Cover page
Cover page | 3 Months Ended |
Mar. 31, 2024 shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2024 |
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 | 220,275,834 |
Amendment Flag | false |
Document Fiscal Year Focus | 2024 |
Document Fiscal Period Focus | Q1 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Assets | ||
Cash and cash equivalents | $ 3,584,013 | $ 4,149,838 |
Investments: | ||
Trading investments at fair value (cost of $44,978 and $43,412, respectively) | 58,166 | 54,481 |
Available-for-sale investments at fair value (cost of $2,423,183 and $2,563,984, respectively) | 2,271,108 | 2,411,622 |
Other investments | 89,765 | 91,567 |
Total investments | 2,419,039 | 2,557,670 |
Loans held for investment (net of allowance for losses of $1,350,058 and $1,339,772, respectively) | 20,200,789 | 20,306,357 |
Restricted cash | 147,809 | 149,669 |
Other interest-earning assets | 7,572 | 9,229 |
Accrued interest receivable | 1,386,487 | 1,379,904 |
Premises and equipment, net | 127,414 | 129,501 |
Goodwill and acquired intangible assets, net | 67,496 | 68,711 |
Income taxes receivable, net | 277,733 | 366,247 |
Other assets | 58,930 | 52,342 |
Total assets | 28,277,282 | 29,169,468 |
Liabilities | ||
Deposits | 20,903,456 | 21,653,188 |
Long-term borrowings | 4,976,882 | 5,227,512 |
Other liabilities | 283,205 | 407,971 |
Total liabilities | 26,163,543 | 27,288,671 |
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: 440.2 million and 438.2 million shares issued, respectively | 88,032 | 87,647 |
Additional paid-in capital | 1,163,838 | 1,148,689 |
Accumulated other comprehensive loss (net of tax benefit of ($24,752) and ($24,176), respectively) | (77,291) | (75,104) |
Retained earnings | 3,884,694 | 3,624,859 |
Total SLM Corporation stockholders’ equity before treasury stock | 5,310,343 | 5,037,161 |
Less: Common stock held in treasury at cost: 219.9 million and 217.9 million shares, respectively | (3,196,604) | (3,156,364) |
Total equity | 2,113,739 | 1,880,797 |
Total liabilities and equity | $ 28,277,282 | $ 29,169,468 |
CONSOLIDATED BALANCE SHEETS (_2
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) $ in Thousands, shares in Millions | Mar. 31, 2024 | Dec. 31, 2023 |
Statement of Financial Position [Abstract] | ||
Trading investments, cost | $ 44,978 | $ 43,412 |
Available-for sale investments at fair value, cost | 2,423,183 | 2,563,984 |
Allowance for credit losses | $ 1,350,058 | $ 1,339,772 |
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) | 440.2 | 438.2 |
Tax benefit on accumulated other comprehensive loss | $ 24,752 | $ 24,176 |
Common stock held in treasury (in shares) | 219.9 | 217.9 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest income: | ||
Loans | $ 596,607 | $ 582,784 |
Investments | 14,507 | 11,331 |
Cash and cash equivalents | 52,444 | 43,483 |
Total interest income | 663,558 | 637,598 |
Interest expense: | ||
Deposits | 220,445 | 183,531 |
Interest expense on short-term borrowings | 3,562 | 3,018 |
Interest expense on long-term borrowings | 52,535 | 45,981 |
Total interest expense | 276,542 | 232,530 |
Net interest income | 387,016 | 405,068 |
Less: provisions for credit losses | 12,041 | 114,112 |
Net interest income after provisions for credit losses | 374,975 | 290,956 |
Non-interest income: | ||
Gains (losses) on sales of loans, net | 143,039 | (9) |
Gains on securities, net | 2,118 | 1,711 |
Other income | 29,001 | 20,009 |
Total non-interest income | 174,158 | 21,711 |
Operating expenses: | ||
Compensation and benefits | 96,476 | 87,649 |
FDIC assessment fees | 13,312 | 11,529 |
Other operating expenses | 50,645 | 55,361 |
Total operating expenses | 160,433 | 154,539 |
Acquired intangible assets amortization expense | 1,215 | 2,272 |
Total non-interest expenses | 161,648 | 156,811 |
Income before income tax expense | 387,485 | 155,856 |
Income tax expense | 97,554 | 37,338 |
Net income | 289,931 | 118,518 |
Preferred stock dividends | 4,653 | 4,063 |
Net income attributable to SLM Corporation common stock | $ 285,278 | $ 114,455 |
Basic earnings per common share (in dollars per share) | $ 1.29 | $ 0.47 |
Average common shares outstanding (in shares) | 220,416 | 241,497 |
Diluted earnings per common share (in dollars per share) | $ 1.27 | $ 0.47 |
Average common and common equivalent shares outstanding (in shares) | 223,845 | 243,549 |
Declared dividends per common share (in dollars per share) | $ 0.11 | $ 0.11 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 289,931 | $ 118,518 |
Other comprehensive income (loss): | ||
Unrealized gains on investments | 286 | 35,556 |
Unrealized losses on cash flow hedges | (3,049) | (14,999) |
Total unrealized gains (losses) | (2,763) | 20,557 |
Income tax (expense) benefit | 576 | (5,020) |
Other comprehensive income (loss), net of tax (expense) benefit | (2,187) | 15,537 |
Total comprehensive income | $ 287,744 | $ 134,055 |
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, 2022 | 2,510,696 | 435,121,140 | |||||||
Beginning balance (in shares) at Dec. 31, 2022 | (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 | 118,518 | 118,518 | |||||||
Other comprehensive (loss) income, net of tax | 15,537 | 15,537 | |||||||
Total comprehensive income | 134,055 | ||||||||
Cash dividends declared: | |||||||||
Common Stock | $ (26,635) | (26,635) | |||||||
Preferred Stock | $ (4,063) | $ (4,063) | |||||||
Issuance of common shares (in shares) | 2,523,744 | 2,523,744 | |||||||
Issuance of common shares | $ (3) | $ 505 | 474 | (982) | |||||
Stock-based compensation expense | $ 11,536 | 11,536 | 0 | ||||||
Common stock repurchased (in shares) | 0 | ||||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (949,431) | (949,431) | (949,431) | ||||||
Shares repurchased related to employee stock-based compensation plans | $ (14,765) | $ (14,765) | |||||||
Ending balance, shares issued (in shares) at Mar. 31, 2023 | 2,510,696 | 437,644,884 | |||||||
Ending balance (in shares) at Mar. 31, 2023 | (195,395,127) | ||||||||
Ending balance (in shares) at Mar. 31, 2023 | 242,249,757 | ||||||||
Ending balance at Mar. 31, 2023 | $ 1,827,095 | $ 251,070 | $ 87,530 | 1,121,082 | (78,333) | 3,250,478 | $ (2,804,732) | ||
Beginning balance, shares issued (in shares) at Dec. 31, 2023 | 2,510,696 | 438,230,416 | |||||||
Beginning balance (in shares) at Dec. 31, 2023 | (217,900,000) | (217,886,532) | |||||||
Beginning balance (in shares) at Dec. 31, 2023 | 220,343,884 | ||||||||
Beginning balance at Dec. 31, 2023 | $ 1,880,797 | $ 251,070 | $ 87,647 | 1,148,689 | (75,104) | 3,624,859 | $ (3,156,364) | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 289,931 | 289,931 | |||||||
Other comprehensive (loss) income, net of tax | (2,187) | (2,187) | |||||||
Total comprehensive income | 287,744 | ||||||||
Cash dividends declared: | |||||||||
Common Stock | $ (24,278) | (24,278) | |||||||
Preferred Stock | $ (4,653) | $ (4,653) | |||||||
Issuance of common shares (in shares) | 1,925,920 | 1,925,920 | |||||||
Issuance of common shares | $ 579 | $ 385 | 1,359 | (1,165) | |||||
Stock-based compensation expense | $ 13,790 | 13,790 | |||||||
Common stock repurchased (in shares) | (1,310,723) | (1,310,723) | (1,310,723) | ||||||
Common stock repurchased | $ (26,639) | $ (26,639) | |||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (683,247) | (683,247) | (683,247) | ||||||
Shares repurchased related to employee stock-based compensation plans | $ (13,601) | $ (13,601) | |||||||
Ending balance, shares issued (in shares) at Mar. 31, 2024 | 2,510,696 | 440,156,336 | |||||||
Ending balance (in shares) at Mar. 31, 2024 | (219,900,000) | (219,880,502) | |||||||
Ending balance (in shares) at Mar. 31, 2024 | 220,275,834 | ||||||||
Ending balance at Mar. 31, 2024 | $ 2,113,739 | $ 251,070 | $ 88,032 | $ 1,163,838 | $ (77,291) | $ 3,884,694 | $ (3,196,604) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Common stock dividend (in dollars per share) | $ 0.11 | $ 0.11 |
Series B Preferred Stock | ||
Preferred stock dividend rate (in dollars per share) | $ 1.85 | $ 1.62 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Operating activities | ||
Net income | $ 289,931 | $ 118,518 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provisions for credit losses | 12,041 | 114,112 |
Income tax expense | 97,554 | 37,338 |
Amortization of brokered deposit placement fee | 2,803 | 3,121 |
Amortization of Secured Borrowing Facility upfront fee | 713 | 723 |
Amortization of deferred loan origination costs and loan premium/(discounts), net | 3,229 | 3,421 |
Net amortization of discount on investments | (601) | (622) |
Increase in tax indemnification receivable | 0 | (42) |
Depreciation of premises and equipment | 4,705 | 4,524 |
Acquired intangible assets amortization expense | 1,215 | 2,272 |
Stock-based compensation expense | 13,790 | 11,536 |
Unrealized (gains) losses on derivatives and hedging activities, net | 20 | (56) |
(Gains) losses on sales of loans, net | (143,039) | 9 |
Gains on securities, net | (2,118) | (1,711) |
Other adjustments to net income, net | 2,939 | 3,063 |
Changes in operating assets and liabilities: | ||
Increase in accrued interest receivable | (287,000) | (257,888) |
Increase in non-marketable securities | (283) | 0 |
Decrease (increase) in other interest-earning assets | 1,657 | (1,869) |
Increase in other assets | (23,046) | (26,632) |
(Decrease) increase in income taxes payable, net | (6,463) | 2,483 |
(Decrease) increase in accrued interest payable | (15,738) | 20,358 |
Decrease in other liabilities | (29,020) | (23,770) |
Total adjustments | (366,642) | (109,630) |
Total net cash (used in) provided by operating activities | (76,711) | 8,888 |
Investing activities | ||
Loans acquired and originated | (2,593,293) | (2,463,358) |
Net proceeds from sales of loans held for investment and loans held for sale | 2,149,774 | (9) |
Proceeds from FFELP Loan claim payments | 10,819 | 11,274 |
Net decrease in loans held for investment and loans held for sale (other than loans acquired and originated, and loan sales) | 751,120 | 912,681 |
Purchases of available-for-sale securities | (25,790) | (4,992) |
Proceeds from sales and maturities of available-for-sale securities | 279,700 | 73,352 |
Total net cash provided by (used in) investing activities | 572,330 | (1,471,052) |
Financing activities | ||
Brokered deposit placement fee | 0 | (2,634) |
Net increase in certificates of deposit | 31,555 | 515,909 |
Net decrease in other deposits | (787,295) | (167,836) |
Borrowings collateralized by loans in securitization trusts - issued | 0 | 569,871 |
Borrowings collateralized by loans in securitization trusts - repaid | (253,176) | (293,120) |
Fees paid on Secured Borrowing Facility | 0 | (16) |
Common stock dividends paid | (24,278) | (26,635) |
Preferred stock dividends paid | (4,653) | (4,063) |
Common stock repurchased | (25,457) | (4,005) |
Total net cash (used in) provided by financing activities | (1,063,304) | 587,471 |
Net decrease in cash, cash equivalents and restricted cash | (567,685) | (874,693) |
Cash, cash equivalents and restricted cash at beginning of period | 4,299,507 | 4,772,836 |
Cash, cash equivalents and restricted cash at end of period | 3,731,822 | 3,898,143 |
Cash disbursements made for: | ||
Interest | 284,041 | 198,874 |
Income taxes paid | 7,280 | 4,700 |
Income taxes refunded | (1,001) | (7,273) |
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Balance Sheets: | ||
Cash and cash equivalents | 3,584,013 | 3,716,379 |
Restricted cash | 147,809 | 181,764 |
Total cash, cash equivalents and restricted cash | $ 3,731,822 | $ 3,898,143 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 are not necessarily indicative of the results for the year ending December 31, 2024 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, 2023 (the “2023 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. |
Investments
Investments | 3 Months Ended |
Mar. 31, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Trading Investments We periodically sell Private Education Loans (as hereinafter defined) 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 March 31, 2024 and December 31, 2023, we had $58 million and $54 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 March 31, 2024 Amortized Cost Allowance for credit losses (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale: Mortgage-backed securities $ 485,026 $ — $ 353 $ (71,171) $ 414,208 Utah Housing Corporation bonds 3,201 — — (292) 2,909 U.S. government-sponsored enterprises and Treasuries 1,396,341 — — (63,613) 1,332,728 Other securities 538,615 — 2,385 (19,737) 521,263 Total $ 2,423,183 $ — $ 2,738 $ (154,813) $ 2,271,108 As of December 31, 2023 Amortized Cost Allowance for credit losses (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale: Mortgage-backed securities $ 468,204 $ — $ 703 $ (62,480) $ 406,427 Utah Housing Corporation bonds 3,408 — — (279) 3,129 U.S. government-sponsored enterprises and Treasuries 1,645,609 — — (66,870) 1,578,739 Other securities 446,763 — 603 (24,039) 423,327 Total $ 2,563,984 $ — $ 1,306 $ (153,668) $ 2,411,622 (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 March 31, 2024: Mortgage-backed securities $ (1,650) $ 98,678 $ (69,521) $ 286,434 $ (71,171) $ 385,112 Utah Housing Corporation bonds — — (292) 2,909 (292) 2,909 U.S. government-sponsored enterprises and Treasuries — — (63,613) 1,232,727 (63,613) 1,232,727 Other securities (1,226) 63,358 (18,511) 201,538 (19,737) 264,896 Total $ (2,876) $ 162,036 $ (151,937) $ 1,723,608 $ (154,813) $ 1,885,644 As of December 31, 2023: Mortgage-backed securities $ (531) $ 51,391 $ (61,949) $ 300,318 $ (62,480) $ 351,709 Utah Housing Corporation bonds — — (279) 3,129 (279) 3,129 U.S. government-sponsored enterprises and Treasuries — — (66,870) 1,578,739 (66,870) 1,578,739 Other securities (2,221) 90,725 (21,818) 241,253 (24,039) 331,978 Total $ (2,752) $ 142,116 $ (150,916) $ 2,123,439 $ (153,668) $ 2,265,555 At March 31, 2024 and December 31, 2023, 228 of 258 and 213 of 248, 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 March 31, 2024, 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 March 31, 2024 Year of Maturity (dollars in thousands) Amortized Cost Estimated Fair Value 2024 449,757 442,325 2025 299,063 290,830 2026 548,807 504,757 2027 98,713 94,816 2038 68 68 2039 581 566 2042 2,252 1,928 2043 4,079 3,626 2044 4,467 4,047 2045 4,898 4,300 2046 7,451 6,498 2047 7,409 6,533 2048 2,008 1,923 2049 15,238 13,344 2050 106,282 83,558 2051 153,057 119,243 2052 51,825 44,160 2053 242,958 235,101 2054 86,866 79,516 2055 82,255 79,089 2056 210,422 209,947 2058 44,727 44,933 Total $ 2,423,183 $ 2,271,108 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 $578 million and $612 million par value of securities pledged to this borrowing facility at March 31, 2024 and December 31, 2023, respectively, as discussed further in Notes to Consolidated Financial Statements, Note 8, “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. At both March 31, 2024 and December 31, 2023, our total investment in these securities was $14 million. 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 $70 million at March 31, 2024 and $72 million at December 31, 2023. We are periodically required to provide additional financial support during the investment period. Our liability for these unfunded commitments was $23 million at March 31, 2024 and $30 million at December 31, 2023. Related to these investments, we recognized tax credits and other tax benefits through tax expense of $1 million at March 31, 2024 and $11 million at December 31, 2023. 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 | 3 Months Ended |
Mar. 31, 2024 | |
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”). 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 March 31, 2024 and December 31, 2023, 29 percent and 33 percent, respectively, of all of our Private Education Loans were indexed to 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 three months of 2024, we recognized $143 million in gains from the sale of approximately $2.10 billion of Private Education Loans, including $1.95 billion of principal and $151 million in capitalized interest, to an unaffiliated third party. 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 8, “Borrowings - Unconsolidated VIEs” in this Form 10-Q. There were no loan sales in the first three months of 2023. Loans held for investment are summarized as follows: March 31, December 31, (Dollars in thousands) 2024 2023 Private Education Loans: Fixed-rate $ 14,788,341 $ 13,985,791 Variable-rate 6,164,005 7,040,053 Total Private Education Loans, gross 20,952,346 21,025,844 Deferred origination costs and unamortized premium/(discount) 80,868 81,554 Allowance for credit losses (1,345,431) (1,335,105) Total Private Education Loans, net 19,687,783 19,772,293 FFELP Loans 516,363 537,401 Deferred origination costs and unamortized premium/(discount) 1,270 1,330 Allowance for credit losses (4,627) (4,667) Total FFELP Loans, net 513,006 534,064 Loans held for investment, net $ 20,200,789 $ 20,306,357 The estimated weighted average life of education loans in our portfolio was approximately 5.4 years and 5.0 years at March 31, 2024 and December 31, 2023, 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: 2024 2023 Three Months Ended March 31, (dollars in thousands) Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 21,442,744 11.01 % $ 21,755,202 10.66 % FFELP Loans 527,012 7.24 602,072 6.87 Total portfolio $ 21,969,756 $ 22,357,274 |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2024 | |
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 2023 Form 10-K for a more detailed discussion. Allowance for Credit Losses Metrics Three Months Ended March 31, 2024 (dollars in thousands) FFELP Private Education Total Allowance for Credit Losses Beginning balance $ 4,667 $ 1,335,105 $ 1,339,772 Transfer from unfunded commitment liability (1) — 131,614 131,614 Provisions: Provision for current period 83 94,476 94,559 Loan sale reduction to provision — (133,204) (133,204) Total provisions (2) 83 (38,728) (38,645) Net charge-offs: Charge-offs (123) (93,874) (93,997) Recoveries — 11,314 11,314 Net charge-offs (123) (82,560) (82,683) Ending Balance $ 4,627 $ 1,345,431 $ 1,350,058 Allowance (3) : Ending balance: collectively evaluated for impairment $ 4,627 $ 1,345,431 $ 1,350,058 Loans (3) : Ending balance: collectively evaluated for impairment $ 516,363 $ 20,952,346 $ 21,468,709 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,217,295 $ 1,217,295 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.12 % 2.14 % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.90 % 6.07 % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 1.17 % 8.74 % Allowance coverage of net charge-offs (annualized) 9.40 4.07 Ending total loans, gross $ 516,363 $ 20,952,346 Average loans in repayment (4) $ 399,680 $ 15,407,495 Ending loans in repayment (4) $ 393,820 $ 14,961,692 Accrued interest to be capitalized on loans in repayment (6) $ — $ 440,259 (1) See Note 5, “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 March 31, 2024 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ (38,728) Provisions for unfunded loan commitments 50,686 Total Private Education Loan provisions for credit losses 11,958 Other impacts to the provisions for credit losses: FFELP Loans 83 Total 83 Provisions for credit losses reported in consolidated statements of income $ 12,041 (3) For the three months ended March 31, 2024, 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 March 31, 2023 (dollars in thousands) FFELP Private Credit Cards (7) Total Allowance for Credit Losses Beginning balance $ 3,444 $ 1,353,631 $ — $ 1,357,075 Transfer from unfunded commitment liability (1) — 148,513 — 148,513 Provisions: Provision for current period 739 56,334 730 57,803 Total provisions (2) 739 56,334 730 57,803 Net charge-offs: Charge-offs (256) (95,085) (741) (96,082) Recoveries — 11,986 11 11,997 Net charge-offs (256) (83,099) (730) (84,085) Ending Balance $ 3,927 $ 1,475,379 $ — $ 1,479,306 Allowance (3) : Ending balance: collectively evaluated for impairment $ 3,927 $ 1,475,379 $ — $ 1,479,306 Loans (3) : Ending balance: collectively evaluated for impairment $ 592,318 $ 21,898,003 $ — $ 22,490,321 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,150,802 $ — $ 1,150,802 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.23 % 2.11 % — % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.66 % 6.40 % — % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 0.88 % 9.00 % — % Allowance coverage of net charge-offs (annualized) 3.83 4.44 — Ending total loans, gross $ 592,318 $ 21,898,003 $ — Average loans in repayment (4) $ 451,451 $ 15,764,143 $ — Ending loans in repayment (4) $ 446,214 $ 15,990,459 $ — Accrued interest to be capitalized on loans in repayment (6) $ — $ 408,263 $ — (1) See Note 5, “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 March 31, 2023 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ 56,334 Provisions for unfunded loan commitments 56,309 Total Private Education Loan provisions for credit losses 112,643 Other impacts to the provisions for credit losses: FFELP Loans 739 Credit Cards 730 Total 1,469 Provisions for credit losses reported in consolidated statements of income $ 114,112 (3) For the three months ended March 31, 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). (7) We use “Credit Cards” to refer to the suite of Credit Card loans that we previously held; we sold the Credit Card portfolio to a third party in May 2023. l Allowance for Credit Losses Our loss model includes forecasts of college graduate unemployment, home price index, and median family income in determining the adequacy of the allowance for credit losses. 