0001628280-18-012761.txt : 20181022 0001628280-18-012761.hdr.sgml : 20181022 20181022172135 ACCESSION NUMBER: 0001628280-18-012761 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 90 CONFORMED PERIOD OF REPORT: 20180930 FILED AS OF DATE: 20181022 DATE AS OF CHANGE: 20181022 FILER: COMPANY DATA: COMPANY CONFORMED NAME: SLM Corp CENTRAL INDEX KEY: 0001032033 STANDARD INDUSTRIAL CLASSIFICATION: PERSONAL CREDIT INSTITUTIONS [6141] IRS NUMBER: 522013874 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-13251 FILM NUMBER: 181132842 BUSINESS ADDRESS: STREET 1: 300 CONTINENTAL DRIVE CITY: NEWARK STATE: DE ZIP: 19713 BUSINESS PHONE: (302) 283-8000 MAIL ADDRESS: STREET 1: 300 CONTINENTAL DRIVE CITY: NEWARK STATE: DE ZIP: 19713 FORMER COMPANY: FORMER CONFORMED NAME: SLM CORP DATE OF NAME CHANGE: 20030326 FORMER COMPANY: FORMER CONFORMED NAME: SALLIE MAE DATE OF NAME CHANGE: 20020517 FORMER COMPANY: FORMER CONFORMED NAME: USA EDUCATION INC DATE OF NAME CHANGE: 20000801 10-Q 1 slm-3q201810xq.htm 10-Q Document
false--12-31Q320182018-09-300001032033435661454falseLarge Accelerated FilerfalseSLM0P2YP1Y600000169600086660000.200.20112500000011250000004435000004498000000.00780.00760.00770.01380.01360.01150.00930.008001.742.152.860.201000.2010020000000200000004000000400000001110000014100000 0001032033 2018-01-01 2018-09-30 0001032033 2018-09-30 0001032033 2017-12-31 0001032033 us-gaap:SeriesBPreferredStockMember 2018-09-30 0001032033 us-gaap:SeriesBPreferredStockMember 2017-12-31 0001032033 2017-01-01 2017-09-30 0001032033 2017-07-01 2017-09-30 0001032033 2018-07-01 2018-09-30 0001032033 us-gaap:CommonStockMember 2017-09-30 0001032033 us-gaap:PreferredStockMember 2016-12-31 0001032033 2016-12-31 0001032033 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-01-01 2017-09-30 0001032033 us-gaap:TreasuryStockMember 2017-01-01 2017-09-30 0001032033 us-gaap:CommonStockMember 2017-01-01 2017-09-30 0001032033 us-gaap:TreasuryStockMember 2017-09-30 0001032033 us-gaap:SeriesAPreferredStockMember us-gaap:PreferredStockMember 2017-01-01 2017-09-30 0001032033 us-gaap:AdditionalPaidInCapitalMember 2016-12-31 0001032033 us-gaap:AdditionalPaidInCapitalMember 2017-01-01 2017-09-30 0001032033 us-gaap:RetainedEarningsMember 2017-09-30 0001032033 us-gaap:PreferredStockMember 2017-09-30 0001032033 us-gaap:SeriesAPreferredStockMember 2017-01-01 2017-09-30 0001032033 us-gaap:TreasuryStockMember 2016-12-31 0001032033 us-gaap:RetainedEarningsMember 2017-01-01 2017-09-30 0001032033 us-gaap:SeriesAPreferredStockMember us-gaap:RetainedEarningsMember 2017-01-01 2017-09-30 0001032033 us-gaap:SeriesBPreferredStockMember us-gaap:RetainedEarningsMember 2017-01-01 2017-09-30 0001032033 us-gaap:CommonStockMember 2016-12-31 0001032033 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-09-30 0001032033 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2016-12-31 0001032033 us-gaap:RetainedEarningsMember 2016-12-31 0001032033 us-gaap:AdditionalPaidInCapitalMember 2017-09-30 0001032033 us-gaap:SeriesBPreferredStockMember 2017-01-01 2017-09-30 0001032033 2017-09-30 0001032033 us-gaap:CommonStockMember 2018-01-01 2018-09-30 0001032033 us-gaap:AdditionalPaidInCapitalMember 2018-01-01 2018-09-30 0001032033 us-gaap:AccountingStandardsUpdate201712Member us-gaap:RetainedEarningsMember 2017-12-31 0001032033 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-30 0001032033 us-gaap:TreasuryStockMember 2018-09-30 0001032033 us-gaap:TreasuryStockMember 2017-12-31 0001032033 us-gaap:PreferredStockMember 2017-12-31 0001032033 us-gaap:PreferredStockMember 2018-09-30 0001032033 us-gaap:AccountingStandardsUpdate201712Member us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001032033 us-gaap:TreasuryStockMember 2018-01-01 2018-09-30 0001032033 us-gaap:RetainedEarningsMember 2018-01-01 2018-09-30 0001032033 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-09-30 0001032033 us-gaap:AdditionalPaidInCapitalMember 2017-12-31 0001032033 us-gaap:CommonStockMember 2017-12-31 0001032033 us-gaap:CommonStockMember 2018-09-30 0001032033 us-gaap:RetainedEarningsMember 2018-09-30 0001032033 us-gaap:AdditionalPaidInCapitalMember 2018-09-30 0001032033 us-gaap:SeriesBPreferredStockMember us-gaap:RetainedEarningsMember 2018-01-01 2018-09-30 0001032033 us-gaap:RetainedEarningsMember 2017-12-31 0001032033 us-gaap:AccountingStandardsUpdate201712Member 2017-12-31 0001032033 us-gaap:SeriesBPreferredStockMember 2018-01-01 2018-09-30 0001032033 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2017-12-31 0001032033 us-gaap:AccountingStandardsUpdate201712Member us-gaap:FairValueHedgingMember 2018-07-01 2018-07-01 0001032033 us-gaap:AccountingStandardsUpdate201712Member us-gaap:CashFlowHedgingMember us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-09-30 0001032033 us-gaap:AccountingStandardsUpdate201712Member us-gaap:CashFlowHedgingMember us-gaap:RetainedEarningsMember 2018-09-30 0001032033 us-gaap:AccountingStandardsUpdate201712Member us-gaap:FairValueHedgingMember us-gaap:RetainedEarningsMember 2018-07-01 0001032033 us-gaap:AccountingStandardsUpdate201712Member us-gaap:FairValueHedgingMember 2018-07-01 0001032033 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2018-01-01 2018-03-31 0001032033 us-gaap:RetainedEarningsMember 2018-01-01 2018-03-31 0001032033 slm:HousingCorporateBondsMemberMember 2017-12-31 0001032033 us-gaap:MortgageBackedSecuritiesMember 2018-09-30 0001032033 us-gaap:MortgageBackedSecuritiesMember 2017-12-31 0001032033 slm:HousingCorporateBondsMemberMember 2018-09-30 0001032033 srt:MoodysAa3RatingMember slm:HousingCorporateBondsMemberMember 2018-09-30 0001032033 us-gaap:MortgageBackedSecuritiesMember 2018-06-30 0001032033 us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember 2018-09-30 0001032033 srt:MoodysAa3RatingMember slm:HousingCorporateBondsMemberMember 2017-12-31 0001032033 us-gaap:FederalHomeLoanMortgageCorporationCertificatesAndObligationsFHLMCMember 2018-09-30 0001032033 us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember us-gaap:MortgageBackedSecuritiesMember 2017-12-31 0001032033 us-gaap:MortgageBackedSecuritiesMember 2018-04-01 2018-06-30 0001032033 us-gaap:FederalNationalMortgageAssociationCertificatesAndObligationsFNMAMember 2018-09-30 0001032033 us-gaap:GovernmentNationalMortgageAssociationCertificatesAndObligationsGNMAMember us-gaap:MortgageBackedSecuritiesMember 2018-09-30 0001032033 slm:Maturingin2047Member 2018-09-30 0001032033 slm:Maturingin2044Member 2018-09-30 0001032033 slm:Maturingin2048Member 2018-09-30 0001032033 slm:Maturingin2045Member 2018-09-30 0001032033 slm:Maturingin2038Member 2018-09-30 0001032033 slm:Maturingin2046Member 2018-09-30 0001032033 slm:Maturingin2042Member 2018-09-30 0001032033 slm:Maturingin2043Member 2018-09-30 0001032033 slm:Maturingin2039Member 2018-09-30 0001032033 us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember 2018-01-01 2018-09-30 0001032033 slm:PersonalLoansMember 2017-01-01 2017-09-30 0001032033 slm:PrivateEducationLoansMember 2017-01-01 2017-09-30 0001032033 slm:PrivateEducationLoansMember 2018-01-01 2018-09-30 0001032033 slm:PersonalLoansMember 2018-01-01 2018-09-30 0001032033 us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember 2017-01-01 2017-09-30 0001032033 us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember 2017-07-01 2017-09-30 0001032033 slm:PrivateEducationLoansMember 2018-07-01 2018-09-30 0001032033 slm:PrivateEducationLoansMember 