Cover page
Cover page | 9 Months Ended |
Sep. 30, 2023 shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Sep. 30, 2023 |
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 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 Common Stock, Shares Outstanding | 226,271,057 |
Amendment Flag | false |
Document Fiscal Year Focus | 2023 |
Document Fiscal Period Focus | Q3 |
Entity Central Index Key | 0001032033 |
Current Fiscal Year End Date | --12-31 |
Common stock, par value $.20 per share | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common stock, par value $.20 per share |
Trading Symbol | SLM |
Security Exchange Name | NASDAQ |
Floating Rate Non-Cumulative Preferred Stock, Series B, par value $.20 per share | |
Entity Information [Line Items] | |
Title of 12(b) Security | Floating Rate Non-Cumulative Preferred Stock, Series B, par value $.20 per share |
Trading Symbol | SLMBP |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets | ||
Cash and cash equivalents | $ 3,548,225 | $ 4,616,117 |
Investments: | ||
Trading investments at fair value (cost of $42,196 and $47,554, respectively) | 52,561 | 55,903 |
Available-for-sale investments at fair value (cost of $2,524,634 and $2,554,332, respectively) | 2,315,978 | 2,342,089 |
Other investments | 94,068 | 94,716 |
Total investments | 2,462,607 | 2,492,708 |
Loans held for investment (net of allowance for losses of $1,416,048 and $1,357,075, respectively) | 20,899,181 | 19,626,868 |
Loans held for sale | 0 | 29,448 |
Restricted cash | 175,061 | 156,719 |
Other interest-earning assets | 11,087 | 11,162 |
Accrued interest receivable | 1,457,323 | 1,202,059 |
Premises and equipment, net | 132,622 | 140,728 |
Goodwill and acquired intangible assets, net | 127,723 | 118,273 |
Income taxes receivable, net | 409,658 | 380,058 |
Tax indemnification receivable | 2,945 | 2,816 |
Other assets | 46,787 | 34,073 |
Total assets | 29,273,219 | 28,811,029 |
Liabilities | ||
Deposits | 21,550,745 | 21,448,071 |
Long-term borrowings | 5,515,532 | 5,235,114 |
Other liabilities | 407,718 | 400,874 |
Total liabilities | 27,473,995 | 27,084,059 |
Commitments and contingencies | ||
Equity | ||
Preferred stock, par value $0.20 per share, 20 million shares authorized: Series B: 2.5 million and 2.5 million shares issued, respectively, at stated value of $100 per share | 251,070 | 251,070 |
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 438.2 million and 435.1 million shares issued, respectively | 87,639 | 87,025 |
Additional paid-in capital | 1,140,599 | 1,109,072 |
Accumulated other comprehensive loss (net of tax benefit of ($32,548) and ($30,160), respectively) | (101,315) | (93,870) |
Retained earnings | 3,485,575 | 3,163,640 |
Total SLM Corporation stockholders’ equity before treasury stock | 4,863,568 | 4,516,937 |
Less: Common stock held in treasury at cost: 211.9 million and 194.4 million shares, respectively | (3,064,344) | (2,789,967) |
Total equity | 1,799,224 | 1,726,970 |
Total liabilities and equity | $ 29,273,219 | $ 28,811,029 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands, shares in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Trading investments, cost | $ 42,196 | $ 47,554 |
Available-for sale investments at fair value, cost | 2,524,634 | 2,554,332 |
Allowance for credit losses | $ 1,416,048 | $ 1,357,075 |
Preferred stock, par or stated value (in dollars per share) | $ 0.20 | $ 0.20 |
Preferred stock, shares authorized (in shares) | 20 | 20 |
Preferred stock, shares issued (in shares) | 2.5 | 2.5 |
Preferred stock, liquidation preference (in dollars per share) | $ 100 | $ 100 |
Common stock, par value (in dollars per share) | $ 0.20 | $ 0.20 |
Common stock, shares authorized (in shares) | 1,125 | 1,125 |
Common stock, shares issued (in shares) | 438.2 | 435.1 |
Tax benefit on accumulated other comprehensive loss | $ 32,548 | $ 30,160 |
Common stock held in treasury (in shares) | 211.9 | 194.4 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest income: | ||||
Loans | $ 581,080 | $ 483,327 | $ 1,732,206 | $ 1,387,411 |
Investments | 13,268 | 10,260 | 36,636 | 24,252 |
Cash and cash equivalents | 57,902 | 26,324 | 154,911 | 36,317 |
Total interest income | 652,250 | 519,911 | 1,923,753 | 1,447,980 |
Interest expense: | ||||
Deposits | 209,921 | 105,468 | 584,859 | 215,473 |
Interest expense on short-term borrowings | 3,576 | 3,054 | 9,893 | 8,902 |
Interest expense on long-term borrowings | 54,125 | 41,879 | 152,674 | 116,255 |
Total interest expense | 267,622 | 150,401 | 747,426 | 340,630 |
Net interest income | 384,628 | 369,510 | 1,176,327 | 1,107,350 |
Less: provisions for credit losses | 198,023 | 207,598 | 329,864 | 336,193 |
Net interest income after provisions for credit losses | 186,605 | 161,912 | 846,463 | 771,157 |
Non-interest income: | ||||
Gains (losses) on sales of loans, net | (5) | 74,978 | 124,740 | 324,856 |
Gains (losses) on securities, net | 1,490 | 891 | 1,988 | (2,021) |
Gains (losses) on derivatives and hedging activities, net | 0 | 0 | 0 | (5) |
Other income | 22,753 | 19,234 | 63,275 | 52,451 |
Total non-interest income | 24,238 | 95,103 | 190,003 | 375,281 |
Operating expenses: | ||||
Compensation and benefits | 83,577 | 65,003 | 249,459 | 202,995 |
FDIC assessment fees | 12,283 | 4,592 | 33,663 | 11,501 |
Other operating expenses | 71,542 | 80,369 | 192,983 | 199,204 |
Total operating expenses | 167,402 | 149,964 | 476,105 | 413,700 |
Acquired intangible assets amortization expense | 2,834 | 2,328 | 7,351 | 5,478 |
Total non-interest expenses | 170,236 | 152,292 | 483,456 | 419,178 |
Income before income tax expense | 40,607 | 104,723 | 553,010 | 727,260 |
Income tax expense | 11,242 | 29,551 | 140,062 | 181,203 |
Net income | 29,365 | 75,172 | 412,948 | 546,057 |
Preferred stock dividends | 4,642 | 2,531 | 12,979 | 5,563 |
Net income attributable to SLM Corporation common stock | $ 24,723 | $ 72,641 | $ 399,969 | $ 540,494 |
Basic earnings per common share (in dollars per share) | $ 0.11 | $ 0.29 | $ 1.71 | $ 2.05 |
Average common shares outstanding (in shares) | 226,120 | 251,266 | 234,170 | 263,098 |
Diluted earnings per common share (in dollars per share) | $ 0.11 | $ 0.29 | $ 1.69 | $ 2.03 |
Average common and common equivalent shares outstanding (in shares) | 228,800 | 253,716 | 236,593 | 266,065 |
Declared dividends per common share (in dollars per share) | $ 0.11 | $ 0.11 | $ 0.33 | $ 0.33 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 29,365 | $ 75,172 | $ 412,948 | $ 546,057 |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) on investments | (17,686) | (68,701) | 3,358 | (197,930) |
Unrealized gains (losses) on cash flow hedges | (5,767) | 29,823 | (13,191) | 98,248 |
Total unrealized gains (losses) | (23,453) | (38,878) | (9,833) | (99,682) |
Income tax (expense) benefit | 5,702 | 9,400 | 2,388 | 24,102 |
Other comprehensive income (loss), net of tax (expense) benefit | (17,751) | (29,478) | (7,445) | (75,580) |
Total comprehensive income | $ 11,614 | $ 45,694 | $ 405,503 | $ 470,477 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Series B Preferred Stock | Preferred Stock | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings | Retained Earnings Series B Preferred Stock | Treasury Stock |
Beginning balance, shares issued (in shares) at Dec. 31, 2021 | 2,510,696 | 432,013,372 | |||||||
Beginning balance (in shares) at Dec. 31, 2021 | (153,056,639) | ||||||||
Beginning balance (in shares) at Dec. 31, 2021 | 278,956,733 | ||||||||
Beginning balance at Dec. 31, 2021 | $ 2,149,711 | $ 251,070 | $ 86,403 | $ 1,074,384 | $ (17,897) | $ 2,817,134 | $ (2,061,383) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 546,057 | 546,057 | |||||||
Other comprehensive (loss) income, net of tax | (75,580) | (75,580) | |||||||
Total comprehensive income | 470,477 | ||||||||
Cash dividends declared: | |||||||||
Common Stock | (86,219) | (86,219) | |||||||
Preferred Stock | $ (5,563) | $ (5,563) | |||||||
Dividend equivalent units related to employee stock-based compensation plans | $ (557) | 245 | (802) | ||||||
Issuance of common shares (in shares) | 3,093,392 | 3,093,392 | |||||||
Issuance of common shares | $ 990 | $ 619 | 371 | ||||||
Stock-based compensation expense | $ 27,050 | 26,761 | 289 | ||||||
Common stock repurchased (in shares) | (30,721,944) | (30,721,944) | (30,721,944) | ||||||
Common stock repurchased | $ (552,887) | $ (552,887) | |||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (1,131,351) | (1,131,351) | (1,131,351) | ||||||
Shares repurchased related to employee stock-based compensation plans | $ (20,774) | $ (20,774) | |||||||
Ending balance, shares issued (in shares) at Sep. 30, 2022 | 2,510,696 | 435,106,764 | |||||||
Ending balance (in shares) at Sep. 30, 2022 | (184,909,934) | ||||||||
Ending balance (in shares) at Sep. 30, 2022 | 250,196,830 | ||||||||
Ending balance at Sep. 30, 2022 | 1,982,228 | $ 251,070 | $ 87,022 | 1,101,761 | (93,477) | 3,270,896 | $ (2,635,044) | ||
Beginning balance, shares issued (in shares) at Jun. 30, 2022 | 2,510,696 | 435,102,082 | |||||||
Beginning balance (in shares) at Jun. 30, 2022 | (183,717,942) | ||||||||
Beginning balance (in shares) at Jun. 30, 2022 | 251,384,140 | ||||||||
Beginning balance at Jun. 30, 2022 | 1,976,810 | $ 251,070 | $ 87,021 | 1,095,296 | (63,999) | 3,225,610 | $ (2,618,188) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 75,172 | 75,172 | |||||||
Other comprehensive (loss) income, net of tax | (29,478) | (29,478) | |||||||
Total comprehensive income | 45,694 | ||||||||
Cash dividends declared: | |||||||||
Common Stock | (27,643) | (27,643) | |||||||
Preferred Stock | (2,531) | (2,531) | |||||||
Dividend equivalent units related to employee stock-based compensation plans | $ (540) | (539) | (1) | ||||||
Issuance of common shares (in shares) | 4,682 | 4,682 | |||||||
Issuance of common shares | $ 540 | $ 1 | 539 | ||||||
Stock-based compensation expense | $ 6,754 | 6,465 | 289 | ||||||
Common stock repurchased (in shares) | (1,191,544) | (1,191,544) | (1,191,544) | ||||||
Common stock repurchased | $ (16,849) | $ (16,849) | |||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (448) | (448) | (448) | ||||||
Shares repurchased related to employee stock-based compensation plans | $ (7) | $ (7) | |||||||
Ending balance, shares issued (in shares) at Sep. 30, 2022 | 2,510,696 | 435,106,764 | |||||||
Ending balance (in shares) at Sep. 30, 2022 | (184,909,934) | ||||||||
Ending balance (in shares) at Sep. 30, 2022 | 250,196,830 | ||||||||
Ending balance at Sep. 30, 2022 | $ 1,982,228 | $ 251,070 | $ 87,022 | 1,101,761 | (93,477) | 3,270,896 | $ (2,635,044) | ||
Beginning balance, shares issued (in shares) at Dec. 31, 2022 | 2,510,696 | 435,121,140 | |||||||
Beginning balance (in shares) at Dec. 31, 2022 | (194,400,000) | (194,445,696) | |||||||
Beginning balance (in shares) at Dec. 31, 2022 | 240,675,444 | ||||||||
Beginning balance at Dec. 31, 2022 | $ 1,726,970 | $ 251,070 | $ 87,025 | 1,109,072 | (93,870) | 3,163,640 | $ (2,789,967) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 412,948 | 412,948 | |||||||
Other comprehensive (loss) income, net of tax | (7,445) | (7,445) | |||||||
Total comprehensive income | 405,503 | ||||||||
Cash dividends declared: | |||||||||
Common Stock | $ (76,817) | (76,817) | |||||||
Preferred Stock | (12,979) | (12,979) | |||||||
Issuance of common shares (in shares) | 3,073,639 | 3,073,639 | |||||||
Issuance of common shares | $ 2,624 | $ 614 | 3,227 | (1,217) | |||||
Stock-based compensation expense | $ 28,300 | 28,300 | |||||||
Common stock repurchased (in shares) | (16,389,696) | (16,389,696) | (16,389,696) | ||||||
Common stock repurchased | $ (257,563) | $ (257,563) | |||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (1,088,330) | (1,088,330) | (1,088,330) | ||||||
Shares repurchased related to employee stock-based compensation plans | $ (16,814) | $ (16,814) | |||||||
Ending balance, shares issued (in shares) at Sep. 30, 2023 | 2,510,696 | 438,194,779 | |||||||
Ending balance (in shares) at Sep. 30, 2023 | (211,900,000) | (211,923,722) | |||||||
Ending balance (in shares) at Sep. 30, 2023 | 226,271,057 | ||||||||
Ending balance at Sep. 30, 2023 | $ 1,799,224 | $ 251,070 | $ 87,639 | 1,140,599 | (101,315) | 3,485,575 | $ (3,064,344) | ||
Beginning balance, shares issued (in shares) at Jun. 30, 2023 | 2,510,696 | 437,993,893 | |||||||
Beginning balance (in shares) at Jun. 30, 2023 | (211,913,035) | ||||||||
Beginning balance (in shares) at Jun. 30, 2023 | 226,080,858 | ||||||||
Beginning balance at Jun. 30, 2023 | 1,806,364 | $ 251,070 | $ 87,599 | 1,129,537 | (83,564) | 3,485,732 | $ (3,064,010) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 29,365 | 29,365 | |||||||
Other comprehensive (loss) income, net of tax | (17,751) | (17,751) | |||||||
Total comprehensive income | 11,614 | ||||||||
Cash dividends declared: | |||||||||
Common Stock | $ (24,879) | (24,879) | |||||||
Preferred Stock | $ (4,642) | $ (4,642) | |||||||
Issuance of common shares (in shares) | 200,886 | 200,886 | |||||||
Issuance of common shares | $ 2,629 | $ 40 | 2,590 | (1) | |||||
Stock-based compensation expense | $ 8,472 | 8,472 | |||||||
Common stock repurchased (in shares) | 0 | ||||||||
Common stock repurchased | $ (161) | $ (161) | |||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (10,687) | (10,687) | (10,687) | ||||||
Shares repurchased related to employee stock-based compensation plans | $ (173) | $ (173) | |||||||
Ending balance, shares issued (in shares) at Sep. 30, 2023 | 2,510,696 | 438,194,779 | |||||||
Ending balance (in shares) at Sep. 30, 2023 | (211,900,000) | (211,923,722) | |||||||
Ending balance (in shares) at Sep. 30, 2023 | 226,271,057 | ||||||||
Ending balance at Sep. 30, 2023 | $ 1,799,224 | $ 251,070 | $ 87,639 | $ 1,140,599 | $ (101,315) | $ 3,485,575 | $ (3,064,344) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Common stock dividend (in dollars per share) | $ 0.11 | $ 0.11 | $ 0.33 | $ 0.33 |
Series B Preferred Stock | ||||
Preferred stock dividend rate (in dollars per share) | $ 1.85 | $ 1.01 | $ 5.17 | $ 2.22 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating activities | ||
Net income | $ 412,948 | $ 546,057 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provisions for credit losses | 329,864 | 336,193 |
Income tax expense | 140,062 | 181,203 |
Amortization of brokered deposit placement fee | 8,818 | 9,757 |
Amortization of Secured Borrowing Facility upfront fee | 2,149 | 1,930 |
Amortization of deferred loan origination costs and loan premium/(discounts), net | 9,831 | 11,619 |
Net amortization of discount on investments | (2,012) | 802 |
Increase in tax indemnification receivable | (129) | (345) |
Depreciation of premises and equipment | 13,404 | 12,840 |
Acquired intangible assets amortization expense | 7,351 | 5,478 |
Stock-based compensation expense | 28,300 | 27,152 |
Unrealized (gains) losses on derivatives and hedging activities, net | (280) | 247 |
Gains on sales of loans, net | (124,740) | (324,856) |
(Gains) losses on securities, net | (1,988) | 2,021 |
Acquisition transaction costs, net | 997 | 2,602 |
Other adjustments to net income, net | 12,279 | 11,153 |
Changes in operating assets and liabilities: | ||
Increase in accrued interest receivable | (777,125) | (580,704) |
Increase in trading investments | 0 | (5,064) |
Increase in non-marketable securities | (853) | (2,050) |
Decrease (increase) in other interest-earning assets | 75 | (1,370) |
Increase in other assets | (31,211) | (20,725) |
Decrease in income taxes payable, net | (163,077) | (217,909) |
Increase in accrued interest payable | 27,829 | 25,307 |
Decrease in other liabilities | (9,988) | (15,471) |
Total adjustments | (530,444) | (540,190) |
Total net cash (used in) provided by operating activities | (117,496) | 5,867 |
Investing activities | ||
Loans acquired and originated | (5,600,123) | (5,234,895) |
Net proceeds from sales of loans held for investment and loans held for sale | 2,157,024 | 3,460,758 |
Proceeds from FFELP Loan claim payments | 39,836 | 22,587 |
Net decrease in loans held for investment and loans held for sale (other than loans acquired and originated, and loan sales) | 2,338,426 | 2,833,822 |
Purchases of available-for-sale securities | (70,790) | (753,129) |
Proceeds from sales and maturities of available-for-sale securities | 215,042 | 812,712 |
Purchase of subsidiary, net of cash acquired | (14,654) | (127,654) |
Total net cash (used in) provided by investing activities | (935,239) | 1,014,201 |
Financing activities | ||
Brokered deposit placement fee | (6,904) | (8,147) |
Net increase (decrease) in certificates of deposit | 886,475 | (77,938) |
Net increase (decrease) in other deposits | (796,218) | 611,851 |
Borrowings collateralized by loans in securitization trusts - issued | 1,135,054 | 572,640 |
Borrowings collateralized by loans in securitization trusts - repaid | (863,230) | (988,505) |
Fees paid on Secured Borrowing Facility | (2,850) | (2,838) |
Common stock dividends paid | (76,817) | (86,219) |
Preferred stock dividends paid | (12,979) | (5,563) |
Common stock repurchased | (259,331) | (555,607) |
Total net cash provided by (used in) financing activities | 3,185 | (540,741) |
Net increase (decrease) in cash, cash equivalents and restricted cash | (1,049,550) | 479,327 |
Cash, cash equivalents and restricted cash at beginning of period | 4,772,836 | 4,545,344 |
Cash, cash equivalents and restricted cash at end of period | 3,723,286 | 5,024,671 |
Cash disbursements made for: | ||
Interest | 691,632 | 285,626 |
Income taxes paid | 171,022 | 219,975 |
Income taxes refunded | (8,157) | (2,023) |
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Balance Sheets: | ||
Cash and cash equivalents | 3,548,225 | 4,846,754 |
Restricted cash | 175,061 | 177,917 |
Total cash, cash equivalents and restricted cash | 3,723,286 | 5,024,671 |
Collateralized borrowings | ||
Financing activities | ||
Issuance costs | (15) | (40) |
Unsecured debt offering | ||
Financing activities | ||
Issuance costs | $ 0 | $ (375) |
Significant Accounting Policies
Significant Accounting Policies | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying unaudited, consolidated financial statements of SLM Corporation (“Sallie Mae,” “SLM,” the “Company,” “we,” or “us”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all the information and footnotes required by GAAP for complete consolidated financial statements. The consolidated financial statements include the accounts of SLM Corporation and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results for the year ending December 31, 2023 or for any other period. These unaudited financial statements should be read in conjunction with the audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”). Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. We consolidate any variable interest entity (“VIE”) where we have determined we are the primary beneficiary. The primary beneficiary is the entity which has both: (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and (ii) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. Business Combination On July 21, 2023, we completed the acquisition of several key assets of Scholly, Inc. (“Scholly”). Scholly is engaged in the business of operating as a scholarship publishing and servicing platform, comprised of websites and mobile application search products which offer custom recommendations for post-secondary scholarships for students, their families, and others as well as related services for scholarship providers. The addition of Scholly assets will support our mission of providing students with the confidence needed to successfully navigate the higher education journey. The acquisition was accounted for as a business combination using the acquisition method of accounting in accordance with the Financial Accounting Standards Board’s (“FASB’s”) Accounting Standard Codification 805, “Business Combinations,” whereby as of the acquisition date, the acquired tangible assets and liabilities were recorded at their estimated fair values. The identifiable intangible assets were recorded at fair values as determined by an independent appraiser. The purchase price allocation for Scholly resulted in an excess purchase price over fair value of net assets acquired, or goodwill, of $5 million. Certain amounts are provisional and are subject to change, including final working capital adjustments and goodwill. The results of operations of Scholly have been included in our consolidated financial statements since the acquisition date. We have not disclosed the pro forma impact of this acquisition to the results of operations for the three and nine months ended September 30, 2023, as the pro forma impact was deemed immaterial. Transaction costs associated with the Scholly acquisition were approximately $1 million and were expensed as incurred within “Other operating expenses” in the consolidated statements of income. Identifiable intangible assets at the acquisition date included definite life intangible assets with an aggregate fair value of approximately $11 million, including tradename and trademarks, developed technology, customer relationships, and partner relationships. The intangible assets will be amortized over a period of two |
Investments
Investments | 9 Months Ended |
Sep. 30, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Trading Investments We periodically sell Private Education Loans through securitization transactions where we are required to retain a five percent vertical risk retention interest (i.e., five percent of each class issued in the securitizations). We classify those vertical risk retention interests related to the transactions as available-for-sale investments, except for the interest in the residual classes, which we classify as trading investments recorded at fair value with changes recorded through earnings. At December 31, 2022 we had a $5 million investment in a convertible debt security classified as a trading investment. In March 2023, this security, and the related accrued interest, was converted into equity securities classified as investments in non-marketable securities. At September 30, 2023 and December 31, 2022, we had $53 million and $56 million, respectively, classified as trading investments. Available-for-Sale Investments The amortized cost and fair value of securities available for sale are as follows: As of September 30, 2023 Amortized Cost Allowance for credit losses (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale: Mortgage-backed securities $ 438,527 $ — $ — $ (87,399) $ 351,128 Utah Housing Corporation bonds 3,408 — — (555) 2,853 U.S. government-sponsored enterprises and Treasuries 1,669,748 — — (96,757) 1,572,991 Other securities 412,951 — 595 (24,540) 389,006 Total $ 2,524,634 $ — $ 595 $ (209,251) $ 2,315,978 As of December 31, 2022 Amortized Cost Allowance for credit losses (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale: Mortgage-backed securities $ 389,067 $ — $ 2 $ (68,705) $ 320,364 Utah Housing Corporation bonds 3,584 — — (357) 3,227 U.S. government-sponsored enterprises and Treasuries 1,804,726 — — (115,416) 1,689,310 Other securities 356,955 — 33 (27,800) 329,188 Total $ 2,554,332 $ — $ 35 $ (212,278) $ 2,342,089 (1) Represents the amount of impairment that has resulted from credit-related factors and that was recognized in the consolidated balance sheets (as a credit loss expense on available-for-sale securities). The amount excludes unrealized losses related to non-credit factors. 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: (Dollars in thousands) Less than 12 months 12 months or more Total Gross Estimated Gross Estimated Gross Estimated As of September 30, 2023: Mortgage-backed securities $ (3,342) $ 67,737 $ (84,057) $ 283,391 $ (87,399) $ 351,128 Utah Housing Corporation bonds — — (555) 2,853 (555) 2,853 U.S. government-sponsored enterprises and Treasuries — — (96,757) 1,572,991 (96,757) 1,572,991 Other securities (2,051) 81,109 (22,489) 236,226 (24,540) 317,335 Total $ (5,393) $ 148,846 $ (203,858) $ 2,095,461 $ (209,251) $ 2,244,307 As of December 31, 2022: Mortgage-backed securities $ (13,956) $ 99,598 $ (54,749) $ 220,576 $ (68,705) $ 320,174 Utah Housing Corporation bonds (357) 3,227 — — (357) 3,227 U.S. government-sponsored enterprises and Treasuries (28,128) 689,300 (87,288) 1,000,010 (115,416) 1,689,310 Other securities (15,852) 232,546 (11,948) 92,883 (27,800) 325,429 Total $ (58,293) $ 1,024,671 $ (153,985) $ 1,313,469 $ (212,278) $ 2,338,140 At September 30, 2023 and December 31, 2022, 226 of 230 and 191 of 194, respectively, of our available-for-sale securities were in an unrealized loss position. Impairment For available-for-sale securities in an unrealized loss position, we first assess whether we intend to sell, or it is more likely than not that we will be required to sell, the security before recovery of its amortized cost basis. If either of these criteria are met, the security’s amortized cost basis is written down to fair value through net income. For securities in an unrealized loss position that do not meet these criteria, we evaluate whether the decline in fair value has resulted from credit loss or other factors. In making this assessment, we consider the extent to which fair value is less than amortized cost, any changes to the rating of the security by a rating agency, adverse conditions specifically related to the security, as well as any guarantees (e.g., guarantees by the U.S. Government) that may be applicable to the security. If this assessment indicates a credit loss exists, the credit-related portion of the loss is recorded as an allowance for losses on the security. Our investment portfolio contains mortgage-backed securities issued by Ginnie Mae, Fannie Mae, and Freddie Mac, as well as Utah Housing Corporation bonds. We own these securities to meet our requirements under the Community Reinvestment Act (“CRA”). We also invest in other U.S. government-sponsored enterprise securities issued by the Federal Home Loan Banks, Freddie Mac, and the Federal Farm Credit Bank. Our mortgage-backed securities that were issued under Ginnie Mae programs carry a full faith and credit guarantee from the U.S. Government. The remaining mortgage-backed securities in a net loss position carry a principal and interest guarantee by Fannie Mae or Freddie Mac, respectively. Our Treasury and other U.S. government-sponsored enterprise bonds are rated Aaa by Moody’s Investors Service or AA+ by Standard and Poor’s. 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. Based on this qualitative analysis, we have determined that no credit impairment exists. We periodically sell Private Education Loans through securitization transactions where we are required to retain a five percent vertical risk retention interest. We classify the non-residual vertical risk retention interests as available-for-sale investments. We have the intent and ability to hold each of these bonds for a period of time sufficient for the market price to recover to at least the adjusted amortized cost of the security. We expect to receive all contractual cash flows related to these investments and do not consider a credit impairment to exist. As of September 30, 2023, 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. As of September 30, 2023 Year of Maturity (dollars in thousands) Amortized Cost Estimated Fair Value 2023 $ 25,000 $ 24,767 2024 699,111 677,812 2025 298,564 285,252 2026 548,563 492,182 2027 98,511 92,979 2038 69 68 2039 663 622 2042 2,439 2,008 2043 4,209 3,573 2044 4,945 4,302 2045 5,163 4,337 2046 7,841 6,540 2047 7,917 6,658 2048 2,032 1,790 2049 15,899 13,366 2050 109,845 82,601 2051 156,133 116,543 2052 54,219 44,328 2053 163,617 150,202 2054 75,509 67,142 2055 90,148 86,125 2056 105,584 104,292 2058 48,653 48,489 Total $ 2,524,634 $ 2,315,978 Some of the mortgage-backed securities and a portion of the government securities have been pledged to the Federal Reserve Bank (the “FRB”) as collateral against any advances and accrued interest under the Primary Credit lending program sponsored by the FRB. We had $582 million and $547 million par value of securities pledged to this borrowing facility at September 30, 2023 and December 31, 2022, respectively, as discussed further in Notes to Consolidated Financial Statements, Note 9, “Borrowings” in this Form 10-Q. 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. Changes in market value are recorded through earnings. Because these are non-marketable securities, we use observable price changes of identical or similar securities of the same issuer, or when observable prices are not available, use market data of similar entities, in determining any changes in the value of the securities. In March 2023 our $5 million investment in a convertible debt security, classified as a trading investment, and the related accrued interest were converted into equity securities and were reclassified to investments in non-marketable securities. As of September 30, 2023, and December 31, 2022, our total investment in these securities was $14 million and $8 million, respectively. Low Income Housing Tax Credit Investments We 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 and tax benefits from net operating losses on the underlying properties. Total carrying value of the LIHTC investments was $74 million at September 30, 2023 and $80 million at December 31, 2022. We are periodically required to provide additional financial support during the investment period. Our liability for these unfunded commitments was $34 million at September 30, 2023 and $46 million at December 31, 2022. Related to these investments, we recognized tax credits and other tax benefits through tax expense of $1 million at September 30, 2023 and $9 million at December 31, 2022. Tax credits and other tax benefits are recognized as part of our annual effective tax rate used to determine tax expense in a given quarter. Accordingly, the portion of a year’s expected tax benefits recognized in any given quarter may differ from 25 percent. |