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 March 31, 2023, December 31, 2023, and March 31, 2024, 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. Provisions for credit losses for the three months ended March 31, 2024 decreased by $102 million compared with the year-ago period. During the three months ended March 31, 2024, the provision for credit losses was primarily affected by $133 million in negative provisions recorded as a result of the $2.10 billion Private Education Loan sales during the first three months of 2024, an improved economic outlook, and changes in management overlays and recovery rates, offset by new loan commitments, net of expired commitments, and increases to the provision as a result of decreases in our estimates of the historical long-term average prepayment speeds used after the two-year reasonable and supportable period. In the year-ago quarter, the provision for credit losses was primarily affected by provisions for new loan commitments, net of expired commitments, slower prepayment rates, and changes in economic outlook and recovery rates. 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 or permanent interest rate reduction, a temporary or permanent interest rate reduction with a permanent extension of the loan term, and/or a short-term extended repayment alternative. Forbearance is granted prospectively for borrowers who are current in their payments and may be granted retroactively for certain delinquent borrowers. When we give a borrower facing financial difficulty an interest rate reduction under our programs, we evaluate their ability to pay and provide customized repayment terms based upon their financial condition. As part of demonstrating the ability and willingness to pay, the customer must make three consecutive monthly payments at the reduced payment to qualify for the program. We believe by tailoring the modification programs to the borrower’s current financial condition and not having a one size fits all approach, we increase the likelihood the borrower will be able to make the modified payments and avoid default. This approach of giving different interest rate reductions to different borrowers experiencing more severe hardship also helps us better manage the overall assistance we provide to borrowers. We currently limit the granting of a permanent extension of the final maturity date of a loan under our loan modification programs to one time over the life of the loan. We also currently permit two consecutive rate reductions so long as the borrower qualifies and makes three consecutive monthly payments at the reduced payment in connection with each rate reduction. We also now limit the number of interest rate reductions to twice over the life of the loan. 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 2023 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 under ASU No. 2022-02. 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. In the fourth quarter of 2023, we developed additional modification programs tailored to the financial condition of individual borrowers. Pursuant to these additional modification programs, for our borrowers experiencing the most severe financial conditions, we currently may reduce the contractual interest rate on a loan to as low as 2 percent for the remaining life of the loan and also permanently extend the final maturity of the loan. Other borrowers experiencing severe hardship may not require as much assistance, however, given their circumstances. In those instances, we may reduce the contractual interest rate on a loan to a rate greater than 2 percent, and up to 8 percent, for a temporary period of two As part of the additional modification programs that were launched in the fourth quarter of 2023, we also offered for a short period of time a permanent term extension with no interest rate reduction program. This program ended in the fourth quarter of 2023. The amortized cost of this program totaled $10.5 million, representing 0.05 percent of the total Private Education Loan portfolio. This program added a weighted average of 6.6 years to the life of loans in the program. As of March 31, 2024, $9.8 million of these loans were in a current or deferred status, $0.4 million of these loans were 30-59 days past due, $0.08 million of these loans were 60-89 days past due, and $0.2 million of these loans were 90 days or greater past due. For the three months ended March 31, 2024, there were $0.2 million modified loans 1 (with $0.2 million of unpaid principal balance at the time of default) in this program that defaulted within 12 months of receiving the term extension and no loans charged off within 12 months of receiving the term extension. We define payment default as 60 days past due for purposes of this disclosure. 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 March 31, 2024 (dollars in thousands) 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 $ 4,991 0.02 % $ 252,761 1.13 % Total $ 4,991 0.02 % $ 252,761 1.13 % Loan Modifications Made to Borrowers Experiencing Financial Difficulty Three Months Ended March 31, 2023 (dollars in thousands) 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 $ 12,902 0.06 % $ 81,780 0.35 % Total $ 12,902 0.06 % $ 81,780 0.35 % The following tables describe the financial effect of the modifications made to loans whose borrowers are experiencing financial difficulty: Three Months Ended March 31, 2024 Interest Rate Reduction Combination - Interest Rate Loan Type Financial Effect Loan Type Financial Effect Private Education Loans Reduced average contractual rate from 13.15% to 3.94% Private Education Loans Added a weighted average 8.59 years to the life of loans Reduced average contractual rate from 12.57% to 3.71% Three Months Ended March 31, 2023 Interest Rate Reduction Combination - Interest Rate Loan Type Financial Effect Loan Type Financial Effect Private Education Loans Reduced average contractual rate from 12.47% to 4.00% Private Education Loans Added a weighted average 10.19 years to the life of loans Reduced average contractual rate from 12.74% 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 2023 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. 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 (3) Charge-Offs (4) Modified Loans (1)(2) Payment Default (3) Charge-Offs (4) Loan Type: Private Education Loans $ 14,783 $ 14,496 $ 4,179 $ 11,624 $ 11,404 $ 4,628 Total $ 14,783 $ 14,496 $ 4,179 $ 11,624 $ 11,404 $ 4,628 (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. (2) For the three months ended March 31, 2024, the modified loans include $13.8 million of interest rate reduction and term extension loan modifications and $1.0 million of interest rate reduction only loan modifications. For the three months ended March 31, 2023, the modified loans include $10.4 million of interest rate reduction and term extension loan modifications and $1.2 million of interest rate reduction only loan modifications. (3) Represents the unpaid principal balance at the time of payment default. (4) 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-quarter 2024 and full year 2023, respectively). Payment Status (Amortized Cost Basis) At March 31, 2024 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 $ 3,313 $ 244,289 $ 5,166 $ 2,476 $ 2,508 $ 257,752 Total $ 3,313 $ 244,289 $ 5,166 $ 2,476 $ 2,508 $ 257,752 Payment Status (Amortized Cost Basis) At December 31, 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 $ 6,843 $ 334,967 $ 17,205 $ 7,689 $ 13,822 $ 380,526 Total $ 6,843 $ 334,967 $ 17,205 $ 7,689 $ 13,822 $ 380,526 (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 March 31, 2024 (dollars in thousands) Private Education Loans Held for Investment - Credit Quality Indicators Year of Origination Approval 2024 (1) 2023 (1) 2022 (1) 2021 (1) 2020 (1) 2019 and Prior (1) Total (1) % of Balance Cosigners: With cosigner $ 814,592 $ 5,130,203 $ 3,451,511 $ 2,089,098 $ 1,347,339 $ 5,440,233 $ 18,272,976 87 % Without cosigner 111,632 673,139 542,850 365,241 258,880 727,628 2,679,370 13 Total $ 926,224 $ 5,803,342 $ 3,994,361 $ 2,454,339 $ 1,606,219 $ 6,167,861 $ 20,952,346 100 % FICO at Origination Approval (2) : Less than 670 $ 61,789 $ 424,857 $ 316,552 $ 176,921 $ 105,953 $ 546,958 $ 1,633,030 8 % 670-699 129,467 816,049 553,845 332,430 226,123 1,041,796 3,099,710 15 700-749 288,936 1,783,230 1,243,850 779,798 522,793 2,082,333 6,700,940 32 Greater than or equal to 750 446,032 2,779,206 1,880,114 1,165,190 751,350 2,496,774 9,518,666 45 Total $ 926,224 $ 5,803,342 $ 3,994,361 $ 2,454,339 $ 1,606,219 $ 6,167,861 $ 20,952,346 100 % FICO Refreshed (2)(3) : Less than 670 $ 84,355 $ 669,427 $ 541,494 $ 335,868 $ 205,407 $ 951,407 $ 2,787,958 13 % 670-699 129,421 789,950 514,154 299,737 167,203 671,160 2,571,625 12 700-749 286,786 1,700,049 1,127,465 678,404 430,414 1,643,152 5,866,270 28 Greater than or equal to 750 425,662 2,643,916 1,811,248 1,140,330 803,195 2,902,142 9,726,493 47 Total $ 926,224 $ 5,803,342 $ 3,994,361 $ 2,454,339 $ 1,606,219 $ 6,167,861 $ 20,952,346 100 % Seasoning (4) : 1-12 payments $ 484,203 $ 3,024,087 $ 508,182 $ 323,857 $ 191,566 $ 433,762 $ 4,965,657 24 % 13-24 payments — 277,441 2,095,039 206,882 147,749 467,866 3,194,977 15 25-36 payments — — 156,087 1,301,243 128,581 559,089 2,145,000 10 37-48 payments — — — 80,631 798,248 529,743 1,408,622 7 More than 48 payments — — — — 71,116 3,564,277 3,635,393 17 Not yet in repayment 442,021 2,501,814 1,235,053 541,726 268,959 613,124 5,602,697 27 Total $ 926,224 $ 5,803,342 $ 3,994,361 $ 2,454,339 $ 1,606,219 $ 6,167,861 $ 20,952,346 100 % 2024 Current period (5) gross charge-offs $ (7) $ (2,683) $ (13,167) $ (14,125) $ (9,561) $ (54,331) $ (93,874) 2024 Current period (5) recoveries — 212 1,397 1,518 1,033 7,154 11,314 2024 Current period (5) net charge-offs $ (7) $ (2,471) $ (11,770) $ (12,607) $ (8,528) $ (47,177) $ (82,560) Total accrued interest by origination vintage $ 15,497 $ 281,098 $ 365,340 $ 240,093 $ 138,852 $ 317,107 $ 1,357,987 (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 first-quarter 2024. (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, 2024 through March 31, 2024. As of December 31, 2023 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 $ 3,903,676 $ 4,428,163 $ 2,516,380 $ 1,535,308 $ 1,378,699 $ 4,529,768 $ 18,291,994 87 % Without cosigner 586,443 660,576 421,042 283,781 253,601 528,407 2,733,850 13 Total $ 4,490,119 $ 5,088,739 $ 2,937,422 $ 1,819,089 $ 1,632,300 $ 5,058,175 $ 21,025,844 100 % FICO at Origination Approval (2) : Less than 670 $ 328,199 $ 395,526 $ 208,696 $ 118,935 $ 137,494 $ 451,613 $ 1,640,463 8 % 670-699 635,642 704,642 400,744 254,762 257,840 868,777 3,122,407 15 700-749 1,383,779 1,586,783 934,033 590,401 545,333 1,709,299 6,749,628 32 Greater than or equal to 750 2,142,499 2,401,788 1,393,949 854,991 691,633 2,028,486 9,513,346 45 Total $ 4,490,119 $ 5,088,739 $ 2,937,422 $ 1,819,089 $ 1,632,300 $ 5,058,175 $ 21,025,844 100 % FICO Refreshed (2)(3) : Less than 670 $ 495,451 $ 638,381 $ 379,738 $ 217,956 $ 214,665 $ 791,875 $ 2,738,066 13 % 670-699 616,684 672,777 365,674 193,462 176,963 564,245 2,589,805 12 700-749 1,347,094 1,477,310 836,747 498,414 445,244 1,361,073 5,965,882 28 Greater than or equal to 750 2,030,890 2,300,271 1,355,263 909,257 795,428 2,340,982 9,732,091 47 Total $ 4,490,119 $ 5,088,739 $ 2,937,422 $ 1,819,089 $ 1,632,300 $ 5,058,175 $ 21,025,844 100 % Seasoning (4) : 1-12 payments $ 2,514,079 $ 740,450 $ 440,293 $ 245,631 $ 208,941 $ 332,608 $ 4,482,002 21 % 13-24 payments — 2,675,956 303,045 167,532 165,577 384,760 3,696,870 18 25-36 payments — — 1,524,834 195,091 129,571 456,448 2,305,944 11 37-48 payments — — — 902,938 208,521 446,350 1,557,809 7 More than 48 payments — — — 116 706,097 2,985,015 3,691,228 18 Not yet in repayment 1,976,040 1,672,333 669,250 307,781 213,593 452,994 5,291,991 25 Total $ 4,490,119 $ 5,088,739 $ 2,937,422 $ 1,819,089 $ 1,632,300 $ 5,058,175 $ 21,025,844 100 % 2023 Current period (5) gross charge-offs $ (1,812) $ (31,032) $ (70,331) $ (49,624) $ (50,585) $ (216,711) $ (420,095) 2023 Current period (5) recoveries 172 2,342 6,496 4,923 5,260 27,175 46,368 2023 Current period (5) net charge-offs $ (1,640) $ (28,690) $ (63,835) $ (44,701) $ (45,325) $ (189,536) $ (373,727) Total accrued interest by origination vintage $ 177,959 $ 408,800 $ 269,978 $ 152,094 $ 116,618 $ 229,116 $ 1,354,565 (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 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 January 1, 2023 through December 31, 2023. Delinquencies - Private Education Loans Held for Investment 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 March 31, 2024 (dollars in thousands) 2024 2023 2022 2021 2020 2019 and Prior Total Loans in-school/grace/deferment (1) $ 442,021 $ 2,501,814 $ 1,235,053 $ 541,726 $ 268,959 $ 613,124 $ 5,602,697 Loans in forbearance (2) 1,205 34,042 115,729 69,721 42,974 124,286 387,957 Loans in repayment: Loans current 480,422 3,236,356 2,569,306 1,776,854 1,245,882 5,142,786 14,451,606 Loans delinquent 30-59 days (3) 2,576 18,739 32,476 30,460 22,553 133,231 240,035 Loans delinquent 60-89 days (3) — 7,600 20,016 17,424 12,482 76,399 133,921 Loans 90 days or greater past due (3) — 4,791 21,781 18,154 13,369 78,035 136,130 Total Private Education Loans in repayment 482,998 3,267,486 2,643,579 1,842,892 1,294,286 5,430,451 14,961,692 Total Private Education Loans, gross 926,224 5,803,342 3,994,361 2,454,339 1,606,219 6,167,861 20,952,346 Private Education Loans deferred origination costs and unamortized premium/(discount) 10,902 31,667 14,460 7,834 5,078 10,927 80,868 Total Private Education Loans 937,126 5,835,009 4,008,821 2,462,173 1,611,297 6,178,788 21,033,214 Private Education Loans allowance for losses (67,459) (354,779) (271,004) (164,549) (105,385) (382,255) (1,345,431) Private Education Loans, net $ 869,667 $ 5,480,230 $ 3,737,817 $ 2,297,624 $ 1,505,912 $ 5,796,533 $ 19,687,783 Percentage of Private Education Loans in repayment 52.1 % 56.3 % 66.2 % 75.1 % 80.6 % 88.0 % 71.4 % Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment 0.5 % 1.0 % 2.8 % 3.6 % 3.7 % 5.3 % 3.4 % Loans in forbearance as a percentage of loans in repayment and forbearance 0.2 % 1.0 % 4.2 % 3.6 % 3.2 % 2.2 % 2.5 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. Private Education Loans Held for Investment - Delinquencies by Origination Vintage As of December 31, 2023 2023 2022 2021 2020 2019 2018 and Prior Total Loans in-school/grace/deferment (1) $ 1,976,040 $ 1,672,333 $ 669,250 $ 307,781 $ 213,593 $ 452,994 $ 5,291,991 Loans in forbearance (2) 19,265 93,079 58,438 35,450 31,818 85,989 324,039 Loans in repayment: Loans current 2,469,817 3,254,534 2,131,040 1,416,069 1,323,825 4,213,986 14,809,271 Loans delinquent 30-59 days (3) 17,599 34,627 37,147 28,020 31,432 14 |
Unfunded Loan Commitments
Unfunded Loan Commitments | 3 Months Ended |
Mar. 31, 2024 | |
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 2023 Form 10-K for additional information. At March 31, 2024, we had $673 million of outstanding contractual loan commitments that 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. 2024 2023 Three Months Ended March 31, (dollars in thousands) Allowance Unfunded Commitments Allowance Unfunded Commitments Beginning Balance $ 112,962 $ 2,221,077 $ 124,924 $ 1,995,808 Provision/New commitments - net (1) 50,686 1,034,458 56,309 1,124,816 Transfer - funded loans (2) (131,614) (2,582,043) (148,513) (2,436,271) Ending Balance $ 32,034 $ 673,492 $ 32,720 $ 684,353 (1) Net of expirations of commitments unused. Also includes incremental provision for new commitments and changes to provision for existing commitments. (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 | 3 Months Ended |
Mar. 31, 2024 | |
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 Inc. (“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 both March 31, 2024 and December 31, 2023, we had $56 million in total goodwill. See Notes to Consolidated Financial Statements, Note 2, “Significant Accounting Policies — Business Combinations” in our 2023 Form 10-K for additional details on our acquisitions of Nitro and Scholly. Acquired Intangible Assets Our intangible assets include acquired trade name 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: March 31, 2024 December 31, 2023 (Dollars in thousands) Weighted Average Useful Life (in years) (1) Cost Basis Accumulated Amortization Net Cost Basis Accumulated Amortization Net Trade name and trademarks (2) 4.0 $ 6,040 $ (1,007) $ 5,033 $ 6,040 $ (629) $ 5,411 Customer relationships 4.6 8,920 (4,589) 4,331 8,920 (4,013) 4,907 Developed technology 3.5 2,590 (1,096) 1,494 2,590 (908) 1,682 Partner relationships 2.5 730 (195) 535 730 (122) 608 Total acquired intangible assets $ 18,280 $ (6,887) $ 11,393 $ 18,280 $ (5,672) $ 12,608 (1) The weighted average useful life of acquired intangible assets related to the Nitro acquisition is 4.3 years and the weighted average useful life of the acquired intangible assets related to the Scholly acquisition is 3.9 years. (2) In 2023, we fully impaired the Nitro trade name and trademarks asset for $56 million. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2024 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Deposits | Deposits The following table summarizes total deposits at March 31, 2024 and December 31, 2023. March 31, December 31, (Dollars in thousands) 2024 2023 Deposits - interest-bearing $ 20,901,209 $ 21,651,657 Deposits - non-interest-bearing 2,247 1,531 Total deposits $ 20,903,456 $ 21,653,188 Our total deposits of $20.9 billion were comprised of $10.3 billion in brokered deposits and $10.6 billion in retail and other deposits at March 31, 2024, compared to total deposits of $21.7 billion, which were comprised of $10.3 billion in brokered deposits and $11.4 billion in retail and other deposits, at December 31, 2023. Interest-bearing deposits as of March 31, 2024 and December 31, 2023 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 $6.8 billion and $7.6 billion of our deposit total as of March 31, 2024 and December 31, 2023, respectively. The omnibus accounts are structured in such a way that entitles the individual depositor pass-through deposit insurance (subject to Federal Deposit Insurance Corporation (“FDIC”) rules and limitations), and the majority of these deposits have contractual minimum balances and maturity terms. 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 March 31, 2024 and 2023, respectively. There were no fees paid to third-party brokers related to brokered CDs for the three months ended March 31, 2024 and $3 million in fees were paid for the three months ended March 31, 2023. Interest bearing deposits at March 31, 2024 and December 31, 2023 are summarized as follows: March 31, 2024 December 31, 2023 (Dollars in thousands) Amount Qtr.-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 9,448,177 4.61 % $ 10,258,292 4.85 % Savings 969,452 4.34 945,000 4.35 Certificates of deposit 10,483,580 3.81 10,448,365 3.69 Deposits - interest bearing $ 20,901,209 $ 21,651,657 (1) Includes the effect of interest rate swaps in effective hedge relationships. Certificates of deposit remaining maturities are summarized as follows: (Dollars in thousands) March 31, 2024 December 31, 2023 One year or less $ 5,058,152 $ 3,937,766 After one year to two years 3,371,560 4,112,902 After two years to three years 1,677,935 1,881,371 After three years to four years 210,575 327,295 After four years to five years 165,245 188,802 After five years 113 229 Total $ 10,483,580 $ 10,448,365 |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2024 | |
