,445,108 $ 5,586,652 $ 154,563 $ 357,005 $ 6,098,220 December 31, 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 $ — $ 4,086,956 $ 4,086,956 $ 5,030,837 $ 113,431 $ 326,570 $ 5,470,838 Secured Borrowing Facility — — — — — 157 157 Total $ — $ 4,086,956 $ 4,086,956 $ 5,030,837 $ 113,431 $ 326,727 $ 5,470,995 ________ (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 December 31, 2019. The interest rate we are charged on these lines of credit is priced at Fed Funds plus a spread at the time of borrowing, and is payable daily. We did not utilize these lines of credit in the years ended December 31, 2019 and 2018. We established an account at the FRB to meet eligibility requirements for access to the Primary Credit borrowing facility at the FRB’s Discount Window (the “Window”). The Primary Credit borrowing facility is a lending program available to depository institutions that are in generally sound financial condition. All borrowings at the Window must be fully collateralized. We can pledge asset-backed and mortgage-backed securities, as well as FFELP Loans and Private Education Loans, to the FRB as collateral for borrowings at the Window. Generally, collateral value is assigned based on the estimated fair value of the pledged assets. At December 31, 2019 and December 31, 2018, the value of our pledged collateral at the FRB totaled $ 3.2 billion and $ 3.1 billion, respectively. The interest rate charged to us is the discount rate set by the FRB. We did not utilize this facility in the years ended December 31, 2019 and 2018. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Risk Management Strategy We maintain an overall interest rate risk management strategy that incorporates the use of derivative instruments to reduce the economic effect of interest rate changes. Our goal is to manage interest rate sensitivity by modifying the repricing frequency and underlying index characteristics of certain balance sheet 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. Although we use derivatives to reduce the risk of interest rate changes, the use of derivatives does expose us to both market and credit risk. Market risk is the chance of financial loss resulting from changes in interest rates and market liquidity. Credit risk is the risk that a counterparty will not perform its obligations under a contract and it is limited to the loss of the fair value gain in a derivative that the counterparty owes us less collateral held and plus collateral posted. When the fair value of a derivative contract less collateral held and plus collateral posted is negative, we owe the counterparty and, therefore, we have no credit risk exposure to the counterparty; however, the counterparty has exposure to us. We minimize the credit risk in derivative instruments by entering into transactions with reputable counterparties that are reviewed regularly by our Credit Department. We also maintain a policy of requiring that all derivative contracts be governed by an International Swaps and Derivatives Association, Inc. Master Agreement. Depending on the nature of the derivative transaction, bilateral collateral arrangements are required as well. When we have more than one outstanding derivative transaction with the counterparty, and there exists legally enforceable netting provisions with the counterparty (i.e., a legal right to offset receivable and payable derivative contracts), the “net” mark-to-market exposure, less collateral held and plus collateral posted, represents exposure with the counterparty. We refer to this as the “net position.” When there is a net negative exposure, we consider our exposure to the counterparty and the net position to be zero. Title VII of the Dodd-Frank Act 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 CME and the LCH. All variation margin payments on derivatives cleared through the CME and LCH are accounted for as legal settlement. As of December 31, 2019, $ 9.4 billion notional of our derivative contracts were cleared on the CME and $0.5 billion were cleared on the LCH. The derivative contracts cleared through the CME and LCH represent 95.0 percent and 5.0 percent , respectively, of our total notional derivative contracts of $ 9.9 billion at December 31, 2019. 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. The amount of variation margin included as settlement as of December 31, 2019 was $ (107) million and $ 8 million for the CME and LCH, respectively. 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 December 31, 2019 and 2018 , 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 $52 million and $27 million, respectively. Accounting for Derivative Instruments The accounting for derivative instruments requires that every derivative instrument, including certain derivative instruments embedded in other contracts, be recorded on the balance sheet as either an asset or liability measured at fair value. Our derivative instruments are classified and accounted for by us as fair value hedges, cash flow hedges, and trading hedges. We elected to early adopt ASU No. 2017-12 effective July 1, 2018. Under the standard, we are no longer required to separately measure and report hedge ineffectiveness, which was previously recorded in “gains (losses) on derivatives and hedging activities, net” in our consolidated statements of income. In accordance with the standard, certain provisions were required to be applied on a modified retrospective basis, which requires a cumulative effect adjustment to accumulated other comprehensive income with a corresponding adjustment to retained earnings as of the beginning of the fiscal year of adoption, or January 1, 2018 in our case. Fair Value Hedges We generally use fair value hedges to offset the exposure to changes in fair value of a recognized fixed-rate liability. We enter into interest rate swaps to economically convert fixed-rate liabilities into variable-rate liabilities. For fair value hedges, we generally consider all components of the derivative’s gain and/or loss when assessing hedge effectiveness and generally hedge changes in fair values due to interest rates. Under the new standard, for fair value hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in the same line item in the consolidated statements of income that is used to present the earnings effect of the hedged component of the hedged item. The timing of recognition of the change in fair value of a hedging instrument included in the assessment of hedge effectiveness is the same as prior to the adoption of ASU No. 2017-12. Cash Flow Hedges We use cash flow hedges to hedge the exposure to variability in cash flows of floating-rate liabilities. This strategy is used primarily to minimize the exposure to volatility in cash flows from future changes in interest rates. In assessing hedge effectiveness, generally all components of each derivative’s gains or losses are included in the assessment. We hedge exposure to changes in cash flows due to changes in interest rates or total changes in cash flow. Under the new standard, for cash flow hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in other comprehensive income (loss). Those amounts are subsequently reclassified to earnings, in the same line item in the consolidated statements of income as impacted by the hedged item, when the hedged item affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate deposits. During the next twelve months, we estimate that $ 5 million will be reclassified as an increase to interest expense. Trading Activities When derivative instruments do not qualify for hedge accounting treatment, they are accounted for at fair value with all changes in fair value recorded through earnings. All of our derivative instruments entered into with maturities of less than 3 years are economically hedging risk, but do not receive hedge accounting treatment. Trading derivatives also include any hedges that originally received hedge accounting treatment, but lost hedge accounting treatment due to failed effectiveness testing, as well as the activity of certain derivatives prior to those derivatives receiving hedge accounting treatment. Summary of Derivative Financial Statement Impact The following tables summarize the fair values and notional amounts of all derivative instruments at December 31, 2019 and 2018 , and their impact on earnings and other comprehensive income for the years ended December 31, 2019 , 2018 and 2017 . Impact of Derivatives on the Consolidated Balance Sheets Cash Flow Hedges Fair Value Hedges Trading Total December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2019 2018 2019 2018 2019 2018 2019 2018 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ 715 $ — $ — $ 2,000 $ — $ 90 $ 715 $ 2,090 Derivative Liabilities: (2) Interest rate swaps Interest rate — (2,032 ) (896 ) — (268 ) — (1,164 ) (2,032 ) Total net derivatives $ 715 $ (2,032 ) $ (896 ) $ 2,000 $ (268 ) $ 90 $ (449 ) $ 58 __________ (1) Fair values reported include variation margin as legal settlement of the derivative contract. Assets and liabilities are presented without consideration of master netting agreements. Derivatives are carried on the balance sheet based on net position by counterparty under master netting agreements and classified in other assets or other liabilities depending on whether in a net positive or negative position. (2) The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities December 31, December 31, December 31, December 31, 2019 2018 2019 2018 Gross position (1) $ 715 $ 2,090 $ (1,164 ) $ (2,032 ) Impact of master netting agreement (519 ) (1,389 ) 519 1,389 Derivative values with impact of master netting agreements (as carried on balance sheet) 196 701 (645 ) (643 ) Cash collateral pledged (2) 52,564 27,151 — — Net position $ 52,760 $ 27,852 $ (645 ) $ (643 ) __________ (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 December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2019 2018 2019 2018 2019 2018 2019 2018 Notional Values Interest rate swaps $ 1,150,518 $ 1,280,367 $ 5,031,429 $ 3,137,965 $ 3,744,917 $ 1,577,978 $ 9,926,864 $ 5,996,310 As of December 31, 2019 and 2018, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges: Line Item in the Balance Sheet in Which the Hedged Item is Included: Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) December 31, December 31, December 31, December 31, 2019 2018 2019 2018 Deposits $ (5,085,426 ) $ (3,114,304 ) $ (63,148 ) $ 14,202 Impact of Derivatives on the Consolidated Statements of Income Years Ended December 31, 2019 2018 2017 Fair Value Hedges Interest rate swaps: Interest recognized on derivatives $ (8,806 ) $ (11,642 ) $ 8,286 Hedged items recorded in interest expense (77,350 ) (7,966 ) 16,155 Derivatives recorded in interest expense 77,177 8,123 (20,115 ) Total $ (8,979 ) $ (11,485 ) $ 4,326 Cash Flow Hedges Interest rate swaps: Amount of gain (loss) reclassified from accumulated other comprehensive income into interest expense $ 2,299 $ (1,455 ) $ (11,187 ) Total $ 2,299 $ (1,455 ) $ (11,187 ) Trading Interest rate swaps: Change in fair value of future interest payments recorded in earnings $ 19,469 $ (1,400 ) $ (3,693 ) Total 19,469 (1,400 ) (3,693 ) Total $ 12,789 $ (14,340 ) $ (10,554 ) Impact of Derivatives on the Statements of Changes in Stockholders’ Equity Years Ended December 31, 2019 2018 2017 Amount of gain (loss) recognized in other comprehensive income (loss) $ (36,115 ) $ 10,452 $ 8,008 Amount of gain (loss) reclassified in interest expense 2,299 (1,455 ) (11,187 ) Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit $ (38,414 ) $ 11,907 $ 19,195 Cash Collateral As of December 31, 2019, cash collateral held and pledged excludes amounts that represent legal settlement of the derivative contracts held with the CME and LCH. There was no cash collateral held related to derivative exposure between us and our derivatives counterparties at December 31, 2019 and 2018 , respectively. Collateral held is recorded in “Other Liabilities” on the consolidated balance sheets. Cash collateral pledged related to derivative exposure between us and our derivatives counterparties was $53 million and $27 million at December 31, 2019 and 2018 , respectively. Collateral pledged is recorded in “Other interest-earning assets” on the consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity Preferred Stock On May 5, 2017, we redeemed, with the proceeds from our unsecured debt offering (see Note 9, “Borrowings”), the outstanding 3.3 million shares of our 6.97 percent Cumulative Redeemable Preferred Stock, Series A (the “Series A Preferred Stock”). The Series A Preferred Stock was redeemed at a price of $ 50 per share, plus accrued and unpaid dividends from May 1, 2017 to, but excluding, the May 5, 2017 redemption date. At December 31, 2019 , we had 4.0 million shares of Floating-Rate Non-Cumulative Preferred Stock, Series B (the “Series B Preferred Stock”) outstanding. The Series B Preferred Stock does not have a maturity date, but can be redeemed at our option. Redemption would include any accrued and unpaid dividends for the then current quarterly dividend period, up to the redemption date. The shares have no preemptive or conversion rights and are not exchangeable for any of our other securities or property. Dividends are not mandatory and are paid quarterly, when, as, and if declared by the Board of Directors. Holders of Series B Preferred Stock are entitled to receive quarterly dividends based on 3-month LIBOR plus 170 basis points per annum in arrears. Upon liquidation or dissolution of the Company, holders of the Series B Preferred Stock are entitled to receive $ 100 per share, plus an amount equal to accrued and unpaid dividends for the then current quarterly dividend period, pro rata, and before any distribution of assets are made to holders of our common stock. Common Stock Our shareholders have authorized the issuance of 1.125 billion shares of common stock (par value of $0 .20 ). At December 31, 2019 , 421 million shares were issued and outstanding and 37 million shares were unissued but encumbered for outstanding stock options, restricted stock, restricted stock units, performance stock units and dividend equivalent units for employee compensation and remaining authority for stock-based compensation plans. In the year ended December 31, 2019, we paid a total common stock dividend of $0.12 per common share. We did no t pay common stock dividends for the years ended December 31, 2018 and 2017 . Common stock dividend declarations are subject to determination by, and the discretion of, our Board of Directors. We may change our common stock dividend policy at any time. We are dependent on funds obtained from the Bank to fund dividend payments. Regulatory and other legal restrictions may limit our ability to transfer funds freely, either to or from our subsidiaries. In particular, the Bank is subject to laws and regulations that authorize regulatory bodies to block or reduce the flow of funds to us, or that prohibit such transfers altogether in certain circumstances. These laws, regulations and rules may hinder our ability to access funds that we may need to make payments in respect of our stock or to satisfy our other responsibilities. The FDIC has the authority to prohibit or limit the payment of dividends by the Bank and SLM Corporation. The January 23, 2019 share repurchase program (the “2019 Share Repurchase Program”), which was effective upon announcement and expires on January 22, 2021, permits us to repurchase from time to time shares of our common stock up to an aggregate repurchase price not to exceed $200 million . Under our 2019 Share Repurchase Program, we repurchased 17 million shares of common stock for $167 million in the year ended December 31, 2019. On January 22, 2020, we announced a new share repurchase program (the “2020 Share Repurchase Program”), which was effective upon announcement and expires on January 21, 2022, and permits us to repurchase shares of common stock from time to time up to an aggregate repurchase price not to exceed $600 million . Repurchases may occur from time to time and through a variety of methods, including open market repurchases, repurchases effected through Rule 10b5-1 trading plans, negotiated block purchases, accelerated share repurchase programs, tender offers or other similar transactions. For the years ended December 31, 2018 and 2017, we only repurchased common stock acquired in connection with taxes withheld resulting from award exercises and vesting under our employee stock-based compensation plans. The following table summarizes our common share repurchases and issuances associated with these programs. Years Ended December 31, (Shares and per share amounts in actuals) 2019 2018 2017 Common stock repurchased under repurchase program (1) 16,962,199 — — Average purchase price per share (2) $ 9.86 $ — $ — Shares repurchased related to employee stock-based compensation plans (3) 1,369,630 3,087,396 3,358,417 Average purchase price per share $ 10.85 $ 11.32 $ 11.96 Common shares issued (4) 3,743,705 6,392,634 6,831,108 _________ (1) Common shares purchased under our 2019 Share Repurchase Program. $33 million of capacity under the program remained available as of December 31, 2019. (2) Average purchase price per share includes purchase commission costs. (3) 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. (4) Common shares issued under our various compensation and benefit plans. The closing price of our common stock on December 31, 2019 was $ 8.91 |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
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. Years Ended December 31, (In thousands, except per share data) 2019 2018 2017 Numerator: Net income $ 578,276 $ 487,476 $ 288,934 Preferred stock dividends 16,837 15,640 15,714 Net income attributable to SLM Corporation common stock $ 561,439 $ 471,836 $ 273,220 Denominator: Weighted average shares used to compute basic EPS 427,292 435,054 431,216 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units, performance stock units and Employee Stock Purchase Plan (“ESPP”) (1)(2) 3,382 4,627 7,335 Weighted average shares used to compute diluted EPS 430,674 439,681 438,551 Basic earnings per common share attributable to SLM Corporation $ 1.31 $ 1.08 $ 0.63 Diluted earnings per common share attributable to SLM Corporation $ 1.30 $ 1.07 $ 0.62 __________ (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, performance stock units and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method. (2) For the years ended December 31, 2019 , 2018 and 2017 , securities covering no shares, less than 1 million shares and no |
Stock-Based Compensation Plans
Stock-Based Compensation Plans and Arrangements | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plans and Arrangements | Stock-Based Compensation Plans and Arrangements Plan Summaries As of December 31, 2019 , we had one active stock-based compensation plan that provides for grants of equity awards to our employees and non-employee directors. We also maintained an Employee Stock Purchase Plan (the “ESPP”). Shares issued under these stock-based compensation plans may be either shares reacquired by us or shares that are authorized but unissued. The SLM Corporation 2012 Omnibus Incentive Plan was approved by shareholders on May 24, 2012. An amendment to the plan was approved and other material terms of the plan were re-approved by shareholders on June 22, 2017. At December 31, 2019 , 17 million shares, as adjusted to reflect the effects of the Spin-Off, were authorized to be issued from this plan. An amendment to the ESPP was approved by shareholders on May 24, 2012 that authorized the issuance of 6 million shares under the plan and kept the terms of the plan substantially the same. The number of shares authorized under the plan was subsequently adjusted to 15 million shares on June 25, 2014, to reflect the effects of the Spin-Off. Stock-Based Compensation The total stock-based compensation cost recognized in the consolidated statements of income for the years ended December 31, 2019 , 2018 and 2017 was $31 million, $32 million and $28 million, respectively. As of December 31, 2019 , there was $ 13 million of total unrecognized compensation expense related to unvested stock awards, which is expected to be recognized over a weighted average period of 1.4 years . We amortize compensation expense on a straight-line basis over the related vesting periods of each tranche of each award. Stock Options Stock options granted prior to 2012 expire 10 years after the grant date, and those granted since 2012 expire in 5 years. The exercise price must be equal to or greater than the market price of our common stock on the grant date. We have granted time-vested, price-vested and performance-vested options to our employees and non-employee directors. Time-vested options granted to management and non-management employees generally vest over three years . Price-vested options granted to management employees vest upon our common stock reaching a targeted closing price for a set number of days. Performance-vested options granted to management employees vest one-third per year for three years based on corporate earnings-related performance targets. Options granted to non-employee directors vest upon the director’s election to the Board of Directors. There were no options granted in the years ended December 31, 2019 , 2018 and 2017. The following table summarizes stock option activity for the year ended December 31, 2019 . (Dollars in thousands, except per share data) Number of Options Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (1) Outstanding at December 31, 2018 1,391,819 $ 10.44 Granted — — Exercised (2)(3) (593,806 ) 3.63 Canceled (8,167 ) 3.94 Outstanding at December 31, 2019 (4) 789,846 $ 4.75 0.7 years $ 3,284 Exercisable at December 31, 2019 789,846 $ 4.75 0.7 years $ 3,284 ____________ (1) The aggregate intrinsic value represents the total intrinsic value (the aggregate difference between our closing stock price on December 31, 2019 and the exercise price of in-the-money options) that would have been received by the option holders if all in-the-money options had been exercised on December 31, 2019. (2) The total intrinsic value of options exercised was $4 million, $17 million, and $16 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. (3) No cash was received from option exercises for the year ended December 31, 2019. The actual tax benefit realized for the tax deductions from option exercises totaled $1 million for the year ended December 31, 2019. (4) For net-settled options, gross number is reflected. Restricted Stock Restricted stock awards generally vest over one year . Outstanding restricted stock is entitled to dividend equivalent units that vest subject to the same vesting requirements or lapse of transfer restrictions, as applicable, as the underlying restricted stock award. The fair value of restricted stock awards is based on our stock price at the grant date. The following table summarizes restricted stock activity for the year ended December 31, 2019 . (Shares and per share amounts in actuals) Number of Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2018 84,392 $ 11.73 Granted 118,789 9.26 Vested (1) (84,392 ) 11.73 Canceled — — Non-vested at December 31, 2019 (2) 118,789 $ 9.26 _________ (1) The total fair value of shares that vested during the years ended December 31, 2019 , 2018 and 2017 was $1 million, $1 million and $1 million, respectively. (2) As of December 31, 2019 , there was $1 million of unrecognized compensation cost related to restricted stock, which is expected to be recognized over a weighted average period of 0.5 years . Restricted Stock Units and Performance Stock Units Restricted stock units (“RSUs”) and performance stock units (“PSUs”) are equity awards granted to employees that entitle the holder to shares of our common stock when the award vests. RSUs may be time-vested over three years or vested at grant but subject to transfer restrictions, while PSUs vest based on corporate performance targets over a three -year period. Outstanding RSUs and PSUs are entitled to dividend equivalent units that vest subject to the same vesting requirements or lapse of transfer restrictions, as applicable, as the underlying award. The fair value of RSUs is based on our stock price at the grant date. The following table summarizes RSU and PSU activity for the year ended December 31, 2019 . (Shares and per share amounts in actuals) Number of RSUs/ PSUs Weighted Average Grant Date Fair Value Outstanding at December 31, 2018 5,338,034 $ 10.11 Granted 3,008,102 10.84 Vested and converted to common stock (1) (3,030,536 ) 8.78 Canceled (136,383 ) 11.09 Outstanding at December 31, 2019 (2) 5,179,217 $ 11.28 __________ (1) The total fair value of RSUs/PSUs that vested and converted to common stock during the years ended December 31, 2019 , 2018 and 2017 was $27 million, $25 million and $29 million, respectively. (2) As of December 31, 2019 , there was $12 million of unrecognized compensation cost related to RSUs/PSUs, which is expected to be recognized over a weighted average period of 1.4 years . Employee Stock Purchase Plan Employees may purchase shares of our common stock at the end of a 12 -month offering period at a price equal to the share price at the beginning of the 12-month period, less 15 percent , up to a maximum purchase price of $7,500 (whole dollars). The purchase price for each offering is determined at the beginning of the offering period on August 1. The fair values of the stock purchase rights of the ESPP offerings were calculated using a Black-Scholes option pricing model with the following weighted average assumptions: Years Ended December 31, (Dollars per share) 2019 2018 2017 Risk-free interest rate 1.87 % 2.44 % 1.22 % Expected volatility 29 % 27 % 32 % Expected dividend rate 1.34 % — % — % Expected life of the option 1 year 1 year 1 year Weighted average fair value of stock purchase rights $ 1.77 $ 2.32 $ 2.36 The expected volatility is based on implied volatility from publicly-traded options on our stock at the grant date and historical volatility of our stock consistent with the expected life. The risk-free interest rate is based on the U.S. Treasury bill rate at the grant date consistent with the expected life. The dividend yield was zero for the years ended December 31, 2018 and 2017, respectively, as we did not pay dividends on our common stock in 2018 and 2017. The fair values were amortized to compensation cost on a straight-line basis over a one -year vesting period. As of December 31, 2019 , there was less than $1 million of unrecognized compensation cost related to the ESPP, which is expected to be recognized by July 2020. No shares were purchased for the year ended December 31, 2019, as our stock price on July 31, 2019 was less than the offering price for the ESPP plan. During the years ended December 31, 2018 and 2017, plan participants purchased 233,232 shares and 283,952 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We use estimates of fair value in applying various accounting standards for the consolidated financial statements. We categorize our fair value estimates based on a hierarchal framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. For additional information regarding our policies for determining fair value and the hierarchical framework, see Note 2, “Significant Accounting Policies — Fair Value Measurement.” The following table summarizes the valuation of our financial instruments that are marked-to-fair value on a recurring basis. Fair Value Measurements on a Recurring Basis December 31, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Available-for-sale investments $ — $ 487,669 $ — $ 487,669 $ — $ 176,245 $ — $ 176,245 Derivative instruments — 715 — 715 — 2,090 — 2,090 Total $ — $ 488,384 $ — $ 488,384 $ — $ 178,335 $ — $ 178,335 Liabilities Derivative instruments $ — $ (1,164 ) $ — $ (1,164 ) $ — $ (2,032 ) $ — $ (2,032 ) Total $ — $ (1,164 ) $ — $ (1,164 ) $ — $ (2,032 ) $ — $ (2,032 ) The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. December 31, 2019 December 31, 2018 Fair Value Carrying Value Difference Fair Value Carrying Value Difference Earning assets: Loans held for investment, net: Private Education Loans $ 24,988,941 $ 22,896,515 $ 2,092,426 $ 22,313,419 $ 20,294,843 $ 2,018,576 FFELP Loans 795,055 783,816 11,239 859,185 847,889 11,296 Personal Loans 1,047,119 983,643 63,476 1,156,531 1,128,187 28,344 Credit Cards 3,818 3,818 — — — — Cash and cash equivalents 5,563,877 5,563,877 — 2,559,106 2,559,106 — Available-for-sale investments 487,669 487,669 — 176,245 176,245 — Accrued interest receivable 1,491,471 1,392,725 98,746 1,285,842 1,191,981 93,861 Tax indemnification receivable 27,558 27,558 — 39,207 39,207 — Derivative instruments 715 715 — 2,090 2,090 — Total earning assets $ 34,406,223 $ 32,140,336 $ 2,265,887 $ 28,391,625 $ 26,239,548 $ 2,152,077 Interest-bearing liabilities: Money-market and savings accounts $ 10,363,691 $ 10,335,163 $ (28,528 ) $ 9,370,957 $ 9,390,108 $ 19,151 Certificates of deposit 14,065,007 13,947,743 (117,264 ) 9,513,194 9,551,974 38,780 Short-term borrowings 289,230 289,230 — — — — Long-term borrowings 4,434,323 4,354,037 (80,286 ) 4,278,931 4,284,304 5,373 Accrued interest payable 75,158 75,158 — 61,341 61,341 — Derivative instruments 1,164 1,164 — 2,032 2,032 — Total interest-bearing liabilities $ 29,228,573 $ 29,002,495 $ (226,078 ) $ 23,226,455 $ 23,289,759 $ 63,304 Excess of net asset fair value over carrying value $ 2,039,809 $ 2,215,381 The methods and assumptions used to estimate the fair value of each class of financial instruments are as follows: Cash and Cash Equivalents Cash and cash equivalents are carried at cost. Carrying value approximated fair value for disclosure purposes. These are level 1 valuations. Investments Investments are classified as available-for-sale and are carried at fair value in the consolidated financial statements. Investments in mortgage-backed securities and Utah Housing Corporation bonds are valued using observable market prices of similar assets. As such, these are level 2 valuations. Loans Held For Investment and Accrued Interest Receivable Private Education Loans Our Private Education Loans are accounted for at cost or at the lower of cost or market if the loan is held-for-sale. For Private Education Loans, fair value was determined by using observable quoted prices for similar assets in our most recent market transactions. Adjustments were then made to account for the value of loans in our portfolio that have materially different characteristics than those included in the most recent market transaction. These are considered level 2 valuations. A portion of the fair value that has been modeled is attributable to accrued interest receivable that has not yet been capitalized, and has been allocated to the accrued interest receivable line item. The remaining accrued interest receivable that will not be capitalized into the principal balance of the loan is carried at cost. FFELP Loans, Personal Loans, and Credit Cards Our FFELP Loans, Personal Loans and Credit Cards are accounted for at cost or at the lower of cost or market if the loan is held-for-sale. For both Personal Loans and FFELP Loans, the fair value was determined by modeling expected loan level cash flows using stated terms of the assets and internally developed assumptions to determine aggregate portfolio yield, net present value and average life. The significant assumptions used to determine fair value are prepayment speeds, default rates, cost of funds and required return on equity. Significant inputs into the model are not observable. However, we do calibrate the model based on market transactions when appropriate. As such, these are level 3 valuations. Tax Indemnification Receivable Tax indemnification receivable is carried at cost. The carrying value approximates fair value. This is a level 2 valuation. Money Market and Savings Accounts Some of our MMDAs are fixed-rate deposits that are subject to minimum balances for a specified period of time. The fair values of these deposits are estimated using discounted cash flows based on rates currently offered for deposits of similar maturities. These are level 2 valuations. The fair values of our remaining money market and savings accounts equal the amounts payable on demand at the balance sheet date and are reported at their carrying value. These are level 1 valuations. Certificates of Deposit The fair values of CDs are estimated using discounted cash flows based on rates currently offered for deposits of similar remaining maturities. These are level 2 valuations. Accrued Interest Payable Accrued interest payable is carried at cost. The carrying value approximates fair value due to its short-term nature. This is a level 1 valuation. Borrowings Borrowings are accounted for at cost in the consolidated financial statements. The carrying value of short-term borrowings approximated fair value for disclosure purposes, due to the short-term nature of those borrowings. This is a level 1 valuation. The fair value of long-term borrowings is estimated using current market prices. This is a level 2 valuation. Derivatives All derivatives are accounted for at fair value in the consolidated financial statements. The fair value of derivative financial instruments was determined by a standard derivative pricing and option model using the stated terms of the contracts and observable market inputs. It is our policy to compare the derivative fair values to those received from our counterparties in order to evaluate the model’s outputs. When determining the fair value of derivatives, we take into account counterparty credit risk for positions where we are exposed to the counterparty on a net basis by assessing exposure net of collateral held. When the counterparty has exposure to us under derivative contracts with the Company, we fully collateralize the exposure (subject to certain thresholds). Interest rate swaps are valued using a standard derivative cash flow model with a LIBOR swap yield curve, which is an observable input from an active market. These derivatives are level 2 fair value estimates in the hierarchy. |