Loans Held for Investment
Loans Held for Investment | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Loans Held for Investment | Loans Held for Investment Loans held for investment consist of Private Education Loans and FFELP Loans. We use “Private Education Loans” to mean education loans to students or their families that are not made, insured, or guaranteed by any state or federal government. Private Education Loans do not include loans insured or guaranteed under the previously existing Federal Family Education Loan Program (“FFELP”). We use “Credit Cards” to refer to the suite of Credit Cards that we previously held. At September 30, 2022, we transferred our Credit Card portfolio to loans held for sale and subsequently sold the Credit Card portfolio to a third party in May 2023. For additional information, see Notes to Consolidated Financial Statements, Note 4, “Loans Held for Sale” in this Form 10-Q. 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 SOFR, the Secured Overnight Financing Rate. As of September 30, 2023, 35 percent of all of our Private Education Loans were indexed to SOFR. As of December 30, 2022, 45 percent of all of our Private Education Loans were indexed to LIBOR, the London interbank offered rate, or SOFR. We provide incentives for customers to include a cosigner on the loan, and the vast majority of Private Education Loans in our portfolio are cosigned. We also encourage customers to make payments while in school. FFELP Loans are insured as to their principal and accrued interest in the event of default, subject to a risk-sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement on all qualifying claims. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement on all qualifying claims. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement on all qualifying claims. In the first nine months of 2023, we recognized $128 million in gains from the sale of approximately $2.10 billion of Private Education Loans, including $1.96 billion of principal and $144 million in capitalized interest, to an unaffiliated third party. In the first nine months of 2022, we recognized $325 million in gains from the sale of approximately $3.29 billion of our Private Education Loans, including $3.08 billion of principal and $213 million in capitalized interest, to unaffiliated third parties. There were VIEs created in the execution of certain of these loan sales; however, based on our consolidation analysis, we are not the primary beneficiary of these VIEs. These transactions qualified for sale treatment and removed the balance of the loans from our balance sheet on the respective settlement dates. We remained the servicer of these loans pursuant to applicable servicing agreements executed in connection with the sales. For additional information, see Notes to Consolidated Financial Statements, Note 9, “Borrowings - Unconsolidated VIEs” in this Form 10-Q. Loans held for investment are summarized as follows: September 30, December 31, (Dollars in thousands) 2023 2022 Private Education Loans: Fixed-rate $ 14,000,110 $ 11,108,079 Variable-rate 7,680,757 9,195,609 Total Private Education Loans, gross 21,680,867 20,303,688 Deferred origination costs and unamortized premium/(discount) 78,673 69,656 Allowance for credit losses (1,411,232) (1,353,631) Total Private Education Loans, net 20,348,308 19,019,713 FFELP Loans 554,309 609,050 Deferred origination costs and unamortized premium/(discount) 1,380 1,549 Allowance for credit losses (4,816) (3,444) Total FFELP Loans, net 550,873 607,155 Loans held for investment, net $ 20,899,181 $ 19,626,868 The estimated weighted average life of education loans in our portfolio was approximately 5.0 years and 5.0 years at September 30, 2023 and December 31, 2022, respectively. The average balance (net of unamortized premium/(discount)) and the respective weighted average interest rates of loans held for investment in our portfolio are summarized as follows: 2023 2022 Three Months Ended September 30, Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 20,649,663 10.96 % $ 19,958,763 9.43 % FFELP Loans 563,502 7.35 655,724 5.03 Total portfolio $ 21,213,165 $ 20,614,487 2023 2022 Nine Months Ended September 30, Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 21,032,541 10.80 % $ 20,685,372 8.82 % FFELP Loans 583,427 7.10 673,654 4.18 Total portfolio $ 21,615,968 $ 21,359,026 |
Loans Held for Sale
Loans Held for Sale | 9 Months Ended |
Sep. 30, 2023 | |
Transfers and Servicing [Abstract] | |
Loans Held for Sale | Loans Held for Investment Loans held for investment consist of Private Education Loans and FFELP Loans. We use “Private Education Loans” to mean education loans to students or their families that are not made, insured, or guaranteed by any state or federal government. Private Education Loans do not include loans insured or guaranteed under the previously existing Federal Family Education Loan Program (“FFELP”). We use “Credit Cards” to refer to the suite of Credit Cards that we previously held. At September 30, 2022, we transferred our Credit Card portfolio to loans held for sale and subsequently sold the Credit Card portfolio to a third party in May 2023. For additional information, see Notes to Consolidated Financial Statements, Note 4, “Loans Held for Sale” in this Form 10-Q. 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 SOFR, the Secured Overnight Financing Rate. As of September 30, 2023, 35 percent of all of our Private Education Loans were indexed to SOFR. As of December 30, 2022, 45 percent of all of our Private Education Loans were indexed to LIBOR, the London interbank offered rate, or SOFR. We provide incentives for customers to include a cosigner on the loan, and the vast majority of Private Education Loans in our portfolio are cosigned. We also encourage customers to make payments while in school. FFELP Loans are insured as to their principal and accrued interest in the event of default, subject to a risk-sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement on all qualifying claims. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement on all qualifying claims. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement on all qualifying claims. In the first nine months of 2023, we recognized $128 million in gains from the sale of approximately $2.10 billion of Private Education Loans, including $1.96 billion of principal and $144 million in capitalized interest, to an unaffiliated third party. In the first nine months of 2022, we recognized $325 million in gains from the sale of approximately $3.29 billion of our Private Education Loans, including $3.08 billion of principal and $213 million in capitalized interest, to unaffiliated third parties. There were VIEs created in the execution of certain of these loan sales; however, based on our consolidation analysis, we are not the primary beneficiary of these VIEs. These transactions qualified for sale treatment and removed the balance of the loans from our balance sheet on the respective settlement dates. We remained the servicer of these loans pursuant to applicable servicing agreements executed in connection with the sales. For additional information, see Notes to Consolidated Financial Statements, Note 9, “Borrowings - Unconsolidated VIEs” in this Form 10-Q. Loans held for investment are summarized as follows: September 30, December 31, (Dollars in thousands) 2023 2022 Private Education Loans: Fixed-rate $ 14,000,110 $ 11,108,079 Variable-rate 7,680,757 9,195,609 Total Private Education Loans, gross 21,680,867 20,303,688 Deferred origination costs and unamortized premium/(discount) 78,673 69,656 Allowance for credit losses (1,411,232) (1,353,631) Total Private Education Loans, net 20,348,308 19,019,713 FFELP Loans 554,309 609,050 Deferred origination costs and unamortized premium/(discount) 1,380 1,549 Allowance for credit losses (4,816) (3,444) Total FFELP Loans, net 550,873 607,155 Loans held for investment, net $ 20,899,181 $ 19,626,868 The estimated weighted average life of education loans in our portfolio was approximately 5.0 years and 5.0 years at September 30, 2023 and December 31, 2022, respectively. The average balance (net of unamortized premium/(discount)) and the respective weighted average interest rates of loans held for investment in our portfolio are summarized as follows: 2023 2022 Three Months Ended September 30, Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 20,649,663 10.96 % $ 19,958,763 9.43 % FFELP Loans 563,502 7.35 655,724 5.03 Total portfolio $ 21,213,165 $ 20,614,487 2023 2022 Nine Months Ended September 30, Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 21,032,541 10.80 % $ 20,685,372 8.82 % FFELP Loans 583,427 7.10 673,654 4.18 Total portfolio $ 21,615,968 $ 21,359,026 |
Allowance for Credit Losses
Allowance for Credit Losses | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses Our provision for credit losses represents the periodic expense of maintaining an allowance sufficient to absorb lifetime expected credit losses in the held for investment loan portfolios. The evaluation of the allowance for credit losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. We believe the allowance for credit losses is appropriate to cover lifetime losses expected to be incurred in the loan portfolios. See Notes to Consolidated Financial Statements, Note 2, “Significant Accounting Policies — Allowance for Credit Losses — Allowance for Private Education Loan Losses, — Allowance for FFELP Loan Losses” in our 2022 Form 10-K for a more detailed discussion. Allowance for Credit Losses Metrics Three Months Ended September 30, 2023 FFELP Private Education Total Allowance for Credit Losses Beginning balance $ 4,422 $ 1,360,294 $ 1,364,716 Transfer from unfunded commitment liability (1) — 101,687 101,687 Provisions: Provision for current period 666 44,423 45,089 Total provisions (2) 666 44,423 45,089 Net charge-offs: Charge-offs (272) (104,865) (105,137) Recoveries — 9,693 9,693 Net charge-offs (272) (95,172) (95,444) Ending Balance $ 4,816 $ 1,411,232 $ 1,416,048 Allowance (3) : Ending balance: collectively evaluated for impairment $ 4,816 $ 1,411,232 $ 1,416,048 Loans (3) : Ending balance: collectively evaluated for impairment $ 554,309 $ 21,680,867 $ 22,235,176 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,283,388 $ 1,283,388 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.25 % 2.53 % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.87 % 6.15 % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 1.15 % 8.84 % Allowance coverage of net charge-offs (annualized) 4.43 3.71 Ending total loans, gross $ 554,309 $ 21,680,867 Average loans in repayment (4) $ 428,028 $ 15,023,993 Ending loans in repayment (4) $ 418,022 $ 15,505,145 Accrued interest to be capitalized on loans in repayment (6) $ — $ 464,807 (1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Three Months Ended September 30, 2023 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ 44,423 Provisions for unfunded loan commitments 152,934 Total Private Education Loan provisions for credit losses 197,357 Other impacts to the provisions for credit losses: FFELP Loans 666 Total 666 Provisions for credit losses reported in consolidated statements of income $ 198,023 (3) For the three months ended September 30, 2023, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment. (4) 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 (but, for purposes of the table, do not include those loans while they are in forbearance). (5) Accrued interest to be capitalized on Private Education Loans only. (6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance). Three Months Ended September 30, 2022 FFELP Private Credit Cards Total Allowance for Credit Losses Beginning balance $ 3,929 $ 1,074,744 $ 2,393 $ 1,081,066 Transfer from unfunded commitment liability (1) — 168,377 — 168,377 Provisions: Provision for current period 29 95,482 2,039 97,550 Loan sale reduction to provision — (50,226) — (50,226) Loans transferred from held-for-sale — — (2,372) (2,372) Total provisions (2) 29 45,256 (333) 44,952 Net charge-offs: Charge-offs (147) (109,350) (2,062) (111,559) Recoveries — 11,400 2 11,402 Net charge-offs (147) (97,950) (2,060) (100,157) Ending Balance $ 3,811 $ 1,190,427 $ — $ 1,194,238 Allowance (3) : Ending balance: collectively evaluated for impairment $ 3,811 $ 1,190,427 $ — $ 1,194,238 Loans (3) : Ending balance: collectively evaluated for impairment $ 643,614 $ 20,104,463 $ — $ 20,748,077 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,056,983 $ — $ 1,056,983 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.11 % 2.67 % — % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.59 % 5.63 % — % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 0.78 % 7.98 % — % Allowance coverage of net charge-offs (annualized) 6.48 3.04 — Ending total loans, gross $ 643,614 $ 20,104,463 $ — Average loans in repayment (4) $ 518,226 $ 14,674,437 $ — Ending loans in repayment (4) $ 489,920 $ 14,546,556 $ — Accrued interest to be capitalized on loans in repayment (6) $ — $ 371,388 $ — (1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Three Months Ended September 30, 2022 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ 45,256 Provisions for unfunded loan commitments 162,646 Total Private Education Loan provisions for credit losses 207,902 Other impacts to the provisions for credit losses: FFELP Loans 29 Credit Cards (333) Total (304) Provisions for credit losses reported in consolidated statements of income $ 207,598 (3) For the three months ended September 30, 2022, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment. (4) 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 (but, for purposes of the table, do not include those loans while they are in forbearance). (5) Accrued interest to be capitalized on Private Education Loans only. (6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance). Nine Months Ended September 30, 2023 FFELP Private Education Total Allowance for Credit Losses Beginning balance $ 3,444 $ 1,353,631 $ 1,357,075 Transfer from unfunded commitment liability (1) — 278,388 278,388 Provisions: Provision for current period 2,225 196,859 199,084 Loan sale reduction to provision — (136,531) (136,531) Total provisions (2) 2,225 60,328 62,553 Net charge-offs: Charge-offs (853) (314,500) (315,353) Recoveries — 33,385 33,385 Net charge-offs (853) (281,115) (281,968) Ending Balance $ 4,816 $ 1,411,232 $ 1,416,048 Allowance (3) : Ending balance: collectively evaluated for impairment $ 4,816 $ 1,411,232 $ 1,416,048 Loans (3) : Ending balance: collectively evaluated for impairment $ 554,309 $ 21,680,867 $ 22,235,176 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,283,388 $ 1,283,388 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.26 % 2.44 % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.87 % 6.15 % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 1.15 % 8.84 % Allowance coverage of net charge-offs (annualized) 4.23 3.77 Ending total loans, gross $ 554,309 $ 21,680,867 Average loans in repayment (4) $ 440,716 $ 15,358,596 Ending loans in repayment (4) $ 418,022 $ 15,505,145 Accrued interest to be capitalized on loans in repayment (6) $ — $ 464,807 (1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Nine Months Ended September 30, 2023 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ 60,328 Provisions for unfunded loan commitments 267,311 Total Private Education Loan provisions for credit losses 327,639 Other impacts to the provisions for credit losses: FFELP Loans 2,225 Total 2,225 Provisions for credit losses reported in consolidated statements of income $ 329,864 (3) For the nine months ended September 30, 2023, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment. (4) 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 (but, for purposes of the table, do not include those loans while they are in forbearance). (5) Accrued interest to be capitalized on Private Education Loans only. (6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance). Nine Months Ended September 30, 2022 FFELP Private Credit Cards Total Allowance for Credit Losses Beginning balance $ 4,077 $ 1,158,977 $ 2,281 $ 1,165,335 Transfer from unfunded commitment liability (1) — 303,591 — 303,591 Provisions: Provision for current period 110 168,473 2,635 171,218 Loan sale reduction to provision — (171,325) — (171,325) Loans transferred from held-for-sale — — (2,372) (2,372) Total provisions (2) 110 (2,852) 263 (2,479) Net charge-offs: Charge-offs (376) (299,699) (2,549) (302,624) Recoveries — 30,410 5 30,415 Net charge-offs (376) (269,289) (2,544) (272,209) Ending Balance $ 3,811 $ 1,190,427 $ — $ 1,194,238 Allowance (3) : Ending balance: collectively evaluated for impairment $ 3,811 $ 1,190,427 $ — $ 1,194,238 Loans (3) : Ending balance: collectively evaluated for impairment $ 643,614 $ 20,104,463 $ — $ 20,748,077 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,056,983 $ — $ 1,056,983 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.09 % 2.37 % — % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.59 % 5.63 % — % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 0.78 % 7.98 % — % Allowance coverage of net charge-offs (annualized) 7.60 3.32 — Ending total loans, gross $ 643,614 $ 20,104,463 $ — Average loans in repayment (4) $ 532,275 $ 15,173,465 $ — Ending loans in repayment (4) $ 489,920 $ 14,546,556 $ — Accrued interest to be capitalized on loans in repayment (6) $ — $ 371,388 $ — (1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Nine Months Ended September 30, 2022 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ (2,852) Provisions for unfunded loan commitments 338,672 Total Private Education Loan provisions for credit losses 335,820 Other impacts to the provisions for credit losses: FFELP Loans 110 Credit Cards 263 Total 373 Provisions for credit losses reported in consolidated statements of income $ 336,193 (3) For the nine months ended September 30, 2022, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment. (4) 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 (but, for purposes of the table, do not include those loans while they are in forbearance). (5) Accrued interest to be capitalized on Private Education Loans only. (6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance). Allowance for Credit Losses In the fourth quarter of 2022, we changed our loss model to include forecasts of college graduate unemployment, home price index, and median family income in determining the adequacy of the allowance for credit losses. Prior to this change, we used forecasts of college graduate unemployment and the Consumer Price Index in our loss forecasting models. We obtain forecasts for these inputs from Moody’s Analytics. Moody’s Analytics provides a range of forecasts for each of these inputs with various likelihoods of occurring. We determine which forecasts we will include in our estimation of the allowance for credit losses and the associated weightings for each of these inputs. At September 30, 2022, December 31, 2022, and September 30, 2023, we used the Base (50th percentile likelihood of occurring)/S1 (stronger near-term growth scenario with 10 percent likelihood of occurring)/S3 (downside scenario with 10 percent likelihood of occurring) scenarios and weighted them 40 percent, 30 percent, and 30 percent, respectively. Management reviews both the scenarios and their respective weightings each quarter in determining the allowance for credit losses. In the second quarter of 2023, we changed how we collect on defaulted loans. Previously, we used a mix of in-house collectors and sales to third parties. We will continue to sell a segment of defaulted loans immediately after charge-off but will no longer sell retained defaulted loans (that have been subject to internal collection attempts for six months) to third parties and instead will continue our collection efforts using in-house collectors and collection agencies. This improved our estimate of recovery rates for the nine months ended September 30, 2023. When we estimate the timing and amount of future recoveries on charged-off loans, we no longer include expectations of future sales on retained defaulted loans. We continue to monitor how we collect on defaulted loans and may modify the approach from time to time based on performance, industry conventions, and/or regulatory feedback. Provisions for credit losses in the nine months ended September 30, 2023 decreased by $6 million compared with the year-ago period. During the nine months ended September 30, 2023, the provision for credit losses was primarily affected by new loan commitments, net of expired commitments, slower prepayment rates, management overlays, and changes in economic outlook, which were offset by $137 million in negative provisions recorded as a result of the $2.10 billion Private Education Loan sales during the first nine months of 2023 and an increase in recovery rates (as a result of the change in our defaulted loan recovery program noted above). In the year-ago period, the provision for credit losses was primarily affected by new loan commitments made during the period, slower than expected prepayment rates, and additional management overlays, which were partially offset by negative provisions recorded related to $3.29 billion in Private Education Loans sold in the first nine months of 2022. As part of concluding on the adequacy of the allowance for credit losses, we review key allowance and loan metrics. The most significant of these metrics considered are the allowance coverage of net charge-offs ratio; the allowance as a percentage of ending total loans and accrued interest to be capitalized and of ending loans in repayment and accrued interest to be capitalized on loans in repayment; and delinquency and forbearance percentages. Loan Modifications to Borrowers Experiencing Financial Difficulty The allowance for credit losses incorporates an estimate of lifetime expected credit losses and is recorded on each asset upon asset origination or acquisition. The starting point for the estimate of the allowance for credit losses is historical information, which includes losses from modifications of receivables whose borrowers are experiencing financial difficulty. We use a discounted cash flow model to determine the allowance for credit losses. An assessment of whether a borrower is experiencing financial difficulty is made on the date of a modification. The effect of most modifications of loans made to borrowers who are experiencing financial difficulty is already included in the allowance for credit losses because of the measurement methodologies used to estimate the allowance. The forecast of expected future cash flows is updated as the loan modifications occur. We adjust the terms of loans for certain borrowers when we believe such changes will help our customers manage their student loan obligations and achieve better student outcomes and increase the collectability of the loans. 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 currently temporarily reduce the contractual interest rate on a loan to 4.0 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. Within the Private Education Loan portfolio, we deem loans greater than 90 days past due as nonperforming. FFELP Loans are at least 97 percent guaranteed as to their principal and accrued interest by the federal government in the event of default and, therefore, we do not deem FFELP Loans as nonperforming from a credit risk perspective at any point in their life cycle prior to claim payment and continue to accrue interest on those loans through the date of claim. For additional information, see Notes to Consolidated Financial Statements, Note 2, “Significant Accounting Policies —Allowance for Credit Losses,” and Note 7, “Allowance for Credit Losses” in our 2022 Form 10-K. Under our current forbearance practices, temporary forbearance of payments is generally granted in one The limitations on granting of forbearances described above apply to hardship forbearances. We offer other administrative forbearances (e.g., death and disability, bankruptcy, military service, disaster forbearance, and in school assistance) that are either required by law (such as by the Servicemembers Civil Relief Act) or are considered separate from our active loss mitigation programs and therefore are not considered to be loan modifications requiring disclosure. In addition, we may offer on a limited basis term extensions or rate reductions or a combination of both to borrowers to reduce consolidation activities. For purposes of this disclosure, we do not consider them modifications of loans to borrowers experiencing financial difficulty and they therefore are not included in the tables below. The following tables show the amortized cost basis at the end of the respective reporting periods of the loans to borrowers experiencing financial difficulty that were modified during the period, disaggregated by class of financing receivable and type of modification. When we approve a Private Education Loan at the beginning of an academic year, we do not always disburse the full amount of the loan at the time of 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). We consider borrowers to be in financial difficulty after they have exited school and have difficulty making their scheduled principal and interest payments. Loan Modifications Made to Borrowers Experiencing Financial Difficulty Three Months Ended September 30, 2023 Interest Rate Reduction Combination - Interest Rate Reduction and Term Extension Loan Type: Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Private Education Loans $ 16,620 0.07 % $ 90,193 0.39 % Total $ 16,620 0.07 % $ 90,193 0.39 % Loan Modifications Made to Borrowers Experiencing Financial Difficulty Three Months Ended September 30, 2022 Interest Rate Reduction Combination - Interest Rate Reduction and Term Extension Loan Type: Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Private Education Loans $ 9,750 0.05 % $ 79,765 0.40 % Total $ 9,750 0.05 % $ 79,765 0.40 % Loan Modifications Made to Borrowers Experiencing Financial Difficulty Nine Months Ended September 30, 2023 Interest Rate Reduction Combination - Interest Rate Reduction and Term Extension Loan Type: Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Private Education Loans $ 39,263 0.17 % $ 254,639 1.10 % Total $ 39,263 0.17 % $ 254,639 1.10 % Loan Modifications Made to Borrowers Experiencing Financial Difficulty Nine Months Ended September 30, 2022 Interest Rate Reduction Combination - Interest Rate Reduction and Term Extension Loan Type: Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Private Education Loans $ 25,065 0.12 % $ 237,588 1.18 % Total $ 25,065 0.12 % $ 237,588 1.18 % The following tables describe the financial effect of the modifications made to loans whose borrowers are experiencing financial difficulty: Three Months Ended September 30, 2023 Interest Rate Reduction Combination - Interest Rate Loan Type Financial Effect Loan Type Financial Effect Private Education Loans Reduced average contractual rate from 13.57% to 4.00% Private Education Loans Added a weighted average 10.22 years to the life of loans Reduced average contractual rate from 13.12% to 4.00% Three Months Ended September 30, 2022 Interest Rate Reduction Combination - Interest Rate Loan Type Financial Effect Loan Type Financial Effect Private Education Loans Reduced average contractual rate from 11.31% to 4.00% Private Education Loans Added a weighted average 10.24 years to the life of loans Reduced average contractual rate from 10.87% to 4.00% Nine Months Ended September 30, 2023 Interest Rate Reduction Combination - Interest Rate Loan Type Financial Effect Loan Type Financial Effect Private Education Loans Reduced average contractual rate from 13.29% to 4.00% Private Education Loans Added a weighted average 10.24 years to the life of loans Reduced average contractual rate from 12.84% to 4.00% Nine Months Ended September 30, 2022 Interest Rate Reduction Combination - Interest Rate Loan Type Financial Effect Loan Type Financial Effect Private Education Loans Reduced average contractual rate from 10.76% to 4.00% Private Education Loans Added a weighted average 10.38 years to the life of loans Reduced average contractual rate from 10.17% to 4.00% Private Education Loans are charged off at the end of the month in which they reach 120 days delinquent or otherwise when the loans are classified as a loss by us or our regulator. Therefore, the amortized cost basis of the loan is reduced by the uncollectible amount and the allowance for credit losses is adjusted by the same amount. See Notes to Consolidated Financial Statements, Note 2, “Significant Accounting Policies — Allowance for Credit Losses — Allowance for Private Education Loan Losses, and — Allowance for FFELP Loan Losses” in our 2022 Form 10-K for a more detailed discussion. For the current period presented, the following table provides loan modifications for which a payment default occurred in the relevant period presented and within 12 months of the loan receiving a loan modification. Additionally, for the current period presented, the table summarizes charge-offs occurring in the relevant period presented and within 12 months of the loan receiving a loan modification. The charge-offs and payment defaults for the year-ago period are presented for loans receiving a loan modification during the reporting period rather than within 12 months of the loan receiving a loan modification, as the effective date of adoption for the Financial Accounting Standards Board’s Accounting Standards Update (“ASU”) No. 2022-02, Troubled Debt Restructurings and Vintage Disclosures, was January 1, 2022. We define payment default as 60 days or more past due for purposes of this disclosure. Three Months Ended Three Months Ended (Dollars in thousands) Modified Loans (1)(2) Payment Default (4) Charge-Offs (5) Modified Loans (1)(2) Payment Default (4) Charge-Offs (5) Loan Type: Private