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 2023 Form 10-K. The following table summarizes our borrowings at March 31, 2024 and December 31, 2023. March 31, 2024 December 31, 2023 (Dollars in thousands) Short-Term Long-Term Total Short-Term Long-Term Total Unsecured borrowings: Unsecured debt (fixed-rate) $ — $ 993,005 $ 993,005 $ — $ 992,200 $ 992,200 Total unsecured borrowings — 993,005 993,005 — 992,200 992,200 Secured borrowings: Private Education Loan term securitizations: Fixed-rate — 3,390,494 3,390,494 — 3,585,254 3,585,254 Variable-rate — 593,383 593,383 — 650,058 650,058 Total Private Education Loan term securitizations — 3,983,877 3,983,877 — 4,235,312 4,235,312 Secured Borrowing Facility — — — — — — Total secured borrowings — 3,983,877 3,983,877 — 4,235,312 4,235,312 Total $ — $ 4,976,882 $ 4,976,882 $ — $ 5,227,512 $ 5,227,512 Long-term Borrowings Secured Financings at Issuance The following table summarizes our secured financings issued in 2023. There were no secured financings issued in the three months ended March 31, 2024. Issue Date Issued Total Issued Weighted Average Cost of Funds (1) Weighted Average Life (Dollars in thousands) Private Education Loans: 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 (2) $ 1,292,507 (1) Represents SOFR equivalent cost of funds for floating and fixed-rate bonds, excluding issuance costs. (2) At March 31, 2024, $1.17 billion of our Private Education Loans, including $1.09 billion of principal and $84 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 March 31, 2024 (dollars in thousands) Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets (1) Total Secured borrowings: Private Education Loan term securitizations $ — $ 3,983,877 $ 3,983,877 $ 5,279,994 $ 147,649 $ 300,115 $ 5,727,758 Secured Borrowing Facility — — — — — 353 353 Total $ — $ 3,983,877 $ 3,983,877 $ 5,279,994 $ 147,649 $ 300,468 $ 5,728,111 As of December 31, 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 $ — $ 4,235,312 $ 4,235,312 $ 5,539,964 $ 149,412 $ 311,697 $ 6,001,073 Secured Borrowing Facility — — — — — 1,066 1,066 Total $ — $ 4,235,312 $ 4,235,312 $ 5,539,964 $ 149,412 $ 312,763 $ 6,002,139 (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. 2024-A Transaction On March 13, 2024, we closed an SMB Private Education Loan Trust 2024-A term ABS transaction (the “2024-A Transaction”), in which an unaffiliated third party sold to the trust approximately $2.0 billion of Private Education Loans that the third-party seller previously purchased from us on February 1, 2024. Sallie Mae Bank sponsored the 2024-A 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 2024-A Transaction and we recorded a $7 million gain on sale associated with this transaction. In connection with the 2024-A 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 2024-A 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. March 31, 2024 December 31, 2023 (Dollars in thousands) Debt Interests (1) Equity Interests (2) Total Exposure Debt Interests (1) Equity Interests (2) Total Exposure Private Education Loan term securitizations $ 521,263 $ 58,166 $ 579,429 $ 423,327 $ 54,481 $ 477,808 (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 March 31, 2024. The interest rate we are charged on these lines of credit is priced at Fed Funds plus a spread at the time of borrowing and is payable daily. We did not utilize these lines of credit in the three months ended March 31, 2024 nor in the year ended December 31, 2023. 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 March 31, 2024 and December 31, 2023, the value of our pledged collateral at the FRB totaled $1.4 billion and $1.6 billion, respectively. The interest rate charged to us is the discount rate set by the FRB. We did not utilize this facility in the three months ended March 31, 2024 nor in the year ended December 31, 2023. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2024 | |
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 2023 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 March 31, 2024, $1.5 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 92.2 percent and 7.8 percent, respectively, of our total notional derivative contracts of $1.6 billion at March 31, 2024. 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 March 31, 2024 was $(39) million and $(3) 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 March 31, 2024 and December 31, 2023, 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 $8 million and $9 million, respectively. Summary of Derivative Financial Statement Impact The following tables summarize the fair values and notional amounts of all derivative instruments at March 31, 2024 and December 31, 2023, and their impact on earnings and other comprehensive income for the three months ended March 31, 2024 and March 31, 2023. Please refer to Notes to Consolidated Financial Statements, Note 13, “Derivative Financial Instruments” in our 2023 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 March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, (Dollars in thousands) 2024 2023 2024 2023 2024 2023 2024 2023 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ 208 $ — $ — $ — $ — $ — $ 208 $ — Derivative Liabilities: (2) Interest rate swaps Interest rate (33) (339) (83) (31) — — (116) (370) Total net derivatives $ 175 $ (339) $ (83) $ (31) $ — $ — $ 92 $ (370) (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 March 31, December 31, March 31, December 31, (Dollars in thousands) 2024 2023 2024 2023 Gross position (1) $ 208 $ — $ (116) $ (370) Impact of master netting agreement (83) — 83 — Derivative values with impact of master netting agreements (as carried on balance sheet) 125 — (33) (370) Cash collateral pledged (2) 7,572 9,228 — — Net position $ 7,697 $ 9,228 $ (33) $ (370) (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) March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, 2024 2023 2024 2023 2024 2023 2024 2023 Interest rate swaps $ 1,180,025 $ 1,203,783 $ 402,309 $ 702,309 $ — $ — $ 1,582,334 $ 1,906,092 Net total notional $ 1,180,025 $ 1,203,783 $ 402,309 $ 702,309 $ — $ — $ 1,582,334 $ 1,906,092 As of March 31, 2024 and December 31, 2023, 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: March 31, December 31, March 31, December 31, 2024 2023 2024 2023 Deposits $ (392,343) $ (689,137) $ 9,704 $ 12,910 Impact of Derivatives on the Consolidated Statements of Income Three Months Ended (Dollars in thousands) 2024 2023 Fair Value Hedges Interest rate swaps: Interest recognized on derivatives $ (5,538) $ (6,405) Hedged items recorded in interest expense (3,205) (7,035) Derivatives recorded in interest expense 3,229 7,096 Total $ (5,514) $ (6,344) Cash Flow Hedges Interest rate swaps: Amount of gain (loss) reclassified from accumulated other comprehensive income into interest expense $ 12,461 $ 10,278 Total $ 12,461 $ 10,278 Trading Interest rate swaps: Change in fair value of future interest payments recorded in earnings $ — $ — Total — — Total $ 6,947 $ 3,934 Impact of Derivatives on the Statements of Changes in Stockholders’ Equity Three Months Ended March 31, (Dollars in thousands) 2024 2023 Amount of gain (loss) recognized in other comprehensive income (loss) $ 9,412 $ (4,721) Less: amount of gain (loss) reclassified in interest expense 12,461 10,278 Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit $ (3,049) $ (14,999) 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 $34 million will be reclassified as a decrease to interest expense. Cash Collateral As of March 31, 2024, 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 March 31, 2024 and December 31, 2023, 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 $8 million and $9 million at March 31, 2024 and December 31, 2023, respectively. Collateral pledged is recorded in “Other interest-earning assets” on the consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The following table summarizes our common share repurchases and issuances. Three Months Ended (Shares and per share amounts in actuals) 2024 2023 Common stock repurchased under repurchase programs (1) 1,310,723 — Average purchase price per share (2) $ 20.32 $ — Shares repurchased related to employee stock-based compensation plans (3) 683,247 949,431 Average purchase price per share $ 19.91 $ 15.55 Common shares issued (4) 1,925,920 2,523,744 (1) Common shares purchased under our share repurchase programs. The 2022 Share Repurchase Program expired on January 25, 2024. There was $623 million of capacity remaining under the 2024 Share Repurchase Program at March 31, 2024. (2) Average purchase price per share includes purchase commission costs and excise taxes. (3) Comprised of shares withheld from stock option exercises and the vesting of restricted stock, restricted stock units, and performance stock units 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 March 28, 2024 was $21.79. Common Stock Dividends In both March 2024 and March 2023, we paid a common stock dividend of $0.11 per common share. Share Repurchases On January 26, 2022, we announced a share repurchase program (the “2022 Share Repurchase Program”), which was effective upon announcement and expired on January 25, 2024, and 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. We did not repurchase shares of common stock under the 2022 Share Repurchase Program in the three months ended March 31, 2024 or 2023. On January 24, 2024, we announced a new share repurchase program (the "2024 Share Repurchase Program"), which became effective on January 26, 2024 and expires on February 6, 2026, and permits us to repurchase shares of our common stock from time to time up to an aggregate repurchase price not to exceed $650 million. Under the 2024 Share Repurchase Program, we repurchased 1.3 million shares of common stock for $27 million in the three months ended March 31, 2024. We had $623 million of capacity remaining under the 2024 Share Repurchase Program at March 31, 2024. Under the 2024 Share Repurchase Program, repurchases may occur from time to time and through a variety of methods, including open market repurchases, repurchases effected through Rule 10b5-1 trading plans, negotiated block purchases, accelerated share repurchase programs, tender offers, or other similar transactions. The timing and volume of any repurchases will be subject to market conditions, and there can be no guarantee that the Company will repurchase up to the limit of the 2024 Share Repurchase Program. Share Repurchases under Rule 10b5-1 trading plans |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2024 | |
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 (Dollars in thousands, except per share data) 2024 2023 Numerator: Net income $ 289,931 $ 118,518 Preferred stock dividends 4,653 4,063 Net income attributable to SLM Corporation common stock $ 285,278 $ 114,455 Denominator: Weighted average shares used to compute basic EPS 220,416 241,497 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units, performance stock units, and Employee Stock Purchase Plan (“ESPP”) (1)(2) 3,429 2,052 Weighted average shares used to compute diluted EPS 223,845 243,549 Basic earnings per common share $ 1.29 $ 0.47 Diluted earnings per common share $ 1.27 $ 0.47 (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, performance stock units, and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method. (2) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2024 | |
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 2023 Form 10-K. During the three months ended March 31, 2024, 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 March 31, 2024 December 31, 2023 (Dollars in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Trading investments $ — $ — $ 58,166 $ 58,166 $ — $ — $ 54,481 $ 54,481 Available-for-sale investments — 2,271,108 — 2,271,108 — 2,411,622 — 2,411,622 Derivative instruments — 208 — 208 — — — — Total $ — $ 2,271,316 $ 58,166 $ 2,329,482 $ — $ 2,411,622 $ 54,481 $ 2,466,103 Liabilities: Derivative instruments $ — $ (116) $ — $ (116) $ — $ (370) $ — $ (370) Total $ — $ (116) $ — $ (116) $ — $ (370) $ — $ (370) Change in Balance Sheet Carrying Value Associated with Level 3 Financial Instruments Carried at Fair Value on a Recurring Basis At March 31, 2024 and December 31, 2023, we had $58 million and $54 million, respectively, classified as level 3 financial instruments carried at fair value on a recurring basis through earnings which represent the five percent vertical risk retentions in the residual classes of Private Education Loans sold through securitizations. Total gains/(losses), net included in earnings were $2 million in net gains in the three months ended March 31, 2024, and in the year-ago period, recorded in the specified line item “gains/(losses) on sale of securities”. Net settlements in the three months ended March 31, 2024 were $2 million, compared to $(1) million in the year-ago period. There were no transfers into or out of level 3 related to these residual interest investments during the three months ended March 31, 2024 and 2023. The change in mark to market gains/(losses) on investments held as of the reporting date were $2 million in the three months ended March 31, 2024 and in the year-ago period. The fair value at March 31, 2024 of the residual interests classified as level 3 valuations was $58 million. The residual interest investments are the projected future cash flows representing the difference between the securitized trust’s asset cash flows and the related outflows to the bondholders and for other fees. The residual investments are valued using an internal discounted cash flow model to arrive at the net present value of expected trust residual distributions. These instruments are not actively traded, nor do they have quoted market prices. As a result, unobservable model input assumptions are made regarding the expected CPR and the probability of defaults of the loans in the securitization trusts. At March 31, 2024, the range (average by volume) of the CPR input was 7.1 percent to 11.1 percent (average of 8.49 percent) and the range of the defaults input was 5.1 percent to 20.7 percent (average of 11.03 percent). The significant inputs considered unobservable detailed above would be expected to have the following impacts to the valuations: • A decrease in CPR would result in a longer weighted average life of the trust, resulting in a decrease to the valuation due to the delay in residual cash flows with the increased term. The opposite is true for an increase in the CPR. • A decrease in the probability of defaults means increased principal receipts, resulting in an increase to the valuation due to the increase in residual cash flow. • Conversely, an increase in the probability of defaults means decreased principal receipts, resulting in a decrease to the valuation due to the decrease in residual cash flow. The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. March 31, 2024 December 31, 2023 (Dollars in thousands) Fair Carrying Difference Fair Carrying Difference Earning assets: Loans held for investment, net: Private Education Loans $ 22,342,438 $ 19,687,783 $ 2,654,655 $ 22,229,045 $ 19,772,293 $ 2,456,752 FFELP Loans 521,527 513,006 8,521 542,775 534,064 8,711 Cash and cash equivalents 3,584,013 3,584,013 — 4,149,838 4,149,838 — Trading investments 58,166 58,166 — 54,481 54,481 — Available-for-sale investments 2,271,108 2,271,108 — 2,411,622 2,411,622 — Accrued interest receivable 1,467,249 1,386,487 80,762 1,448,766 1,379,904 68,862 Tax indemnification receivable — — — — — — Derivative instruments 208 208 — — — — Total earning assets $ 30,244,709 $ 27,500,771 $ 2,743,938 $ 30,836,527 $ 28,302,202 $ 2,534,325 Interest-bearing liabilities: Money-market and savings accounts $ 10,268,578 $ 10,417,629 $ 149,051 $ 11,134,883 $ 11,203,292 $ 68,409 Certificates of deposit 10,431,342 10,483,580 52,238 10,380,684 10,448,365 67,681 Long-term borrowings 4,703,196 4,976,882 273,686 4,873,690 5,227,512 353,822 Accrued interest payable 89,328 89,328 — 105,066 105,066 — Derivative instruments 116 116 — 370 370 — Total interest-bearing liabilities $ 25,492,560 $ 25,967,535 $ 474,975 $ 26,494,693 $ 26,984,605 $ 489,912 Excess of net asset fair value over carrying value $ 3,218,913 $ 3,024,237 Please refer to Notes to Consolidated Financial Statements, Note 17, “Fair Value Measurements” in our 2023 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 | 3 Months Ended |
Mar. 31, 2024 | |
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. In July 2023, the federal banking agencies proposed a rule to implement significant changes to the U.S. Basel Ill regulatory capital requirements. The proposed changes to the regulatory capital requirements generally would amend or introduce approaches and methodologies that would apply to banking organizations with total consolidated assets of $100 billion or more or to banking organizations with significant trading activity. The proposed rule therefore would not affect the Bank's capital requirements or the calculation of its capital ratios. 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 each of January 1 2022, 2023, and 2024, 25 percent of the adjusted transition amounts were phased in for regulatory capital purposes. On January 1, 2025, the remaining 25 percent of the adjusted transition amounts will be phased in for regulatory capital purposes, with the phased in amounts included in regulatory capital at the beginning of the 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 March 31, 2024, 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 Year Ended Phase-In Amounts for the Three Months Ended Remaining Adjusted Transition Amounts to be Phased-In (Dollars in thousands) December 31, 2021 December 31, 2022 December 31, 2023 March 31, 2024 March 31, 2024 Retained earnings $ 836,351 $ (209,088) $ (209,088) $ (209,088) $ 209,087 Allowance for credit losses 1,038,145 (259,536) (259,536) (259,536) 259,537 Liability for unfunded commitments 104,377 (26,094) (26,094) (26,095) 26,094 Deferred tax asset 306,171 (76,542) (76,542) (76,543) 76,544 The Bank’s required and actual regulatory capital amounts and ratios, including applicable capital conservation buffers, 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 March 31, 2024 and December 31, 2023, the unrealized loss on available-for-sale investments included in other comprehensive income totaled $115 million and $115 million, net of tax of $37 million and $37 million, respectively. The capital ratios would remain above the well capitalized thresholds, including applicable capital conservation buffers, 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 March 31, 2024 (3) : Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 2,977,353 12.3 % $ 1,700,543 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 2,977,353 12.3 % $ 2,064,945 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,290,809 13.5 % $ 2,550,814 > 10.5 % Tier 1 Capital (to Average Assets) $ 2,977,353 10.2 % $ 1,170,715 > 4.0 % As of December 31, 2023 (3) : Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 3,019,973 12.3 % $ 1,719,621 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 3,019,973 12.3 % $ 2,088,111 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,334,140 13.6 % $ 2,579,432 > 10.5 % Tier 1 Capital (to Average Assets) $ 3,019,973 10.2 % $ 1,184,213 > 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 March 31, 2024 and December 31, 2023, the actual amounts and the actual ratios include the adjusted transition amounts discussed above that were phased in at the beginning of 2024 and 2023. Bank Dividends |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024, we had $673 million of outstanding contractual loan commitments that we expect to fund during the remainder of the 2023/2024 academic year. At March 31, 2024, we had a $32 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 2023 Form 10-K and Note 5, “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 2023 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 | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Events 2024 Securitizations On April 9, 2024, we closed an SMB Private Education Loan Trust 2024-R1 term ABS transaction (the “2024-R1 Transaction”), in which an unaffiliated third party sold to the trust approximately $69 million of Private Education Loans residual flows from our 2020-PTA and 2020-PTB transactions through a re-securitization. Sallie Mae Bank sponsored the 2024-R1 Transaction and is the administrator of the trust. In connection with the 2024-R1 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 2024-R1 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. On April 11, 2024, we closed an SMB Private Education Loan Trust 2024-B term ABS transaction (the “2024-B Transaction”), in which unaffiliated third parties sold to the trust approximately $191 million of Private Education Loans that the third-party sellers previously purchased from us in 2020 and 2021. Sallie Mae Bank sponsored the 2024-B Transaction, is the servicer and administrator, and was the seller of an additional $10 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 2024-B Transaction and we recorded a less than $1 million gain on sale associated with this transaction. In connection with the 2024-B Transaction settlement, we retained a five percent vertical risk retention interest (i.e., five percent of each class issued in the securitization). We classified those vertical risk retention interests related to the 2024-B Transaction as available-for-sale investments, except for the interest in the residual class, which we classified as a trading investment recorded at fair value with changes recorded through earnings. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 289,931 | $ 118,518 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 shares | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | The following individuals each adopted a “Rule 10b5-1 trading arrangement” (as that term is defined in Item 408 of Regulation S-K) during the first quarter of fiscal year 2024: Name and Title Character of Trading Arrangement (1) Date Adopted Duration (2) Aggregate Number of Shares of Common Stock to be Sold Pursuant to Trading Arrangement Nicolas Jafarieh, EVP & Chief Legal, Government Affairs and Communications Officer Rule 10b5-1 February 13, 2024 May 15, 2024 to June 14, 2024 9,951 Robert Strong, Director Rule 10b5-1 March 4, 2024 June 3, 2024 to December 31, 2024 31,500 (1) Each trading arrangement is intended to satisfy the affirmative defense of Rule 10b5-1(c), as amended (the “Rule”). (2) Each trading arrangement permits transactions through and including the earlier to occur of (a) the completion of all sales or (b) the date listed in the table. Each trading arrangement marked as a “Rule 10b5-1 Trading Arrangement” only permits transactions upon expiration of the applicable mandatory cooling-off period under the Rule. |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Nicolas Jafarieh [Member] | |