Arrangements with Navient Corpo
Arrangements with Navient Corporation | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Arrangements with Navient Corporation | Arrangements with Navient Corporation In connection with the Spin-Off, we entered into a Separation and Distribution Agreement with Navient (the “Separation and Distribution Agreement”). We also entered into various other ancillary agreements with Navient to effect the Spin-Off and provide a framework for our relationship with Navient thereafter, such as a transition services agreement, a tax sharing agreement, an employee matters agreement, a loan servicing and administration agreement, a joint marketing agreement, a key services agreement, a data sharing agreement and a master sublease agreement. The majority of these agreements are transitional in nature with most having terms that have expired or will expire within the next one to two years. We continue to have exposure to risks related to Navient’s creditworthiness. If we are unable to obtain indemnification payments from Navient, our results of operations and financial condition could be materially and adversely affected. Pursuant to the terms of the Spin-Off and applicable law, Navient is responsible for all liabilities (whether accrued, contingent or otherwise and whether known or unknown) arising out of or resulting from the conduct of pre-Spin-Off SLM and its subsidiaries’ businesses prior to the Spin-Off, other than certain specifically identified liabilities relating to the conduct of our consumer banking business for which the Bank is responsible. Nonetheless, given the prior usage of the Sallie Mae and SLM names by entities now owned by Navient, we and our subsidiaries may from time to time be improperly named as defendants in legal proceedings where the allegations at issue are the legal responsibility of Navient. Most of these legal proceedings involve matters that arose in whole or in part in the ordinary course of business of pre-Spin-Off SLM. Likewise, as the period of time since the Spin-Off increases, so does the likelihood any allegations that may be made may be in part for our own actions in a post-Spin-Off time period and in part for Navient’s conduct in a pre-Spin-Off time period. We will not be providing information on these proceedings unless there are material issues of fact or disagreement with Navient as to the bases of the proceedings or responsibility therefor that we believe could have a material, adverse impact on our business, assets, financial condition, liquidity or outlook if not resolved in our favor. We briefly summarize below some of the most significant agreements and relationships we continue to have with Navient. For additional information regarding the Separation and Distribution Agreement and the other ancillary agreements, see our Current Report on Form 8-K filed on May 2, 2014. Separation and Distribution Agreement The Separation and Distribution Agreement addresses, among other things, the following activities: • the obligation of each party to indemnify the other against liabilities retained or assumed by that party pursuant to the Separation and Distribution Agreement and in connection with claims of third-parties; • the allocation among the parties of rights and obligations under insurance policies; and • the creation of a governance structure, including a separation oversight committee of representatives from us and Navient, by which matters related to the separation and other transactions contemplated by the Separation and Distribution Agreement will be monitored and managed. The Separation and Distribution Agreement provides specific processes and procedures pursuant to which we may submit claims for indemnification to Navient. If for any reason Navient is unable or unwilling to pay claims made against it, our costs, operating expenses, cash flows and financial condition could be materially and adversely affected over time. Indemnification Obligations Pursuant to the terms of the Separation and Distribution Agreement, and as contemplated by the structure of the Spin-Off, Navient is legally obligated to indemnify the Bank against all claims, actions, damages, losses or expenses that may arise from the conduct of all activities of pre-Spin-Off SLM occurring prior to the Spin-Off, except for certain liabilities related to the conduct of the pre-Spin-Off consumer banking business that were specifically assumed by the Bank (and as to which the Bank is obligated to indemnify Navient). Some significant examples of the types of indemnification obligations Navient has under the Separation and Distribution Agreement and related ancillary agreements include: • Navient is required to indemnify the Company and the Bank for any liabilities, costs or expenses they may incur arising from any action or threatened action related to the servicing, operations and collections activities of pre-Spin-Off SLM and its subsidiaries with respect to Private Education Loans and FFELP Loans that were assets of the Bank or Navient at the time of the Spin-Off; provided that written notice was provided to Navient on or prior to April 30, 2017, the third anniversary date of the Spin-Off. Navient is not required to indemnify for changes in law or changes in prior existing interpretations of law that occur on or after April 30, 2014. • In connection with the Spin-Off, we recorded a liability related to uncertain tax positions of $ 27 million for which we are indemnified by Navient. As of December 31, 2019, the remaining balance of the indemnification receivable related to those uncertain tax positions was $ 15 million. Long-Term Arrangements The loan servicing and administration agreement governs the terms by which Navient provides servicing, administration and collection services for the Bank’s portfolio of FFELP Loans, as well as servicing history information with respect to Private Education Loans previously serviced by Navient and access to certain promissory notes in Navient’s possession. The term of the loan servicing and administration agreement has been extended to April 30, 2022. The data sharing agreement provided us the right to obtain from Navient certain post-Spin-Off performance data relating to Private Education Loans owned or serviced by Navient to support and facilitate ongoing underwriting, originations, forecasting, performance and reserve analyses. The term of the data sharing agreement expired on April 29, 2019, however. The tax sharing agreement governs the respective rights, responsibilities and obligations of us and Navient after the Spin-Off relating to taxes, including with respect to the payment of taxes, the preparation and filing of tax returns and the conduct of tax contests. Under this agreement, each party is generally liable for taxes attributable to its business. The agreement also addresses the allocation of tax liabilities that are incurred as a result of the Spin-Off and related transactions. Additionally, the agreement restricts the parties from taking certain actions that could prevent the Spin-Off from qualifying for the anticipated tax treatment. Amended Loan Participation and Purchase Agreement Prior to the Spin-Off, the Bank sold substantially all of its Private Education Loans to several former affiliates, now subsidiaries of Navient (collectively, the “Purchasers”), pursuant to this agreement. This agreement predates the Spin-Off, but was significantly amended and reduced in scope in connection with the Spin-Off. Post-Spin-Off, the Bank retained only the right to require the Purchasers to purchase Split Loans (at fair value) when the Split Loans either (1) were more than 90 days past due; (2) had been restructured; (3) had been granted a hardship forbearance or more than six months of administrative forbearance; or (4) had a borrower or cosigner who had 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 . During the year ended December 31, 2017, the Bank sold loans to the Purchasers in the amount of $ 12 million in principal and less than $ 1 million in accrued interest income. There was no gain or loss resulting from loans sold to the Purchasers in the year ended December 31, 2017. Total write-downs to fair value for loans sold to the Purchasers with a fair value lower than par totaled $5 |
Regulatory Capital
Regulatory Capital | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | Regulatory Capital The Bank is subject to various regulatory capital requirements administered by the FDIC and UDFI. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material adverse effect on our business, results of operations and financial condition. Under the FDIC’s regulations implementing the Basel III capital framework (“U.S. Basel III”) and the regulatory framework for prompt corrective action, the Bank must meet specific capital standards that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and its classification under the prompt corrective action framework are also subject to qualitative judgments by the regulators about components of capital, risk weightings and other factors. U.S. Basel III is aimed at increasing both the quantity and quality of regulatory capital. Certain aspects of U.S. Basel III, including new deductions from and adjustments to regulatory capital and a capital conservation buffer, have been phased in over several years. The Bank is subject to the following minimum capital ratios under U.S. Basel III: a Common Equity Tier 1 risk-based capital ratio of 4.5 percent, a Tier 1 risk-based capital ratio of 6.0 percent, a Total risk-based capital ratio of 8.0 percent, and a Tier 1 leverage ratio of 4.0 percent. In addition, as of January 1, 2019, the Bank is subject to a fully phased-in Common Equity Tier 1 capital conservation buffer of greater than 2.5 percent. (As of December 31, 2018, the Bank was subject to a Common Equity Tier 1 capital conservation buffer of greater than 1.875 percent.) Failure to maintain the buffer will result in restrictions on the Bank’s ability to make capital distributions, including the payment of dividends, and to pay discretionary bonuses to executive officers. Including the buffer, as of January 1, 2019, the Bank is required to maintain the following capital ratios under U.S. Basel III in order to avoid such restrictions: a Common Equity Tier 1 risk-based capital ratio of greater than 7.0 percent, a Tier 1 risk-based capital ratio of greater than 8.5 percent and a Total risk-based capital ratio of greater than 10.5 percent. To qualify as “well capitalized” under the prompt corrective action framework for insured depository institutions, the Bank must maintain a Common Equity Tier 1 risk-based capital ratio of at least 6.5 percent, a Tier 1 risk-based capital ratio of at least 8.0 percent, a Total risk-based capital ratio of at least 10.0 percent, and a Tier 1 leverage ratio of at least 5.0 percent. The following capital amounts and ratios are based upon the Bank’s average assets and risk-weighted assets, as indicated. Actual U.S. Basel III (1)(2) Amount Ratio Amount Ratio As of December 31, 2019: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 3,264,309 12.2 % $ 1,876,050 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 3,264,309 12.2 % $ 2,278,060 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,600,668 13.4 % $ 2,814,074 > 10.5 % Tier 1 Capital (to Average Assets) $ 3,264,309 10.2 % $ 1,282,642 > 4.0 % As of December 31, 2018: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 2,896,091 12.1 % $ 1,528,209 > 6.375 % Tier 1 Capital (to Risk-Weighted Assets) $ 2,896,091 12.1 % $ 1,887,787 > 7.875 % Total Capital (to Risk-Weighted Assets) $ 3,196,279 13.3 % $ 2,367,226 > 9.875 % Tier 1 Capital (to Average Assets) $ 2,896,091 11.1 % $ 1,039,226 > 4.0 % ________________ (1) Reflects the U.S. Basel III minimum required ratio plus the applicable capital conservation buffer. (2) The Bank’s regulatory capital ratios also exceeded all applicable standards for the Bank to qualify as “well capitalized” under the prompt corrective action framework. 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 declared $254 million in dividends to the Company for the year ended December 31, 2019, with the proceeds primarily used to fund the 2019 Share Repurchase Program and stock dividends. The Bank paid no dividends on its common stock for the years ended December 31, 2018 |
Defined Contribution Plans
Defined Contribution Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Defined Contribution Plans | Defined Contribution Plans We participate in a defined contribution plan which is intended to qualify under section 401(k) of the Internal Revenue Code. The Sallie Mae 401(k) Savings Plan covers substantially all employees. After six months of service, we match 100 percent of the first five percent of contributions for eligible employees. For the years ended December 31, 2019 , 2018 and 2017 , we contributed $ 7 million, $ 5 million and $5 million, respectively, to this plan. |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Commitments When we approve a Private Education Loan at the beginning of an academic year, that approval may cover the borrowing for the entire academic year. As such, we do not always disburse the full amount of the loan at the time of such approval, but instead have a commitment to fund a portion of the loan at a later date (usually at the start of the second semester or subsequent trimesters). At December 31, 2019 , we had $ 1.9 billion of outstanding contractual loan commitments which we expect to fund during the remainder of the 2019/2020 academic year. At December 31, 2019 , we had a $2 million reserve recorded in “Other Liabilities” to cover expected losses that may occur during the one -year loss emergence period on these unfunded commitments. Regulatory Matters In May 2014, the Bank received a Civil Investigative Demand (“CID”) from the CFPB as part of the CFPB’s separate investigation relating to customer complaints, fees and charges assessed in connection with the servicing of student loans and related collection practices of pre-Spin-Off SLM by entities now subsidiaries of Navient during a time period prior to the Spin-Off (the “CFPB Investigation”). Two state attorneys general also provided the Bank identical CIDs and other state attorneys general have become involved in the inquiry over time (collectively, the “Multi-State Investigation”). To the extent requested, the Bank has been cooperating fully with the CFPB and the attorneys general conducting the Multi-State Investigation. Given the timeframe covered by the CIDs, the CFPB Investigation and the Multi-State Investigation, and the focus on practices and procedures previously conducted by Navient and its servicing subsidiaries prior to the Spin-Off, Navient is leading the response to these investigations. Consequently, we have no basis from which to estimate either the duration or ultimate outcome of these investigations. With regard to the CFPB Investigation, we note that on January 18, 2017, the CFPB filed a complaint in federal court in Pennsylvania against Navient, along with its subsidiaries, Navient Solutions, Inc. and Pioneer Credit Recovery, Inc. The complaint alleges these Navient entities, among other things, engaged in deceptive practices with respect to their historic servicing and debt collection practices. Neither SLM, the Bank, nor any of their current subsidiaries are named in, or otherwise a party to, the lawsuit and are not alleged to have engaged in any wrongdoing. The CFPB’s complaint asserts Navient’s assumption of these liabilities pursuant to the Separation and Distribution Agreement. On January 18, 2017, the Illinois Attorney General filed a lawsuit in Illinois state court against Navient - its subsidiaries Navient Solutions, Inc., Pioneer Credit Recovery, Inc., and General Revenue Corporation - and the Bank arising out of the Multi-State Investigation. On March 20, 2017, the Bank moved to dismiss the Illinois Attorney General action as to the Bank, arguing, among other things, the complaint failed to allege with sufficient particularity or specificity how the Bank was responsible for any of the alleged conduct, most of which predated the Bank’s existence. On July 10, 2018, the Court granted the Bank’s motion to dismiss without prejudice. On August 7, 2018, the Illinois Attorney General filed a First Amended Complaint and, on October 9, 2018, the Bank again moved to dismiss the action based on grounds similar to those raised in its March 20, 2017 motion. The Illinois Attorney General filed its response on November 21, 2018, and the Bank filed its reply on December 10, 2018. Oral argument on the motion took place on January 9, 2019. The Court took the motion under advisement. On July 17, 2018, the Mississippi Attorney General filed a lawsuit in Mississippi state court against Navient, Navient Solutions, LLC, and the Bank arising out of the Multi-State Investigation. The complaint alleges unfair and deceptive trade practices against all three defendants as to private loan origination practices from 2000 to 2009, and against the two Navient defendants as to servicing practices between 2010 and the present. The complaint further alleges that Navient assumed responsibility for these matters under the Separation and Distribution Agreement for alleged conduct that pre-dated the Spin-Off. On September 27, 2018, the Mississippi Attorney General filed an amended complaint. On October 8, 2018, the Bank moved to dismiss the Mississippi Attorney General’s action as to the Bank, arguing, among other things, that the complaint failed to allege with sufficient particularity or specificity how the Bank was responsible for any of the alleged conduct, most of which predated the Bank’s existence. On November 20, 2018, the Mississippi Attorney General filed an opposition brief and the Bank filed a reply on December 21, 2018. The court heard oral argument on the Bank’s motion to dismiss on April 11, 2019. On August 15, 2019, the court entered an order denying the Bank’s motion to dismiss. On September 5, 2019, the Bank filed with the Supreme Court of Mississippi a petition for interlocutory appeal. The Mississippi Attorney General filed an opposition to the petition for interlocutory appeal on September 19, 2019. On October 16, 2019, the Supreme Court of Mississippi granted the Bank’s petition for interlocutory appeal and stayed the trial court proceedings. To date, three other state attorneys general (California, Washington and Pennsylvania) have filed suits against Navient and one or more of its current subsidiaries related to matters arising from the Multi-State Investigation. Neither SLM, the Bank, nor any of their current subsidiaries are named in, or otherwise a party to, the California, Washington or Pennsylvania lawsuits, and no claims are asserted against them. Each complaint asserts in its own fashion that Navient assumed responsibility under the Separation and Distribution Agreement for the alleged conduct in the complaints prior to the Spin-Off. On September 24, 2018, the Washington Attorney General served a third-party subpoena on the Bank calling for the production of certain records. The Bank has responded to the subpoena. Additional lawsuits may arise from the Multi-State Investigation which may or may not name the Company, the Bank or any of their current subsidiaries as parties to these suits. Pursuant to the terms of the Separation and Distribution Agreement, and as contemplated by the structure of the Spin-Off, Navient is legally obligated to indemnify the Bank against all claims, actions, damages, losses or expenses that may arise from the conduct of all activities of pre-Spin-Off SLM occurring prior to the Spin-Off, except for certain liabilities related to the conduct of the pre-Spin-Off consumer banking business that were specifically assumed by the Bank (and as to which the Bank is obligated to indemnify Navient). Navient has acknowledged its indemnification obligations under the Separation and Distribution Agreement, in connection with the Multi-State Investigation and the related lawsuits in which the Bank has been named as a party. Navient has informed the Bank, however, that it believes that the Bank may be responsible to indemnify Navient against certain potential liabilities arising from the above-described lawsuits under the Separation and Distribution Agreement and/or a separate loan servicing agreement between the parties, and has suggested that the parties defer further discussion regarding indemnification obligations, and reimbursement of ongoing legal costs, in connection with the lawsuits until the lawsuits are resolved. The Bank disagrees with Navient’s position and the Bank has reiterated to Navient that Navient is responsible for promptly indemnifying the Bank against all liabilities arising out of the conduct of pre-Spin-Off SLM that are at issue in the Multi-State Investigation and in the above-described lawsuits. Contingencies In the ordinary course of business, we and our subsidiaries are routinely defendants in or parties to pending and threatened legal actions and proceedings, including actions brought on behalf of various classes of claimants. These actions and proceedings may be based on alleged violations of consumer protection, securities, employment and other laws. In certain of these actions and proceedings, claims for substantial monetary damage may be asserted against us and our subsidiaries. It is common for the Company, our subsidiaries and affiliates to receive information and document requests and investigative demands from state attorneys general, legislative committees, and administrative agencies. These requests may be for informational or regulatory purposes and may relate to our business practices, the industries in which we operate, or other companies with whom we conduct business. Our practice has been and continues to be to cooperate with these bodies and be responsive to any such requests. We are required to establish reserves for litigation and regulatory matters where those matters present loss contingencies that are both probable and estimable. When loss contingencies are not both probable and estimable, we do not establish reserves. Based on current knowledge, management does not believe there are loss contingencies, if any, arising from pending investigations, litigation or regulatory matters for which reserves should be established. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes Reconciliations of the statutory U.S. federal income tax rates to our effective tax rate for continuing operations follow: Years Ended December 31, 2019 2018 2017 Statutory rate 21.0 % 21.0 % 35.0 % Tax reform — (0.3 ) 3.1 State tax, net of federal benefit 3.9 3.8 2.6 Business tax credits (3.5 ) (0.5 ) (0.1 ) Reverse federal impact of indemnification adjustments 0.3 3.5 2.5 Unrecognized tax benefits, U.S. federal and state, net of federal benefit (0.1 ) (15.9 ) (2.0 ) Excess tax benefits/deficiencies for employee stock-based compensation, federal and state, net of federal benefit (0.3 ) (0.6 ) (1.7 ) Impact of state rate change on net deferred tax liabilities, net of federal benefit — (0.4 ) 0.6 State, valuation allowance adjustments on net operating losses 0.1 0.4 0.2 Other, net 0.9 1.9 1.0 Effective tax rate 22.3 % 12.9 % 41.2 % The effective tax rate varies from the statutory U.S. federal rate of 21 percent primarily due to business tax credits and the impact of state taxes, net of federal benefit, for the year ended December 31, 2019 ; the reduction in uncertain tax positions related to statute of limitation expirations and the impact of state taxes, net of federal benefit, for the year ended December 31, 2018 ; and the impact of tax reform and state taxes, net of federal benefit, for the year ended December 31, 2017 . Income tax expense consists of: December 31, 2019 2018 2017 Current provision: Federal $ 150,800 $ 102,516 $ 248,191 State 24,378 32,638 13,092 Total current provision 175,178 135,154 261,283 Deferred benefit: Federal (8,240 ) (57,076 ) (58,124 ) State (1,474 ) (6,225 ) (628 ) Total deferred benefit (9,714 ) (63,301 ) (58,752 ) Provision for income tax expense $ 165,464 $ 71,853 $ 202,531 The tax effect of temporary differences that give rise to deferred tax assets and liabilities is summarized below. December 31, 2019 2018 Deferred tax assets: Loan reserves $ 109,369 $ 85,100 Stock-based compensation plans 10,022 9,312 Deferred revenue 1,017 1,081 Operating loss carryovers — — Accrued expenses not currently deductible 12,599 12,896 Net unrealized losses 2,124 — Unrecorded tax benefits 6,049 5,106 Market value adjustments on student loans, investments and derivatives — 1,460 Other 874 953 Total deferred tax assets 142,054 115,908 Deferred tax liabilities: Fixed assets 10,475 7,150 Acquired intangible assets 5,453 5,179 Market value adjustments on student loans, investments and derivatives 3,175 — Net unrealized gains — 3,436 Federal deferred for state receivable 5,368 2,083 Student loan premiums and discounts, net 3,398 1,971 Other 285 285 Total deferred tax liabilities 28,154 20,104 Net deferred tax assets $ 113,900 $ 95,804 Included in operating loss carryovers are state net operating losses of $ 6 million and $ 19 million as of December 31, 2019 and 2018, respectively. The Company has recorded a full valuation allowance against these net operating losses. The valuation allowance is primarily attributable to deferred tax assets for state net operating losses that management believes is more likely than not to expire prior to being realized. The ultimate realization of the deferred tax assets is dependent upon the generation of future taxable income of the appropriate character (i.e., capital or ordinary) during the period in which the temporary differences become deductible. Management considers, among other things, the scheduled reversals of deferred tax liabilities and the history of positive taxable income in evaluating the realizability of the deferred tax assets. Management believes that it is more likely than not that the results of future operations will generate sufficient taxable income to realize our deferred tax assets (other than state net operating loss carryovers as outlined above). As of December 31, 2019 , the state net operating loss carryforwards will begin to expire in 2029. Accounting for Uncertainty in Income Taxes The following table summarizes changes in unrecognized tax benefits: December 31, 2019 2018 2017 Unrecognized tax benefits at beginning of year $ 52,159 $ 131,608 $ 152,581 Increases resulting from tax positions taken during a prior period 12,333 4,121 7,482 Decreases resulting from tax positions taken during a prior period (851 ) — (7,025 ) Increases resulting from tax positions taken during the current period 4,572 3,169 1,656 Decreases related to settlements with taxing authorities (8,670 ) (601 ) (3,594 ) Reductions related to the lapse of statute of limitations (6,034 ) (86,138 ) (19,492 ) Unrecognized tax benefits at end of year $ 53,509 $ 52,159 $ 131,608 As of December 31, 2019 , the gross unrecognized tax benefits are $54 million. Included in the $54 million are $48 million of unrecognized tax benefits that, if recognized, would favorably impact the effective tax rate. As a part of the Spin-Off, the Company recorded a liability related to uncertain tax positions for which it is indemnified by Navient. See Note 2, “Significant Accounting Policies — Income Taxes,” for additional details. Tax related interest and penalty expense is reported as a component of income tax expense. As of December 31, 2019 , 2018 and 2017, the total amount of income tax-related accrued interest and penalties, net of related benefit, recognized in the consolidated balance sheets was $ 12 million, $ 14 million and $ 21 million, respectively. For the years ended December 31, 2019 , 2018 and 2017 , the total amount of income tax-related accrued interest, net of related tax benefit, recognized in the consolidated statements of income was $ (1) million, $ (7) million and $ 3 million, respectively. The Company or one of its subsidiaries files income tax returns at the U.S. federal level and in most U.S. states. U.S. federal income tax returns filed for years 2014 and prior are no longer subject to examination. Various combinations of subsidiaries, tax years, and jurisdictions remain open for review, subject to statute of limitations periods (typically 3 to 4 prior years). We do not expect the resolution of open audits to have a material impact on our unrecognized tax benefits. It is reasonably possible that the uncertain tax position reserve may decrease by as much as $ 10 |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | Concentrations of Risk Our business is primarily focused on helping students and their families save, plan and pay for college. We primarily originate, service and/or collect loans made to students and their families to finance the cost of their education. We provide funding, delivery and servicing support for education loans in the United States through our Private Education Loan program. Because of this concentration in one industry, we are exposed to credit, legislative, operational, regulatory, and liquidity risks associated with the student loan industry. Concentration Risk in the Revenues Associated with Private Education Loans We compete in the Private Education Loan market with banks and other consumer lending institutions, some with strong consumer brand name recognition and greater financial resources. We compete based on our products, origination capability and customer service. To the extent our competitors compete aggressively or more effectively, we could lose market share to them or subject our existing loans to refinancing risk. Our product offerings may not prove to be profitable and may result in higher than expected losses. We are a leading provider of saving- and paying-for-college products and programs. This concentration gives us a competitive advantage in the marketplace. This concentration also creates risks in our business, particularly in light of our concentration as a Private Education Loan lender. If population demographics result in a decrease in college-age individuals, if demand for higher education decreases, if the cost of attendance of higher education decreases, if public resistance to higher education costs strengthens, or if the demand for higher education loans decreases, our consumer lending business could be negatively affected. In addition, the federal government, through the Federal Direct Student Loan Program (the “DSLP”), poses significant competition to our private credit loan products. If loan limits under the DSLP increase, DSLP loans could be more widely available to students and their families and DSLP loans could increase, resulting in further decreases in the size of the Private Education Loan market and demand for our Private Education Loan products. |
Parent Only Statements
