XML 36 R23.htm IDEA: XBRL DOCUMENT v3.7.0.1
Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2017
Receivables [Abstract]  
Allowance for credit losses and recorded investments in loans
Allowance for Loan Losses Metrics
 
 
Allowance for Loan Losses
 
 
Three Months Ended June 30, 2017
 
 
FFELP
Loans
 
Private
Education
Loans
 
Personal
Loans
 
Total
Allowance for Loan Losses
 
 
 
 
 
 
 
 
Beginning balance
 
$
1,637

 
$
185,103

 
$
346

 
$
187,086

Total provision
 
228

 
49,166

 
492

 
49,886

Net charge-offs:
 


 


 


 


Charge-offs
 
(259
)
 
(32,728
)
 
(20
)
 
(33,007
)
Recoveries
 
—

 
4,396

 
—

 
4,396

Net charge-offs
 
(259
)
 
(28,332
)
 
(20
)
 
(28,611
)
Loan sales(1)
 
—

 
(913
)
 
—

 
(913
)
Ending Balance
 
$
1,606

 
$
205,024

 
$
818

 
$
207,448

Allowance:
 

 

 

 

Ending balance: individually evaluated for impairment
 
$
—

 
$
95,177

 
$
—

 
$
95,177

Ending balance: collectively evaluated for impairment
 
$
1,606

 
$
109,847

 
$
818

 
$
112,271

Loans:
 

 

 

 

Ending balance: individually evaluated for impairment
 
$
—

 
$
803,456

 
$
—

 
$
803,456

Ending balance: collectively evaluated for impairment
 
$
967,237

 
$
14,876,001

 
$
69,508

 
$
15,912,746

Net charge-offs as a percentage of average loans in repayment (annualized)(2)
 
0.14
%
 
1.08
%
 
0.13
%
 

Allowance as a percentage of the ending total loan balance
 
0.17
%
 
1.31
%
 
1.18
%
 

Allowance as a percentage of the ending loans in repayment(2)
 
0.21
%
 
1.93
%
 
1.18
%
 

Allowance coverage of net charge-offs (annualized)
 
1.55

 
1.81

 
10.23

 

Ending total loans, gross
 
$
967,237

 
$
15,679,457

 
$
69,508

 

Average loans in repayment(2)
 
$
757,186

 
$
10,523,225

 
$
61,439

 

Ending loans in repayment(2)
 
$
765,980

 
$
10,615,105

 
$
69,508

 

____________
(1) Represents fair value adjustments on loans sold.
(2) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period.
     
 
 
Allowance for Loan Losses
 
 
Three Months Ended June 30, 2016
 
 
FFELP Loans
 
Private Education
Loans
 
Total
Allowance for Loan Losses
 
 
 
 
 
 
Beginning balance
 
$
3,629

 
$
122,620

 
$
126,249

Total provision
 
(985
)
 
42,362

 
41,377

Net charge-offs:
 
 
 
 
 
 
Charge-offs
 
(347
)
 
(23,903
)
 
(24,250
)
Recoveries
 
—

 
3,082

 
3,082

Net charge-offs
 
(347
)
 
(20,821
)
 
(21,168
)
Loan sales(1)
 
—

 
(1,533
)
 
(1,533
)
Ending Balance
 
$
2,297

 
$
142,628

 
$
144,925

Allowance:
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
63,370

 
$
63,370

Ending balance: collectively evaluated for impairment
 
$
2,297

 
$
79,258

 
$
81,555

Loans:
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
400,969

 
$
400,969

Ending balance: collectively evaluated for impairment
 
$
1,061,517

 
$
11,889,740

 
$
12,951,257

Net charge-offs as a percentage of average loans in repayment (annualized)(2)
 
0.18
%
 
1.05
%
 
 
Allowance as a percentage of the ending total loan balance
 
0.22
%
 
1.16
%
 
 
Allowance as a percentage of the ending loans in repayment(2)
 
0.30
%
 
1.78
%
 
 
Allowance coverage of net charge-offs (annualized)
 
1.65

 
1.71

 
 
Ending total loans, gross
 
$
1,061,517

 
$
12,290,709

 
 
Average loans in repayment(2)
 
$
786,818

 
$
7,894,340

 
 
Ending loans in repayment(2)
 
$
773,321

 
$
8,029,034

 
 
____________
    
(1) Represents fair value adjustments on loans sold.
(2) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period.