Trading Arrangements, by Individual | |
Name | Nicolas Jafarieh |
Title | EVP & Chief Legal, Government Affairs and Communications Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | February 13, 2024 |
Arrangement Duration | 122 days |
Aggregate Available | 9,951 |
Robert Strong [Member] | |
Trading Arrangements, by Individual | |
Name | Robert Strong |
Title | Director |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | March 4, 2024 |
Arrangement Duration | 302 days |
Aggregate Available | 31,500 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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 months ended March 31, 2024 are not necessarily indicative of the results for the year ending December 31, 2024 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, 2023 (the “2023 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. |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 Amortized Cost Allowance for credit losses (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale: Mortgage-backed securities $ 485,026 $ — $ 353 $ (71,171) $ 414,208 Utah Housing Corporation bonds 3,201 — — (292) 2,909 U.S. government-sponsored enterprises and Treasuries 1,396,341 — — (63,613) 1,332,728 Other securities 538,615 — 2,385 (19,737) 521,263 Total $ 2,423,183 $ — $ 2,738 $ (154,813) $ 2,271,108 As of December 31, 2023 Amortized Cost Allowance for credit losses (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale: Mortgage-backed securities $ 468,204 $ — $ 703 $ (62,480) $ 406,427 Utah Housing Corporation bonds 3,408 — — (279) 3,129 U.S. government-sponsored enterprises and Treasuries 1,645,609 — — (66,870) 1,578,739 Other securities 446,763 — 603 (24,039) 423,327 Total $ 2,563,984 $ — $ 1,306 $ (153,668) $ 2,411,622 (1) |
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 March 31, 2024: Mortgage-backed securities $ (1,650) $ 98,678 $ (69,521) $ 286,434 $ (71,171) $ 385,112 Utah Housing Corporation bonds — — (292) 2,909 (292) 2,909 U.S. government-sponsored enterprises and Treasuries — — (63,613) 1,232,727 (63,613) 1,232,727 Other securities (1,226) 63,358 (18,511) 201,538 (19,737) 264,896 Total $ (2,876) $ 162,036 $ (151,937) $ 1,723,608 $ (154,813) $ 1,885,644 As of December 31, 2023: Mortgage-backed securities $ (531) $ 51,391 $ (61,949) $ 300,318 $ (62,480) $ 351,709 Utah Housing Corporation bonds — — (279) 3,129 (279) 3,129 U.S. government-sponsored enterprises and Treasuries — — (66,870) 1,578,739 (66,870) 1,578,739 Other securities (2,221) 90,725 (21,818) 241,253 (24,039) 331,978 Total $ (2,752) $ 142,116 $ (150,916) $ 2,123,439 $ (153,668) $ 2,265,555 |
Schedule of Amortized Cost and Fair Value of Securities by Contractual Maturities | As of March 31, 2024, 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 March 31, 2024 Year of Maturity (dollars in thousands) Amortized Cost Estimated Fair Value 2024 449,757 442,325 2025 299,063 290,830 2026 548,807 504,757 2027 98,713 94,816 2038 68 68 2039 581 566 2042 2,252 1,928 2043 4,079 3,626 2044 4,467 4,047 2045 4,898 4,300 2046 7,451 6,498 2047 7,409 6,533 2048 2,008 1,923 2049 15,238 13,344 2050 106,282 83,558 2051 153,057 119,243 2052 51,825 44,160 2053 242,958 235,101 2054 86,866 79,516 2055 82,255 79,089 2056 210,422 209,947 2058 44,727 44,933 Total $ 2,423,183 $ 2,271,108 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Schedule of Loans Held for Investment | Loans held for investment are summarized as follows: March 31, December 31, (Dollars in thousands) 2024 2023 Private Education Loans: Fixed-rate $ 14,788,341 $ 13,985,791 Variable-rate 6,164,005 7,040,053 Total Private Education Loans, gross 20,952,346 21,025,844 Deferred origination costs and unamortized premium/(discount) 80,868 81,554 Allowance for credit losses (1,345,431) (1,335,105) Total Private Education Loans, net 19,687,783 19,772,293 FFELP Loans 516,363 537,401 Deferred origination costs and unamortized premium/(discount) 1,270 1,330 Allowance for credit losses (4,627) (4,667) Total FFELP Loans, net 513,006 534,064 Loans held for investment, net $ 20,200,789 $ 20,306,357 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: 2024 2023 Three Months Ended March 31, (dollars in thousands) Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 21,442,744 11.01 % $ 21,755,202 10.66 % FFELP Loans 527,012 7.24 602,072 6.87 Total portfolio $ 21,969,756 $ 22,357,274 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Receivables [Abstract] | |
Schedule of Allowance for Credit Losses and Recorded Investments in Loans | Allowance for Credit Losses Metrics Three Months Ended March 31, 2024 (dollars in thousands) FFELP Private Education Total Allowance for Credit Losses Beginning balance $ 4,667 $ 1,335,105 $ 1,339,772 Transfer from unfunded commitment liability (1) — 131,614 131,614 Provisions: Provision for current period 83 94,476 94,559 Loan sale reduction to provision — (133,204) (133,204) Total provisions (2) 83 (38,728) (38,645) Net charge-offs: Charge-offs (123) (93,874) (93,997) Recoveries — 11,314 11,314 Net charge-offs (123) (82,560) (82,683) Ending Balance $ 4,627 $ 1,345,431 $ 1,350,058 Allowance (3) : Ending balance: collectively evaluated for impairment $ 4,627 $ 1,345,431 $ 1,350,058 Loans (3) : Ending balance: collectively evaluated for impairment $ 516,363 $ 20,952,346 $ 21,468,709 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,217,295 $ 1,217,295 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.12 % 2.14 % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.90 % 6.07 % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 1.17 % 8.74 % Allowance coverage of net charge-offs (annualized) 9.40 4.07 Ending total loans, gross $ 516,363 $ 20,952,346 Average loans in repayment (4) $ 399,680 $ 15,407,495 Ending loans in repayment (4) $ 393,820 $ 14,961,692 Accrued interest to be capitalized on loans in repayment (6) $ — $ 440,259 (1) See Note 5, “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 March 31, 2024 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ (38,728) Provisions for unfunded loan commitments 50,686 Total Private Education Loan provisions for credit losses 11,958 Other impacts to the provisions for credit losses: FFELP Loans 83 Total 83 Provisions for credit losses reported in consolidated statements of income $ 12,041 (3) For the three months ended March 31, 2024, 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 March 31, 2023 (dollars in thousands) FFELP Private Credit Cards (7) Total Allowance for Credit Losses Beginning balance $ 3,444 $ 1,353,631 $ — $ 1,357,075 Transfer from unfunded commitment liability (1) — 148,513 — 148,513 Provisions: Provision for current period 739 56,334 730 57,803 Total provisions (2) 739 56,334 730 57,803 Net charge-offs: Charge-offs (256) (95,085) (741) (96,082) Recoveries — 11,986 11 11,997 Net charge-offs (256) (83,099) (730) (84,085) Ending Balance $ 3,927 $ 1,475,379 $ — $ 1,479,306 Allowance (3) : Ending balance: collectively evaluated for impairment $ 3,927 $ 1,475,379 $ — $ 1,479,306 Loans (3) : Ending balance: collectively evaluated for impairment $ 592,318 $ 21,898,003 $ — $ 22,490,321 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,150,802 $ — $ 1,150,802 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.23 % 2.11 % — % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.66 % 6.40 % — % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 0.88 % 9.00 % — % Allowance coverage of net charge-offs (annualized) 3.83 4.44 — Ending total loans, gross $ 592,318 $ 21,898,003 $ — Average loans in repayment (4) $ 451,451 $ 15,764,143 $ — Ending loans in repayment (4) $ 446,214 $ 15,990,459 $ — Accrued interest to be capitalized on loans in repayment (6) $ — $ 408,263 $ — (1) See Note 5, “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 March 31, 2023 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ 56,334 Provisions for unfunded loan commitments 56,309 Total Private Education Loan provisions for credit losses 112,643 Other impacts to the provisions for credit losses: FFELP Loans 739 Credit Cards 730 Total 1,469 Provisions for credit losses reported in consolidated statements of income $ 114,112 (3) For the three months ended March 31, 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). (7) We use “Credit Cards” to refer to the suite of Credit Card loans that we previously held; we sold the Credit Card portfolio to a third party in May 2023. 2024 2023 Three Months Ended March 31, (dollars in thousands) Allowance Unfunded Commitments Allowance Unfunded Commitments Beginning Balance $ 112,962 $ 2,221,077 $ 124,924 $ 1,995,808 Provision/New commitments - net (1) 50,686 1,034,458 56,309 1,124,816 Transfer - funded loans (2) (131,614) (2,582,043) (148,513) (2,436,271) Ending Balance $ 32,034 $ 673,492 $ 32,720 $ 684,353 (1) Net of expirations of commitments unused. Also includes incremental provision for new commitments and changes to provision for existing commitments. (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 March 31, 2024 (dollars in thousands) 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 $ 4,991 0.02 % $ 252,761 1.13 % Total $ 4,991 0.02 % $ 252,761 1.13 % Loan Modifications Made to Borrowers Experiencing Financial Difficulty Three Months Ended March 31, 2023 (dollars in thousands) 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 $ 12,902 0.06 % $ 81,780 0.35 % Total $ 12,902 0.06 % $ 81,780 0.35 % The following tables describe the financial effect of the modifications made to loans whose borrowers are experiencing financial difficulty: Three Months Ended March 31, 2024 Interest Rate Reduction Combination - Interest Rate Loan Type Financial Effect Loan Type Financial Effect Private Education Loans Reduced average contractual rate from 13.15% to 3.94% Private Education Loans Added a weighted average 8.59 years to the life of loans Reduced average contractual rate from 12.57% to 3.71% Three Months Ended March 31, 2023 Interest Rate Reduction Combination - Interest Rate Loan Type Financial Effect Loan Type Financial Effect Private Education Loans Reduced average contractual rate from 12.47% to 4.00% Private Education Loans Added a weighted average 10.19 years to the life of loans Reduced average contractual rate from 12.74% to 4.00% Three Months Ended Three Months Ended (Dollars in thousands) Modified Loans (1)(2) Payment Default (3) Charge-Offs (4) Modified Loans (1)(2) Payment Default (3) Charge-Offs (4) Loan Type: Private Education Loans $ 14,783 $ 14,496 $ 4,179 $ 11,624 $ 11,404 $ 4,628 Total $ 14,783 $ 14,496 $ 4,179 $ 11,624 $ 11,404 $ 4,628 (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. (2) For the three months ended March 31, 2024, the modified loans include $13.8 million of interest rate reduction and term extension loan modifications and $1.0 million of interest rate reduction only loan modifications. For the three months ended March 31, 2023, the modified loans include $10.4 million of interest rate reduction and term extension loan modifications and $1.2 million of interest rate reduction only loan modifications. (3) Represents the unpaid principal balance at the time of payment default. (4) 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-quarter 2024 and full year 2023, respectively). Payment Status (Amortized Cost Basis) At March 31, 2024 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 $ 3,313 $ 244,289 $ 5,166 $ 2,476 $ 2,508 $ 257,752 Total $ 3,313 $ 244,289 $ 5,166 $ 2,476 $ 2,508 $ 257,752 Payment Status (Amortized Cost Basis) At December 31, 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 $ 6,843 $ 334,967 $ 17,205 $ 7,689 $ 13,822 $ 380,526 Total $ 6,843 $ 334,967 $ 17,205 $ 7,689 $ 13,822 $ 380,526 (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 March 31, 2024 (dollars in thousands) 2024 2023 2022 2021 2020 2019 and Prior Total Loans in-school/grace/deferment (1) $ 442,021 $ 2,501,814 $ 1,235,053 $ 541,726 $ 268,959 $ 613,124 $ 5,602,697 Loans in forbearance (2) 1,205 34,042 115,729 69,721 42,974 124,286 387,957 Loans in repayment: Loans current 480,422 3,236,356 2,569,306 1,776,854 1,245,882 5,142,786 14,451,606 Loans delinquent 30-59 days (3) 2,576 18,739 32,476 30,460 22,553 133,231 240,035 Loans delinquent 60-89 days (3) — 7,600 20,016 17,424 12,482 76,399 133,921 Loans 90 days or greater past due (3) — 4,791 21,781 18,154 13,369 78,035 136,130 Total Private Education Loans in repayment 482,998 3,267,486 2,643,579 1,842,892 1,294,286 5,430,451 14,961,692 Total Private Education Loans, gross 926,224 5,803,342 3,994,361 2,454,339 1,606,219 6,167,861 20,952,346 Private Education Loans deferred origination costs and unamortized premium/(discount) 10,902 31,667 14,460 7,834 5,078 10,927 80,868 Total Private Education Loans 937,126 5,835,009 4,008,821 2,462,173 1,611,297 6,178,788 21,033,214 Private Education Loans allowance for losses (67,459) (354,779) (271,004) (164,549) (105,385) (382,255) (1,345,431) Private Education Loans, net $ 869,667 $ 5,480,230 $ 3,737,817 $ 2,297,624 $ 1,505,912 $ 5,796,533 $ 19,687,783 Percentage of Private Education Loans in repayment 52.1 % 56.3 % 66.2 % 75.1 % 80.6 % 88.0 % 71.4 % Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment 0.5 % 1.0 % 2.8 % 3.6 % 3.7 % 5.3 % 3.4 % Loans in forbearance as a percentage of loans in repayment and forbearance 0.2 % 1.0 % 4.2 % 3.6 % 3.2 % 2.2 % 2.5 % (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. Private Education Loans Held for Investment - Delinquencies by Origination Vintage As of December 31, 2023 2023 2022 2021 2020 2019 2018 and Prior Total Loans in-school/grace/deferment (1) $ 1,976,040 $ 1,672,333 $ 669,250 $ 307,781 $ 213,593 $ 452,994 $ 5,291,991 Loans in forbearance (2) 19,265 93,079 58,438 35,450 31,818 85,989 324,039 Loans in repayment: Loans current 2,469,817 3,254,534 2,131,040 1,416,069 1,323,825 4,213,986 14,809,271 Loans delinquent 30-59 days (3) 17,599 34,627 37,147 28,020 31,432 149,926 298,751 Loans delinquent 60-89 days (3) 5,720 17,227 20,077 16,614 15,482 75,897 151,017 Loans 90 days or greater past due (3) 1,678 16,939 21,470 15,155 16,150 79,383 150,775 Total Private Education Loans in repayment 2,494,814 3,323,327 2,209,734 1,475,858 1,386,889 4,519,192 15,409,814 Total Private Education Loans, gross 4,490,119 5,088,739 2,937,422 1,819,089 1,632,300 5,058,175 21,025,844 Private Education Loans deferred origination costs and unamortized premium/(discount) 35,616 18,556 9,465 5,809 3,556 8,552 81,554 Total Private Education Loans 4,525,735 5,107,295 2,946,887 1,824,898 1,635,856 5,066,727 21,107,398 Private Education Loans allowance for losses (269,642) (335,090) (194,104) (118,755) (100,111) (317,403) (1,335,105) Private Education Loans, net $ 4,256,093 $ 4,772,205 $ 2,752,783 $ 1,706,143 $ 1,535,745 $ 4,749,324 $ 19,772,293 Percentage of Private Education Loans in repayment 55.6 % 65.3 % 75.2 % 81.1 % 85.0 % 89.3 % 73.3 % Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment 1.0 % 2.1 % 3.6 % 4.1 % 4.5 % 6.8 % 3.9 % Loans in forbearance as a percentage of loans in repayment and forbearance 0.8 % 2.7 % 2.6 % 2.3 % 2.2 % 1.9 % 2.1 % (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 March 31, 2024 (dollars in thousands) Private Education Loans Held for Investment - Credit Quality Indicators Year of Origination Approval 2024 (1) 2023 (1) 2022 (1) 2021 (1) 2020 (1) 2019 and Prior (1) Total (1) % of Balance Cosigners: With cosigner $ 814,592 $ 5,130,203 $ 3,451,511 $ 2,089,098 $ 1,347,339 $ 5,440,233 $ 18,272,976 87 % Without cosigner 111,632 673,139 542,850 365,241 258,880 727,628 2,679,370 13 Total $ 926,224 $ 5,803,342 $ 3,994,361 $ 2,454,339 $ 1,606,219 $ 6,167,861 $ 20,952,346 100 % FICO at Origination Approval (2) : Less than 670 $ 61,789 $ 424,857 $ 316,552 $ 176,921 $ 105,953 $ 546,958 $ 1,633,030 8 % 670-699 129,467 816,049 553,845 332,430 226,123 1,041,796 3,099,710 15 700-749 288,936 1,783,230 1,243,850 779,798 522,793 2,082,333 6,700,940 32 Greater than or equal to 750 446,032 2,779,206 1,880,114 1,165,190 751,350 2,496,774 9,518,666 45 Total $ 926,224 $ 5,803,342 $ 3,994,361 $ 2,454,339 $ 1,606,219 $ 6,167,861 $ 20,952,346 100 % FICO Refreshed (2)(3) : Less than 670 $ 84,355 $ 669,427 $ 541,494 $ 335,868 $ 205,407 $ 951,407 $ 2,787,958 13 % 670-699 129,421 789,950 514,154 299,737 167,203 671,160 2,571,625 12 700-749 286,786 1,700,049 1,127,465 678,404 430,414 1,643,152 5,866,270 28 Greater than or equal to 750 425,662 2,643,916 1,811,248 1,140,330 803,195 2,902,142 9,726,493 47 Total $ 926,224 $ 5,803,342 $ 3,994,361 $ 2,454,339 $ 1,606,219 $ 6,167,861 $ 20,952,346 100 % Seasoning (4) : 1-12 payments $ 484,203 $ 3,024,087 $ 508,182 $ 323,857 $ 191,566 $ 433,762 $ 4,965,657 24 % 13-24 payments — 277,441 2,095,039 206,882 147,749 467,866 3,194,977 15 25-36 payments — — 156,087 1,301,243 128,581 559,089 2,145,000 10 37-48 payments — — — 80,631 798,248 529,743 1,408,622 7 More than 48 payments — — — — 71,116 3,564,277 3,635,393 17 Not yet in repayment 442,021 2,501,814 1,235,053 541,726 268,959 613,124 5,602,697 27 Total $ 926,224 $ 5,803,342 $ 3,994,361 $ 2,454,339 $ 1,606,219 $ 6,167,861 $ 20,952,346 100 % 2024 Current period (5) gross charge-offs $ (7) $ (2,683) $ (13,167) $ (14,125) $ (9,561) $ (54,331) $ (93,874) 2024 Current period (5) recoveries — 212 1,397 1,518 1,033 7,154 11,314 2024 Current period (5) net charge-offs $ (7) $ (2,471) $ (11,770) $ (12,607) $ (8,528) $ (47,177) $ (82,560) Total accrued interest by origination vintage $ 15,497 $ 281,098 $ 365,340 $ 240,093 $ 138,852 $ 317,107 $ 1,357,987 (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 first-quarter 2024. (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, 2024 through March 31, 2024. As of December 31, 2023 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 $ 3,903,676 $ 4,428,163 $ 2,516,380 $ 1,535,308 $ 1,378,699 $ 4,529,768 $ 18,291,994 87 % Without cosigner 586,443 660,576 421,042 283,781 253,601 528,407 2,733,850 13 Total $ 4,490,119 $ 5,088,739 $ 2,937,422 $ 1,819,089 $ 1,632,300 $ 5,058,175 $ 21,025,844 100 % FICO at Origination Approval (2) : Less than 670 $ 328,199 $ 395,526 $ 208,696 $ 118,935 $ 137,494 $ 451,613 $ 1,640,463 8 % 670-699 635,642 704,642 400,744 254,762 257,840 868,777 3,122,407 15 700-749 1,383,779 1,586,783 934,033 590,401 545,333 1,709,299 6,749,628 32 Greater than or equal to 750 2,142,499 2,401,788 1,393,949 854,991 691,633 2,028,486 9,513,346 45 Total $ 4,490,119 $ 5,088,739 $ 2,937,422 $ 1,819,089 $ 1,632,300 $ 5,058,175 $ 21,025,844 100 % FICO Refreshed (2)(3) : Less than 670 $ 495,451 $ 638,381 $ 379,738 $ 217,956 $ 214,665 $ 791,875 $ 2,738,066 13 % 670-699 616,684 672,777 365,674 193,462 176,963 564,245 2,589,805 12 700-749 1,347,094 1,477,310 836,747 498,414 445,244 1,361,073 5,965,882 28 Greater than or equal to 750 2,030,890 2,300,271 1,355,263 909,257 795,428 2,340,982 9,732,091 47 Total $ 4,490,119 $ 5,088,739 $ 2,937,422 $ 1,819,089 $ 1,632,300 $ 5,058,175 $ 21,025,844 100 % Seasoning (4) : 1-12 payments $ 2,514,079 $ 740,450 $ 440,293 $ 245,631 $ 208,941 $ 332,608 $ 4,482,002 21 % 13-24 payments — 2,675,956 303,045 167,532 165,577 384,760 3,696,870 18 25-36 payments — — 1,524,834 195,091 129,571 456,448 2,305,944 11 37-48 payments — — — 902,938 208,521 446,350 1,557,809 7 More than 48 payments — — — 116 706,097 2,985,015 3,691,228 18 Not yet in repayment 1,976,040 1,672,333 669,250 307,781 213,593 452,994 5,291,991 25 Total $ 4,490,119 $ 5,088,739 $ 2,937,422 $ 1,819,089 $ 1,632,300 $ 5,058,175 $ 21,025,844 100 % 2023 Current period (5) gross charge-offs $ (1,812) $ (31,032) $ (70,331) $ (49,624) $ (50,585) $ (216,711) $ (420,095) 2023 Current period (5) recoveries 172 2,342 6,496 4,923 5,260 27,175 46,368 2023 Current period (5) net charge-offs $ (1,640) $ (28,690) $ (63,835) $ (44,701) $ (45,325) $ (189,536) $ (373,727) Total accrued interest by origination vintage $ 177,959 $ 408,800 $ 269,978 $ 152,094 $ 116,618 $ 229,116 $ 1,354,565 (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 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) |
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) March 31, 2024 $ 1,357,987 $ 7,216 $ 8,247 December 31, 2023 $ 1,354,565 $ 8,373 $ 9,897 (1) The allowance for uncollectible interest at March 31, 2024 represents the expected losses related to the portion of accrued interest receivable on those loans that are in repayment ($141 million of accrued interest receivable) that is not expected to be capitalized. The accrued interest receivable that is expected to be capitalized ($1.2 billion) is reserved in the allowance for credit losses. The accrued interest receivable for the loans delinquent 90 days or greater includes $6.7 million of accrued interest receivable on those loans that are in repayment that is not expected to be capitalized and $0.5 million that is expected to be capitalized. (2) |
Unfunded Loan Commitments (Tabl
Unfunded Loan Commitments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Credit Loss [Abstract] | |