Education Loans $ 14,546 $ 14,129 $ 4,534 $ 9,467 $ 9,289 $ 1,801 Total $ 14,546 $ 14,129 $ 4,534 $ 9,467 $ 9,289 $ 1,801 Nine Months Ended Nine Months Ended (Dollars in thousands) Modified Loans (1)(3) Payment Default (4) Charge-Offs (5) Modified Loans (1)(3) Payment Default (4) Charge-Offs (5) Loan Type: Private Education Loans $ 26,449 $ 27,672 $ 6,428 $ 12,660 $ 12,463 $ 1,861 Total $ 26,449 $ 27,672 $ 6,428 $ 12,660 $ 12,463 $ 1,861 (1) Represents period-end amortized cost basis of loans that have been modified and for which a payment default occurred in the relevant period presented and within 12 months of receiving a modification (or within the reporting period, for the loans shown in in the year-ago period, as the case may be). (2) For the three months ended September 30, 2023, the modified loans include $12.4 million of interest rate reduction and term extension loan modifications and $2.1 million of interest rate reduction only loan modifications. For the three months ended September 30, 2022, the modified loans include $8.5 million of interest rate reduction and term extension loan modifications and $1.0 million of interest rate reduction only loan modifications. (3) For the nine months ended September 30, 2023, the modified loans include $23.0 million of interest rate reduction and term extension loan modifications and $3.4 million of interest rate reduction only loan modifications. For the nine months ended September 30, 2022, the modified loans include $11.4 million of interest rate reduction and term extension loan modifications and $1.2 million of interest rate reduction only loan modifications. (4) Represents the unpaid principal balance at the time of payment default. (5) Represents the unpaid principal balance at the time of charge off. We closely monitor performance of the loans to borrowers experiencing financial difficulty that are modified to understand the effectiveness of the modification efforts. The following tables depict the performance of loans that have been modified during the respective reporting periods (first nine months of 2023 and full year 2022, respectively). Payment Status (Amortized Cost Basis) At September 30, 2023 Deferment (1) Current (2)(3) 30-59 Days Past Due (2)(3) 60-89 Days Past Due (2)(3) 90 Days or Greater Past Due (2)(3) Total Loan Type: Private Education Loans $ 5,140 $ 266,090 $ 10,137 $ 5,565 $ 6,970 $ 293,902 Total $ 5,140 $ 266,090 $ 10,137 $ 5,565 $ 6,970 $ 293,902 Payment Status (Amortized Cost Basis) At December 31, 2022 Deferment (1) Current (2)(3) 30-59 Days Past Due (2)(3) 60-89 Days Past Due (2)(3) 90 Days or Greater Past Due (2)(3) Total Loan Type: Private Education Loans $ 7,698 $ 289,134 $ 13,859 $ 8,809 $ 6,616 $ 326,116 Total $ 7,698 $ 289,134 $ 13,859 $ 8,809 $ 6,616 $ 326,116 (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make full principal and interest payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). Deferment also includes loans that have entered a forbearance after the loan modification was granted. (2) Loans in repayment include loans on which borrowers are making full principal and interest payments after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance). (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. Private Education Loans Held for Investment - Key Credit Quality Indicators FFELP Loans are at least 97 percent 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 tables highlight the gross principal balance of our Private Education Loan portfolio (held for investment), by year of origination approval, stratified by key credit quality indicators. As of September 30, 2023 (dollars in thousands) Private Education Loans Held for Investment - Credit Quality Indicators Year of Origination Approval 2023 (1) 2022 (1) 2021 (1) 2020 (1) 2019 (1) 2018 and Prior (1) Total (1) % of Balance Cosigners: With cosigner $ 3,262,857 $ 4,710,256 $ 2,894,829 $ 1,686,843 $ 1,480,270 $ 4,860,436 $ 18,895,491 87 % Without cosigner 467,628 711,282 468,874 304,590 268,797 564,205 2,785,376 13 Total $ 3,730,485 $ 5,421,538 $ 3,363,703 $ 1,991,433 $ 1,749,067 $ 5,424,641 $ 21,680,867 100 % FICO at Origination Approval (2) : Less than 670 $ 278,407 $ 418,966 $ 236,903 $ 127,660 $ 146,011 $ 481,014 $ 1,688,961 8 % 670-699 530,255 752,093 455,895 278,207 275,056 929,262 3,220,768 15 700-749 1,150,877 1,690,871 1,067,755 645,549 584,322 1,830,206 6,969,580 32 Greater than or equal to 750 1,770,946 2,559,608 1,603,150 940,017 743,678 2,184,159 9,801,558 45 Total $ 3,730,485 $ 5,421,538 $ 3,363,703 $ 1,991,433 $ 1,749,067 $ 5,424,641 $ 21,680,867 100 % FICO Refreshed (2)(3) : Less than 670 $ 353,491 $ 605,817 $ 387,375 $ 218,261 $ 214,908 $ 807,495 $ 2,587,347 12 % 670- |
Unfunded Loan Commitments
Unfunded Loan Commitments | 9 Months Ended |
Sep. 30, 2023 | |
Credit Loss [Abstract] | |
Unfunded Loan Commitments | Unfunded Loan 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). We estimate expected credit losses over the contractual period in which we are exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by us. See Notes to Consolidated Financial Statements, Note 2, “Significant Accounting Policies - Allowance for Credit Losses, — Off-Balance Sheet Exposure for Contractual Loan Commitments” in our 2022 Form 10-K for additional information. At September 30, 2023, we had $2.4 billion of outstanding contractual loan commitments which we expect to fund during the remainder of the 2023/2024 academic year. The tables below summarize the activity in the allowance recorded to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheets, as well as the activity in the unfunded commitments balance. 2023 2022 Three Months Ended September 30, Allowance Unfunded Commitments Allowance Unfunded Commitments Beginning Balance $ 62,600 $ 1,562,856 $ 113,525 $ 1,413,840 Provision/New commitments - net (1) 115,605 3,258,234 192,559 3,148,434 Other provision items 37,329 — (29,913) — Transfer - funded loans (2) (101,687) (2,451,203) (168,377) (2,345,348) Ending Balance $ 113,847 $ 2,369,887 $ 107,794 $ 2,216,926 2023 2022 Nine Months Ended September 30, Allowance Unfunded Commitments Allowance Unfunded Commitments Beginning Balance $ 124,924 $ 1,995,808 $ 72,713 $ 1,776,976 Provision/New commitments - net (1) 220,303 5,912,418 339,705 5,584,129 Other provision items 47,008 — (1,033) — Transfer - funded loans (2) (278,388) (5,538,339) (303,591) (5,144,179) Ending Balance $ 113,847 $ 2,369,887 $ 107,794 $ 2,216,926 (1) Net of expirations of commitments unused. (2) When a loan commitment is funded, its related liability for credit losses (which originally was recorded as a provision for unfunded commitments) is transferred to the allowance for credit losses. The unfunded commitments disclosed above represent the total amount of outstanding unfunded commitments at each period end. However, historically not all of these commitments are funded prior to the expiration of the commitments. We estimate the amount of commitments expected to be funded in calculating the reserve for unfunded commitments. The amount we expect to fund and use in our calculation of the reserve for unfunded commitments will change period to period based upon the loan characteristics of the underlying commitments. |
Goodwill and Acquired Intangibl
Goodwill and Acquired Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Acquired Intangible Assets | Goodwill and Acquired Intangible Assets Goodwill We recorded as goodwill the excess of the purchase price over the estimated fair values of identifiable assets and liabilities acquired as part of the acquisition of the assets primarily used or held for use of Epic Research Education Services, LLC, which does business as Nitro College (“Nitro”), in the first quarter of 2022 and the acquisition of the key assets of Scholly in the third quarter of 2023. Goodwill is not amortized but is tested periodically for impairment. We test goodwill for impairment annually in the fourth quarter of the year, or more frequently if we believe that indicators of impairment exist. At September 30, 2023, we had $56 million in total goodwill. See Notes to Consolidated Financial Statements, Note 2, “Significant Accounting Policies — Business Combination,” for additional details on our acquisition of Scholly and Notes to Consolidated Financial Statements, Note 2, “Significant Accounting Policies — Business Combination” in our 2022 Form 10-K for additional details on our acquisition of Nitro. Acquired Intangible Assets Our intangible assets include acquired tradename and trademarks, customer relationships, developed technology, and partner relationships. We review our long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying amount of such assets may not be recoverable. Acquired intangible assets include the following: September 30, 2023 December 31, 2022 (Dollars in thousands) Weighted Average Useful Life (in years) (1) Cost Basis Accumulated Amortization Net Cost Basis Accumulated Amortization Net Tradename and trademarks (2) 9.5 $ 74,510 $ (11,093) $ 63,417 $ 68,470 $ (5,706) $ 62,764 Customer relationships (2) 4.6 8,920 (3,268) 5,652 5,670 (1,723) 3,947 Developed technology (2) 3.5 2,590 (720) 1,870 1,260 (350) 910 Partner relationships 2.5 730 (49) 681 — — — Total acquired intangible assets $ 86,750 $ (15,130) $ 71,620 $ 75,400 $ (7,779) $ 67,621 (1) The weighted average useful life of acquired intangible assets is at acquisition; 9.5 years is the weighted average useful life of the acquired intangible assets related to the Nitro acquisition and 3.9 years is related to the Scholly acquisition. (2) Tradename and trademarks, customer relationships, and developed technology at September 30, 2023 include $6 million, $3 million, and $1 million, respectively related to the Scholly acquisition. |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2023 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Deposits | Deposits The following table summarizes total deposits at September 30, 2023 and December 31, 2022. September 30, December 31, (Dollars in thousands) 2023 2022 Deposits - interest-bearing $ 21,550,108 $ 21,446,647 Deposits - non-interest-bearing 637 1,424 Total deposits $ 21,550,745 $ 21,448,071 Our total deposits of $21.6 billion were comprised of $10.4 billion in brokered deposits and $11.2 billion in retail and other deposits at September 30, 2023, compared to total deposits of $21.4 billion, which were comprised of $9.9 billion in brokered deposits and $11.5 billion in retail and other deposits, at December 31, 2022. Interest-bearing deposits as of September 30, 2023 and December 31, 2022 consisted of retail and brokered non-maturity savings deposits, retail and brokered non-maturity money market deposits (“MMDAs”), and retail and brokered certificates of deposit (“CDs”). Interest-bearing deposits also include deposits from Educational 529 and Health Savings plans that diversify our funding sources and that we consider to be core. These and other large omnibus accounts, aggregating the deposits of many individual depositors, represented $7.5 billion and $8.0 billion of our deposit total as of September 30, 2023 and December 31, 2022, respectively. Some of our deposit products are serviced by third-party providers. Placement fees associated with the brokered CDs are amortized into interest expense using the effective interest rate method. We recognized placement fee expense of $3 million and $3 million in the three months ended September 30, 2023 and 2022, respectively, and placement fee expense of $9 million and $10 million in the nine months ended September 30, 2023 and 2022, respectively. Fees paid to third-party brokers related to brokered CDs were $4 million and $4 million for the three months ended September 30, 2023 and 2022, respectively, and fees paid to third-party brokers related to brokered CDs were $7 million and $8 million for the nine months ended September 30, 2023 and 2022, respectively. Interest bearing deposits at September 30, 2023 and December 31, 2022 are summarized as follows: September 30, 2023 December 31, 2022 (Dollars in thousands) Amount Qtr.-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 10,241,232 4.75 % $ 10,977,242 3.75 % Savings 930,590 4.35 982,586 3.15 Certificates of deposit 10,378,286 3.58 9,486,819 2.57 Deposits - interest bearing $ 21,550,108 $ 21,446,647 (1) Includes the effect of interest rate swaps in effective hedge relationships. Certificates of deposit remaining maturities are summarized as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 One year or less $ 3,436,186 $ 3,224,573 After one year to two years 4,079,381 2,954,257 After two years to three years 2,359,064 1,904,919 After three years to four years 248,301 1,031,881 After four years to five years 255,354 324,375 After five years — 46,814 Total $ 10,378,286 $ 9,486,819 As of September 30, 2023 and December 31, 2022, there were $494 million and $615 million, respectively, of deposits exceeding Federal Deposit Insurance Corporation (“FDIC”) insurance limits. Accrued interest on deposits was $73 million and $59 million at September 30, 2023 and December 31, 2022, respectively. The omnibus accounts are structured in such a way that entitles the individual depositor pass-through deposit insurance (subject to FDIC rules and limitations), and the majority of these deposits have contractual minimum balances and maturity terms. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Outstanding borrowings consist of unsecured debt and secured borrowings issued through our term asset-backed securitization (“ABS”) program and our Private Education Loan multi-lender secured borrowing facility (the “Secured Borrowing Facility”). For additional information regarding our borrowings, see Notes to Consolidated Financial Statements, Note 12, “Borrowings” in our 2022 Form 10-K. The following table summarizes our borrowings at September 30, 2023 and December 31, 2022. September 30, 2023 December 31, 2022 (Dollars in thousands) Short-Term Long-Term Total Short-Term Long-Term Total Unsecured borrowings: Unsecured debt (fixed-rate) $ — $ 991,396 $ 991,396 $ — $ 988,986 $ 988,986 Total unsecured borrowings — 991,396 991,396 — 988,986 988,986 Secured borrowings: Private Education Loan term securitizations: Fixed-rate — 3,807,493 3,807,493 — 3,462,363 3,462,363 Variable-rate — 716,643 716,643 — 783,765 783,765 Total Private Education Loan term securitizations — 4,524,136 4,524,136 — 4,246,128 4,246,128 Secured Borrowing Facility — — — — — — Total secured borrowings — 4,524,136 4,524,136 — 4,246,128 4,246,128 Total $ — $ 5,515,532 $ 5,515,532 $ — $ 5,235,114 $ 5,235,114 Short-term Borrowings On May 16, 2023, we amended our Secured Borrowing Facility to extend the maturity of the facility. The amount that can be borrowed under the facility is $2 billion. We hold 100 percent of the residual interest in the Secured Borrowing Facility trust. Under the Secured Borrowing Facility, we incur financing costs on unused borrowing capacity and on outstanding advances. The amended Secured Borrowing Facility extended the revolving period, during which we may borrow, repay, and reborrow funds, until May 15, 2024. The scheduled amortization period, during which amounts outstanding under the Secured Borrowing Facility must be repaid, ends on May 15, 2025 (or earlier, if certain material adverse events occur). At both September 30, 2023, and December 31, 2022, there were no secured borrowings outstanding under the Secured Borrowing Facility. Long-term Borrowings Secured Financings 2023 Transactions On March 15, 2023, we executed our $579 million SMB Private Education Loan Trust 2023-A term ABS transaction, which was accounted for as a secured financing. We sold $579 million of notes to third parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $572 million of gross proceeds. The Class A and Class B notes had a weighted average life of 5.06 years and priced at a weighted average SOFR equivalent cost of SOFR plus 1.53 percent. On September 30, 2023, $609 million of our Private Education Loans, including $563 million of principal and $46 million in capitalized interest, were encumbered because of this transaction. On August 16, 2023, we executed our $568 million SMB Private Education Loan Trust 2023-C term ABS transaction, which was accounted for as a secured financing. We sold $568 million of notes to third parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $568 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.93 years and priced at a weighted average SOFR equivalent cost of SOFR plus 1.69 percent. On September 30, 2023, $637 million of our Private Education Loans, including $590 million of principal and $47 million in capitalized interest, were encumbered because of this transaction. Secured Financings at Issuance The following table summarizes our secured financings issued in the year ended December 31, 2022 and in the nine months ended September 30, 2023. Issue Date Issued Total Issued Weighted Average Cost of Funds (1) Weighted Average Life (Dollars in thousands) Private Education Loans: 2022-C August 2022 $ 575,000 SOFR plus 1.76% 4.69 Total notes issued in 2022 $ 575,000 Total loan and accrued interest amount securitized at inception in 2022 (2) $ 674,387 2023-A March 2023 $ 579,000 SOFR plus 1.53% 5.06 2023-C August 2023 568,000 SOFR plus 1.69% 4.93 Total notes issued in 2023 $ 1,147,000 Total loan and accrued interest amount securitized at inception in 2023 (3) $ 1,292,507 (1) Represents SOFR equivalent cost of funds for floating and fixed-rate bonds, excluding issuance costs. (2) At September 30, 2023, $565 million of our Private Education Loans, including $527 million of principal and $38 million in capitalized interest, were encumbered related to these transactions. (3) At September 30, 2023, $1.24 billion of our Private Education Loans, including $1.15 billion of principal and $94 million in capitalized interest, were encumbered related to these transactions. 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. As of September 30, 2023 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 $ — $ 4,524,136 $ 4,524,136 $ 5,776,779 $ 174,757 $ 358,220 $ 6,309,756 Secured Borrowing Facility — — — — — 1,767 1,767 Total $ — $ 4,524,136 $ 4,524,136 $ 5,776,779 $ 174,757 $ 359,987 $ 6,311,523 As of December 31, 2022 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 $ — $ 4,246,128 $ 4,246,128 $ 5,433,602 $ 156,719 $ 286,093 $ 5,876,414 Secured Borrowing Facility — — — — — 1,066 1,066 Total $ — $ 4,246,128 $ 4,246,128 $ 5,433,602 $ 156,719 $ 287,159 $ 5,877,480 (1) Other assets primarily represent accrued interest receivable. Unconsolidated VIEs Private Education Loan Securitizations Unconsolidated VIEs include variable interests that we hold in certain securitization trusts created by the sale of our Private Education Loans to unaffiliated third parties. We remained the servicer of these loans pursuant to applicable servicing agreements executed in connection with the sales, and we are also the administrator of these trusts. Additionally, we own five percent of the securities issued by the trusts to meet risk retention requirements. We were not required to consolidate these entities because the fees we receive as the servicer/administrator are commensurate with our responsibility, so the fees are not considered a variable interest. Additionally, the five percent vertical interest we maintain does not absorb more than an insignificant amount of the VIE’s expected losses, nor do we receive more than an insignificant amount of the VIE’s expected residual returns. 2023-B Transaction On May 24, 2023, we closed an SMB Private Education Loan Trust 2023-B term ABS transaction (the “2023-B Transaction”), in which an unaffiliated third party sold to the trust approximately $2 billion of Private Education Loans that the third-party seller previously purchased from us on May 3, 2023. Sallie Mae Bank sponsored the 2023-B Transaction, is the servicer and administrator, and was the seller of an additional $105 million of Private Education Loans into the trust. The sale of such additional loans qualified for sale treatment and removed these loans from our balance sheet on the settlement date of the 2023-B Transaction and we recorded a $5 million gain on sale associated with this transaction. In connection with the 2023-B Transaction settlement, we retained a five percent vertical risk retention interest (i.e., five percent of each class issued in the securitization). We classified those vertical risk retention interests related to the 2023-B Transaction as available-for-sale investments, except for the interest in the residual class, which we classified as a trading investment recorded at fair value with changes recorded through earnings. The table below provides a summary of our exposure related to our unconsolidated VIEs. September 30, 2023 December 31, 2022 (Dollars in thousands) Debt Interests (1) Equity Interests (2) Total Exposure Debt Interests (1) Equity Interests (2) Total Exposure Private Education Loan term securitizations $ 389,006 $ 52,561 $ 441,567 $ 329,188 $ 50,786 $ 379,974 (1) Vertical risk retention interest classified as available-for-sale investment. (2) Vertical risk retention interest classified as trading investment. Other Borrowing Sources We maintain discretionary uncommitted Federal Funds lines of credit with various correspondent banks, which totaled $125 million at September 30, 2023. 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 nine months ended September 30, 2023 or in the year ended December 31, 2022. 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 September 30, 2023 and December 31, 2022, the value of our pledged collateral at the FRB totaled $1.6 billion and $2.2 billion, respectively. The interest rate charged to us is the discount rate set by the FRB. We did not utilize this facility in the nine months ended September 30, 2023 or in the year ended December 31, 2022. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2023 | |
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. Please refer to Notes to Consolidated Financial Statements, Note 13, “Derivative Financial Instruments” in our 2022 Form 10-K for a full discussion of our risk management strategy. Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) requires all standardized derivatives, including most interest rate swaps, to be submitted for clearing to central counterparties to reduce counterparty risk. Two of the central counterparties we use are the Chicago Mercantile Exchange (“CME”) and the London Clearing House (“LCH”). All variation margin payments on derivatives cleared through the CME and LCH are accounted for as legal settlement. As of September 30, 2023, $1.8 billion notional of our derivative contracts were cleared on the CME and $0.1 billion were cleared on the LCH. The derivative contracts cleared through the CME and LCH represent 91.7 percent and 8.3 percent, respectively, of our total notional derivative contracts of $1.9 billion at September 30, 2023. 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 September 30, 2023 was $(50) million and $(6) million for the CME and LCH, respectively. Changes in fair value for derivatives not designated as hedging instruments are 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 September 30, 2023 and December 31, 2022, we had a net positive exposure (derivative gain/loss positions to us, less collateral held by us and plus collateral posted with counterparties) related to derivatives of $11 million and $12 million, respectively. Summary of Derivative Financial Statement Impact The following tables summarize the fair values and notional amounts of all derivative instruments at September 30, 2023 and December 31, 2022, and their impact on earnings and other comprehensive income for the nine months ended September 30, 2023 and September 30, 2022. Please refer to Notes to Consolidated Financial Statements, Note 13, “Derivative Financial Instruments” in our 2022 Form 10-K for a full discussion of cash flow hedges, fair value hedges, and trading activities. Impact of Derivatives on the Consolidated Balance Sheets Cash Flow Hedges Fair Value Hedges Trading Total September 30, December 31, September 30, December 31, September 30, December 31, September 30, December 31, (Dollars in thousands) 2023 2022 2023 2022 2023 2022 2023 2022 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ — $ 972 $ 17 $ — $ — $ — $ 17 $ 972 Derivative Liabilities: (2) Interest rate swaps Interest rate (268) — — (567) — — (268) (567) Total net derivatives $ (268) $ 972 $ 17 $ (567) $ — $ — $ (251) $ 405 (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 September 30, December 31, September 30, December 31, (Dollars in thousands) 2023 2022 2023 2022 Gross position (1) $ 17 $ 972 $ (268) $ (567) Impact of master netting agreement (17) (567) 17 567 Derivative values with impact of master netting agreements (as carried on balance sheet) — 405 (251) — Cash collateral pledged (2) 11,087 11,162 — — Net position $ 11,087 $ 11,567 $ (251) $ — (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. Notional Values Cash Flow Fair Value Trading Total (Dollars in thousands) September 30, December 31, September 30, December 31, September 30, December 31, September 30, December 31, 2023 2022 2023 2022 2023 2022 2023 2022 Interest rate swaps $ 1,229,011 $ 1,314,660 $ 702,309 $ 1,528,186 $ — $ — $ 1,931,320 $ 2,842,846 Net total notional $ 1,229,011 $ 1,314,660 $ 702,309 $ 1,528,186 $ — $ — $ 1,931,320 $ 2,842,846 As of September 30, 2023 and December 31, 2022, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges: (Dollars in thousands) Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) Line Item in the Balance Sheet in Which the Hedged Item is Included: September 30, December 31, September 30, December 31, 2023 2022 2023 2022 Deposits $ (681,292) $ (1,494,087) $ 20,755 $ 31,259 Impact of Derivatives on the Consolidated Statements of Income Three Months Ended Nine Months Ended (Dollars in thousands) 2023 2022 2023 2022 Fair Value Hedges Interest rate swaps: Interest recognized on derivatives $ (6,701) $ (1,783) $ (19,086) $ 24,418 Hedged items recorded in interest expense (4,346) 14,143 (10,504) 86,899 Derivatives recorded in interest expense 4,265 (14,425) 10,596 (86,896) Total $ (6,782) $ (2,065) $ (18,994) $ 24,421 Cash Flow Hedges Interest rate swaps: Amount of gain (loss) reclassified from accumulated other comprehensive income into interest expense $ 12,813 $ 2,771 $ 34,917 $ (4,033) Total $ 12,813 $ 2,771 $ 34,917 $ (4,033) Trading Interest rate swaps: Change in fair value of future interest payments recorded in earnings $ — $ — $ — $ (248) Total — — — (248) Total $ 6,031 $ 706 $ 15,923 $ 20,140 Impact of Derivatives on the Statements of Changes in Stockholders’ Equity Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2023 2022 2023 2022 Amount of gain (loss) recognized in other comprehensive income (loss) $ 7,046 $ 32,594 $ 21,726 $ 94,215 Less: amount of gain (loss) reclassified in interest expense 12,813 2,771 34,917 (4,033) Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit $ (5,767) $ 29,823 $ (13,191) $ 98,248 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 12 months, we estimate that $46 million will be reclassified as a decrease to interest expense. Cash Collateral As of September 30, 2023, 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 by us related to derivative exposure between us and our derivatives counterparties at September 30, 2023 and December 31, 2022, respectively. Collateral held is recorded in “Other Liabilities” on the consolidated balance sheets. Cash collateral pledged by us related to derivative exposure between us and our derivatives counterparties was $11 million and $11 million at September 30, 2023 and December 31, 2022, respectively. Collateral pledged is recorded in “Other interest-earning assets” on the consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The following table summarizes our common share repurchases and issuances. Three Months Ended Nine Months Ended (Shares and per share amounts in actuals) 2023 2022 2023 2022 Common stock repurchased under repurchase programs (1) — 1,191,544 16,389,696 30,721,944 Average purchase price per share (2) $ — $ 14.14 $ 15.71 $ 18.00 Shares repurchased related to employee stock-based compensation plans (3) 10,687 448 1,088,330 1,131,351 Average purchase price per share $ 16.14 $ 13.99 $ 15.45 $ 18.36 Common shares issued (4) 200,886 4,682 3,073,639 3,093,392 (1) Common shares purchased under our share repurchase programs. We have utilized all capacity under our 2021 Share Repurchase Program. There was $326 million of capacity remaining under the 2022 Share Repurchase Program at September 30, 2023. (2) Average purchase price per share includes purchase commission costs and excise taxes. (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 the NASDAQ Global Select Market on September 29, 2023 was $13.62. Common Stock Dividends In both September 2023 and September 2022, we paid a common stock dividend of $0.11 per common share. Share Repurchases On January 27, 2021, we announced a share repurchase program (the “2021 Share Repurchase Program”), which was effective upon announcement and expired on January 26, 2023, and originally permitted us to repurchase shares of our common stock from time to time up to an aggregate repurchase price not to exceed $1.25 billion. In October 2021, our Board of Directors approved a $250 million increase in the amount of common stock that may be repurchased under our 2021 Share Repurchase Program. This was in addition to the original $1.25 billion of authorization announced on January 27, 2021, for a total 2021 Share Repurchase Program authorization of $1.5 billion. Under the 2021 Share Repurchase Program, we repurchased 2.0 million shares of common stock for $38 million in the nine months ended September 30, 2022. We have utilized all capacity under the 2021 Share Repurchase Program. On January 26, 2022, we announced a new share repurchase program (the “2022 Share Repurchase Program”), which was effective upon announcement and expires on January 25, 2024, and permits us to repurchase shares of our common stock from time to time up to an aggregate repurchase price not to exceed $1.25 billion. Under the 2022 Share Repurchase Program, we did not repurchase shares of common stock in the three months ended September 30, 2023, and we repurchased 16.4 million shares of common stock for $257 million in the nine months ended September 30, 2023. Under the 2022 Share Repurchase Program, we also repurchased 1.2 million shares of common stock for $17 million in the three months ended September 30, 2022, and 28.7 million shares of common stock for $515 million in the nine months ended September 30, 2022. We had $326 million of capacity remaining under the 2022 Share Repurchase Program at September 30, 2023. So long as there is unexpired capacity under a given repurchase program, repurchases under the programs may occur from time to time and through a variety of methods, including tender offers, open market repurchases, repurchases effected through Rule 10b5-1 trading plans, negotiated block purchases, accelerated share repurchase programs, or other similar transactions. The timing and volume of any repurchases under the 2022 Share Repurchase Program will be subject to market conditions, and there can be no guarantee that the Company will repurchase up to the limit of the program or at all. |