2017-07-01 2017-09-30 0001032033 slm:PersonalLoansMember 2017-07-01 2017-09-30 0001032033 slm:PersonalLoansMember 2018-07-01 2018-09-30 0001032033 us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember 2018-07-01 2018-09-30 0001032033 2006-07-01 0001032033 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember 2018-04-01 2018-06-30 0001032033 2006-06-30 0001032033 2017-01-01 2017-12-31 0001032033 us-gaap:DiscontinuedOperationsDisposedOfBySaleMember 2018-06-30 0001032033 1993-09-30 0001032033 us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember 2018-09-30 0001032033 slm:PersonalLoansMember 2017-12-31 0001032033 slm:PrivateEducationLoansMember us-gaap:FixedIncomeInterestRateMember 2018-09-30 0001032033 slm:PrivateEducationLoansMember 2017-12-31 0001032033 slm:PrivateEducationLoansMember us-gaap:FixedIncomeInterestRateMember 2017-12-31 0001032033 slm:PrivateEducationLoansMember 2018-09-30 0001032033 slm:PersonalLoansMember 2018-09-30 0001032033 us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember 2017-12-31 0001032033 slm:PrivateEducationLoansMember us-gaap:VariableIncomeInterestRateMember 2018-09-30 0001032033 slm:PrivateEducationLoansMember us-gaap:VariableIncomeInterestRateMember 2017-12-31 0001032033 us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember 2016-12-31 0001032033 slm:PersonalLoansMember 2017-01-01 2017-09-30 0001032033 slm:PrivateEducationLoansMember 2017-09-30 0001032033 slm:PrivateEducationLoansMember 2017-01-01 2017-09-30 0001032033 slm:PrivateEducationLoansMember 2016-12-31 0001032033 us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember 2017-01-01 2017-09-30 0001032033 us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember 2017-09-30 0001032033 slm:PersonalLoansMember 2017-09-30 0001032033 slm:PersonalLoansMember 2016-12-31 0001032033 us-gaap:ConsumerPortfolioSegmentMember slm:PersonalLoansMember 2018-09-30 0001032033 us-gaap:ConsumerPortfolioSegmentMember slm:PersonalLoansMember 2017-12-31 0001032033 us-gaap:ConsumerPortfolioSegmentMember slm:PersonalLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2017-12-31 0001032033 us-gaap:ConsumerPortfolioSegmentMember slm:PersonalLoansMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2017-12-31 0001032033 us-gaap:ConsumerPortfolioSegmentMember slm:PersonalLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-09-30 0001032033 us-gaap:ConsumerPortfolioSegmentMember slm:PersonalLoansMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-09-30 0001032033 us-gaap:ConsumerPortfolioSegmentMember slm:PersonalLoansMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2017-12-31 0001032033 us-gaap:ConsumerPortfolioSegmentMember slm:PersonalLoansMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-09-30 0001032033 slm:PrivateEducationLoansMember 2018-09-30 0001032033 slm:PrivateEducationLoansMember 2018-01-01 2018-09-30 0001032033 us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember 2018-09-30 0001032033 slm:PersonalLoansMember 2018-09-30 0001032033 slm:PersonalLoansMember 2017-12-31 0001032033 slm:PersonalLoansMember 2018-01-01 2018-09-30 0001032033 us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember 2018-01-01 2018-09-30 0001032033 us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember 2017-12-31 0001032033 slm:PrivateEducationLoansMember 2017-12-31 0001032033 slm:SchoolFicoMember slm:PersonalLoansMember slm:FICOscore700749Member us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:RepaymentsMember slm:PersonalLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromMoreThanFortyEightPaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:SchoolFicoMember slm:PersonalLoansMember slm:FICOscore670699Member us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:SchoolFicoMember slm:PersonalLoansMember slm:FICOscoregreaterthan750Member us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:RepaymentsMember slm:PersonalLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromMoreThanFortyEightPaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:SchoolFicoMember slm:PersonalLoansMember slm:FICOscore700749Member us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:RepaymentsMember slm:PersonalLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:RepaymentsMember slm:PersonalLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromThirtySevenToFortyEightPaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:RepaymentsMember slm:PersonalLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromTwentyFiveToThirtySixPaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:RepaymentsMember slm:PersonalLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:RepaymentsMember slm:PersonalLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromTwentyFiveToThirtySixPaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:SchoolFicoMember slm:PersonalLoansMember slm:FICOscorelessthan670Member us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:SchoolFicoMember slm:PersonalLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:RepaymentsMember slm:PersonalLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromOneToTwelvePaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:RepaymentsMember slm:PersonalLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromThirtySevenToFortyEightPaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:SchoolFicoMember slm:PersonalLoansMember slm:FICOscorelessthan670Member us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:RepaymentsMember slm:PersonalLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromOneToTwelvePaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:SchoolFicoMember slm:PersonalLoansMember slm:FICOscoregreaterthan750Member us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:SchoolFicoMember slm:PersonalLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:SchoolFicoMember slm:PersonalLoansMember slm:FICOscore670699Member us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:RepaymentsMember slm:PersonalLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromThirteenToTwentyFourPaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:RepaymentsMember slm:PersonalLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromThirteenToTwentyFourPaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:WithCosignerMember slm:PrivateEducationLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:SchoolFicoMember slm:PrivateEducationLoansMember slm:FICOscore700749Member us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:RepaymentsMember slm:PrivateEducationLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:SchoolFicoMember slm:PrivateEducationLoansMember slm:FICOscore670699Member us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:RepaymentsMember slm:PrivateEducationLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromThirtySevenToFortyEightPaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:RepaymentsMember slm:PrivateEducationLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:WithoutCosignerMember slm:PrivateEducationLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:RepaymentsMember slm:PrivateEducationLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromNotYetInRepaymentMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:WithCosignerMember slm:PrivateEducationLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:RepaymentsMember