Parent Only Statements | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Only Statements | Parent Only Statements The following parent company-only financial information should be read in conjunction with the other notes to the consolidated financial statements. The accounting policies for the parent company-only financial statements are the same as those used in the presentation of the consolidated financial statements, except that the parent company-only financial statements account for the parent company’s investments in its subsidiaries under the equity method. Parent Only Condensed Balance Sheets December 31, 2019 2018 Assets Cash and cash equivalents $ 153,508 $ 191,776 Total investments in subsidiaries (primarily Sallie Mae Bank) 3,326,578 2,963,949 Tax indemnification receivable 27,558 39,207 Due from subsidiaries, net 42,544 48,798 Other assets 2,579 2,246 Total assets $ 3,552,767 $ 3,245,976 Liabilities and Equity Liabilities Long-term borrowings $ 198,159 $ 197,348 Income taxes payable, net 11,457 37,271 Payable due to Navient 9,064 9,480 Other liabilities 22,251 29,221 Total liabilities 240,931 273,320 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: 453.6 million and 449.9 million shares issued, respectively 90,720 89,972 Additional paid-in capital 1,307,630 1,274,635 Accumulated other comprehensive income (loss) (net of tax expense (benefit) of ($3,995) and $3,436, respectively) (12,367 ) 10,623 Retained earnings 1,850,512 1,340,017 Total SLM Corporation stockholders’ equity before treasury stock 3,636,495 3,115,247 Less: Common stock held in treasury at cost: 32.5 million and 14.2 million shares, respectively (324,659 ) (142,591 ) Total equity 3,311,836 2,972,656 Total liabilities and equity $ 3,552,767 $ 3,245,976 Parent Only Condensed Statements of Income Years Ended December 31, 2019 2018 2017 Interest income $ 2,663 $ 4,693 $ 5,497 Interest expense 11,060 11,059 8,170 Net interest loss (8,397 ) (6,366 ) (2,673 ) Non-interest loss (10,856 ) (93,176 ) (33,956 ) Non-interest expenses 39,423 41,893 35,810 Loss before income tax benefit and equity in net income from subsidiaries (58,676 ) (141,435 ) (72,439 ) Income tax benefit (25,260 ) (96,170 ) (40,598 ) Equity in net income from subsidiaries (primarily Sallie Mae Bank) 611,692 532,741 320,775 Net income 578,276 487,476 288,934 Preferred stock dividends 16,837 15,640 15,714 Net income attributable to SLM Corporation common stock $ 561,439 $ 471,836 $ 273,220 Parent Only Condensed Statements of Cash Flows Years Ended December 31, 2019 2018 2017 Cash flows from operating activities: Net income $ 578,276 $ 487,476 $ 288,934 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Undistributed earnings of subsidiaries (611,692 ) (532,741 ) (320,775 ) Dividends received from Sallie Mae Bank 254,000 — — Reduction of tax indemnification receivable 11,649 92,815 31,888 Amortization of unsecured debt upfront fees 811 809 596 Decrease in investment in subsidiaries, net 2,611 9,495 1,158 Decrease in tax indemnification receivable — 35,989 59,633 Decrease (increase) in due from subsidiaries, net 6,254 (11,277 ) (5,687 ) Increase in other assets (12,999 ) (18,040 ) (24,627 ) Decrease in income taxes payable, net (25,814 ) (123,083 ) (87,983 ) Decrease in payable due to entity that is a subsidiary of Navient (416 ) (1,089 ) (593 ) (Decrease) increase in other liabilities (5,796 ) 6,807 10,205 Total adjustments (381,392 ) (540,315 ) (336,185 ) Net cash used in operating activities 196,884 (52,839 ) (47,251 ) Cash flows from investing activities: Net cash provided by investing activities — — — Cash flows from financing activities: Unsecured debt issued — — 197,000 Issuance costs for unsecured debt offering — — (1,057 ) Redemption of Series A Preferred Stock — — (165,000 ) Common stock dividends paid (51,114 ) — — Preferred stock dividends paid (16,837 ) (15,640 ) (15,714 ) Common stock repurchased (167,201 ) — — Net cash used in financing activities (235,152 ) (15,640 ) 15,229 Net decrease in cash and cash equivalents (38,268 ) (68,479 ) (32,022 ) Cash and cash equivalents at beginning of year 191,776 260,255 292,277 Cash and cash equivalents at end of year $ 153,508 $ 191,776 $ 260,255 |
Selected Quarterly Financial In
Selected Quarterly Financial Information (unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Information (unaudited) | Selected Quarterly Financial Information (unaudited) 2019 First Second Third Fourth (Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Net interest income $ 402,281 $ 396,868 $ 405,065 $ 419,101 Less: provisions for credit losses 63,790 93,375 99,526 97,558 Net interest income after provisions for credit losses 338,491 303,493 305,539 321,543 Gains (losses) on derivative and hedging activities, net 2,763 16,736 1,961 (3,635 ) Other income (loss) 13,378 2,655 15,280 (211 ) Total non-interest expenses 140,147 138,806 153,621 141,679 Income tax expense 56,296 33,801 40,701 34,666 Net income 158,189 150,277 128,458 141,352 Preferred stock dividends 4,468 4,331 4,153 3,885 Net income attributable to SLM Corporation common stock $ 153,721 $ 145,946 $ 124,305 $ 137,467 Basic earnings per common share attributable to SLM Corporation (1) $ 0.35 $ 0.34 $ 0.29 $ 0.33 Diluted earnings per common share attributable to SLM Corporation (1) $ 0.35 $ 0.34 $ 0.29 $ 0.32 Declared dividends per common share attributable to SLM Corporation $ 0.03 $ 0.06 $ — $ 0.03 ______ (1) Basic and diluted earnings per common share attributable to SLM Corporation are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted earnings per common share information may not equal annual basic and diluted earnings per common share. 2018 First Second Third Fourth (Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Net interest income $ 332,614 $ 340,950 $ 356,633 $ 382,867 Less: provisions for credit losses 53,931 63,267 70,047 57,619 Net interest income after provisions for credit losses 278,683 277,683 286,586 325,248 Gains on sales of loans, net — 2,060 — — Losses on sales of securities, net — (1,549 ) — — Gains (losses) on derivative and hedging activities, net 3,892 (5,268 ) (4,949 ) 6,238 Other income (loss) 9,642 12,295 (80,702 ) 6,446 Total non-interest expenses 124,966 135,315 150,724 145,971 Income tax expense (benefit) 40,997 40,074 (53,667 ) 44,449 Net income 126,254 109,832 103,878 147,512 Preferred stock dividends 3,397 3,920 4,124 4,199 Net income attributable to SLM Corporation common stock $ 122,857 $ 105,912 $ 99,754 $ 143,313 Basic earnings per common share attributable to SLM Corporation (1) $ 0.28 $ 0.24 $ 0.23 $ 0.33 Diluted earnings per common share attributable to SLM Corporation (1) $ 0.28 $ 0.24 $ 0.23 $ 0.33 _____ (1) Basic and diluted earnings per common share attributable to SLM Corporation are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted earnings per common share information may not equal annual basic and diluted earnings per common share. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events 2020-A Securitization On February 12, 2020, we executed our $ 636 million SMB Private Education Loan Trust 2020-A term ABS transaction, which was accounted for as a secured financing. We sold $636 million of notes to third parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $634 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.18 years and priced at a weighted average LIBOR equivalent cost of 1-month LIBOR plus 0.88 percent . Amended and Increased Secured Borrowing Facility On February 19, 2020, we amended and extended the maturity of the Secured Borrowing Facility, discussed in Note 9, “Borrowings.” The amended Secured Borrowing Facility is a $2 billion Secured Borrowing Facility (previously $750 million before the amendment), under which the full $2 billion is available for us to draw. Under the amended Secured Borrowing Facility, we incur financing costs on unused borrowing capacity and on outstandings. The amended Secured Borrowing Facility extended the revolving period, during which we may borrow, repay and reborrow funds, until February 17, 2021. The scheduled amortization period, during which amounts outstanding under the Secured Borrowing Facility must be repaid, ends on February 17, 2022 (or earlier, if certain material adverse events occur). 2020 Loan Sales On February 20, 2020, we sold $ 954 million in principal and $ 68 million |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Use of Estimates and Assumptions | Use of Estimates and Assumptions The financial reporting and accounting policies of SLM Corporation conform to generally accepted accounting principles in the United States of America (“GAAP”). The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Key accounting policies that include significant judgments and estimates include the valuation of allowance for loan losses and derivative accounting. |
Consolidation | Consolidation The consolidated financial statements include the accounts of SLM Corporation and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. We consolidate any variable interest entity (“VIE”) where we have determined we are the primary beneficiary. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents include cash held in the Federal Reserve Bank of San Francisco (the “FRB”) and commercial bank accounts, and other short-term liquid instruments with original maturities of three months or less. Fees associated with investing cash and cash equivalents are amortized into interest income using the effective interest rate method. |
Available-for-Sale Investments | Available-for-Sale Investments Investments consisted of mortgage-backed securities, Utah Housing Corporation bonds and U.S. government-sponsored enterprises securities. We record our investment purchases and sales on a trade date basis. The amortized cost of debt securities is adjusted for amortization of premiums and accretion of discounts, which are amortized using the effective interest rate method. Our investments are classified as available-for-sale and reported at fair value. Unrealized gains or losses on available-for-sale investments are recorded in equity and reported as a component of other comprehensive income (loss), net of applicable income taxes, unless a decline in the investment’s value is considered to be other-than-temporary, in which case the loss is recorded directly to earnings. Management reviews all investments at least quarterly to determine whether any impairment is other-than-temporary. Impairment is evaluated by considering several factors, including the length of time and extent to which the fair value has been less than cost, the financial condition and near-term prospects of the issuer, and the intent and ability to retain the investment to allow for an anticipated recovery in fair value. If, based on the analysis, it is determined that the impairment is other-than-temporary, the investment is written down to fair value and a loss is recognized through earnings. |
Other Investments | Other Investments We hold investments in non-marketable securities and account for these investments at cost, less impairment, plus or minus observable price changes of identical or similar securities of the same issuer. |
Loans Held for Investment | Loans Held for Investment Loans, consisting of Private Education Loans, FFELP Loans, unsecured personal loans used for non-educational purposes by borrowers (“Personal Loans”), and our suite of credit cards (“Credit Cards”) that we have the ability and intent to hold for the foreseeable future, are classified as held for investment, and are carried at amortized cost. Amortized cost includes the unamortized premiums, discounts, and capitalized origination costs and fees, all of which are amortized to interest income as discussed under “Loan Interest Income.” Loans which are held for investment are reported net of an allowance for loan losses. |
Restricted Cash | Restricted Cash Restricted cash primarily includes amounts held in student loan securitization trusts and other secured borrowings. This cash must be used to make payments related to trust obligations. Amounts on deposit in these accounts are primarily the result of timing differences between when principal and interest is collected on the trust assets and when principal and interest is paid on trust liabilities. |
Allowance for Loan Losses | Allowance for Loan Losses We maintain an allowance for loan losses at an amount sufficient to absorb probable losses incurred in our portfolios, as well as regarding future loan commitments, at the reporting date based on a projection of estimated probable credit losses incurred in the portfolio. We consider a loan to be impaired when, based on current information, a loss has been incurred and it is probable that we will not receive all contractual amounts due. When making our assessment as to whether a loan is impaired, we also take into account more than insignificant delays in payment. We generally evaluate impaired loans on an aggregate basis by grouping similar loans. We analyze our portfolios to determine the effects that the various stages of delinquency and forbearance have on borrower default behavior and ultimate charge off. We estimate the allowance for loan losses for our loan portfolios using a roll rate analysis of delinquent and current accounts. A “roll rate analysis” is a technique used to estimate the likelihood that a loan receivable may progress through the various delinquency stages and ultimately charge off. We also take into account the current and future economic environment and certain other qualitative factors when calculating the allowance for loan losses. The evaluation of the allowance for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. Our default estimates are based on a loss emergence period of one year for Private Education Loans, Personal Loans and Credit Cards and two years for FFELP Loans. A loss emergence period represents the expected period between the first occurrence of an event likely to cause a loss on a loan and the date the loan is expected to be charged off, taking into consideration account management practices that affect the timing of a loss, such as the usage of forbearance. The loss emergence period underlying the allowance for loan losses is subject to a number of assumptions. If actual future performance in delinquency, charge-offs and recoveries is significantly different than estimated, or account management assumptions or practices were to change, this could materially affect the estimate of the allowance for loan losses, the timing of when losses are recognized, and the related provision for credit losses on our consolidated statements of income. We utilize various models to determine an appropriate allowance for loan losses. Changes to model inputs are made as deemed necessary. These models are reviewed and validated periodically. Below we describe in further detail our policies and procedures for the allowance for loan losses as they relate to our Private Education Loan, Personal Loan, FFELP Loan portfolios and Credit Cards. |
Allowance for Private Education Loan Losses | Allowance for Private Education Loan Losses In determining the allowance for loan losses on our Private Education Loans that are not troubled debt restructurings (“TDRs”), we estimate the principal amount of loans that will default over the next year ( one year being the expected period between a loss trigger event and default) using a roll rate model and how much we expect to recover over the same one -year period related to the defaulted amount. The expected defaults less our expected recoveries adjusted for any qualitative factors (discussed below) equal the allowance related to this portfolio. Our historical experience indicates that, on average, the time between the date that a customer experiences a default causing event (i.e., the loss trigger event) and the date that we charge off the unrecoverable portion of that loan is one year. In estimating both the non-TDR and TDR allowance amounts, we start with historical experience of customer delinquency and default behavior. We make judgments about which historical period to start with and then make further judgments about whether that historical experience is representative of future expectations and whether additional adjustments may be needed to those historical default rates. We also take certain other qualitative factors into consideration when calculating the allowance for loan losses. These qualitative factors include, but are not limited to, changes in the economic environment, changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off and recovery practices not already included in the analysis, and the effect of other external factors, such as legal and regulatory requirements, on the level of estimated credit losses. Certain Private Education Loans do not require borrowers to begin repayment until at least six months after they have graduated or otherwise left school. Consequently, the loss estimates for these loans is generally low while the borrower is in school. At December 31, 2019 and 2018 , 25 percent and 26 percent , respectively, of the principal balance in the Private Education Loan portfolio was related to borrowers who are in an in-school (fully deferred), grace, or deferment status and not required to make payments. As this population of borrowers leaves school, they will be required to begin payments on their loans, and the allowance for losses may change accordingly. Similar to the rules governing FFELP payment requirements, our collection policies allow for periods of nonpayment for borrowers requesting additional payment grace periods upon leaving school or experiencing temporary difficulty meeting payment obligations. This is referred to as forbearance status and is considered separately in the allowance for loan losses. The loss emergence period is in alignment with the typical collection cycle and takes into account these periods of nonpayment. As part of concluding on the adequacy of the allowance for loan losses, we review key allowance and loan metrics. The most relevant of these metrics considered are the allowance coverage of net charge-offs ratio; the allowance as a percentage of ending total loans and of ending loans in repayment; and delinquency and forbearance percentages. We consider a loan to be delinquent 31 days after the last payment was contractually due. We use a model to estimate the amount of uncollectible accrued interest on Private Education Loans and reserve for that amount against current period interest income. Our non-TDR allowance for loan losses is estimated using an analysis of delinquent and current accounts. Our roll rate model is used to estimate the likelihood that a loan receivable may progress through the various delinquency stages and ultimately charge off. Once a charge-off forecast is estimated, a recovery assumption is layered on top. In estimating recoveries, we use both estimates of what we would receive from the sale of defaulted loans as well as historical borrower payment behavior to estimate the timing and amount of future recoveries on charged-off loans. The roll rate analysis model is based upon actual experience using the 120 day charge-off default aversion strategies. Once the quantitative calculation is performed, we review the adequacy of the allowance for loan losses and determine if qualitative adjustments need to be considered. We collect on defaulted loans through a mix of in-house, third-party collectors and sales to third-parties. For December 31, 2019, 2018 and 2017, we used both an estimate of recovery rates from in-house collections as well as expectations of future sales of defaulted loans to estimate the timing and amount of future recoveries on charged-off loans. In connection with the Spin-Off, we retained the right to require Navient to purchase certain 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 . |
Allowance for Personal Loans | Allowance for Personal Loans We maintain an allowance for Personal Loan losses at an amount sufficient to absorb losses estimated and viewed at the reporting date as probable credit losses to be incurred in the portfolio. In determining the allowance for loan losses on our Personal Loan portfolio that are not TDRs, we estimate the principal amount of the loans that will default over the next twelve months (twelve months being the expected period between a loss trigger event and default) and how much we expect to recover over the same twelve-month period related to the defaulted amounts. The expected defaults less our expected recoveries adjusted for any qualitative factors equal the allowance related to this portfolio. At December 31, 2019 and 2018, there were no Personal Loans classified as TDRs. Troubled Debt Restructurings Separately, for our TDR portfolio, we estimate an allowance amount sufficient to cover life-of-loan expected losses through an impairment calculation based on the difference between the loan’s basis and the present value of expected future cash flows (which would include life-of-loan default and recovery assumptions) discounted at the loan’s original effective interest rate. Our TDR portfolio is comprised mostly of loans with interest rate reductions and loans with forbearance usage greater than three months during a 24-month period, as further described below. 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 the loan. These modifications generally take the form of a forbearance, a temporary interest rate reduction or an extended repayment plan. When we give a borrower facing financial difficulty an interest rate reduction, we temporarily reduce the rate (currently to 4.0 percent ) for a two-year period and, in the vast majority of cases, permanently extend the final maturity of the loan. The combination of these two loan term changes helps reduce the monthly payment due from the borrower and increases the likelihood the borrower will remain current during the interest rate modification period as well as when the loan returns to its original contractual interest rate. Until the fourth quarter of 2017, we generally considered a loan that was in full principal and interest repayment status which had received more than three months of forbearance in a 24 -month period to be a TDR; however, during the first nine months after a loan had entered full principal and interest repayment status, we did not count up to the first six months of forbearance received during that period against the three-month policy limit. We now classify a loan as a TDR due to forbearance using a two-step process. The first step is to identify a loan that was in full principal and interest repayment status and received more than three months of forbearance in a 24-month period; however, during the first nine months after a loan had entered full principal and interest repayment status, we do not count up to the first six months of forbearance received during that period against the three-month policy limit. The second step is to evaluate the creditworthiness of the loan by examining its most recent refreshed FICO score. Loans that have met the criteria in the first test and have a FICO score above a certain threshold (based on the most recent quarterly FICO score refresh) will not be classified as TDRs. Loans that have met the criteria in the first test and have a FICO score under the threshold (based on the most recent quarterly FICO score refresh) will be classified as TDRs. A loan also becomes a TDR when it is modified to reduce the interest rate on the loan (regardless of when such modification occurs and/or whether such interest rate reduction is temporary). Once a loan qualifies for TDR status, it remains a TDR for allowance purposes for the remainder of its life. As of December 31, 2019 and 2018 , approximately 50 percent and 57 percent, respectively, of TDRs were classified as such due to their forbearance status. Key Credit Quality Indicators We determine the collectability of our Private Education Loan portfolio by evaluating certain risk characteristics. We consider credit scores at original approval and periodically refreshed/updated credit scores through the loan’s term, existence of a cosigner, loan status and loan seasoning as the key credit quality indicators because they have the most significant effect on the determination of the adequacy of our allowance for loan losses. Credit scores are an indicator of the creditworthiness of borrowers and the higher the credit scores the more likely it is the borrowers will be able to make all of their contractual payments. Loan status affects the credit risk because a past due loan is more likely to result in a credit loss than a current loan. Additionally, loans in the deferred payment status have different credit risk profiles compared with those in current pay status. Loan seasoning affects credit risk because a loan with a history of making payments generally has a lower incidence of default than a loan with a history of making infrequent or no payments. The existence of a cosigner lowers the likelihood of default as well. We monitor and update these credit quality indicators in the analysis of the adequacy of our allowance for loan losses on a quarterly basis. For Personal Loans, we consider FICO scores at original approval, seasoning and loan status to be our key credit quality indicators for the same reasons discussed above. For Credit Cards, we consider FICO scores at original approval to be our key credit quality indicator. |
Allowance for FFELP Loan Losses | Allowance for FFELP Loan Losses FFELP Loans are insured as to their principal and accrued interest in the event of default subject to a risk-sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement on all qualifying default claims. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement. The allowance for FFELP Loan losses uses historical experience of customer default behavior and a two -year loss emergence period to estimate the credit losses incurred in the loan portfolio at the reporting date. We apply the default rate projections, net of applicable risk sharing, to each category for the current period to perform our quantitative calculation. Once the quantitative calculation is performed, we review the adequacy of the allowance for loan losses and determine if qualitative adjustments need to be considered. |
Allowance for Credit Cards | Allowance for Credit Cards The allowance for Credit Card losses is management’s estimate of credit losses inherent in the Credit Card portfolio at the balance sheet date. The allowance for Credit Card losses uses historical loss rates for accounts with similar characteristics (based on industry data) as a reasonable basis to estimate future losses. At December 31, 2019 , there were no Credit Cards classified as TDRs. |
Deposits | Deposits Our retail deposit accounts are principally certificates of deposit (“CDs”), money market deposit accounts (“MMDAs”) and high-yield savings (“HYS”) accounts. CDs are accounts that have a stipulated maturity and interest rate. Retail CDs may be withdrawn early, but a penalty is assessed. MMDA and HYS accounts are both interest and non-interest bearing accounts that have no maturity or expiration date. For retail MMDA and HYS accounts, the depositor may be required to give written notice of any intended withdrawal not less than seven days before the withdrawal is made. The Bank also includes brokered CDs in its funding base. Early withdrawal of brokered CDs is prohibited (except in the case of death or legal incapacity). Other deposit accounts include large interest-bearing omnibus accounts deposited in the Bank by commercial entities having custodial responsibilities for many underlying accounts. These omnibus accounts may be structured with or without fixed maturities, and may have fixed or variable interest rates. |
Upromise member accounts | Upromise Member Accounts |
Fair Value Measurement | Fair Value Measurement We use estimates of fair value in applying various accounting standards for our financial statements. Fair value measurements are used in one of four ways: • In the consolidated balance sheet with changes in fair value recorded in the consolidated statement of income; • In the consolidated balance sheet with changes in fair value recorded in the accumulated other comprehensive income section of the consolidated statement of changes in equity; • In the consolidated balance sheet for instruments carried at lower of cost or fair value with impairment charges recorded in the consolidated statement of income; and • In the notes to the consolidated financial statements. Fair value is defined as the price to sell an asset or transfer a liability in an orderly transaction between willing and able market participants. In general, our policy in estimating fair value is to first look at observable market prices for identical assets and liabilities in active markets, where available. When these are not available, other inputs are used to model fair value such as prices of similar instruments, yield curves, volatilities, prepayment speeds, default rates and credit spreads (including for our liabilities), relying first on observable data from active markets. Depending on current market conditions, additional adjustments to fair value may be based on factors such as liquidity, credit, and bid/offer spreads. Transaction costs are not included in the determination of fair value. When possible, we seek to validate the model’s output to market transactions. Depending on the availability of observable inputs and prices, different valuation models could produce materially different fair value estimates. The values presented may not represent future fair values and may not be realizable. We categorize our fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. Classification is based on the lowest level of input that is significant to the fair value of the instrument. The three levels are as follows: • Level 1 — Quoted prices (unadjusted) in active markets for identical assets or liabilities that we have the ability to access at the measurement date. The types of financial instruments included in level 1 are highly liquid instruments with quoted prices. • Level 2 — Inputs from active markets, other than quoted prices for identical instruments, are used to determine fair value. Significant inputs are directly observable from active markets for substantially the full term of the asset or liability being valued. • Level 3 — Pricing inputs significant to the valuation are unobservable. Inputs are developed based on the best information available. However, significant judgment is required by us in developing the inputs. |
Loan Interest Income | Loan Interest Income For all loans, including impaired loans, classified as held for investment, we recognize interest income as earned, adjusted for the amortization of deferred direct origination and acquisition costs. This adjustment is recognized based upon the expected yield of the loan over its life after giving effect to prepayments and extensions. We consider our constant prepayment rate (“CPR”) estimates a significant accounting assumption used to measure the expected prepayment activity in our education loan portfolio. The estimates are based on a number of factors such as historical prepayment rates for loans with similar loan characteristics, assumptions about portfolio composition and loan terms, and the prepayment curve’s tendency to follow a ramp pattern (i.e., the prepayment rate typically increases during the in-school and early repayment periods, then stabilizes). The CPR measures the expected prepayment activity over the life of the loan and is applied as a flat-rate input assumption when used in forecasting. Additionally, interest earned on education loans reflects potential non-payment adjustments in accordance with our uncollectible interest recognition policy as discussed further in “Allowance for Loan Losses” of this Note 2. Because of this, we do not place loans in nonaccrual status prior to charge-off. We do not amortize any adjustments to the basis of education loans when they are classified as held-for-sale. Our CPR estimates include the effect of voluntary prepayments and consolidation (if the loans are consolidated to third parties), both of which shorten the lives of loans. CPR estimates also consider the utilization of deferment, forbearance, and extended repayment plans, which lengthen the lives of loans. We regularly evaluate the assumptions used to estimate the CPRs. In instances where there are changes to the assumptions, amortization of deferred direct origination and acquisition costs is adjusted on a cumulative basis to reflect the change since the origination or purchase of the loan. For the year ended December 31, 2019 , our CPR for Private Education Loans was 6.92 percent , compared with a CPR of 6.83 percent for the year ended December 31, 2018. We also pay to the U.S. Department of Education (the “DOE”) an annual 105 basis point Consolidation Loan Rebate Fee on FFELP consolidation loans, which is netted against loan interest income. Additionally, interest earned on education loans reflects potential non-payment adjustments in accordance with our uncollectible interest recognition policy. We do not amortize any adjustments to the basis of loans when they are classified as held-for-sale. We recognize certain fee income (primarily late fees) on education loans when earned according to the contractual provisions of the promissory notes, as well as our expectation of collectability. Fee income is recorded when earned in “other non-interest income” in the accompanying consolidated statements of income. |
Interest Expense | Interest Expense Interest expense is based upon contractual interest rates adjusted for the amortization of issuance costs. We incur interest expense on interest bearing deposits comprised of non-maturity savings deposits, brokered and retail CDs, and brokered and retail MMDAs, as well as on unsecured and secured financings. Interest expense is recognized when amounts are contractually due to deposit and debt holders and is adjusted for net payments/receipts related to interest rate swap agreements that qualify and are designated hedges of interest bearing liabilities. Interest expense also includes the amortization of deferred gains and losses on closed hedge transactions that qualified as hedges. Amortization of debt issuance costs, premiums, discounts and terminated hedge-basis adjustments are recognized using the effective interest rate method. We incur certain fees related to our Private Education Loan multi-lender secured borrowing facility (the “Secured Borrowing Facility,” which was previously called the asset-backed commercial paper facility or ABCP Facility), including an unused Secured Borrowing Facility fee, and also incur fees related to our term asset-backed securities (“ABS”). These fees are included in interest expense. Refer to Note 8, “Deposits,” and Note 9, “Borrowings” for further details of our interest bearing liabilities. |