Earnings per Common Share
Earnings per Common Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share (“EPS”) are calculated using the weighted average number of shares of common stock outstanding during each period. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows. Three Months Ended Nine Months Ended (Dollars in thousands, except per share data) 2023 2022 2023 2022 Numerator: Net income $ 29,365 $ 75,172 $ 412,948 $ 546,057 Preferred stock dividends 4,642 2,531 12,979 5,563 Net income attributable to SLM Corporation common stock $ 24,723 $ 72,641 $ 399,969 $ 540,494 Denominator: Weighted average shares used to compute basic EPS 226,120 251,266 234,170 263,098 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) 2,680 2,450 2,423 2,967 Weighted average shares used to compute diluted EPS 228,800 253,716 236,593 266,065 Basic earnings per common share $ 0.11 $ 0.29 $ 1.71 $ 2.05 Diluted earnings per common share $ 0.11 $ 0.29 $ 1.69 $ 2.03 (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. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We use estimates of fair value in applying various accounting standards for our consolidated financial statements. We categorize our fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. For additional information regarding our policies for determining fair value and the hierarchical framework, see Notes to Consolidated Financial Statements, Note 2, “Significant Accounting Policies - Fair Value Measurement” in our 2022 Form 10-K. During the nine months ended September 30, 2023, there were no significant transfers of financial instruments between levels or changes in our methodology or assumptions used to value our financial instruments. The following table summarizes the valuation of our financial instruments that are marked-to-fair value on a recurring basis. Fair Value Measurements on a Recurring Basis September 30, 2023 December 31, 2022 (Dollars in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Trading investments $ — $ — $ 52,561 $ 52,561 $ — $ — $ 55,903 $ 55,903 Available-for-sale investments — 2,315,978 — 2,315,978 — 2,342,089 — 2,342,089 Derivative instruments — 17 — 17 — 972 — 972 Total $ — $ 2,315,995 $ 52,561 $ 2,368,556 $ — $ 2,343,061 $ 55,903 $ 2,398,964 Liabilities: Derivative instruments $ — $ (268) $ — $ (268) $ — $ (567) $ — $ (567) Total $ — $ (268) $ — $ (268) $ — $ (567) $ — $ (567) The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. September 30, 2023 December 31, 2022 (Dollars in thousands) Fair Carrying Difference Fair Carrying Difference Earning assets: Loans held for investment, net: Private Education Loans $ 22,370,679 $ 20,348,308 $ 2,022,371 $ 21,062,548 $ 19,019,713 $ 2,042,835 FFELP Loans 559,852 550,873 8,979 618,186 607,155 11,031 Loans held for sale — — — 29,448 29,448 — Cash and cash equivalents 3,548,225 3,548,225 — 4,616,117 4,616,117 — Trading investments 52,561 52,561 — 55,903 55,903 — Available-for-sale investments 2,315,978 2,315,978 — 2,342,089 2,342,089 — Accrued interest receivable 1,498,156 1,457,323 40,833 1,237,074 1,202,059 35,015 Tax indemnification receivable 2,945 2,945 — 2,816 2,816 — Derivative instruments 17 17 — 972 972 — Total earning assets $ 30,348,413 $ 28,276,230 $ 2,072,183 $ 29,965,153 $ 27,876,272 $ 2,088,881 Interest-bearing liabilities: Money-market and savings accounts $ 11,060,884 $ 11,171,822 $ 110,938 $ 11,854,849 $ 11,959,828 $ 104,979 Certificates of deposit 10,201,927 10,378,286 176,359 9,175,339 9,486,819 311,480 Long-term borrowings 5,133,657 5,515,532 381,875 4,813,233 5,235,114 421,881 Accrued interest payable 99,415 99,415 — 71,586 71,586 — Derivative instruments 268 268 — 567 567 — Total interest-bearing liabilities $ 26,496,151 $ 27,165,323 $ 669,172 $ 25,915,574 $ 26,753,914 $ 838,340 Excess of net asset fair value over carrying value $ 2,741,355 $ 2,927,221 Please refer to Notes to Consolidated Financial Statements, Note 17, “Fair Value Measurements” in our 2022 Form 10-K for a full discussion of the methods and assumptions used to estimate the fair value of each class of financial instruments. |
Regulatory Capital
Regulatory Capital | 9 Months Ended |
Sep. 30, 2023 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Regulatory Capital | Regulatory Capital Sallie Mae Bank (the “Bank”) is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material adverse effect on our business, results of operations, and financial position. Under the FDIC’s regulations implementing the Basel III capital framework (“U.S. Basel III”) and the regulatory framework for prompt corrective action, the Bank must meet specific capital standards that involve quantitative measures of its assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and its classification under the prompt corrective action framework are also subject to qualitative judgments by the regulators about components of capital, risk weightings, and other factors. The Bank is 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, the Bank is subject to a Common Equity Tier 1 capital conservation buffer of greater than 2.5 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, 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. Under regulations issued by the FDIC and other federal banking agencies, banking organizations that adopted CECL during the 2020 calendar year, including the Bank, could elect to delay for two years, and then phase in over the following three years, the effects on regulatory capital of CECL relative to the incurred loss methodology. The Bank elected to use this option. Therefore, the regulatory capital impact of the Bank’s transition adjustments recorded on January 1, 2020 from the adoption of CECL, and 25 percent of the ongoing impact of CECL on the Bank’s allowance for credit losses, retained earnings, and average total consolidated assets, each as reported for regulatory capital purposes (collectively, the “adjusted transition amounts”), were deferred for the two-year period ending January 1, 2022. On January 1, 2022, 25 percent of the adjusted transition amounts was phased in for regulatory capital purposes. On January 1, 2023, an additional 25 percent of the adjusted transition amounts was phased in for regulatory capital purposes. On January 1 of 2024 and 2025, the adjusted transition amounts will continue to be phased in for regulatory capital purposes at a rate of 25 percent per year, with the phased-in amounts included in regulatory capital at the beginning of each year. The Bank’s January 1, 2020 CECL transition amounts increased our allowance for credit losses by $1.1 billion, increased the liability representing our off-balance sheet exposure for unfunded commitments by $116 million, and increased our deferred tax asset by $306 million, resulting in a cumulative effect adjustment that reduced retained earnings by $953 million. This transition adjustment was inclusive of qualitative adjustments incorporated into our CECL allowance as necessary, to address any limitations in the models used. At September 30, 2023, the adjusted transition amounts that were deferred and are being phased in for regulatory capital purposes are as follows: Adjusted Transition Amounts Phase-In Amounts for the Year Ended Phase-In Amounts for the Nine Months Ended Remaining Adjusted Transition Amounts to be Phased-In (Dollars in thousands) December 31, 2021 December 31, 2022 September 30, 2023 September 30, 2023 Retained earnings $ 836,351 $ (209,088) $ (209,088) $ 418,175 Allowance for credit losses 1,038,145 (259,536) (259,536) 519,073 Liability for unfunded commitments 104,377 (26,094) (26,094) 52,189 Deferred tax asset 306,171 (76,542) (76,542) 153,087 The Bank’s required and actual regulatory capital amounts and ratios under U.S. Basel III are shown in the following table. The following capital amounts and ratios are based upon the Bank’s average assets and risk-weighted assets, as indicated. The Bank has elected to exclude accumulated other comprehensive income related to both available-for-sale investments and swap valuations from Common Equity Tier 1 Capital. At September 30, 2023 and December 31, 2022, the unrealized loss on available-for-sale investments included in other comprehensive income totaled $158 million and $160 million, net of tax of $51 million and $52 million, respectively. The capital ratios would remain above the well capitalized thresholds if the unrealized loss became fully recognized into capital. (Dollars in thousands) Actual U.S. Basel III Minimum Requirements Plus Buffer (1)(2) Amount Ratio Amount Ratio As of September 30, 2023 (3) : Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 2,935,903 11.7 % $ 1,763,562 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 2,935,903 11.7 % $ 2,141,468 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,258,771 12.9 % $ 2,645,343 > 10.5 % Tier 1 Capital (to Average Assets) $ 2,935,903 10.1 % $ 1,166,116 > 4.0 % As of December 31, 2022 (3) : Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 3,040,662 12.9 % $ 1,645,807 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 3,040,662 12.9 % $ 1,998,480 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,338,645 14.2 % $ 2,468,711 > 10.5 % Tier 1 Capital (to Average Assets) $ 3,040,662 10.3 % $ 1,185,280 > 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. (3) For both September 30, 2023 and December 31, 2022, the actual amounts and the actual ratios include the adjusted transition amounts discussed above that were phased in at the beginning of 2022 and 2023. Bank Dividends |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 9 Months Ended |
Sep. 30, 2023 | |
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). We estimate expected credit losses over the contractual period that we are exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by us. At September 30, 2023, we had $2.4 billion of outstanding contractual loan commitments which we expect to fund during the remainder of the 2023/2024 academic year. At September 30, 2023, we had a $114 million reserve recorded in “Other Liabilities” to cover expected losses that may occur during the one-year loss emergence period on these unfunded commitments. See Notes to Consolidated Financial Statements, Note 2, “Significant Accounting Policies - Allowance for Credit Losses — Off-Balance Sheet Exposure for Contractual Loan Commitments” in our 2022 Form 10-K and Note 6, “Unfunded Loan Commitments” in this Form 10-Q for additional information. Regulatory Matters For additional information regarding our regulatory matters, see Notes to Consolidated Financial Statements, Note 21, “Commitments, Contingencies and Guarantees” in our 2022 Form 10-K. 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. |
Subsequent Event
Subsequent Event | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event Fourth-Quarter 2023 Loan Sales On October 13, 2023, we sold approximately $1 billion of our Private Education Loans, including approximately $921 million in principal and approximately $78 million in capitalized interest to an unaffiliated third party. The gain on sale of loans sold expressed as a percentage was in the low to mid single-digits and will be recognized in the fourth-quarter 2023 consolidated statements of income. The transaction qualified for sale treatment and removed the balance of the loans from our balance sheet on the settlement date. We will continue to service these loans pursuant to the terms of the applicable transaction documents. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 29,365 | $ 75,172 | $ 412,948 | $ 546,057 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited, consolidated financial statements of SLM Corporation (“Sallie Mae,” “SLM,” the “Company,” “we,” or “us”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all the information and footnotes required by GAAP for complete consolidated financial statements. The consolidated financial statements include the accounts of SLM Corporation and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and nine months ended September 30, 2023 are not necessarily indicative of the results for the year ending December 31, 2023 or for any other period. These unaudited financial statements should be read in conjunction with the audited financial statements and related notes included in our Annual Report on Form 10-K for the year ended December 31, 2022 (the “2022 Form 10-K”). |
Consolidation | Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. We consolidate any variable interest entity (“VIE”) where we have determined we are the primary beneficiary. The primary beneficiary is the entity which has both: (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and (ii) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. |
Business Combination | The acquisition was accounted for as a business combination using the acquisition method of accounting in accordance with the Financial Accounting Standards Board’s (“FASB’s”) Accounting Standard Codification 805, “Business Combinations,” whereby as of the acquisition date, the acquired tangible assets and liabilities were recorded at their estimated fair values. The identifiable intangible assets were recorded at fair values as determined by an independent appraiser. |
Investments (Tables)
Investments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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: As of September 30, 2023 Amortized Cost Allowance for credit losses (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale: Mortgage-backed securities $ 438,527 $ — $ — $ (87,399) $ 351,128 Utah Housing Corporation bonds 3,408 — — (555) 2,853 U.S. government-sponsored enterprises and Treasuries 1,669,748 — — (96,757) 1,572,991 Other securities 412,951 — 595 (24,540) 389,006 Total $ 2,524,634 $ — $ 595 $ (209,251) $ 2,315,978 As of December 31, 2022 Amortized Cost Allowance for credit losses (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale: Mortgage-backed securities $ 389,067 $ — $ 2 $ (68,705) $ 320,364 Utah Housing Corporation bonds 3,584 — — (357) 3,227 U.S. government-sponsored enterprises and Treasuries 1,804,726 — — (115,416) 1,689,310 Other securities 356,955 — 33 (27,800) 329,188 Total $ 2,554,332 $ — $ 35 $ (212,278) $ 2,342,089 |
Schedule of 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: (Dollars in thousands) Less than 12 months 12 months or more Total Gross Estimated Gross Estimated Gross Estimated As of September 30, 2023: Mortgage-backed securities $ (3,342) $ 67,737 $ (84,057) $ 283,391 $ (87,399) $ 351,128 Utah Housing Corporation bonds — — (555) 2,853 (555) 2,853 U.S. government-sponsored enterprises and Treasuries — — (96,757) 1,572,991 (96,757) 1,572,991 Other securities (2,051) 81,109 (22,489) 236,226 (24,540) 317,335 Total $ (5,393) $ 148,846 $ (203,858) $ 2,095,461 $ (209,251) $ 2,244,307 As of December 31, 2022: Mortgage-backed securities $ (13,956) $ 99,598 $ (54,749) $ 220,576 $ (68,705) $ 320,174 Utah Housing Corporation bonds (357) 3,227 — — (357) 3,227 U.S. government-sponsored enterprises and Treasuries (28,128) 689,300 (87,288) 1,000,010 (115,416) 1,689,310 Other securities (15,852) 232,546 (11,948) 92,883 (27,800) 325,429 Total $ (58,293) $ 1,024,671 $ (153,985) $ 1,313,469 $ (212,278) $ 2,338,140 |
Schedule of Amortized Cost and Fair Value of Securities by Contractual Maturities | As of September 30, 2023, 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. As of September 30, 2023 Year of Maturity (dollars in thousands) Amortized Cost Estimated Fair Value 2023 $ 25,000 $ 24,767 2024 699,111 677,812 2025 298,564 285,252 2026 548,563 492,182 2027 98,511 92,979 2038 69 68 2039 663 622 2042 2,439 2,008 2043 4,209 3,573 2044 4,945 4,302 2045 5,163 4,337 2046 7,841 6,540 2047 7,917 6,658 2048 2,032 1,790 2049 15,899 13,366 2050 109,845 82,601 2051 156,133 116,543 2052 54,219 44,328 2053 163,617 150,202 2054 75,509 67,142 2055 90,148 86,125 2056 105,584 104,292 2058 48,653 48,489 Total $ 2,524,634 $ 2,315,978 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Loans Held for Investment | Loans held for investment are summarized as follows: September 30, December 31, (Dollars in thousands) 2023 2022 Private Education Loans: Fixed-rate $ 14,000,110 $ 11,108,079 Variable-rate 7,680,757 9,195,609 Total Private Education Loans, gross 21,680,867 20,303,688 Deferred origination costs and unamortized premium/(discount) 78,673 69,656 Allowance for credit losses (1,411,232) (1,353,631) Total Private Education Loans, net 20,348,308 19,019,713 FFELP Loans 554,309 609,050 Deferred origination costs and unamortized premium/(discount) 1,380 1,549 Allowance for credit losses (4,816) (3,444) Total FFELP Loans, net 550,873 607,155 Loans held for investment, net $ 20,899,181 $ 19,626,868 The average balance (net of unamortized premium/(discount)) and the respective weighted average interest rates of loans held for investment in our portfolio are summarized as follows: 2023 2022 Three Months Ended September 30, Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 20,649,663 10.96 % $ 19,958,763 9.43 % FFELP Loans 563,502 7.35 655,724 5.03 Total portfolio $ 21,213,165 $ 20,614,487 2023 2022 Nine Months Ended September 30, Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 21,032,541 10.80 % $ 20,685,372 8.82 % FFELP Loans 583,427 7.10 673,654 4.18 Total portfolio $ 21,615,968 $ 21,359,026 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of Allowance for Credit Losses and Recorded Investments in Loans | Allowance for Credit Losses Metrics Three Months Ended September 30, 2023 FFELP Private Education Total Allowance for Credit Losses Beginning balance $ 4,422 $ 1,360,294 $ 1,364,716 Transfer from unfunded commitment liability (1) — 101,687 101,687 Provisions: Provision for current period 666 44,423 45,089 Total provisions (2) 666 44,423 45,089 Net charge-offs: Charge-offs (272) (104,865) (105,137) Recoveries — 9,693 9,693 Net charge-offs (272) (95,172) (95,444) Ending Balance $ 4,816 $ 1,411,232 $ 1,416,048 Allowance (3) : Ending balance: collectively evaluated for impairment $ 4,816 $ 1,411,232 $ 1,416,048 Loans (3) : Ending balance: collectively evaluated for impairment $ 554,309 $ 21,680,867 $ 22,235,176 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,283,388 $ 1,283,388 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.25 % 2.53 % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.87 % 6.15 % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 1.15 % 8.84 % Allowance coverage of net charge-offs (annualized) 4.43 3.71 Ending total loans, gross $ 554,309 $ 21,680,867 Average loans in repayment (4) $ 428,028 $ 15,023,993 Ending loans in repayment (4) $ 418,022 $ 15,505,145 Accrued interest to be capitalized on loans in repayment (6) $ — $ 464,807 (1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Three Months Ended September 30, 2023 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ 44,423 Provisions for unfunded loan commitments 152,934 Total Private Education Loan provisions for credit losses 197,357 Other impacts to the provisions for credit losses: FFELP Loans 666 Total 666 Provisions for credit losses reported in consolidated statements of income $ 198,023 (3) For the three months ended September 30, 2023, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment. (4) 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 (but, for purposes of the table, do not include those loans while they are in forbearance). (5) Accrued interest to be capitalized on Private Education Loans only. (6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance). Three Months Ended September 30, 2022 FFELP Private Credit Cards Total Allowance for Credit Losses Beginning balance $ 3,929 $ 1,074,744 $ 2,393 $ 1,081,066 Transfer from unfunded commitment liability (1) — 168,377 — 168,377 Provisions: Provision for current period 29 95,482 2,039 97,550 Loan sale reduction to provision — (50,226) — (50,226) Loans transferred from held-for-sale — — (2,372) (2,372) Total provisions (2) 29 45,256 (333) 44,952 Net charge-offs: Charge-offs (147) (109,350) (2,062) (111,559) Recoveries — 11,400 2 11,402 Net charge-offs (147) (97,950) (2,060) (100,157) Ending Balance $ 3,811 $ 1,190,427 $ — $ 1,194,238 Allowance (3) : Ending balance: collectively evaluated for impairment $ 3,811 $ 1,190,427 $ — $ 1,194,238 Loans (3) : Ending balance: collectively evaluated for impairment $ 643,614 $ 20,104,463 $ — $ 20,748,077 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,056,983 $ — $ 1,056,983 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.11 % 2.67 % — % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.59 % 5.63 % — % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 0.78 % 7.98 % — % Allowance coverage of net charge-offs (annualized) 6.48 3.04 — Ending total loans, gross $ 643,614 $ 20,104,463 $ — Average loans in repayment (4) $ 518,226 $ 14,674,437 $ — Ending loans in repayment (4) $ 489,920 $ 14,546,556 $ — Accrued interest to be capitalized on loans in repayment (6) $ — $ 371,388 $ — (1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Three Months Ended September 30, 2022 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ 45,256 Provisions for unfunded loan commitments 162,646 Total Private Education Loan provisions for credit losses 207,902 Other impacts to the provisions for credit losses: FFELP Loans 29 Credit Cards (333) Total (304) Provisions for credit losses reported in consolidated statements of income $ 207,598 (3) For the three months ended September 30, 2022, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment. (4) 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 (but, for purposes of the table, do not include those loans while they are in forbearance). (5) Accrued interest to be capitalized on Private Education Loans only. (6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance). Nine Months Ended September 30, 2023 FFELP Private Education Total Allowance for Credit Losses Beginning balance $ 3,444 $ 1,353,631 $ 1,357,075 Transfer from unfunded commitment liability (1) — 278,388 278,388 Provisions: Provision for current period 2,225 196,859 199,084 Loan sale reduction to provision — (136,531) (136,531) Total provisions (2) 2,225 60,328 62,553 Net charge-offs: Charge-offs (853) (314,500) (315,353) Recoveries — 33,385 33,385 Net charge-offs (853) (281,115) (281,968) Ending Balance $ 4,816 $ 1,411,232 $ 1,416,048 Allowance (3) : Ending balance: collectively evaluated for impairment $ 4,816 $ 1,411,232 $ 1,416,048 Loans (3) : Ending balance: collectively evaluated for impairment $ 554,309 $ 21,680,867 $ 22,235,176 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,283,388 $ 1,283,388 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.26 % 2.44 % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.87 % 6.15 % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 1.15 % 8.84 % Allowance coverage of net charge-offs (annualized) 4.23 3.77 Ending total loans, gross $ 554,309 $ 21,680,867 Average loans in repayment (4) $ 440,716 $ 15,358,596 Ending loans in repayment (4) $ 418,022 $ 15,505,145 Accrued interest to be capitalized on loans in repayment (6) $ — $ 464,807 (1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Nine Months Ended September 30, 2023 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ 60,328 Provisions for unfunded loan commitments 267,311 Total Private Education Loan provisions for credit losses 327,639 Other impacts to the provisions for credit losses: FFELP Loans 2,225 Total 2,225 Provisions for credit losses reported in consolidated statements of income $ 329,864 (3) For the nine months ended September 30, 2023, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment. (4) 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 (but, for purposes of the table, do not include those loans while they are in forbearance). (5) Accrued interest to be capitalized on Private Education Loans only. (6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance). Nine Months Ended September 30, 2022 FFELP Private Credit Cards Total Allowance for Credit Losses Beginning balance $ 4,077 $ 1,158,977 $ 2,281 $ 1,165,335 Transfer from unfunded commitment liability (1) — 303,591 — 303,591 Provisions: Provision for current period 110 168,473 2,635 171,218 Loan sale reduction to provision — (171,325) — (171,325) Loans transferred from held-for-sale — — (2,372) (2,372) Total provisions (2) 110 (2,852) 263 (2,479) Net charge-offs: Charge-offs (376) (299,699) (2,549) (302,624) Recoveries — 30,410 5 30,415 Net charge-offs (376) (269,289) (2,544) (272,209) Ending Balance $ 3,811 $ 1,190,427 $ — $ 1,194,238 Allowance (3) : Ending balance: collectively evaluated for impairment $ 3,811 $ 1,190,427 $ — $ 1,194,238 Loans (3) : Ending balance: collectively evaluated for impairment $ 643,614 $ 20,104,463 $ — $ 20,748,077 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,056,983 $ — $ 1,056,983 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.09 % 2.37 % — % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.59 % 5.63 % — % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 0.78 % 7.98 % — % Allowance coverage of net charge-offs (annualized) 7.60 3.32 — Ending total loans, gross $ 643,614 $ 20,104,463 $ — Average loans in repayment (4) $ 532,275 $ 15,173,465 $ — Ending loans in repayment (4) $ 489,920 $ 14,546,556 $ — Accrued interest to be capitalized on loans in repayment (6) $ — $ 371,388 $ — (1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Nine Months Ended September 30, 2022 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ (2,852) Provisions for unfunded loan commitments 338,672 Total Private Education Loan provisions for credit losses 335,820 Other impacts to the provisions for credit losses: FFELP Loans 110 Credit Cards 263 Total 373 Provisions for credit losses reported in consolidated statements of income $ 336,193 (3) For the nine months ended September 30, 2022, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment. (4) 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 (but, for purposes of the table, do not include those loans while they are in forbearance). (5) Accrued interest to be capitalized on Private Education Loans only. (6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance). 2023 2022 Three Months Ended September 30, Allowance Unfunded Commitments Allowance Unfunded Commitments Beginning Balance $ 62,600 $ 1,562,856 $ 113,525 $ 1,413,840 Provision/New commitments - net (1) 115,605 3,258,234 192,559 3,148,434 Other provision items 37,329 — (29,913) — Transfer - funded loans (2) (101,687) (2,451,203) (168,377) (2,345,348) Ending Balance $ 113,847 $ 2,369,887 $ 107,794 $ 2,216,926 2023 2022 Nine Months Ended September 30, Allowance Unfunded Commitments Allowance Unfunded Commitments Beginning Balance $ 124,924 $ 1,995,808 $ 72,713 $ 1,776,976 Provision/New commitments - net (1) 220,303 5,912,418 339,705 5,584,129 Other provision items 47,008 — (1,033) — Transfer - funded loans (2) (278,388) (5,538,339) (303,591) (5,144,179) Ending Balance $ 113,847 $ 2,369,887 $ 107,794 $ 2,216,926 (1) Net of expirations of commitments unused. (2) When a loan commitment is funded, its related liability for credit losses (which originally was recorded as a provision for unfunded commitments) is transferred to the allowance for credit losses. |