slm:PrivateEducationLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromThirtySevenToFortyEightPaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:RepaymentsMember slm:PrivateEducationLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromThirteenToTwentyFourPaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:SchoolFicoMember slm:PrivateEducationLoansMember slm:FICOscore670699Member us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:CosignerMember slm:PrivateEducationLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:WithoutCosignerMember slm:PrivateEducationLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:SchoolFicoMember slm:PrivateEducationLoansMember slm:FICOscorelessthan670Member us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:RepaymentsMember slm:PrivateEducationLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromTwentyFiveToThirtySixPaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:RepaymentsMember slm:PrivateEducationLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromNotYetInRepaymentMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:SchoolFicoMember slm:PrivateEducationLoansMember slm:FICOscoregreaterthan750Member us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:RepaymentsMember slm:PrivateEducationLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromOneToTwelvePaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:SchoolFicoMember slm:PrivateEducationLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:RepaymentsMember slm:PrivateEducationLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromOneToTwelvePaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:SchoolFicoMember slm:PrivateEducationLoansMember slm:FICOscoregreaterthan750Member us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:RepaymentsMember slm:PrivateEducationLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromMoreThanFortyEightPaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:CosignerMember slm:PrivateEducationLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:SchoolFicoMember slm:PrivateEducationLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:SchoolFicoMember slm:PrivateEducationLoansMember slm:FICOscore700749Member us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:RepaymentsMember slm:PrivateEducationLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromThirteenToTwentyFourPaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:RepaymentsMember slm:PrivateEducationLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromMoreThanFortyEightPaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:SchoolFicoMember slm:PrivateEducationLoansMember slm:FICOscorelessthan670Member us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:RepaymentsMember slm:PrivateEducationLoansMember slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromTwentyFiveToThirtySixPaymentsMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember 2018-07-01 2018-09-30 0001032033 slm:PersonalLoansMember 2018-07-01 2018-09-30 0001032033 slm:PrivateEducationLoansMember 2018-07-01 2018-09-30 0001032033 slm:PersonalLoansMember 2018-06-30 0001032033 2018-06-30 0001032033 us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember 2018-06-30 0001032033 slm:PrivateEducationLoansMember 2018-06-30 0001032033 us-gaap:ConsumerPortfolioSegmentMember slm:PrivateEducationLoansMember 2018-09-30 0001032033 us-gaap:ConsumerPortfolioSegmentMember slm:PrivateEducationLoansMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-09-30 0001032033 us-gaap:ConsumerPortfolioSegmentMember slm:PrivateEducationLoansMember 2017-12-31 0001032033 us-gaap:ConsumerPortfolioSegmentMember slm:PrivateEducationLoansMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2017-12-31 0001032033 us-gaap:ConsumerPortfolioSegmentMember slm:PrivateEducationLoansMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2017-12-31 0001032033 us-gaap:ConsumerPortfolioSegmentMember slm:PrivateEducationLoansMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-09-30 0001032033 us-gaap:ConsumerPortfolioSegmentMember slm:PrivateEducationLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-09-30 0001032033 us-gaap:ConsumerPortfolioSegmentMember slm:PrivateEducationLoansMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2017-12-31 0001032033 us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember 2017-07-01 2017-09-30 0001032033 slm:PersonalLoansMember 2017-07-01 2017-09-30 0001032033 slm:PersonalLoansMember 2017-06-30 0001032033 slm:PrivateEducationLoansMember 2017-07-01 2017-09-30 0001032033 2017-06-30 0001032033 us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember 2017-06-30 0001032033 slm:PrivateEducationLoansMember 2017-06-30 0001032033 slm:TroubledDebtRestructuredLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2018-09-30 0001032033 slm:TroubledDebtRestructuredLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2018-09-30 0001032033 slm:TroubledDebtRestructuredLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember 2017-12-31 0001032033 slm:TroubledDebtRestructuredLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember us-gaap:FinancingReceivables60To89DaysPastDueMember 2017-12-31 0001032033 slm:TroubledDebtRestructuredLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2018-09-30 0001032033 slm:TroubledDebtRestructuredLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2017-12-31 0001032033 slm:TroubledDebtRestructuredLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember us-gaap:FinancingReceivables30To59DaysPastDueMember 2017-12-31 0001032033 slm:TroubledDebtRestructuredLoansMember us-gaap:ConsumerPortfolioSegmentMember us-gaap:StudentLoanMember us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember 2018-09-30 0001032033 slm:PrivateEducationLoanSecuritizationMember us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2018-09-30 0001032033 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2018-09-30 0001032033 slm:ABCPBorrowingsMember us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2018-09-30 0001032033 slm:PrivateEducationLoans2018TermBMember 2018-06-20 0001032033 slm:SeniorUnsecuredNotesDueApril52022Member us-gaap:UnsecuredDebtMember 2017-04-05 0001032033 slm:PrivateEducationLoans2018TermCMember 2018-09-19 2018-09-19 0001032033 slm:PrivateEducationLoans2018TermAMember 2018-03-21 0001032033 slm:PrivateEducationLoans2018TermBMember 2018-09-30 0001032033 slm:PrivateEducationLoans2018TermAMember 2018-09-30 0001032033 slm:ClassAandBNotesMember 2018-06-20 2018-06-20 0001032033 slm:PrivateEducationLoans2018TermAMember 2018-03-21 2018-03-21 0001032033 slm:ClassAandBNotesMember 2018-09-19 2018-09-19 0001032033 srt:MaximumMember us-gaap:CommercialPaperMember slm:ABCPBorrowingsMember 2018-02-21 2018-02-21 0001032033 slm:PrivateEducationLoans2018TermCMember 2018-09-30 0001032033 slm:SeniorUnsecuredNotesDueApril52022Member us-gaap:UnsecuredDebtMember 2018-09-30 0001032033 us-gaap:CommercialPaperMember slm:ABCPBorrowingsMember 2018-09-30 0001032033 slm:ClassAandBNotesMember 2018-03-21 2018-03-21 0001032033 slm:PrivateEducationLoans2018TermCMember 2018-09-19 0001032033 slm:ClassAandBNotesMember us-gaap:LondonInterbankOfferedRateLIBORMember 2018-03-21 2018-03-21 0001032033 srt:MinimumMember us-gaap:CommercialPaperMember slm:ABCPBorrowingsMember 2018-02-21 2018-02-21 0001032033 us-gaap:CommercialPaperMember slm:ABCPBorrowingsMember 2018-02-21 2018-02-21 0001032033 