Gains on Sale of Loans, Net | Gains on Sale of Loans, Net We may participate and sell loans to third-parties and affiliates, including entities that were related parties prior to the Spin-Off. These sales may occur through whole loan sales or securitization transactions that qualify for sales treatment. If a transfer of loans qualifies as a sale, we derecognize the loan and recognize a gain or loss as the difference between the carry basis of the loan sold and liabilities retained and the compensation received. We recognize the results of a transfer of loans based upon the settlement date of the transaction. These loans were initially recorded as held for investment and were transferred to held-for-sale immediately prior to sale or securitization. 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 . See Note 15, “Arrangements with Navient Corporation,” for further discussion regarding loan purchase agreements. We did not sell loans in 2019 and 2017, other than Split Loans. |
Other Income | Other Income Our Upromise subsidiary has a number of programs that encourage consumers to save for the cost of college education. We have established a consumer savings network, which is designed to promote college savings by consumers who are members of this program by encouraging them to purchase goods and services from the merchants that participate in the program. Participating merchants generally pay Upromise fees based on member purchase volume, either online or in stores, depending on the contractual arrangement with the merchant. We recognize revenue as marketing and administrative services are rendered, based upon contractually determined rates and member purchase volumes. In May 2014, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” The guidance in this ASU supersedes existing revenue recognition requirements in Topic 605, Revenue Recognition, including an assortment of transaction-specific and industry-specific rules. We adopted the new revenue recognition model on January 1, 2018. This ASU establishes a principles-based model under which revenue from a contract is allocated to the distinct performance obligations within the contract and recognized in income as each performance obligation is satisfied. ASU Topic 606 does not apply to rights or obligations associated with financial instruments (for example, interest income from loans or investments, or interest expense on debt), and therefore our net interest income should not be affected. Certain of our fee income related to our Upromise rewards business is within the scope of these rules. Management has concluded that timing and measurement of fee income related to our Upromise rewards business has remained substantially unchanged under the new standard. This conclusion covers the vast majority of our revenue that is within the scope of the standard. The adoption of this standard did not materially affect our consolidated financial statements in 2018. In March 2016, the FASB issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606): Principal versus Agent Considerations (Reporting Revenue Gross versus Net).” The guidance in this ASU provides clarification on the principal versus agent concept in relation to revenue recognition guidance issued as part of ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606).” Topic 606 requires a company to determine whether it is a principal or an agent in a transaction in which another party is involved in providing goods or services to a customer by evaluating the nature of its promise to the customer. ASU No. 2016-08 provides clarification for identifying the good, service or right being transferred in a revenue transaction and identifies the principal as the party that controls the good, service or right prior to its transfer to the customer. The ASU provides further clarity on how to evaluate control in this context. We adopted the standard on January 1, 2018. The adoption did not result in different conclusions regarding our revenue arrangements that involve a principal-agent relationship. Also included in other income are late fees on both Private Education Loans and FFELP Loans, which we recognize when the cash has been received, fees related to our credit card affinity program, income for servicing private student loans for third-parties and changes to our tax indemnification receivable from Navient. |
Securitization Accounting | Securitization Accounting Our securitization transactions use a two-step structure with a special purpose entity VIE that legally isolates the transferred assets from us in the event of bankruptcy or receivership. Transactions receiving sale treatment are also structured to ensure that the holders of the beneficial interests issued are not constrained from pledging or exchanging their interests, and that we do not maintain effective control over the transferred assets. If these criteria are not met, then the transaction is accounted for as an on-balance sheet secured borrowing. If a securitization qualifies as a sale, we then assess whether we are the primary beneficiary of the securitization trust and are required to consolidate such trust. We are considered the primary beneficiary if we have both: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. There can be considerable judgment as it relates to determining the primary beneficiary of the VIEs. There are no “bright line” tests. Rather, the assessment of who has the power to direct the activities of the VIE that most significantly affect the VIE’s economic performance and who has the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE can be very qualitative and judgmental in nature. If we are the primary beneficiary, then no gain or loss is recognized. We have determined that as the servicer of Sallie Mae securitization trusts, we meet the first primary beneficiary criterion because we have the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance. Irrespective of whether a securitization receives sale or on-balance sheet treatment, our continuing involvement with our securitization trusts is generally limited to: • Owning the equity certificates of certain trusts; • The servicing of the student loan assets within the securitization trusts, on both a pre- and post-default basis; • Our acting as administrator for the securitization transactions we sponsored; • Our responsibilities relative to representation and warranty violations; and • The option to exercise the clean-up call and purchase the student loans from the trust when the pool balance is 10 percent or less of the original pool balance. In 2019 and 2018, we executed several secured financing transactions. Based upon our relationships with these securitizations, we believe the consolidation assessment is straightforward. We consolidated our secured financing transactions because either we did not meet the accounting criterion for sales treatment or we determined we were the primary beneficiary of the VIE because we retained (a) the residual interest in the securitization and therefore had the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE, as well as (b) the power to direct the activities of the VIE in our role as servicer. The investors in our securitization trusts have no recourse to our other assets should there be a failure of the trust to pay when due. Generally, the only recourse the securitization trusts have to us is in the event we breach a seller representation or warranty or our duties as master servicer and servicer, in which event we are obligated to repurchase the related loans from the trust. |
Derivative Accounting | Derivative Accounting We account for our derivatives, consisting of interest rate swaps, at fair value on the consolidated balance sheets as either an asset or liability. Derivative positions are recorded as net positions by counterparty based on master netting arrangements (see Note 10, “Derivative Financial Instruments”), exclusive of accrued interest and cash collateral held or pledged. 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 (the “CME”) and the London Clearing House (the “LCH”). All variation margin payments on derivatives cleared through the CME and LCH are accounted for as legal settlement. As of December 31, 2019 , $9.4 billion notional of our derivative contracts were cleared on the CME and $0.5 billion were cleared on the LCH. The derivative contracts cleared through the CME and LCH represent 95.0 percent and 5.0 percent , respectively, of our total notional derivative contracts of $9.9 billion at December 31, 2019 . 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. The amount of variation margin included as settlement as of December 31, 2019 was $ (107) million and $ 8 million for the CME and LCH, respectively. Changes in fair value for derivatives not designated as hedging instruments will be presented as realized gains (losses). We determine the fair value for our derivative contracts primarily using pricing models that consider current market conditions and the contractual terms of the derivative contracts. These pricing models consider interest rates, time value, forward interest rate curves, and volatility factors. Inputs are generally from active financial markets. The accounting for derivative instruments requires that every derivative instrument, including certain derivative instruments embedded in other contracts, be recorded on the balance sheet as either an asset or liability measured at fair value. Our derivative instruments are classified and accounted for by us as fair value hedges, cash flow hedges, and trading hedges. On July 1, 2018, we adopted the FASB’s ASU No. 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities.” Under the standard, we are no longer required to separately measure and report hedge ineffectiveness, which was previously recorded in “gains (losses) on derivatives and hedging activities, net” in our consolidated statements of income. In accordance with the standard, certain provisions were required to be applied on a modified retrospective basis, which requires a cumulative effect adjustment to accumulated other comprehensive income with a corresponding adjustment to retained earnings as of the beginning of the fiscal year of adoption, or January 1, 2018 in our case. As a result of the cumulative effect of applying the new hedging standard to our fair value hedges on July 1, 2018, we recorded a $2 million basis increase to our hedged deposit balances with a corresponding increase to retained earnings of approximately $0.8 million , net of taxes and a $3 million loss to “gains (losses) on derivatives and hedging activities, net” in our consolidated statements of income to adjust the life-to-date ineffectiveness. To reflect the adoption of the new hedging standard on our cash flow hedging relationships at July 1, 2018, we recorded a $0.2 million , net of taxes decrease to retained earnings and a corresponding $0.3 million increase to accumulated other comprehensive income. Each derivative is designated to a specific (or pool of) liability(ies) on the consolidated balance sheets, and is designated as either a “fair value” hedge or a “cash flow” hedge. Fair value hedges are designed to hedge our exposure to the changes in fair value of a fixed-rate liability. For effective fair value hedges, both the hedge and the hedged item (for the risk being hedged) are recorded at fair value with any difference reflecting ineffectiveness recorded immediately in the consolidated statements of income. Cash flow hedges are designed to hedge our exposure to variability in cash flows related to variable-rate deposits. The assessment of the hedge’s effectiveness is performed at inception and on an ongoing basis, using regression testing. For hedges of a pool of liabilities, tests are performed to demonstrate the similarity of individual instruments of the pool. When it is determined that a derivative is not currently an effective hedge, ineffectiveness is recognized for the full change in fair value of the derivative with no offsetting amount from the hedged item since the last time it was effective. If it is also determined the hedge will not be effective in the future, we discontinue the hedge accounting prospectively and begin amortization of any basis adjustments that exist related to the hedged item. |
Stock-Based Compensation | Stock-Based Compensation We recognize stock-based compensation cost in our consolidated statements of income using the fair value method. Under this method, we determine the fair value of the stock-based compensation at the time of the grant and recognize the resulting compensation expense over the vesting period of the stock-based grant. We do not apply a forfeiture rate to our stock-based compensation expense, but rather record forfeitures when they occur. We record all excess tax benefits/deficiencies related to the settlement of employee stock-based compensation to the income tax expense line item on our consolidated statements of income. In March 2016, the FASB issued ASU No. 2016-09, “Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting,” which amended the stock compensation guidance. The amendments simplified the accounting for the taxes related to stock-based compensation, including adjustments to how excess tax benefits and a company’s payments for tax withholdings should be classified. The standard became effective for fiscal periods beginning after December 15, 2016, with early adoption permitted. We adopted this standard effective January 1, 2017 and recorded an $8.5 million benefit in income tax expense in 2017 because of this standard. We previously recorded the excess tax benefits/deficiencies to the additional paid-in capital line item on our consolidated balance sheets. Under the guidance, we also elected the option to no longer apply a forfeiture rate to our stock-based compensation expense, but to record forfeitures when they occur, and, as a result, under a modified retrospective basis we recorded a cumulative effect of the new stock compensation standard in total equity of $0.2 million , net of tax, in the first quarter of 2017. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability approach, which requires the recognition of deferred tax liabilities and assets for the expected future tax consequences of temporary differences between the carrying amounts and tax basis of our assets and liabilities. To the extent tax laws change, deferred tax assets and liabilities are adjusted in the period that the tax change is enacted. On December 22, 2017, President Trump signed into law the Tax Cuts and Jobs Act of 2017 (the “Tax Act”), which lowered federal corporate income tax rates from 35 percent to 21 percent, beginning January 1, 2018. Because the Tax Act was enacted during the fourth-quarter 2017, we were required to reflect the application of the lower tax rate in future years to our deferred assets, liabilities and indemnification receivables. We recognized additional discrete tax expense of $15 million for the year ended December 31, 2017, primarily due to the remeasurement of our deferred tax assets and liabilities following the enactment of the Tax Act. At December 31, 2019, our accounting for the Tax Act is complete under the SEC’s Staff Accounting Bulletin No. 118. 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 Act. 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 was 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. “Income tax expense (benefit)” includes (i) deferred tax expense (benefit), which represents the net change in the deferred tax asset or liability balance during the year when applicable, and (ii) current tax expense (benefit), which represents the amount of tax currently payable to or receivable from a tax authority plus amounts accrued for unrecognized tax benefits. Income tax expense (benefit) excludes the tax effects related to adjustments recorded in equity. An uncertain tax position is recognized only if it is more likely than not to be sustained upon examination based on the technical merits of the position. The amount of tax benefit recognized in the consolidated financial statements is the largest amount of benefit that is more than fifty percent likely of being sustained upon ultimate settlement of the uncertain tax position. We recognize interest and penalties related to unrecognized tax benefits in income tax expense (benefit). In connection with the Spin-Off, we recorded a liability related to uncertain tax positions of $ 27 million for which we are indemnified by Navient. If there is an adjustment to the indemnified uncertain tax liability, an offsetting adjustment to the indemnification receivable will be recorded as pre-tax adjustment to other income in the income statement. As of the date of the Spin-Off on April 30, 2014, we recorded a liability of $ 310 million ($ 283 million related to deferred taxes and $ 27 million related to uncertain tax positions) and an indemnification receivable of $ 291 million ($ 310 million less the $ 19 million discount). As of December 31, 2019 , with respect to those amounts recorded at the Spin-Off, the remaining liability balance is $ 15 million (related to uncertain tax positions) and the remaining indemnification receivable balance is $ 15 million (related to uncertain tax positions). |
Reclassifications | Reclassifications Certain reclassifications have been made to the balances as of and for the years ended December 31, 2018 and 2017, to be consistent with classifications adopted for 2019 , which had no effect on net income, total assets or total liabilities. |
Recently Issued but Not Yet Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements ASU No. 2016-02, “Leases” In February 2016, the FASB issued ASU No. 2016-02, “Leases,” a comprehensive new lease standard which superseded previous lease guidance. The standard requires a lessee to recognize in its balance sheet assets and liabilities related to long-term leases that were classified as operating leases under previous guidance. An asset will be recognized related to the right to use the underlying asset and a liability will be recognized related to the obligation to make lease payments over the term of the lease. The standard also requires expanded disclosures surrounding leases. The standard is effective for fiscal periods beginning after December 15, 2018, and requires modified retrospective adoption, with early adoption permitted. We adopted this guidance on January 1, 2019. In doing so, we identified and evaluated the related lease contracts and revised our controls and processes to address the lease standard. The adoption of this guidance resulted in the recognition of less than $34 million of right of use asset and lease liability, which did not have a material impact on our consolidated financial statements. Recently Issued but Not Yet Adopted Accounting Pronouncements ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” as amended by ASU No. 2019-04, “Codification Improvements to Topic 326, Financial Instruments - Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments,” which will become effective for us on January 1, 2020 (“CECL”). This ASU eliminates the current accounting guidance for the recognition of credit impairment. Under the new guidance, for all loans carried at amortized cost, upon loan origination we will be required to measure our allowance for credit losses based on our estimate of all current expected credit losses over the remaining contractual term of the assets. Updates to that estimate each period will be recorded through provision expense. The estimate of credit losses must be based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU does not mandate the use of any specific method for estimating credit loss, permitting companies to use judgment in selecting the approach that is most appropriate in their circumstances. Upon adoption, a cumulative effect adjustment to retained earnings will be recorded as of the beginning of the first reporting period in which the guidance is effective in an amount necessary to adjust the allowance for credit losses to equal the current estimate of expected losses on financial assets held at that date. We have evaluated the standard and completed our implementation efforts. We have identified the loss forecasting approach and have built the loss models for our Private Education Loans, Personal Loans acquired from third-parties and those originated organically, and for prepayments. For our Private Education Loan and Personal Loan portfolios, we will be using the discounted cash flow approach to calculate our current expected credit losses. We will estimate the CECL allowance using relevant available information, from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. We have determined that, for modeling current expected credit losses, we can reasonably estimate expected losses that incorporate the current and forecasted economic conditions over a two-year period, after which the model will immediately revert to our long-term historic loss rates. During the third and fourth quarters of 2019, we performed monthly dry runs of our CECL solution to test the end-to-end implementation of the new solution. The loss and other models that will be used in our CECL solution have been validated and approved to be used for the adoption of CECL. In the fourth quarter of 2019, we finalized and implemented the required governance and internal controls, completed our loss models for both Personal Loans we originated and Credit Card receivables, and completed the testing and validation for all the models to be used to implement CECL. On January 1, 2020, we adopted CECL using the modified retrospective method and it will have a material impact on how we record and report our financial condition and results of operations and on regulatory capital. Our first quarter 2020 financial results will reflect a transition adjustment that we estimate will increase the allowance for loan losses by approximately $1.1 billion , increase the liability representing our off-balance sheet exposure for unfunded commitments by approximately $115 million and increase our deferred tax asset by approximately $300 million , resulting in a cumulative effect adjustment that reduces retained earnings by approximately $950 million |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of securities available-for-sale | The amortized cost and fair value of securities available for sale are as follows: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Mortgage-backed securities $ 215,888 $ 1,895 $ (658 ) $ 217,125 Utah Housing Corporation bonds 19,474 145 (83 ) 19,536 U.S. government-sponsored enterprises 250,394 635 (21 ) 251,008 Total $ 485,756 $ 2,675 $ (762 ) $ 487,669 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available for sale: Mortgage-backed securities $ 159,937 $ 155 $ (5,517 ) $ 154,575 Utah Housing Corporation bonds 22,388 23 (741 ) 21,670 Total $ 182,325 $ 178 $ (6,258 ) $ 176,245 |
Available-for-sale securities, continuous unrealized loss position, fair value | The following table summarizes the amount of gross unrealized losses for our available-for-sale securities and the estimated fair value for securities having gross unrealized loss positions, 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 December 31, 2019: Mortgage-backed securities $ (218 ) $ 25,624 $ (440 ) $ 42,448 $ (658 ) $ 68,072 Utah Housing Corporation bonds — — (83 ) 11,097 (83 ) 11,097 U.S. government-sponsored enterprises (21 ) 14,977 — — (21 ) 14,977 Total $ (239 ) $ 40,601 $ (523 ) $ 53,545 $ (762 ) $ 94,146 As of December 31, 2018: Mortgage-backed securities $ (228 ) $ 16,948 $ (5,289 ) $ 125,537 $ (5,517 ) $ 142,485 Utah Housing Corporation bonds — — (741 ) 16,647 (741 ) 16,647 Total $ (228 ) $ 16,948 $ (6,030 ) $ 142,184 $ (6,258 ) $ 159,132 |
Amortized cost and fair value of securities by contractual maturities | As of December 31, 2019 , 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 2020 $ 77,240 $ 77,385 2021 138,157 138,640 2022 34,997 34,983 2038 176 191 2039 2,597 2,778 2042 7,196 7,050 2043 11,661 11,813 2044 17,300 17,487 2045 18,280 18,332 2046 28,892 28,822 2047 45,411 45,353 2048 12,154 12,478 2049 91,695 92,357 Total $ 485,756 $ 487,669 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans held for investment | Loans held for investment are summarized as follows: December 31, 2019 2018 Private Education Loans: Fixed-rate $ 9,830,301 $ 6,759,019 Variable-rate 13,359,290 13,745,446 Total Private Education Loans, gross 23,189,591 20,504,465 Deferred origination costs and unamortized premium/ (discount) 81,224 68,321 Allowance for loan losses (374,300 ) (277,943 ) Total Private Education Loans, net 22,896,515 20,294,843 FFELP Loans 783,306 846,487 Deferred origination costs and unamortized premium/ (discount) 2,143 2,379 Allowance for loan losses (1,633 ) (977 ) Total FFELP Loans, net 783,816 847,889 Personal Loans (fixed-rate) 1,049,007 1,190,091 Deferred origination costs and unamortized premium/ (discount) 513 297 Allowance for loan losses (65,877 ) (62,201 ) Total Personal Loans, net 983,643 1,128,187 Credit Cards (fixed-rate) 3,884 — Deferred origination costs and unamortized premium/ (discount) 36 — Allowance for loan losses (102 ) — Total Credit Cards, net 3,818 — Loans held for investment, net $ 24,667,792 $ 22,270,919 The estimated weighted average life of education loans in our portfolio was approximately 5.4 years at both December 31, 2019 and 2018 , respectively. The average balance and the respective weighted average interest rates of loans in our portfolio are summarized as follows: Years Ended December 31, 2019 2018 2017 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 22,225,473 9.32 % $ 19,282,500 9.10 % $ 16,176,351 8.43 % FFELP Loans 814,198 4.79 888,301 4.57 970,738 3.91 Personal Loans 1,141,503 12.09 900,152 11.08 112,644 9.90 Total portfolio $ 24,181,174 $ 21,070,953 $ 17,259,733 |
Loans held for investment by Region | Loans Held for Investment by Region At December 31, 2019 , 39.4 percent of total education loans were concentrated in the following states: 2019 New York 10.1 % California 9.4 Pennsylvania 8.4 New Jersey 6.6 Texas 4.9 39.4 % At December 31, 2018 , 39.9 percent of total education loans were concentrated in the following states: 2018 New York 10.3 % California 9.3 Pennsylvania 8.5 New Jersey 6.8 Illinois 5.0 39.9 % No other state had a concentration of total education loans in excess of 5 percent of the aggregate outstanding education loans held for investment. |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Allowance for credit losses and recorded investments in loans | Allowance for Loan Losses Metrics Allowance for Loan Losses Year Ended December 31, 2019 FFELP Loans Private Education Loans Personal Loans Credit Cards Total Allowance for Loan Losses Beginning balance $ 977 $ 277,943 $ 62,201 $ — $ 341,121 Total provision 1,478 279,570 72,783 103 353,934 Net charge-offs: Charge-offs (822 ) (208,978 ) (74,313 ) (1 ) (284,114 ) Recoveries — 25,765 5,206 — 30,971 Net charge-offs (822 ) (183,213 ) (69,107 ) (1 ) (253,143 ) Ending Balance $ 1,633 $ 374,300 $ 65,877 $ 102 $ 441,912 Allowance: Ending balance: individually evaluated for impairment $ — $ 186,697 $ — $ — $ 186,697 Ending balance: collectively evaluated for impairment $ 1,633 $ 187,603 $ 65,877 $ 102 $ 255,215 Loans: Ending balance: individually evaluated for impairment $ — $ 1,581,966 $ — $ — $ 1,581,966 Ending balance: collectively evaluated for impairment $ 783,306 $ 21,607,625 $ 1,049,007 $ 3,884 $ 23,443,822 Net charge-offs as a percentage of average loans in repayment (1) 0.13 % 1.17 % 6.07 % 0.13 % Allowance as a percentage of the ending total loan balance 0.21 % 1.61 % 6.28 % 2.63 % Allowance as a percentage of the ending loans in repayment (1) 0.26 % 2.23 % 6.28 % 2.63 % Allowance coverage of net charge-offs 1.99 2.04 0.95 102.00 Ending total loans, gross $ 783,306 $ 23,189,591 $ 1,049,007 $ 3,884 Average loans in repayment (1) $ 631,029 $ 15,605,927 $ 1,138,887 $ 786 Ending loans in repayment (1) $ 617,646 $ 16,787,670 $ 1,049,007 $ 3,884 ____________ (1) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Allowance for Loan Losses Year Ended December 31, 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 980 169,287 74,317 244,584 Net charge-offs: Charge-offs (1,135 ) (154,701 ) (19,690 ) (175,526 ) Recoveries — 20,858 946 21,804 Net charge-offs (1,135 ) (133,843 ) (18,744 ) (153,722 ) Loan sales (1) — (1,216 ) — (1,216 ) Ending Balance $ 977 $ 277,943 $ 62,201 $ 341,121 Allowance: Ending balance: individually evaluated for impairment $ — $ 120,110 $ — $ 120,110 Ending balance: collectively evaluated for impairment $ 977 $ 157,833 $ 62,201 $ 221,011 Loans: Ending balance: individually evaluated for impairment $ — $ 1,257,856 $ — $ 1,257,856 Ending balance: collectively evaluated for impairment $ 846,487 $ 19,246,609 $ 1,190,091 $ 21,283,187 Net charge-offs as a percentage of average loans in repayment (2) 0.16 % 1.01 % 2.11 % Allowance as a percentage of the ending total loan balance 0.12 % 1.36 % 5.23 % Allowance as a percentage of the ending loans in repayment (2) 0.15 % 1.90 % 5.23 % Allowance coverage of net charge-offs 0.86 2.08 3.32 Ending total loans, gross $ 846,487 $ 20,504,465 $ 1,190,091 Average loans in repayment (2) $ 691,406 $ 13,303,801 $ 889,348 Ending loans in repayment (2) $ 665,807 $ 14,666,856 $ 1,190,091 ____________ (1) Represents fair value adjustments on loans sold. (2) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Allowance for Loan Losses Year Ended December 31, 2017 FFELP Loans Private Education Loans Personal Loans Total Allowance for Loan Losses Beginning balance $ 2,171 $ 182,472 $ 58 $ 184,701 Total provision (85 ) 178,542 7,138 185,595 Net charge-offs: Charge-offs (954 ) (130,063 ) (579 ) (131,596 ) Recoveries — 17,635 11 17,646 Net charge-offs (954 ) (112,428 ) (568 ) (113,950 ) Loan sales (1) — (4,871 ) — (4,871 ) Ending Balance $ 1,132 $ 243,715 $ 6,628 $ 251,475 Allowance: Ending balance: individually evaluated for impairment $ — $ 94,682 $ — $ 94,682 Ending balance: collectively evaluated for impairment $ 1,132 $ 149,033 $ 6,628 $ 156,793 Loans: Ending balance: individually evaluated for impairment $ — $ 990,351 $ — $ 990,351 Ending balance: collectively evaluated for impairment $ 927,660 $ 16,441,816 $ 400,280 $ 17,769,756 Net charge-offs as a percentage of average loans in repayment (2) 0.13 % 1.03 % 0.47 % Allowance as a percentage of the ending total loan balance 0.12 % 1.40 % 1.66 % Allowance as a percentage of the ending loans in repayment (2) 0.15 % 2.00 % 1.66 % Allowance coverage of net charge-offs 1.19 2.17 11.67 Ending total loans, gross $ 927,660 $ 17,432,167 $ 400,280 Average loans in repayment (2) $ 745,039 $ 10,881,058 $ 119,606 Ending loans in repayment (2) $ 746,456 $ 12,206,033 $ 400,280 ____________ (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. |
Unpaid principal balance and related allowance for TDR loans | At December 31, 2019 and 2018 , all of our TDR loans had a related allowance recorded. The following table provides the recorded investment, unpaid principal balance and related allowance for our TDR loans. Recorded Investment Unpaid Principal Balance Allowance December 31, 2019 TDR Loans $ 1,612,896 $ 1,581,966 $ 186,697 December 31, 2018 TDR Loans $ 1,280,713 $ 1,257,856 $ 120,110 |
Average recorded investment and interest income recognized | The following table provides the average recorded investment and interest income recognized for our TDR loans. Years Ended December 31, 2019 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized TDR Loans $ 1,434,137 $ 95,507 $ 1,141,993 $ 77,670 $ 822,145 $ 61,119 |