Schedule of Amortized Cost Basis of Financing Receivables | The following tables show the amortized cost basis at the end of the respective reporting periods of the loans to borrowers experiencing financial difficulty that were modified during the period, disaggregated by class of financing receivable and type of modification. When we approve a Private Education Loan at the beginning of an academic year, we do not always disburse the full amount of the loan at the time of 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). We consider borrowers to be in financial difficulty after they have exited school and have difficulty making their scheduled principal and interest payments. Loan Modifications Made to Borrowers Experiencing Financial Difficulty Three Months Ended September 30, 2023 Interest Rate Reduction Combination - Interest Rate Reduction and Term Extension Loan Type: Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Private Education Loans $ 16,620 0.07 % $ 90,193 0.39 % Total $ 16,620 0.07 % $ 90,193 0.39 % Loan Modifications Made to Borrowers Experiencing Financial Difficulty Three Months Ended September 30, 2022 Interest Rate Reduction Combination - Interest Rate Reduction and Term Extension Loan Type: Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Private Education Loans $ 9,750 0.05 % $ 79,765 0.40 % Total $ 9,750 0.05 % $ 79,765 0.40 % Loan Modifications Made to Borrowers Experiencing Financial Difficulty Nine Months Ended September 30, 2023 Interest Rate Reduction Combination - Interest Rate Reduction and Term Extension Loan Type: Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Private Education Loans $ 39,263 0.17 % $ 254,639 1.10 % Total $ 39,263 0.17 % $ 254,639 1.10 % Loan Modifications Made to Borrowers Experiencing Financial Difficulty Nine Months Ended September 30, 2022 Interest Rate Reduction Combination - Interest Rate Reduction and Term Extension Loan Type: Amortized Cost Basis % of Total Class of Financing Receivable Amortized Cost Basis % of Total Class of Financing Receivable Private Education Loans $ 25,065 0.12 % $ 237,588 1.18 % Total $ 25,065 0.12 % $ 237,588 1.18 % The following tables describe the financial effect of the modifications made to loans whose borrowers are experiencing financial difficulty: Three Months Ended September 30, 2023 Interest Rate Reduction Combination - Interest Rate Loan Type Financial Effect Loan Type Financial Effect Private Education Loans Reduced average contractual rate from 13.57% to 4.00% Private Education Loans Added a weighted average 10.22 years to the life of loans Reduced average contractual rate from 13.12% to 4.00% Three Months Ended September 30, 2022 Interest Rate Reduction Combination - Interest Rate Loan Type Financial Effect Loan Type Financial Effect Private Education Loans Reduced average contractual rate from 11.31% to 4.00% Private Education Loans Added a weighted average 10.24 years to the life of loans Reduced average contractual rate from 10.87% to 4.00% Nine Months Ended September 30, 2023 Interest Rate Reduction Combination - Interest Rate Loan Type Financial Effect Loan Type Financial Effect Private Education Loans Reduced average contractual rate from 13.29% to 4.00% Private Education Loans Added a weighted average 10.24 years to the life of loans Reduced average contractual rate from 12.84% to 4.00% Nine Months Ended September 30, 2022 Interest Rate Reduction Combination - Interest Rate Loan Type Financial Effect Loan Type Financial Effect Private Education Loans Reduced average contractual rate from 10.76% to 4.00% Private Education Loans Added a weighted average 10.38 years to the life of loans Reduced average contractual rate from 10.17% to 4.00% Three Months Ended Three Months Ended (Dollars in thousands) Modified Loans (1)(2) Payment Default (4) Charge-Offs (5) Modified Loans (1)(2) Payment Default (4) Charge-Offs (5) Loan Type: Private Education Loans $ 14,546 $ 14,129 $ 4,534 $ 9,467 $ 9,289 $ 1,801 Total $ 14,546 $ 14,129 $ 4,534 $ 9,467 $ 9,289 $ 1,801 Nine Months Ended Nine Months Ended (Dollars in thousands) Modified Loans (1)(3) Payment Default (4) Charge-Offs (5) Modified Loans (1)(3) Payment Default (4) Charge-Offs (5) Loan Type: Private Education Loans $ 26,449 $ 27,672 $ 6,428 $ 12,660 $ 12,463 $ 1,861 Total $ 26,449 $ 27,672 $ 6,428 $ 12,660 $ 12,463 $ 1,861 (1) Represents period-end amortized cost basis of loans that have been modified and for which a payment default occurred in the relevant period presented and within 12 months of receiving a modification (or within the reporting period, for the loans shown in in the year-ago period, as the case may be). (2) For the three months ended September 30, 2023, the modified loans include $12.4 million of interest rate reduction and term extension loan modifications and $2.1 million of interest rate reduction only loan modifications. For the three months ended September 30, 2022, the modified loans include $8.5 million of interest rate reduction and term extension loan modifications and $1.0 million of interest rate reduction only loan modifications. (3) For the nine months ended September 30, 2023, the modified loans include $23.0 million of interest rate reduction and term extension loan modifications and $3.4 million of interest rate reduction only loan modifications. For the nine months ended September 30, 2022, the modified loans include $11.4 million of interest rate reduction and term extension loan modifications and $1.2 million of interest rate reduction only loan modifications. (4) Represents the unpaid principal balance at the time of payment default. (5) Represents the unpaid principal balance at the time of charge off. |
Age Analysis of Past Due Loans Delinquencies | The following tables depict the performance of loans that have been modified during the respective reporting periods (first nine months of 2023 and full year 2022, respectively). Payment Status (Amortized Cost Basis) At September 30, 2023 Deferment (1) Current (2)(3) 30-59 Days Past Due (2)(3) 60-89 Days Past Due (2)(3) 90 Days or Greater Past Due (2)(3) Total Loan Type: Private Education Loans $ 5,140 $ 266,090 $ 10,137 $ 5,565 $ 6,970 $ 293,902 Total $ 5,140 $ 266,090 $ 10,137 $ 5,565 $ 6,970 $ 293,902 Payment Status (Amortized Cost Basis) At December 31, 2022 Deferment (1) Current (2)(3) 30-59 Days Past Due (2)(3) 60-89 Days Past Due (2)(3) 90 Days or Greater Past Due (2)(3) Total Loan Type: Private Education Loans $ 7,698 $ 289,134 $ 13,859 $ 8,809 $ 6,616 $ 326,116 Total $ 7,698 $ 289,134 $ 13,859 $ 8,809 $ 6,616 $ 326,116 (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make full principal and interest payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). Deferment also includes loans that have entered a forbearance after the loan modification was granted. (2) Loans in repayment include loans on which borrowers are making full principal and interest payments after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance). (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. The following tables provide information regarding the loan status of our Private Education Loans held for investment, by year of origination approval. 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 (but, for purposes of the following tables, do not include those loans while they are in forbearance). Private Education Loans Held for Investment - Delinquencies by Origination Vintage As of September 30, 2023 (dollars in thousands) 2023 2022 2021 2020 2019 2018 and Prior Total Loans in-school/grace/deferment (1) $ 1,713,896 $ 2,118,976 $ 925,728 $ 410,375 $ 280,963 $ 511,941 $ 5,961,879 Loans in forbearance (2) 4,584 28,747 29,129 21,854 24,555 104,974 213,843 Loans in repayment: Loans current 2,005,363 3,218,301 2,327,629 1,500,801 1,382,249 4,504,119 14,938,462 Loans delinquent 30-59 days (3) 4,272 32,282 41,945 28,901 30,468 145,753 283,621 Loans delinquent 60-89 days (3) 1,788 15,013 22,612 16,566 16,311 81,159 153,449 Loans 90 days or greater past due (3) 582 8,219 16,660 12,936 14,521 76,695 129,613 Total Private Education Loans in repayment 2,012,005 3,273,815 2,408,846 1,559,204 1,443,549 4,807,726 15,505,145 Total Private Education Loans, gross 3,730,485 5,421,538 3,363,703 1,991,433 1,749,067 5,424,641 21,680,867 Private Education Loans deferred origination costs and unamortized premium/(discount) 26,268 21,367 11,090 6,555 3,993 9,400 78,673 Total Private Education Loans 3,756,753 5,442,905 3,374,793 1,997,988 1,753,060 5,434,041 21,759,540 Private Education Loans allowance for losses (220,113) (361,902) (227,021) (134,487) (111,946) (355,763) (1,411,232) Private Education Loans, net $ 3,536,640 $ 5,081,003 $ 3,147,772 $ 1,863,501 $ 1,641,114 $ 5,078,278 $ 20,348,308 Percentage of Private Education Loans in repayment 53.9 % 60.4 % 71.6 % 78.3 % 82.5 % 88.6 % 71.5 % Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment 0.3 % 1.7 % 3.4 % 3.7 % 4.2 % 6.3 % 3.7 % Loans in forbearance as a percentage of loans in repayment and forbearance 0.2 % 0.9 % 1.2 % 1.4 % 1.7 % 2.1 % 1.4 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. Private Education Loans Held for Investment - Delinquencies by Origination Vintage As of December 31, 2022 2022 2021 2020 2019 2018 2017 and Prior Total Loans in-school/grace/deferment (1) $ 1,827,649 $ 1,433,322 $ 578,253 $ 380,639 $ 219,280 $ 455,910 $ 4,895,053 Loans in forbearance (2) 16,046 64,360 38,613 37,802 30,583 91,681 279,085 Loans in repayment: Loans current 2,411,441 2,991,839 1,907,574 1,683,986 1,301,809 4,262,698 14,559,347 Loans delinquent 30-59 days (3) 14,164 30,740 30,877 35,213 31,366 144,948 287,308 Loans delinquent 60-89 days (3) 5,523 15,056 14,433 18,201 16,697 77,595 147,505 Loans 90 days or greater past due (3) 1,710 11,842 14,872 16,819 16,107 74,040 135,390 Total Private Education Loans in repayment 2,432,838 3,049,477 1,967,756 1,754,219 1,365,979 4,559,281 15,129,550 Total Private Education Loans, gross 4,276,533 4,547,159 2,584,622 2,172,660 1,615,842 5,106,872 20,303,688 Private Education Loans deferred origination costs and unamortized premium/(discount) 26,714 15,933 9,062 5,496 3,575 8,876 69,656 Total Private Education Loans 4,303,247 4,563,092 2,593,684 2,178,156 1,619,417 5,115,748 20,373,344 Private Education Loans allowance for losses (304,943) (323,506) (181,915) (141,424) (101,023) (300,820) (1,353,631) Private Education Loans, net $ 3,998,304 $ 4,239,586 $ 2,411,769 $ 2,036,732 $ 1,518,394 $ 4,814,928 $ 19,019,713 Percentage of Private Education Loans in repayment 56.9 % 67.1 % 76.1 % 80.7 % 84.5 % 89.3 % 74.5 % Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment 0.9 % 1.9 % 3.1 % 4.0 % 4.7 % 6.5 % 3.8 % Loans in forbearance as a percentage of loans in repayment and forbearance 0.7 % 2.1 % 1.9 % 2.1 % 2.2 % 2.0 % 1.8 % (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. |
Schedule of Private Education Loan Portfolio Stratified by Key Credit Quality Indicators | The following tables highlight the gross principal balance of our Private Education Loan portfolio (held for investment), by year of origination approval, stratified by key credit quality indicators. As of September 30, 2023 (dollars in thousands) Private Education Loans Held for Investment - Credit Quality Indicators Year of Origination Approval 2023 (1) 2022 (1) 2021 (1) 2020 (1) 2019 (1) 2018 and Prior (1) Total (1) % of Balance Cosigners: With cosigner $ 3,262,857 $ 4,710,256 $ 2,894,829 $ 1,686,843 $ 1,480,270 $ 4,860,436 $ 18,895,491 87 % Without cosigner 467,628 711,282 468,874 304,590 268,797 564,205 2,785,376 13 Total $ 3,730,485 $ 5,421,538 $ 3,363,703 $ 1,991,433 $ 1,749,067 $ 5,424,641 $ 21,680,867 100 % FICO at Origination Approval (2) : Less than 670 $ 278,407 $ 418,966 $ 236,903 $ 127,660 $ 146,011 $ 481,014 $ 1,688,961 8 % 670-699 530,255 752,093 455,895 278,207 275,056 929,262 3,220,768 15 700-749 1,150,877 1,690,871 1,067,755 645,549 584,322 1,830,206 6,969,580 32 Greater than or equal to 750 1,770,946 2,559,608 1,603,150 940,017 743,678 2,184,159 9,801,558 45 Total $ 3,730,485 $ 5,421,538 $ 3,363,703 $ 1,991,433 $ 1,749,067 $ 5,424,641 $ 21,680,867 100 % FICO Refreshed (2)(3) : Less than 670 $ 353,491 $ 605,817 $ 387,375 $ 218,261 $ 214,908 $ 807,495 $ 2,587,347 12 % 670-699 528,071 733,990 422,792 211,964 187,283 607,515 2,691,615 12 700-749 1,144,110 1,602,766 980,859 553,576 486,058 1,469,715 6,237,084 29 Greater than or equal to 750 1,704,813 2,478,965 1,572,677 1,007,632 860,818 2,539,916 10,164,821 47 Total $ 3,730,485 $ 5,421,538 $ 3,363,703 $ 1,991,433 $ 1,749,067 $ 5,424,641 $ 21,680,867 100 % Seasoning (4) : 1-12 payments $ 2,016,589 $ 2,187,876 $ 414,530 $ 232,959 $ 201,057 $ 379,107 $ 5,432,118 25 % 13-24 payments — 1,114,686 1,380,064 183,885 186,471 459,239 3,324,345 15 25-36 payments — — 643,381 753,256 120,744 487,209 2,004,590 9 37-48 payments — — — 410,918 696,040 471,110 1,578,068 7 More than 48 payments — — — 40 263,792 3,116,035 3,379,867 16 Not yet in repayment 1,713,896 2,118,976 925,728 410,375 280,963 511,941 5,961,879 28 Total $ 3,730,485 $ 5,421,538 $ 3,363,703 $ 1,991,433 $ 1,749,067 $ 5,424,641 $ 21,680,867 100 % 2023 Current period (5) gross charge-offs $ (614) $ (17,832) $ (52,861) $ (38,251) $ (39,710) $ (165,232) $ (314,500) 2023 Current period (5) recoveries 76 1,278 4,802 3,522 3,923 19,784 33,385 2023 Current period (5) net charge-offs $ (538) $ (16,554) $ (48,059) $ (34,729) $ (35,787) $ (145,448) $ (281,115) Total accrued interest by origination vintage $ 94,292 $ 407,226 $ 328,076 $ 186,063 $ 150,655 $ 262,913 $ 1,429,225 (1) Balance represents gross Private Education Loans held for investment. (2) Represents the higher credit score of the cosigner or the borrower. (3) Represents the FICO score updated as of the third-quarter 2023. (4) Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due. (5) Current period refers to period from January 1, 2023 through September 30, 2023. As of December 31, 2022 Private Education Loans Held for Investment - Credit Quality Indicators Year of Origination Approval 2022 (1) 2021 (1) 2020 (1) 2019 (1) 2018 (1) 2017 and Prior (1) Total (1) % of Balance Cosigners: With cosigner $ 3,656,111 $ 3,941,921 $ 2,208,033 $ 1,853,619 $ 1,402,828 $ 4,626,491 $ 17,689,003 87 % Without cosigner 620,422 605,238 376,589 319,041 213,014 480,381 2,614,685 13 Total $ 4,276,533 $ 4,547,159 $ 2,584,622 $ 2,172,660 $ 1,615,842 $ 5,106,872 $ 20,303,688 100 % FICO at Origination Approval (2) : Less than 670 $ 326,991 $ 307,646 $ 158,606 $ 177,098 $ 143,674 $ 439,587 $ 1,553,602 8 % 670-699 593,216 611,649 356,541 339,685 259,142 878,426 3,038,659 15 700-749 1,336,765 1,440,510 834,819 719,777 537,680 1,722,068 6,591,619 32 Greater than or equal to 750 2,019,561 2,187,354 1,234,656 936,100 675,346 2,066,791 9,119,808 45 Total $ 4,276,533 $ 4,547,159 $ 2,584,622 $ 2,172,660 $ 1,615,842 $ 5,106,872 $ 20,303,688 100 % FICO Refreshed (2)(3) : Less than 670 $ 443,868 $ 461,589 $ 242,310 $ 237,105 $ 204,894 $ 773,324 $ 2,363,090 12 % 670-699 594,118 579,784 284,244 240,999 173,754 564,344 2,437,243 12 700-749 1,322,558 1,378,910 748,368 628,060 449,701 1,388,090 5,915,687 29 Greater than or equal to 750 1,915,989 2,126,876 1,309,700 1,066,496 787,493 2,381,114 9,587,668 47 Total $ 4,276,533 $ 4,547,159 $ 2,584,622 $ 2,172,660 $ 1,615,842 $ 5,106,872 $ 20,303,688 100 % Seasoning (4) : 1-12 payments $ 2,448,884 $ 636,073 $ 384,334 $ 330,316 $ 235,878 $ 424,636 $ 4,460,121 22 % 13-24 payments — 2,477,764 255,510 195,753 166,045 455,782 3,550,854 18 25-36 payments — — 1,366,398 257,534 126,223 489,157 2,239,312 11 37-48 payments — — 127 1,008,418 224,805 451,102 1,684,452 8 More than 48 payments — — — — 643,611 2,830,285 3,473,896 17 Not yet in repayment 1,827,649 1,433,322 578,253 380,639 219,280 455,910 4,895,053 24 Total $ 4,276,533 $ 4,547,159 $ 2,584,622 $ 2,172,660 $ 1,615,842 $ 5,106,872 $ 20,303,688 100 % 2022 Current period (5) gross charge-offs $ (2,224) $ (25,698) $ (48,271) $ (62,071) $ (57,505) $ (231,647) $ (427,416) 2022 Current period (5) recoveries 124 1,841 4,170 5,556 5,407 24,639 41,737 2022 Current period (5) net charge-offs $ (2,100) $ (23,857) $ (44,101) $ (56,515) $ (52,098) $ (207,008) $ (385,679) Total accrued interest by origination vintage $ 142,915 $ 315,308 $ 207,858 $ 184,832 $ 116,211 $ 210,438 $ 1,177,562 (1) Balance represents gross Private Education Loans held for investment. (2) Represents the higher credit score of the cosigner or the borrower. (3) Represents the FICO score updated as of the fourth-quarter 2022. (4) Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due. |
Schedule of 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 90 days or greater past due as compared to our allowance for uncollectible interest on loans making full interest payments. 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 after separation from school, and the current expected credit losses on accrued interest that will be capitalized is included in our allowance for credit losses. Private Education Loans Accrued Interest Receivable (Dollars in thousands) Total Interest Receivable 90 Days or Greater Past Due Allowance for Uncollectible Interest (1)(2) September 30, 2023 $ 1,429,225 $ 6,756 $ 8,516 December 31, 2022 $ 1,177,562 $ 6,609 $ 8,121 (1) The allowance for uncollectible interest at September 30, 2023 represents the expected losses related to the portion of accrued interest receivable on those loans that are in repayment ($146 million of accrued interest receivable) that is not expected to be capitalized. The accrued interest receivable that is expected to be capitalized ($1.3 billion) is reserved in the allowance for credit losses. |
Unfunded Loan Commitments (Tabl
Unfunded Loan Commitments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Credit Loss [Abstract] | |
Schedule of Allowance for Credit Losses and Recorded Investments in Loans | Allowance for Credit Losses Metrics Three Months Ended September 30, 2023 FFELP Private Education Total Allowance for Credit Losses Beginning balance $ 4,422 $ 1,360,294 $ 1,364,716 Transfer from unfunded commitment liability (1) — 101,687 101,687 Provisions: Provision for current period 666 44,423 45,089 Total provisions (2) 666 44,423 45,089 Net charge-offs: Charge-offs (272) (104,865) (105,137) Recoveries — 9,693 9,693 Net charge-offs (272) (95,172) (95,444) Ending Balance $ 4,816 $ 1,411,232 $ 1,416,048 Allowance (3) : Ending balance: collectively evaluated for impairment $ 4,816 $ 1,411,232 $ 1,416,048 Loans (3) : Ending balance: collectively evaluated for impairment $ 554,309 $ 21,680,867 $ 22,235,176 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,283,388 $ 1,283,388 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.25 % 2.53 % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.87 % 6.15 % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 1.15 % 8.84 % Allowance coverage of net charge-offs (annualized) 4.43 3.71 Ending total loans, gross $ 554,309 $ 21,680,867 Average loans in repayment (4) $ 428,028 $ 15,023,993 Ending loans in repayment (4) $ 418,022 $ 15,505,145 Accrued interest to be capitalized on loans in repayment (6) $ — $ 464,807 (1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Three Months Ended September 30, 2023 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ 44,423 Provisions for unfunded loan commitments 152,934 Total Private Education Loan provisions for credit losses 197,357 Other impacts to the provisions for credit losses: FFELP Loans 666 Total 666 Provisions for credit losses reported in consolidated statements of income $ 198,023 (3) For the three months ended September 30, 2023, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment. (4) 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 (but, for purposes of the table, do not include those loans while they are in forbearance). (5) Accrued interest to be capitalized on Private Education Loans only. (6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance). Three Months Ended September 30, 2022 FFELP Private Credit Cards Total Allowance for Credit Losses Beginning balance $ 3,929 $ 1,074,744 $ 2,393 $ 1,081,066 Transfer from unfunded commitment liability (1) — 168,377 — 168,377 Provisions: Provision for current period 29 95,482 2,039 97,550 Loan sale reduction to provision — (50,226) — (50,226) Loans transferred from held-for-sale — — (2,372) (2,372) Total provisions (2) 29 45,256 (333) 44,952 Net charge-offs: Charge-offs (147) (109,350) (2,062) (111,559) Recoveries — 11,400 2 11,402 Net charge-offs (147) (97,950) (2,060) (100,157) Ending Balance $ 3,811 $ 1,190,427 $ — $ 1,194,238 Allowance (3) : Ending balance: collectively evaluated for impairment $ 3,811 $ 1,190,427 $ — $ 1,194,238 Loans (3) : Ending balance: collectively evaluated for impairment $ 643,614 $ 20,104,463 $ — $ 20,748,077 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,056,983 $ — $ 1,056,983 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.11 % 2.67 % — % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.59 % 5.63 % — % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 0.78 % 7.98 % — % Allowance coverage of net charge-offs (annualized) 6.48 3.04 — Ending total loans, gross $ 643,614 $ 20,104,463 $ — Average loans in repayment (4) $ 518,226 $ 14,674,437 $ — Ending loans in repayment (4) $ 489,920 $ 14,546,556 $ — Accrued interest to be capitalized on loans in repayment (6) $ — $ 371,388 $ — (1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Three Months Ended September 30, 2022 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ 45,256 Provisions for unfunded loan commitments 162,646 Total Private Education Loan provisions for credit losses 207,902 Other impacts to the provisions for credit losses: FFELP Loans 29 Credit Cards (333) Total (304) Provisions for credit losses reported in consolidated statements of income $ 207,598 (3) For the three months ended September 30, 2022, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment. (4) 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 (but, for purposes of the table, do not include those loans while they are in forbearance). (5) Accrued interest to be capitalized on Private Education Loans only. (6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance). Nine Months Ended September 30, 2023 FFELP Private Education Total Allowance for Credit Losses Beginning balance $ 3,444 $ 1,353,631 $ 1,357,075 Transfer from unfunded commitment liability (1) — 278,388 278,388 Provisions: Provision for current period 2,225 196,859 199,084 Loan sale reduction to provision — (136,531) (136,531) Total provisions (2) 2,225 60,328 62,553 Net charge-offs: Charge-offs (853) (314,500) (315,353) Recoveries — 33,385 33,385 Net charge-offs (853) (281,115) (281,968) Ending Balance $ 4,816 $ 1,411,232 $ 1,416,048 Allowance (3) : Ending balance: collectively evaluated for impairment $ 4,816 $ 1,411,232 $ 1,416,048 Loans (3) : Ending balance: collectively evaluated for impairment $ 554,309 $ 21,680,867 $ 22,235,176 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,283,388 $ 1,283,388 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.26 % 2.44 % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.87 % 6.15 % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 1.15 % 8.84 % Allowance coverage of net charge-offs (annualized) 4.23 3.77 Ending total loans, gross $ 554,309 $ 21,680,867 Average loans in repayment (4) $ 440,716 $ 15,358,596 Ending loans in repayment (4) $ 418,022 $ 15,505,145 Accrued interest to be capitalized on loans in repayment (6) $ — $ 464,807 (1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Nine Months Ended September 30, 2023 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ 60,328 Provisions for unfunded loan commitments 267,311 Total Private Education Loan provisions for credit losses 327,639 Other impacts to the provisions for credit losses: FFELP Loans 2,225 Total 2,225 Provisions for credit losses reported in consolidated statements of income $ 329,864 (3) For the nine months ended September 30, 2023, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment. (4) 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 (but, for purposes of the table, do not include those loans while they are in forbearance). (5) Accrued interest to be capitalized on Private Education Loans only. (6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance). Nine Months Ended September 30, 2022 FFELP Private Credit Cards Total Allowance for Credit Losses Beginning balance $ 4,077 $ 1,158,977 $ 2,281 $ 1,165,335 Transfer from unfunded commitment liability (1) — 303,591 — 303,591 Provisions: Provision for current period 110 168,473 2,635 171,218 Loan sale reduction to provision — (171,325) — (171,325) Loans transferred from held-for-sale — — (2,372) (2,372) Total provisions (2) 110 (2,852) 263 (2,479) Net charge-offs: Charge-offs (376) (299,699) (2,549) (302,624) Recoveries — 30,410 5 30,415 Net charge-offs (376) (269,289) (2,544) (272,209) Ending Balance $ 3,811 $ 1,190,427 $ — $ 1,194,238 Allowance (3) : Ending balance: collectively evaluated for impairment $ 3,811 $ 1,190,427 $ — $ 1,194,238 Loans (3) : Ending balance: collectively evaluated for impairment $ 643,614 $ 20,104,463 $ — $ 20,748,077 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,056,983 $ — $ 1,056,983 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.09 % 2.37 % — % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.59 % 5.63 % — % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 0.78 % 7.98 % — % Allowance coverage of net charge-offs (annualized) 7.60 3.32 — Ending total loans, gross $ 643,614 $ 20,104,463 $ — Average loans in repayment (4) $ 532,275 $ 15,173,465 $ — Ending loans in repayment (4) $ 489,920 $ 14,546,556 $ — Accrued interest to be capitalized on loans in repayment (6) $ — $ 371,388 $ — (1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively. (2) Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses. Consolidated Statements of Income Nine Months Ended September 30, 2022 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ (2,852) Provisions for unfunded loan commitments 338,672 Total Private Education Loan provisions for credit losses 335,820 Other impacts to the provisions for credit losses: FFELP Loans 110 Credit Cards 263 Total 373 Provisions for credit losses reported in consolidated statements of income $ 336,193 (3) For the nine months ended September 30, 2022, there were no allowance for credit losses, loans, or accrued interest to be capitalized balances that were individually evaluated for impairment. (4) 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 (but, for purposes of the table, do not include those loans while they are in forbearance). (5) Accrued interest to be capitalized on Private Education Loans only. (6) Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include the interest on those loans while they are in forbearance). 2023 2022 Three Months Ended September 30, Allowance Unfunded Commitments Allowance Unfunded Commitments Beginning Balance $ 62,600 $ 1,562,856 $ 113,525 $ 1,413,840 Provision/New commitments - net (1) 115,605 3,258,234 192,559 3,148,434 Other provision items 37,329 — (29,913) — Transfer - funded loans (2) (101,687) (2,451,203) (168,377) (2,345,348) Ending Balance $ 113,847 $ 2,369,887 $ 107,794 $ 2,216,926 2023 2022 Nine Months Ended September 30, Allowance Unfunded Commitments Allowance Unfunded Commitments Beginning Balance $ 124,924 $ 1,995,808 $ 72,713 $ 1,776,976 Provision/New commitments - net (1) 220,303 5,912,418 339,705 5,584,129 Other provision items 47,008 — (1,033) — Transfer - funded loans (2) (278,388) (5,538,339) (303,591) (5,144,179) Ending Balance $ 113,847 $ 2,369,887 $ 107,794 $ 2,216,926 (1) Net of expirations of commitments unused. (2) When a loan commitment is funded, its related liability for credit losses (which originally was recorded as a provision for unfunded commitments) is transferred to the allowance for credit losses. |
Goodwill and Acquired Intangi_2
Goodwill and Acquired Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Intangible Assets | Acquired intangible assets include the following: September 30, 2023 December 31, 2022 (Dollars in thousands) Weighted Average Useful Life (in years) (1) Cost Basis Accumulated Amortization Net Cost Basis Accumulated Amortization Net Tradename and trademarks (2) 9.5 $ 74,510 $ (11,093) $ 63,417 $ 68,470 $ (5,706) $ 62,764 Customer relationships (2) 4.6 8,920 (3,268) 5,652 5,670 (1,723) 3,947 Developed technology (2) 3.5 2,590 (720) 1,870 1,260 (350) 910 Partner relationships 2.5 730 (49) 681 — — — Total acquired intangible assets $ 86,750 $ (15,130) $ 71,620 $ 75,400 $ (7,779) $ 67,621 (1) The weighted average useful life of acquired intangible assets is at acquisition; 9.5 years is the weighted average useful life of the acquired intangible assets related to the Nitro acquisition and 3.9 years is related to the Scholly acquisition. (2) Tradename and trademarks, customer relationships, and developed technology at September 30, 2023 include $6 million, $3 million, and $1 million, respectively related to the Scholly acquisition. |
Deposits (Tables)
Deposits (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Schedule of Deposits | The following table summarizes total deposits at September 30, 2023 and December 31, 2022. September 30, December 31, (Dollars in thousands) 2023 2022 Deposits - interest-bearing $ 21,550,108 $ 21,446,647 Deposits - non-interest-bearing 637 1,424 Total deposits $ 21,550,745 $ 21,448,071 |
Schedule of Interest Bearing Deposits | Interest bearing deposits at September 30, 2023 and December 31, 2022 are summarized as follows: September 30, 2023 December 31, 2022 (Dollars in thousands) Amount Qtr.-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 10,241,232 4.75 % $ 10,977,242 3.75 % Savings 930,590 4.35 982,586 3.15 Certificates of deposit 10,378,286 3.58 9,486,819 2.57 Deposits - interest bearing $ 21,550,108 $ 21,446,647 (1) Includes the effect of interest rate swaps in effective hedge relationships. |
Schedule of Certificates of Deposit Maturities | Certificates of deposit remaining maturities are summarized as follows: (Dollars in thousands) September 30, 2023 December 31, 2022 One year or less $ 3,436,186 $ 3,224,573 After one year to two years 4,079,381 2,954,257 After two years to three years 2,359,064 1,904,919 After three years to four years 248,301 1,031,881 After four years to five years 255,354 324,375 After five years — 46,814 Total $ 10,378,286 $ 9,486,819 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes our borrowings at September 30, 2023 and December 31, 2022. September 30, 2023 December 31, 2022 (Dollars in thousands) Short-Term Long-Term Total Short-Term Long-Term Total Unsecured borrowings: Unsecured debt (fixed-rate) $ — $ 991,396 $ 991,396 $ — $ 988,986 $ 988,986 Total unsecured borrowings — 991,396 991,396 — 988,986 988,986 Secured borrowings: Private Education Loan term securitizations: Fixed-rate — 3,807,493 3,807,493 — 3,462,363 3,462,363 Variable-rate — 716,643 716,643 — 783,765 783,765 Total Private Education Loan term securitizations — 4,524,136 4,524,136 — 4,246,128 4,246,128 Secured Borrowing Facility — — — — — — Total secured borrowings — 4,524,136 4,524,136 — 4,246,128 4,246,128 Total $ — $ 5,515,532 $ 5,515,532 $ — $ 5,235,114 $ 5,235,114 |