 
 
Allowance for Loan Losses
 
 
Six Months Ended June 30, 2017
 
 
FFELP
Loans
 
Private
Education
Loans
 
Personal
Loans
 
Total
Allowance for Loan Losses
 
 
 
 
 
 
 
 
Beginning balance
 
$
2,171

 
$
182,472

 
$
58

 
$
184,701

Total provision
 
(88
)
 
75,986

 
780

 
76,678

Net charge-offs:
 
 
 
 
 
 
 
 
Charge-offs
 
(477
)
 
(58,955
)
 
(20
)
 
(59,452
)
Recoveries
 
—

 
7,655

 
—

 
7,655

Net charge-offs
 
(477
)
 
(51,300
)
 
(20
)
 
(51,797
)
Loan sales(1)
 
—

 
(2,134
)
 
—

 
(2,134
)
Ending Balance
 
$
1,606

 
$
205,024

 
$
818

 
$
207,448

Allowance:
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
95,177

 
$
—

 
$
95,177

Ending balance: collectively evaluated for impairment
 
$
1,606

 
$
109,847

 
$
818

 
$
112,271

Loans:
 
 
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
803,456

 
$
—

 
$
803,456

Ending balance: collectively evaluated for impairment
 
$
967,237

 
$
14,876,001

 
$
69,508

 
$
15,912,746

Net charge-offs as a percentage of average loans in repayment (annualized)(2)
 
0.12
%
 
0.99
%
 
0.08
%
 
 
Allowance as a percentage of the ending total loan balance
 
0.17
%
 
1.31
%
 
1.18
%
 
 
Allowance as a percentage of the ending loans in repayment(2)
 
0.21
%
 
1.93
%
 
1.18
%
 
 
Allowance coverage of net charge-offs (annualized)
 
1.68

 
2.00

 
20.45

 
 
Ending total loans, gross
 
$
967,237

 
$
15,679,457

 
$
69,508

 
 
Average loans in repayment(2)
 
$
765,347

 
$
10,375,463

 
$
47,654

 
 
Ending loans in repayment(2)
 
$
765,980

 
$
10,615,105

 
$
69,508

 
 

____________
    
(1) Represents fair value adjustments on loans sold.
(2) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period.



 
 
Allowance for Loan Losses
 
 
Six Months Ended June 30, 2016
 
 
FFELP Loans
 
Private Education
Loans
 
Total
Allowance for Loan Losses
 
 
 
 
 
 
Beginning balance
 
$
3,691

 
$
108,816

 
$
112,507

Total provision
 
(664
)
 
76,201

 
75,537

Net charge-offs:
 
 
 
 
 
 
Charge-offs
 
(730
)
 
(42,907
)
 
(43,637
)
Recoveries
 
—

 
4,125

 
4,125

Net charge-offs
 
(730
)
 
(38,782
)
 
(39,512
)
Loan sales(1)
 
—

 
(3,607
)
 
(3,607
)
Ending Balance
 
$
2,297

 
$
142,628

 
$
144,925

Allowance:
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
63,370

 
$
63,370

Ending balance: collectively evaluated for impairment
 
$
2,297

 
$
79,258

 
$
81,555

Loans:
 
 
 
 
 
 
Ending balance: individually evaluated for impairment
 
$
—

 
$
400,969

 
$
400,969

Ending balance: collectively evaluated for impairment
 
$
1,061,517

 
$
11,889,740

 
$
12,951,257

Net charge-offs as a percentage of average loans in repayment (annualized)(2)
 
0.18
%
 
1.01
%
 
 
Allowance as a percentage of the ending total loan balance
 
0.22
%
 
1.16
%
 
 
Allowance as a percentage of the ending loans in repayment(2)
 
0.30
%
 
1.78
%
 
 
Allowance coverage of net charge-offs (annualized)
 
1.57

 
1.84

 
 
Ending total loans, gross
 
$
1,061,517

 
$
12,290,709

 
 
Average loans in repayment(2)
 
$
794,665

 
$
7,695,889

 
 
Ending loans in repayment(2)
 
$
773,321

 
$
8,029,034

 
 
Impaired financing receivables
The following table provides the recorded investment, unpaid principal balance and related allowance for our TDR loans.
 
 
Recorded Investment
 
Unpaid Principal Balance
 
Allowance
 
 
 
 
 
 
 
June 30, 2017
 
 
 
 
 
 
TDR Loans
 
$
815,515

 
$
803,456

 
$
95,177

 
 
 
 
 
 
 
December 31, 2016
 
 
 
 
 
 
TDR Loans
 
$
620,991

 
$
612,606

 
$
86,930
Average recorded investment and interest income recognized for troubled debt restructuring loans
The following table provides the average recorded investment and interest income recognized for our TDR loans.
 