Schedule of Allowance for Credit Losses and Recorded Investments in Loans | Allowance for Credit Losses Metrics Three Months Ended March 31, 2024 (dollars in thousands) FFELP Private Education Total Allowance for Credit Losses Beginning balance $ 4,667 $ 1,335,105 $ 1,339,772 Transfer from unfunded commitment liability (1) — 131,614 131,614 Provisions: Provision for current period 83 94,476 94,559 Loan sale reduction to provision — (133,204) (133,204) Total provisions (2) 83 (38,728) (38,645) Net charge-offs: Charge-offs (123) (93,874) (93,997) Recoveries — 11,314 11,314 Net charge-offs (123) (82,560) (82,683) Ending Balance $ 4,627 $ 1,345,431 $ 1,350,058 Allowance (3) : Ending balance: collectively evaluated for impairment $ 4,627 $ 1,345,431 $ 1,350,058 Loans (3) : Ending balance: collectively evaluated for impairment $ 516,363 $ 20,952,346 $ 21,468,709 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,217,295 $ 1,217,295 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.12 % 2.14 % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.90 % 6.07 % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 1.17 % 8.74 % Allowance coverage of net charge-offs (annualized) 9.40 4.07 Ending total loans, gross $ 516,363 $ 20,952,346 Average loans in repayment (4) $ 399,680 $ 15,407,495 Ending loans in repayment (4) $ 393,820 $ 14,961,692 Accrued interest to be capitalized on loans in repayment (6) $ — $ 440,259 (1) See Note 5, “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 March 31, 2024 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ (38,728) Provisions for unfunded loan commitments 50,686 Total Private Education Loan provisions for credit losses 11,958 Other impacts to the provisions for credit losses: FFELP Loans 83 Total 83 Provisions for credit losses reported in consolidated statements of income $ 12,041 (3) For the three months ended March 31, 2024, 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 March 31, 2023 (dollars in thousands) FFELP Private Credit Cards (7) Total Allowance for Credit Losses Beginning balance $ 3,444 $ 1,353,631 $ — $ 1,357,075 Transfer from unfunded commitment liability (1) — 148,513 — 148,513 Provisions: Provision for current period 739 56,334 730 57,803 Total provisions (2) 739 56,334 730 57,803 Net charge-offs: Charge-offs (256) (95,085) (741) (96,082) Recoveries — 11,986 11 11,997 Net charge-offs (256) (83,099) (730) (84,085) Ending Balance $ 3,927 $ 1,475,379 $ — $ 1,479,306 Allowance (3) : Ending balance: collectively evaluated for impairment $ 3,927 $ 1,475,379 $ — $ 1,479,306 Loans (3) : Ending balance: collectively evaluated for impairment $ 592,318 $ 21,898,003 $ — $ 22,490,321 Accrued interest to be capitalized (3) : Ending balance: collectively evaluated for impairment $ — $ 1,150,802 $ — $ 1,150,802 Net charge-offs as a percentage of average loans in repayment (annualized) (4) 0.23 % 2.11 % — % Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized (5) 0.66 % 6.40 % — % Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment (4)(5) 0.88 % 9.00 % — % Allowance coverage of net charge-offs (annualized) 3.83 4.44 — Ending total loans, gross $ 592,318 $ 21,898,003 $ — Average loans in repayment (4) $ 451,451 $ 15,764,143 $ — Ending loans in repayment (4) $ 446,214 $ 15,990,459 $ — Accrued interest to be capitalized on loans in repayment (6) $ — $ 408,263 $ — (1) See Note 5, “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 March 31, 2023 (dollars in thousands) Private Education Loan provisions for credit losses: Provisions for loan losses $ 56,334 Provisions for unfunded loan commitments 56,309 Total Private Education Loan provisions for credit losses 112,643 Other impacts to the provisions for credit losses: FFELP Loans 739 Credit Cards 730 Total 1,469 Provisions for credit losses reported in consolidated statements of income $ 114,112 (3) For the three months ended March 31, 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). (7) We use “Credit Cards” to refer to the suite of Credit Card loans that we previously held; we sold the Credit Card portfolio to a third party in May 2023. 2024 2023 Three Months Ended March 31, (dollars in thousands) Allowance Unfunded Commitments Allowance Unfunded Commitments Beginning Balance $ 112,962 $ 2,221,077 $ 124,924 $ 1,995,808 Provision/New commitments - net (1) 50,686 1,034,458 56,309 1,124,816 Transfer - funded loans (2) (131,614) (2,582,043) (148,513) (2,436,271) Ending Balance $ 32,034 $ 673,492 $ 32,720 $ 684,353 (1) Net of expirations of commitments unused. Also includes incremental provision for new commitments and changes to provision for existing commitments. (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) | 3 Months Ended |
Mar. 31, 2024 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Acquired Intangible Assets | Acquired intangible assets include the following: March 31, 2024 December 31, 2023 (Dollars in thousands) Weighted Average Useful Life (in years) (1) Cost Basis Accumulated Amortization Net Cost Basis Accumulated Amortization Net Trade name and trademarks (2) 4.0 $ 6,040 $ (1,007) $ 5,033 $ 6,040 $ (629) $ 5,411 Customer relationships 4.6 8,920 (4,589) 4,331 8,920 (4,013) 4,907 Developed technology 3.5 2,590 (1,096) 1,494 2,590 (908) 1,682 Partner relationships 2.5 730 (195) 535 730 (122) 608 Total acquired intangible assets $ 18,280 $ (6,887) $ 11,393 $ 18,280 $ (5,672) $ 12,608 (1) The weighted average useful life of acquired intangible assets related to the Nitro acquisition is 4.3 years and the weighted average useful life of the acquired intangible assets related to the Scholly acquisition is 3.9 years. (2) In 2023, we fully impaired the Nitro trade name and trademarks asset for $56 million. |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Schedule of Deposits | The following table summarizes total deposits at March 31, 2024 and December 31, 2023. March 31, December 31, (Dollars in thousands) 2024 2023 Deposits - interest-bearing $ 20,901,209 $ 21,651,657 Deposits - non-interest-bearing 2,247 1,531 Total deposits $ 20,903,456 $ 21,653,188 |
Schedule of Interest Bearing Deposits | Interest bearing deposits at March 31, 2024 and December 31, 2023 are summarized as follows: March 31, 2024 December 31, 2023 (Dollars in thousands) Amount Qtr.-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 9,448,177 4.61 % $ 10,258,292 4.85 % Savings 969,452 4.34 945,000 4.35 Certificates of deposit 10,483,580 3.81 10,448,365 3.69 Deposits - interest bearing $ 20,901,209 $ 21,651,657 (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) March 31, 2024 December 31, 2023 One year or less $ 5,058,152 $ 3,937,766 After one year to two years 3,371,560 4,112,902 After two years to three years 1,677,935 1,881,371 After three years to four years 210,575 327,295 After four years to five years 165,245 188,802 After five years 113 229 Total $ 10,483,580 $ 10,448,365 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedule of Debt | The following table summarizes our borrowings at March 31, 2024 and December 31, 2023. March 31, 2024 December 31, 2023 (Dollars in thousands) Short-Term Long-Term Total Short-Term Long-Term Total Unsecured borrowings: Unsecured debt (fixed-rate) $ — $ 993,005 $ 993,005 $ — $ 992,200 $ 992,200 Total unsecured borrowings — 993,005 993,005 — 992,200 992,200 Secured borrowings: Private Education Loan term securitizations: Fixed-rate — 3,390,494 3,390,494 — 3,585,254 3,585,254 Variable-rate — 593,383 593,383 — 650,058 650,058 Total Private Education Loan term securitizations — 3,983,877 3,983,877 — 4,235,312 4,235,312 Secured Borrowing Facility — — — — — — Total secured borrowings — 3,983,877 3,983,877 — 4,235,312 4,235,312 Total $ — $ 4,976,882 $ 4,976,882 $ — $ 5,227,512 $ 5,227,512 |
Schedule of Securities Financing Transactions | The following table summarizes our secured financings issued in 2023. There were no secured financings issued in the three months ended March 31, 2024. Issue Date Issued Total Issued Weighted Average Cost of Funds (1) Weighted Average Life (Dollars in thousands) Private Education Loans: 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 (2) $ 1,292,507 (1) Represents SOFR equivalent cost of funds for floating and fixed-rate bonds, excluding issuance costs. (2) |
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 March 31, 2024 (dollars in thousands) Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets (1) Total Secured borrowings: Private Education Loan term securitizations $ — $ 3,983,877 $ 3,983,877 $ 5,279,994 $ 147,649 $ 300,115 $ 5,727,758 Secured Borrowing Facility — — — — — 353 353 Total $ — $ 3,983,877 $ 3,983,877 $ 5,279,994 $ 147,649 $ 300,468 $ 5,728,111 As of December 31, 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 $ — $ 4,235,312 $ 4,235,312 $ 5,539,964 $ 149,412 $ 311,697 $ 6,001,073 Secured Borrowing Facility — — — — — 1,066 1,066 Total $ — $ 4,235,312 $ 4,235,312 $ 5,539,964 $ 149,412 $ 312,763 $ 6,002,139 (1) Other assets primarily represent accrued interest receivable. The table below provides a summary of our exposure related to our unconsolidated VIEs. March 31, 2024 December 31, 2023 (Dollars in thousands) Debt Interests (1) Equity Interests (2) Total Exposure Debt Interests (1) Equity Interests (2) Total Exposure Private Education Loan term securitizations $ 521,263 $ 58,166 $ 579,429 $ 423,327 $ 54,481 $ 477,808 (1) Vertical risk retention interest classified as available-for-sale investment. |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 and December 31, 2023, and their impact on earnings and other comprehensive income for the three months ended March 31, 2024 and March 31, 2023. Please refer to Notes to Consolidated Financial Statements, Note 13, “Derivative Financial Instruments” in our 2023 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 March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, (Dollars in thousands) 2024 2023 2024 2023 2024 2023 2024 2023 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ 208 $ — $ — $ — $ — $ — $ 208 $ — Derivative Liabilities: (2) Interest rate swaps Interest rate (33) (339) (83) (31) — — (116) (370) Total net derivatives $ 175 $ (339) $ (83) $ (31) $ — $ — $ 92 $ (370) (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 March 31, December 31, March 31, December 31, (Dollars in thousands) 2024 2023 2024 2023 Gross position (1) $ 208 $ — $ (116) $ (370) Impact of master netting agreement (83) — 83 — Derivative values with impact of master netting agreements (as carried on balance sheet) 125 — (33) (370) Cash collateral pledged (2) 7,572 9,228 — — Net position $ 7,697 $ 9,228 $ (33) $ (370) (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. (2) |
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 March 31, December 31, March 31, December 31, (Dollars in thousands) 2024 2023 2024 2023 Gross position (1) $ 208 $ — $ (116) $ (370) Impact of master netting agreement (83) — 83 — Derivative values with impact of master netting agreements (as carried on balance sheet) 125 — (33) (370) Cash collateral pledged (2) 7,572 9,228 — — Net position $ 7,697 $ 9,228 $ (33) $ (370) (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. (2) |
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 March 31, December 31, March 31, December 31, (Dollars in thousands) 2024 2023 2024 2023 Gross position (1) $ 208 $ — $ (116) $ (370) Impact of master netting agreement (83) — 83 — Derivative values with impact of master netting agreements (as carried on balance sheet) 125 — (33) (370) Cash collateral pledged (2) 7,572 9,228 — — Net position $ 7,697 $ 9,228 $ (33) $ (370) (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. (2) |
Schedule of Notional Amounts of Outstanding Derivative Positions | Notional Values Cash Flow Fair Value Trading Total (Dollars in thousands) March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, 2024 2023 2024 2023 2024 2023 2024 2023 Interest rate swaps $ 1,180,025 $ 1,203,783 $ 402,309 $ 702,309 $ — $ — $ 1,582,334 $ 1,906,092 Net total notional $ 1,180,025 $ 1,203,783 $ 402,309 $ 702,309 $ — $ — $ 1,582,334 $ 1,906,092 |
Schedule of Cumulative Basis Adjustments for Fair Value Hedges | As of March 31, 2024 and December 31, 2023, 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: March 31, December 31, March 31, December 31, 2024 2023 2024 2023 Deposits $ (392,343) $ (689,137) $ 9,704 $ 12,910 |
Schedule of Impact of Derivatives on the Consolidated Statements of Income | Impact of Derivatives on the Consolidated Statements of Income Three Months Ended (Dollars in thousands) 2024 2023 Fair Value Hedges Interest rate swaps: Interest recognized on derivatives $ (5,538) $ (6,405) Hedged items recorded in interest expense (3,205) (7,035) Derivatives recorded in interest expense 3,229 7,096 Total $ (5,514) $ (6,344) Cash Flow Hedges Interest rate swaps: Amount of gain (loss) reclassified from accumulated other comprehensive income into interest expense $ 12,461 $ 10,278 Total $ 12,461 $ 10,278 Trading Interest rate swaps: Change in fair value of future interest payments recorded in earnings $ — $ — Total — — Total $ 6,947 $ 3,934 |
Schedule of Derivative Instruments, Effect on Other Comprehensive Income (Loss) | Impact of Derivatives on the Statements of Changes in Stockholders’ Equity Three Months Ended March 31, (Dollars in thousands) 2024 2023 Amount of gain (loss) recognized in other comprehensive income (loss) $ 9,412 $ (4,721) Less: amount of gain (loss) reclassified in interest expense 12,461 10,278 Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit $ (3,049) $ (14,999) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Schedule of Common Share Repurchases | The following table summarizes our common share repurchases and issuances. Three Months Ended (Shares and per share amounts in actuals) 2024 2023 Common stock repurchased under repurchase programs (1) 1,310,723 — Average purchase price per share (2) $ 20.32 $ — Shares repurchased related to employee stock-based compensation plans (3) 683,247 949,431 Average purchase price per share $ 19.91 $ 15.55 Common shares issued (4) 1,925,920 2,523,744 (1) Common shares purchased under our share repurchase programs. The 2022 Share Repurchase Program expired on January 25, 2024. There was $623 million of capacity remaining under the 2024 Share Repurchase Program at March 31, 2024. (2) Average purchase price per share includes purchase commission costs and excise taxes. (3) Comprised of shares withheld from stock option exercises and the vesting of restricted stock, restricted stock units, and performance stock units for employees’ tax withholding obligations and shares tendered by employees to satisfy option exercise costs. (4) |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 (Dollars in thousands, except per share data) 2024 2023 Numerator: Net income $ 289,931 $ 118,518 Preferred stock dividends 4,653 4,063 Net income attributable to SLM Corporation common stock $ 285,278 $ 114,455 Denominator: Weighted average shares used to compute basic EPS 220,416 241,497 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units, performance stock units, and Employee Stock Purchase Plan (“ESPP”) (1)(2) 3,429 2,052 Weighted average shares used to compute diluted EPS 223,845 243,549 Basic earnings per common share $ 1.29 $ 0.47 Diluted earnings per common share $ 1.27 $ 0.47 (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, performance stock units, and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method. (2) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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 March 31, 2024 December 31, 2023 (Dollars in thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Trading investments $ — $ — $ 58,166 $ 58,166 $ — $ — $ 54,481 $ 54,481 Available-for-sale investments — 2,271,108 — 2,271,108 — 2,411,622 — 2,411,622 Derivative instruments — 208 — 208 — — — — Total $ — $ 2,271,316 $ 58,166 $ 2,329,482 $ — $ 2,411,622 $ 54,481 $ 2,466,103 Liabilities: Derivative instruments $ — $ (116) $ — $ (116) $ — $ (370) $ — $ (370) Total $ — $ (116) $ — $ (116) $ — $ (370) $ — $ (370) |
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. March 31, 2024 December 31, 2023 (Dollars in thousands) Fair Carrying Difference Fair Carrying Difference Earning assets: Loans held for investment, net: Private Education Loans $ 22,342,438 $ 19,687,783 $ 2,654,655 $ 22,229,045 $ 19,772,293 $ 2,456,752 FFELP Loans 521,527 513,006 8,521 542,775 534,064 8,711 Cash and cash equivalents 3,584,013 3,584,013 — 4,149,838 4,149,838 — Trading investments 58,166 58,166 — 54,481 54,481 — Available-for-sale investments 2,271,108 2,271,108 — 2,411,622 2,411,622 — Accrued interest receivable 1,467,249 1,386,487 80,762 1,448,766 1,379,904 68,862 Tax indemnification receivable — — — — — — Derivative instruments 208 208 — — — — Total earning assets $ 30,244,709 $ 27,500,771 $ 2,743,938 $ 30,836,527 $ 28,302,202 $ 2,534,325 Interest-bearing liabilities: Money-market and savings accounts $ 10,268,578 $ 10,417,629 $ 149,051 $ 11,134,883 $ 11,203,292 $ 68,409 Certificates of deposit 10,431,342 10,483,580 52,238 10,380,684 10,448,365 67,681 Long-term borrowings 4,703,196 4,976,882 273,686 4,873,690 5,227,512 353,822 Accrued interest payable 89,328 89,328 — 105,066 105,066 — Derivative instruments 116 116 — 370 370 — Total interest-bearing liabilities $ 25,492,560 $ 25,967,535 $ 474,975 $ 26,494,693 $ 26,984,605 $ 489,912 Excess of net asset fair value over carrying value $ 3,218,913 $ 3,024,237 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Banking and Thrift, Other Disclosure [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements Under Banking Regulations | At March 31, 2024, 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 Year Ended Phase-In Amounts for the Three Months Ended Remaining Adjusted Transition Amounts to be Phased-In (Dollars in thousands) December 31, 2021 December 31, 2022 December 31, 2023 March 31, 2024 March 31, 2024 Retained earnings $ 836,351 $ (209,088) $ (209,088) $ (209,088) $ 209,087 Allowance for credit losses 1,038,145 (259,536) (259,536) (259,536) 259,537 Liability for unfunded commitments 104,377 (26,094) (26,094) (26,095) 26,094 Deferred tax asset 306,171 (76,542) (76,542) (76,543) 76,544 (Dollars in thousands) Actual U.S. Basel III Minimum Requirements Plus Buffer (1)(2) Amount Ratio Amount Ratio As of March 31, 2024 (3) : Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 2,977,353 12.3 % $ 1,700,543 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 2,977,353 12.3 % $ 2,064,945 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,290,809 13.5 % $ 2,550,814 > 10.5 % Tier 1 Capital (to Average Assets) $ 2,977,353 10.2 % $ 1,170,715 > 4.0 % As of December 31, 2023 (3) : Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 3,019,973 12.3 % $ 1,719,621 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 3,019,973 12.3 % $ 2,088,111 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,334,140 13.6 % $ 2,579,432 > 10.5 % Tier 1 Capital (to Average Assets) $ 3,019,973 10.2 % $ 1,184,213 > 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) |
Investments - Narrative (Detail
Investments - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 USD ($) security | Dec. 31, 2023 USD ($) security | |
Investments, Debt and Equity Securities [Abstract] | ||
Vertical risk retention interest | 5% | |
Trading investments | $ 58,166 | $ 54,481 |
Number of government sponsored securities with unrealized losses | security | 228 | 213 |
Number of mortgage-backed securities | security | 258 | 248 |
Par value of mortgage-backed securities pledged to FRB | $ 578,000 | $ 612,000 |
Non-marketable securities investment | 14,000 | 14,000 |
Low income housing tax credit investments | 70,000 | 72,000 |
Liability for unfunded commitments | 23,000 | 30,000 |
Low income housing tax credit investments, tax credits and benefits (less than) | $ 1,000 | $ 11,000 |
Low income housing tax credit investments, expected tax benefits recognized | 25% |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 2,423,183 | $ 2,563,984 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 2,738 | 1,306 |
Gross Unrealized Losses | (154,813) | (153,668) |
Estimated Fair Value | 2,271,108 | 2,411,622 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 485,026 | 468,204 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 353 | 703 |
Gross Unrealized Losses | (71,171) | (62,480) |
Estimated Fair Value | 414,208 | 406,427 |
Utah Housing Corporation bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,201 | 3,408 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (292) | (279) |
Estimated Fair Value | 2,909 | 3,129 |
U.S. government-sponsored enterprises and Treasuries | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,396,341 | 1,645,609 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (63,613) | (66,870) |
Estimated Fair Value | 1,332,728 | 1,578,739 |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 538,615 | 446,763 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 2,385 | 603 |
Gross Unrealized Losses | (19,737) | (24,039) |
Estimated Fair Value | $ 521,263 | $ 423,327 |
Investments - Gross Unrealized
Investments - Gross Unrealized Losses and Fair Value for Mortgage-Backed in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Less than 12 months | ||
Gross Unrealized Losses | $ (2,876) | $ (2,752) |
Estimated Fair Value | 162,036 | 142,116 |
12 months or more | ||
Gross Unrealized Losses | (151,937) | (150,916) |
Estimated Fair Value | 1,723,608 | 2,123,439 |
Total | ||
Gross Unrealized Losses | (154,813) | (153,668) |
Estimated Fair Value | 1,885,644 | 2,265,555 |
Mortgage-backed securities | ||
Less than 12 months | ||
Gross Unrealized Losses | (1,650) | (531) |
Estimated Fair Value | 98,678 | 51,391 |
12 months or more | ||
Gross Unrealized Losses | (69,521) | (61,949) |
Estimated Fair Value | 286,434 | 300,318 |
Total | ||
Gross Unrealized Losses | (71,171) | (62,480) |
Estimated Fair Value | 385,112 | 351,709 |
Utah Housing Corporation bonds | ||