Schedule of Securities Financing Transactions | The following table summarizes our secured financings issued in the year ended December 31, 2022 and in the nine months ended September 30, 2023. Issue Date Issued Total Issued Weighted Average Cost of Funds (1) Weighted Average Life (Dollars in thousands) Private Education Loans: 2022-C August 2022 $ 575,000 SOFR plus 1.76% 4.69 Total notes issued in 2022 $ 575,000 Total loan and accrued interest amount securitized at inception in 2022 (2) $ 674,387 2023-A March 2023 $ 579,000 SOFR plus 1.53% 5.06 2023-C August 2023 568,000 SOFR plus 1.69% 4.93 Total notes issued in 2023 $ 1,147,000 Total loan and accrued interest amount securitized at inception in 2023 (3) $ 1,292,507 (1) Represents SOFR equivalent cost of funds for floating and fixed-rate bonds, excluding issuance costs. (2) At September 30, 2023, $565 million of our Private Education Loans, including $527 million of principal and $38 million in capitalized interest, were encumbered related to these transactions. |
Schedule of Variable Interest Entities | 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. As of September 30, 2023 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 $ — $ 4,524,136 $ 4,524,136 $ 5,776,779 $ 174,757 $ 358,220 $ 6,309,756 Secured Borrowing Facility — — — — — 1,767 1,767 Total $ — $ 4,524,136 $ 4,524,136 $ 5,776,779 $ 174,757 $ 359,987 $ 6,311,523 As of December 31, 2022 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 $ — $ 4,246,128 $ 4,246,128 $ 5,433,602 $ 156,719 $ 286,093 $ 5,876,414 Secured Borrowing Facility — — — — — 1,066 1,066 Total $ — $ 4,246,128 $ 4,246,128 $ 5,433,602 $ 156,719 $ 287,159 $ 5,877,480 (1) Other assets primarily represent accrued interest receivable. The table below provides a summary of our exposure related to our unconsolidated VIEs. September 30, 2023 December 31, 2022 (Dollars in thousands) Debt Interests (1) Equity Interests (2) Total Exposure Debt Interests (1) Equity Interests (2) Total Exposure Private Education Loan term securitizations $ 389,006 $ 52,561 $ 441,567 $ 329,188 $ 50,786 $ 379,974 (1) Vertical risk retention interest classified as available-for-sale investment. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Impact of Derivatives on the Consolidated Balance Sheet | The following tables summarize the fair values and notional amounts of all derivative instruments at September 30, 2023 and December 31, 2022, and their impact on earnings and other comprehensive income for the nine months ended September 30, 2023 and September 30, 2022. Please refer to Notes to Consolidated Financial Statements, Note 13, “Derivative Financial Instruments” in our 2022 Form 10-K for a full discussion of cash flow hedges, fair value hedges, and trading activities. Impact of Derivatives on the Consolidated Balance Sheets Cash Flow Hedges Fair Value Hedges Trading Total September 30, December 31, September 30, December 31, September 30, December 31, September 30, December 31, (Dollars in thousands) 2023 2022 2023 2022 2023 2022 2023 2022 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ — $ 972 $ 17 $ — $ — $ — $ 17 $ 972 Derivative Liabilities: (2) Interest rate swaps Interest rate (268) — — (567) — — (268) (567) Total net derivatives $ (268) $ 972 $ 17 $ (567) $ — $ — $ (251) $ 405 (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 September 30, December 31, September 30, December 31, (Dollars in thousands) 2023 2022 2023 2022 Gross position (1) $ 17 $ 972 $ (268) $ (567) Impact of master netting agreement (17) (567) 17 567 Derivative values with impact of master netting agreements (as carried on balance sheet) — 405 (251) — Cash collateral pledged (2) 11,087 11,162 — — Net position $ 11,087 $ 11,567 $ (251) $ — (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. |
Schedule of Offsetting Assets | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities September 30, December 31, September 30, December 31, (Dollars in thousands) 2023 2022 2023 2022 Gross position (1) $ 17 $ 972 $ (268) $ (567) Impact of master netting agreement (17) (567) 17 567 Derivative values with impact of master netting agreements (as carried on balance sheet) — 405 (251) — Cash collateral pledged (2) 11,087 11,162 — — Net position $ 11,087 $ 11,567 $ (251) $ — (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. |
Schedule of Offsetting Liabilities | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities September 30, December 31, September 30, December 31, (Dollars in thousands) 2023 2022 2023 2022 Gross position (1) $ 17 $ 972 $ (268) $ (567) Impact of master netting agreement (17) (567) 17 567 Derivative values with impact of master netting agreements (as carried on balance sheet) — 405 (251) — Cash collateral pledged (2) 11,087 11,162 — — Net position $ 11,087 $ 11,567 $ (251) $ — (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. |
Schedule of Notional Amounts of Outstanding Derivative Positions | Notional Values Cash Flow Fair Value Trading Total (Dollars in thousands) September 30, December 31, September 30, December 31, September 30, December 31, September 30, December 31, 2023 2022 2023 2022 2023 2022 2023 2022 Interest rate swaps $ 1,229,011 $ 1,314,660 $ 702,309 $ 1,528,186 $ — $ — $ 1,931,320 $ 2,842,846 Net total notional $ 1,229,011 $ 1,314,660 $ 702,309 $ 1,528,186 $ — $ — $ 1,931,320 $ 2,842,846 |
Schedule of Cumulative Basis Adjustments for Fair Value Hedges | As of September 30, 2023 and December 31, 2022, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges: (Dollars in thousands) Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) Line Item in the Balance Sheet in Which the Hedged Item is Included: September 30, December 31, September 30, December 31, 2023 2022 2023 2022 Deposits $ (681,292) $ (1,494,087) $ 20,755 $ 31,259 |
Schedule of Impact of Derivatives on the Consolidated Statements of Income | Impact of Derivatives on the Consolidated Statements of Income Three Months Ended Nine Months Ended (Dollars in thousands) 2023 2022 2023 2022 Fair Value Hedges Interest rate swaps: Interest recognized on derivatives $ (6,701) $ (1,783) $ (19,086) $ 24,418 Hedged items recorded in interest expense (4,346) 14,143 (10,504) 86,899 Derivatives recorded in interest expense 4,265 (14,425) 10,596 (86,896) Total $ (6,782) $ (2,065) $ (18,994) $ 24,421 Cash Flow Hedges Interest rate swaps: Amount of gain (loss) reclassified from accumulated other comprehensive income into interest expense $ 12,813 $ 2,771 $ 34,917 $ (4,033) Total $ 12,813 $ 2,771 $ 34,917 $ (4,033) Trading Interest rate swaps: Change in fair value of future interest payments recorded in earnings $ — $ — $ — $ (248) Total — — — (248) Total $ 6,031 $ 706 $ 15,923 $ 20,140 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | Impact of Derivatives on the Statements of Changes in Stockholders’ Equity Three Months Ended Nine Months Ended September 30, September 30, (Dollars in thousands) 2023 2022 2023 2022 Amount of gain (loss) recognized in other comprehensive income (loss) $ 7,046 $ 32,594 $ 21,726 $ 94,215 Less: amount of gain (loss) reclassified in interest expense 12,813 2,771 34,917 (4,033) Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit $ (5,767) $ 29,823 $ (13,191) $ 98,248 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Common Share Repurchases | The following table summarizes our common share repurchases and issuances. Three Months Ended Nine Months Ended (Shares and per share amounts in actuals) 2023 2022 2023 2022 Common stock repurchased under repurchase programs (1) — 1,191,544 16,389,696 30,721,944 Average purchase price per share (2) $ — $ 14.14 $ 15.71 $ 18.00 Shares repurchased related to employee stock-based compensation plans (3) 10,687 448 1,088,330 1,131,351 Average purchase price per share $ 16.14 $ 13.99 $ 15.45 $ 18.36 Common shares issued (4) 200,886 4,682 3,073,639 3,093,392 (1) Common shares purchased under our share repurchase programs. We have utilized all capacity under our 2021 Share Repurchase Program. There was $326 million of capacity remaining under the 2022 Share Repurchase Program at September 30, 2023. (2) Average purchase price per share includes purchase commission costs and excise taxes. (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. |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows. Three Months Ended Nine Months Ended (Dollars in thousands, except per share data) 2023 2022 2023 2022 Numerator: Net income $ 29,365 $ 75,172 $ 412,948 $ 546,057 Preferred stock dividends 4,642 2,531 12,979 5,563 Net income attributable to SLM Corporation common stock $ 24,723 $ 72,641 $ 399,969 $ 540,494 Denominator: Weighted average shares used to compute basic EPS 226,120 251,266 234,170 263,098 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) 2,680 2,450 2,423 2,967 Weighted average shares used to compute diluted EPS 228,800 253,716 236,593 266,065 Basic earnings per common share $ 0.11 $ 0.29 $ 1.71 $ 2.05 Diluted earnings per common share $ 0.11 $ 0.29 $ 1.69 $ 2.03 (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. |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
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 September 30, 2023 December 31, 2022 (Dollars in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Trading investments $ — $ — $ 52,561 $ 52,561 $ — $ — $ 55,903 $ 55,903 Available-for-sale investments — 2,315,978 — 2,315,978 — 2,342,089 — 2,342,089 Derivative instruments — 17 — 17 — 972 — 972 Total $ — $ 2,315,995 $ 52,561 $ 2,368,556 $ — $ 2,343,061 $ 55,903 $ 2,398,964 Liabilities: Derivative instruments $ — $ (268) $ — $ (268) $ — $ (567) $ — $ (567) Total $ — $ (268) $ — $ (268) $ — $ (567) $ — $ (567) |
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. September 30, 2023 December 31, 2022 (Dollars in thousands) Fair Carrying Difference Fair Carrying Difference Earning assets: Loans held for investment, net: Private Education Loans $ 22,370,679 $ 20,348,308 $ 2,022,371 $ 21,062,548 $ 19,019,713 $ 2,042,835 FFELP Loans 559,852 550,873 8,979 618,186 607,155 11,031 Loans held for sale — — — 29,448 29,448 — Cash and cash equivalents 3,548,225 3,548,225 — 4,616,117 4,616,117 — Trading investments 52,561 52,561 — 55,903 55,903 — Available-for-sale investments 2,315,978 2,315,978 — 2,342,089 2,342,089 — Accrued interest receivable 1,498,156 1,457,323 40,833 1,237,074 1,202,059 35,015 Tax indemnification receivable 2,945 2,945 — 2,816 2,816 — Derivative instruments 17 17 — 972 972 — Total earning assets $ 30,348,413 $ 28,276,230 $ 2,072,183 $ 29,965,153 $ 27,876,272 $ 2,088,881 Interest-bearing liabilities: Money-market and savings accounts $ 11,060,884 $ 11,171,822 $ 110,938 $ 11,854,849 $ 11,959,828 $ 104,979 Certificates of deposit 10,201,927 10,378,286 176,359 9,175,339 9,486,819 311,480 Long-term borrowings 5,133,657 5,515,532 381,875 4,813,233 5,235,114 421,881 Accrued interest payable 99,415 99,415 — 71,586 71,586 — Derivative instruments 268 268 — 567 567 — Total interest-bearing liabilities $ 26,496,151 $ 27,165,323 $ 669,172 $ 25,915,574 $ 26,753,914 $ 838,340 Excess of net asset fair value over carrying value $ 2,741,355 $ 2,927,221 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements Under Banking Regulations | At September 30, 2023, the adjusted transition amounts that were deferred and are being phased in for regulatory capital purposes are as follows: Adjusted Transition Amounts Phase-In Amounts for the Year Ended Phase-In Amounts for the Nine Months Ended Remaining Adjusted Transition Amounts to be Phased-In (Dollars in thousands) December 31, 2021 December 31, 2022 September 30, 2023 September 30, 2023 Retained earnings $ 836,351 $ (209,088) $ (209,088) $ 418,175 Allowance for credit losses 1,038,145 (259,536) (259,536) 519,073 Liability for unfunded commitments 104,377 (26,094) (26,094) 52,189 Deferred tax asset 306,171 (76,542) (76,542) 153,087 The Bank’s required and actual regulatory capital amounts and ratios under U.S. Basel III are shown in the following table. The following capital amounts and ratios are based upon the Bank’s average assets and risk-weighted assets, as indicated. The Bank has elected to exclude accumulated other comprehensive income related to both available-for-sale investments and swap valuations from Common Equity Tier 1 Capital. At September 30, 2023 and December 31, 2022, the unrealized loss on available-for-sale investments included in other comprehensive income totaled $158 million and $160 million, net of tax of $51 million and $52 million, respectively. The capital ratios would remain above the well capitalized thresholds if the unrealized loss became fully recognized into capital. (Dollars in thousands) Actual U.S. Basel III Minimum Requirements Plus Buffer (1)(2) Amount Ratio Amount Ratio As of September 30, 2023 (3) : Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 2,935,903 11.7 % $ 1,763,562 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 2,935,903 11.7 % $ 2,141,468 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,258,771 12.9 % $ 2,645,343 > 10.5 % Tier 1 Capital (to Average Assets) $ 2,935,903 10.1 % $ 1,166,116 > 4.0 % As of December 31, 2022 (3) : Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 3,040,662 12.9 % $ 1,645,807 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 3,040,662 12.9 % $ 1,998,480 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,338,645 14.2 % $ 2,468,711 > 10.5 % Tier 1 Capital (to Average Assets) $ 3,040,662 10.3 % $ 1,185,280 > 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. |
Significant Accounting Polici_3
Significant Accounting Policies (Details) - USD ($) $ in Millions | 2 Months Ended | 9 Months Ended | |
Jul. 21, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | |
Business Acquisition [Line Items] | |||
Goodwill | $ 56 | $ 56 | |
Scholly, Inc. | |||
Business Acquisition [Line Items] | |||
Goodwill | $ 5 | ||
Acquisition transaction costs | $ 1 | ||
Identifiable intangible assets aggregate fair value at acquisition date | $ 11 | ||
Weighted average useful life of acquired intangible assets | 3 years 10 months 24 days | ||
Scholly, Inc. | Minimum | |||
Business Acquisition [Line Items] | |||
Weighted average useful life of acquired intangible assets | 2 years | ||
Scholly, Inc. | Maximum | |||
Business Acquisition [Line Items] | |||
Weighted average useful life of acquired intangible assets | 4 years |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Thousands | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2023 USD ($) security | Sep. 30, 2023 USD ($) security | Sep. 30, 2023 USD ($) security Rate | Dec. 31, 2022 USD ($) security | Mar. 31, 2023 USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||||
Vertical risk retention interest | 5% | 5% | |||
Trading investments | $ 52,561 | $ 52,561 | $ 52,561 | $ 55,903 | |
Number of government sponsored securities with unrealized losses | security | 226 | 226 | 226 | 191 | |
Number of mortgage-backed securities | security | 230 | 230 | 230 | 194 | |
Par value of mortgage-backed securities pledged to FRB | $ 582,000 | $ 582,000 | $ 582,000 | $ 547,000 | |
Non-marketable securities investment | 14,000 | 14,000 | 14,000 | 8,000 | |
Low income housing tax credit investments | 74,000 | 74,000 | 74,000 | 80,000 | |
Liability for unfunded commitments | 34,000 | $ 34,000 | $ 34,000 | 46,000 | |
Low income housing tax credit investments, tax credits and benefits (less than) | $ 1,000 | 9,000 | |||
Low income housing tax credit investments, expected tax benefits recognized | 25% | ||||
Convertible Debt Securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Trading investments | $ 5,000 | ||||
Equity Securities | |||||
Debt Securities, Available-for-sale [Line Items] | |||||
Non-marketable securities investment | $ 5,000 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 2,524,634 | $ 2,554,332 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 595 | 35 |
Gross Unrealized Losses | (209,251) | (212,278) |
Estimated Fair Value | 2,315,978 | 2,342,089 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 438,527 | 389,067 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 0 | 2 |
Gross Unrealized Losses | (87,399) | (68,705) |
Estimated Fair Value | 351,128 | 320,364 |
Utah Housing Corporation bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,408 | 3,584 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (555) | (357) |
Estimated Fair Value | 2,853 | 3,227 |
U.S. government-sponsored enterprises and Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,669,748 | 1,804,726 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (96,757) | (115,416) |
Estimated Fair Value | 1,572,991 | 1,689,310 |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 412,951 | 356,955 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 595 | 33 |
Gross Unrealized Losses | (24,540) | (27,800) |
Estimated Fair Value | $ 389,006 | $ 329,188 |
Investments - Gross Unrealized
Investments - Gross Unrealized Losses and Fair Value for Mortgage-Backed in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Less than 12 months | ||
Gross Unrealized Losses | $ (5,393) | $ (58,293) |
Estimated Fair Value | 148,846 | 1,024,671 |
12 months or more | ||
Gross Unrealized Losses | (203,858) | (153,985) |
Estimated Fair Value | 2,095,461 | 1,313,469 |
Total | ||
Gross Unrealized Losses | (209,251) | (212,278) |
Estimated Fair Value | 2,244,307 | 2,338,140 |
Mortgage-backed securities | ||
Less than 12 months | ||
Gross Unrealized Losses | (3,342) | (13,956) |
Estimated Fair Value | 67,737 | 99,598 |
12 months or more | ||
Gross Unrealized Losses | (84,057) | (54,749) |
Estimated Fair Value | 283,391 | 220,576 |
Total | ||
Gross Unrealized Losses | (87,399) | (68,705) |
Estimated Fair Value | 351,128 | 320,174 |
Utah Housing Corporation bonds | ||
Less than 12 months | ||
Gross Unrealized Losses | 0 | (357) |
Estimated Fair Value | 0 | 3,227 |
12 months or more | ||
Gross Unrealized Losses | (555) | 0 |
Estimated Fair Value | 2,853 | 0 |
Total | ||
Gross Unrealized Losses | (555) | (357) |
Estimated Fair Value | 2,853 | 3,227 |
U.S. government-sponsored enterprises and Treasuries | ||
Less than 12 months | ||
Gross Unrealized Losses | 0 | (28,128) |
Estimated Fair Value | 0 | 689,300 |
12 months or more | ||
Gross Unrealized Losses | (96,757) | (87,288) |
Estimated Fair Value | 1,572,991 | 1,000,010 |
Total | ||
Gross Unrealized Losses | (96,757) | (115,416) |
Estimated Fair Value | 1,572,991 | 1,689,310 |
Other securities | ||
Less than 12 months | ||
Gross Unrealized Losses | (2,051) | (15,852) |
Estimated Fair Value | 81,109 | 232,546 |
12 months or more | ||
Gross Unrealized Losses | (22,489) | (11,948) |
Estimated Fair Value | 236,226 | 92,883 |
Total | ||
Gross Unrealized Losses | (24,540) | (27,800) |
Estimated Fair Value | $ 317,335 | $ 325,429 |
Investments - Maturity Table (D
Investments - Maturity Table (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 2,524,634 | $ 2,554,332 |
Estimated Fair Value | 2,315,978 | $ 2,342,089 |
2023 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 25,000 | |
Estimated Fair Value | 24,767 | |
2024 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 699,111 | |
Estimated Fair Value | 677,812 | |
2025 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 298,564 | |
Estimated Fair Value | 285,252 | |
2026 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 548,563 | |
Estimated Fair Value | 492,182 | |
2027 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 98,511 | |
Estimated Fair Value | 92,979 | |
2038 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 69 | |
Estimated Fair Value | 68 | |
2039 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 663 | |
Estimated Fair Value | 622 | |
2042 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,439 | |
Estimated Fair Value | 2,008 | |
2043 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,209 | |
Estimated Fair Value | 3,573 | |
2044 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,945 | |
Estimated Fair Value | 4,302 | |
2045 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,163 | |
Estimated Fair Value | 4,337 | |
2046 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,841 | |
Estimated Fair Value | 6,540 | |
2047 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,917 | |
Estimated Fair Value | 6,658 | |
2048 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,032 | |
Estimated Fair Value | 1,790 | |
2049 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15,899 | |
Estimated Fair Value | 13,366 | |
2050 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 109,845 | |
Estimated Fair Value | 82,601 | |
2051 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 156,133 | |
Estimated Fair Value | 116,543 | |
2052 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 54,219 | |
Estimated Fair Value | 44,328 | |
2053 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 163,617 | |
Estimated Fair Value | 150,202 | |
2054 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 75,509 | |
Estimated Fair Value | 67,142 | |
2055 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 90,148 | |
Estimated Fair Value | 86,125 | |
2056 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 105,584 | |
Estimated Fair Value | 104,292 | |
2058 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 48,653 | |
Estimated Fair Value | $ 48,489 |
Loans Held for Investment - Nar
Loans Held for Investment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Jul. 01, 2006 | Jun. 30, 2006 | Sep. 30, 1993 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Percent of private loans indexed to LIBOR | 35% | 35% | 45% | |||||
Tier 1 of government guarantee (at least) | 97% | 97% | 97% | |||||
Tier 2 of government guarantee | 98% | |||||||
Tier 3 of government guarantee | 100% | |||||||
Gain on sales of loans, net | $ (5) | $ 74,978 | $ 124,740 | $ 324,856 | ||||
Estimated weighted average life of student loans | 5 years | 5 years | ||||||
Private Education Loans | ||||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||||
Gain on sales of loans, net | $ 128,000 | 325,000 | ||||||
Proceeds from sale of loans receivable | 2,100,000 | 3,290,000 | ||||||
Net proceeds from sales of loans held for investment, principal | 1,960,000 | 3,080,000 | ||||||
Net proceeds from sales of loans held for investment, capitalized interest | $ 144,000 | $ 213,000 |
Loans Held for Investment - Stu
Loans Held for Investment - Student Loan Portfolio by Program (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Allowance for credit losses | $ (1,416,048) | $ (1,364,716) | $ (1,357,075) | $ (1,194,238) | $ (1,081,066) | $ (1,165,335) |
Private Education Loans, net | 20,899,181 | 19,626,868 | ||||
Private Education Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan type | 21,680,867 | 20,303,688 | ||||
Deferred origination costs and unamortized premium/(discount) | 78,673 | 69,656 | ||||
Allowance for credit losses | (1,411,232) | (1,353,631) | ||||
Private Education Loans, net | 20,348,308 | 19,019,713 | ||||
Private Education Loans | Fixed-rate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan type | 14,000,110 | 11,108,079 | ||||
Private Education Loans | Variable-rate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan type | 7,680,757 | 9,195,609 | ||||
FFELP Loans | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loan type | 554,309 | 609,050 | ||||
Deferred origination costs and unamortized premium/(discount) | 1,380 | 1,549 | ||||
Allowance for credit losses | (4,816) | (3,444) | ||||
Private Education Loans, net | $ 550,873 | $ 607,155 |
Loans Held for Investment - S_2
Loans Held for Investment - Student Loan Portfolio Average Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average Balance | $ 21,213,165 | $ 20,614,487 | $ 21,615,968 | $ 21,359,026 |
Private Education Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average Balance | $ 20,649,663 | $ 19,958,763 | $ 21,032,541 | $ 20,685,372 |
Weighted Average Interest Rate | 10.96% | 9.43% | 10.80% | 8.82% |
FFELP Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average Balance | $ 563,502 | $ 655,724 | $ 583,427 | $ 673,654 |
Weighted Average Interest Rate | 7.35% | 5.03% | 7.10% | 4.18% |
Loans Held for Sale (Details)
Loans Held for Sale (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2023 | Jun. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for sale | $ 0 | $ 0 | $ 29,448 | |||
Loss on sale of loan | 5 | $ (74,978) | (124,740) | $ (324,856) | ||
Credit Cards | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans held for sale | $ 0 | $ 0 | $ 29,000 | |||
Financing receivable allowance for credit loss, transfer to held-to-sale | 2,400 | |||||
Charge-off | $ 1,500 | |||||
Loss on sale of loan | $ 4,000 |
Allowance for Credit Losses - A
Allowance for Credit Losses - Allowance and Recorded Investments in Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Allowance for Credit Losses | |||||
Beginning balance | $ 1,364,716 | $ 1,081,066 | $ 1,357,075 | $ 1,165,335 | $ 1,165,335 |
Transfer from unfunded commitment liability | 101,687 | 168,377 | 278,388 | 303,591 | |
Provision for current period | 45,089 | 97,550 | 199,084 | 171,218 | |
Loan sale reduction to provision | (50,226) | (136,531) | (171,325) | ||
Loans transferred from held-for-sale | (2,372) | (2,372) | |||
Total provisions | 45,089 | 44,952 | 62,553 | (2,479) | |
Net charge-offs: | |||||
Charge-offs | (105,137) | (111,559) | (315,353) | (302,624) | |
Recoveries | 9,693 | 11,402 | 33,385 | 30,415 | |
Net charge-offs | (95,444) | (100,157) | (281,968) | (272,209) | |
Ending Balance | 1,416,048 | 1,194,238 | 1,416,048 | 1,194,238 | 1,357,075 |
Allowance | |||||
Ending balance: collectively evaluated for impairment | 1,416,048 | 1,194,238 | 1,416,048 | 1,194,238 | |
Loans | |||||
Ending balance: collectively evaluated for impairment | 22,235,176 | 20,748,077 | 22,235,176 | 20,748,077 | |
Accrued Interest to be Capitalized | |||||
Ending balance: collectively evaluated for impairment | 1,283,388 | 1,056,983 | 1,283,388 | 1,056,983 | |
Other impacts to the provisions for credit losses | 666 | (304) | 2,225 | 373 | |
Provisions for credit losses reported in consolidated statements of income | 198,023 | 207,598 | 329,864 | 336,193 | |
FFELP Loans | |||||
Allowance for Credit Losses | |||||
Beginning balance | 4,422 | 3,929 | 3,444 | 4,077 | 4,077 |
Transfer from unfunded commitment liability | 0 | 0 | 0 | 0 | |
Provision for current period | 666 | 29 | 2,225 | 110 | |
Loan sale reduction to provision | 0 | 0 | 0 | ||
Loans transferred from held-for-sale | 0 | 0 | |||
Total provisions | 666 | 29 | 2,225 | 110 | |
Net charge-offs: | |||||
Charge-offs | (272) | (147) | (853) | (376) | |
Recoveries | 0 | 0 | 0 | 0 | |
Net charge-offs | (272) | (147) | (853) | (376) | |
Ending Balance | 4,816 | 3,811 | 4,816 | 3,811 | 3,444 |
Allowance | |||||
Ending balance: collectively evaluated for impairment | 4,816 | 3,811 | 4,816 | 3,811 | |
Loans | |||||
Ending balance: collectively evaluated for impairment | 554,309 | 643,614 | 554,309 | 643,614 | |
Accrued Interest to be Capitalized | |||||
Ending balance: collectively evaluated for impairment | $ 0 | $ 0 | $ 0 | $ 0 | |
Net charge-offs as a percentage of average loans in repayment (annualized) | 0.25% | 0.11% | 0.26% | 0.09% | |
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized | 0.87% | 0.59% | 0.87% | 0.59% | |
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment | 1.15% | 0.78% | 1.15% | 0.78% | |
Allowance coverage of net charge-offs (annualized) | 4.43 | 6.48 | 4.23 | 7.60 | |
Ending total loans, gross | $ 554,309 | $ 643,614 | $ 554,309 | $ 643,614 | |
Average loans in repayment | 428,028 | 518,226 | 440,716 | 532,275 | |
Ending loans in repayment | 418,022 | 489,920 | 418,022 | 489,920 | |
Accrued interest to be capitalized on loans in repayment | 0 | 0 | 0 | 0 | |
Other impacts to the provisions for credit losses | 666 | 29 | 2,225 | 110 | |
Private Education Loans | |||||
Allowance for Credit Losses | |||||
Beginning balance | 1,360,294 | 1,074,744 | 1,353,631 | 1,158,977 | 1,158,977 |
Transfer from unfunded commitment liability | 101,687 | 168,377 | 278,388 | 303,591 | |
Provision for current period | 44,423 | 95,482 | 196,859 | 168,473 | |
Loan sale reduction to provision | (50,226) | (136,531) | (171,325) | ||
Loans transferred from held-for-sale | 0 | 0 | |||
Total provisions | 44,423 | 45,256 | 60,328 | (2,852) | |
Net charge-offs: | |||||
Charge-offs | (104,865) | (109,350) | (314,500) | (299,699) | |
Recoveries | 9,693 | 11,400 | 33,385 | 30,410 | |
Net charge-offs | (95,172) | (97,950) | (281,115) | (269,289) | |
Ending Balance | 1,411,232 | 1,190,427 | 1,411,232 | 1,190,427 | 1,353,631 |
Allowance | |||||
Ending balance: collectively evaluated for impairment | 1,411,232 | 1,190,427 | 1,411,232 | 1,190,427 | |
Loans | |||||
Ending balance: collectively evaluated for impairment | 21,680,867 | 20,104,463 | 21,680,867 | 20,104,463 | |
Accrued Interest to be Capitalized | |||||
Ending balance: collectively evaluated for impairment | $ 1,283,388 | $ 1,056,983 | $ 1,283,388 | $ 1,056,983 | |
Net charge-offs as a percentage of average loans in repayment (annualized) | 2.53% | 2.67% | 2.44% | 2.37% | |
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized | 6.15% | 5.63% | 6.15% | 5.63% | |
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment | 8.84% | 7.98% | 8.84% | 7.98% | |
Allowance coverage of net charge-offs (annualized) | 3.71 | 3.04 | 3.77 | 3.32 | |
Ending total loans, gross | $ 21,680,867 | $ 20,104,463 | $ 21,680,867 | $ 20,104,463 | |
Average loans in repayment | 15,023,993 | 14,674,437 | 15,358,596 | 15,173,465 | |
Ending loans in repayment | 15,505,145 | 14,546,556 | 15,505,145 | 14,546,556 | |
Accrued interest to be capitalized on loans in repayment | 464,807 | 371,388 | 464,807 | 371,388 | |
Provisions for loan losses | 44,423 | 45,256 | 60,328 | (2,852) | |
Provisions for unfunded loan commitments | 152,934 | 162,646 | 267,311 | 338,672 | |
Total Private Education Loan provisions for credit losses | $ 197,357 | 207,902 | $ 327,639 | 335,820 | |
Credit Cards | |||||
Allowance for Credit Losses | |||||
Beginning balance | 2,393 | 2,281 | $ 2,281 | ||
