Parent Only Statements

The following parent company-only financial information should be read in conjunction with the other notes to the consolidated financial statements. The accounting policies for the parent company-only financial statements are the same as those used in the presentation of the consolidated financial statements other than the parent company-only financial statements account for the parent company’s investments in its subsidiaries under the equity method.

Parent Only Condensed Balance Sheets



	December 31,
	2017			2016
Assets
Cash and cash equivalents	$	260,255		$	292,277
Total investments in subsidiaries (primarily Sallie Mae Bank)	2,401,114			2,042,015
Tax indemnification receivable	168,011			259,532
Due from subsidiaries, net	37,521			31,834
Other assets	1,279			1,561
Total assets	$	2,868,180		$	2,627,219

Liabilities and Equity
Liabilities
Long-term borrowings	$	196,539		$	—
Income taxes payable, net	159,954			256,556
Payable due to Navient	10,575			2,823
Other liabilities	26,856			20,782
Total liabilities	393,924			280,161

Equity
Preferred stock, par value $0.20 per share, 20 million shares authorized:
Series A: 0 and 3.3 million shares issued, respectively, at stated value of $50 per share	—			165,000
Series B: 4 million and 4 million shares issued, respectively, at stated value of $100 per share	400,000			400,000
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 443.5 million and 436.6 million shares issued, respectively	88,693			87,327
Additional paid-in capital	1,222,277			1,175,564
Accumulated other comprehensive income (loss) (net of tax expense (benefit) of $1,696 and ($5,364), respectively)	2,748			(8,671		)
Retained earnings	868,182			595,322
Total SLM Corporation stockholders’ equity before treasury stock	2,581,900			2,414,542
Less: Common stock held in treasury at cost: 11.1 million and 7.7 million shares, respectively	(107,644		)	(67,484		)
Total equity	2,474,256			2,347,058
Total liabilities and equity	$	2,868,180		$	2,627,219

Parent Only Condensed Statements of Income



	Years Ended December 31,
	2017			2016			2015

Interest income	$	5,497		$	5,367		$	6,414
Interest expense	8,170			—			—
Net interest income	(2,673		)	5,367			6,414

Non-interest income (loss)	(33,956		)	9,396			(239		)
Non-interest expenses	35,810			32,553			36,141

Loss before income tax benefit and equity in net income from subsidiaries	(72,439		)	(17,790		)	(29,966		)
Income tax benefit	(40,598		)	(2,839		)	(8,612		)
Equity in net income from subsidiaries (primarily Sallie Mae Bank)	320,775			265,278			295,638
Net income	288,934			250,327			274,284
Preferred stock dividends	15,714			21,204			19,595
Net income attributable to SLM Corporation common stock	$	273,220		$	229,123		$	254,689

Parent Only Condensed Statements of Cash Flows



	Years Ended December 31,
	2017			2016			2015

Cash flows from operating activities:
Net income	$	288,934		$	250,327		$	274,284
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Undistributed earnings of subsidiaries	(320,775		)	(265,278		)	(295,638		)
Loss (income) on tax indemnification receivable	31,888			(12,283		)	(5,398		)
Amortization of unsecured debt upfront fees	596			—			—
Decrease (increase) in investment in subsidiaries, net	1,158			63,222			(103,602		)
Decrease in tax indemnification receivable	59,633			59,633			59,633
(Increase) decrease in due from subsidiaries, net	(5,687		)	(10,438		)	11,012
Increase in other assets	(24,627		)	(8,972		)	(14,366		)
Decrease in income taxes payable, net	(87,983		)	(54,175		)	(53,167		)
(Decrease) increase in payable due to entity that is a subsidiary of Navient	(593		)	553			(6,774		)
Increase in other liabilities	10,205			8,856			1,402
Total adjustments	(336,185		)	(218,882		)	(406,898		)
Net cash (used in) provided by operating activities	(47,251		)	31,445			(132,614		)

Cash flows from investing activities:
Net cash provided by (used in) investing activities	—			—			—

Cash flows from financing activities:
Unsecured debt issued	197,000			—			—
Issuance costs for unsecured debt offering	(1,057		)	—			—
Redemption of Series A Preferred Stock	(165,000		)	—			—
Preferred stock dividends paid	(15,714		)	(21,204		)	(19,595		)
Net cash provided by (used in) financing activities	15,229			(21,204		)	(19,595		)
Net (decrease) increase in cash and cash equivalents	(32,022		)	10,241			(152,209		)
Cash and cash equivalents at beginning of year	292,277			282,036			434,245
Cash and cash equivalents at end of year	$	260,255		$	292,277		$	282,036