Less than 12 months | ||
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 0 | 0 |
12 months or more | ||
Gross Unrealized Losses | (292) | (279) |
Estimated Fair Value | 2,909 | 3,129 |
Total | ||
Gross Unrealized Losses | (292) | (279) |
Estimated Fair Value | 2,909 | 3,129 |
U.S. government-sponsored enterprises and Treasuries | ||
Less than 12 months | ||
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 0 | 0 |
12 months or more | ||
Gross Unrealized Losses | (63,613) | (66,870) |
Estimated Fair Value | 1,232,727 | 1,578,739 |
Total | ||
Gross Unrealized Losses | (63,613) | (66,870) |
Estimated Fair Value | 1,232,727 | 1,578,739 |
Other securities | ||
Less than 12 months | ||
Gross Unrealized Losses | (1,226) | (2,221) |
Estimated Fair Value | 63,358 | 90,725 |
12 months or more | ||
Gross Unrealized Losses | (18,511) | (21,818) |
Estimated Fair Value | 201,538 | 241,253 |
Total | ||
Gross Unrealized Losses | (19,737) | (24,039) |
Estimated Fair Value | $ 264,896 | $ 331,978 |
Investments - Maturity Table (D
Investments - Maturity Table (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 2,423,183 | $ 2,563,984 |
Estimated Fair Value | 2,271,108 | $ 2,411,622 |
2024 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 449,757 | |
Estimated Fair Value | 442,325 | |
2025 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 299,063 | |
Estimated Fair Value | 290,830 | |
2026 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 548,807 | |
Estimated Fair Value | 504,757 | |
2027 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 98,713 | |
Estimated Fair Value | 94,816 | |
2038 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 68 | |
Estimated Fair Value | 68 | |
2039 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 581 | |
Estimated Fair Value | 566 | |
2042 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,252 | |
Estimated Fair Value | 1,928 | |
2043 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,079 | |
Estimated Fair Value | 3,626 | |
2044 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,467 | |
Estimated Fair Value | 4,047 | |
2045 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 4,898 | |
Estimated Fair Value | 4,300 | |
2046 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,451 | |
Estimated Fair Value | 6,498 | |
2047 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,409 | |
Estimated Fair Value | 6,533 | |
2048 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,008 | |
Estimated Fair Value | 1,923 | |
2049 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15,238 | |
Estimated Fair Value | 13,344 | |
2050 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 106,282 | |
Estimated Fair Value | 83,558 | |
2051 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 153,057 | |
Estimated Fair Value | 119,243 | |
2052 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 51,825 | |
Estimated Fair Value | 44,160 | |
2053 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 242,958 | |
Estimated Fair Value | 235,101 | |
2054 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 86,866 | |
Estimated Fair Value | 79,516 | |
2055 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 82,255 | |
Estimated Fair Value | 79,089 | |
2056 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 210,422 | |
Estimated Fair Value | 209,947 | |
2058 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 44,727 | |
Estimated Fair Value | $ 44,933 |
Loans Held for Investment - Nar
Loans Held for Investment - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2024 | Dec. 31, 2023 | Jul. 01, 2006 | Jun. 30, 2006 | Sep. 30, 1993 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Percent of private loans indexed to LIBOR | 29% | 33% | |||
Tier 1 of government guarantee (at least) | 97% | 97% | |||
Tier 2 of government guarantee | 98% | ||||
Tier 3 of government guarantee | 100% | ||||
Estimated weighted average life of student loans | 5 years 4 months 24 days | 5 years | |||
Private Education Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Gain on sales of loans, net | $ 143 | ||||
Proceeds from sale of loans receivable | 2,100 | ||||
Net proceeds from sales of loans held for investment, principal | 1,950 | ||||
Net proceeds from sales of loans held for investment, capitalized interest | $ 151 |
Loans Held for Investment - Stu
Loans Held for Investment - Student Loan Portfolio by Program (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Allowance for credit losses | $ (1,350,058) | $ (1,339,772) | $ (1,479,306) | $ (1,357,075) |
Private Education Loans, net | 20,200,789 | 20,306,357 | ||
Private Education Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan type | 20,952,346 | 21,025,844 | ||
Deferred origination costs and unamortized premium/(discount) | 80,868 | 81,554 | ||
Allowance for credit losses | (1,345,431) | (1,335,105) | ||
Private Education Loans, net | 19,687,783 | 19,772,293 | ||
Private Education Loans | Fixed-rate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan type | 14,788,341 | 13,985,791 | ||
Private Education Loans | Variable-rate | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan type | 6,164,005 | 7,040,053 | ||
FFELP Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan type | 516,363 | 537,401 | ||
Deferred origination costs and unamortized premium/(discount) | 1,270 | 1,330 | ||
Allowance for credit losses | (4,627) | (4,667) | ||
Private Education Loans, net | $ 513,006 | $ 534,064 |
Loans Held for Investment - S_2
Loans Held for Investment - Student Loan Portfolio Average Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Balance | $ 21,969,756 | $ 22,357,274 |
Private Education Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Balance | $ 21,442,744 | $ 21,755,202 |
Weighted Average Interest Rate | 11.01% | 10.66% |
FFELP Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Balance | $ 527,012 | $ 602,072 |
Weighted Average Interest Rate | 7.24% | 6.87% |
Allowance for Credit Losses - A
Allowance for Credit Losses - Allowance and Recorded Investments in Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Allowance for Credit Losses | |||
Beginning balance | $ 1,339,772 | $ 1,357,075 | $ 1,357,075 |
Transfer from unfunded commitment liability | 131,614 | 148,513 | |
Provision for current period | 94,559 | 57,803 | |
Loan sale reduction to provision | (133,204) | ||
Total provisions | (38,645) | 57,803 | |
Net charge-offs: | |||
Charge-offs | (93,997) | (96,082) | |
Recoveries | 11,314 | 11,997 | |
Net charge-offs | (82,683) | (84,085) | |
Ending Balance | 1,350,058 | 1,479,306 | 1,339,772 |
Allowance | |||
Ending balance: collectively evaluated for impairment | 1,350,058 | 1,479,306 | |
Loans | |||
Ending balance: collectively evaluated for impairment | 21,468,709 | 22,490,321 | |
Accrued Interest to be Capitalized | |||
Ending balance: collectively evaluated for impairment | 1,217,295 | 1,150,802 | |
Other impacts to the provisions for credit losses | 83 | 1,469 | |
Provisions for credit losses reported in consolidated statements of income | 12,041 | 114,112 | |
FFELP Loans | |||
Allowance for Credit Losses | |||
Beginning balance | 4,667 | 3,444 | 3,444 |
Transfer from unfunded commitment liability | 0 | 0 | |
Provision for current period | 83 | 739 | |
Loan sale reduction to provision | 0 | ||
Total provisions | 83 | 739 | |
Net charge-offs: | |||
Charge-offs | (123) | (256) | |
Recoveries | 0 | 0 | |
Net charge-offs | (123) | (256) | |
Ending Balance | 4,627 | 3,927 | 4,667 |
Allowance | |||
Ending balance: collectively evaluated for impairment | 4,627 | 3,927 | |
Loans | |||
Ending balance: collectively evaluated for impairment | 516,363 | 592,318 | |
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) | 0.12% | 0.23% | |
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized | 0.90% | 0.66% | |
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment | 1.17% | 0.88% | |
Allowance coverage of net charge-offs (annualized) | 9.40 | 3.83 | |
Ending total loans, gross | $ 516,363 | $ 592,318 | |
Average loans in repayment | 399,680 | 451,451 | |
Ending loans in repayment | 393,820 | 446,214 | |
Accrued interest to be capitalized on loans in repayment | 0 | 0 | |
Other impacts to the provisions for credit losses | 83 | 739 | |
Private Education Loans | |||
Allowance for Credit Losses | |||
Beginning balance | 1,335,105 | 1,353,631 | 1,353,631 |
Transfer from unfunded commitment liability | 131,614 | 148,513 | |
Provision for current period | 94,476 | 56,334 | |
Loan sale reduction to provision | (133,204) | ||
Total provisions | (38,728) | 56,334 | |
Net charge-offs: | |||
Charge-offs | (93,874) | (95,085) | |
Recoveries | 11,314 | 11,986 | |
Net charge-offs | (82,560) | (83,099) | |
Ending Balance | 1,345,431 | 1,475,379 | 1,335,105 |
Allowance | |||
Ending balance: collectively evaluated for impairment | 1,345,431 | 1,475,379 | |
Loans | |||
Ending balance: collectively evaluated for impairment | 20,952,346 | 21,898,003 | |
Accrued Interest to be Capitalized | |||
Ending balance: collectively evaluated for impairment | $ 1,217,295 | $ 1,150,802 | |
Net charge-offs as a percentage of average loans in repayment (annualized) | 2.14% | 2.11% | |
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized | 6.07% | 6.40% | |
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment | 8.74% | 9% | |
Allowance coverage of net charge-offs (annualized) | 4.07 | 4.44 | |
Ending total loans, gross | $ 20,952,346 | $ 21,898,003 | |
Average loans in repayment | 15,407,495 | 15,764,143 | |
Ending loans in repayment | 14,961,692 | 15,990,459 | |
Accrued interest to be capitalized on loans in repayment | 440,259 | 408,263 | |
Provisions for loan losses | (38,728) | 56,334 | |
Provisions for unfunded loan commitments | 50,686 | 56,309 | |
Total Private Education Loan provisions for credit losses | $ 11,958 | 112,643 | |
Credit Cards | |||
Allowance for Credit Losses | |||
Beginning balance | 0 | $ 0 | |
Transfer from unfunded commitment liability | 0 | ||
Provision for current period | 730 | ||
Total provisions | 730 | ||
Net charge-offs: | |||
Charge-offs | (741) | ||
Recoveries | 11 | ||
Net charge-offs | (730) | ||
Ending Balance | 0 | ||
Allowance | |||
Ending balance: collectively evaluated for impairment | 0 | ||
Loans | |||
Ending balance: collectively evaluated for impairment | 0 | ||
Accrued Interest to be Capitalized | |||
Ending balance: collectively evaluated for impairment | $ 0 | ||
Net charge-offs as a percentage of average loans in repayment (annualized) | 0% | ||
Allowance as a percentage of the ending total loan balance and accrued interest to be capitalized | 0% | ||
Allowance as a percentage of the ending loans in repayment and accrued interest to be capitalized on loans in repayment | 0% | ||
Allowance coverage of net charge-offs (annualized) | 0 | ||
Ending total loans, gross | $ 0 | ||
Average loans in repayment | 0 | ||
Ending loans in repayment | 0 | ||
Accrued interest to be capitalized on loans in repayment | 0 | ||
Other impacts to the provisions for credit losses | $ 730 |
Allowance for Credit Losses - N
Allowance for Credit Losses - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 USD ($) payment | Dec. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | Jul. 01, 2006 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable allowance period increase (decrease) | $ (102,000,000) | |||
Loan sale reduction to provision | $ 133,204,000 | |||
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 | |||
Interest rate reduction | 2% | |||
Modified loans | $ 257,752,000 | $ 380,526,000 | ||
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 | |||
Extended Maturity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financing receivable, troubled debt restructuring, subsequent default, number of contracts | payment | 0 | |||
Private Education Loans | Extended Maturity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financial receivable, excluding accrued interest, modified, accumulated | $ 10,500,000 | 10,500,000 | ||
Financial receivable, excluding accrued interest, modified in period, to total financing receivables, percentage | 0.05% | |||
Financing receivable, modified, weighted average term increase from modification | 6 years 7 months 6 days | |||
Modified loans | $ 200,000 | |||
Financing receivable, troubled debt restructuring, premodification | $ 200,000 | |||
Threshold period for payment default | 60 days | |||
Loan delinquent 30-59 days | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Modified loans | $ 5,166,000 | 17,205,000 | ||
Loan delinquent 30-59 days | Private Education Loans | Extended Maturity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financial receivable, excluding accrued interest, modified, accumulated | 400,000 | |||
Loan delinquent 60-89 days | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Modified loans | 2,476,000 | 7,689,000 | ||
Loan delinquent 60-89 days | Private Education Loans | Extended Maturity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financial receivable, excluding accrued interest, modified, accumulated | 80,000 | |||
Loan delinquent 90 days or greater past due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Modified loans | 2,508,000 | 13,822,000 | ||
Loan delinquent 90 days or greater past due | Private Education Loans | Extended Maturity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financial receivable, excluding accrued interest, modified, accumulated | 200,000 | |||
Loan delinquent, current | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Modified loans | 244,289,000 | 334,967,000 | ||
Loan delinquent, current | Private Education Loans | Extended Maturity | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Financial receivable, excluding accrued interest, modified, accumulated | 9,800,000 | |||
Private Education Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan sale reduction to provision | 133,204,000 | |||
Loans sold | 2,100,000,000 | |||
Modified loans | $ 257,752,000 | 380,526,000 | ||
Threshold period when delinquent loans are written off | 120 days | |||
Private Education Loans | Loan delinquent 30-59 days | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Modified loans | $ 5,166,000 | 17,205,000 | ||
Private Education Loans | Loan delinquent 60-89 days | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Modified loans | 2,476,000 | 7,689,000 | ||
Private Education Loans | Loan delinquent 90 days or greater past due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Modified loans | 2,508,000 | 13,822,000 | ||
Private Education Loans | Loan delinquent, current | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Modified loans | 244,289,000 | $ 334,967,000 | ||
FFELP Loans | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loan sale reduction to provision | $ 0 | |||
Percentage of FFELP loans insured and guaranteed (at least) | 97% | |||
Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Increments in which forbearance is granted | 2 months | |||
Interest rate offered to borrowers facing financial difficulty | 8% | 8% | ||
Temporary interest rate reduction, period | 4 years | 4 years | ||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Increments in which forbearance is granted | 1 month | |||
Interest rate offered to borrowers facing financial difficulty | 2% | 2% | ||
Temporary interest rate reduction, period | 2 years | 2 years |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest Rate Reduction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 4,991 | $ 12,902 |
% of Total Class of Financing Receivable | 0.02% | 0.06% |
Combination - Interest Rate Reduction and Term Extension | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 252,761 | $ 81,780 |
% of Total Class of Financing Receivable | 1.13% | 0.35% |
Private Education Loans | Interest Rate Reduction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 4,991 | $ 12,902 |
% of Total Class of Financing Receivable | 0.02% | 0.06% |
Private Education Loans | Interest Rate Reduction | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average contractual rate | 13.15% | 12.47% |
Private Education Loans | Interest Rate Reduction | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average contractual rate | 3.94% | 4% |
Private Education Loans | Combination - Interest Rate Reduction and Term Extension | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 252,761 | $ 81,780 |
% of Total Class of Financing Receivable | 1.13% | 0.35% |
Weighted average life of loans | 8 years 7 months 2 days | 10 years 2 months 8 days |
Private Education Loans | Combination - Interest Rate Reduction and Term Extension | Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average contractual rate | 12.57% | 12.74% |
Private Education Loans | Combination - Interest Rate Reduction and Term Extension | Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average contractual rate | 3.71% | 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 | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Modified loans | $ 257,752 | $ 380,526 | |
60 Days or Greater Past Due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Modified loans | 14,783 | $ 11,624 | |
Payment Default | 14,496 | 11,404 | |
Charge-Offs | 4,179 | 4,628 | |
Combination - Interest Rate Reduction and Term Extension | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Modified loans | 13,800 | 10,400 | |
Interest Rate Reduction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Modified loans | 1,000 | 1,200 | |
Private Education Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Modified loans | 257,752 | $ 380,526 | |
Private Education Loans | 60 Days or Greater Past Due | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Modified loans | 14,783 | 11,624 | |
Payment Default | 14,496 | 11,404 | |
Charge-Offs | $ 4,179 | $ 4,628 |
Allowance for Credit Losses - P
Allowance for Credit Losses - Payment Status (Amortized Cost Basis) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2024 | Dec. 31, 2023 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | $ 257,752 | $ 380,526 |
Deferment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 3,313 | 6,843 |
Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 244,289 | 334,967 |
30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 5,166 | 17,205 |
60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 2,476 | 7,689 |
90 Days or Greater Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 2,508 | 13,822 |
Private Education Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 257,752 | 380,526 |
Private Education Loans | Deferment | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 3,313 | 6,843 |
Private Education Loans | Current | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 244,289 | 334,967 |
Private Education Loans | 30-59 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 5,166 | 17,205 |
Private Education Loans | 60-89 Days Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | 2,476 | 7,689 |
Private Education Loans | 90 Days or Greater Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Payment Status (Amortized Cost Basis) | $ 2,508 | $ 13,822 |
Allowance for Credit Losses - L
Allowance for Credit Losses - Loan Portfolio Stratified by Key Credit Quality Indicators (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
% of Balance | |||
Current period gross charge-offs, total | $ 93,997 | $ 96,082 | |
Current period recoveries, total | 11,314 | 11,997 | |
Current period net charge-offs, total | 82,683 | $ 84,085 | |
Consumer Portfolio Segment | Student Loan | |||
% of Balance | |||
Current period gross charge-offs, Year 1 | (7) | $ (1,812) | |
Current period gross charge-offs, Year 2 | (2,683) | (31,032) | |
Current period gross charge-offs, Year 3 | (13,167) | (70,331) | |
Current period gross charge-offs, Year 4 | (14,125) | (49,624) | |
Current period gross charge-offs, Year 5 | (9,561) | (50,585) | |
Current period gross charge-offs, After Year 5 | (54,331) | (216,711) | |
Current period gross charge-offs, total | 93,874 | 420,095 | |
Current period recoveries, Year 1 | 0 | 172 | |
Current period recoveries, Year 2 | 212 | 2,342 | |
Current period recoveries, Year 3 | 1,397 | 6,496 | |
Current period recoveries, Year 4 | 1,518 | 4,923 | |
Current period recoveries, Year 5 | 1,033 | 5,260 | |
Current period recoveries, After Year 5 | 7,154 | 27,175 | |
Current period recoveries, total | 11,314 | 46,368 | |
Current period net charge-offs, Year 1 | (7) | (1,640) | |
Current period net charge-offs, Year 2 | (2,471) | (28,690) | |
Current period recoveries, Year 3 | (11,770) | (63,835) | |
Current period recoveries, Year 4 | (12,607) | (44,701) | |
Current period recoveries, Year 5 | (8,528) | (45,325) | |
Current period recoveries, After Year 5 | (47,177) | (189,536) | |
Current period net charge-offs, total | 82,560 | 373,727 | |
Total accrued interest by origination vintage, Year 1 | 15,497 | 177,959 | |
Total accrued interest by origination vintage, Year 2 | 281,098 | 408,800 | |
Total accrued interest by origination vintage, Year 3 | 365,340 | 269,978 | |
Total accrued interest by origination vintage, Year 4 | 240,093 | 152,094 | |
Total accrued interest by origination vintage, Year 5 | 138,852 | 116,618 | |
Total accrued interest by origination vintage, After Year 5 | 317,107 | 229,116 | |
Total accrued interest by origination vintage | 1,357,987 | 1,354,565 | |
Consumer Portfolio Segment | Student Loan | With and without cosigners | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | 926,224 | 4,490,119 | |