Transfer from unfunded commitment liability | 0 | 0 | |||
Provision for current period | 2,039 | 2,635 | |||
Loan sale reduction to provision | 0 | 0 | |||
Loans transferred from held-for-sale | (2,372) | (2,372) | |||
Total provisions | (333) | 263 | |||
Net charge-offs: | |||||
Charge-offs | (2,062) | (2,549) | |||
Recoveries | 2 | 5 | |||
Net charge-offs | (2,060) | (2,544) | |||
Ending Balance | 0 | 0 | |||
Allowance | |||||
Ending balance: collectively evaluated for impairment | 0 | 0 | |||
Loans | |||||
Ending balance: collectively evaluated for impairment | 0 | 0 | |||
Accrued Interest to be Capitalized | |||||
Ending balance: collectively evaluated for impairment | $ 0 | $ 0 | |||
Net charge-offs as a percentage of average loans in repayment (annualized) | 0% | 0% | |||
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized | 0% | 0% | |||
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment | 0% | 0% | |||
Allowance coverage of net charge-offs (annualized) | 0 | 0 | |||
Ending total loans, gross | $ 0 | $ 0 | |||
Average loans in repayment | 0 | 0 | |||
Ending loans in repayment | 0 | 0 | |||
Accrued interest to be capitalized on loans in repayment | 0 | 0 | |||
Other impacts to the provisions for credit losses | $ (333) | $ 263 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narrative (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 USD ($) | Sep. 30, 2023 USD ($) termChange payment | Sep. 30, 2022 USD ($) | Jul. 01, 2006 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable allowance period decrease | $ 6,000,000 | |||
Negative provisions for loan sale | $ 50,226,000 | $ 136,531,000 | $ 171,325,000 | |
Interest rate offered to borrowers facing financial difficulty, period | 2 years | |||
Number of term changes | termChange | 2 | |||
Criteria for loans to be considered as nonperforming (greater than) | 90 days | |||
Tier 1 of government guarantee (at least) | 97% | 97% | ||
Maximum amount of forbearance granted | 12 months | |||
Number of monthly payments required by a borrower between successive grants of forbearance | payment | 12 | |||
Threshold period for payment default | 60 days | |||
Period of loans past due that have accrued interest | 90 days | |||
Monthly payment that is smaller than the interest accrued on the loan in that month | $ 25 | |||
Private Education Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Negative provisions for loan sale | 50,226,000 | 136,531,000 | 171,325,000 | |
Loans sold | $ 2,100,000,000 | 3,290,000,000 | ||
Threshold period when delinquent loans are written off | 120 days | |||
FFELP Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Negative provisions for loan sale | $ 0 | $ 0 | $ 0 | |
Percentage of FFELP loans insured and guaranteed (at least) | 97% | |||
Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest rate offered to borrowers facing financial difficulty | 4% | |||
Increments in which forbearance is granted | 2 months | |||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Increments in which forbearance is granted | 1 month |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Amortized Cost Basis of Financing Receivables with Loan Modifications (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Interest Rate Reduction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 16,620 | $ 9,750 | $ 39,263 | $ 25,065 |
% of Total Class of Financing Receivable | 0.07% | 0.05% | 0.17% | 0.12% |
Combination - Interest Rate Reduction and Term Extension | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 90,193 | $ 79,765 | $ 254,639 | $ 237,588 |
% of Total Class of Financing Receivable | 0.39% | 0.40% | 1.10% | 1.18% |
Private Education Loans | Interest Rate Reduction | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 16,620 | $ 9,750 | $ 39,263 | $ 25,065 |
% of Total Class of Financing Receivable | 0.07% | 0.05% | 0.17% | 0.12% |
Private Education Loans | Interest Rate Reduction | Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average contractual rate | 13.57% | 11.31% | 13.29% | 10.76% |
Private Education Loans | Interest Rate Reduction | Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average contractual rate | 4% | 4% | 4% | 4% |
Private Education Loans | Combination - Interest Rate Reduction and Term Extension | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 90,193 | $ 79,765 | $ 254,639 | $ 237,588 |
% of Total Class of Financing Receivable | 0.39% | 0.40% | 1.10% | 1.18% |
Weighted average life of loans | 10 years 2 months 19 days | 10 years 2 months 26 days | 10 years 2 months 26 days | 10 years 4 months 17 days |
Private Education Loans | Combination - Interest Rate Reduction and Term Extension | Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average contractual rate | 13.12% | 10.87% | 12.84% | 10.17% |
Private Education Loans | Combination - Interest Rate Reduction and Term Extension | Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Average contractual rate | 4% | 4% | 4% | 4% |
Allowance for Credit Losses -_3
Allowance for Credit Losses - Amortized Cost Basis of Financing Receivables that Subsequently Defaulted (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Modified Loans | $ 293,902 | $ 326,116 | |||
60 Days or Greater Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Modified Loans | $ 14,546 | $ 9,467 | 26,449 | $ 12,660 | |
Payment Default | 14,129 | 9,289 | 27,672 | 12,463 | |
Charge-Offs | 4,534 | 1,801 | 6,428 | 1,861 | |
Combination - Interest Rate Reduction and Term Extension | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Modified Loans | 12,400 | 8,500 | 23,000 | 11,400 | |
Interest Rate Reduction | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Modified Loans | 2,100 | 1,000 | 3,400 | 1,200 | |
Private Education Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Modified Loans | 293,902 | $ 326,116 | |||
Private Education Loans | 60 Days or Greater Past Due | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Modified Loans | 14,546 | 9,467 | 26,449 | 12,660 | |
Payment Default | 14,129 | 9,289 | 27,672 | 12,463 | |
Charge-Offs | $ 4,534 | $ 1,801 | $ 6,428 | $ 1,861 |
Allowance for Credit Losses - P
Allowance for Credit Losses - Payment Status (Amortized Cost Basis) (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | $ 293,902 | $ 326,116 |
Deferment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 5,140 | 7,698 |
Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 266,090 | 289,134 |
30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 10,137 | 13,859 |
60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 5,565 | 8,809 |
90 Days or Greater Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 6,970 | 6,616 |
Private Education Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 293,902 | 326,116 |
Private Education Loans | Deferment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 5,140 | 7,698 |
Private Education Loans | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 266,090 | 289,134 |
Private Education Loans | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 10,137 | 13,859 |
Private Education Loans | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 5,565 | 8,809 |
Private Education Loans | 90 Days or Greater Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | $ 6,970 | $ 6,616 |
Allowance for Credit Losses - L
Allowance for Credit Losses - Loan Portfolio Stratified by Key Credit Quality Indicators (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
% of Balance | |||||
Current period gross charge-offs, total | $ 105,137 | $ 111,559 | $ 315,353 | $ 302,624 | |
Current period recoveries, total | 9,693 | 11,402 | 33,385 | 30,415 | |
Current period net charge-offs, total | 95,444 | $ 100,157 | 281,968 | $ 272,209 | |
Consumer Portfolio Segment | Student Loan | |||||
% of Balance | |||||
Current period gross charge-offs, Year 1 | (614) | $ (2,224) | |||
Current period gross charge-offs, Year 2 | (17,832) | (25,698) | |||
Current period gross charge-offs, Year 3 | (52,861) | (48,271) | |||
Current period gross charge-offs, Year 4 | (38,251) | (62,071) | |||
Current period gross charge-offs, Year 5 | (39,710) | (57,505) | |||
Current period gross charge-offs, After Year 5 | (165,232) | (231,647) | |||
Current period gross charge-offs, total | 314,500 | 427,416 | |||
Current period recoveries, Year 1 | 76 | 124 | |||
Current period recoveries, Year 2 | 1,278 | 1,841 | |||
Current period recoveries, Year 3 | 4,802 | 4,170 | |||
Current period recoveries, Year 4 | 3,522 | 5,556 | |||
Current period recoveries, Year 5 | 3,923 | 5,407 | |||
Current period recoveries, After Year 5 | 19,784 | 24,639 | |||
Current period recoveries, total | 33,385 | 41,737 | |||
Current period net charge-offs, Year 1 | (538) | (2,100) | |||
Current period net charge-offs, Year 2 | (16,554) | (23,857) | |||
Current period recoveries, Year 3 | (48,059) | (44,101) | |||
Current period recoveries, Year 4 | (34,729) | (56,515) | |||
Current period recoveries, Year 5 | (35,787) | (52,098) | |||
Current period recoveries, After Year 5 | (145,448) | (207,008) | |||
Current period net charge-offs, total | 281,115 | 385,679 | |||
Total accrued interest by origination vintage, Year 1 | 94,292 | 94,292 | 142,915 | ||
Total accrued interest by origination vintage, Year 2 | 407,226 | 407,226 | 315,308 | ||
Total accrued interest by origination vintage, Year 3 | 328,076 | 328,076 | 207,858 | ||
Total accrued interest by origination vintage, Year 4 | 186,063 | 186,063 | 184,832 | ||
Total accrued interest by origination vintage, Year 5 | 150,655 | 150,655 | 116,211 | ||
Total accrued interest by origination vintage, After Year 5 | 262,913 | 262,913 | 210,438 | ||
Total accrued interest by origination vintage | 1,429,225 | 1,429,225 | 1,177,562 | ||
Consumer Portfolio Segment | Student Loan | With and without cosigners | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | 3,730,485 | 3,730,485 | 4,276,533 | ||
Year 2 | 5,421,538 | 5,421,538 | 4,547,159 | ||
Year 3 | 3,363,703 | 3,363,703 | 2,584,622 | ||
Year 4 | 1,991,433 | 1,991,433 | 2,172,660 | ||
Year 5 | 1,749,067 | 1,749,067 | 1,615,842 | ||
After Year 5 | 5,424,641 | 5,424,641 | 5,106,872 | ||
Loan type | $ 21,680,867 | $ 21,680,867 | $ 20,303,688 | ||
% of Balance | |||||
Total in percent | 100% | 100% | 100% | ||
Consumer Portfolio Segment | Student Loan | With cosigner | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 3,262,857 | $ 3,262,857 | $ 3,656,111 | ||
Year 2 | 4,710,256 | 4,710,256 | 3,941,921 | ||
Year 3 | 2,894,829 | 2,894,829 | 2,208,033 | ||
Year 4 | 1,686,843 | 1,686,843 | 1,853,619 | ||
Year 5 | 1,480,270 | 1,480,270 | 1,402,828 | ||
After Year 5 | 4,860,436 | 4,860,436 | 4,626,491 | ||
Loan type | $ 18,895,491 | $ 18,895,491 | $ 17,689,003 | ||
% of Balance | |||||
Private education loans | 87% | 87% | 87% | ||
Consumer Portfolio Segment | Student Loan | Without cosigner | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 467,628 | $ 467,628 | $ 620,422 | ||
Year 2 | 711,282 | 711,282 | 605,238 | ||
Year 3 | 468,874 | 468,874 | 376,589 | ||
Year 4 | 304,590 | 304,590 | 319,041 | ||
Year 5 | 268,797 | 268,797 | 213,014 | ||
After Year 5 | 564,205 | 564,205 | 480,381 | ||
Loan type | $ 2,785,376 | $ 2,785,376 | $ 2,614,685 | ||
% of Balance | |||||
Private education loans | 13% | 13% | 13% | ||
Consumer Portfolio Segment | Student Loan | FICO at Origination | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 3,730,485 | $ 3,730,485 | $ 4,276,533 | ||
Year 2 | 5,421,538 | 5,421,538 | 4,547,159 | ||
Year 3 | 3,363,703 | 3,363,703 | 2,584,622 | ||
Year 4 | 1,991,433 | 1,991,433 | 2,172,660 | ||
Year 5 | 1,749,067 | 1,749,067 | 1,615,842 | ||
After Year 5 | 5,424,641 | 5,424,641 | 5,106,872 | ||
Loan type | $ 21,680,867 | $ 21,680,867 | $ 20,303,688 | ||
% of Balance | |||||
Total in percent | 100% | 100% | 100% | ||
Consumer Portfolio Segment | Student Loan | FICO at Origination | Less than 670 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 278,407 | $ 278,407 | $ 326,991 | ||
Year 2 | 418,966 | 418,966 | 307,646 | ||
Year 3 | 236,903 | 236,903 | 158,606 | ||
Year 4 | 127,660 | 127,660 | 177,098 | ||
Year 5 | 146,011 | 146,011 | 143,674 | ||
After Year 5 | 481,014 | 481,014 | 439,587 | ||
Loan type | $ 1,688,961 | $ 1,688,961 | $ 1,553,602 | ||
% of Balance | |||||
Private education loans at origination | 8% | 8% | 8% | ||
Consumer Portfolio Segment | Student Loan | FICO at Origination | 670-699 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 530,255 | $ 530,255 | $ 593,216 | ||
Year 2 | 752,093 | 752,093 | 611,649 | ||
Year 3 | 455,895 | 455,895 | 356,541 | ||
Year 4 | 278,207 | 278,207 | 339,685 | ||
Year 5 | 275,056 | 275,056 | 259,142 | ||
After Year 5 | 929,262 | 929,262 | 878,426 | ||
Loan type | $ 3,220,768 | $ 3,220,768 | $ 3,038,659 | ||
% of Balance | |||||
Private education loans at origination | 15% | 15% | 15% | ||
Consumer Portfolio Segment | Student Loan | FICO at Origination | 700-749 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 1,150,877 | $ 1,150,877 | $ 1,336,765 | ||
Year 2 | 1,690,871 | 1,690,871 | 1,440,510 | ||
Year 3 | 1,067,755 | 1,067,755 | 834,819 | ||
Year 4 | 645,549 | 645,549 | 719,777 | ||
Year 5 | 584,322 | 584,322 | 537,680 | ||
After Year 5 | 1,830,206 | 1,830,206 | 1,722,068 | ||
Loan type | $ 6,969,580 | $ 6,969,580 | $ 6,591,619 | ||
% of Balance | |||||
Private education loans at origination | 32% | 32% | 32% | ||
Consumer Portfolio Segment | Student Loan | FICO at Origination | Greater than or equal to 750 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 1,770,946 | $ 1,770,946 | $ 2,019,561 | ||
Year 2 | 2,559,608 | 2,559,608 | 2,187,354 | ||
Year 3 | 1,603,150 | 1,603,150 | 1,234,656 | ||
Year 4 | 940,017 | 940,017 | 936,100 | ||
Year 5 | 743,678 | 743,678 | 675,346 | ||
After Year 5 | 2,184,159 | 2,184,159 | 2,066,791 | ||
Loan type | $ 9,801,558 | $ 9,801,558 | $ 9,119,808 | ||
% of Balance | |||||
Private education loans at origination | 45% | 45% | 45% | ||
Consumer Portfolio Segment | Student Loan | FICO Refreshed | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 3,730,485 | $ 3,730,485 | $ 4,276,533 | ||
Year 2 | 5,421,538 | 5,421,538 | 4,547,159 | ||
Year 3 | 3,363,703 | 3,363,703 | 2,584,622 | ||
Year 4 | 1,991,433 | 1,991,433 | 2,172,660 | ||
Year 5 | 1,749,067 | 1,749,067 | 1,615,842 | ||
After Year 5 | 5,424,641 | 5,424,641 | 5,106,872 | ||
Loan type | $ 21,680,867 | $ 21,680,867 | $ 20,303,688 | ||
% of Balance | |||||
Total in percent | 100% | 100% | 100% | ||
Consumer Portfolio Segment | Student Loan | FICO Refreshed | Less than 670 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 353,491 | $ 353,491 | $ 443,868 | ||
Year 2 | 605,817 | 605,817 | 461,589 | ||
Year 3 | 387,375 | 387,375 | 242,310 | ||
Year 4 | 218,261 | 218,261 | 237,105 | ||
Year 5 | 214,908 | 214,908 | 204,894 | ||
After Year 5 | 807,495 | 807,495 | 773,324 | ||
Loan type | $ 2,587,347 | $ 2,587,347 | $ 2,363,090 | ||
% of Balance | |||||
Private education loans at origination | 12% | 12% | 12% | ||
Consumer Portfolio Segment | Student Loan | FICO Refreshed | 670-699 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 528,071 | $ 528,071 | $ 594,118 | ||
Year 2 | 733,990 | 733,990 | 579,784 | ||
Year 3 | 422,792 | 422,792 | 284,244 | ||
Year 4 | 211,964 | 211,964 | 240,999 | ||
Year 5 | 187,283 | 187,283 | 173,754 | ||
After Year 5 | 607,515 | 607,515 | 564,344 | ||
Loan type | $ 2,691,615 | $ 2,691,615 | $ 2,437,243 | ||
% of Balance | |||||
Private education loans at origination | 12% | 12% | 12% | ||
Consumer Portfolio Segment | Student Loan | FICO Refreshed | 700-749 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 1,144,110 | $ 1,144,110 | $ 1,322,558 | ||
Year 2 | 1,602,766 | 1,602,766 | 1,378,910 | ||
Year 3 | 980,859 | 980,859 | 748,368 | ||
Year 4 | 553,576 | 553,576 | 628,060 | ||
Year 5 | 486,058 | 486,058 | 449,701 | ||
After Year 5 | 1,469,715 | 1,469,715 | 1,388,090 | ||
Loan type | $ 6,237,084 | $ 6,237,084 | $ 5,915,687 | ||
% of Balance | |||||
Private education loans at origination | 29% | 29% | 29% | ||
Consumer Portfolio Segment | Student Loan | FICO Refreshed | Greater than or equal to 750 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 1,704,813 | $ 1,704,813 | $ 1,915,989 | ||
Year 2 | 2,478,965 | 2,478,965 | 2,126,876 | ||
Year 3 | 1,572,677 | 1,572,677 | 1,309,700 | ||
Year 4 | 1,007,632 | 1,007,632 | 1,066,496 | ||
Year 5 | 860,818 | 860,818 | 787,493 | ||
After Year 5 | 2,539,916 | 2,539,916 | 2,381,114 | ||
Loan type | $ 10,164,821 | $ 10,164,821 | $ 9,587,668 | ||
% of Balance | |||||
Private education loans at origination | 47% | 47% | 47% | ||
Consumer Portfolio Segment | Student Loan | Seasoning | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 3,730,485 | $ 3,730,485 | $ 4,276,533 | ||
Year 2 | 5,421,538 | 5,421,538 | 4,547,159 | ||
Year 3 | 3,363,703 | 3,363,703 | 2,584,622 | ||
Year 4 | 1,991,433 | 1,991,433 | 2,172,660 | ||
Year 5 | 1,749,067 | 1,749,067 | 1,615,842 | ||
After Year 5 | 5,424,641 | 5,424,641 | 5,106,872 | ||
Loan type | $ 21,680,867 | $ 21,680,867 | $ 20,303,688 | ||
% of Balance | |||||
Total in percent | 100% | 100% | 100% | ||
Consumer Portfolio Segment | Student Loan | Seasoning | 1-12 payments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 2,016,589 | $ 2,016,589 | $ 2,448,884 | ||
Year 2 | 2,187,876 | 2,187,876 | 636,073 | ||
Year 3 | 414,530 | 414,530 | 384,334 | ||
Year 4 | 232,959 | 232,959 | 330,316 | ||
Year 5 | 201,057 | 201,057 | 235,878 | ||
After Year 5 | 379,107 | 379,107 | 424,636 | ||
Loan type | $ 5,432,118 | $ 5,432,118 | $ 4,460,121 | ||
% of Balance | |||||
Seasoning based on monthly scheduled payments due from 1-12 payments | 25% | 25% | 22% | ||
Consumer Portfolio Segment | Student Loan | Seasoning | 13-24 payments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 0 | $ 0 | $ 0 | ||
Year 2 | 1,114,686 | 1,114,686 | 2,477,764 | ||
Year 3 | 1,380,064 | 1,380,064 | 255,510 | ||
Year 4 | 183,885 | 183,885 | 195,753 | ||
Year 5 | 186,471 | 186,471 | 166,045 | ||
After Year 5 | 459,239 | 459,239 | 455,782 | ||
Loan type | $ 3,324,345 | $ 3,324,345 | $ 3,550,854 | ||
% of Balance | |||||
Seasoning based on monthly scheduled payments due from 13 - 24 payments | 15% | 15% | 18% | ||
Consumer Portfolio Segment | Student Loan | Seasoning | 25-36 payments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 0 | $ 0 | $ 0 | ||
Year 2 | 0 | 0 | 0 | ||
Year 3 | 643,381 | 643,381 | 1,366,398 | ||
Year 4 | 753,256 | 753,256 | 257,534 | ||
Year 5 | 120,744 | 120,744 | 126,223 | ||
After Year 5 | 487,209 | 487,209 | 489,157 | ||
Loan type | $ 2,004,590 | $ 2,004,590 | $ 2,239,312 | ||
% of Balance | |||||
Seasoning based on monthly scheduled payments due from 25 - 36 payments | 9% | 9% | 11% | ||
Consumer Portfolio Segment | Student Loan | Seasoning | 37-48 payments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 0 | $ 0 | $ 0 | ||
Year 2 | 0 | 0 | 0 | ||
Year 3 | 0 | 0 | 127 | ||
Year 4 | 410,918 | 410,918 | 1,008,418 | ||
Year 5 | 696,040 | 696,040 | 224,805 | ||
After Year 5 | 471,110 | 471,110 | 451,102 | ||
Loan type | $ 1,578,068 | $ 1,578,068 | $ 1,684,452 | ||
% of Balance | |||||
Seasoning based on monthly scheduled payments due from 37 - 48 payments | 7% | 7% | 8% | ||
Consumer Portfolio Segment | Student Loan | Seasoning | More than 48 payments | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 0 | $ 0 | $ 0 | ||
Year 2 | 0 | 0 | 0 | ||
Year 3 | 0 | 0 | 0 | ||
Year 4 | 40 | 40 | 0 | ||
Year 5 | 263,792 | 263,792 | 643,611 | ||
After Year 5 | 3,116,035 | 3,116,035 | 2,830,285 | ||
Loan type | $ 3,379,867 | $ 3,379,867 | $ 3,473,896 | ||
% of Balance | |||||
Seasoning based on monthly scheduled payments due from more than 48 payments | 16% | 16% | 17% | ||
Consumer Portfolio Segment | Student Loan | Seasoning | Not yet in repayment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Year 1 | $ 1,713,896 | $ 1,713,896 | $ 1,827,649 | ||
Year 2 | 2,118,976 | 2,118,976 | 1,433,322 | ||
Year 3 | 925,728 | 925,728 | 578,253 | ||
Year 4 | 410,375 | 410,375 | 380,639 | ||
Year 5 | 280,963 | 280,963 | 219,280 | ||
After Year 5 | 511,941 | 511,941 | 455,910 | ||
Loan type | $ 5,961,879 | $ 5,961,879 | $ 4,895,053 | ||
% of Balance | |||||
Seasoning based on monthly scheduled payments due from not yet in repayment | 28% | 28% | 24% |
Allowance for Credit Losses -_4
Allowance for Credit Losses - Age Analysis of Past Due Loans Delinquencies (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Private Education Loans allowance for losses | $ (1,416,048) | $ (1,364,716) | $ (1,357,075) | $ (1,194,238) | $ (1,081,066) | $ (1,165,335) |
Private Education Loans, net | $ 20,899,181 | $ 19,626,868 | ||||
Percentage of Private Education Loans in repayment, Year 1 | 53.90% | 56.90% | ||||
Percentage of Private Education Loans in repayment, Year 2 | 60.40% | 67.10% | ||||
Percentage of Private Education Loans in repayment, Year 3 | 71.60% | 76.10% | ||||
Percentage of Private Education Loans in repayment, Year 4 | 78.30% | 80.70% | ||||
Percentage of Private Education Loans in repayment, Year 5 | 82.50% | 84.50% | ||||
Percentage of Private Education Loans in repayment, After Year 5 | 88.60% | 89.30% | ||||
Percentage of Private Education Loans in repayment | 71.50% | 74.50% | ||||
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, Year 1 | 0.30% | 0.90% | ||||
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, Year 2 | 1.70% | 1.90% | ||||
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, Year 3 | 3.40% | 3.10% | ||||
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, Year 4 | 3.70% | 4% | ||||
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, Year 5 | 4.20% | 4.70% | ||||
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, After Year 5 | 6.30% | 6.50% | ||||
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment | 3.70% | 3.80% | ||||
Loans in forbearance as a percentage of loans in repayment and forbearance, Year 1 | 0.20% | 0.70% | ||||
Loans in forbearance as a percentage of loans in repayment and forbearance, Year 2 | 0.90% | 2.10% | ||||
Loans in forbearance as a percentage of loans in repayment and forbearance, Year 3 | 1.20% | 1.90% | ||||
Loans in forbearance as a percentage of loans in repayment and forbearance, Year 4 | 1.40% | 2.10% | ||||
Loans in forbearance as a percentage of loans in repayment and forbearance, Year 5 | 1.70% | 2.20% | ||||
Loans in forbearance as a percentage of loans in repayment and forbearance, After Year 5 | 2.10% | 2% | ||||
Loans in forbearance as a percentage of loans in repayment and forbearance | 1.40% | 1.80% | ||||
Consumer Portfolio Segment | Student Loan | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Private Education Loans in Repayment, Year 1 | $ 2,012,005 | $ 2,432,838 | ||||
Total Private Education Loans in Repayment, Year 2 | 3,273,815 | 3,049,477 | ||||
Total Private Education Loans in Repayment, Year 3 | 2,408,846 | 1,967,756 | ||||
Total Private Education Loans in Repayment, Year 4 | 1,559,204 | 1,754,219 | ||||
Total Private Education Loans in Repayment, Year 5 | 1,443,549 | 1,365,979 | ||||
Total Private Education Loans in Repayment, After Year 5 | 4,807,726 | 4,559,281 | ||||
Total Private Education Loans in repayment | 15,505,145 | 15,129,550 | ||||
Total Private Education Loans, gross, Year 1 | 3,730,485 | 4,276,533 | ||||
Total Private Education Loans, gross, Year 2 | 5,421,538 | 4,547,159 | ||||
Total Private Education Loans, gross, Year 3 | 3,363,703 | 2,584,622 | ||||
Total Private Education Loans, gross, Year 4 | 1,991,433 | 2,172,660 | ||||
Total Private Education Loans, gross, Year 5 | 1,749,067 | 1,615,842 | ||||
Total Private Education Loans, gross, After Year 5 | 5,424,641 | 5,106,872 | ||||
Total Private Education Loans, gross | 21,680,867 | 20,303,688 | ||||
Private Education Loans deferred origination costs and unamortized premium/(discount), Year 1 | 26,268 | 26,714 | ||||
Private Education Loans deferred origination costs and unamortized premium/(discount), Year 2 | 21,367 | 15,933 | ||||
Private Education Loans deferred origination costs and unamortized premium/(discount), Year 3 | 11,090 | 9,062 | ||||
Private Education Loans deferred origination costs and unamortized premium/(discount), Year 4 | 6,555 | 5,496 | ||||
Private Education Loans deferred origination costs and unamortized premium/(discount), Year 5 | 3,993 | 3,575 | ||||
Private Education Loans deferred origination costs and unamortized premium/(discount), After Year 5 | 9,400 | 8,876 | ||||
Private Education Loans deferred origination costs and unamortized premium/(discount) | 78,673 | 69,656 | ||||
Total Private Education Loans, Year 1 | 3,756,753 | 4,303,247 | ||||
Total Private Education Loans, Year 2 | 5,442,905 | 4,563,092 | ||||
Total Private Education Loans, Year 3 | 3,374,793 | 2,593,684 | ||||
Total Private Education Loans, Year 4 | 1,997,988 | 2,178,156 | ||||
Total Private Education Loans, Year 5 | 1,753,060 | 1,619,417 | ||||
Total Private Education Loans, After Year 5 | 5,434,041 | 5,115,748 | ||||
Total Private Education Loans | 21,759,540 | 20,373,344 | ||||
Private Education Loans allowance for losses, Year 1 | (220,113) | (304,943) | ||||
Private Education Loans allowance for losses, Year 2 | (361,902) | (323,506) | ||||
Private Education Loans allowance for losses, Year 3 | (227,021) | (181,915) | ||||
Private Education Loans allowance for losses, Year 4 | (134,487) | (141,424) | ||||
Private Education Loans allowance for losses, Year 5 | (111,946) | (101,023) | ||||
Private Education Loans allowance for losses, After Year 5 | (355,763) | (300,820) | ||||
Private Education Loans allowance for losses | (1,411,232) | (1,353,631) | ||||
Private Education Loans, net, Year 1 | 3,536,640 | 3,998,304 | ||||
Private Education Loans, net, Year 2 | 5,081,003 | 4,239,586 | ||||
Private Education Loans, net, Year 3 | 3,147,772 | 2,411,769 | ||||
Private Education Loans, net, Year 4 | 1,863,501 | 2,036,732 | ||||
Private Education Loans, net, Year 5 | 1,641,114 | 1,518,394 | ||||
Private Education Loans, net, After Year 5 | 5,078,278 | 4,814,928 | ||||
Private Education Loans, net | 20,348,308 | 19,019,713 | ||||
Consumer Portfolio Segment | Student Loan | Loan delinquent, current | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year 1 | 2,005,363 | 2,411,441 | ||||
Year 2 | 3,218,301 | 2,991,839 | ||||
Year 3 | 2,327,629 | 1,907,574 | ||||
Year 4 | 1,500,801 | 1,683,986 | ||||
Year 5 | 1,382,249 | 1,301,809 | ||||
After Year 5 | 4,504,119 | 4,262,698 | ||||
Loan type | 14,938,462 | 14,559,347 | ||||
Consumer Portfolio Segment | Student Loan | Loan delinquent 30-59 days | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year 1 | 4,272 | 14,164 | ||||
Year 2 | 32,282 | 30,740 | ||||
Year 3 | 41,945 | 30,877 | ||||
Year 4 | 28,901 | 35,213 | ||||
Year 5 | 30,468 | 31,366 | ||||
After Year 5 | 145,753 | 144,948 | ||||
Loan type | 283,621 | 287,308 | ||||
Consumer Portfolio Segment | Student Loan | Loan delinquent 60-89 days | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year 1 | 1,788 | 5,523 | ||||
Year 2 | 15,013 | 15,056 | ||||
Year 3 | 22,612 | 14,433 | ||||
Year 4 | 16,566 | 18,201 | ||||
Year 5 | 16,311 | 16,697 | ||||
After Year 5 | 81,159 | 77,595 | ||||
Loan type | 153,449 | 147,505 | ||||
Consumer Portfolio Segment | Student Loan | Loan delinquent 90 days or greater past due | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year 1 | 582 | 1,710 | ||||
Year 2 | 8,219 | 11,842 | ||||
Year 3 | 16,660 | 14,872 | ||||
Year 4 | 12,936 | 16,819 | ||||
Year 5 | 14,521 | 16,107 | ||||
After Year 5 | 76,695 | 74,040 | ||||
Loan type | 129,613 | 135,390 | ||||
Loans In-School/Grace/Deferment | Consumer Portfolio Segment | Student Loan | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Year 1 | 1,713,896 | 1,827,649 | ||||
Year 2 | 2,118,976 | 1,433,322 | ||||
Year 3 | 925,728 | 578,253 | ||||
Year 4 | 410,375 | 380,639 | ||||
Year 5 | 280,963 | 219,280 | ||||
After Year 5 | 511,941 | 455,910 | ||||
Loan type | 5,961,879 | 4,895,053 | ||||
Loans In Forbearance | Consumer Portfolio Segment | Student Loan | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Total Private Education Loans in forbearance, Year 1 | 4,584 | 16,046 | ||||
Total Private Education Loans in forbearance, Year 2 | 28,747 | 64,360 | ||||
Total Private Education Loans in forbearance, Year 3 | 29,129 | 38,613 | ||||
Total Private Education Loans in forbearance, Year 4 | 21,854 | 37,802 | ||||
Total Private Education Loans in forbearance, Year 5 | 24,555 | 30,583 | ||||
Total Private Education Loans in forbearance, After Year 5 | 104,974 | 91,681 | ||||
Total Private Education Loans in forbearance | $ 213,843 | $ 279,085 |
Allowance for Credit Losses -_5
Allowance for Credit Losses - Accrued Interest Receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Receivables [Abstract] | ||
Total Interest Receivable | $ 1,429,225 | $ 1,177,562 |
90 Days or Greater Past Due | 6,756 | 6,609 |
Allowance for Uncollectible Interest | 8,516 | 8,121 |
Accrued interest receivable not expected to be capitalized | 146,000 | 240,000 |
Accrued interest receivable expected to be capitalized reserved | $ 1,300,000 | $ 937,000 |
Unfunded Loan Commitments (Deta
Unfunded Loan Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Credit Loss [Abstract] | ||||
Contractual obligation | $ 2,400,000 | $ 2,400,000 | ||
Allowance | ||||
Beginning balance | 62,600 | $ 113,525 | 124,924 | $ 72,713 |
Provision/New commitments - net | 115,605 | 192,559 | 220,303 | 339,705 |
Other provision items | 37,329 | (29,913) | 47,008 | (1,033) |
Transfer - funded loans | (101,687) | (168,377) | (278,388) | (303,591) |
Ending balance | 113,847 | 107,794 | 113,847 | 107,794 |
Unfunded Commitments | ||||
Beginning balance | 1,562,856 | 1,413,840 | 1,995,808 | 1,776,976 |
Provision/New commitments - net | 3,258,234 | 3,148,434 | 5,912,418 | 5,584,129 |
Other provision items | 0 | 0 | 0 | 0 |
Transfer - funded loans | (2,451,203) | (2,345,348) | (5,538,339) | (5,144,179) |
Ending balance | $ 2,369,887 | $ 2,216,926 | $ 2,369,887 | $ 2,216,926 |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 56,000 | $ 56,000 | ||