 
Three Months Ended 
 June 30,
 
 
2017
 
2016
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
 
 
 
 
 
 
 
 
TDR Loans
 
$
766,171

 
$
14,310

 
$
364,882

 
$
6,697



    

 
 
Six Months Ended 
 June 30,
 
 
2017
 
2016
 
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
Average
Recorded
Investment
 
Interest
Income
Recognized
 
 
 
 
 
 
 
 
 
TDR Loans
 
$
718,727

 
$
26,567

 
$
332,292

 
$
12,280
Age analysis of past due loans delinquencies
The following table provides information regarding the loan status and aging of TDR loans.

 
 
June 30,
 
December 31,
 
 
2017
 
2016
 
 
Balance
 
%
 
Balance
 
%
TDR loans in in-school/grace/deferment(1)
 
$
33,693

 
 
 
$
24,185

 
 
TDR loans in forbearance(2)
 
98,710

 
 
 
71,851

 
 
TDR loans in repayment(3) and percentage of each status:
 
 
 
 
 
 
 
 
Loans current
 
603,215

 
89.9
%
 
462,187

 
89.5
%
Loans delinquent 31-60 days(4)
 
35,120

 
5.2

 
28,452

 
5.5

Loans delinquent 61-90 days(4)
 
20,170

 
3.0

 
17,326

 
3.4

Loans delinquent greater than 90 days(4)
 
12,548

 
1.9

 
8,605

 
1.6

Total TDR loans in repayment
 
671,053

 
100.0
%
 
516,570

 
100.0
%
Total TDR loans, gross
 
$
803,456

 
 
 
$
612,606

 
 
_____
(1) 
Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation).
(2) 
Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures.
(3) 
Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period.
(4) 
The period of delinquency is based on the number of days scheduled payments are contractually past due.
 The following table provides information regarding the loan status of our Private Education Loans. Loans in repayment include loans making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period.

 
 
Private Education Loans
 
 
June 30,
 
December 31,
 
 
2017
 
2016
 
 
Balance
 
%
 
Balance
 
%
Loans in-school/grace/deferment(1)
 
$
4,707,396

 
 
 
$
4,189,955

 
 
Loans in forbearance(2)
 
356,956

 
 
 
351,962

 
 
Loans in repayment and percentage of each status:
 
 
 
 
 
 
 
 
Loans current
 
10,385,289

 
97.8
%
 
9,509,394

 
97.9
%
Loans delinquent 31-60 days(3)
 
132,108

 
1.3

 
124,773

 
1.3

Loans delinquent 61-90 days(3)
 
67,371

 
0.6

 
51,423

 
0.5

Loans delinquent greater than 90 days(3)
 
30,337

 
0.3

 
24,168

 
0.3

Total Private Education Loans in repayment
 
10,615,105

 
100.0
%
 
9,709,758

 
100.0
%
Total Private Education Loans, gross
 
15,679,457

 
 
 
14,251,675

 
 
Private Education Loans deferred origination costs
 
48,905

 
 
 
44,206

 
 
Total Private Education Loans
 
15,728,362

 
 
 
14,295,881

 
 
Private Education Loans allowance for losses
 
(205,024
)
 
 
 
(182,472
)
 
 
Private Education Loans, net
 
$
15,523,338

 
 
 
$
14,113,409

 
 
Percentage of Private Education Loans in repayment
 
 
 
67.7
%
 
 
 
68.1
%
Delinquencies as a percentage of Private Education Loans in repayment
 
 
 
2.2
%
 
 
 
2.1
%
Loans in forbearance as a percentage of Private Education Loans in repayment and forbearance
 
 
 
3.3
%
 
 
 
3.5
%
(1)
Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation).
(2)
Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures.
(3) 
The period of delinquency is based on the number of days scheduled payments are contractually past due.
Modified loans accounts for troubled debt restructuring
The following table provides the amount of modified loans (which includes forbearance and reductions in interest rates) that became TDRs in the periods presented. Additionally, for the periods presented, the table summarizes charge-offs occurring in the TDR portfolio, as well as TDRs for which a payment default occurred in the relevant period presented and within 12 months of the loan first being designated as a TDR. We define payment default as more than 60 days past due for this disclosure.