Age analysis of past due loans delinquencies | The following table provides information regarding the loan status and aging of TDR loans. December 31, December 31, 2019 2018 Balance % Balance % TDR loans in in-school/grace/deferment (1) $ 87,749 $ 69,212 TDR loans in forbearance (2) 99,054 69,796 TDR loans in repayment (3) and percentage of each status: Loans current 1,230,954 88.2 % 994,411 88.9 % Loans delinquent 31-60 days (4) 85,555 6.1 63,074 5.6 Loans delinquent 61-90 days (4) 49,626 3.6 36,804 3.3 Loans delinquent greater than 90 days (4) 29,028 2.1 24,559 2.2 Total TDR loans in repayment 1,395,163 100.0 % 1,118,848 100.0 % Total TDR loans, gross $ 1,581,966 $ 1,257,856 _____ (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 Personal Loans. Personal Loans December 31, 2019 2018 Balance % Balance % Loans in repayment and percentage of each status: Loans current $ 1,023,517 97.6 % $ 1,172,776 98.5 % Loans delinquent 31-60 days (1) 9,435 0.9 6,722 0.6 Loans delinquent 61-90 days (1) 7,172 0.7 5,416 0.5 Loans delinquent greater than 90 days (1) 8,883 0.8 5,177 0.4 Total Personal Loans in repayment 1,049,007 100.0 % 1,190,091 100.0 % Total Personal Loans, gross 1,049,007 1,190,091 Personal Loans deferred origination costs and unamortized premium/(discount) 513 297 Total Personal Loans 1,049,520 1,190,388 Personal Loans allowance for losses (65,877 ) (62,201 ) Personal Loans, net $ 983,643 $ 1,128,187 Delinquencies as a percentage of Personal Loans in repayment 2.4 % 1.5 % _______ (1) The period of delinquency is based on the number of days scheduled payments are contractually past due. ___________ (1) Balance represents gross Personal Loans. (2) Number of months in active repayment for which a scheduled payment was due. Private Education Loan Delinquencies The following table provides information regarding the loan status of our Private Education Loans. Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Private Education Loans December 31, 2019 2018 2017 Balance % Balance % Balance % Loans in-school/grace/deferment (1) $ 5,687,405 $ 5,260,445 $ 4,757,732 Loans in forbearance (2) 714,516 577,164 468,402 Loans in repayment and percentage of each status: Loans current 16,315,651 97.2 % 14,289,705 97.4 % 11,911,128 97.6 % Loans delinquent 31-60 days (3) 288,051 1.7 231,216 1.6 179,002 1.5 Loans delinquent 61-90 days (3) 121,302 0.7 95,105 0.7 78,292 0.6 Loans delinquent greater than 90 days (3) 62,666 0.4 50,830 0.3 37,611 0.3 Total Private Education Loans in repayment 16,787,670 100.0 % 14,666,856 100.0 % 12,206,033 100.0 % Total Private Education Loans, gross 23,189,591 20,504,465 17,432,167 Private Education Loans deferred origination costs and unamortized premium/(discount) 81,224 68,321 56,378 Total Private Education Loans 23,270,815 20,572,786 17,488,545 Private Education Loans allowance for losses (374,300 ) (277,943 ) (243,715 ) Private Education Loans, net $ 22,896,515 $ 20,294,843 $ 17,244,830 Percentage of Private Education Loans in repayment 72.4 % 71.5 % 70.0 % Delinquencies as a percentage of Private Education Loans in repayment 2.8 % 2.6 % 2.4 % Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance 4.1 % 3.8 % 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 includes forbearance and reductions in interest rates) that became TDRs in the periods presented. Additionally, for the periods presented, the table summarizes charge-offs occurring in the TDR portfolio, as well as TDRs for which a payment default occurred in the relevant period presented and within 12 months of the loan first being designated as a TDR. We define payment default as 60 days past due for this disclosure. Years Ended December 31, 2019 2018 2017 Modified Loans (1) Charge-offs Payment-Default Modified Loans (1) Charge-offs Payment-Default Modified Loans (1) Charge-offs Payment-Default TDR Loans $ 515,398 $ 74,137 $ 111,810 $ 394,639 $ 52,823 $ 90,231 $ 498,812 $ 48,469 $ 92,532 _______ (1) Represents the principal balance of loans that have been modified during the period and resulted in a TDR. |
Private education loan portfolio stratified by key credit quality indicators | The following table highlights the gross principal balance of our Personal Loan portfolio stratified by key credit quality indicators. Personal Loans Credit Quality Indicators December 31, 2019 December 31, 2018 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance FICO at Original Approval: Less than 670 $ 47,367 4 % $ 77,702 7 % 670-699 259,098 25 339,053 28 700-749 521,856 50 554,700 47 Greater than or equal to 750 220,686 21 218,636 18 Total $ 1,049,007 100 % $ 1,190,091 100 % Seasoning (2) : 0-12 payments $ 469,940 45 % $ 1,008,758 85 % 13-24 payments 505,318 48 181,333 15 25-36 payments 73,749 7 — — 37-48 payments — — — — More than 48 payments — — — — Total $ 1,049,007 100 % $ 1,190,091 100 % ___________ (1) Balance represents gross Personal Loans. (2) Number of months in active repayment for which a scheduled payment was due. December 31, 2019 December 31, 2018 Credit Quality Indicators: Balance (1) % of Balance Balance (1) % of Balance Cosigners: With cosigner $ 20,709,636 89 % $ 18,378,398 90 % Without cosigner 2,479,955 11 2,126,067 10 Total $ 23,189,591 100 % $ 20,504,465 100 % FICO at Original Approval (2) : Less than 670 $ 1,665,589 7 % $ 1,409,789 7 % 670-699 3,570,025 16 3,106,983 15 700-749 7,670,748 33 6,759,721 33 Greater than or equal to 750 10,283,229 44 9,227,972 45 Total $ 23,189,591 100 % $ 20,504,465 100 % FICO-Refreshed (2)(3) : Less than 670 $ 2,979,437 13 % $ 2,416,979 12 % 670-699 2,883,122 13 2,504,467 12 700-749 6,806,602 29 6,144,489 30 Greater than or equal to 750 10,520,430 45 9,438,530 46 Total $ 23,189,591 100 % $ 20,504,465 100 % Seasoning (4) : 1-12 payments $ 5,351,702 23 % $ 4,969,334 24 % 13-24 payments 4,004,151 17 3,481,235 17 25-36 payments 2,902,365 12 2,741,954 13 37-48 payments 2,213,944 10 1,990,049 10 More than 48 payments 3,030,024 13 2,061,448 10 Not yet in repayment 5,687,405 25 5,260,445 26 Total $ 23,189,591 100 % $ 20,504,465 100 % _____ (1) Balance represents gross Private Education Loans. (2) Represents the higher credit score of the cosigner or the borrower. (3) Represents the FICO score updated as of the fourth-quarter 2019. (4) Number of months in active repayment (whether interest-only payment, fixed payment, or full principal and interest repayment status) for which a scheduled payment was due. |
Accrued interest receivable | The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans greater than 90 days past due as compared to our allowance for uncollectible interest. The majority of the total accrued interest receivable represents accrued interest on deferred loans where no payments are due while the borrower is in school and fixed-pay loans where the borrower makes a $25 monthly payment that is smaller than the interest accruing on the loan in that month. The accrued interest on these loans will be capitalized to the balance of the loans when the borrower exits the grace period upon separation from school. The allowance for uncollectible interest exceeds the amount of accrued interest on our 90 days past due portfolio for all periods presented. Private Education Loans Accrued Interest Receivable Total Interest Receivable Greater Than 90 Days Past Due Allowance for Uncollectible Interest December 31, 2019 $ 1,366,158 $ 2,390 $ 5,309 December 31, 2018 $ 1,168,823 $ 1,920 $ 6,322 |
Premises and Equipment, Net (Ta
Premises and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | The following is a summary of our premises and equipment. December 31, 2019 2018 Land and land improvements $ 12,356 $ 12,356 Buildings and leasehold improvements 105,986 71,919 Furniture, fixtures and equipment 25,694 20,794 Software 70,191 65,023 Premises and equipment, gross 214,227 170,092 Accumulated depreciation (79,478 ) (64,588 ) Premises and equipment, net $ 134,749 $ 105,504 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Schedule of deposits | The following table summarizes total deposits at December 31, 2019 and 2018 . December 31, 2019 2018 Deposits - interest bearing $ 24,282,906 $ 18,942,082 Deposits - non-interest bearing 1,077 1,076 Total deposits $ 24,283,983 $ 18,943,158 |
Interest bearing deposits | Interest bearing deposits at December 31, 2019 and 2018 are summarized as follows: December 31, 2019 December 31, 2018 Amount Year-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 9,616,547 2.04 % $ 8,687,766 2.46 % Savings 718,616 1.71 702,342 2.00 Certificates of deposit 13,947,743 2.44 9,551,974 2.74 Deposits - interest bearing $ 24,282,906 $ 18,942,082 ___ (1) Includes the effect of interest rate swaps in effective hedge relationships. |
Schedule of maturities of time deposits | Certificates of deposit remaining maturities are summarized as follows: December 31, 2019 2018 One year or less $ 4,934,933 $ 4,098,520 After one year to two years 4,279,406 2,045,861 After two years to three years 2,807,297 1,479,292 After three years to four years 1,285,504 494,654 After four years to five years 548,492 1,274,198 After five years 92,111 159,449 Total $ 13,947,743 $ 9,551,974 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Secured borrowings | The following table summarizes our secured borrowings at December 31, 2019 and 2018. December 31, 2019 December 31, 2018 Short-Term Long-Term Total Short-Term Long-Term Total Unsecured borrowings: Unsecured debt (fixed-rate) $ — $ 198,159 $ 198,159 $ — $ 197,348 $ 197,348 Total unsecured borrowings — 198,159 198,159 — 197,348 197,348 Secured borrowings: Private Education Loan term securitizations: Fixed-rate — 2,629,902 2,629,902 — 2,284,347 2,284,347 Variable-rate — 1,525,976 1,525,976 — 1,802,609 1,802,609 Total Private Education Loan term securitizations — 4,155,878 4,155,878 — 4,086,956 4,086,956 Secured Borrowing Facility 289,230 — 289,230 — — — Total secured borrowings 289,230 4,155,878 4,445,108 — 4,086,956 4,086,956 Total $ 289,230 $ 4,354,037 $ 4,643,267 $ — $ 4,284,304 $ 4,284,304 |
Short-term borrowings | The following table summarizes the outstanding short-term borrowings, the weighted average interest rates at the end of the period and the related average balance and weighted average interest rates during the period. The Secured Borrowing Facility’s contractual maturity is two years from the date of inception or renewal ( one -year revolving period plus a one -year amortization period); however, we classify advances under our Secured Borrowing Facility as short-term borrowings because it is our intention to repay those advances within one year. December 31, 2019 Year Ended December 31, 2019 Ending Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Short-term borrowings: Secured Borrowing Facility $ 289,230 1.74 % $ 102,639 4.91 % Maximum outstanding at any month end $ 297,800 December 31, 2018 Year Ended December 31, 2018 Ending Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Short-term borrowings: Secured Borrowing Facility $ — — % $ 52,603 8.91 % Maximum outstanding at any month end $ 300,000 |
Long-term borrowings | The following table summarizes the outstanding long-term borrowings, the weighted average interest rates at the end of the period and the related average balance during the period. Rates reflect stated interest of borrowings and related discounts and premiums. The long-term borrowings amortize over time and mature serially from 2023 to 2040. December 31, 2019 Year Ended December 31, 2018 Year Ended December 31, 2018 Ending Balance Weighted Average Average Balance Ending Balance Weighted Average Interest Rate Average Balance Floating-rate borrowings $ 1,525,976 2.61 % $ 1,731,675 $ 1,802,609 3.26 % $ 1,720,540 Fixed-rate borrowings 2,828,061 3.31 2,752,183 2,481,695 3.28 2,172,993 Total long-term borrowings $ 4,354,037 3.07 % $ 4,483,858 $ 4,284,304 3.27 % $ 3,893,533 |
Schedule of Maturities of Long-term Debt | As of December 31, 2019 , the stated maturity and maturity to call date of our brokered deposits and borrowings are summarized below. December 31, 2019 Stated Maturity (1) Maturity to Call Date (2) Brokered Deposits Unsecured Debt Secured Borrowings Total Brokered Deposits Unsecured Debt Secured Borrowings Total Year of Maturity 2020 $ 2,650,654 $ — $ 565,805 $ 3,216,459 $ 2,650,654 $ — $ 565,805 $ 3,216,459 2021 3,691,692 — 507,319 4,199,011 3,691,692 — 507,319 4,199,011 2022 2,690,974 200,000 512,718 3,403,692 2,690,974 200,000 512,718 3,403,692 2023 1,270,385 — 534,692 1,805,077 1,270,385 — 534,692 1,805,077 2024 499,112 — 529,471 1,028,583 499,112 — 529,471 1,028,583 2025 and after 92,822 — 1,688,473 1,781,295 92,822 — 1,688,473 1,781,295 10,895,639 200,000 4,338,478 15,434,117 10,895,639 200,000 4,338,478 15,434,117 Hedge accounting adjustments 45,887 — — 45,887 45,887 — — 45,887 Total $ 10,941,526 $ 200,000 $ 4,338,478 $ 15,480,004 $ 10,941,526 $ 200,000 $ 4,338,478 $ 15,480,004 ____________ (1) We view our securitization trust debt as long-term based on the contractual maturity dates and projected principal paydowns based on our current estimates regarding loan prepayment speeds. The projected principal paydowns in year 2020 include $566 million related to the securitization trust debt. (2) The aggregate principal amount of debt that matures in each period is $3.2 billion in 2020, $4.2 billion in 2021, $3.4 billion in 2022, $1.8 billion in 2023, $1.0 billion in 2024, and $1.8 billion in 2025 and after. |
Secured financing | Secured Financings The following summarizes our secured financings issued in 2018 and 2019: Issue Date Issued Total Issued Weighted Average Cost of Funds (1) Weighted Average Life (in years) Private Education: 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 2018-C September 2018 544,000 1-month LIBOR plus 0.77% 4.32 Total notes issued in 2018 $ 1,900,500 Total loan and accrued interest amount securitized at inception in 2018 $ 2,101,644 2019-A March 2019 $ 453,000 1-month LIBOR plus 0.92% 4.26 2019-B June 2019 657,000 1-month LIBOR plus 1.01% 4.41 Total notes issued in 2019 $ 1,110,000 Total loan and accrued interest amount securitized at inception in 2019 $ 1,208,963 ____________ (1) Represents LIBOR equivalent cost of funds for floating and fixed-rate bonds, excluding issuance costs. |
Schedule of variable interest entities | December 31, 2019 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 $ — $ 4,155,878 $ 4,155,878 $ 5,246,986 $ 145,760 $ 333,173 $ 5,725,919 Secured Borrowing Facility 289,230 — 289,230 339,666 8,803 23,832 372,301 Total $ 289,230 $ 4,155,878 $ 4,445,108 $ 5,586,652 $ 154,563 $ 357,005 $ 6,098,220 December 31, 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 $ — $ 4,086,956 $ 4,086,956 $ 5,030,837 $ 113,431 $ 326,570 $ 5,470,838 Secured Borrowing Facility — — — — — 157 157 Total $ — $ 4,086,956 $ 4,086,956 $ 5,030,837 $ 113,431 $ 326,727 $ 5,470,995 ________ (1) Other assets primarily represent accrued interest receivable. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Impact of derivatives on the consolidated balance sheet | The following tables summarize the fair values and notional amounts of all derivative instruments at December 31, 2019 and 2018 , and their impact on earnings and other comprehensive income for the years ended December 31, 2019 , 2018 and 2017 . Impact of Derivatives on the Consolidated Balance Sheets Cash Flow Hedges Fair Value Hedges Trading Total December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2019 2018 2019 2018 2019 2018 2019 2018 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ 715 $ — $ — $ 2,000 $ — $ 90 $ 715 $ 2,090 Derivative Liabilities: (2) Interest rate swaps Interest rate — (2,032 ) (896 ) — (268 ) — (1,164 ) (2,032 ) Total net derivatives $ 715 $ (2,032 ) $ (896 ) $ 2,000 $ (268 ) $ 90 $ (449 ) $ 58 __________ (1) Fair values reported include variation margin as legal settlement of the derivative contract. 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: |
Offsetting assets | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities December 31, December 31, December 31, December 31, 2019 2018 2019 2018 Gross position (1) $ 715 $ 2,090 $ (1,164 ) $ (2,032 ) Impact of master netting agreement (519 ) (1,389 ) 519 1,389 Derivative values with impact of master netting agreements (as carried on balance sheet) 196 701 (645 ) (643 ) Cash collateral pledged (2) 52,564 27,151 — — Net position $ 52,760 $ 27,852 $ (645 ) $ (643 ) __________ (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 | Other Assets Other Liabilities December 31, December 31, December 31, December 31, 2019 2018 2019 2018 Gross position (1) $ 715 $ 2,090 $ (1,164 ) $ (2,032 ) Impact of master netting agreement (519 ) (1,389 ) 519 1,389 Derivative values with impact of master netting agreements (as carried on balance sheet) 196 701 (645 ) (643 ) Cash collateral pledged (2) 52,564 27,151 — — Net position $ 52,760 $ 27,852 $ (645 ) $ (643 ) __________ (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 December 31, December 31, December 31, December 31, December 31, December 31, December 31, December 31, 2019 2018 2019 2018 2019 2018 2019 2018 Notional Values Interest rate swaps $ 1,150,518 $ 1,280,367 $ 5,031,429 $ 3,137,965 $ 3,744,917 $ 1,577,978 $ 9,926,864 $ 5,996,310 |
Schedule of Fair Value Hedging Instruments, Statements of Financial Performance and Financial Position, Location | As of December 31, 2019 and 2018, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges: Line Item in the Balance Sheet in Which the Hedged Item is Included: Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) December 31, December 31, December 31, December 31, 2019 2018 2019 2018 Deposits $ (5,085,426 ) $ (3,114,304 ) $ (63,148 ) $ 14,202 |
Schedule of derivative instruments performance and location | Impact of Derivatives on the Consolidated Statements of Income Years Ended December 31, 2019 2018 2017 Fair Value Hedges Interest rate swaps: Interest recognized on derivatives $ (8,806 ) $ (11,642 ) $ 8,286 Hedged items recorded in interest expense (77,350 ) (7,966 ) 16,155 Derivatives recorded in interest expense 77,177 8,123 (20,115 ) Total $ (8,979 ) $ (11,485 ) $ 4,326 Cash Flow Hedges Interest rate swaps: Amount of gain (loss) reclassified from accumulated other comprehensive income into interest expense $ 2,299 $ (1,455 ) $ (11,187 ) Total $ 2,299 $ (1,455 ) $ (11,187 ) Trading Interest rate swaps: Change in fair value of future interest payments recorded in earnings $ 19,469 $ (1,400 ) $ (3,693 ) Total 19,469 (1,400 ) (3,693 ) Total $ 12,789 $ (14,340 ) $ (10,554 ) |
Schedule of derivative instruments, effect on other comprehensive income (loss) | Impact of Derivatives on the Statements of Changes in Stockholders’ Equity Years Ended December 31, 2019 2018 2017 Amount of gain (loss) recognized in other comprehensive income (loss) $ (36,115 ) $ 10,452 $ 8,008 Amount of gain (loss) reclassified in interest expense 2,299 (1,455 ) (11,187 ) Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit $ (38,414 ) $ 11,907 $ 19,195 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Class of Treasury Stock | The following table summarizes our common share repurchases and issuances associated with these programs. Years Ended December 31, (Shares and per share amounts in actuals) 2019 2018 2017 Common stock repurchased under repurchase program (1) 16,962,199 — — Average purchase price per share (2) $ 9.86 $ — $ — Shares repurchased related to employee stock-based compensation plans (3) 1,369,630 3,087,396 3,358,417 Average purchase price per share $ 10.85 $ 11.32 $ 11.96 Common shares issued (4) 3,743,705 6,392,634 6,831,108 _________ (1) Common shares purchased under our 2019 Share Repurchase Program. $33 million of capacity under the program remained available as of December 31, 2019. (2) Average purchase price per share includes purchase commission costs. (3) 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. (4) Common shares issued under our various compensation and benefit plans. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows. Years Ended December 31, (In thousands, except per share data) 2019 2018 2017 Numerator: Net income $ 578,276 $ 487,476 $ 288,934 Preferred stock dividends 16,837 15,640 15,714 Net income attributable to SLM Corporation common stock $ 561,439 $ 471,836 $ 273,220 Denominator: Weighted average shares used to compute basic EPS 427,292 435,054 431,216 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units, performance stock units and Employee Stock Purchase Plan (“ESPP”) (1)(2) 3,382 4,627 7,335 Weighted average shares used to compute diluted EPS 430,674 439,681 438,551 Basic earnings per common share attributable to SLM Corporation $ 1.31 $ 1.08 $ 0.63 Diluted earnings per common share attributable to SLM Corporation $ 1.30 $ 1.07 $ 0.62 __________ (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, performance stock units and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method. (2) For the years ended December 31, 2019 , 2018 and 2017 , securities covering no shares, less than 1 million shares and no shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plans and Arrangements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock option activity | The following table summarizes stock option activity for the year ended December 31, 2019 . (Dollars in thousands, except per share data) Number of Options Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Term Aggregate Intrinsic Value (1) Outstanding at December 31, 2018 1,391,819 $ 10.44 Granted — — Exercised (2)(3) (593,806 ) 3.63 Canceled (8,167 ) 3.94 Outstanding at December 31, 2019 (4) 789,846 $ 4.75 0.7 years $ 3,284 Exercisable at December 31, 2019 789,846 $ 4.75 0.7 years $ 3,284 ____________ (1) The aggregate intrinsic value represents the total intrinsic value (the aggregate difference between our closing stock price on December 31, 2019 and the exercise price of in-the-money options) that would have been received by the option holders if all in-the-money options had been exercised on December 31, 2019. (2) The total intrinsic value of options exercised was $4 million, $17 million, and $16 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. (3) No cash was received from option exercises for the year ended December 31, 2019. The actual tax benefit realized for the tax deductions from option exercises totaled $1 million for the year ended December 31, 2019. (4) For net-settled options, gross number is reflected. |
Restricted stock activity | The following table summarizes restricted stock activity for the year ended December 31, 2019 . (Shares and per share amounts in actuals) Number of Shares Weighted Average Grant Date Fair Value Non-vested at December 31, 2018 84,392 $ 11.73 Granted 118,789 9.26 Vested (1) (84,392 ) 11.73 Canceled — — Non-vested at December 31, 2019 (2) 118,789 $ 9.26 _________ (1) The total fair value of shares that vested during the years ended December 31, 2019 , 2018 and 2017 was $1 million, $1 million and $1 million, respectively. (2) As of December 31, 2019 , there was $1 million of unrecognized compensation cost related to restricted stock, which is expected to be recognized over a weighted average period of 0.5 years . |
Restricted stock unit and performance stock unit activity | The following table summarizes RSU and PSU activity for the year ended December 31, 2019 . (Shares and per share amounts in actuals) Number of RSUs/ PSUs Weighted Average Grant Date Fair Value Outstanding at December 31, 2018 5,338,034 $ 10.11 Granted 3,008,102 10.84 Vested and converted to common stock (1) (3,030,536 ) 8.78 Canceled (136,383 ) 11.09 Outstanding at December 31, 2019 (2) 5,179,217 $ 11.28 __________ (1) The total fair value of RSUs/PSUs that vested and converted to common stock during the years ended December 31, 2019 , 2018 and 2017 was $27 million, $25 million and $29 million, respectively. (2) As of December 31, 2019 , there was $12 million of unrecognized compensation cost related to RSUs/PSUs, which is expected to be recognized over a weighted average period of 1.4 years . |
Black-Scholes Model assumptions for calculating ESPP fair values | The fair values of the stock purchase rights of the ESPP offerings were calculated using a Black-Scholes option pricing model with the following weighted average assumptions: Years Ended December 31, (Dollars per share) 2019 2018 2017 Risk-free interest rate 1.87 % 2.44 % 1.22 % Expected volatility 29 % 27 % 32 % Expected dividend rate 1.34 % — % — % Expected life of the option 1 year 1 year 1 year Weighted average fair value of stock purchase rights $ 1.77 $ 2.32 $ 2.36 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Valuation of financial instruments that are marked-to-market on recurring basis | The following table summarizes the valuation of our financial instruments that are marked-to-fair value on a recurring basis. Fair Value Measurements on a Recurring Basis December 31, 2019 December 31, 2018 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Available-for-sale investments $ — $ 487,669 $ — $ 487,669 $ — $ 176,245 $ — $ 176,245 Derivative instruments — 715 — 715 — 2,090 — 2,090 Total $ — $ 488,384 $ — $ 488,384 $ — $ 178,335 $ — $ 178,335 Liabilities Derivative instruments $ — $ (1,164 ) $ — $ (1,164 ) $ — $ (2,032 ) $ — $ (2,032 ) Total $ — $ (1,164 ) $ — $ (1,164 ) $ — $ (2,032 ) $ — $ (2,032 ) |
Fair values of financial assets and liabilities, including derivative financial instruments | The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. December 31, 2019 December 31, 2018 Fair Value Carrying Value Difference Fair Value Carrying Value Difference Earning assets: Loans held for investment, net: Private Education Loans $ 24,988,941 $ 22,896,515 $ 2,092,426 $ 22,313,419 $ 20,294,843 $ 2,018,576 FFELP Loans 795,055 783,816 11,239 859,185 847,889 11,296 Personal Loans 1,047,119 983,643 63,476 1,156,531 1,128,187 28,344 Credit Cards 3,818 3,818 — — — — Cash and cash equivalents 5,563,877 5,563,877 — 2,559,106 2,559,106 — Available-for-sale investments 487,669 487,669 — 176,245 176,245 — Accrued interest receivable 1,491,471 1,392,725 98,746 1,285,842 1,191,981 93,861 Tax indemnification receivable 27,558 27,558 — 39,207 39,207 — Derivative instruments 715 715 — 2,090 2,090 — Total earning assets $ 34,406,223 $ 32,140,336 $ 2,265,887 $ 28,391,625 $ 26,239,548 $ 2,152,077 Interest-bearing liabilities: Money-market and savings accounts $ 10,363,691 $ 10,335,163 $ (28,528 ) $ 9,370,957 $ 9,390,108 $ 19,151 Certificates of deposit 14,065,007 13,947,743 (117,264 ) 9,513,194 9,551,974 38,780 Short-term borrowings 289,230 289,230 — — — — Long-term borrowings 4,434,323 4,354,037 (80,286 ) 4,278,931 4,284,304 5,373 Accrued interest payable 75,158 75,158 — 61,341 61,341 — Derivative instruments 1,164 1,164 — 2,032 2,032 — Total interest-bearing liabilities $ 29,228,573 $ 29,002,495 $ (226,078 ) $ 23,226,455 $ 23,289,759 $ 63,304 Excess of net asset fair value over carrying value $ 2,039,809 $ 2,215,381 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of compliance with regulatory capital requirements | The following capital amounts and ratios are based upon the Bank’s average assets and risk-weighted assets, as indicated. Actual U.S. Basel III (1)(2) Amount Ratio Amount Ratio As of December 31, 2019: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 3,264,309 12.2 % $ 1,876,050 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 3,264,309 12.2 % $ 2,278,060 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,600,668 13.4 % $ 2,814,074 > 10.5 % Tier 1 Capital (to Average Assets) $ 3,264,309 10.2 % $ 1,282,642 > 4.0 % As of December 31, 2018: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 2,896,091 12.1 % $ 1,528,209 > 6.375 % Tier 1 Capital (to Risk-Weighted Assets) $ 2,896,091 12.1 % $ 1,887,787 > 7.875 % Total Capital (to Risk-Weighted Assets) $ 3,196,279 13.3 % $ 2,367,226 > 9.875 % Tier 1 Capital (to Average Assets) $ 2,896,091 11.1 % $ 1,039,226 > 4.0 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Reconciliations of statutory U.S. federal income tax rates to our effective tax rate | Reconciliations of the statutory U.S. federal income tax rates to our effective tax rate for continuing operations follow: Years Ended December 31, 2019 2018 2017 Statutory rate 21.0 % 21.0 % 35.0 % Tax reform — (0.3 ) 3.1 State tax, net of federal benefit 3.9 3.8 2.6 Business tax credits (3.5 ) (0.5 ) (0.1 ) Reverse federal impact of indemnification adjustments 0.3 3.5 2.5 Unrecognized tax benefits, U.S. federal and state, net of federal benefit (0.1 ) (15.9 ) (2.0 ) Excess tax benefits/deficiencies for employee stock-based compensation, federal and state, net of federal benefit (0.3 ) (0.6 ) (1.7 ) Impact of state rate change on net deferred tax liabilities, net of federal benefit — (0.4 ) 0.6 State, valuation allowance adjustments on net operating losses 0.1 0.4 0.2 Other, net 0.9 1.9 1.0 Effective tax rate 22.3 % 12.9 % 41.2 % |
Components of provision for income tax expense (benefit) | Income tax expense consists of: December 31, 2019 2018 2017 Current provision: Federal $ 150,800 $ 102,516 $ 248,191 State 24,378 32,638 13,092 Total current provision 175,178 135,154 261,283 Deferred benefit: Federal (8,240 ) (57,076 ) (58,124 ) State (1,474 ) (6,225 ) (628 ) Total deferred benefit (9,714 ) (63,301 ) (58,752 ) Provision for income tax expense $ 165,464 $ 71,853 $ 202,531 |
Schedule of deferred tax assets and liabilities | The tax effect of temporary differences that give rise to deferred tax assets and liabilities is summarized below. December 31, 2019 2018 Deferred tax assets: Loan reserves $ 109,369 $ 85,100 Stock-based compensation plans 10,022 9,312 Deferred revenue 1,017 1,081 Operating loss carryovers — — Accrued expenses not currently deductible 12,599 12,896 Net unrealized losses 2,124 — Unrecorded tax benefits 6,049 5,106 Market value adjustments on student loans, investments and derivatives — 1,460 Other 874 953 Total deferred tax assets 142,054 115,908 Deferred tax liabilities: Fixed assets 10,475 7,150 Acquired intangible assets 5,453 5,179 Market value adjustments on student loans, investments and derivatives 3,175 — Net unrealized gains — 3,436 Federal deferred for state receivable 5,368 2,083 Student loan premiums and discounts, net 3,398 1,971 Other 285 285 Total deferred tax liabilities 28,154 20,104 Net deferred tax assets $ 113,900 $ 95,804 |
Summary of changes in unrecognized tax benefits | The following table summarizes changes in unrecognized tax benefits: December 31, 2019 2018 2017 Unrecognized tax benefits at beginning of year $ 52,159 $ 131,608 $ 152,581 Increases resulting from tax positions taken during a prior period 12,333 4,121 7,482 Decreases resulting from tax positions taken during a prior period (851 ) — (7,025 ) Increases resulting from tax positions taken during the current period 4,572 3,169 1,656 Decreases related to settlements with taxing authorities (8,670 ) (601 ) (3,594 ) Reductions related to the lapse of statute of limitations (6,034 ) (86,138 ) (19,492 ) Unrecognized tax benefits at end of year $ 53,509 $ 52,159 $ 131,608 |
Parent Only Statements (Tables)
Parent Only Statements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent only Condensed Balance Sheets | Parent Only Condensed Balance Sheets December 31, 2019 2018 Assets Cash and cash equivalents $ 153,508 $ 191,776 Total investments in subsidiaries (primarily Sallie Mae Bank) 3,326,578 2,963,949 Tax indemnification receivable 27,558 39,207 Due from subsidiaries, net 42,544 48,798 Other assets 2,579 2,246 Total assets $ 3,552,767 $ 3,245,976 Liabilities and Equity Liabilities Long-term borrowings $ 198,159 $ 197,348 Income taxes payable, net 11,457 37,271 Payable due to Navient 9,064 9,480 Other liabilities 22,251 29,221 Total liabilities 240,931 273,320 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: 453.6 million and 449.9 million shares issued, respectively 90,720 89,972 Additional paid-in capital 1,307,630 1,274,635 Accumulated other comprehensive income (loss) (net of tax expense (benefit) of ($3,995) and $3,436, respectively) (12,367 ) 10,623 Retained earnings 1,850,512 1,340,017 Total SLM Corporation stockholders’ equity before treasury stock 3,636,495 3,115,247 Less: Common stock held in treasury at cost: 32.5 million and 14.2 million shares, respectively (324,659 ) (142,591 ) Total equity 3,311,836 2,972,656 Total liabilities and equity $ 3,552,767 $ 3,245,976 |
Parent only Condensed Statements of Income | Parent Only Condensed Statements of Income Years Ended December 31, 2019 2018 2017 Interest income $ 2,663 $ 4,693 $ 5,497 Interest expense 11,060 11,059 8,170 Net interest loss (8,397 ) (6,366 ) (2,673 ) Non-interest loss (10,856 ) (93,176 ) (33,956 ) Non-interest expenses 39,423 41,893 35,810 Loss before income tax benefit and equity in net income from subsidiaries (58,676 ) (141,435 ) (72,439 ) Income tax benefit (25,260 ) (96,170 ) (40,598 ) Equity in net income from subsidiaries (primarily Sallie Mae Bank) 611,692 532,741 320,775 Net income 578,276 487,476 288,934 Preferred stock dividends 16,837 15,640 15,714 Net income attributable to SLM Corporation common stock $ 561,439 $ 471,836 $ 273,220 |
Parent only Condensed Statements of Cash Flows | Parent Only Condensed Statements of Cash Flows Years Ended December 31, 2019 2018 2017 Cash flows from operating activities: Net income $ 578,276 $ 487,476 $ 288,934 Adjustments to reconcile net income to net cash (used in) provided by operating activities: Undistributed earnings of subsidiaries (611,692 ) (532,741 ) (320,775 ) Dividends received from Sallie Mae Bank 254,000 — — Reduction of tax indemnification receivable 11,649 92,815 31,888 Amortization of unsecured debt upfront fees 811 809 596 Decrease in investment in subsidiaries, net 2,611 9,495 1,158 Decrease in tax indemnification receivable — 35,989 59,633 Decrease (increase) in due from subsidiaries, net 6,254 (11,277 ) (5,687 ) Increase in other assets (12,999 ) (18,040 ) (24,627 ) Decrease in income taxes payable, net (25,814 ) (123,083 ) (87,983 ) Decrease in payable due to entity that is a subsidiary of Navient (416 ) (1,089 ) (593 ) (Decrease) increase in other liabilities (5,796 ) 6,807 10,205 Total adjustments (381,392 ) (540,315 ) (336,185 ) Net cash used in operating activities 196,884 (52,839 ) (47,251 ) Cash flows from investing activities: Net cash provided by investing activities — — — Cash flows from financing activities: Unsecured debt issued — — 197,000 Issuance costs for unsecured debt offering — — (1,057 ) Redemption of Series A Preferred Stock — — (165,000 ) Common stock dividends paid (51,114 ) — — Preferred stock dividends paid (16,837 ) (15,640 ) (15,714 ) Common stock repurchased (167,201 ) — — Net cash used in financing activities (235,152 ) (15,640 ) 15,229 Net decrease in cash and cash equivalents (38,268 ) (68,479 ) (32,022 ) Cash and cash equivalents at beginning of year 191,776 260,255 292,277 Cash and cash equivalents at end of year $ 153,508 $ 191,776 $ 260,255 |
Selected Quarterly Financial _2