Year 2 | 5,803,342 | 5,088,739 | |
Year 3 | 3,994,361 | 2,937,422 | |
Year 4 | 2,454,339 | 1,819,089 | |
Year 5 | 1,606,219 | 1,632,300 | |
After Year 5 | 6,167,861 | 5,058,175 | |
Loan type | $ 20,952,346 | $ 21,025,844 | |
% of Balance | |||
Total in percent | 100% | 100% | |
Consumer Portfolio Segment | Student Loan | With cosigner | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 814,592 | $ 3,903,676 | |
Year 2 | 5,130,203 | 4,428,163 | |
Year 3 | 3,451,511 | 2,516,380 | |
Year 4 | 2,089,098 | 1,535,308 | |
Year 5 | 1,347,339 | 1,378,699 | |
After Year 5 | 5,440,233 | 4,529,768 | |
Loan type | $ 18,272,976 | $ 18,291,994 | |
% of Balance | |||
Private education loans | 87% | 87% | |
Consumer Portfolio Segment | Student Loan | Without cosigner | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 111,632 | $ 586,443 | |
Year 2 | 673,139 | 660,576 | |
Year 3 | 542,850 | 421,042 | |
Year 4 | 365,241 | 283,781 | |
Year 5 | 258,880 | 253,601 | |
After Year 5 | 727,628 | 528,407 | |
Loan type | $ 2,679,370 | $ 2,733,850 | |
% of Balance | |||
Private education loans | 13% | 13% | |
Consumer Portfolio Segment | Student Loan | FICO at Origination | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 926,224 | $ 4,490,119 | |
Year 2 | 5,803,342 | 5,088,739 | |
Year 3 | 3,994,361 | 2,937,422 | |
Year 4 | 2,454,339 | 1,819,089 | |
Year 5 | 1,606,219 | 1,632,300 | |
After Year 5 | 6,167,861 | 5,058,175 | |
Loan type | $ 20,952,346 | $ 21,025,844 | |
% of Balance | |||
Total in percent | 100% | 100% | |
Consumer Portfolio Segment | Student Loan | FICO at Origination | Less than 670 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 61,789 | $ 328,199 | |
Year 2 | 424,857 | 395,526 | |
Year 3 | 316,552 | 208,696 | |
Year 4 | 176,921 | 118,935 | |
Year 5 | 105,953 | 137,494 | |
After Year 5 | 546,958 | 451,613 | |
Loan type | $ 1,633,030 | $ 1,640,463 | |
% of Balance | |||
Private education loans at origination | 8% | 8% | |
Consumer Portfolio Segment | Student Loan | FICO at Origination | 670-699 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 129,467 | $ 635,642 | |
Year 2 | 816,049 | 704,642 | |
Year 3 | 553,845 | 400,744 | |
Year 4 | 332,430 | 254,762 | |
Year 5 | 226,123 | 257,840 | |
After Year 5 | 1,041,796 | 868,777 | |
Loan type | $ 3,099,710 | $ 3,122,407 | |
% of Balance | |||
Private education loans at origination | 15% | 15% | |
Consumer Portfolio Segment | Student Loan | FICO at Origination | 700-749 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 288,936 | $ 1,383,779 | |
Year 2 | 1,783,230 | 1,586,783 | |
Year 3 | 1,243,850 | 934,033 | |
Year 4 | 779,798 | 590,401 | |
Year 5 | 522,793 | 545,333 | |
After Year 5 | 2,082,333 | 1,709,299 | |
Loan type | $ 6,700,940 | $ 6,749,628 | |
% of Balance | |||
Private education loans at origination | 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 | $ 446,032 | $ 2,142,499 | |
Year 2 | 2,779,206 | 2,401,788 | |
Year 3 | 1,880,114 | 1,393,949 | |
Year 4 | 1,165,190 | 854,991 | |
Year 5 | 751,350 | 691,633 | |
After Year 5 | 2,496,774 | 2,028,486 | |
Loan type | $ 9,518,666 | $ 9,513,346 | |
% of Balance | |||
Private education loans at origination | 45% | 45% | |
Consumer Portfolio Segment | Student Loan | FICO Refreshed | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 926,224 | $ 4,490,119 | |
Year 2 | 5,803,342 | 5,088,739 | |
Year 3 | 3,994,361 | 2,937,422 | |
Year 4 | 2,454,339 | 1,819,089 | |
Year 5 | 1,606,219 | 1,632,300 | |
After Year 5 | 6,167,861 | 5,058,175 | |
Loan type | $ 20,952,346 | $ 21,025,844 | |
% of Balance | |||
Total in percent | 100% | 100% | |
Consumer Portfolio Segment | Student Loan | FICO Refreshed | Less than 670 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 84,355 | $ 495,451 | |
Year 2 | 669,427 | 638,381 | |
Year 3 | 541,494 | 379,738 | |
Year 4 | 335,868 | 217,956 | |
Year 5 | 205,407 | 214,665 | |
After Year 5 | 951,407 | 791,875 | |
Loan type | $ 2,787,958 | $ 2,738,066 | |
% of Balance | |||
Private education loans at origination | 13% | 13% | |
Consumer Portfolio Segment | Student Loan | FICO Refreshed | 670-699 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 129,421 | $ 616,684 | |
Year 2 | 789,950 | 672,777 | |
Year 3 | 514,154 | 365,674 | |
Year 4 | 299,737 | 193,462 | |
Year 5 | 167,203 | 176,963 | |
After Year 5 | 671,160 | 564,245 | |
Loan type | $ 2,571,625 | $ 2,589,805 | |
% of Balance | |||
Private education loans at origination | 12% | 12% | |
Consumer Portfolio Segment | Student Loan | FICO Refreshed | 700-749 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 286,786 | $ 1,347,094 | |
Year 2 | 1,700,049 | 1,477,310 | |
Year 3 | 1,127,465 | 836,747 | |
Year 4 | 678,404 | 498,414 | |
Year 5 | 430,414 | 445,244 | |
After Year 5 | 1,643,152 | 1,361,073 | |
Loan type | $ 5,866,270 | $ 5,965,882 | |
% of Balance | |||
Private education loans at origination | 28% | 28% | |
Consumer Portfolio Segment | Student Loan | FICO Refreshed | Greater than or equal to 750 | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 425,662 | $ 2,030,890 | |
Year 2 | 2,643,916 | 2,300,271 | |
Year 3 | 1,811,248 | 1,355,263 | |
Year 4 | 1,140,330 | 909,257 | |
Year 5 | 803,195 | 795,428 | |
After Year 5 | 2,902,142 | 2,340,982 | |
Loan type | $ 9,726,493 | $ 9,732,091 | |
% of Balance | |||
Private education loans at origination | 47% | 47% | |
Consumer Portfolio Segment | Student Loan | Seasoning | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 926,224 | $ 4,490,119 | |
Year 2 | 5,803,342 | 5,088,739 | |
Year 3 | 3,994,361 | 2,937,422 | |
Year 4 | 2,454,339 | 1,819,089 | |
Year 5 | 1,606,219 | 1,632,300 | |
After Year 5 | 6,167,861 | 5,058,175 | |
Loan type | $ 20,952,346 | $ 21,025,844 | |
% of Balance | |||
Total in percent | 100% | 100% | |
Consumer Portfolio Segment | Student Loan | Seasoning | 1-12 payments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 484,203 | $ 2,514,079 | |
Year 2 | 3,024,087 | 740,450 | |
Year 3 | 508,182 | 440,293 | |
Year 4 | 323,857 | 245,631 | |
Year 5 | 191,566 | 208,941 | |
After Year 5 | 433,762 | 332,608 | |
Loan type | $ 4,965,657 | $ 4,482,002 | |
% of Balance | |||
Seasoning based on monthly scheduled payments due from 1-12 payments | 24% | 21% | |
Consumer Portfolio Segment | Student Loan | Seasoning | 13-24 payments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 0 | $ 0 | |
Year 2 | 277,441 | 2,675,956 | |
Year 3 | 2,095,039 | 303,045 | |
Year 4 | 206,882 | 167,532 | |
Year 5 | 147,749 | 165,577 | |
After Year 5 | 467,866 | 384,760 | |
Loan type | $ 3,194,977 | $ 3,696,870 | |
% of Balance | |||
Seasoning based on monthly scheduled payments due from 13 - 24 payments | 15% | 18% | |
Consumer Portfolio Segment | Student Loan | Seasoning | 25-36 payments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 0 | $ 0 | |
Year 2 | 0 | 0 | |
Year 3 | 156,087 | 1,524,834 | |
Year 4 | 1,301,243 | 195,091 | |
Year 5 | 128,581 | 129,571 | |
After Year 5 | 559,089 | 456,448 | |
Loan type | $ 2,145,000 | $ 2,305,944 | |
% of Balance | |||
Seasoning based on monthly scheduled payments due from 25 - 36 payments | 10% | 11% | |
Consumer Portfolio Segment | Student Loan | Seasoning | 37-48 payments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 0 | $ 0 | |
Year 2 | 0 | 0 | |
Year 3 | 0 | 0 | |
Year 4 | 80,631 | 902,938 | |
Year 5 | 798,248 | 208,521 | |
After Year 5 | 529,743 | 446,350 | |
Loan type | $ 1,408,622 | $ 1,557,809 | |
% of Balance | |||
Seasoning based on monthly scheduled payments due from 37 - 48 payments | 7% | 7% | |
Consumer Portfolio Segment | Student Loan | Seasoning | More than 48 payments | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 0 | $ 0 | |
Year 2 | 0 | 0 | |
Year 3 | 0 | 0 | |
Year 4 | 0 | 116 | |
Year 5 | 71,116 | 706,097 | |
After Year 5 | 3,564,277 | 2,985,015 | |
Loan type | $ 3,635,393 | $ 3,691,228 | |
% of Balance | |||
Seasoning based on monthly scheduled payments due from more than 48 payments | 17% | 18% | |
Consumer Portfolio Segment | Student Loan | Seasoning | Not yet in repayment | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Year 1 | $ 442,021 | $ 1,976,040 | |
Year 2 | 2,501,814 | 1,672,333 | |
Year 3 | 1,235,053 | 669,250 | |
Year 4 | 541,726 | 307,781 | |
Year 5 | 268,959 | 213,593 | |
After Year 5 | 613,124 | 452,994 | |
Loan type | $ 5,602,697 | $ 5,291,991 | |
% of Balance | |||
Seasoning based on monthly scheduled payments due from not yet in repayment | 27% | 25% |
Allowance for Credit Losses -_4
Allowance for Credit Losses - Age Analysis of Past Due Loans Delinquencies (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Private Education Loans allowance for losses | $ (1,350,058) | $ (1,339,772) | $ (1,479,306) | $ (1,357,075) |
Private Education Loans, net | $ 20,200,789 | $ 20,306,357 | ||
Percentage of Private Education Loans in repayment, Year 1 | 52.10% | 55.60% | ||
Percentage of Private Education Loans in repayment, Year 2 | 56.30% | 65.30% | ||
Percentage of Private Education Loans in repayment, Year 3 | 66.20% | 75.20% | ||
Percentage of Private Education Loans in repayment, Year 4 | 75.10% | 81.10% | ||
Percentage of Private Education Loans in repayment, Year 5 | 80.60% | 85% | ||
Percentage of Private Education Loans in repayment, After Year 5 | 88% | 89.30% | ||
Percentage of Private Education Loans in repayment | 71.40% | 73.30% | ||
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, Year 1 | 0.50% | 1% | ||
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, Year 2 | 1% | 2.10% | ||
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, Year 3 | 2.80% | 3.60% | ||
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, Year 4 | 3.60% | 4.10% | ||
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, Year 5 | 3.70% | 4.50% | ||
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment, After Year 5 | 5.30% | 6.80% | ||
Delinquent Private Education Loans in repayment as a percentage of Private Education Loans in repayment | 3.40% | 3.90% | ||
Loans in forbearance as a percentage of loans in repayment and forbearance, Year 1 | 0.20% | 0.80% | ||
Loans in forbearance as a percentage of loans in repayment and forbearance, Year 2 | 1% | 2.70% | ||
Loans in forbearance as a percentage of loans in repayment and forbearance, Year 3 | 4.20% | 2.60% | ||
Loans in forbearance as a percentage of loans in repayment and forbearance, Year 4 | 3.60% | 2.30% | ||
Loans in forbearance as a percentage of loans in repayment and forbearance, Year 5 | 3.20% | 2.20% | ||
Loans in forbearance as a percentage of loans in repayment and forbearance, After Year 5 | 2.20% | 1.90% | ||
Loans in forbearance as a percentage of loans in repayment and forbearance | 2.50% | 2.10% | ||
Consumer Portfolio Segment | Student Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Private Education Loans in Repayment, Year 1 | $ 482,998 | $ 2,494,814 | ||
Total Private Education Loans in Repayment, Year 2 | 3,267,486 | 3,323,327 | ||
Total Private Education Loans in Repayment, Year 3 | 2,643,579 | 2,209,734 | ||
Total Private Education Loans in Repayment, Year 4 | 1,842,892 | 1,475,858 | ||
Total Private Education Loans in Repayment, Year 5 | 1,294,286 | 1,386,889 | ||
Total Private Education Loans in Repayment, After Year 5 | 5,430,451 | 4,519,192 | ||
Total Private Education Loans in repayment | 14,961,692 | 15,409,814 | ||
Total Private Education Loans, gross, Year 1 | 926,224 | 4,490,119 | ||
Total Private Education Loans, gross, Year 2 | 5,803,342 | 5,088,739 | ||
Total Private Education Loans, gross, Year 3 | 3,994,361 | 2,937,422 | ||
Total Private Education Loans, gross, Year 4 | 2,454,339 | 1,819,089 | ||
Total Private Education Loans, gross, Year 5 | 1,606,219 | 1,632,300 | ||
Total Private Education Loans, gross, After Year 5 | 6,167,861 | 5,058,175 | ||
Total Private Education Loans, gross | 20,952,346 | 21,025,844 | ||
Private Education Loans deferred origination costs and unamortized premium/(discount), Year 1 | 10,902 | 35,616 | ||
Private Education Loans deferred origination costs and unamortized premium/(discount), Year 2 | 31,667 | 18,556 | ||
Private Education Loans deferred origination costs and unamortized premium/(discount), Year 3 | 14,460 | 9,465 | ||
Private Education Loans deferred origination costs and unamortized premium/(discount), Year 4 | 7,834 | 5,809 | ||
Private Education Loans deferred origination costs and unamortized premium/(discount), Year 5 | 5,078 | 3,556 | ||
Private Education Loans deferred origination costs and unamortized premium/(discount), After Year 5 | 10,927 | 8,552 | ||
Private Education Loans deferred origination costs and unamortized premium/(discount) | 80,868 | 81,554 | ||
Total Private Education Loans, Year 1 | 937,126 | 4,525,735 | ||
Total Private Education Loans, Year 2 | 5,835,009 | 5,107,295 | ||
Total Private Education Loans, Year 3 | 4,008,821 | 2,946,887 | ||
Total Private Education Loans, Year 4 | 2,462,173 | 1,824,898 | ||
Total Private Education Loans, Year 5 | 1,611,297 | 1,635,856 | ||
Total Private Education Loans, After Year 5 | 6,178,788 | 5,066,727 | ||
Total Private Education Loans | 21,033,214 | 21,107,398 | ||
Private Education Loans allowance for losses, Year 1 | (67,459) | (269,642) | ||
Private Education Loans allowance for losses, Year 2 | (354,779) | (335,090) | ||
Private Education Loans allowance for losses, Year 3 | (271,004) | (194,104) | ||
Private Education Loans allowance for losses, Year 4 | (164,549) | (118,755) | ||
Private Education Loans allowance for losses, Year 5 | (105,385) | (100,111) | ||
Private Education Loans allowance for losses, After Year 5 | (382,255) | (317,403) | ||
Private Education Loans allowance for losses | (1,345,431) | (1,335,105) | ||
Private Education Loans, net, Year 1 | 869,667 | 4,256,093 | ||
Private Education Loans, net, Year 2 | 5,480,230 | 4,772,205 | ||
Private Education Loans, net, Year 3 | 3,737,817 | 2,752,783 | ||
Private Education Loans, net, Year 4 | 2,297,624 | 1,706,143 | ||
Private Education Loans, net, Year 5 | 1,505,912 | 1,535,745 | ||
Private Education Loans, net, After Year 5 | 5,796,533 | 4,749,324 | ||
Private Education Loans, net | 19,687,783 | 19,772,293 | ||
Consumer Portfolio Segment | Student Loan | Loan delinquent, current | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Year 1 | 480,422 | 2,469,817 | ||
Year 2 | 3,236,356 | 3,254,534 | ||
Year 3 | 2,569,306 | 2,131,040 | ||
Year 4 | 1,776,854 | 1,416,069 | ||
Year 5 | 1,245,882 | 1,323,825 | ||
After Year 5 | 5,142,786 | 4,213,986 | ||
Loan type | 14,451,606 | 14,809,271 | ||
Consumer Portfolio Segment | Student Loan | Loan delinquent 30-59 days | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Year 1 | 2,576 | 17,599 | ||
Year 2 | 18,739 | 34,627 | ||
Year 3 | 32,476 | 37,147 | ||
Year 4 | 30,460 | 28,020 | ||
Year 5 | 22,553 | 31,432 | ||
After Year 5 | 133,231 | 149,926 | ||
Loan type | 240,035 | 298,751 | ||
Consumer Portfolio Segment | Student Loan | Loan delinquent 60-89 days | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Year 1 | 0 | 5,720 | ||
Year 2 | 7,600 | 17,227 | ||
Year 3 | 20,016 | 20,077 | ||
Year 4 | 17,424 | 16,614 | ||
Year 5 | 12,482 | 15,482 | ||
After Year 5 | 76,399 | 75,897 | ||
Loan type | 133,921 | 151,017 | ||
Consumer Portfolio Segment | Student Loan | Loan delinquent 90 days or greater past due | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Year 1 | 0 | 1,678 | ||
Year 2 | 4,791 | 16,939 | ||
Year 3 | 21,781 | 21,470 | ||
Year 4 | 18,154 | 15,155 | ||
Year 5 | 13,369 | 16,150 | ||
After Year 5 | 78,035 | 79,383 | ||
Loan type | 136,130 | 150,775 | ||
Loans In-School/Grace/Deferment | Consumer Portfolio Segment | Student Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Year 1 | 442,021 | 1,976,040 | ||
Year 2 | 2,501,814 | 1,672,333 | ||
Year 3 | 1,235,053 | 669,250 | ||
Year 4 | 541,726 | 307,781 | ||
Year 5 | 268,959 | 213,593 | ||
After Year 5 | 613,124 | 452,994 | ||
Loan type | 5,602,697 | 5,291,991 | ||
Loans In Forbearance | Consumer Portfolio Segment | Student Loan | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total Private Education Loans in forbearance, Year 1 | 1,205 | 19,265 | ||
Total Private Education Loans in forbearance, Year 2 | 34,042 | 93,079 | ||
Total Private Education Loans in forbearance, Year 3 | 115,729 | 58,438 | ||
Total Private Education Loans in forbearance, Year 4 | 69,721 | 35,450 | ||
Total Private Education Loans in forbearance, Year 5 | 42,974 | 31,818 | ||
Total Private Education Loans in forbearance, After Year 5 | 124,286 | 85,989 | ||
Total Private Education Loans in forbearance | $ 387,957 | $ 324,039 |
Allowance for Credit Losses -_5
Allowance for Credit Losses - Accrued Interest Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Financing Receivable, Past Due [Line Items] | ||
Total Interest Receivable | $ 1,357,987 | $ 1,354,565 |
90 Days or Greater Past Due | 7,216 | 8,373 |
Allowance for Uncollectible Interest | 8,247 | 9,897 |
Accrued interest receivable not expected to be capitalized | 141,000 | 151,000 |
Accrued interest receivable expected to be capitalized reserved | 1,200,000 | 1,200,000 |
Loan delinquent 90 days or greater past due | ||
Financing Receivable, Past Due [Line Items] | ||
Accrued interest receivable not expected to be capitalized | 6,700 | 7,700 |
Accrued interest receivable expected to be capitalized reserved | $ 500 | $ 600 |
Unfunded Loan Commitments - Nar
Unfunded Loan Commitments - Narrative (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Credit Loss [Abstract] | |
Contractual obligation | $ 673 |
Unfunded Loan Commitments (Deta
Unfunded Loan Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Allowance | ||
Beginning balance | $ 112,962 | $ 124,924 |
Provision/New commitments - net | 50,686 | 56,309 |
Transfer - funded loans | (131,614) | (148,513) |
Ending balance | 32,034 | 32,720 |
Unfunded Commitments | ||
Beginning balance | 2,221,077 | 1,995,808 |
Provision/New commitments - net | 1,034,458 | 1,124,816 |
Transfer - funded loans | (2,582,043) | (2,436,271) |
Ending balance | $ 673,492 | $ 684,353 |
Goodwill and Acquired Intangi_3
Goodwill and Acquired Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 56,000 | $ 56,000 | |
Acquired intangible assets amortization expense | 1,215 | $ 2,272 | |
Expected amortization of 2024 | 5,000 | ||
Expected amortization of 2025 | 4,000 | ||
Expected amortization of 2026 | 3,000 | ||
Expected amortization of 2027 | $ 1,000 |
Goodwill and Acquired Intangi_4
Goodwill and Acquired Intangible Assets - Schedule of Acquired Intangible Assets (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended |
Dec. 31, 2023 | Mar. 31, 2024 | |
Finite-Lived Intangible Assets [Line Items] | ||
Cost Basis | $ 18,280 | $ 18,280 |
Accumulated Amortization | (5,672) | (6,887) |
Net | 12,608 | $ 11,393 |
Nitro | ||
Finite-Lived Intangible Assets [Line Items] | ||
Weighted average useful life of acquired intangible assets | 4 years 3 months 18 days | |
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) | 4 years | |
Cost Basis | 6,040 | $ 6,040 |
Accumulated Amortization | (629) | (1,007) |
Net | 5,411 | $ 5,033 |
Tradename and trademarks | Nitro | ||
Finite-Lived Intangible Assets [Line Items] | ||
Impairment of intangible assets | 56,000 | |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 4 years 7 months 6 days | |
Cost Basis | 8,920 | $ 8,920 |
Accumulated Amortization | (4,013) | (4,589) |
Net | 4,907 | $ 4,331 |
Developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 3 years 6 months | |
Cost Basis | 2,590 | $ 2,590 |
Accumulated Amortization | (908) | (1,096) |
Net | 1,682 | $ 1,494 |
Partner relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Useful Life (in years) | 2 years 6 months | |
Cost Basis | 730 | $ 730 |
Accumulated Amortization | (122) | (195) |
Net | $ 608 | $ 535 |
Deposits - Summary of Total Dep
Deposits - Summary of Total Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Banking and Thrift, Other Disclosure [Abstract] | ||
Deposits - interest-bearing | $ 20,901,209 | $ 21,651,657 |
Deposits - non-interest-bearing | 2,247 | 1,531 |
Total deposits | $ 20,903,456 | $ 21,653,188 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Banking and Thrift, Other Disclosure [Abstract] | |||
Deposits | $ 20,903,456 | $ 21,653,188 | |
Brokered deposits | 10,300,000 | 10,300,000 | |
Retail and other deposits | 10,600,000 | 11,400,000 | |
Stable interest-bearing deposits, total | 6,800,000 | 7,600,000 | |
Brokered deposit placement fee | 3,000 | $ 3,000 | |
Third party broker fees paid | 0 | $ 3,000 | |
Deposits exceeding FDIC insurance limits | 492,000 | 478,000 | |
Accrued interest on deposits | $ 67,000 | $ 91,000 |
Deposits - Interest Bearing Dep
Deposits - Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Amount | ||
Money market | $ 9,448,177 | $ 10,258,292 |
Savings | 969,452 | 945,000 |
Certificates of deposit | 10,483,580 | 10,448,365 |
Deposits - interest bearing | $ 20,901,209 | $ 21,651,657 |
Qtr.-End Weighted Average Stated Rate | ||
Money market | 4.61% | 4.85% |
Savings | 4.34% | 4.35% |
Certificates of deposit | 3.81% | 3.69% |
Deposits - Schedule of Remainin
Deposits - Schedule of Remaining Maturities of Certificates of Deposit (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Banking and Thrift, Other Disclosure [Abstract] | ||
One year or less | $ 5,058,152 | $ 3,937,766 |
After one year to two years | 3,371,560 | 4,112,902 |
After two years to three years | 1,677,935 | 1,881,371 |
After three years to four years | 210,575 | 327,295 |