slm:ClassAandBNotesMember us-gaap:LondonInterbankOfferedRateLIBORMember 2018-09-19 2018-09-19 0001032033 slm:PrivateEducationLoans2018TermBMember 2018-06-20 2018-06-20 0001032033 us-gaap:CommercialPaperMember slm:ABCPBorrowingsMember 2018-02-21 0001032033 slm:ClassAandBNotesMember us-gaap:LondonInterbankOfferedRateLIBORMember 2018-06-20 2018-06-20 0001032033 us-gaap:CommercialPaperMember slm:ABCPBorrowingsMember us-gaap:LondonInterbankOfferedRateLIBORMember 2018-02-21 2018-02-21 0001032033 slm:Issuance2016BMember 2016-07-31 0001032033 slm:Issuance2017BMember 2017-11-01 2017-11-30 0001032033 slm:Issuance2018CMember 2018-09-30 0001032033 slm:Issuance2016AMember 2016-05-31 2016-05-31 0001032033 slm:Issuance2016BMember 2016-07-31 2016-07-31 0001032033 slm:Issuance2017AMember 2017-02-28 0001032033 slm:Issuance2018BMember 2018-06-01 2018-06-30 0001032033 slm:Issuance2016AMember 2016-05-31 0001032033 slm:Issuance2017BMember 2017-11-30 0001032033 slm:Issuance2018AMember 2018-03-31 0001032033 slm:Issuance2016CMember 2016-10-31 0001032033 slm:Issuance2018CMember 2018-09-01 2018-09-30 0001032033 slm:Issuance2017AMember 2017-02-28 2017-02-28 0001032033 slm:Issuance2016CMember 2016-10-31 2016-10-31 0001032033 slm:Issuance2018AMember 2018-03-01 2018-03-31 0001032033 slm:Issuance2018BMember 2018-06-30 0001032033 slm:ABCPBorrowingsMember us-gaap:SecuredDebtMember 2017-12-31 0001032033 slm:PrivateEducationLoanSecuritizationMember us-gaap:SecuredDebtMember us-gaap:VariableIncomeInterestRateMember 2018-09-30 0001032033 slm:PrivateEducationLoanSecuritizationMember us-gaap:SecuredDebtMember 2018-09-30 0001032033 us-gaap:UnsecuredDebtMember 2018-09-30 0001032033 us-gaap:SecuredDebtMember 2017-12-31 0001032033 slm:ABCPBorrowingsMember us-gaap:SecuredDebtMember 2018-09-30 0001032033 us-gaap:SecuredDebtMember 2018-09-30 0001032033 us-gaap:UnsecuredDebtMember 2017-12-31 0001032033 slm:PrivateEducationLoanSecuritizationMember us-gaap:SecuredDebtMember us-gaap:VariableIncomeInterestRateMember 2017-12-31 0001032033 slm:PrivateEducationLoanSecuritizationMember us-gaap:SecuredDebtMember us-gaap:FixedIncomeInterestRateMember 2017-12-31 0001032033 slm:PrivateEducationLoanSecuritizationMember us-gaap:SecuredDebtMember us-gaap:FixedIncomeInterestRateMember 2018-09-30 0001032033 slm:PrivateEducationLoanSecuritizationMember us-gaap:SecuredDebtMember 2017-12-31 0001032033 slm:PrivateEducationLoanSecuritizationMember us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2017-12-31 0001032033 slm:ABCPBorrowingsMember us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2017-12-31 0001032033 us-gaap:VariableInterestEntityPrimaryBeneficiaryMember 2017-12-31 0001032033 slm:Issuance2016AMember us-gaap:LondonInterbankOfferedRateLIBORMember 2016-05-31 0001032033 slm:Issuance2018BMember 2018-09-30 0001032033 slm:Issuance2018AMember 2018-06-30 0001032033 slm:Issuance2017AMember us-gaap:LondonInterbankOfferedRateLIBORMember 2017-02-28 0001032033 slm:Issuance2016CMember us-gaap:LondonInterbankOfferedRateLIBORMember 2016-10-31 0001032033 slm:Issuance2016BMember us-gaap:LondonInterbankOfferedRateLIBORMember 2016-07-31 0001032033 us-gaap:CommercialPaperMember slm:ABCPBorrowingsMember 2017-12-31 0001032033 us-gaap:DepositsMember 2017-12-31 0001032033 us-gaap:DepositsMember 2018-09-30 0001032033 slm:LondonClearingHouseMember 2018-01-01 2018-09-30 0001032033 exch:XCME 2018-01-01 2018-09-30 0001032033 slm:LondonClearingHouseMember 2018-09-30 0001032033 exch:XCME 2018-09-30 0001032033 us-gaap:NondesignatedMember 2018-01-01 2018-09-30 0001032033 us-gaap:NondesignatedMember 2017-01-01 2017-09-30 0001032033 us-gaap:DesignatedAsHedgingInstrumentMember 2018-07-01 2018-09-30 0001032033 us-gaap:NondesignatedMember 2017-07-01 2017-09-30 0001032033 us-gaap:DesignatedAsHedgingInstrumentMember 2017-07-01 2017-09-30 0001032033 us-gaap:DesignatedAsHedgingInstrumentMember 2018-01-01 2018-09-30 0001032033 us-gaap:DesignatedAsHedgingInstrumentMember 2017-01-01 2017-09-30 0001032033 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-07-01 2018-09-30 0001032033 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2017-07-01 2017-09-30 0001032033 us-gaap:NondesignatedMember 2018-07-01 2018-09-30 0001032033 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2018-01-01 2018-09-30 0001032033 us-gaap:DesignatedAsHedgingInstrumentMember us-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMember 2017-01-01 2017-09-30 0001032033 us-gaap:InterestRateSwapMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001032033 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2017-12-31 0001032033 us-gaap:InterestRateSwapMember 2018-09-30 0001032033 us-gaap:InterestRateSwapMember 2017-12-31 0001032033 us-gaap:InterestRateSwapMember us-gaap:CashFlowHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-09-30 0001032033 us-gaap:InterestRateSwapMember us-gaap:NondesignatedMember 2018-09-30 0001032033 us-gaap:InterestRateSwapMember us-gaap:FairValueHedgingMember us-gaap:DesignatedAsHedgingInstrumentMember 2018-09-30 0001032033 us-gaap:InterestRateSwapMember us-gaap:NondesignatedMember 2017-12-31 0001032033 us-gaap:OtherLiabilitiesMember 2018-09-30 0001032033 us-gaap:OtherAssetsMember 2017-12-31 0001032033 us-gaap:OtherAssetsMember 2018-09-30 0001032033 us-gaap:OtherLiabilitiesMember 2017-12-31 0001032033 us-gaap:CommonStockMember 2018-09-28 0001032033 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-09-30 0001032033 us-gaap:CertificatesOfDepositMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2017-12-31 0001032033 us-gaap:CertificatesOfDepositMember 2018-09-30 0001032033 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2017-12-31 0001032033 us-gaap:CarryingReportedAmountFairValueDisclosureMember 2017-12-31 0001032033 us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-09-30 0001032033 us-gaap:CertificatesOfDepositMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-09-30 0001032033 slm:MoneyMarketandSavingsAccountsMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2018-09-30 0001032033 slm:MoneyMarketandSavingsAccountsMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-09-30 0001032033 us-gaap:CertificatesOfDepositMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2017-12-31 0001032033 us-gaap:CertificatesOfDepositMember 2017-12-31 0001032033 slm:MoneyMarketandSavingsAccountsMember us-gaap:CarryingReportedAmountFairValueDisclosureMember 2017-12-31 0001032033 slm:MoneyMarketandSavingsAccountsMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2017-12-31 0001032033 us-gaap:CertificatesOfDepositMember us-gaap:EstimateOfFairValueFairValueDisclosureMember 2018-09-30 0001032033 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2018-09-30 0001032033 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2017-12-31 0001032033 us-gaap:FairValueMeasurementsRecurringMember 2017-12-31 0001032033 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2017-12-31 0001032033 us-gaap:FairValueMeasurementsRecurringMember 2018-09-30 0001032033 us-gaap:FairValueInputsLevel1Member us-gaap:FairValueMeasurementsRecurringMember 2017-12-31 0001032033 us-gaap:FairValueInputsLevel2Member us-gaap:FairValueMeasurementsRecurringMember 2018-09-30 0001032033 us-gaap:FairValueInputsLevel3Member us-gaap:FairValueMeasurementsRecurringMember 2018-09-30 0001032033 2016-07-01 2016-09-30 0001032033 2014-04-30 xbrli:shares iso4217:USD xbrli:shares iso4217:USD slm:security xbrli:pure slm:charge_off