Selected Quarterly Financial Information (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information | 2019 First Second Third Fourth (Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Net interest income $ 402,281 $ 396,868 $ 405,065 $ 419,101 Less: provisions for credit losses 63,790 93,375 99,526 97,558 Net interest income after provisions for credit losses 338,491 303,493 305,539 321,543 Gains (losses) on derivative and hedging activities, net 2,763 16,736 1,961 (3,635 ) Other income (loss) 13,378 2,655 15,280 (211 ) Total non-interest expenses 140,147 138,806 153,621 141,679 Income tax expense 56,296 33,801 40,701 34,666 Net income 158,189 150,277 128,458 141,352 Preferred stock dividends 4,468 4,331 4,153 3,885 Net income attributable to SLM Corporation common stock $ 153,721 $ 145,946 $ 124,305 $ 137,467 Basic earnings per common share attributable to SLM Corporation (1) $ 0.35 $ 0.34 $ 0.29 $ 0.33 Diluted earnings per common share attributable to SLM Corporation (1) $ 0.35 $ 0.34 $ 0.29 $ 0.32 Declared dividends per common share attributable to SLM Corporation $ 0.03 $ 0.06 $ — $ 0.03 ______ (1) Basic and diluted earnings per common share attributable to SLM Corporation are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted earnings per common share information may not equal annual basic and diluted earnings per common share. 2018 First Second Third Fourth (Dollars in thousands, except per share data) Quarter Quarter Quarter Quarter Net interest income $ 332,614 $ 340,950 $ 356,633 $ 382,867 Less: provisions for credit losses 53,931 63,267 70,047 57,619 Net interest income after provisions for credit losses 278,683 277,683 286,586 325,248 Gains on sales of loans, net — 2,060 — — Losses on sales of securities, net — (1,549 ) — — Gains (losses) on derivative and hedging activities, net 3,892 (5,268 ) (4,949 ) 6,238 Other income (loss) 9,642 12,295 (80,702 ) 6,446 Total non-interest expenses 124,966 135,315 150,724 145,971 Income tax expense (benefit) 40,997 40,074 (53,667 ) 44,449 Net income 126,254 109,832 103,878 147,512 Preferred stock dividends 3,397 3,920 4,124 4,199 Net income attributable to SLM Corporation common stock $ 122,857 $ 105,912 $ 99,754 $ 143,313 Basic earnings per common share attributable to SLM Corporation (1) $ 0.28 $ 0.24 $ 0.23 $ 0.33 Diluted earnings per common share attributable to SLM Corporation (1) $ 0.28 $ 0.24 $ 0.23 $ 0.33 _____ (1) Basic and diluted earnings per common share attributable to SLM Corporation are computed independently for each of the quarters presented. Therefore, the sum of quarterly basic and diluted earnings per common share information may not equal annual basic and diluted earnings per common share. |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Thousands | Jul. 01, 2018 | Jan. 01, 2018 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2020 | Jan. 01, 2019 | Jan. 01, 2017 | Dec. 31, 2016 | Apr. 30, 2014 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Private Education Loan loss confirmation period | 1 year | ||||||||||||||||||
FFELP loan loss confirmation period | 2 years | ||||||||||||||||||
Percentage of Private Education Loans related to borrowers inschool, grace or deferment | 25.00% | 26.00% | 25.00% | 26.00% | |||||||||||||||
Interest rate reduction and forbearance usage (greater than) | 3 months | ||||||||||||||||||
Interest rate offered to borrowers facing financial difficulty | 4.00% | 4.00% | |||||||||||||||||
Period of forbearance period to be classified as TDR | 3 months | ||||||||||||||||||
Period of forbearance | 24 months | ||||||||||||||||||
Period after grace period for forbearance allowance for loans | 9 months | ||||||||||||||||||
Forbearance period after grace period for loans | 6 months | ||||||||||||||||||
Percentage of loans granted forbearance (as a percentage) | 50.00% | 57.00% | 50.00% | 57.00% | |||||||||||||||
Percentage reimbursement on all qualifying default claims period two (as a percentage) | 97.00% | 97.00% | |||||||||||||||||
Percentage reimbursement on all qualifying default claims period one (as a percentage) | 98.00% | 98.00% | |||||||||||||||||
Percentage reimbursement on all qualifying default claims period three (as a percentage) | 100.00% | 100.00% | |||||||||||||||||
Period of loss emergence to estimate credit losses incurred | 2 years | ||||||||||||||||||
Period of notification for withdrawal of deposits (less than or equal to) | 7 days | ||||||||||||||||||
Constant prepayment rate for Private Education Loans (in percentage) | 6.92% | 6.83% | |||||||||||||||||
Variable rate | 1.05 | 1.05 | |||||||||||||||||
Gains on sales of loans, net | $ 0 | $ 2,060 | $ 0 | ||||||||||||||||
Asset balance related to securitization trust (as a percentage) | 10.00% | ||||||||||||||||||
Notional derivative contracts | $ 9,900,000 | $ 9,900,000 | |||||||||||||||||
Basis increase to our hedged deposit balances | 52,000 | $ 27,000 | 52,000 | 27,000 | |||||||||||||||
Reclassification resulting from the adoption of ASU No. 2017-12 | $ 165 | ||||||||||||||||||
Gains (losses) on derivatives and hedging activities, net | 17,825 | (87) | (8,266) | ||||||||||||||||
Income tax expense | 34,666 | $ 40,701 | $ 33,801 | $ 56,296 | 44,449 | $ (53,667) | $ 40,074 | $ 40,997 | 165,464 | 71,853 | 202,531 | ||||||||
Discrete tax expense | 15,000 | ||||||||||||||||||
Reclassification resulting from the adoption of ASU No. 2018-02 | $ 600 | ||||||||||||||||||
Income taxes receivable, net | 88,844 | 41,570 | 88,844 | 41,570 | |||||||||||||||
Increase in allowance for loan losses | 441,912 | 341,121 | 441,912 | 341,121 | $ 251,475 | $ 184,701 | |||||||||||||
Increase in exposure for unfunded commitments | 254,731 | 224,951 | 254,731 | 224,951 | |||||||||||||||
Increase in deferred tax asset | 113,900 | 95,804 | 113,900 | 95,804 | |||||||||||||||
Navient | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Deferred tax asset discount | $ 27,000 | ||||||||||||||||||
Deferred tax liability | 15,000 | 15,000 | 310,000 | ||||||||||||||||
Deferred taxes | 283,000 | ||||||||||||||||||
Income taxes receivable, net | $ 15,000 | 15,000 | 291,000 | ||||||||||||||||
Deferred tax assets | 310,000 | ||||||||||||||||||
Deferred tax asset discount | $ 19,000 | ||||||||||||||||||
Retained Earnings | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Reclassification resulting from the adoption of ASU No. 2017-12 | $ (264) | ||||||||||||||||||
Reclassification resulting from the adoption of ASU No. 2018-02 | (592) | ||||||||||||||||||
Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Reclassification resulting from the adoption of ASU No. 2018-02 | $ 592 | ||||||||||||||||||
Accounting Standards Update 2017-12 | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Reclassification resulting from the adoption of ASU No. 2017-12 | 861 | ||||||||||||||||||
Accounting Standards Update 2017-12 | Retained Earnings | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Reclassification resulting from the adoption of ASU No. 2017-12 | 591 | ||||||||||||||||||
Accounting Standards Update 2017-12 | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Reclassification resulting from the adoption of ASU No. 2017-12 | $ 270 | ||||||||||||||||||
Accounting Standards Update 2017-12 | Fair Value | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Basis increase to our hedged deposit balances | $ 2,000 | ||||||||||||||||||
Accounting Standards Update 2017-12 | Fair Value | Retained Earnings | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Reclassification resulting from the adoption of ASU No. 2017-12 | 800 | ||||||||||||||||||
Accounting Standards Update 2017-12 | Fair Value | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Gains (losses) on derivatives and hedging activities, net | 3,000 | ||||||||||||||||||
Accounting Standards Update 2017-12 | Cash Flow | Retained Earnings | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Reclassification resulting from the adoption of ASU No. 2017-12 | 200 | ||||||||||||||||||
Accounting Standards Update 2017-12 | Cash Flow | Accumulated Other Comprehensive Income (Loss) | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Reclassification resulting from the adoption of ASU No. 2017-12 | $ 300 | ||||||||||||||||||
Adjustments for New Accounting Pronouncement | Accounting Standards Update 2016-09 | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Reclassification resulting from the adoption of ASU No. 2017-12 | $ 200 | ||||||||||||||||||
Income tax expense | $ 8,500 | ||||||||||||||||||
Accounting Standards Update 2016-02 | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Operating lease, right-of-use asset | $ 34,000 | ||||||||||||||||||
Finance lease, liability | $ 34,000 | ||||||||||||||||||
Accounting Standards Update 2016-13 | Forecast | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Increase in allowance for loan losses | $ 1,100,000 | ||||||||||||||||||
Increase in deferred tax asset | 300,000 | ||||||||||||||||||
Cumulative effect adjustment estimated reduction to retained earnings | 950,000 | ||||||||||||||||||
Accounting Standards Update 2016-13 | Forecast | Unfunded Loan Commitment | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Increase in exposure for unfunded commitments | $ 115,000 | ||||||||||||||||||
CME | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Notional derivative contracts | 9,400,000 | $ 9,400,000 | |||||||||||||||||
Percent of total notional derivative contracts | 95.00% | ||||||||||||||||||
Amount of variation margin included as settlement | $ (107,000) | ||||||||||||||||||
LCH | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Notional derivative contracts | 500,000 | $ 500,000 | |||||||||||||||||
Percent of total notional derivative contracts | 5.00% | ||||||||||||||||||
Amount of variation margin included as settlement | $ 8,000 | ||||||||||||||||||
Discontinued Operations, Disposed of by Sale | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Split Loans portfolio sales price | 43,000 | ||||||||||||||||||
Gains on sales of loans, net | $ 2,000 | ||||||||||||||||||
Split Loans | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Private education loans | $ 43,000 | 43,000 | |||||||||||||||||
Net gain | $ 2,000 | ||||||||||||||||||
Maximum | |||||||||||||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||||||||||||||
Loan delinquent period | 120 days | ||||||||||||||||||
Interest rate offered to borrowers facing financial difficulty | 4.00% |
Cash and Cash Equivalents (Deta
Cash and Cash Equivalents (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash and Cash Equivalents [Abstract] | ||
Cash due from Federal Reserve Bank | $ 5,500,000,000 | $ 2,500,000,000 |
Cash due from depository institutions | 93,000,000 | 62,000,000 |
Outstanding cash equivalents | 0 | 0 |
Interest income from term deposit facility | 300,000 | 200,000 |
Funds on deposit under the Term Deposit Facility program | $ 0 | $ 0 |
Investments - Amortized Cost a
Investments - Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available for sale: | ||
Amortized Cost | $ 485,756 | $ 182,325 |
Gross Unrealized Gains | 2,675 | 178 |
Gross Unrealized Losses | (762) | (6,258) |
Estimated Fair Value | 487,669 | 176,245 |
Mortgage-backed securities | ||
Available for sale: | ||
Amortized Cost | 215,888 | 159,937 |
Gross Unrealized Gains | 1,895 | 155 |
Gross Unrealized Losses | (658) | (5,517) |
Estimated Fair Value | 217,125 | 154,575 |
Utah Housing Corporation bonds | ||
Available for sale: | ||
Amortized Cost | 19,474 | 22,388 |
Gross Unrealized Gains | 145 | 23 |
Gross Unrealized Losses | (83) | (741) |
Estimated Fair Value | 19,536 | $ 21,670 |
U.S. government-sponsored enterprises | ||
Available for sale: | ||
Amortized Cost | 250,394 | |
Gross Unrealized Gains | 635 | |
Gross Unrealized Losses | (21) | |
Estimated Fair Value | $ 251,008 |
Investments - Gross Unrealized
Investments - Gross Unrealized Losses and Fair Value for Mortgage-Backed in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Less than 12 months | ||
Gross Unrealized Losses | $ (239) | $ (228) |
Estimated Fair Value | 40,601 | 16,948 |
12 months or more | ||
Gross Unrealized Losses | (523) | (6,030) |
Estimated Fair Value | 53,545 | 142,184 |
Gross Unrealized Losses | (762) | (6,258) |
Estimated Fair Value | 94,146 | 159,132 |
Mortgage-backed securities | ||
Less than 12 months | ||
Gross Unrealized Losses | (218) | (228) |
Estimated Fair Value | 25,624 | 16,948 |
12 months or more | ||
Gross Unrealized Losses | (440) | (5,289) |
Estimated Fair Value | 42,448 | 125,537 |
Gross Unrealized Losses | (658) | (5,517) |
Estimated Fair Value | 68,072 | 142,485 |
Utah Housing Corporation bonds | ||
Less than 12 months | ||
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 0 | 0 |
12 months or more | ||
Gross Unrealized Losses | (83) | (741) |
Estimated Fair Value | 11,097 | 16,647 |
Gross Unrealized Losses | (83) | (741) |
Estimated Fair Value | 11,097 | $ 16,647 |
U.S. government-sponsored enterprises | ||
Less than 12 months | ||
Gross Unrealized Losses | (21) | |
Estimated Fair Value | 14,977 | |
12 months or more | ||
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 0 | |
Gross Unrealized Losses | (21) | |
Estimated Fair Value | $ 14,977 |
Investments - Additional Infor
Investments - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Sep. 30, 2019USD ($) | Jun. 30, 2018USD ($)security | Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($) | |
Investment Holdings [Line Items] | |||||
Amortized Cost | $ 485,756 | $ 182,325 | |||
Par value of mortgage-backed securities pledged to FRB | 252,000 | 147,000 | |||
Gain on equity securities investment | $ 8,000 | ||||
Non-marketable securities investment | 26,000 | 8,000 | |||
Low income housing tax credit investments | 6,000 | 4,000 | $ 1,000 | ||
Amount of amortization reported in income tax expense | 4,000 | 4,000 | $ 1,000 | ||
Total carrying value of LIHTC investments | 58,000 | 48,000 | |||
Liability for unfunded commitments | 29,000 | 37,000 | |||
Mortgage-backed securities | |||||
Investment Holdings [Line Items] | |||||
Amortized Cost | $ 215,888 | $ 159,937 | |||
Number of mortgage-backed securities sold | security | 9 | ||||
Proceeds from sale of securities | $ 41,000 | ||||
Recognized loss from sale of securities | $ 2,000 | ||||
Number of mortgage-backed securities with unrealized losses | security | 33 | 74 | |||
Number of mortgage-backed securities | security | 107 | 86 | |||
Utah Housing Corporation bonds | |||||
Investment Holdings [Line Items] | |||||
Amortized Cost | $ 19,474 | $ 22,388 | |||
Utah Housing Corporation bonds | Aa3 Rating | |||||
Investment Holdings [Line Items] | |||||
Amortized Cost | 19,000 | $ 22,000 | |||
U.S. government-sponsored enterprises | |||||
Investment Holdings [Line Items] | |||||
Amortized Cost | $ 250,394 | ||||
Number of government sponsored securities | security | 14 | ||||
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions | security | 1 | ||||
Government National Mortgage Association Certificates and Obligations (GNMA) | Mortgage-backed securities | |||||
Investment Holdings [Line Items] | |||||
Amortized Cost | $ 54,000 | ||||
Number of mortgage-backed securities with unrealized losses | security | 18 | 34 | |||
Federal National Mortgage Association Certificates and Obligations (FNMA) | Mortgage-backed securities | |||||
Investment Holdings [Line Items] | |||||
Amortized Cost | $ 106,000 | ||||
Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) | Mortgage-backed securities | |||||
Investment Holdings [Line Items] | |||||
Amortized Cost | $ 56,000 |
Investments - Maturity Table (
Investments - Maturity Table (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 485,756 | $ 182,325 |
Estimated Fair Value | 487,669 | $ 176,245 |
Maturity 2020 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 77,240 | |
Estimated Fair Value | 77,385 | |
Maturity 2021 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 138,157 | |
Estimated Fair Value | 138,640 | |
Maturity 2022 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 34,997 | |
Estimated Fair Value | 34,983 | |
Maturity 2038 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 176 | |
Estimated Fair Value | 191 | |
Maturity 2039 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,597 | |
Estimated Fair Value | 2,778 | |
Maturity 2042 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,196 | |
Estimated Fair Value | 7,050 | |
Maturity 2043 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,661 | |
Estimated Fair Value | 11,813 | |
Maturity 2044 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 17,300 | |
Estimated Fair Value | 17,487 | |
Maturity 2045 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 18,280 | |
Estimated Fair Value | 18,332 | |
Maturity 2046 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 28,892 | |
Estimated Fair Value | 28,822 | |
Maturity 2047 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 45,411 | |
Estimated Fair Value | 45,353 | |
Maturity 2048 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,154 | |
Estimated Fair Value | 12,478 | |
Maturity 2049 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 91,695 | |
Estimated Fair Value | $ 92,357 |
Loans Held for Investment - Ad
Loans Held for Investment - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||
Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jul. 01, 2006 | Jun. 30, 2006 | Sep. 30, 1993 | |
Finance Receivable Transferred To Held For Sale [Line Items] | |||||||
Private loans indexed to LIBOR | 58.00% | 67.00% | |||||
Gains on sales of loans, net | $ 0 | $ 2,060,000 | $ 0 | ||||
Tier 1 of government guarantee | 97.00% | ||||||
Tier 2 of government guarantee | 98.00% | ||||||
Tier 3 of government guarantee | 100.00% | ||||||
Estimated weighted average life of student loans | 5 years 4 months 24 days | 5 years 5 months | |||||
Loans currently in repayment status that were subject to interest rate reductions | 7.20% | 6.40% | |||||
Period of loans past due that have accrued interest | 90 days | ||||||
Loans in nonaccrual status | $ 0 | $ 0 | |||||
Percentage of loans concentrated in major states | 39.40% | 39.90% | |||||
Percentage of aggregate outstanding loans held for investment | 5.00% | ||||||
FFELP Loans | |||||||
Finance Receivable Transferred To Held For Sale [Line Items] | |||||||
Ninety or more days delinquent | $ 48,000,000 | $ 43,000,000 | |||||
Private Education Loans | |||||||
Finance Receivable Transferred To Held For Sale [Line Items] | |||||||
Ninety or more days delinquent | 63,000,000 | 51,000,000 | |||||
Private Education Loans | |||||||
Finance Receivable Transferred To Held For Sale [Line Items] | |||||||
Loans pledged to borrower in custody | $ 3,400,000,000 | $ 3,400,000,000 | |||||
Maximum | |||||||
Finance Receivable Transferred To Held For Sale [Line Items] | |||||||
Interest rate reduction | 4.00% | ||||||
Increase to life of loan defaults | 14.00% | ||||||
Minimum | |||||||
Finance Receivable Transferred To Held For Sale [Line Items] | |||||||
Interest rate reduction | 2.00% | ||||||
Increase to life of loan defaults | 4.00% | ||||||
Discontinued Operations, Disposed of by Sale | |||||||
Finance Receivable Transferred To Held For Sale [Line Items] | |||||||
Split Loans portfolio sales price | $ 43,000,000 | ||||||
Gains on sales of loans, net | $ 2,000,000 |
Loans Held for Investment - St
Loans Held for Investment - Student Loan Portfolio by Program (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ (441,912) | $ (341,121) | $ (251,475) | $ (184,701) |
Loans held for investment, net | 24,667,792 | 22,270,919 | ||
Private Education Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Private Education Loans | 23,189,591 | 20,504,465 | ||
Deferred origination costs and unamortized premium/ (discount) | 81,224 | 68,321 | ||
Allowance for loan losses | (374,300) | (277,943) | ||
Loans held for investment, net | 22,896,515 | 20,294,843 | ||
FFELP Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Private Education Loans | 783,306 | 846,487 | ||
Deferred origination costs and unamortized premium/ (discount) | 2,143 | 2,379 | ||
Allowance for loan losses | (1,633) | (977) | ||
Loans held for investment, net | 783,816 | 847,889 | ||
Personal Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Private Education Loans | 1,049,007 | 1,190,091 | ||
Deferred origination costs and unamortized premium/ (discount) | 513 | 297 | ||
Allowance for loan losses | (65,877) | (62,201) | ||
Loans held for investment, net | 983,643 | 1,128,187 | ||
Credit Cards | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Private Education Loans | 3,884 | 0 | ||
Deferred origination costs and unamortized premium/ (discount) | 36 | 0 | ||
Allowance for loan losses | (102) | 0 | ||
Loans held for investment, net | 3,818 | 0 | ||
Fixed Income Interest Rate | Private Education Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Private Education Loans | 9,830,301 | 6,759,019 | ||
Variable Income Interest Rate | Private Education Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Private Education Loans | $ 13,359,290 | $ 13,745,446 |
Loans Held for Investment - _2
Loans Held for Investment - Student Loan Portfolio Average Balances (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Average balance of Private Education Loans | $ 22,225,473 | $ 19,282,500 | $ 16,176,351 |
Average Balance, FFELP Loans | 814,198 | 888,301 | 970,738 |
Average Balance of Personal Loans | 1,141,503 | 900,152 | 112,644 |
Average Balance, Total portfolio | $ 24,181,174 | $ 21,070,953 | $ 17,259,733 |
Weighted Average Interest Rate, Private Education Loans | 9.32% | 9.10% | 8.43% |
Weighted Average Interest Rate, FFELP Loans | 4.79% | 4.57% | 3.91% |
Weighted Average Interest Rate of Personal Loans | 12.09% | 11.08% | 9.90% |
Loans Held for Investment - By
Loans Held for Investment - By Region (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Loans held for investment by Region [Line Items] | ||
Percentage of Loans concentrated in major states | 39.40% | 39.90% |
New York | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 10.10% | 10.30% |
California | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 9.40% | 9.30% |
Pennsylvania | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 8.40% | 8.50% |
New Jersey | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 6.60% | 6.80% |
Texas | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 4.90% | |
Illinois | ||
Loans held for investment by Region [Line Items] | ||
Percentage of Loans held in state | 5.00% |
Allowance for Loan Losses - Al
Allowance for Loan Losses - Allowance for Credit Losses and Recorded Investments in Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan Losses | |||
Beginning balance | $ 341,121 | $ 251,475 | $ 184,701 |
Total provision | 353,934 | 244,584 | 185,595 |
Charge-offs | (284,114) | (175,526) | (131,596) |
Recoveries | 30,971 | 21,804 | 17,646 |
Net charge-offs | (253,143) | (153,722) | (113,950) |
Loan sales | (1,216) | (4,871) | |
Ending Balance | 441,912 | 341,121 | 251,475 |
Allowance: | |||
Ending balance: individually evaluated for impairment | 186,697 | 120,110 | 94,682 |
Ending balance: collectively evaluated for impairment | 255,215 | 221,011 | 156,793 |
Loans: | |||
Ending balance: individually evaluated for impairment | 1,581,966 | 1,257,856 | 990,351 |
Ending balance: collectively evaluated for impairment | 23,443,822 | 21,283,187 | 17,769,756 |
FFELP Loans | |||
Allowance for Loan Losses | |||
Beginning balance | 977 | 1,132 | 2,171 |
Total provision | 1,478 | 980 | (85) |
Charge-offs | (822) | (1,135) | (954) |
Recoveries | 0 | 0 | 0 |
Net charge-offs | (822) | (1,135) | (954) |
Loan sales | 0 | 0 | |
Ending Balance | 1,633 | 977 | 1,132 |
Allowance: | |||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 1,633 | 977 | 1,132 |
Loans: | |||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | $ 783,306 | $ 846,487 | $ 927,660 |
Net charge-offs as a percentage of average loans in repayment | 0.13% | 0.16% | 0.13% |
Allowance as a percentage of the ending total loan balance | 0.21% | 0.12% | 0.12% |
Allowance as a percentage of the ending loans in repayment | 0.26% | 0.15% | 0.15% |
Allowance coverage of net charge-offs | 1.99 | 0.86 | 1.19 |
Ending total loans, gross | $ 783,306 | $ 846,487 | $ 927,660 |
Average loans in repayment | 631,029 | 691,406 | 745,039 |
Ending loans in repayment | 617,646 | 665,807 | 746,456 |
Private Education Loans | |||
Allowance for Loan Losses | |||
Beginning balance | 277,943 | 243,715 | 182,472 |
Total provision | 279,570 | 169,287 | 178,542 |
Charge-offs | (208,978) | (154,701) | (130,063) |
Recoveries | 25,765 | 20,858 | 17,635 |
Net charge-offs | (183,213) | (133,843) | (112,428) |
Loan sales | (1,216) | (4,871) | |
Ending Balance | 374,300 | 277,943 | 243,715 |
Allowance: | |||
Ending balance: individually evaluated for impairment | 186,697 | 120,110 | 94,682 |
Ending balance: collectively evaluated for impairment | 187,603 | 157,833 | 149,033 |
Loans: | |||
Ending balance: individually evaluated for impairment | 1,581,966 | 1,257,856 | 990,351 |
Ending balance: collectively evaluated for impairment | $ 21,607,625 | $ 19,246,609 | $ 16,441,816 |
Net charge-offs as a percentage of average loans in repayment | 1.17% | 1.01% | 1.03% |
Allowance as a percentage of the ending total loan balance | 1.61% | 1.36% | 1.40% |
Allowance as a percentage of the ending loans in repayment | 2.23% | 1.90% | 2.00% |
Allowance coverage of net charge-offs | 2.04 | 2.08 | 2.17 |
Ending total loans, gross | $ 23,189,591 | $ 20,504,465 | $ 17,432,167 |
Average loans in repayment | 15,605,927 | 13,303,801 | 10,881,058 |
Ending loans in repayment | 16,787,670 | 14,666,856 | 12,206,033 |
Personal Loans | |||
Allowance for Loan Losses | |||
Beginning balance | 62,201 | 6,628 | 58 |
Total provision | 72,783 | 74,317 | 7,138 |
Charge-offs | (74,313) | (19,690) | (579) |
Recoveries | 5,206 | 946 | 11 |
Net charge-offs | (69,107) | (18,744) | (568) |
Loan sales | 0 | 0 | |
Ending Balance | 65,877 | 62,201 | 6,628 |
Allowance: | |||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 65,877 | 62,201 | 6,628 |
Loans: | |||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | $ 1,049,007 | $ 1,190,091 | $ 400,280 |
Net charge-offs as a percentage of average loans in repayment | 6.07% | 2.11% | 0.47% |
Allowance as a percentage of the ending total loan balance | 6.28% | 5.23% | 1.66% |
Allowance as a percentage of the ending loans in repayment | 6.28% | 5.23% | 1.66% |
Allowance coverage of net charge-offs | 0.95 | 3.32 | 11.67 |
Ending total loans, gross | $ 1,049,007 | $ 1,190,091 | $ 400,280 |
Average loans in repayment | 1,138,887 | 889,348 | 119,606 |
Ending loans in repayment | 1,049,007 | 1,190,091 | $ 400,280 |
Credit Cards | |||
Allowance for Loan Losses | |||
Beginning balance | 0 | ||
Total provision | 103 | ||
Charge-offs | (1) | ||
Recoveries | 0 | ||
Net charge-offs | (1) | ||
Ending Balance | 102 | $ 0 | |
Allowance: | |||
Ending balance: individually evaluated for impairment | 0 | ||
Ending balance: collectively evaluated for impairment | 102 | ||
Loans: | |||
Ending balance: individually evaluated for impairment | 0 | ||
Ending balance: collectively evaluated for impairment | $ 3,884 | ||
Net charge-offs as a percentage of average loans in repayment | 0.13% | ||
Allowance as a percentage of the ending total loan balance | 2.63% | ||
Allowance as a percentage of the ending loans in repayment | 2.63% | ||
Allowance coverage of net charge-offs | 102 | ||
Ending total loans, gross | $ 3,884 | ||
Average loans in repayment | 786 | ||
Ending loans in repayment | $ 3,884 |
Allowance for Loan Losses - Ad
Allowance for Loan Losses - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Jul. 01, 2006 | |
Schedule Of Allowance For Credit Losses And Recorded Investment In Financing Receivables Table [Line Items] | ||||
Interest rate offered to borrowers facing financial difficulty | 4.00% | |||
Interest rate offered to borrowers facing financial difficulty, period | 2 years | |||
Percentage of loans in full and interest repayment status that are subject to interest rate reductions | 7.20% | 6.40% | ||
Percentage of loans granted forbearance (as a percentage) | 50.00% | 57.00% | ||
Criteria for loans to be considered as nonperforming | 90 days | |||
Tier 1 of government guarantee (at least) | 97.00% | |||
TDR payment default period | 60 days | |||
Period of loans past due that have accrued interest | 90 days | |||
FFELP Loans | ||||
Schedule Of Allowance For Credit Losses And Recorded Investment In Financing Receivables Table [Line Items] | ||||
Tier 1 of government guarantee (at least) | 97.00% | |||
Maximum | ||||
Schedule Of Allowance For Credit Losses And Recorded Investment In Financing Receivables Table [Line Items] | ||||
Interest rate offered to borrowers facing financial difficulty | 4.00% | |||
Minimum | ||||
Schedule Of Allowance For Credit Losses And Recorded Investment In Financing Receivables Table [Line Items] | ||||
Interest rate offered to borrowers facing financial difficulty | 2.00% |
Allowance for Loan Losses - Re
Allowance for Loan Losses - Recorded Investment, Unpaid Principal Balance and Related Allowance for TDR Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
TDR Loans, Recorded Investment | $ 1,612,896 | $ 1,280,713 |
TDR Loans, Unpaid Principal Balance | 1,581,966 | 1,257,856 |
TDR Loans, Allowance | $ 186,697 | $ 120,110 |
Allowance for Loan Losses - Av
Allowance for Loan Losses - Average Recorded Investment and Interest Income Recognized for TDR (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
TDR Loans, Average Recorded Investment | $ 1,434,137 | $ 1,141,993 | $ 822,145 |
TDR Loans, Interest Income Recognized | $ 95,507 | $ 77,670 | $ 61,119 |
Allowance for Loan Losses - Ag
Allowance for Loan Losses - Age Analysis of Past Due Loan Delinquencies (Details) - Student Loan - Consumer Portfolio Segment - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans in in-school/grace/deferment | $ 5,687,405 | $ 5,260,445 | $ 4,757,732 |
Loans in forbearance | 714,516 | 577,164 | 468,402 |
TDR loans in repayment and percentage of each status: | |||
Loans current | 16,315,651 | 14,289,705 | 11,911,128 |
Total TDR loans in repayment | $ 16,787,670 | $ 14,666,856 | $ 12,206,033 |
Loans current, in percentage | 97.20% | 97.40% | 97.60% |
Loans in repayment, in percentage | 100.00% | 100.00% | 100.00% |
Total TDR loans, gross | $ 23,189,591 | $ 20,504,465 | $ 17,432,167 |
Loans delinquent 31-60 days | |||
TDR loans in repayment and percentage of each status: | |||
Loans delinquent | $ 288,051 | $ 231,216 | $ 179,002 |
Loans delinquent (in percentage) | 1.70% | 1.60% | 1.50% |
Loans delinquent 61-90 days | |||
TDR loans in repayment and percentage of each status: | |||
Loans delinquent | $ 121,302 | $ 95,105 | $ 78,292 |
Loans delinquent (in percentage) | 0.70% | 0.70% | 0.60% |
Loans delinquent greater than 90 days | |||
TDR loans in repayment and percentage of each status: | |||
Loans delinquent | $ 62,666 | $ 50,830 | $ 37,611 |
Loans delinquent (in percentage) | 0.40% | 0.30% | 0.30% |
Troubled Debt Restructured Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans in in-school/grace/deferment | $ 87,749 | $ 69,212 | |
Loans in forbearance | 99,054 | 69,796 | |
TDR loans in repayment and percentage of each status: | |||
Loans current | 1,230,954 | 994,411 | |
Total TDR loans in repayment | $ 1,395,163 | $ 1,118,848 | |
Loans current, in percentage | 88.20% | 88.90% | |
Loans in repayment, in percentage | 100.00% | 100.00% | |
Total TDR loans, gross | $ 1,581,966 | $ 1,257,856 | |
Troubled Debt Restructured Loans | Loans delinquent 31-60 days | |||
TDR loans in repayment and percentage of each status: | |||
Loans delinquent | $ 85,555 | $ 63,074 | |
Loans delinquent (in percentage) | 6.10% | 5.60% | |
Troubled Debt Restructured Loans | Loans delinquent 61-90 days | |||
TDR loans in repayment and percentage of each status: | |||
Loans delinquent | $ 49,626 | $ 36,804 | |
Loans delinquent (in percentage) | 3.60% | 3.30% | |
Troubled Debt Restructured Loans | Loans delinquent greater than 90 days | |||
TDR loans in repayment and percentage of each status: | |||
Loans delinquent | $ 29,028 | $ 24,559 | |
Loans delinquent (in percentage) | 2.10% | 2.20% |
Allowance for Loan Losses - Mo
Allowance for Loan Losses - Modified Loan Accounts for TDR (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||
Modified Loans | $ 515,398 | $ 394,639 | $ 498,812 |
Charge-offs | 74,137 | 52,823 | 48,469 |
Payment-Default | $ 111,810 | $ 90,231 | $ 92,532 |
Allowance for Loan Losses - Pr
Allowance for Loan Losses - Private Education Loan Portfolio Stratified by Key Credit Quality Indicators (Detail) - Consumer Portfolio Segment - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
With cosigner | Student Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 20,709,636 | $ 18,378,398 |
Private Education Loans with cosigner in percent | 89.00% | 90.00% |
Without cosigner | Student Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 2,479,955 | $ 2,126,067 |
Private Education Loans without cosigner in percent | 11.00% | 10.00% |
Cosigners | Student Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 23,189,591 | $ 20,504,465 |
Total in percent | 100.00% | 100.00% |
School Type/FICO Scores | Student Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 23,189,591 | $ 20,504,465 |
Total in percent | 100.00% | 100.00% |
School Type/FICO Scores | Student Loan | FICO score less than 670 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 1,665,589 | $ 1,409,789 |
Private Education Loans at origination | 7.00% | 7.00% |
School Type/FICO Scores | Student Loan | FICO score 670-699 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 3,570,025 | $ 3,106,983 |