 
 
Three Months Ended 
 June 30, 2017
 
Three Months Ended 
 June 30, 2016
 
 
Modified Loans(1)
 
Charge-offs
 
Payment-
Default
 
Modified Loans(1)
 
Charge-offs
 
Payment-
Default
 
 
 
 
 
 
 
 
 
 
 
 
 
TDR Loans
 
$
134,489

 
$
12,215

 
$
23,679

 
$
92,782

 
$
5,464

 
$
21,388



 
 
Six Months Ended 
 June 30, 2017
 
Six Months Ended 
 June 30, 2016
 
 
Modified Loans(1)
 
Charge-offs
 
Payment-
Default
 
Modified Loans(1)
 
Charge-offs
 
Payment-
Default
 
 
 
 
 
 
 
 
 
 
 
 
 
TDR Loans
 
$
246,695

 
$
22,738

 
$
49,113

 
$
153,848

 
$
10,432

 
$
47,089

_____
(1) 
Represents the principal balance of loans that have been modified during the period and resulted in a TDR.
Private education loan portfolio stratified by key credit quality indicators
The following table highlights the gross principal balance of our Personal Loan portfolio stratified by key credit quality indicators.

 
 
Personal Loans
 
 
Credit Quality Indicators
 
 
June 30, 2017
 
December 31, 2016
Credit Quality Indicators:
 
Balance(1)
 
% of Balance
 
Balance(1)
 
% of Balance
 
 
 
 
 
 
 
 
 
FICO at Original Approval:
 
 
 
 
 
 
 
 
Less than 670
 
$
5,367

 
8
%
 
$
1,189

 
9
%
670-699
 
20,137

 
29

 
3,139

 
24

700-749
 
31,974

 
46

 
5,678

 
44

Greater than or equal to 750
 
12,030

 
17

 
2,888

 
23

Total
 
$
69,508

 
100
%
 
$
12,894

 
100
%
 
 
 
 
 
 
 
 
 
Seasoning(2):
 
 
 
 
 
 
 
 
0-12 payments
 
$
69,508

 
100
%
 
$
12,894

 
100
%
13-24 payments
 
—

 
—

 
—

 
—

25-36 payments
 
—

 
—

 
—

 
—

37-48 payments
 
—

 
—

 
—

 
—

More than 48 payments
 
—

 
—

 
—

 
—

Total
 
$
69,508

 
100
%
 
$
12,894

 
100
%
(1) 
Balance represents gross Personal Loans.
(2) 
Number of months in active repayment for which a scheduled payment was due.
The following table highlights the gross principal balance of our Private Education Loan portfolio stratified by key credit quality indicators.

 
 
Private Education Loans
 
 
Credit Quality Indicators
 
 
June 30, 2017
 
December 31, 2016
Credit Quality Indicators:
 
Balance(1)
 
% of Balance
 
Balance(1)
 
% of Balance
 
 
 
 
 
 
 
 
 
Cosigners:
 
 
 
 
 
 
 
 
With cosigner
 
$
14,079,677

 
90
%
 
$
12,816,512

 
90
%
Without cosigner
 
1,599,780

 
10

 
1,435,163

 
10

Total
 
$
15,679,457

 
100
%
 
$
14,251,675

 
100
%
 
 
 
 
 
 
 
 
 
FICO at Original Approval(2):
 
 
 
 
 
 
 
 
Less than 670
 
$
1,016,829

 
6
%
 
$
920,132

 
6
%
670-699
 
2,314,571

 
15

 
2,092,722

 
15

700-749
 
5,128,665

 
33

 
4,639,958

 
33

Greater than or equal to 750
 
7,219,392

 
46

 
6,598,863

 
46

Total
 
$
15,679,457

 
100
%
 
$
14,251,675

 
100
%
 
 
 
 
 
 
 
 
 
Seasoning(3):
 
 
 
 
 
 
 
 
1-12 payments
 
$
4,291,633

 
27
%
 
$
3,737,110

 
26
%
13-24 payments
 
2,931,945

 
19

 
2,841,107

 
20

25-36 payments
 
1,965,406

 
13

 
1,839,764

 
13

37-48 payments
 
990,248

 
6

 
917,633

 
7

More than 48 payments
 
792,829

 
5

 
726,106

 
5

Not yet in repayment
 
4,707,396

 
30

 
4,189,955

 
29

Total
 
$
15,679,457

 
100
%
 
$
14,251,675

 
100
%

(1) 
Balance represents gross Private Education Loans.
(2) 
Represents the higher credit score of the cosigner or the borrower.
(3) 
Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due.
Accrued interest receivable
The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans greater than 90 days past due as compared to our allowance for uncollectible interest. The allowance for uncollectible interest exceeds the amount of accrued interest on our 90 days past due Private Education Loan portfolio for all periods presented.
 
 
Private Education Loan
 
 
Accrued Interest Receivable
 
 
Total Interest Receivable
 
Greater Than 90 Days Past Due
 
Allowance for Uncollectible Interest
 
 
 
 
 
 
 
June 30, 2017
 
$
913,080

 
$
1,107

 
$
4,522

December 31, 2016
 
$
739,847

 
$
845

 
$
2,898