 
 
 
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form 10-Q
 
(Mark One)
þ
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 2018
or
¨
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from              to             
Commission File Number: 001-13251
 
SLM Corporation
(Exact name of registrant as specified in its charter)
 
Delaware
52-2013874
(State or other jurisdiction of
incorporation or organization)
(I.R.S. Employer
Identification No.)
 
 
300 Continental Drive, Newark, Delaware
19713
(Address of principal executive offices)
(Zip Code)
(302) 451-0200
(Registrant’s telephone number, including area code)
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  þ    No  ¨
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
  þ
 
Accelerated filer
  ¨ 
Non-accelerated filer
  ¨
(Do not check if a smaller reporting company)
Smaller reporting company
  ¨
Emerging growth company
  ¨
 
 
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ¨
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  þ    No  ¨
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes ¨ No þ 
Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:
 
Class
Outstanding at September 30, 2018
Common Stock, $0.20 par value
435,661,454 shares
 
 






SLM CORPORATION

CONSOLIDATED FINANCIAL STATEMENTS
INDEX





2



SLM CORPORATION
CONSOLIDATED BALANCE SHEETS
(In thousands, except share and per share amounts)
(Unaudited)
 
 
 
September 30,
 
December 31,
 
 
2018
 
2017
Assets
 
 
 
 
Cash and cash equivalents
 
$
1,839,054

 
$
1,534,339

Available-for-sale investments at fair value (cost of $181,785 and $247,607, respectively)
 
172,370

 
244,088

Loans held for investment (net of allowance for losses of $328,974 and $251,475, respectively)
 
21,978,903

 
18,567,641

Restricted cash
 
115,658

 
101,836

Other interest-earning assets
 
32,071

 
21,586

Accrued interest receivable
 
1,270,026

 
967,482

Premises and equipment, net
 
105,058

 
89,748

Income taxes receivable, net
 
22,102

 

Tax indemnification receivable
 
54,941

 
168,011

Other assets
 
101,000

 
84,853

Total assets
 
$
25,691,183

 
$
21,779,584

 
 
 
 
 
Liabilities
 
 
 
 
Deposits
 
$
17,873,293

 
$
15,505,383

Long-term borrowings
 
4,532,221

 
3,275,270

Income taxes payable, net
 

 
102,285

Upromise member accounts
 
226,176

 
243,080

Other liabilities
 
219,158

 
179,310

Total liabilities
 
22,850,848

 
19,305,328

 
 
 
 
 
Commitments and contingencies
 

 

 
 
 
 
 
Equity
 
 
 
 
Preferred stock, par value $0.20 per share, 20 million shares authorized:
 
 
 
 
Series B: 4 million and 4 million shares issued, respectively, at stated value of $100 per share
 
400,000

 
400,000

Common stock, par value $0.20 per share, 1.125 billion shares authorized: 449.8 million and 443.5 million shares issued, respectively
 
89,962

 
88,693

Additional paid-in capital
 
1,268,763

 
1,222,277

Accumulated other comprehensive income (net of tax expense of $8,666 and $1,696, respectively)
 
27,012

 
2,748

Retained earnings
 
1,196,895

 
868,182

Total SLM Corporation stockholders’ equity before treasury stock
 
2,982,632

 
2,581,900

Less: Common stock held in treasury at cost: 14.1 million and 11.1 million shares, respectively
 
(142,297
)
 
(107,644
)
Total equity
 
2,840,335

 
2,474,256

Total liabilities and equity
 
$
25,691,183

 
$
21,779,584


See accompanying notes to consolidated financial statements.