Acquired intangible assets amortization expense | 2,834 | $ 2,328 | 7,351 | $ 5,478 |
Expected amortization, remainder of 2023 | 10,000 | 10,000 | ||
Expected amortization of 2024 | 12,000 | 12,000 | ||
Expected amortization of 2025 | 11,000 | 11,000 | ||
Expected amortization of 2026 | 10,000 | 10,000 | ||
Expected amortization of 2027 | $ 8,000 | $ 8,000 |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost Basis | $ 86,750 | $ 75,400 |
Accumulated Amortization | (15,130) | (7,779) |
Net | $ 71,620 | 67,621 |
Nitro | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average useful life of acquired intangible assets | 9 years 6 months | |
Scholly, Inc. | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average useful life of acquired intangible assets | 3 years 10 months 24 days | |
Tradename and trademarks | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 9 years 6 months | |
Cost Basis | $ 74,510 | 68,470 |
Accumulated Amortization | (11,093) | (5,706) |
Net | 63,417 | 62,764 |
Tradename and trademarks | Scholly, Inc. | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net | $ 6,000 | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 4 years 7 months 6 days | |
Cost Basis | $ 8,920 | 5,670 |
Accumulated Amortization | (3,268) | (1,723) |
Net | 5,652 | 3,947 |
Customer relationships | Scholly, Inc. | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net | $ 3,000 | |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 3 years 6 months | |
Cost Basis | $ 2,590 | 1,260 |
Accumulated Amortization | (720) | (350) |
Net | 1,870 | 910 |
Developed technology | Scholly, Inc. | ||
Finite-Lived Intangible Assets [Line Items] | ||
Net | $ 1,000 | |
Partner relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 2 years 6 months | |
Cost Basis | $ 730 | 0 |
Accumulated Amortization | (49) | 0 |
Net | $ 681 | $ 0 |
Deposits - Summary of Total Dep
Deposits - Summary of Total Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Banking and Thrift, Other Disclosure [Abstract] | ||
Deposits - interest-bearing | $ 21,550,108 | $ 21,446,647 |
Deposits - non-interest-bearing | 637 | 1,424 |
Total deposits | $ 21,550,745 | $ 21,448,071 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Banking and Thrift, Other Disclosure [Abstract] | |||||
Deposits | $ 21,550,745 | $ 21,550,745 | $ 21,448,071 | ||
Brokered deposits | 10,400,000 | 10,400,000 | 9,900,000 | ||
Retail and other deposits | 11,200,000 | 11,200,000 | 11,500,000 | ||
Stable interest-bearing deposits, total | 7,500,000 | 7,500,000 | 8,000,000 | ||
Brokered deposit placement fee | 3,000 | $ 3,000 | 9,000 | $ 10,000 | |
Third party broker fees paid | 4,000 | $ 4,000 | 7,000 | $ 8,000 | |
Deposits exceeding FDIC insurance limits | 494,000 | 494,000 | 615,000 | ||
Accrued interest on deposits | $ 73,000 | $ 73,000 | $ 59,000 |
Deposits - Interest Bearing Dep
Deposits - Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Amount | ||
Money market | $ 10,241,232 | $ 10,977,242 |
Savings | 930,590 | 982,586 |
Certificates of deposit | 10,378,286 | 9,486,819 |
Deposits - interest bearing | $ 21,550,108 | $ 21,446,647 |
Qtr.-End Weighted Average Stated Rate | ||
Money market | 4.75% | 3.75% |
Savings | 4.35% | 3.15% |
Certificates of deposit | 3.58% | 2.57% |
Deposits - Schedule of Remainin
Deposits - Schedule of Remaining Maturities of Certificates of Deposit (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Banking and Thrift, Other Disclosure [Abstract] | ||
One year or less | $ 3,436,186 | $ 3,224,573 |
After one year to two years | 4,079,381 | 2,954,257 |
After two years to three years | 2,359,064 | 1,904,919 |
After three years to four years | 248,301 | 1,031,881 |
After four years to five years | 255,354 | 324,375 |
After five years | 0 | 46,814 |
Total | $ 10,378,286 | $ 9,486,819 |
Borrowings - Company Borrowings
Borrowings - Company Borrowings (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Short-Term | $ 0 | $ 0 |
Long-Term | 5,515,532 | 5,235,114 |
Total | 5,515,532 | 5,235,114 |
Unsecured borrowings | ||
Debt Instrument [Line Items] | ||
Short-Term | 0 | 0 |
Long-Term | 991,396 | 988,986 |
Total | 991,396 | 988,986 |
Secured Borrowings | ||
Debt Instrument [Line Items] | ||
Short-Term | 0 | 0 |
Long-Term | 4,524,136 | 4,246,128 |
Total | 4,524,136 | 4,246,128 |
Secured Borrowings | Private Education Loan term securitizations | ||
Debt Instrument [Line Items] | ||
Short-Term | 0 | 0 |
Long-Term | 4,524,136 | 4,246,128 |
Total | 4,524,136 | 4,246,128 |
Secured Borrowings | Secured Borrowing Facility | ||
Debt Instrument [Line Items] | ||
Short-Term | 0 | 0 |
Long-Term | 0 | 0 |
Total | 0 | 0 |
Secured Borrowings | Fixed-rate | Private Education Loan term securitizations | ||
Debt Instrument [Line Items] | ||
Short-Term | 0 | 0 |
Long-Term | 3,807,493 | 3,462,363 |
Total | 3,807,493 | 3,462,363 |
Secured Borrowings | Variable-rate | Private Education Loan term securitizations | ||
Debt Instrument [Line Items] | ||
Short-Term | 0 | 0 |
Long-Term | 716,643 | 783,765 |
Total | $ 716,643 | $ 783,765 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) | 9 Months Ended | 12 Months Ended | ||||||
Aug. 16, 2023 | May 24, 2023 | Mar. 15, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | May 16, 2023 | |
Line of Credit Facility [Line Items] | ||||||||
Estimated weighted average life of student loans | 5 years | 5 years | ||||||
Vertical risk retention interest | 5% | 5% | ||||||
Uncommitted federal funds | $ 125,000,000 | $ 125,000,000 | $ 125,000,000 | |||||
Lendable value of collateral | 1,600,000,000 | 1,600,000,000 | 1,600,000,000 | $ 2,200,000,000 | ||||
ABCP borrowings | Secured Borrowings | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Secured borrowing facility maximum borrowing capacity | $ 2,000,000,000 | |||||||
Residual interest percentage of facility trust | 100% | |||||||
Secured borrowings outstanding | 0 | 0 | 0 | $ 0 | ||||
2023-A | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Private education loan term accounted for as a secured financing | $ 579,000,000 | |||||||
Loans sold to third parties | $ 579,000,000 | |||||||
Ownership interest percentage on asset-backed financing | 100% | |||||||
Unsecured debt issued | $ 572,000,000 | |||||||
Estimated weighted average life of student loans | 5 years 21 days | |||||||
Loans pledged as collateral | 609,000,000 | 609,000,000 | 609,000,000 | |||||
Principal amount of collateral | 563,000,000 | 563,000,000 | 563,000,000 | |||||
Capitalized interest | 46,000,000 | 46,000,000 | 46,000,000 | |||||
2023-A | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.53% | |||||||
2023-C | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Private education loan term accounted for as a secured financing | $ 568,000,000 | |||||||
Loans sold to third parties | $ 568,000,000 | |||||||
Ownership interest percentage on asset-backed financing | 100% | |||||||
Unsecured debt issued | $ 568,000,000 | |||||||
Estimated weighted average life of student loans | 4 years 11 months 4 days | |||||||
Loans pledged as collateral | 637,000,000 | 637,000,000 | 637,000,000 | |||||
Principal amount of collateral | 590,000,000 | 590,000,000 | 590,000,000 | |||||
Capitalized interest | $ 47,000,000 | $ 47,000,000 | $ 47,000,000 | |||||
2023-C | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Basis spread on variable rate | 1.69% | |||||||
2023-B | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Vertical risk retention interest | 5% | |||||||
2023-B | Student Loan | ||||||||
Line of Credit Facility [Line Items] | ||||||||
Private education loans sold | $ 2,000,000,000 | |||||||
Additional proceeds from sale | 105,000,000 | |||||||
Gain on sale | $ 5,000,000 |
Borrowings - Secured Financing
Borrowings - Secured Financing (Details) - USD ($) | 1 Months Ended | ||||
Aug. 31, 2023 | Mar. 31, 2023 | Aug. 31, 2022 | Sep. 30, 2023 | Dec. 31, 2022 | |
Securities Financing Transaction [Line Items] | |||||
Total Issued | $ 1,147,000,000 | $ 575,000,000 | |||
Total loans and accrued interest amount securitized at inception | 1,292,507,000 | $ 674,387,000 | |||
2022-C | |||||
Securities Financing Transaction [Line Items] | |||||
Total Issued | $ 575,000,000 | ||||
Weighted Average Life (in years) | 4 years 8 months 8 days | ||||
2022-C | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Securities Financing Transaction [Line Items] | |||||
Weighted Average Cost of Funds (as a percent) | 1.76% | ||||
2023-A | |||||
Securities Financing Transaction [Line Items] | |||||
Total Issued | $ 579,000,000 | ||||
Weighted Average Life (in years) | 5 years 21 days | ||||
Principal amount of collateral | 563,000,000 | ||||
Capitalized interest | 46,000,000 | ||||
2023-A | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Securities Financing Transaction [Line Items] | |||||
Weighted Average Cost of Funds (as a percent) | 1.53% | ||||
2023-C | |||||
Securities Financing Transaction [Line Items] | |||||
Total Issued | $ 568,000,000 | ||||
Weighted Average Life (in years) | 4 years 11 months 4 days | ||||
Principal amount of collateral | 590,000,000 | ||||
Capitalized interest | 47,000,000 | ||||
2023-C | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||||
Securities Financing Transaction [Line Items] | |||||
Weighted Average Cost of Funds (as a percent) | 1.69% | ||||
Private Education Loans Securitized in 2022 | |||||
Securities Financing Transaction [Line Items] | |||||
Loans | 565,000,000 | ||||
Principal amount of collateral | 527,000,000 | ||||
Capitalized interest | 38,000,000 | ||||
Private Education Loans Securitized In 2023 | |||||
Securities Financing Transaction [Line Items] | |||||
Loans | 1,240,000,000 | ||||
Principal amount of collateral | 1,150,000,000 | ||||
Capitalized interest | $ 94,000,000 |
Borrowings - Financing VIEs (De
Borrowings - Financing VIEs (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Debt Outstanding | |||
Short-Term | $ 0 | $ 0 | |
Long-Term | 5,515,532 | 5,235,114 | |
Total | 5,515,532 | 5,235,114 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Restricted Cash | 175,061 | 156,719 | $ 177,917 |
Other Assets | 46,787 | 34,073 | |
Total assets | 29,273,219 | 28,811,029 | |
Variable Interest Entity, Primary Beneficiary | |||
Debt Outstanding | |||
Short-Term | 0 | 0 | |
Long-Term | 4,524,136 | 4,246,128 | |
Total | 4,524,136 | 4,246,128 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Loans | 5,776,779 | 5,433,602 | |
Restricted Cash | 174,757 | 156,719 | |
Other Assets | 359,987 | 287,159 | |
Total assets | 6,311,523 | 5,877,480 | |
Variable Interest Entity, Primary Beneficiary | Private Education Loan term securitizations | |||
Debt Outstanding | |||
Short-Term | 0 | 0 | |
Long-Term | 4,524,136 | 4,246,128 | |
Total | 4,524,136 | 4,246,128 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Loans | 5,776,779 | 5,433,602 | |
Restricted Cash | 174,757 | 156,719 | |
Other Assets | 358,220 | 286,093 | |
Total assets | 6,309,756 | 5,876,414 | |
Variable Interest Entity, Primary Beneficiary | Secured Borrowing Facility | |||
Debt Outstanding | |||
Short-Term | 0 | 0 | |
Long-Term | 0 | 0 | |
Total | 0 | 0 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Loans | 0 | 0 | |
Restricted Cash | 0 | 0 | |
Other Assets | 1,767 | 1,066 | |
Total assets | $ 1,767 | $ 1,066 |
Borrowings - Summary of Exposur
Borrowings - Summary of Exposure Related To Unconsolidated VIEs (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||||||
Estimated Fair Value | $ 2,315,978 | $ 2,342,089 | ||||
Total Exposure | 113,847 | $ 62,600 | 124,924 | $ 107,794 | $ 113,525 | $ 72,713 |
Variable Interest Entity, Not Primary Beneficiary | Private Education Loan term securitizations | ||||||
Debt Instrument [Line Items] | ||||||
Estimated Fair Value | 389,006 | 329,188 | ||||
Equity Interests | 52,561 | 50,786 | ||||
Total Exposure | $ 441,567 | $ 379,974 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) | 9 Months Ended | |
Sep. 30, 2023 USD ($) counterparty | Dec. 31, 2022 USD ($) | |
Derivative [Line Items] | ||
Number of central counterparties | counterparty | 2 | |
Notional value | $ 1,931,320,000 | $ 2,842,846,000 |
Derivative, fair value, amount offset against collateral, net | 11,000,000 | 12,000,000 |
Estimated accumulated other comprehensive income to be reclassified in next 12 months | 46,000,000 | |
Cash collateral held relative to derivative exposure | 0 | 0 |
Cash collateral pledged | 11,000,000 | $ 11,000,000 |
CME | ||
Derivative [Line Items] | ||
Notional value | $ 1,800,000,000 | |
Percent of total notional derivative contracts | 91.70% | |
Amount of variation margin included as settlement | $ (50,000,000) | |
LCH | ||
Derivative [Line Items] | ||
Notional value | $ 100,000,000 | |
Percent of total notional derivative contracts | 8.30% | |
Amount of variation margin included as settlement | $ (6,000,000) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Impact of Derivatives on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 0 | $ 405 |
Derivative liabilities | (251) | 0 |
Total net derivatives | (251) | 405 |
Trading | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivatives | 0 | 0 |
Cash Flow Hedges | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivatives | (268) | 972 |
Fair Value Hedges | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivatives | 17 | (567) |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 17 | 972 |
Derivative liabilities | (268) | (567) |
Interest rate swaps | Trading | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | 0 | 0 |
Interest rate swaps | Cash Flow Hedges | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 972 |
Derivative liabilities | (268) | 0 |
Interest rate swaps | Fair Value Hedges | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 17 | 0 |
Derivative liabilities | $ 0 | $ (567) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Other Assets | ||
Gross position | $ 17 | $ 972 |
Impact of master netting agreement | (17) | (567) |
Derivative values with impact of master netting agreements (as carried on balance sheet) | 0 | 405 |
Cash collateral pledged | 11,087 | 11,162 |
Net position | 11,087 | 11,567 |
Other Liabilities | ||
Gross position | (268) | (567) |
Impact of master netting agreement | 17 | 567 |
Derivative values with impact of master netting agreements (as carried on balance sheet) | (251) | 0 |
Cash collateral pledged | 0 | 0 |
Net position | $ (251) | $ 0 |
Derivative Financial Instrume_6
Derivative Financial Instruments - Notional Values (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Notional Values | $ 1,931,320 | $ 2,842,846 |
Trading | ||
Derivatives, Fair Value [Line Items] | ||
Notional Values | 0 | 0 |
Cash Flow | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Values | 1,229,011 | 1,314,660 |
Fair Value | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Values | 702,309 | 1,528,186 |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Values | 1,931,320 | 2,842,846 |
Interest rate swaps | Trading | ||
Derivatives, Fair Value [Line Items] | ||
Notional Values | 0 | 0 |
Interest rate swaps | Cash Flow | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Values | 1,229,011 | 1,314,660 |
Interest rate swaps | Fair Value | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Values | $ 702,309 | $ 1,528,186 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Schedule of Hedged Items Recorded in Statement of Financial Position (Details) - Deposits - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivatives, Fair Value [Line Items] | ||
Carrying Amount of the Hedged Assets/(Liabilities) | $ (681,292) | $ (1,494,087) |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | $ 20,755 | $ 31,259 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Cash Flow Hedges | ||||
Interest expense | $ 267,622 | $ 150,401 | $ 747,426 | $ 340,630 |
Trading | ||||
Total | $ 6,031 | $ 706 | $ 15,923 | $ 20,140 |
Derivative, Gain (Loss), Statement of Income or Comprehensive Income [Extensible Enumeration] | Gains (losses) on derivatives and hedging activities, net | Gains (losses) on derivatives and hedging activities, net | Gains (losses) on derivatives and hedging activities, net | Gains (losses) on derivatives and hedging activities, net |
Designated as Hedging Instrument | ||||
Fair Value Hedges | ||||
Interest recognized on derivatives | $ (6,701) | $ (1,783) | $ (19,086) | $ 24,418 |
Hedged items recorded in interest expense | (4,346) | 14,143 | (10,504) | 86,899 |
Derivatives recorded in interest expense | 4,265 | (14,425) | 10,596 | (86,896) |
Trading | ||||
Total | (6,782) | (2,065) | (18,994) | 24,421 |
Designated as Hedging Instrument | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Reclassification out of Accumulated Other Comprehensive Income | ||||
Cash Flow Hedges | ||||
Interest expense | 12,813 | 2,771 | 34,917 | (4,033) |
Trading | ||||
Trading | ||||
Change in fair value of future interest payments recorded in earnings | 0 | 0 | 0 | (248) |
Total | $ 0 | $ 0 | $ 0 | $ (248) |
Derivative Financial Instrume_9
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statement of Changes in Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||
Amount of gain (loss) recognized in other comprehensive income (loss) | $ 7,046 | $ 32,594 | $ 21,726 | $ 94,215 |
Less: amount of gain (loss) reclassified in interest expense | 12,813 | 2,771 | 34,917 | (4,033) |
Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit | $ (5,767) | $ 29,823 | $ (13,191) | $ 98,248 |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Repurchased (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Equity [Abstract] | ||||
Common stock repurchased (in shares) | 0 | 1,191,544 | 16,389,696 | 30,721,944 |
Average purchase price per share (in dollars per share) | $ 0 | $ 14.14 | $ 15.71 | $ 18 |
Shares repurchased related to employee stock-based compensation plans (in shares) | 10,687 | 448 | 1,088,330 | 1,131,351 |
Average purchase price per share (in dollars per share) | $ 16.14 | $ 13.99 | $ 15.45 | $ 18.36 |
Common shares issued (in shares) | 200,886 | 4,682 | 3,073,639 | 3,093,392 |
Remaining authority under the share repurchase program | $ 326 | $ 326 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Jan. 26, 2022 | Oct. 31, 2021 | Jan. 27, 2021 | |
Class of Stock [Line Items] | |||||||||
Common stock dividend (in dollars per share) | $ 0.11 | $ 0.11 | |||||||
Common stock repurchased (in shares) | 0 | 1,191,544 | 16,389,696 | 30,721,944 | |||||
Remaining authority under the share repurchase program | $ 326 | $ 326 | $ 326 | ||||||
Common Stock | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock closing price (in dollars per share) | $ 13.62 | $ 13.62 | $ 13.62 | ||||||
Common Stock | 2021 Share Repurchase Program | |||||||||
Class of Stock [Line Items] | |||||||||
Aggregate purchase price (not to exceed) | $ 1,500 | $ 1,250 | |||||||
Increase in amount of common stock that may be repurchased | $ 250 | ||||||||
Common stock repurchased (in shares) | 2,000,000 | ||||||||
Common stock repurchased, amount | $ 38 | ||||||||
Common Stock | 2022 Share Repurchase Program | |||||||||
Class of Stock [Line Items] | |||||||||
Aggregate purchase price (not to exceed) | $ 1,250 | ||||||||
Common stock repurchased (in shares) | 0 | 1,200,000 | 16,400,000 | 28,700,000 | |||||
Common stock repurchased, amount | $ 17 | $ 257 | $ 515 | ||||||
Remaining authority under the share repurchase program | $ 326 | $ 326 | $ 326 | ||||||
Common Stock | Rule 10b5-1 Trading Plan | |||||||||
Class of Stock [Line Items] | |||||||||
Common stock repurchased (in shares) | 0 | 1,200,000 | 16,400,000 | 30,700,000 | |||||
Common stock repurchased, amount | $ 17 | $ 257 | $ 553 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator: | ||||
Net income | $ 29,365 | $ 75,172 | $ 412,948 | $ 546,057 |
Preferred stock dividends | 4,642 | 2,531 | 12,979 | 5,563 |
Net income attributable to SLM Corporation common stock | 24,723 | 72,641 | 399,969 | 540,494 |
Net income attributable to SLM Corporation common stock | $ 24,723 | $ 72,641 | $ 399,969 | $ 540,494 |
Denominator: | ||||
Weighted average shares used to compute basic EPS (in shares) | 226,120 | 251,266 | 234,170 | 263,098 |
Effect of dilutive securities: | ||||
Dilutive effect of stock options, restricted stock, restricted stock units and Employee Stock Purchase Plan (ESPP) (in shares) | 2,680 | 2,450 | 2,423 | 2,967 |
Weighted average shares used to compute diluted EPS (in shares) | 228,800 | 253,716 | 236,593 | 266,065 |
Basic earnings per common share (in dollars per share) | $ 0.11 | $ 0.29 | $ 1.71 | $ 2.05 |
Diluted earnings per common share (in dollars per share) | $ 0.11 | $ 0.29 | $ 1.69 | $ 2.03 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 1,000 | 1,000 | 1,000 | 1,000 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation of Financial Instruments That are Marked-to-Market on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Assets: | ||
Trading investments | $ 52,561 | $ 55,903 |
Available-for-sale investments | 2,315,978 | 2,342,089 |
Derivative instruments | $ 0 | $ 405 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Liabilities: | ||
Derivative instruments | $ (251) | $ 0 |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Fair Value Measurements on a Recurring Basis | ||
Assets: | ||
Trading investments | $ 52,561 | $ 55,903 |
Available-for-sale investments | 2,315,978 | 2,342,089 |
Derivative instruments | 17 | 972 |
Total earning assets | 2,368,556 | 2,398,964 |
Liabilities: | ||
Derivative instruments | (268) | (567) |
Fair Value Measurements on a Recurring Basis | Level 1 | ||
Assets: | ||
Trading investments | 0 | 0 |
Available-for-sale investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Total earning assets | 0 | 0 |
Liabilities: | ||
Derivative instruments | 0 | 0 |
Fair Value Measurements on a Recurring Basis | Level 2 | ||
Assets: | ||
Trading investments | 0 | 0 |
Available-for-sale investments | 2,315,978 | 2,342,089 |
Derivative instruments | 17 | 972 |
Total earning assets | 2,315,995 | 2,343,061 |
Liabilities: | ||
Derivative instruments | (268) | (567) |
Fair Value Measurements on a Recurring Basis | Level 3 | ||
Assets: | ||
Trading investments | 52,561 | 55,903 |
Available-for-sale investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Total earning assets | 52,561 | 55,903 |
Liabilities: | ||
Derivative instruments | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values of Financial Assets and Liabilities, Including Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Earning assets: | ||
Loans held for sale | $ 0 | $ 0 |
Trading investments | 52,561 | 55,903 |
Accrued interest receivable, difference | 40,833 | 35,015 |
Tax indemnification receivable | 409,658 | 380,058 |
Derivative instruments | 0 | 405 |
Total earning assets, difference | 2,072,183 | 2,088,881 |
Interest-bearing liabilities: | ||
Long-term borrowings, difference | 381,875 | 421,881 |
Derivative instruments | 251 | 0 |
Total interest-bearing liabilities, difference | 669,172 | 838,340 |
Excess of net asset fair value over carrying value | 2,741,355 | 2,927,221 |
Money-market and savings accounts | ||
Interest-bearing liabilities: | ||
Deposits, difference | 110,938 | 104,979 |
Certificates of deposit | ||
Interest-bearing liabilities: | ||
Deposits, difference | 176,359 | 311,480 |
Fair Value | ||
Earning assets: | ||
Loans held for sale | 0 | 29,448 |
Cash and cash equivalents | 3,548,225 | 4,616,117 |
Trading investments | 52,561 | 55,903 |
Available-for-sale investments | 2,315,978 | 2,342,089 |
Accrued interest receivable | 1,498,156 | 1,237,074 |
Tax indemnification receivable | 2,945 | 2,816 |
Derivative instruments | 17 | 972 |
Total earning assets | 30,348,413 | 29,965,153 |
Interest-bearing liabilities: | ||
Long-term borrowings | 5,133,657 | 4,813,233 |
Accrued interest payable | 99,415 | 71,586 |
Derivative instruments | 268 | 567 |
Total interest-bearing liabilities | 26,496,151 | 25,915,574 |
Fair Value | Money-market and savings accounts | ||
Interest-bearing liabilities: | ||
Deposits | 11,060,884 | 11,854,849 |
Fair Value | Certificates of deposit | ||
Interest-bearing liabilities: | ||
Deposits | 10,201,927 | 9,175,339 |
Carrying Value | ||
Earning assets: | ||
Loans held for sale | 0 | 29,448 |
Cash and cash equivalents | 3,548,225 | 4,616,117 |
Trading investments | 52,561 | 55,903 |
Available-for-sale investments | 2,315,978 | 2,342,089 |
Accrued interest receivable | 1,457,323 | 1,202,059 |
Tax indemnification receivable | 2,945 | 2,816 |
Derivative instruments | 17 | 972 |
Total earning assets | 28,276,230 | 27,876,272 |
Interest-bearing liabilities: | ||
Long-term borrowings | 5,515,532 | 5,235,114 |
Accrued interest payable | 99,415 | 71,586 |
Derivative instruments | 268 | 567 |
Total interest-bearing liabilities | 27,165,323 | 26,753,914 |
Carrying Value | Money-market and savings accounts | ||
Interest-bearing liabilities: | ||
Deposits | 11,171,822 | 11,959,828 |
Carrying Value | Certificates of deposit | ||
Interest-bearing liabilities: | ||
Deposits | 10,378,286 | 9,486,819 |
Private Education Loans | ||
Earning assets: | ||
Loans held for investment, net, difference | 2,022,371 | 2,042,835 |
Private Education Loans | Fair Value | ||
Earning assets: | ||
Loans held for investment, net | 22,370,679 | 21,062,548 |
Private Education Loans | Carrying Value | ||
Earning assets: | ||
Loans held for investment, net | 20,348,308 | 19,019,713 |
FFELP Loans | ||
Earning assets: | ||
Loans held for investment, net, difference | 8,979 | 11,031 |
FFELP Loans | Fair Value | ||
Earning assets: | ||
Loans held for investment, net | 559,852 | 618,186 |
FFELP Loans | Carrying Value | ||
Earning assets: | ||
Loans held for investment, net | $ 550,873 | $ 607,155 |
Regulatory Capital - Narrative
Regulatory Capital - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||||||||
Jan. 01, 2020 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | Jun. 30, 2023 | Jan. 01, 2023 | Jun. 30, 2022 | Jan. 01, 2022 | Dec. 31, 2021 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||||||
Allowance for credit losses | $ 1,416,048 | $ 1,194,238 | $ 1,416,048 | $ 1,194,238 | $ 1,357,075 | $ 1,364,716 | $ 1,081,066 | $ 1,165,335 | |||
Liability for unfunded commitments | 113,847 | 107,794 | 113,847 | 107,794 | 124,924 | $ 62,600 | $ 113,525 | $ 72,713 | |||
Retained earnings | 3,485,575 | 3,485,575 | 3,163,640 | ||||||||
Unrealized loss | 158,000 | 160,000 | |||||||||
Unrealized loss, tax benefit | 51,000 | 52,000 | |||||||||
Dividends | 100,000 | $ 241,000 | 400,000 | $ 642,000 | |||||||
Adjustments | |||||||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||||||
Period of deferment | 2 years | ||||||||||
Percentage amount deferred per year | 25% | ||||||||||
Percentage amount phased in during year | 25% | 25% | |||||||||
Allowance for credit losses | $ 1,100,000 | (259,536) | (259,536) | (259,536) | |||||||
Liability for unfunded commitments | 116,000 | (26,094) | (26,094) | (26,094) | |||||||
Deferred tax asset | 306,000 | (76,542) | (76,542) | (76,542) | |||||||
Retained earnings | $ 953,000 | $ (209,088) | $ (209,088) | $ (209,088) |
Regulatory Capital - Adjusted T
Regulatory Capital - Adjusted Transition Amounts (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2021 | Jan. 01, 2020 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
Retained earnings | $ 3,485,575 | $ 3,163,640 | |||||
Allowance for credit losses | 1,416,048 | $ 1,364,716 | 1,357,075 | $ 1,194,238 | $ 1,081,066 | $ 1,165,335 | |
Liability for unfunded commitments | 113,847 | $ 62,600 | 124,924 | $ 107,794 | $ 113,525 | 72,713 | |
Adjusted Phase-In Amounts Remaining | |||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
Retained earnings | 418,175 | 836,351 | |||||
Allowance for credit losses | 519,073 | 1,038,145 | |||||
Liability for unfunded commitments | 52,189 | 104,377 | |||||
Deferred tax asset | 153,087 | $ 306,171 | |||||
Adjustments | |||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||||
Retained earnings | (209,088) | (209,088) | $ 953,000 | ||||
Allowance for credit losses | (259,536) | (259,536) | 1,100,000 | ||||
Liability for unfunded commitments | (26,094) | (26,094) | 116,000 | ||||
Deferred tax asset | $ (76,542) | $ (76,542) | $ 306,000 |
Regulatory Capital - U.S. Basel
Regulatory Capital - U.S. Basel III Regulatory Requirements (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Actual Amount | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | $ 2,935,903 | $ 3,040,662 |
Tier 1 Capital (to Risk-Weighted Assets) | 2,935,903 | 3,040,662 |
Total Capital (to Risk-Weighted Assets) | 3,258,771 | 3,338,645 |
Tier 1 Capital (to Average Assets) | $ 2,935,903 | $ 3,040,662 |
Actual Ratio | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | 11.70% | 12.90% |
Tier 1 Capital (to Risk-Weighted Assets) | 0.117 | 0.129 |
Total Capital (to Risk-Weighted Assets) | 0.129 | 0.142 |
Tier 1 Capital (to Average Assets) | 0.101 | 0.103 |
U.S. Basel III Regulatory Requirements, Amount | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | $ 1,763,562 | $ 1,645,807 |
Tier 1 Capital (to Risk-Weighted Assets) | 2,141,468 | 1,998,480 |
Total Capital (to Risk-Weighted Assets) | 2,645,343 | 2,468,711 |
Tier 1 Capital (to Average Assets) | $ 1,166,116 | $ 1,185,280 |
U.S. Basel III Regulatory Requirements, Ratio | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | 7% | 7% |
Tier 1 Capital (to Risk-Weighted Assets) | 0.085 | 0.085 |
Total Capital (to Risk-Weighted Assets) | 0.105 | 0.105 |
Tier 1 Capital (to Average Assets) | 0.040 | 0.040 |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual obligation | $ 2,400 |
Other liabilities reserve | $ 114 |
Loss emergence period | 1 year |
Subsequent Events (Details)
Subsequent Events (Details) - Private Education Loans - Subsequent Event $ in Millions | Oct. 13, 2023 USD ($) |
Subsequent Event [Line Items] | |
Sale of financing receivables | $ 1,000 |
Principal amount of financing receivables sold | 921 |
Capitalized interest amount of financing receivables sold | $ 78 |