Private Education Loans at origination | 16.00% | 15.00% |
School Type/FICO Scores | Student Loan | FICO score 700-749 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 7,670,748 | $ 6,759,721 |
Private Education Loans at origination | 33.00% | 33.00% |
School Type/FICO Scores | Student Loan | FICO score greater than 750 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 10,283,229 | $ 9,227,972 |
Private Education Loans at origination | 44.00% | 45.00% |
School Type/FICO Scores | Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 1,049,007 | $ 1,190,091 |
Total in percent | 100.00% | 100.00% |
School Type/FICO Scores | Personal Loans | FICO score less than 670 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 47,367 | $ 77,702 |
Private Education Loans at origination | 4.00% | 7.00% |
School Type/FICO Scores | Personal Loans | FICO score 670-699 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 259,098 | $ 339,053 |
Private Education Loans at origination | 25.00% | 28.00% |
School Type/FICO Scores | Personal Loans | FICO score 700-749 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 521,856 | $ 554,700 |
Private Education Loans at origination | 50.00% | 47.00% |
School Type/FICO Scores | Personal Loans | FICO score greater than 750 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 220,686 | $ 218,636 |
Private Education Loans at origination | 21.00% | 18.00% |
School FICO, Refreshed Amounts | Student Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 23,189,591 | $ 20,504,465 |
Total in percent | 100.00% | 100.00% |
School FICO, Refreshed Amounts | Student Loan | FICO score less than 670 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 2,979,437 | $ 2,416,979 |
Private Education Loans at origination | 13.00% | 12.00% |
School FICO, Refreshed Amounts | Student Loan | FICO score 670-699 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 2,883,122 | $ 2,504,467 |
Private Education Loans at origination | 13.00% | 12.00% |
School FICO, Refreshed Amounts | Student Loan | FICO score 700-749 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 6,806,602 | $ 6,144,489 |
Private Education Loans at origination | 29.00% | 30.00% |
School FICO, Refreshed Amounts | Student Loan | FICO score greater than 750 | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 10,520,430 | $ 9,438,530 |
Private Education Loans at origination | 45.00% | 46.00% |
Seasoning | Student Loan | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 23,189,591 | $ 20,504,465 |
Total in percent | 100.00% | 100.00% |
Seasoning based on monthly scheduled payments due from 1-12 payments, in percent | 23.00% | 24.00% |
Seasoning based on monthly scheduled payments due from 13 - 24 payments, in percent | 17.00% | 17.00% |
Seasoning based on monthly scheduled payments due from 25 - 36 payments, in percent | 12.00% | 13.00% |
Seasoning based on monthly scheduled payments due from 37 - 48 payments, in percent | 10.00% | 10.00% |
Seasoning based on monthly scheduled payments due from more than 48 payments, in percent | 13.00% | 10.00% |
Seasoning - based on monthly scheduled payments due from not yet in repayment, in percent | 25.00% | 26.00% |
Seasoning | Student Loan | 1-12 payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 5,351,702 | $ 4,969,334 |
Seasoning | Student Loan | 13-24 payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 4,004,151 | 3,481,235 |
Seasoning | Student Loan | 25-36 payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 2,902,365 | 2,741,954 |
Seasoning | Student Loan | 37-48 payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 2,213,944 | 1,990,049 |
Seasoning | Student Loan | More than 48 payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 3,030,024 | 2,061,448 |
Seasoning | Student Loan | Not yet in repayment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 5,687,405 | 5,260,445 |
Seasoning | Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 1,049,007 | $ 1,190,091 |
Total in percent | 100.00% | 100.00% |
Seasoning based on monthly scheduled payments due from 1-12 payments, in percent | 45.00% | 85.00% |
Seasoning based on monthly scheduled payments due from 13 - 24 payments, in percent | 48.00% | 15.00% |
Seasoning based on monthly scheduled payments due from 25 - 36 payments, in percent | 7.00% | 0.00% |
Seasoning based on monthly scheduled payments due from 37 - 48 payments, in percent | 0.00% | 0.00% |
Seasoning based on monthly scheduled payments due from more than 48 payments, in percent | 0.00% | 0.00% |
Seasoning | Personal Loans | 1-12 payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 469,940 | $ 1,008,758 |
Seasoning | Personal Loans | 13-24 payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 505,318 | 181,333 |
Seasoning | Personal Loans | 25-36 payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 73,749 | 0 |
Seasoning | Personal Loans | 37-48 payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | 0 | 0 |
Seasoning | Personal Loans | More than 48 payments | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Private Education Loans | $ 0 | $ 0 |
Allowance for Loan Losses - Lo
Allowance for Loan Losses - Loan Status of Private Education Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ (441,912) | $ (341,121) | $ (251,475) | $ (184,701) |
Consumer Portfolio Segment | Student Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans in in-school/grace/deferment | 5,687,405 | 5,260,445 | 4,757,732 | |
Loans in forbearance | 714,516 | 577,164 | 468,402 | |
Loans current | $ 16,315,651 | $ 14,289,705 | $ 11,911,128 | |
Loans current, in percentage | 97.20% | 97.40% | 97.60% | |
Total TDR loans in repayment | $ 16,787,670 | $ 14,666,856 | $ 12,206,033 | |
Loans in repayment, in percentage | 100.00% | 100.00% | 100.00% | |
Total Private Education Loans, gross | $ 23,189,591 | $ 20,504,465 | $ 17,432,167 | |
Private Education Loans deferred origination costs and unamortized premium/(discount) | 81,224 | 68,321 | 56,378 | |
Total Private Education Loans | 23,270,815 | 20,572,786 | 17,488,545 | |
Allowance for loan losses | (374,300) | (277,943) | (243,715) | |
Private Education Loans, net | $ 22,896,515 | $ 20,294,843 | $ 17,244,830 | |
Percentage of Private Education Loans in repayment | 72.40% | 71.50% | 70.00% | |
Delinquencies as a percentage of Private Education Loans in repayment | 2.80% | 2.60% | 2.40% | |
Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance | 4.10% | 3.80% | 3.70% | |
Consumer Portfolio Segment | Student Loan | Loans delinquent 31-60 days | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans delinquent | $ 288,051 | $ 231,216 | $ 179,002 | |
Loans delinquent (in percentage) | 1.70% | 1.60% | 1.50% | |
Consumer Portfolio Segment | Student Loan | Loans delinquent 61-90 days | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans delinquent | $ 121,302 | $ 95,105 | $ 78,292 | |
Loans delinquent (in percentage) | 0.70% | 0.70% | 0.60% | |
Consumer Portfolio Segment | Student Loan | Loans delinquent greater than 90 days | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans delinquent | $ 62,666 | $ 50,830 | $ 37,611 | |
Loans delinquent (in percentage) | 0.40% | 0.30% | 0.30% |
Allowance for Loan Losses - _2
Allowance for Loan Losses - Loan Status of Personal Education Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for loan losses | $ (441,912) | $ (341,121) | $ (251,475) | $ (184,701) |
Loans held for investment (net of allowance for losses of $441,912 and $341,121, respectively) | 24,667,792 | 22,270,919 | ||
Personal Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Private Education Loans | 1,049,007 | 1,190,091 | ||
Deferred origination costs and unamortized premium/ (discount) | 513 | 297 | ||
Allowance for loan losses | (65,877) | (62,201) | ||
Loans held for investment (net of allowance for losses of $441,912 and $341,121, respectively) | 983,643 | 1,128,187 | ||
Consumer Portfolio Segment | Personal Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans current | $ 1,023,517 | $ 1,172,776 | ||
Loans current, in percentage | 97.60% | 98.50% | ||
Total TDR loans in repayment | $ 1,049,007 | $ 1,190,091 | ||
Loans in repayment, in percentage | 100.00% | 100.00% | ||
Private Education Loans | $ 1,049,007 | $ 1,190,091 | ||
Deferred origination costs and unamortized premium/ (discount) | 513 | 297 | ||
Total Personal Loans | 1,049,520 | 1,190,388 | ||
Allowance for loan losses | (65,877) | (62,201) | ||
Loans held for investment (net of allowance for losses of $441,912 and $341,121, respectively) | $ 983,643 | $ 1,128,187 | ||
Delinquencies as a percentage of Private Education Loans in repayment | 2.40% | 1.50% | ||
Consumer Portfolio Segment | Personal Loans | Loans delinquent 31-60 days | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans delinquent | $ 9,435 | $ 6,722 | ||
Loans delinquent (in percentage) | 0.90% | 0.60% | ||
Consumer Portfolio Segment | Personal Loans | Loans delinquent 61-90 days | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans delinquent | $ 7,172 | $ 5,416 | ||
Loans delinquent (in percentage) | 0.70% | 0.50% | ||
Consumer Portfolio Segment | Personal Loans | Loans delinquent greater than 90 days | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans delinquent | $ 8,883 | $ 5,177 | ||
Loans delinquent (in percentage) | 0.80% | 0.40% |
Allowance for Loan Losses - Ac
Allowance for Loan Losses - Accrued Interest Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Total Interest Receivable | $ 1,366,158 | $ 1,168,823 |
Greater Than 90 Days Past Due | 2,390 | 1,920 |
Allowance for Uncollectible Interest | $ 5,309 | $ 6,322 |
Premises and Equipment, Net -
Premises and Equipment, Net - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 214,227 | $ 170,092 |
Accumulated depreciation | (79,478) | (64,588) |
Premises and equipment, net | 134,749 | 105,504 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 12,356 | 12,356 |
Buildings and leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 105,986 | 71,919 |
Furniture, fixtures and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 25,694 | 20,794 |
Software | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 70,191 | $ 65,023 |
Premises and Equipment, Net _2
Premises and Equipment, Net - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation of premises and equipment | $ 14,669 | $ 13,829 | $ 11,171 |
Deposits - Summary of Total De
Deposits - Summary of Total Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Deposits - interest bearing | $ 24,282,906 | $ 18,942,082 |
Deposits - non-interest bearing | 1,077 | 1,076 |
Total deposits | $ 24,283,983 | $ 18,943,158 |
Deposits - Additional Informat
Deposits - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Deposits [Abstract] | |||
Deposits | $ 24,283,983 | $ 18,943,158 | |
Brokered deposits | 13,800,000 | 10,300,000 | |
Retail and other deposits | 10,500,000 | 8,600,000 | |
Aggregate of deposits of individual depositors | 6,800,000 | 5,900,000 | |
Brokered deposit placement fee | 18,000 | 13,000 | $ 9,000 |
Third party broker fees paid | 28,000 | 26,000 | $ 12,000 |
Deposits exceeding FDIC insurance limits | 963,000 | 523,000 | |
Accrued interest on deposits | $ 68,000 | $ 53,000 |
Deposits - Interest Bearing De
Deposits - Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Interest-bearing Deposit Liabilities, Domestic, by Component [Abstract] | ||
Money market | $ 9,616,547 | $ 8,687,766 |
Savings | 718,616 | 702,342 |
Certificates of deposit | 13,947,743 | 9,551,974 |
Deposits - interest bearing | $ 24,282,906 | $ 18,942,082 |
Year-End Weighted Average Stated Rate | ||
Money market | 2.04% | 2.46% |
Savings | 1.71% | 2.00% |
Certificates of deposit | 2.44% | 2.74% |
Deposits - Certificates of Dep
Deposits - Certificates of Deposits Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
One year or less | $ 4,934,933 | $ 4,098,520 |
After one year to two years | 4,279,406 | 2,045,861 |
After two years to three years | 2,807,297 | 1,479,292 |
After three years to four years | 1,285,504 | 494,654 |
After four years to five years | 548,492 | 1,274,198 |
After five years | 92,111 | 159,449 |
Total | $ 13,947,743 | $ 9,551,974 |
Borrowings - Secured Borrowings
Borrowings - Secured Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Secured borrowings: | ||
Short-Term | $ 289,230 | $ 0 |
Long-Term | 4,354,037 | 4,284,304 |
Total | 4,643,267 | 4,284,304 |
ABCP borrowings | ||
Secured borrowings: | ||
Short-Term | 289,230 | 0 |
Unsecured borrowings | ||
Secured borrowings: | ||
Short-Term | 0 | 0 |
Long-Term | 198,159 | 197,348 |
Total | 198,159 | 197,348 |
Secured borrowings | ||
Secured borrowings: | ||
Short-Term | 289,230 | 0 |
Long-Term | 4,155,878 | 4,086,956 |
Total | 4,445,108 | 4,086,956 |
Secured borrowings | Private Education Loan term securitizations: | ||
Secured borrowings: | ||
Short-Term | 0 | 0 |
Long-Term | 4,155,878 | 4,086,956 |
Total | 4,155,878 | 4,086,956 |
Secured borrowings | ABCP borrowings | ||
Secured borrowings: | ||
Short-Term | 289,230 | 0 |
Long-Term | 0 | 0 |
Total | 289,230 | 0 |
Secured borrowings | Fixed Income Interest Rate | Private Education Loan term securitizations: | ||
Secured borrowings: | ||
Short-Term | 0 | 0 |
Long-Term | 2,629,902 | 2,284,347 |
Total | 2,629,902 | 2,284,347 |
Secured borrowings | Variable Income Interest Rate | Private Education Loan term securitizations: | ||
Secured borrowings: | ||
Short-Term | 0 | 0 |
Long-Term | 1,525,976 | 1,802,609 |
Total | $ 1,525,976 | $ 1,802,609 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | Feb. 12, 2020 | Jun. 12, 2019 | Mar. 13, 2019 | Feb. 20, 2019 | Sep. 19, 2018 | Jun. 20, 2018 | Mar. 21, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 19, 2020 | Apr. 05, 2017 |
Debt Instrument [Line Items] | ||||||||||||
Amount drawn and outstanding under ABCP facility | $ 289,230,000 | $ 0 | ||||||||||
Total Issued | 1,110,000,000 | 1,900,500,000 | ||||||||||
Unsecured debt issued | $ 0 | $ 0 | $ 197,000,000 | |||||||||
Estimated weighted average life of student loans | 5 years 4 months 24 days | 5 years 5 months | ||||||||||
Discretionary uncommitted federal funds line of credit | $ 125,000,000 | |||||||||||
Lendable value of collateral | 3,200,000,000 | $ 3,100,000,000 | ||||||||||
Unsecured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount drawn and outstanding under ABCP facility | 0 | 0 | ||||||||||
ABCP borrowings | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Amount drawn and outstanding under ABCP facility | $ 289,230,000 | 0 | ||||||||||
Contractual maturity related to ABCP facility | 2 years | |||||||||||
Revolving period of contractual maturity | 1 year | |||||||||||
Amortization period of contractual maturity | 1 year | |||||||||||
Senior Unsecured Notes Due April 5, 2022 | Unsecured Debt | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Total Issued | $ 198,000,000 | $ 200,000,000 | ||||||||||
Interest rate | 5.125% | |||||||||||
Private Education Loans 2019 Term A | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Private education loan term accounted for as a secured financing | $ 453,000,000 | |||||||||||
Loans sold to third parties | $ 453,000,000 | |||||||||||
Ownership interest percentage on asset-backed financing | 100.00% | |||||||||||
Unsecured debt issued | $ 451,000,000 | |||||||||||
Loans pledged as collateral | 445,000,000 | |||||||||||
Principal amount of collateral | 417,000,000 | |||||||||||
Capitalized interest | 28,000,000 | |||||||||||
Class A and B Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated weighted average life of student loans | 4 years 4 months 28 days | 4 years 3 months 3 days | 4 years 3 months 25 days | 4 years 4 months 24 days | 4 years 5 months 4 days | |||||||
Class A and B Notes | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 1.01% | 92.00% | 0.77% | 0.76% | 0.78% | |||||||
Private Education Loans 2019 Term B | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Private education loan term accounted for as a secured financing | $ 657,000,000 | |||||||||||
Loans sold to third parties | $ 657,000,000 | |||||||||||
Ownership interest percentage on asset-backed financing | 100.00% | |||||||||||
Unsecured debt issued | $ 655,000,000 | |||||||||||
Loans pledged as collateral | 666,000,000 | |||||||||||
Principal amount of collateral | 625,000,000 | |||||||||||
Capitalized interest | 41,000,000 | |||||||||||
Private Education Loans 2018 Term A | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Private education loan term accounted for as a secured financing | $ 670,000,000 | |||||||||||
Loans sold to third parties | $ 670,000,000 | |||||||||||
Ownership interest percentage on asset-backed financing | 100.00% | |||||||||||
Unsecured debt issued | $ 668,000,000 | |||||||||||
Loans pledged as collateral | 588,000,000 | |||||||||||
Principal amount of collateral | 553,000,000 | |||||||||||
Capitalized interest | 35,000,000 | |||||||||||
Private Education Loans 2018 Term B | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Private education loan term accounted for as a secured financing | $ 687,000,000 | |||||||||||
Loans sold to third parties | $ 687,000,000 | |||||||||||
Ownership interest percentage on asset-backed financing | 100.00% | |||||||||||
Unsecured debt issued | $ 683,000,000 | |||||||||||
Loans pledged as collateral | 623,000,000 | |||||||||||
Principal amount of collateral | 585,000,000 | |||||||||||
Capitalized interest | 38,000,000 | |||||||||||
Private Education Loans 2018 Term C | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Private education loan term accounted for as a secured financing | $ 544,000,000 | |||||||||||
Loans sold to third parties | $ 544,000,000 | |||||||||||
Ownership interest percentage on asset-backed financing | 100.00% | |||||||||||
Unsecured debt issued | $ 541,000,000 | |||||||||||
Loans pledged as collateral | 502,000,000 | |||||||||||
Principal amount of collateral | 471,000,000 | |||||||||||
Capitalized interest | 31,000,000 | |||||||||||
ABS Transactions | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Private education loan term accounted for as a secured financing | $ 3,900,000,000 | |||||||||||
Private Education Loans | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Private education loan term accounted for as a secured financing | 2,700,000,000 | |||||||||||
Principal amount of collateral | 2,600,000,000 | |||||||||||
Capitalized interest | 115,000,000 | |||||||||||
Subsequent Event | Class A and B Notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Estimated weighted average life of student loans | 4 years 2 months 4 days | |||||||||||
Subsequent Event | Class A and B Notes | London Interbank Offered Rate (LIBOR) | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Basis spread on variable rate | 0.88% | |||||||||||
Commercial Paper | ABCP borrowings | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Private education loan funding | $ 750,000,000 | |||||||||||
Ownership interest percentage | 100.00% | |||||||||||
Amount drawn and outstanding under ABCP facility | $ 289,000,000 | $ 0 | ||||||||||
Commercial Paper | Subsequent Event | ABCP borrowings | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Private education loan funding | $ 2,000,000,000 |
Borrowings - Short Term Borrowi
Borrowings - Short Term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Short-term borrowings: | ||
Short-Term | $ 289,230 | $ 0 |
Maximum outstanding at any month end | 297,800 | 300,000 |
Secured Borrowing Facility | ||
Short-term borrowings: | ||
Short-Term | $ 289,230 | $ 0 |
Weighted Average Interest Rate | 1.74% | 0.00% |
Average Balance | $ 102,639 | $ 52,603 |
Weighted Average Interest Rate | 4.91% | 8.91% |
Borrowings - Long Term Borrowin
Borrowings - Long Term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | ||
Long-term borrowings | $ 4,354,037 | $ 4,284,304 |
Weighted Average Interest Rate | 3.07% | 3.27% |
Average Balance | $ 4,483,858 | $ 3,893,533 |
Floating-rate borrowings | ||
Line of Credit Facility [Line Items] | ||
Long-term borrowings | $ 1,525,976 | $ 1,802,609 |
Weighted Average Interest Rate | 2.61% | 3.26% |
Average Balance | $ 1,731,675 | $ 1,720,540 |
Fixed-rate borrowings | ||
Line of Credit Facility [Line Items] | ||
Long-term borrowings | $ 2,828,061 | $ 2,481,695 |
Weighted Average Interest Rate | 3.31% | 3.28% |
Average Balance | $ 2,752,183 | $ 2,172,993 |
Borrowings - Stated Maturity an
Borrowings - Stated Maturity and Maturity to Call Date (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
Stated maturity, 2020 | $ 3,216,459 |
Stated maturity, 2021 | 4,199,011 |
Stated maturity, 2022 | 3,403,692 |
Stated maturity, 2023 | 1,805,077 |
Stated maturity, 2024 | 1,028,583 |
Stated maturity, 2025 and after | 1,781,295 |
Maturity to Call Date, 2020 | 3,216,459 |
Maturity to Call Date, 2021 | 4,199,011 |
Maturity to Call Date, 2022 | 3,403,692 |
Maturity to Call Date, 2023 | 1,805,077 |
Maturity to Call Date, 2024 | 1,028,583 |
Maturity to Call Date, 2025 and after | 1,781,295 |
Total principal amount, maturity to call date | 15,434,117 |
Hedge accounting adjustments | 45,887 |
Total principal amount, after adjustments | 15,480,004 |
Brokered Deposits | |
Debt Instrument [Line Items] | |
Stated maturity, 2020 | 2,650,654 |
Stated maturity, 2021 | 3,691,692 |
Stated maturity, 2022 | 2,690,974 |
Stated maturity, 2023 | 1,270,385 |
Stated maturity, 2024 | 499,112 |
Stated maturity, 2025 and after | 92,822 |
Maturity to Call Date, 2020 | 2,650,654 |
Maturity to Call Date, 2021 | 3,691,692 |
Maturity to Call Date, 2022 | 2,690,974 |
Maturity to Call Date, 2023 | 1,270,385 |
Maturity to Call Date, 2024 | 499,112 |
Maturity to Call Date, 2025 and after | 92,822 |
Total principal amount, maturity to call date | 10,895,639 |
Hedge accounting adjustments | 45,887 |
Total principal amount, after adjustments | 10,941,526 |
Unsecured Debt | |
Debt Instrument [Line Items] | |
Stated maturity, 2020 | 0 |
Stated maturity, 2021 | 0 |
Stated maturity, 2022 | 200,000 |
Stated maturity, 2023 | 0 |
Stated maturity, 2024 | 0 |
Stated maturity, 2025 and after | 0 |
Maturity to Call Date, 2020 | 0 |
Maturity to Call Date, 2021 | 0 |
Maturity to Call Date, 2022 | 200,000 |
Maturity to Call Date, 2023 | 0 |
Maturity to Call Date, 2024 | 0 |
Maturity to Call Date, 2025 and after | 0 |
Total principal amount, maturity to call date | 200,000 |
Hedge accounting adjustments | 0 |
Total principal amount, after adjustments | 200,000 |
Secured Borrowings | |
Debt Instrument [Line Items] | |
Stated maturity, 2020 | 565,805 |
Stated maturity, 2021 | 507,319 |
Stated maturity, 2022 | 512,718 |
Stated maturity, 2023 | 534,692 |
Stated maturity, 2024 | 529,471 |
Stated maturity, 2025 and after | 1,688,473 |
Maturity to Call Date, 2020 | 565,805 |
Maturity to Call Date, 2021 | 507,319 |
Maturity to Call Date, 2022 | 512,718 |
Maturity to Call Date, 2023 | 534,692 |
Maturity to Call Date, 2024 | 529,471 |
Maturity to Call Date, 2025 and after | 1,688,473 |
Total principal amount, maturity to call date | 4,338,478 |
Hedge accounting adjustments | 0 |
Total principal amount, after adjustments | $ 4,338,478 |
Borrowings - Secured Financing
Borrowings - Secured Financing (Details) - USD ($) | 1 Months Ended | ||||||
Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||||||
Total Issued | $ 1,110,000,000 | $ 1,900,500,000 | |||||
Total loans and accrued interest amount securitized at inception | $ 1,208,963,000 | $ 2,101,644,000 | |||||
Issuance 2018-A | |||||||
Debt Instrument [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% | ||||||
Issuance 2018-B | |||||||
Debt Instrument [Line Items] | |||||||
Total Issued | $ 686,500,000 | ||||||
Weighted Average Life (in years) | 4 years 4 months 24 days | ||||||
Basis spread on variable rate | 0.76% | ||||||
Issuance 2018-C | |||||||
Debt Instrument [Line Items] | |||||||
Total Issued | $ 544,000,000 | ||||||
Weighted Average Life (in years) | 4 years 3 months 25 days | ||||||
Basis spread on variable rate | 0.77% | ||||||
Issuance 2019-A | |||||||
Debt Instrument [Line Items] | |||||||
Total Issued | $ 453,000,000 | ||||||
Weighted Average Life (in years) | 4 years 3 months 3 days | ||||||
Basis spread on variable rate | 0.92% | ||||||
Issuance 2019-B | |||||||
Debt Instrument [Line Items] | |||||||
Total Issued | $ 657,000,000 | ||||||
Weighted Average Life (in years) | 4 years 4 months 28 days | ||||||
Basis spread on variable rate | 1.01% |
Borrowings - Variable Interest
Borrowings - Variable Interest Entity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Debt Outstanding | |||
Short-Term | $ 289,230 | $ 0 | |
Long-Term | 4,354,037 | 4,284,304 | |
Total | 4,643,267 | 4,284,304 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Restricted Cash | 156,883 | 122,789 | $ 101,836 |
Other assets | 29,398 | 48,141 | |
Secured Borrowing Facility | |||
Debt Outstanding | |||
Short-Term | 289,230 | 0 | |
Variable Interest Entity, Primary Beneficiary | |||
Debt Outstanding | |||
Short-Term | 289,230 | 0 | |
Long-Term | 4,155,878 | 4,086,956 | |
Total | 4,445,108 | 4,086,956 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Loans | 5,586,652 | 5,030,837 | |
Restricted Cash | 154,563 | 113,431 | |
Other assets | 357,005 | 326,727 | |
Total | 6,098,220 | 5,470,995 | |
Variable Interest Entity, Primary Beneficiary | Private Education Loan term securitizations: | |||
Debt Outstanding | |||
Short-Term | 0 | 0 | |
Long-Term | 4,155,878 | 4,086,956 | |
Total | 4,155,878 | 4,086,956 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Loans | 5,246,986 | 5,030,837 | |
Restricted Cash | 145,760 | 113,431 | |
Other assets | 333,173 | 326,570 | |
Total | 5,725,919 | 5,470,838 | |
Variable Interest Entity, Primary Beneficiary | Secured Borrowing Facility | |||
Debt Outstanding | |||
Short-Term | 289,230 | 0 | |
Long-Term | 0 | 0 | |
Total | 289,230 | 0 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Loans | 339,666 | 0 | |
Restricted Cash | 8,803 | 0 | |
Other assets | 23,832 | 157 | |
Total | $ 372,301 | $ 157 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Derivative [Line Items] | ||
Notional derivative contracts | $ 9,900 | |
Net positive exposure | 52 | $ 27 |
Estimated reclassification of AOCI to interest expense | 5 | |
Cash collateral pledged | 53 | $ 27 |
CME | ||
Derivative [Line Items] | ||
Notional derivative contracts | $ 9,400 | |
Notional derivative contracts, percent | 95.00% | |
Amount of variation margin included as settlement | $ (107) | |
LCH | ||
Derivative [Line Items] | ||
Notional derivative contracts | $ 500 | |
Notional derivative contracts, percent | 5.00% | |
Amount of variation margin included as settlement | $ 8 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Impact of Derivatives on Consolidated Balance Sheet (Details) - Interest Rate Swaps - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | $ 715 | $ 2,090 |
Derivative Liabilities | (1,164) | (2,032) |
Total net derivatives | (449) | 58 |
Trading | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 90 |
Derivative Liabilities | (268) | 0 |
Total net derivatives | (268) | 90 |
Cash Flow | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 715 | 0 |
Derivative Liabilities | 0 | (2,032) |
Total net derivatives | 715 | (2,032) |
Fair Value | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative Assets | 0 | 2,000 |
Derivative Liabilities | (896) | 0 |
Total net derivatives | $ (896) | $ 2,000 |
Derivative Financial Instrume_5
Derivative Financial Instruments - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Liabilities | ||
Cash collateral (held) pledged | $ 53,000 | $ 27,000 |
Other Assets | ||
Other Assets | ||
Gross position | 715 | 2,090 |
Impact of master netting agreement | (519) | (1,389) |
Derivative values with impact of master netting agreements (as carried on balance sheet) | 196 | 701 |
Cash collateral (held) pledged | 52,564 | 27,151 |
Net position | 52,760 | 27,852 |
Other Liabilities | ||
Other Liabilities | ||
Gross position | (1,164) | (2,032) |
Impact of master netting agreement | 519 | 1,389 |
Derivative values with impact of master netting agreements (as carried on balance sheet) | (645) | (643) |
Cash collateral (held) pledged | 0 | 0 |
Net position | $ (645) | $ (643) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Notional Values (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | $ 9,900,000 | |
Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 9,926,864 | $ 5,996,310 |
Interest Rate Swaps | Trading | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 3,744,917 | 1,577,978 |
Interest Rate Swaps | Cash Flow | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | 1,150,518 | 1,280,367 |
Interest Rate Swaps | Fair Value | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Notional Values | $ 5,031,429 | $ 3,137,965 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Schedule of Hedged Items Recorded in Statement of Financial Position (Details) - Deposits - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivatives, Fair Value [Line Items] | ||
Carrying Amount of the Hedged Assets/(Liabilities) | $ (5,085,426) | $ (3,114,304) |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | $ (63,148) | $ 14,202 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Trading | |||||||||||
Total | $ (3,635) | $ 1,961 | $ 16,736 | $ 2,763 | $ 6,238 | $ (4,949) | $ (5,268) | $ 3,892 | |||
Interest Rate Swaps | |||||||||||
Trading | |||||||||||
Total | $ 12,789 | $ (14,340) | $ (10,554) | ||||||||
Interest Rate Swaps | Designated as Hedging Instrument | Fair Value | |||||||||||
Fair Value Hedges | |||||||||||
Interest recognized on derivatives | (8,806) | (11,642) | 8,286 | ||||||||
Hedged items recorded in interest expense | (77,350) | (7,966) | 16,155 | ||||||||
Derivatives recorded in interest expense | 77,177 | 8,123 | (20,115) | ||||||||
Trading | |||||||||||
Total | (8,979) | (11,485) | 4,326 | ||||||||
Interest Rate Swaps | Designated as Hedging Instrument | Cash Flow | |||||||||||
Cash Flow Hedges | |||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into interest expense | 2,299 | (1,455) | (11,187) | ||||||||
Trading | |||||||||||
Total | 2,299 | (1,455) | (11,187) | ||||||||
Interest Rate Swaps | Trading | |||||||||||
Trading | |||||||||||
Change in fair value of future interest payments recorded in earnings | 19,469 | (1,400) | (3,693) | ||||||||
Total | $ 19,469 | $ (1,400) | $ (3,693) |
Derivative Financial Instrume_9
Derivative Financial Instruments - Impact of Derivatives on the Statements of Changes in Stockholder's Equity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||
Amount of gain (loss) recognized in other comprehensive income (loss) | $ (36,115) | ||
Amount of gain (loss) recognized in other comprehensive income (loss) | $ 10,452 | $ 8,008 | |
Amount of gain (loss) reclassified in interest expense | 2,299 | ||
Amount of gain (loss) reclassified in interest expense | (1,455) | (11,187) | |
Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit | (38,414) | ||
Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit | $ (38,414) | $ 11,907 | $ 19,195 |
Stockholders' Equity - Additio
Stockholders' Equity - Additional Information (Details) - USD ($) | Jan. 23, 2019 | May 05, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 22, 2020 |
Class of Stock [Line Items] | ||||||
Common stock, shares authorized (in shares) | 1,125,000,000 | 1,125,000,000 | ||||
Common stock, par value (in dollars per share) | $ 0.2 | $ 0.2 | ||||
Common stock shares outstanding (in shares) | 421,000,000 | |||||
Common shares unissued but encumbered (in shares) | 37,000,000 | |||||
Common stock dividend per common share | $ 0.12 | |||||
Common stock dividends | $ 0 | $ 0 | ||||
Aggregate purchase price (not to exceed) | $ 200,000,000 | |||||
Common stock repurchased (in shares) | 17,000,000 | 16,962,199 | 0 | 0 | ||
Repurchase amount | $ 167,000,000 | $ 33,000,000 | ||||
Subsequent Event | ||||||
Class of Stock [Line Items] | ||||||
Aggregate purchase price (not to exceed) | $ 600,000,000 | |||||
Series A Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock shares outstanding (in shares) | 3,300,000 | 0 | 0 | |||
Preferred stock dividend rate (as a percentage) | 6.97% | |||||
Preferred stock dividend rate (in dollars per share) | $ 50 | |||||
Series B Preferred Stock | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock shares outstanding (in shares) | 4,000,000 | 4,000,000 | ||||
Preferred stock liquidation preference (in dollars per share) | $ 100 | |||||
Series B Preferred Stock | Three Month LIBOR | ||||||
Class of Stock [Line Items] | ||||||
Preferred stock dividend rate (as a percentage) | 1.70% | |||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Share price (in dollars per share) | $ 8.91 |
Stockholders' Equity - Common
Stockholders' Equity - Common Stock Repurchased (Details) - USD ($) $ / shares in Units, $ in Millions | Jan. 23, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Equity [Abstract] | ||||
Common stock repurchased (in shares) | 17,000,000 | 16,962,199 | 0 | 0 |
Average purchase price per share (in dollars per share) | $ 9.86 | $ 0 | $ 0 | |
Shares repurchased related to employee stock-based compensation plans (in shares) | 1,369,630 | 3,087,396 | 3,358,417 | |
Average purchase price per share (in dollars per share) | $ 10.85 | $ 11.32 | $ 11.96 | |
Common shares issued (in shares) | 3,743,705 | 6,392,634 | 6,831,108 | |
Repurchase amount | $ 167 | $ 33 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Numerator: | |||||||||||