3



SLM CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)
(Unaudited)
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2018
 
2017
 
2018
 
2017
Interest income:
 
 
 
 
 
 
 
 
Loans
 
$
485,997

 
$
359,610

 
$
1,370,090

 
$
1,021,106

Investments
 
1,340

 
1,928

 
4,981

 
6,272

Cash and cash equivalents
 
10,260

 
4,686

 
22,068

 
10,429

Total interest income
 
497,597

 
366,224

 
1,397,139

 
1,037,807

Interest expense:
 
 
 
 
 
 
 
 
Deposits
 
105,093

 
61,890

 
273,154

 
157,473

Interest expense on short-term borrowings
 
1,156

 
1,804

 
4,677

 
4,234

Interest expense on long-term borrowings
 
34,715

 
20,469

 
89,111

 
56,070

Total interest expense
 
140,964

 
84,163

 
366,942

 
217,777

Net interest income
 
356,633

 
282,061

 
1,030,197

 
820,030

Less: provisions for credit losses
 
70,047

 
54,930

 
187,245

 
130,441

Net interest income after provisions for credit losses
 
286,586

 
227,131

 
842,952

 
689,589

Non-interest (loss) income:
 
 
 
 
 
 
 
 
Gains on sales of loans, net
 

 

 
2,060

 

Losses on sales of securities, net
 

 

 
(1,549
)
 

(Losses) gains on derivatives and hedging activities, net
 
(4,949
)
 
1,661

 
(6,325
)
 
(7,326
)
Other (loss) income
 
(80,702
)
 
4,455

 
(58,765
)
 
26,430

Total non-interest (loss) income
 
(85,651
)
 
6,116

 
(64,579
)
 
19,104

Non-interest expenses:
 
 
 
 
 
 
 
 
Compensation and benefits
 
62,260

 
51,052

 
190,822

 
157,523

FDIC assessment fees
 
9,136

 
7,626

 
25,933

 
21,477

Other operating expenses
 
79,236

 
57,464

 
193,974

 
151,070

Total operating expenses
 
150,632

 
116,142

 
410,729

 
330,070

Acquired intangible asset amortization expense
 
92

 
117

 
276

 
351

Total non-interest expenses
 
150,724

 
116,259

 
411,005

 
330,421

Income before income tax (benefit) expense
 
50,211

 
116,988

 
367,368

 
378,272

Income tax (benefit) expense
 
(53,667
)
 
40,617

 
27,404

 
136,341

Net income
 
103,878

 
76,371

 
339,964

 
241,931

Preferred stock dividends
 
4,124

 
3,028

 
11,441

 
12,577

Net income attributable to SLM Corporation common stock
 
$
99,754

 
$
73,343

 
$
328,523

 
$
229,354

Basic earnings per common share attributable to SLM Corporation
 
$
0.23

 
$
0.17

 
$
0.76

 
$
0.53

Average common shares outstanding
 
435,468

 
431,718

 
434,875

 
430,958

Diluted earnings per common share attributable to SLM Corporation
 
$
0.23

 
$
0.17

 
$
0.75

 
$
0.52

Average common and common equivalent shares outstanding
 
440,019

 
438,419

 
439,484

 
438,422





See accompanying notes to consolidated financial statements.

4



SLM CORPORATION
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(In thousands)
(Unaudited)
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
September 30,
 
September 30,
 
 
2018
 
2017
 
2018
 
2017
Net income
 
$
103,878

 
$
76,371

 
$
339,964

 
$
241,931

Other comprehensive income (loss):
 
 
 
 
 
 
 
 
Unrealized (losses) gains on investments
 
(1,811
)
 
734

 
(5,896
)
 
(666
)
Unrealized gains on cash flow hedges
 
6,556

 
4,814

 
36,860

 
7,564

Total unrealized gains
 
4,745

 
5,548

 
30,964

 
6,898

Income tax expense
 
(1,219
)
 
(2,113
)
 
(7,562
)
 
(2,644
)
Other comprehensive income, net of tax expense
 
3,526

 
3,435

 
23,402

 
4,254

Total comprehensive income
 
$
107,404

 
$
79,806

 
$
363,366

 
$
246,185


















See accompanying notes to consolidated financial statements.

5



SLM CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In thousands, except share and per share amounts)
(Unaudited)


 
 
 
 
Common Stock Shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Stock Shares
 
Issued
 
Treasury
 
Outstanding
 
Preferred Stock
 
Common Stock
 
Additional Paid-In Capital
 
Accumulated
Other
Comprehensive
Income (Loss)
 
Retained Earnings
 
Treasury Stock
 
Total Equity
Balance at December 31, 2016
 
7,300,000

 
436,632,479

 
(7,728,920
)
 
428,903,559

 
$
565,000

 
$
87,327

 
$
1,175,564

 
$
(8,671
)
 
$
595,322

 
$
(67,484
)
 
$
2,347,058

Net income
 

 

 

 

 

 

 

 

 
241,931

 

 
241,931

Other comprehensive income, net of tax
 

 

 

 

 

 

 

 
4,254

 

 

 
4,254

Total comprehensive income
 

 

 

 

 

 

 

 

 

 

 
246,185

Cumulative effect of the adoption of the stock compensation standard amendment
 

 

 

 

 

 

 
429

 

 
(264
)
 

 
165

Cash dividends:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Stock, Series A ($1.74 per share)
 

 

 

 

 

 

 

 

 
(3,961
)
 

 
(3,961
)
Preferred Stock, Series B ($2.15 per share)
 

 

 

 

 

 

 

 

 
(8,616
)
 

 
(8,616
)
Redemption of Series A Preferred Stock
 
(3,300,000
)
 

 

 

 
(165,000
)
 

 

 

 

 

 
(165,000
)
Dividend equivalent units related to employee stock-based compensation plans
 

 

 

 

 

 

 
96

 

 
(96
)
 

 

Issuance of common shares
 

 
5,652,886

 

 
5,652,886

 

 
1,131

 
15,336

 

 

 

 
16,467

Stock-based compensation expense
 

 

 

 

 

 

 
21,773

 

 

 

 
21,773

Shares repurchased related to employee stock-based compensation plans
 

 

 
(2,666,781
)
 
(2,666,781
)
 

 

 

 

 

 
(32,231
)
 
(32,231
)
Balance at September 30, 2017
 
4,000,000

 
442,285,365

 
(10,395,701
)
 
431,889,664

 
$
400,000

 
$
88,458

 
$
1,213,198

 
$
(4,417
)
 
$
824,316

 
$
(99,715
)
 
$
2,421,840









See accompanying notes to consolidated financial statements.