After four years to five years | 165,245 | 188,802 |
After five years | 113 | 229 |
Total | $ 10,483,580 | $ 10,448,365 |
Borrowings - Company Borrowings
Borrowings - Company Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Debt Instrument [Line Items] | ||
Short-Term | $ 0 | $ 0 |
Long-Term | 4,976,882 | 5,227,512 |
Total | 4,976,882 | 5,227,512 |
Unsecured borrowings | ||
Debt Instrument [Line Items] | ||
Short-Term | 0 | 0 |
Long-Term | 993,005 | 992,200 |
Total | 993,005 | 992,200 |
Secured Borrowings | ||
Debt Instrument [Line Items] | ||
Short-Term | 0 | 0 |
Long-Term | 3,983,877 | 4,235,312 |
Total | 3,983,877 | 4,235,312 |
Secured Borrowings | Private Education Loan term securitizations | ||
Debt Instrument [Line Items] | ||
Short-Term | 0 | 0 |
Long-Term | 3,983,877 | 4,235,312 |
Total | 3,983,877 | 4,235,312 |
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 | 3,390,494 | 3,585,254 |
Total | 3,390,494 | 3,585,254 |
Secured Borrowings | Variable-rate | Private Education Loan term securitizations | ||
Debt Instrument [Line Items] | ||
Short-Term | 0 | 0 |
Long-Term | 593,383 | 650,058 |
Total | $ 593,383 | $ 650,058 |
Borrowings - Secured Financing
Borrowings - Secured Financing (Details) - USD ($) | 1 Months Ended | |||
Aug. 31, 2023 | Mar. 31, 2023 | Mar. 31, 2024 | Dec. 31, 2023 | |
Securities Financing Transaction [Line Items] | ||||
Total Issued | $ 1,147,000,000 | |||
Total loans and accrued interest amount securitized at inception | $ 1,292,507,000 | |||
2023-A | ||||
Securities Financing Transaction [Line Items] | ||||
Total Issued | $ 579,000,000 | |||
Weighted Average Life (in years) | 5 years 21 days | |||
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 | |||
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 2023 | ||||
Securities Financing Transaction [Line Items] | ||||
Loans | $ 1,170,000,000 | |||
Principal amount of collateral | 1,090,000,000 | |||
Capitalized interest | $ 84,000,000 |
Borrowings - Financing VIEs (De
Borrowings - Financing VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 |
Debt Outstanding | |||
Short-Term | $ 0 | $ 0 | |
Long-Term | 4,976,882 | 5,227,512 | |
Total | 4,976,882 | 5,227,512 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Restricted Cash | 147,809 | 149,669 | $ 181,764 |
Other Assets | 58,930 | 52,342 | |
Total assets | 28,277,282 | 29,169,468 | |
Variable Interest Entity, Primary Beneficiary | |||
Debt Outstanding | |||
Short-Term | 0 | 0 | |
Long-Term | 3,983,877 | 4,235,312 | |
Total | 3,983,877 | 4,235,312 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Loans | 5,279,994 | 5,539,964 | |
Restricted Cash | 147,649 | 149,412 | |
Other Assets | 300,468 | 312,763 | |
Total assets | 5,728,111 | 6,002,139 | |
Variable Interest Entity, Primary Beneficiary | Private Education Loan term securitizations | |||
Debt Outstanding | |||
Short-Term | 0 | 0 | |
Long-Term | 3,983,877 | 4,235,312 | |
Total | 3,983,877 | 4,235,312 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Loans | 5,279,994 | 5,539,964 | |
Restricted Cash | 147,649 | 149,412 | |
Other Assets | 300,115 | 311,697 | |
Total assets | 5,727,758 | 6,001,073 | |
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 | 353 | 1,066 | |
Total assets | $ 353 | $ 1,066 |
Borrowings - Narrative (Details
Borrowings - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 13, 2024 | Mar. 31, 2024 | Dec. 31, 2023 | |
Line of Credit Facility [Line Items] | |||
Vertical risk retention interest | 5% | ||
Uncommitted federal funds | $ 125 | ||
Lendable value of collateral | $ 1,400 | $ 1,600 | |
2023-B | |||
Line of Credit Facility [Line Items] | |||
Vertical risk retention interest | 5% | ||
2023-B | Private Education Loans | |||
Line of Credit Facility [Line Items] | |||
Private education loans sold | $ 2,000 | ||
Additional proceeds from sale | 105 | ||
Gain on sale | $ 7 |
Borrowings - Summary of Exposur
Borrowings - Summary of Exposure Related To Unconsolidated VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||||
Estimated Fair Value | $ 2,271,108 | $ 2,411,622 | ||
Total Exposure | 32,034 | 112,962 | $ 32,720 | $ 124,924 |
Variable Interest Entity, Not Primary Beneficiary | Private Education Loan term securitizations | ||||
Debt Instrument [Line Items] | ||||
Estimated Fair Value | 521,263 | 423,327 | ||
Equity Interests | 58,166 | 54,481 | ||
Total Exposure | $ 579,429 | $ 477,808 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Narrative (Details) | 3 Months Ended | |
Mar. 31, 2024 USD ($) counterparty | Dec. 31, 2023 USD ($) | |
Derivative [Line Items] | ||
Number of central counterparties | counterparty | 2 | |
Notional value | $ 1,582,334,000 | $ 1,906,092,000 |
Derivative, fair value, amount offset against collateral, net | 8,000,000 | 9,000,000 |
Estimated accumulated gain (loss) to be reclassified in next 12 months | (34,000,000) | |
Cash collateral held relative to derivative exposure | 0 | 0 |
Cash collateral pledged | 8,000,000 | $ 9,000,000 |
CME | ||
Derivative [Line Items] | ||
Notional value | $ 1,500,000,000 | |
Percent of total notional derivative contracts | 92.20% | |
Amount of variation margin included as settlement | $ (39,000,000) | |
LCH | ||
Derivative [Line Items] | ||
Notional value | $ 100,000,000 | |
Percent of total notional derivative contracts | 7.80% | |
Amount of variation margin included as settlement | $ (3,000,000) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Impact of Derivatives on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 125 | $ 0 |
Derivative liabilities | (33) | (370) |
Total net derivatives | 92 | (370) |
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 | 175 | (339) |
Fair Value Hedges | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Total net derivatives | (83) | (31) |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 208 | 0 |
Derivative liabilities | (116) | (370) |
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 | 208 | 0 |
Derivative liabilities | (33) | (339) |
Interest rate swaps | Fair Value Hedges | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | 0 | 0 |
Derivative liabilities | $ (83) | $ (31) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Other Assets | ||
Gross position | $ 208 | $ 0 |
Impact of master netting agreement | (83) | 0 |
Derivative values with impact of master netting agreements (as carried on balance sheet) | 125 | 0 |
Cash collateral pledged | 7,572 | 9,228 |
Net position | 7,697 | 9,228 |
Other Liabilities | ||
Gross position | (116) | (370) |
Impact of master netting agreement | 83 | 0 |
Derivative values with impact of master netting agreements (as carried on balance sheet) | (33) | (370) |
Cash collateral pledged | 0 | 0 |
Net position | $ (33) | $ (370) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Notional Values (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Notional Values | $ 1,582,334 | $ 1,906,092 |
Trading | ||
Derivatives, Fair Value [Line Items] | ||
Notional Values | 0 | 0 |
Cash Flow | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Values | 1,180,025 | 1,203,783 |
Fair Value | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Values | 402,309 | 702,309 |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional Values | 1,582,334 | 1,906,092 |
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 | 1,180,025 | 1,203,783 |
Interest rate swaps | Fair Value | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional Values | $ 402,309 | $ 702,309 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Schedule of Hedged Items Recorded in Statement of Financial Position (Details) - Deposits - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Derivatives, Fair Value [Line Items] | ||
Carrying Amount of the Hedged Assets/(Liabilities) | $ (392,343) | $ (689,137) |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | $ 9,704 | $ 12,910 |
Derivative Financial Instrume_8
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Cash Flow Hedges | ||
Interest expense | $ 276,542 | $ 232,530 |
Trading | ||
Total | 6,947 | 3,934 |
Designated as Hedging Instrument | ||
Fair Value Hedges | ||
Interest recognized on derivatives | (5,538) | (6,405) |
Hedged items recorded in interest expense | (3,205) | (7,035) |
Derivatives recorded in interest expense | 3,229 | 7,096 |
Trading | ||
Total | (5,514) | (6,344) |
Designated as Hedging Instrument | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Reclassification out of Accumulated Other Comprehensive Income | ||
Cash Flow Hedges | ||
Interest expense | 12,461 | 10,278 |
Trading | ||
Trading | ||
Change in fair value of future interest payments recorded in earnings | 0 | 0 |
Total | $ 0 | $ 0 |
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 | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Amount of gain (loss) recognized in other comprehensive income (loss) | $ 9,412 | $ (4,721) |
Less: amount of gain (loss) reclassified in interest expense | 12,461 | 10,278 |
Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit | $ (3,049) | $ (14,999) |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Repurchased (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Equity [Abstract] | ||
Common stock repurchased (in shares) | 1,310,723 | 0 |
Average purchase price per share (in dollars per share) | $ 20.32 | $ 0 |
Shares repurchased related to employee stock-based compensation plans (in shares) | 683,247 | 949,431 |
Average purchase price per share (in dollars per share) | $ 19.91 | $ 15.55 |
Common shares issued (in shares) | 1,925,920 | 2,523,744 |
Remaining authority under the share repurchase program | $ 623 |
Stockholders' Equity - Narrativ
Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | 3 Months Ended | ||||
Sep. 30, 2023 | Sep. 30, 2022 | Mar. 31, 2024 | Mar. 31, 2023 | Jan. 24, 2024 | Jan. 26, 2022 | |
Class of Stock [Line Items] | ||||||
Common stock dividend (in dollars per share) | $ 0.11 | $ 0.11 | ||||
Common stock repurchased (in shares) | 1,310,723 | 0 | ||||
Remaining authority under the share repurchase program | $ 623,000 | |||||
Common stock repurchased, price (in dollars per share) | $ 26,639 | |||||
Common Stock | ||||||
Class of Stock [Line Items] | ||||||
Common stock closing price (in dollars per share) | $ 21.79 | |||||
Common Stock | 2022 Share Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Aggregate purchase price (not to exceed) | $ 1,250,000 | |||||
Common stock repurchased (in shares) | 0 | |||||
Common Stock | 2024 Share Repurchase Program | ||||||
Class of Stock [Line Items] | ||||||
Aggregate purchase price (not to exceed) | $ 650,000 | |||||
Common stock repurchased (in shares) | 1,300,000 | |||||
Remaining authority under the share repurchase program | $ 623,000 | |||||
Common stock repurchased, price (in dollars per share) | $ 27,000 | |||||
Common Stock | Rule 10b5-1 Trading Plan | ||||||
Class of Stock [Line Items] | ||||||
Common stock repurchased (in shares) | 1,300,000 | 0 | ||||
Common stock repurchased, amount | $ 27,000 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator: | ||
Net income | $ 289,931 | $ 118,518 |
Preferred stock dividends | 4,653 | 4,063 |
Net income attributable to SLM Corporation common stock | 285,278 | 114,455 |
Net income attributable to SLM Corporation common stock | $ 285,278 | $ 114,455 |
Denominator: | ||
Weighted average shares used to compute basic EPS (in shares) | 220,416 | 241,497 |
Effect of dilutive securities: | ||
Dilutive effect of stock options, restricted stock, restricted stock units and Employee Stock Purchase Plan (ESPP) (in shares) | 3,429 | 2,052 |
Weighted average shares used to compute diluted EPS (in shares) | 223,845 | 243,549 |
Basic earnings per common share (in dollars per share) | $ 1.29 | $ 0.47 |
Diluted earnings per common share (in dollars per share) | $ 1.27 | $ 0.47 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,000 | 4,000 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation of Financial Instruments That are Marked-to-Market on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Assets: | ||
Trading investments | $ 58,166 | $ 54,481 |
Available-for-sale investments | 2,271,108 | 2,411,622 |
Derivative instruments | $ 125 | $ 0 |
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets |
Liabilities: | ||
Derivative instruments | $ (33) | $ (370) |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Level 3 | ||
Assets: | ||
Trading investments | $ 58,000 | $ 54,000 |
Fair Value Measurements on a Recurring Basis | ||
Assets: | ||
Trading investments | 58,166 | 54,481 |
Available-for-sale investments | 2,271,108 | 2,411,622 |
Derivative instruments | 208 | 0 |
Total earning assets | 2,329,482 | 2,466,103 |
Liabilities: | ||
Derivative instruments | (116) | (370) |
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 | 2,271,108 | 2,411,622 |
Derivative instruments | 208 | 0 |
Total earning assets | 2,271,316 | 2,411,622 |
Liabilities: | ||
Derivative instruments | (116) | (370) |
Fair Value Measurements on a Recurring Basis | Level 3 | ||
Assets: | ||
Trading investments | 58,166 | 54,481 |
Available-for-sale investments | 0 | 0 |
Derivative instruments | 0 | 0 |
Total earning assets | 58,166 | 54,481 |
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 | Mar. 31, 2024 | Dec. 31, 2023 |
Earning assets: | ||
Trading investments | $ 58,166 | $ 54,481 |
Accrued interest receivable, difference | 80,762 | 68,862 |
Tax indemnification receivable | 277,733 | 366,247 |
Derivative instruments | 125 | 0 |
Total earning assets, difference | 2,743,938 | 2,534,325 |
Interest-bearing liabilities: | ||
Long-term borrowings, difference | 273,686 | 353,822 |
Derivative instruments | 33 | 370 |
Total interest-bearing liabilities, difference | 474,975 | 489,912 |
Excess of net asset fair value over carrying value | 3,218,913 | 3,024,237 |
Money-market and savings accounts | ||
Interest-bearing liabilities: | ||
Deposits, difference | 149,051 | 68,409 |
Certificates of deposit | ||
Interest-bearing liabilities: | ||
Deposits, difference | 52,238 | 67,681 |
Fair Value | ||
Earning assets: | ||
Cash and cash equivalents | 3,584,013 | 4,149,838 |
Trading investments | 58,166 | 54,481 |
Available-for-sale investments | 2,271,108 | 2,411,622 |
Accrued interest receivable | 1,467,249 | 1,448,766 |
Tax indemnification receivable | 0 | 0 |
Derivative instruments | 208 | 0 |
Total earning assets | 30,244,709 | 30,836,527 |
Interest-bearing liabilities: | ||
Long-term borrowings | 4,703,196 | 4,873,690 |
Accrued interest payable | 89,328 | 105,066 |
Derivative instruments | 116 | 370 |
Total interest-bearing liabilities | 25,492,560 | 26,494,693 |
Fair Value | Money-market and savings accounts | ||
Interest-bearing liabilities: | ||
Deposits | 10,268,578 | 11,134,883 |
Fair Value | Certificates of deposit | ||
Interest-bearing liabilities: | ||
Deposits | 10,431,342 | 10,380,684 |
Carrying Value | ||
Earning assets: | ||
Cash and cash equivalents | 3,584,013 | 4,149,838 |
Trading investments | 58,166 | 54,481 |
Available-for-sale investments | 2,271,108 | 2,411,622 |
Accrued interest receivable | 1,386,487 | 1,379,904 |
Tax indemnification receivable | 0 | 0 |
Derivative instruments | 208 | 0 |
Total earning assets | 27,500,771 | 28,302,202 |
Interest-bearing liabilities: | ||
Long-term borrowings | 4,976,882 | 5,227,512 |
Accrued interest payable | 89,328 | 105,066 |
Derivative instruments | 116 | 370 |
Total interest-bearing liabilities | 25,967,535 | 26,984,605 |
Carrying Value | Money-market and savings accounts | ||
Interest-bearing liabilities: | ||
Deposits | 10,417,629 | 11,203,292 |
Carrying Value | Certificates of deposit | ||
Interest-bearing liabilities: | ||
Deposits | 10,483,580 | 10,448,365 |
Private Education Loans | ||
Earning assets: | ||
Loans held for investment, net, difference | 2,654,655 | 2,456,752 |
Private Education Loans | Fair Value | ||
Earning assets: | ||
Loans held for investment, net | 22,342,438 | 22,229,045 |
Private Education Loans | Carrying Value | ||
Earning assets: | ||
Loans held for investment, net | 19,687,783 | 19,772,293 |
FFELP Loans | ||
Earning assets: | ||
Loans held for investment, net, difference | 8,521 | 8,711 |
FFELP Loans | Fair Value | ||
Earning assets: | ||
Loans held for investment, net | 521,527 | 542,775 |
FFELP Loans | Carrying Value | ||
Earning assets: | ||
Loans held for investment, net | $ 513,006 | $ 534,064 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 USD ($) | Mar. 31, 2023 USD ($) | Dec. 31, 2023 USD ($) | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Trading investments | $ 58,166 | $ 54,481 | |
Gain (loss) debt securities | 2,000 | $ 2,000 | |
Gain (loss) on investment | $ 2,000 | 2,000 | |
Minimum | Measurement Input CPR Rate | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.071 | ||
Minimum | Measurement Input, Default Rate | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.051 | ||
Maximum | Measurement Input CPR Rate | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.111 | ||
Maximum | Measurement Input, Default Rate | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.207 | ||
Weighted Average | Measurement Input CPR Rate | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.0849 | ||
Weighted Average | Measurement Input, Default Rate | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Measurement input | 0.1103 | ||
Debt Securities, Trading | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Settlement debt securities | $ 2,000 | $ (1,000) | |
Level 3 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Trading investments | $ 58,000 | $ 54,000 |
Regulatory Capital - Narrative
Regulatory Capital - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Jan. 01, 2020 | Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Dec. 31, 2022 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Allowance for credit losses | $ 1,350,058 | $ 1,479,306 | $ 1,339,772 | $ 1,357,075 | |
Liability for unfunded commitments | 32,034 | 32,720 | 112,962 | 124,924 | |
Retained earnings | 3,884,694 | 3,624,859 | |||
Unrealized gain (loss) | (115,000) | (115,000) | |||
Unrealized gain (loss), tax benefit | (37,000) | (37,000) | |||
Dividends | 160,000 | $ 0 | |||
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% | ||||
Allowance for credit losses | $ 1,100,000 | (259,536) | (259,536) | (259,536) | |
Liability for unfunded commitments | 116,000 | (26,095) | (26,094) | (26,094) | |
Deferred tax asset | 306,000 | (76,543) | (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 | Mar. 31, 2024 | Dec. 31, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2020 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Retained earnings | $ 3,884,694 | $ 3,624,859 | ||||
Allowance for credit losses | 1,350,058 | 1,339,772 | $ 1,479,306 | $ 1,357,075 | ||
Liability for unfunded commitments | 32,034 | 112,962 | $ 32,720 | 124,924 | ||
Adjusted Phase-In Amounts Remaining | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Retained earnings | 209,087 | $ 836,351 | ||||
Allowance for credit losses | 259,537 | 1,038,145 | ||||
Liability for unfunded commitments | 26,094 | 104,377 | ||||
Deferred tax asset | 76,544 | $ 306,171 | ||||
Adjustments | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Retained earnings | (209,088) | (209,088) | (209,088) | $ 953,000 | ||
Allowance for credit losses | (259,536) | (259,536) | (259,536) | 1,100,000 | ||
Liability for unfunded commitments | (26,095) | (26,094) | (26,094) | 116,000 | ||
Deferred tax asset | $ (76,543) | $ (76,542) | $ (76,542) | $ 306,000 |
Regulatory Capital - U.S. Basel
Regulatory Capital - U.S. Basel III Regulatory Requirements (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Actual Amount | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | $ 2,977,353 | $ 3,019,973 |
Tier 1 Capital (to Risk-Weighted Assets) | 2,977,353 | 3,019,973 |
Total Capital (to Risk-Weighted Assets) | 3,290,809 | 3,334,140 |
Tier 1 Capital (to Average Assets) | $ 2,977,353 | $ 3,019,973 |
Actual Ratio | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | 12.30% | 12.30% |
Tier 1 Capital (to Risk-Weighted Assets) | 0.123 | 0.123 |
Total Capital (to Risk-Weighted Assets) | 0.135 | 0.136 |
Tier 1 Capital (to Average Assets) | 0.102 | 0.102 |
U.S. Basel III Regulatory Requirements, Amount | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | $ 1,700,543 | $ 1,719,621 |
Tier 1 Capital (to Risk-Weighted Assets) | 2,064,945 | 2,088,111 |
Total Capital (to Risk-Weighted Assets) | 2,550,814 | 2,579,432 |
Tier 1 Capital (to Average Assets) | $ 1,170,715 | $ 1,184,213 |
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 | 3 Months Ended |
Mar. 31, 2024 USD ($) | |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual obligation | $ 673 |
Other liabilities reserve | $ 32 |
Loss emergence period | 1 year |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Apr. 11, 2024 | Mar. 31, 2024 | Apr. 09, 2024 | Dec. 31, 2023 | |
Subsequent Event [Line Items] | ||||
Trading investments | $ 58,166 | $ 54,481 | ||
Vertical risk retention interest | 5% | |||
Subsequent Event | SMB Private Education Loan Trust 2024-B | ||||
Subsequent Event [Line Items] | ||||
Vertical risk retention interest | 5% | |||
Private Education Loans | Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Trading investments | $ 69,000 | |||
Private Education Loans | Subsequent Event | SMB Private Education Loan Trust 2024-B | ||||
Subsequent Event [Line Items] | ||||
Private education loans sold | $ 191,000 | |||
Additional proceeds from sale | 10,000 | |||
Gain on sale | $ 1,000 |