Net income | $ 141,352 | $ 128,458 | $ 150,277 | $ 158,189 | $ 147,512 | $ 103,878 | $ 109,832 | $ 126,254 | $ 578,276 | $ 487,476 | $ 288,934 |
Preferred stock dividends | 3,885 | 4,153 | 4,331 | 4,468 | 4,199 | 4,124 | 3,920 | 3,397 | 16,837 | 15,640 | 15,714 |
Net income attributable to SLM Corporation common stock | $ 137,467 | $ 124,305 | $ 145,946 | $ 153,721 | $ 143,313 | $ 99,754 | $ 105,912 | $ 122,857 | $ 561,439 | $ 471,836 | $ 273,220 |
Denominator: | |||||||||||
Weighted average shares used to compute basic EPS (in shares) | 427,292 | 435,054 | 431,216 | ||||||||
Effect of dilutive securities: | |||||||||||
Dilutive effect of stock options, restricted stock, restricted stock units and Employee Stock Purchase Plan (ESPP) (in shares) | 3,382 | 4,627 | 7,335 | ||||||||
Weighted average shares used to compute diluted EPS (in shares) | 430,674 | 439,681 | 438,551 | ||||||||
Basic earnings per common share attributable to SLM Corporation (in usd per share) | $ 0.33 | $ 0.29 | $ 0.34 | $ 0.35 | $ 0.33 | $ 0.23 | $ 0.24 | $ 0.28 | $ 1.31 | $ 1.08 | $ 0.63 |
Diluted earnings per common share attributable to SLM Corporation (in usd per share) | $ 0.32 | $ 0.29 | $ 0.34 | $ 0.35 | $ 0.33 | $ 0.23 | $ 0.24 | $ 0.28 | $ 1.30 | $ 1.07 | $ 0.62 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 1,000 | 0 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plans and Arrangements - Additional Information (Details) | 12 Months Ended | ||||
Dec. 31, 2019USD ($)compensation_planshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Jun. 25, 2014shares | May 24, 2012shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of active stock-based compensation plans | compensation_plan | 1 | ||||
Stock-based compensation cost | $ 30,600,000 | $ 31,524,000 | $ 27,899,000 | ||
Unrecognized compensation cost | $ 13,000,000 | ||||
Weighted average period for total unrecognized compensation cost | 1 year 4 months 24 days | ||||
Vesting period | 3 years | ||||
Options granted in period (in shares) | shares | 0 | 0 | 0 | ||
Offering period of employee stock purchase plan | 12 months | ||||
Maximum contribution amount per employee to ESPP | $ 7,500 | ||||
Employee Stock Purchase Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized to be issued under plan (in shares) | shares | 15,000,000 | 6,000,000 | |||
Unrecognized compensation cost | $ 1,000,000 | ||||
Vesting period | 1 year | ||||
Percentage of discount available to employees under ESPP | 15.00% | ||||
Expected dividend rate | 1.34% | 0.00% | 0.00% | ||
Company's common stock purchased by ESPP participants (in shares) | shares | 233,232 | 283,952 | |||
Grants made prior to 2012 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum term for stock options | 10 years | ||||
Grants made in 2012 | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Maximum term for stock options | 5 years | ||||
Performance Vesting Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
Restricted Stock | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation cost | $ 1,000,000 | ||||
Weighted average period for total unrecognized compensation cost | 6 months | ||||
Vesting period | 1 year | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 3 years | ||||
SLM Corporation 2012 Omnibus Incentive Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized to be issued under plan (in shares) | shares | 17,000,000 |
Stock-Based Compensation Plan_4
Stock-Based Compensation Plans and Arrangements - Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Number of Options | |||
Beginning balance (in shares) | 1,391,819 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (593,806) | ||
Canceled (in shares) | (8,167) | ||
Ending balance (in shares) | 789,846 | 1,391,819 | |
Exercisable (in shares) | 789,846 | ||
Weighted Average Exercise Price per Share | |||
Beginning balance (in dollars per share) | $ 10.44 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 3.63 | ||
Canceled (in dollars per share) | 3.94 | ||
Ending balance (in dollars per share) | 4.75 | $ 10.44 | |
Exercisable (in dollars per share) | $ 4.75 | ||
Weighted Average Remaining Contractual Term | |||
Weighted Average Remaining Contractual Term, Outstanding, ending balance | 8 months 12 days | ||
Weighted Average Remaining Contractual Term, Exercisable, ending balance | 8 months 12 days | ||
Aggregate Intrinsic Value | |||
Aggregate Intrinsic Value, Outstanding, ending balance | $ 3,284 | ||
Aggregate Intrinsic Value, Exercisable, ending balance | 3,284 | ||
Total intrinsic value of options exercised | 4,000 | $ 17,000 | $ 16,000 |
Cash received from option exercises | 0 | ||
Tax benefit from exercise of stock options | $ 1,000 |
Stock-Based Compensation Plan_5
Stock-Based Compensation Plans and Arrangements - Restricted Stock and Performance Stock Unit Activity (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Weighted Average Grant Date Fair Value | |||
Unrecognized compensation cost | $ 13 | ||
Weighted average period for total unrecognized compensation cost | 1 year 4 months 24 days | ||
Restricted Stock | |||
Number of Shares | |||
Beginning balance (in shares) | 84,392 | ||
Granted (in shares) | 118,789 | ||
Vested and converted to common stock (in shares) | (84,392) | ||
Canceled (in shares) | 0 | ||
Ending balance (in shares) | 118,789 | 84,392 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 11.73 | ||
Granted (in dollars per share) | 9.26 | ||
Vested (in dollars per share) | 11.73 | ||
Canceled (in dollars per share) | 0 | ||
Ending balance (in dollars per share) | $ 9.26 | $ 11.73 | |
Fair value of shares vested | $ 1 | $ 1 | $ 1 |
Unrecognized compensation cost | $ 1 | ||
Weighted average period for total unrecognized compensation cost | 6 months | ||
Restricted Stock Units And Performance Stock Units | |||
Number of Shares | |||
Beginning balance (in shares) | 5,338,034 | ||
Granted (in shares) | 3,008,102 | ||
Vested and converted to common stock (in shares) | (3,030,536) | ||
Canceled (in shares) | (136,383) | ||
Ending balance (in shares) | 5,179,217 | 5,338,034 | |
Weighted Average Grant Date Fair Value | |||
Beginning balance (in dollars per share) | $ 10.11 | ||
Granted (in dollars per share) | 10.84 | ||
Vested (in dollars per share) | 8.78 | ||
Canceled (in dollars per share) | 11.09 | ||
Ending balance (in dollars per share) | $ 11.28 | $ 10.11 | |
Fair value of restricted stock units that vested and converted to common stock | $ 27 | $ 25 | $ 29 |
Unrecognized compensation cost | $ 12 | ||
Weighted average period for total unrecognized compensation cost | 1 year 4 months 24 days |
Stock-Based Compensation Plan_6
Stock-Based Compensation Plans and Arrangements - Employee Stock Purchase Plan (Details) - Employee Stock Purchase Plan - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.87% | 2.44% | 1.22% |
Expected volatility | 29.00% | 27.00% | 32.00% |
Expected dividend rate | 1.34% | 0.00% | 0.00% |
Expected life of the option (in years) | 1 year | 1 year | 1 year |
Weighted average fair value of stock purchase rights (in dollars per share) | $ 1.77 | $ 2.32 | $ 2.36 |
Fair Value Measurements - Valu
Fair Value Measurements - Valuation of Financial Instruments that are Marked-to-Market on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Estimated Fair Value | $ 487,669 | $ 176,245 |
Fair Value Measurements Recurring | ||
Assets | ||
Estimated Fair Value | 487,669 | 176,245 |
Derivative instruments | 715 | 2,090 |
Total | 488,384 | 178,335 |
Liabilities | ||
Derivative instruments | (1,164) | (2,032) |
Fair Value Measurements Recurring | Level 1 | ||
Assets | ||
Estimated Fair Value | 0 | 0 |
Derivative instruments | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Derivative instruments | 0 | 0 |
Fair Value Measurements Recurring | Level 2 | ||
Assets | ||
Estimated Fair Value | 487,669 | 176,245 |
Derivative instruments | 715 | 2,090 |
Total | 488,384 | 178,335 |
Liabilities | ||
Derivative instruments | (1,164) | (2,032) |
Fair Value Measurements Recurring | Level 3 | ||
Assets | ||
Estimated Fair Value | 0 | 0 |
Derivative instruments | 0 | 0 |
Total | 0 | 0 |
Liabilities | ||
Derivative instruments | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values of Financial Assets and Liabilities, Including Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Earning assets: | ||
Accrued interest receivable, difference between carrying and fair value | $ 98,746 | $ 93,861 |
Tax indemnification receivable | 88,844 | 41,570 |
Total earning assets, difference | 2,265,887 | 2,152,077 |
Interest-bearing liabilities: | ||
Long-term borrowings, difference | (80,286) | 5,373 |
Total interest-bearing liabilities, difference | (226,078) | 63,304 |
Excess of net asset fair value over carrying value | 2,039,809 | 2,215,381 |
Certificates of Deposit | ||
Interest-bearing liabilities: | ||
Certificates of deposits, difference | (117,264) | 38,780 |
Fair Value | ||
Earning assets: | ||
Credit Cards | 3,818 | |
Cash and cash equivalents | 5,563,877 | 2,559,106 |
Available-for-sale investments | 487,669 | 176,245 |
Accrued interest receivable | 1,491,471 | 1,285,842 |
Tax indemnification receivable | 27,558 | 39,207 |
Derivative instruments | 715 | 2,090 |
Total | 34,406,223 | 28,391,625 |
Interest-bearing liabilities: | ||
Short-term borrowings | 289,230 | 0 |
Long-term borrowings | 4,434,323 | 4,278,931 |
Accrued interest payable | 75,158 | 61,341 |
Derivative instruments | 1,164 | 2,032 |
Total interest-bearing liabilities | 29,228,573 | 23,226,455 |
Fair Value | Money-market and savings accounts | ||
Interest-bearing liabilities: | ||
Deposits | 10,363,691 | 9,370,957 |
Fair Value | Certificates of Deposit | ||
Interest-bearing liabilities: | ||
Deposits | 14,065,007 | 9,513,194 |
Carrying Value | ||
Earning assets: | ||
Credit Cards | 3,818 | |
Cash and cash equivalents | 5,563,877 | 2,559,106 |
Available-for-sale investments | 487,669 | 176,245 |
Accrued interest receivable | 1,392,725 | 1,191,981 |
Tax indemnification receivable | 27,558 | 39,207 |
Derivative instruments | 715 | 2,090 |
Total | 32,140,336 | 26,239,548 |
Interest-bearing liabilities: | ||
Short-term borrowings | 289,230 | 0 |
Long-term borrowings | 4,354,037 | 4,284,304 |
Accrued interest payable | 75,158 | 61,341 |
Derivative instruments | 1,164 | 2,032 |
Total interest-bearing liabilities | 29,002,495 | 23,289,759 |
Carrying Value | Money-market and savings accounts | ||
Interest-bearing liabilities: | ||
Deposits | 10,335,163 | 9,390,108 |
Certificates of deposits, difference | (28,528) | 19,151 |
Carrying Value | Certificates of Deposit | ||
Interest-bearing liabilities: | ||
Deposits | 13,947,743 | 9,551,974 |
Private Education Loans | ||
Earning assets: | ||
Loans held for investment, net, difference | 2,092,426 | 2,018,576 |
Private Education Loans | Fair Value | ||
Earning assets: | ||
Private Education Loans | 24,988,941 | 22,313,419 |
Private Education Loans | Carrying Value | ||
Earning assets: | ||
Private Education Loans | 22,896,515 | 20,294,843 |
FFELP Loans | ||
Earning assets: | ||
Loans held for investment, net, difference | 11,239 | 11,296 |
FFELP Loans | Fair Value | ||
Earning assets: | ||
Private Education Loans | 795,055 | 859,185 |
FFELP Loans | Carrying Value | ||
Earning assets: | ||
Private Education Loans | 783,816 | 847,889 |
Personal Loans | ||
Earning assets: | ||
Loans held for investment, net, difference | 63,476 | 28,344 |
Personal Loans | Fair Value | ||
Earning assets: | ||
Private Education Loans | 1,047,119 | 1,156,531 |
Personal Loans | Carrying Value | ||
Earning assets: | ||
Private Education Loans | $ 983,643 | $ 1,128,187 |
Arrangements with Navient Cor_2
Arrangements with Navient Corporation (Details) - USD ($) | Apr. 30, 2014 | Jun. 30, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Related Party Transaction [Line Items] | |||||
Remaining balance of indemnification receivable in connection with the spin-off | $ 27,000,000 | $ 15,000,000 | |||
Minimum days past due for spin off loan purchase | 90 days | ||||
Period of hardship forbearance | 6 months | ||||
Gains on sales of loans, net | $ 0 | $ 2,060,000 | $ 0 | ||
Interest income from third party | 1,000,000 | ||||
Gain (loss) resulting from loans sold | 0 | ||||
Write-down to fair value for loans sold to third party | 5,000,000 | ||||
Participated loans | |||||
Related Party Transaction [Line Items] | |||||
Loans sold to third party | $ 12,000,000 | ||||
Discontinued Operations, Disposed of by Sale | |||||
Related Party Transaction [Line Items] | |||||
Split Loans portfolio sales price | $ 43,000,000 | ||||
Gains on sales of loans, net | $ 2,000,000 | ||||
Minimum | |||||
Related Party Transaction [Line Items] | |||||
Agreements with Navient, period of term (or less) | 1 year | ||||
Maximum | |||||
Related Party Transaction [Line Items] | |||||
Agreements with Navient, period of term (or less) | 2 years |
Regulatory Capital - Well Capi
Regulatory Capital - Well Capitalized Regulatory Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Actual Amount | ||
Tier 1 Capital (to Average Assets) | $ 3,264,309 | $ 2,896,091 |
Tier 1 Capital (to Risk-Weighted Assets) | 3,264,309 | 2,896,091 |
Total Capital (to Risk-Weighted Assets) | 3,600,668 | 3,196,279 |
Tier 1 Capital (to Average Assets) | $ 3,264,309 | $ 2,896,091 |
Actual Ratio | ||
Tier 1 Capital (to Average Assets) | 12.20% | 12.10% |
Tier 1 Capital (to Risk-Weighted Assets) | 12.20% | 12.10% |
Total Capital (to Risk-Weighted Assets) | 13.40% | 13.30% |
Tier 1 Capital (to Average Assets) | 10.20% | 11.10% |
Well Capitalized Regulatory Requirements, Amount | ||
Tier 1 Capital (to Average Assets) | $ 1,876,050 | $ 1,528,209 |
Tier 1 Capital (to Risk-Weighted Assets) | 2,278,060 | 1,887,787 |
Total Capital (to Risk-Weighted Assets) | 2,814,074 | 2,367,226 |
Tier 1 Capital (to Average Assets) | $ 1,282,642 | $ 1,039,226 |
Well Capitalized Regulatory Requirements, Ratio | ||
Tier 1 Capital (to Average Assets) | 7.00% | 6.375% |
Tier 1 Capital (to Risk-Weighted Assets) | 8.50% | 7.875% |
Total Capital (to Risk-Weighted Assets) | 10.50% | 9.875% |
Tier 1 Capital (to Average Assets) | 4.00% | 4.00% |
Regulatory Capital - Additiona
Regulatory Capital - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Sallie Mae Bank | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Dividends | $ 254,000,000 | $ 0 | $ 0 |
Defined Contribution Plans (Det
Defined Contribution Plans (Details) - Sallie Mae 401(k) Savings Plan - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Contribution Plan Disclosure [Line Items] | |||
Employer matching contribution percentage | 100.00% | ||
Type 1 of defined benefit contribution (up to) | 5.00% | ||
Employer contribution amount | $ 7 | $ 5 | $ 5 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($)attorney_general | |
Loss Contingencies [Line Items] | |
Contractual obligation | $ 1,900 |
Other liabilities reserve | $ 2 |
Loss emergence period | 1 year |
California, Washington And Pennsylvania | |
Loss Contingencies [Line Items] | |
Number of state attorneys general | attorney_general | 3 |
Income Taxes - Reconciliations
Income Taxes - Reconciliations of Statutory U.S. Federal Income Tax Rates to Our Effective Tax Rate for Continuing Operations (Details) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Statutory rate | 21.00% | 21.00% | 35.00% |
Tax reform | 0.00% | (0.30%) | 3.10% |
State tax, net of federal benefit | 3.90% | 3.80% | 2.60% |
Business tax credits | (3.50%) | (0.50%) | (0.10%) |
Reverse federal impact of indemnification adjustments | 0.30% | 3.50% | 2.50% |
Unrecognized tax benefits, U.S. federal and state, net of federal benefit | (0.10%) | (15.90%) | (2.00%) |
Excess tax benefits/deficiencies for employee stock-based compensation, federal and state, net of federal benefit | (0.30%) | (0.60%) | (1.70%) |
Impact of state rate change on net deferred tax liabilities, net of federal benefit | 0.00% | (0.40%) | 0.60% |
State, valuation allowance adjustments on net operating losses | 0.10% | 0.40% | 0.20% |
Other, net | 0.90% | 1.90% | 1.00% |
Effective tax rate | 22.30% | 12.90% | 41.20% |
Income Taxes - Additional Info
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Statutory U.S. federal rate | 21.00% | 21.00% | 35.00% | |
Operating loss carryforwards, valuation allowance | $ 6,000 | $ 19,000 | ||
Unrecognized tax benefits | 53,509 | 52,159 | $ 131,608 | $ 152,581 |
Unrecognized tax benefits recognition impact on effective tax rate | 48,000 | |||
Interest on income taxes accrued net of related benefit | 12,000 | 14,000 | 21,000 | |
Interest on income tax expense net of related tax benefit | (1,000) | $ (7,000) | $ 3,000 | |
Possible decrease in uncertain tax position | $ 10,000 | |||
Minimum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Combination of subsidiaries | 3 years | |||
Maximum | ||||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible [Line Items] | ||||
Combination of subsidiaries | 4 years |
Income Taxes - Components of P
Income Taxes - Components of Provision for Income Tax Expense (Benefit) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current provision: | |||||||||||
Federal | $ 150,800 | $ 102,516 | $ 248,191 | ||||||||
State | 24,378 | 32,638 | 13,092 | ||||||||
Total current provision | 175,178 | 135,154 | 261,283 | ||||||||
Deferred benefit: | |||||||||||
Federal | (8,240) | (57,076) | (58,124) | ||||||||
State | (1,474) | (6,225) | (628) | ||||||||
Total deferred benefit | (9,714) | (63,301) | (58,752) | ||||||||
Provision for income tax expense | $ 34,666 | $ 40,701 | $ 33,801 | $ 56,296 | $ 44,449 | $ (53,667) | $ 40,074 | $ 40,997 | $ 165,464 | $ 71,853 | $ 202,531 |
Income Taxes - Schedule of Def
Income Taxes - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Loan reserves | $ 109,369 | $ 85,100 |
Stock-based compensation plans | 10,022 | 9,312 |
Deferred revenue | 1,017 | 1,081 |
Operating loss carryovers | 0 | 0 |
Accrued expenses not currently deductible | 12,599 | 12,896 |
Net unrealized losses | 2,124 | 0 |
Unrecorded tax benefits | 6,049 | 5,106 |
Market value adjustments on student loans, investments and derivatives | 0 | 1,460 |
Other | 874 | 953 |
Total deferred tax assets | 142,054 | 115,908 |
Deferred tax liabilities: | ||
Fixed assets | 10,475 | 7,150 |
Acquired intangible assets | 5,453 | 5,179 |
Market value adjustments on student loans, investments and derivatives | 3,175 | 0 |
Net unrealized gains | 0 | 3,436 |
Federal deferred for state receivable | 5,368 | 2,083 |
Student loan premiums and discounts, net | 3,398 | 1,971 |
Other | 285 | 285 |
Total deferred tax liabilities | 28,154 | 20,104 |
Net deferred tax assets | $ 113,900 | $ 95,804 |
Income Taxes - Summary of Chan
Income Taxes - Summary of Changes in Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Unrecognized tax benefits at beginning of year | $ 52,159 | $ 131,608 | $ 152,581 |
Increases resulting from tax positions taken during a prior period | 12,333 | 4,121 | 7,482 |
Decreases resulting from tax positions taken during a prior period | (851) | 0 | (7,025) |
Increases resulting from tax positions taken during the current period | 4,572 | 3,169 | 1,656 |
Decreases related to settlements with taxing authorities | (8,670) | (601) | (3,594) |
Reductions related to the lapse of statute of limitations | (6,034) | (86,138) | (19,492) |
Unrecognized tax benefits at end of year | $ 53,509 | $ 52,159 | $ 131,608 |
Parent Only Statements - Balan
Parent Only Statements - Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Cash and cash equivalents | $ 5,563,877 | $ 2,559,106 | $ 1,534,339 | |
Tax indemnification receivable | 27,558 | 39,207 | ||
Other assets | 29,398 | 48,141 | ||
Total assets | 32,686,479 | 26,638,173 | ||
Liabilities | ||||
Long-Term | 4,354,037 | 4,284,304 | ||
Income taxes payable, net | 0 | 0 | ||
Other liabilities | 254,731 | 224,951 | ||
Total liabilities | 29,374,643 | 23,665,517 | ||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | ||||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 453.6 million and 449.9 million shares issued, respectively | 90,720 | 89,972 | ||
Additional paid-in capital | 1,307,630 | 1,274,635 | ||
Accumulated other comprehensive income (loss) (net of tax expense (benefit) of ($3,995) and $3,436, respectively) | (12,367) | 10,623 | ||
Retained earnings | 1,850,512 | 1,340,017 | ||
Total SLM Corporation stockholders’ equity before treasury stock | 3,636,495 | 3,115,247 | ||
Less: Common stock held in treasury at cost: 32.5 million and 14.2 million shares, respectively | (324,659) | (142,591) | ||
Total equity | 3,311,836 | 2,972,656 | ||
Total liabilities and equity | 32,686,479 | 26,638,173 | ||
Parent Company | ||||
Assets | ||||
Cash and cash equivalents | 153,508 | 191,776 | $ 260,255 | $ 292,277 |
Total investments in subsidiaries (primarily Sallie Mae Bank) | 3,326,578 | 2,963,949 | ||
Tax indemnification receivable | 27,558 | 39,207 | ||
Due from subsidiaries, net | 42,544 | 48,798 | ||
Other assets | 2,579 | 2,246 | ||
Total assets | 3,552,767 | 3,245,976 | ||
Liabilities | ||||
Long-Term | 198,159 | 197,348 | ||
Income taxes payable, net | 11,457 | 37,271 | ||
Payable due to Navient | 9,064 | 9,480 | ||
Other liabilities | 22,251 | 29,221 | ||
Total liabilities | 240,931 | 273,320 | ||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | ||||
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 453.6 million and 449.9 million shares issued, respectively | 90,720 | 89,972 | ||
Additional paid-in capital | 1,307,630 | 1,274,635 | ||
Accumulated other comprehensive income (loss) (net of tax expense (benefit) of ($3,995) and $3,436, respectively) | (12,367) | 10,623 | ||
Retained earnings | 1,850,512 | 1,340,017 | ||
Total SLM Corporation stockholders’ equity before treasury stock | 3,636,495 | 3,115,247 | ||
Less: Common stock held in treasury at cost: 32.5 million and 14.2 million shares, respectively | (324,659) | (142,591) | ||
Total equity | 3,311,836 | 2,972,656 | ||
Total liabilities and equity | 3,552,767 | 3,245,976 | ||
Parent Company | Series B Preferred Stock | ||||
Preferred stock, par value $0.20 per share, 20 million shares authorized: | ||||
Preferred stock issued | $ 400,000 | $ 400,000 |
Parent Only Statements - Bal_2
Parent Only Statements - Balance Sheets - Phantom (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Condensed Financial Statements, Captions [Line Items] | ||
Preferred stock, stated value (in dollars per share) | $ 0.2 | $ 0.2 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, par value (in dollars per share) | $ 0.2 | $ 0.2 |
Common stock, shares authorized (in shares) | 1,125,000,000 | 1,125,000,000 |
Common stock, shares issued (in shares) | 453,600,000 | 449,900,000 |
Accumulated other comprehensive loss tax benefit | $ (3,995) | $ 3,436 |
Common stock held in treasury (In shares) | 32,500,000 | 14,200,000 |
Series B Preferred Stock | ||
Condensed Financial Statements, Captions [Line Items] | ||
Preferred stock, stated value (in dollars per share) | $ 100 | $ 100 |
Parent Company | ||
Condensed Financial Statements, Captions [Line Items] | ||
Preferred stock, stated value (in dollars per share) | $ 0.20 | $ 0.20 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, par value (in dollars per share) | $ 0.20 | $ 0.20 |
Common stock, shares authorized (in shares) | 1,125,000,000 | 1,125,000,000 |
Common stock, shares issued (in shares) | 453,600,000 | 449,900,000 |
Accumulated other comprehensive loss tax benefit | $ (3,995) | $ 3,436 |
Common stock held in treasury (In shares) | 14,200,000 | 11,100,000 |
Parent Company | Series B Preferred Stock | ||
Condensed Financial Statements, Captions [Line Items] | ||
Preferred stock, stated value (in dollars per share) | $ 100 | $ 100 |
Preferred stock, shares issued (in shares) | 4,000,000 | 4,000,000 |
Parent Only Statements - State
Parent Only Statements - Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest income | $ 2,331,032 | $ 1,935,352 | $ 1,437,303 | ||||||||
Interest expense | 707,717 | 522,288 | 308,082 | ||||||||
Net interest income | $ 419,101 | $ 405,065 | $ 396,868 | $ 402,281 | $ 382,867 | $ 356,633 | $ 340,950 | $ 332,614 | 1,623,315 | 1,413,064 | 1,129,221 |
Non-interest loss | 48,927 | (51,895) | (2,902) | ||||||||
Non-interest expenses | 574,253 | 556,976 | 449,089 | ||||||||
Income tax benefit | 34,666 | 40,701 | 33,801 | 56,296 | 44,449 | (53,667) | 40,074 | 40,997 | 165,464 | 71,853 | 202,531 |
Net income | 578,276 | 487,476 | 288,934 | ||||||||
Preferred stock dividends | 3,885 | 4,153 | 4,331 | 4,468 | 4,199 | 4,124 | 3,920 | 3,397 | 16,837 | 15,640 | 15,714 |
Net income attributable to SLM Corporation common stock | $ 137,467 | $ 124,305 | $ 145,946 | $ 153,721 | $ 143,313 | $ 99,754 | $ 105,912 | $ 122,857 | 561,439 | 471,836 | 273,220 |
Parent Company | |||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||
Interest income | 2,663 | 4,693 | 5,497 | ||||||||
Interest expense | 11,060 | 11,059 | 8,170 | ||||||||
Net interest income | (8,397) | (6,366) | (2,673) | ||||||||
Non-interest loss | (10,856) | (93,176) | (33,956) | ||||||||
Non-interest expenses | 39,423 | 41,893 | 35,810 | ||||||||
Loss before income tax benefit and equity in net income from subsidiaries | (58,676) | (141,435) | (72,439) | ||||||||
Income tax benefit | (25,260) | (96,170) | (40,598) | ||||||||
Equity in net income from subsidiaries (primarily Sallie Mae Bank) | 611,692 | 532,741 | 320,775 | ||||||||
Net income | 578,276 | 487,476 | 288,934 | ||||||||
Preferred stock dividends | 16,837 | 15,640 | 15,714 | ||||||||
Net income attributable to SLM Corporation common stock | $ 561,439 | $ 471,836 | $ 273,220 |
Parent Only Statements - Sta_2
Parent Only Statements - Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 578,276 | $ 487,476 | $ 288,934 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Reduction of tax indemnification receivable | 11,649 | 92,815 | 31,888 |
Amortization of unsecured debt upfront fees | 1,117 | 1,128 | 1,316 |
Decrease in tax indemnification receivable | 0 | 35,989 | 59,633 |
Increase in other assets | (3,091) | (64,777) | (72,646) |
Decrease in income taxes payable, net | (30,191) | (79,693) | (19,687) |
(Decrease) increase in other liabilities | 5,386 | 15,204 | 1,304 |
Total adjustments | (593,917) | (590,217) | (460,093) |
Total net cash used in operating activities | (15,641) | (102,741) | (171,159) |
Cash flows from investing activities: | |||
Total net cash used in investing activities | (2,306,714) | (3,254,863) | (3,160,150) |
Cash flows from financing activities: | |||
Unsecured debt issued | 0 | 0 | 197,000 |
Issuance costs for unsecured debt offering | 0 | 0 | (1,057) |
Redemption of Series A Preferred Stock | 0 | 0 | (165,000) |
Common stock dividends paid | (51,114) | 0 | 0 |
Preferred stock dividends paid | (16,837) | (15,640) | (15,714) |
Common stock repurchased | (167,201) | 0 | 0 |
Net cash provided by financing activities | 5,361,220 | 4,403,324 | 2,994,974 |
Cash and cash equivalents at beginning of year | 2,559,106 | 1,534,339 | |
Cash and cash equivalents at end of year | 5,563,877 | 2,559,106 | 1,534,339 |
Parent Company | |||
Cash flows from operating activities: | |||
Net income | 578,276 | 487,476 | 288,934 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||
Undistributed earnings of subsidiaries | (611,692) | (532,741) | (320,775) |
Dividends received from Sallie Mae Bank | 254,000 | 0 | 0 |
Reduction of tax indemnification receivable | 11,649 | 92,815 | 31,888 |
Amortization of unsecured debt upfront fees | 811 | 809 | 596 |
Decrease in investment in subsidiaries, net | 2,611 | 9,495 | 1,158 |
Decrease in tax indemnification receivable | 0 | 35,989 | 59,633 |
Decrease (increase) in due from subsidiaries, net | 6,254 | (11,277) | (5,687) |
Increase in other assets | (12,999) | (18,040) | (24,627) |
Decrease in income taxes payable, net | (25,814) | (123,083) | (87,983) |
Decrease in payable due to entity that is a subsidiary of Navient | (416) | (1,089) | (593) |
(Decrease) increase in other liabilities | (5,796) | 6,807 | 10,205 |
Total adjustments | (381,392) | (540,315) | (336,185) |
Total net cash used in operating activities | 196,884 | (52,839) | (47,251) |
Cash flows from investing activities: | |||
Total net cash used in investing activities | 0 | 0 | 0 |
Cash flows from financing activities: | |||
Unsecured debt issued | 0 | 0 | 197,000 |
Issuance costs for unsecured debt offering | 0 | 0 | (1,057) |
Redemption of Series A Preferred Stock | 0 | 0 | (165,000) |
Common stock dividends paid | (51,114) | 0 | 0 |
Preferred stock dividends paid | (16,837) | (15,640) | (15,714) |
Common stock repurchased | (167,201) | 0 | 0 |
Net cash provided by financing activities | (235,152) | (15,640) | 15,229 |
Net (decrease) increase in cash and cash equivalents | (38,268) | (68,479) | (32,022) |
Cash and cash equivalents at beginning of year | 191,776 | 260,255 | 292,277 |
Cash and cash equivalents at end of year | $ 153,508 | $ 191,776 | $ 260,255 |
Selected Quarterly Financial _3
Selected Quarterly Financial Information (unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Net interest income | $ 419,101 | $ 405,065 | $ 396,868 | $ 402,281 | $ 382,867 | $ 356,633 | $ 340,950 | $ 332,614 | $ 1,623,315 | $ 1,413,064 | $ 1,129,221 |
Less: provisions for credit losses | 97,558 | 99,526 | 93,375 | 63,790 | 57,619 | 70,047 | 63,267 | 53,931 | 354,249 | 244,864 | 185,765 |
Net interest income after provisions for credit losses | 321,543 | 305,539 | 303,493 | 338,491 | 325,248 | 286,586 | 277,683 | 278,683 | 1,269,066 | 1,168,200 | 943,456 |
Gains on sales of loans, net | 0 | 0 | 2,060 | 0 | |||||||
Losses on sales of securities, net | 0 | 0 | (1,549) | 0 | 0 | (1,549) | 0 | ||||
Gains (losses) on derivative and hedging activities, net | (3,635) | 1,961 | 16,736 | 2,763 | 6,238 | (4,949) | (5,268) | 3,892 | |||
Other income (loss) | (211) | 15,280 | 2,655 | 13,378 | 6,446 | (80,702) | 12,295 | 9,642 | 31,102 | (52,319) | 5,364 |
Total non-interest expenses | 141,679 | 153,621 | 138,806 | 140,147 | 145,971 | 150,724 | 135,315 | 124,966 | |||
Income tax benefit | 34,666 | 40,701 | 33,801 | 56,296 | 44,449 | (53,667) | 40,074 | 40,997 | 165,464 | 71,853 | 202,531 |
Net income | 141,352 | 128,458 | 150,277 | 158,189 | 147,512 | 103,878 | 109,832 | 126,254 | 578,276 | 487,476 | 288,934 |
Preferred stock dividends | 3,885 | 4,153 | 4,331 | 4,468 | 4,199 | 4,124 | 3,920 | 3,397 | 16,837 | 15,640 | 15,714 |
Net income attributable to SLM Corporation common stock | $ 137,467 | $ 124,305 | $ 145,946 | $ 153,721 | $ 143,313 | $ 99,754 | $ 105,912 | $ 122,857 | $ 561,439 | $ 471,836 | $ 273,220 |
Basic earnings per common share attributable to SLM Corporation (in usd per share) | $ 0.33 | $ 0.29 | $ 0.34 | $ 0.35 | $ 0.33 | $ 0.23 | $ 0.24 | $ 0.28 | $ 1.31 | $ 1.08 | $ 0.63 |
Diluted earnings per common share attributable to SLM Corporation (in usd per share) | 0.32 | 0.29 | 0.34 | 0.35 | $ 0.33 | $ 0.23 | $ 0.24 | $ 0.28 | 1.30 | 1.07 | 0.62 |
Declared dividends per common share attributable to SLM Corporation (in usd per share) | $ 0.03 | $ 0 | $ 0.06 | $ 0.03 | $ 0.12 | $ 0 | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) | Feb. 12, 2020 | Jun. 12, 2019 | Mar. 13, 2019 | Sep. 19, 2018 | Jun. 20, 2018 | Mar. 21, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Feb. 20, 2020 | Feb. 19, 2020 | Feb. 20, 2019 |
Subsequent Event [Line Items] | ||||||||||||
Unsecured debt issued | $ 0 | $ 0 | $ 197,000,000 | |||||||||
Estimated weighted average life of student loans | 5 years 4 months 24 days | 5 years 5 months | ||||||||||
Class A and B Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Estimated weighted average life of student loans | 4 years 4 months 28 days | 4 years 3 months 3 days | 4 years 3 months 25 days | 4 years 4 months 24 days | 4 years 5 months 4 days | |||||||
Class A and B Notes | London Interbank Offered Rate (LIBOR) | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Basis spread on variable rate | 1.01% | 92.00% | 0.77% | 0.76% | 0.78% | |||||||
Commercial Paper | ABCP borrowings | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Private education loan funding | $ 750,000,000 | |||||||||||
Subsequent Event | Private Education Loans 2020 Term A | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Private education loan term accounted for as a secured financing | $ 636,000,000 | |||||||||||
Loans sold to third parties | $ 636,000,000 | |||||||||||
Ownership interest percentage on asset-backed financing | 100.00% | |||||||||||
Unsecured debt issued | $ 634,000,000 | |||||||||||
Subsequent Event | Class A and B Notes | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Estimated weighted average life of student loans | 4 years 2 months 4 days | |||||||||||
Subsequent Event | Class A and B Notes | London Interbank Offered Rate (LIBOR) | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Basis spread on variable rate | 0.88% | |||||||||||
Subsequent Event | Private Education Loans Sold To Third-Party | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Loans sold to third parties | $ 954,000,000 | |||||||||||
Accrued interest included in loans sold | $ 68,000,000 | |||||||||||
Subsequent Event | Commercial Paper | ABCP borrowings | ||||||||||||
Subsequent Event [Line Items] | ||||||||||||
Private education loan funding | $ 2,000,000,000 |
Uncategorized Items - a2019form
Label | Element | Value |
Additional Paid-in Capital [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 429,000 |