6




SLM CORPORATION
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
(In thousands, except share and per share amounts)
(Unaudited)


 
 
 
 
 
Common Stock Shares
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Stock Shares
 
Issued
 
Treasury
 
Outstanding
 
Preferred Stock
 
Common Stock
 
Additional Paid-In Capital
 
Accumulated
Other
Comprehensive
Income
 
Retained Earnings
 
Treasury Stock
 
Total Equity
Balance at December 31, 2017
 
4,000,000

 
443,463,587

 
(11,087,337
)
 
432,376,250

 
$
400,000

 
$
88,693

 
$
1,222,277

 
$
2,748

 
$
868,182

 
$
(107,644
)
 
$
2,474,256

Net income
 

 

 

 

 

 

 

 

 
339,964

 

 
339,964

Other comprehensive income, net of tax
 

 

 

 

 

 

 

 
23,402

 

 

 
23,402

Total comprehensive income
 

 

 

 

 

 

 

 

 

 

 
363,366

Reclassification resulting from the adoption of ASU No. 2018-02
 

 

 

 

 

 

 

 
592

 
(592
)
 

 

Reclassification resulting from the adoption of the ASU No. 2017-12
 

 

 

 

 

 

 

 
270

 
782

 

 
1,052

Cash dividends:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Preferred Stock, Series B ($2.86 per share)
 

 

 

 

 

 

 

 

 
(11,441
)
 

 
(11,441
)
Issuance of common shares
 

 
6,341,950

 

 
6,341,950

 

 
1,269

 
20,658

 

 

 

 
21,927

Stock-based compensation expense
 

 

 

 

 

 

 
25,828

 

 

 

 
25,828

Shares repurchased related to employee stock-based compensation plans
 

 

 
(3,056,746
)
 
(3,056,746
)
 

 

 

 

 

 
(34,653
)
 
(34,653
)
Balance at September 30, 2018
 
4,000,000

 
449,805,537

 
(14,144,083
)
 
435,661,454

 
$
400,000

 
$
89,962

 
$
1,268,763

 
$
27,012

 
$
1,196,895

 
$
(142,297
)
 
$
2,840,335














See accompanying notes to consolidated financial statements.

7



SLM CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)

 
 
Nine Months Ended
 
 
September 30,
 
 
2018
 
2017
Operating activities
 
 
 
 
Net income
 
$
339,964

 
$
241,931

Adjustments to reconcile net income to net cash (used in) provided by operating activities:
 
 
 
 
Provisions for credit losses
 
187,245

 
130,441

Income tax expense
 
27,404

 
136,341

Amortization of brokered deposit placement fee
 
9,378

 
6,831

Amortization of ABCP Facility upfront fee
 
851

 
995

Amortization of deferred loan origination costs and loan premium/(discounts), net
 
8,039

 
6,122

Net amortization of discount on investments
 
1,344

 
1,504

Reduction of tax indemnification receivable
 
86,079

 
311

Depreciation of premises and equipment
 
9,977

 
8,194

Amortization of acquired intangibles
 
276

 
351

Stock-based compensation expense
 
25,828

 
21,773

Unrealized losses on derivatives and hedging activities, net
 
6,065

 
6,931

Gains on sales of loans, net
 
(2,060
)
 

Losses on sales of securities, net
 
1,549

 

Other adjustments to net income, net
 
5,428

 
4,601

Changes in operating assets and liabilities:
 
 
 
 
Increase in accrued interest receivable
 
(628,959
)
 
(506,451
)
(Increase) decrease in other interest-earning assets
 
(10,485
)
 
17,811

Decrease in tax indemnification receivable
 
26,991

 
44,725

Increase in other assets
 
(60,903
)
 
(53,275
)
Decrease in income taxes payable, net
 
(156,502
)
 
(217,235
)
Increase in accrued interest payable
 
27,265

 
15,240

Decrease in payable due to entity that is a subsidiary of Navient
 
(676
)
 
(305
)
Increase in other liabilities
 
3,502

 
6,143

Total adjustments
 
(432,364
)
 
(368,952
)
Total net cash used in operating activities
 
(92,400
)
 
(127,021
)
Investing activities
 
 
 
 
Loans acquired and originated
 
(5,570,195
)
 
(4,314,711
)
Net proceeds from sales of loans held for investment
 
44,832

 
5,497

Proceeds from claim payments
 
38,492

 
34,759

Net decrease in loans held for investment
 
2,208,681

 
1,488,087

Purchases of available-for-sale securities
 
(7,914
)
 
(55,569
)
Proceeds from sales and maturities of available-for-sale securities
 
70,843

 
29,452

Total net cash used in investing activities
 
(3,215,261
)
 
(2,812,485
)
Financing activities
 
 
 
 
Brokered deposit placement fee
 
(25,104
)
 
(9,668
)
Net increase in certificates of deposit
 
1,953,644

 
1,087,486

Net increase in other deposits
 
458,472

 
516,343

Borrowings collateralized by loans in securitization trusts - issued
 
1,890,912

 
767,245

Borrowings collateralized by loans in securitization trusts - repaid
 
(639,190
)
 
(397,106
)
Issuance costs for unsecured debt offering
 

 
(1,057
)
Unsecured debt issued
 

 
197,000

Borrowings under ABCP Facility
 
300,000

 
300,000

Repayment of borrowings under ABCP Facility
 
(300,000
)
 

Fees paid on ABCP Facility
 
(1,095
)
 
(1,281
)

8



Redemption of Preferred Stock Series A
 

 
(165,000
)
Preferred stock dividends paid
 
(11,441
)
 
(12,577
)
Net cash provided by financing activities
 
3,626,198

 
2,281,385

Net increase (decrease) in cash, cash equivalents and restricted cash
 
318,537

 
(658,121
)
Cash, cash equivalents and restricted cash at beginning of period
 
1,636,175

 
1,972,510

Cash, cash equivalents and restricted cash at end of period
 
$
1,954,712

 
$
1,314,389

Cash disbursements made for:
 
 
 
 
Interest
 
$
327,798

 
$
191,488

Income taxes paid
 
$
161,248

 
$
216,321

Income taxes refunded
 
$
(5,174
)
 
$
(986
)
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Balance Sheets:
 
 
 
 
Cash and cash equivalents
 
$
1,839,054

 
$
1,247,764

Restricted cash
 
115,658

 
66,625

Total cash, cash equivalents and restricted cash
 
$
1,954,712

 
$
1,314,389

See accompanying notes to consolidated financial statements.

9





SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Dollars in thousands, unless otherwise noted)
 
 
 


1. Significant Accounting Policies

Basis of Presentation
The accompanying unaudited, consolidated financial statements of SLM Corporation (“Sallie Mae,” “SLM,” the “Company,” “we,” or “us”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all the information and footnotes required by GAAP for complete consolidated financial statements. The consolidated financial statements include the accounts of SLM Corporation and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three and nine months ended September 30, 2018 are not necessarily indicative of the results for the year ending December 31, 2018 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, 2017 (the “2017 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: (1) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE.
Recently Issued and Adopted Accounting Pronouncements
ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash”
In November 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash.” Whereas restricted cash balances have traditionally been excluded from the statement of cash flows, this ASU requires restricted cash and restricted cash equivalents to be included within the beginning and ending totals of cash, cash equivalents and restricted cash presented on the statement of cash flows for all periods presented. Restricted cash and restricted cash equivalent inflows and outflows with external parties are required to be classified within the operating, investing, and/or financing activity sections of the statement of cash flows, whereas transfers between cash and cash equivalents and restricted cash and restricted cash equivalents should no longer be presented on the statement of cash flows. ASU No. 2016-18 also requires (a) the nature of the restrictions to be disclosed to help provide information about the sources and uses of these balances during a reporting period and (b) a reconciliation of the cash, cash equivalents and restricted cash totals on the statement of cash flows to the related balance sheet line items when cash, cash equivalents, and restricted cash are presented in more than one line item on the balance sheet. The reconciliation can be presented either on the face of the statement of cash flows or in the notes to the financial statements and must be provided for each period that a balance sheet is presented. We adopted the new accounting pronouncement on January 1, 2018, and the adoption did not have a material impact to our statement of cash flows.

10





SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, unless otherwise noted)
1.
Significant Accounting Policies (Continued)
 



ASU No. 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities”
On August 28, 2017, the FASB issued ASU No. 2017-12, “Derivatives and Hedging: Targeted Improvements to Accounting for Hedging Activities,” which (a) improves the financial reporting of hedging relationships to better portray the economic results of an entity's risk management activities in its financial statements and (b) makes certain targeted improvements to simplify the application of the hedge accounting guidance. The effective date for the standard is January 1, 2019, with early adoption permitted. We elected to early adopt the standard effective July 1, 2018. One of the key changes is that the standard eliminates the separate measurement and reporting of hedge ineffectiveness. In accordance with the new standard, certain provisions were required to be applied on a modified retrospective basis, which requires a cumulative effect adjustment to accumulated other comprehensive income with a corresponding adjustment to retained earnings as of the beginning of the fiscal year of adoption, or January 1, 2018 in our case.
The accounting for derivative instruments requires that every derivative instrument, including certain derivative instruments embedded in other contracts, be recorded on the balance sheet as either an asset or liability measured at fair value. Our derivative instruments are classified and accounted for by us as fair value hedges, cash flow hedges, or trading hedges.
Fair Value Hedges
We generally use fair value hedges to offset the exposure to changes in fair value of a recognized fixed-rate liability. We enter into interest rate swaps to economically convert fixed-rate liabilities into variable-rate liabilities. For fair value hedges, we generally consider all components of the derivative’s gain and/or loss when assessing hedge effectiveness and generally hedge changes in fair values due to interest rates. Under the new standard, for fair value hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in the same line item in the consolidated statements of income that is used to present the earnings effect of the hedged component of the hedged item. The timing of recognition of the change in fair value of a hedging instrument included in the assessment of hedge effectiveness is the same as prior to the adoption of ASU No. 2017-12.
Cash Flow Hedges
We use cash flow hedges to hedge the exposure to variability in cash flows of floating-rate liabilities. This strategy is used primarily to minimize the exposure to volatility in cash flows from future changes in interest rates. In assessing hedge effectiveness, generally all components of each derivative’s gains or losses are included in the assessment. We hedge exposure to changes in cash flows due to changes in interest rates or total changes in cash flow. Under the new standard, for cash flow hedges, the entire change in the fair value of the hedging instrument included in the assessment of hedge effectiveness is recorded in other comprehensive income (loss). Those amounts are subsequently reclassified to earnings, in the same line item in the consolidated statements of income as impacted by the hedged item, when the hedged item affects earnings.
Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate deposits. During the next twelve months, we estimate that $7 million will be reclassified as an increase to interest expense.
Trading Activities
When derivative instruments do not qualify for hedge accounting treatment, they are accounted for at fair value with all changes in fair value recorded through earnings. All of our derivative instruments with maturities of less than 3 years are economically hedging risk, but do not receive hedge accounting treatment. Trading derivatives also include any hedges that originally received hedge accounting treatment, but lost hedge accounting treatment due to failed effectiveness testing, as well as the activity of certain derivatives prior to those derivatives receiving hedge accounting treatment.



11





SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, unless otherwise noted)
1.
Significant Accounting Policies (Continued)
 


Cumulative effect of applying the new standard

As a result of the cumulative effect of applying the new hedging standard to our fair value hedges on July 1, 2018, we recorded a $2.0 million basis increase to our hedged deposit balances with a corresponding increase to retained earnings of approximately $1.0 million and a $3.0 million loss to “gains (losses) on derivatives and hedging activities, net” in our consolidated statements of income to adjust the life-to-date ineffectiveness. To reflect the adoption of the new hedging standard on our cash flow hedging relationships at July 1, 2018, we recorded a $0.3 million decrease to retained earnings and a corresponding $0.3 million increase to accumulated other comprehensive income.

The new standard also requires modifications to existing presentation and disclosure requirements. We did not apply adjustments to our prior period consolidated balance sheets or consolidated statements of income as a result of adopting the new hedging standard. However, certain disclosures within the notes to the financial statements set forth in this report, regarding the three and nine month periods ended September 30, 2017, conform to the disclosure requirements of ASU No. 2017-12. For further details, refer to Note 7, “Derivative Financial Instruments.”
ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income”
In February 2018, the FASB issued ASU No. 2018-02, “Income Statement - Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income,” which allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the tax law and tax rate changes under the Tax Cuts and Jobs Act of 2017 (the “Tax Act”) enacted on December 22, 2017. Under the Tax Act, deferred taxes were adjusted to reflect the reduction of the historical corporate income tax rate to the newly enacted corporate income tax rate, which left the tax effects on items within accumulated other comprehensive income stranded at an inappropriate tax rate. This guidance is effective for fiscal years beginning after December 15, 2018, and for interim periods within those fiscal years, with early adoption permitted. We adopted this standard effective January 1, 2018 and recorded a $0.6 million reclass from accumulated other comprehensive income to retained earnings in the first quarter of 2018.


12





SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, unless otherwise noted)

2. Investments

The amortized cost and fair value of securities available for sale are as follows:

 
 
September 30, 2018
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
Available for sale:
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
$
159,397

 
$
92

 
$
(8,046
)
 
$
151,443

Utah Housing Corporation bonds
 
22,388

 

 
(1,461
)
 
20,927

Total
 
$
181,785

 
$
92

 
$
(9,507
)
 
$
172,370

 
 
 
 
 
 
 
 
 
 
 
December 31, 2017
 
 
Amortized Cost
 
Gross Unrealized Gains
 
Gross Unrealized Losses
 
Estimated Fair Value
Available for sale:
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
$
227,607

 
$
650

 
$
(3,210
)
 
$
225,047

Utah Housing Corporation bonds
 
20,000

 

 
(959
)
 
19,041

Total
 
$
247,607

 
$
650

 
$
(4,169
)
 
$
244,088




13





SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, unless otherwise noted)
2.
Investments (Continued)
 

The following table summarizes the amount of gross unrealized losses for our mortgage-backed securities and Utah Housing Corporation bonds and the estimated fair value for securities having gross unrealized losses, categorized by length of time the securities have been in an unrealized loss position:
 
 
Less than 12 months
 
12 months or more
 
Total
 
 
Gross Unrealized Losses
 
Estimated Fair Value
 
Gross Unrealized Losses
 
Estimated Fair Value
 
Gross Unrealized Losses
 
Estimated Fair Value
As of September 30, 2018:
 
 
 
 
 
 
 
 
 
 
 
 
Mortgage-backed securities
 
$
(1,768
)