slm-20220331false2022Q1000103203312/31P3YP1MP2M00010320332022-01-012022-03-310001032033slm:CommonStockParValue20PerShareMember2022-01-012022-03-310001032033slm:FloatingRateNonCumulativePreferredStockSeriesBParValue20PerShareMember2022-01-012022-03-3100010320332022-03-31xbrli:sharesiso4217:USD00010320332021-12-31iso4217:USDxbrli:shares00010320332021-01-012021-03-310001032033us-gaap:PreferredStockMember2020-12-310001032033us-gaap:CommonStockMember2020-12-310001032033us-gaap:TreasuryStockMember2020-12-310001032033us-gaap:AdditionalPaidInCapitalMember2020-12-310001032033us-gaap:AccumulatedOtherComprehensiveIncomeMember2020-12-310001032033us-gaap:RetainedEarningsMember2020-12-3100010320332020-12-310001032033us-gaap:RetainedEarningsMember2021-01-012021-03-310001032033us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001032033us-gaap:SeriesBPreferredStockMember2021-01-012021-03-310001032033us-gaap:RetainedEarningsMemberus-gaap:SeriesBPreferredStockMember2021-01-012021-03-310001032033us-gaap:AdditionalPaidInCapitalMember2021-01-012021-03-310001032033us-gaap:CommonStockMember2021-01-012021-03-310001032033us-gaap:TreasuryStockMember2021-01-012021-03-310001032033us-gaap:PreferredStockMember2021-03-310001032033us-gaap:CommonStockMember2021-03-310001032033us-gaap:TreasuryStockMember2021-03-310001032033us-gaap:AdditionalPaidInCapitalMember2021-03-310001032033us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-03-310001032033us-gaap:RetainedEarningsMember2021-03-3100010320332021-03-310001032033us-gaap:PreferredStockMember2021-12-310001032033us-gaap:CommonStockMember2021-12-310001032033us-gaap:TreasuryStockMember2021-12-310001032033us-gaap:AdditionalPaidInCapitalMember2021-12-310001032033us-gaap:AccumulatedOtherComprehensiveIncomeMember2021-12-310001032033us-gaap:RetainedEarningsMember2021-12-310001032033us-gaap:RetainedEarningsMember2022-01-012022-03-310001032033us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001032033us-gaap:SeriesBPreferredStockMember2022-01-012022-03-310001032033us-gaap:RetainedEarningsMemberus-gaap:SeriesBPreferredStockMember2022-01-012022-03-310001032033us-gaap:AdditionalPaidInCapitalMember2022-01-012022-03-310001032033us-gaap:CommonStockMember2022-01-012022-03-310001032033us-gaap:TreasuryStockMember2022-01-012022-03-310001032033us-gaap:PreferredStockMember2022-03-310001032033us-gaap:CommonStockMember2022-03-310001032033us-gaap:TreasuryStockMember2022-03-310001032033us-gaap:AdditionalPaidInCapitalMember2022-03-310001032033us-gaap:AccumulatedOtherComprehensiveIncomeMember2022-03-310001032033us-gaap:RetainedEarningsMember2022-03-310001032033slm:NitroCollegeMember2022-03-040001032033slm:NitroCollegeMembersrt:MinimumMember2022-03-042022-03-040001032033slm:NitroCollegeMembersrt:MaximumMember2022-03-042022-03-04xbrli:pure0001032033us-gaap:MortgageBackedSecuritiesMember2022-03-310001032033slm:UtahHousingCorporationBondsMember2022-03-310001032033slm:USGovernmentSponsoredEnterprisesAndTreasuriesMember2022-03-310001032033us-gaap:OtherDebtSecuritiesMember2022-03-310001032033us-gaap:MortgageBackedSecuritiesMember2021-12-310001032033slm:UtahHousingCorporationBondsMember2021-12-310001032033slm:USGovernmentSponsoredEnterprisesAndTreasuriesMember2021-12-310001032033us-gaap:OtherDebtSecuritiesMember2021-12-310001032033us-gaap:MortgageBackedSecuritiesMember2022-03-310001032033slm:UtahHousingCorporationBondsMember2022-03-310001032033slm:USGovernmentSponsoredEnterprisesAndTreasuriesMember2022-03-310001032033us-gaap:OtherDebtSecuritiesMember2022-03-310001032033us-gaap:MortgageBackedSecuritiesMember2021-12-310001032033slm:UtahHousingCorporationBondsMember2021-12-310001032033slm:USGovernmentSponsoredEnterprisesAndTreasuriesMember2021-12-310001032033us-gaap:OtherDebtSecuritiesMember2021-12-31slm:security00010320332020-03-012020-03-310001032033slm:Maturity2022Member2022-03-310001032033slm:Maturity2023Member2022-03-310001032033slm:Maturity2024Member2022-03-310001032033slm:Maturity2025Member2022-03-310001032033slm:Maturity2026Member2022-03-310001032033slm:Maturity2038Member2022-03-310001032033slm:Maturity2039Member2022-03-310001032033slm:Maturity2042Member2022-03-310001032033slm:Maturity2043Member2022-03-310001032033slm:Maturity2044Member2022-03-310001032033slm:Maturity2045Member2022-03-310001032033slm:Maturity2046Member2022-03-310001032033slm:Maturity2047Member2022-03-310001032033slm:Maturity2048Member2022-03-310001032033slm:Maturity2049Member2022-03-310001032033slm:Maturity2050Member2022-03-310001032033slm:Maturity2051Member2022-03-310001032033slm:Maturity2052Member2022-03-310001032033slm:Maturity2053Member2022-03-310001032033slm:Maturity2054Member2022-03-3100010320332021-01-012021-12-3100010320332006-07-0100010320332006-06-3000010320331993-09-300001032033us-gaap:FixedIncomeInterestRateMemberslm:PrivateEducationLoansMember2022-03-310001032033us-gaap:FixedIncomeInterestRateMemberslm:PrivateEducationLoansMember2021-12-310001032033us-gaap:VariableIncomeInterestRateMemberslm:PrivateEducationLoansMember2022-03-310001032033us-gaap:VariableIncomeInterestRateMemberslm:PrivateEducationLoansMember2021-12-310001032033slm:PrivateEducationLoansMember2022-03-310001032033slm:PrivateEducationLoansMember2021-12-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2022-03-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2021-12-310001032033slm:CreditCardsMember2022-03-310001032033slm:CreditCardsMember2021-12-310001032033slm:PrivateEducationLoansMember2022-01-012022-03-310001032033slm:PrivateEducationLoansMember2021-01-012021-03-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2022-01-012022-03-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2021-01-012021-03-310001032033slm:CreditCardsMember2022-01-012022-03-310001032033slm:CreditCardsMember2021-01-012021-03-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2021-12-310001032033slm:PrivateEducationLoansMember2021-12-310001032033slm:CreditCardsMember2021-12-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2022-01-012022-03-310001032033slm:PrivateEducationLoansMember2022-01-012022-03-310001032033slm:CreditCardsMember2022-01-012022-03-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2022-03-310001032033slm:PrivateEducationLoansMember2022-03-310001032033slm:CreditCardsMember2022-03-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2020-12-310001032033slm:PrivateEducationLoansMember2020-12-310001032033slm:CreditCardsMember2020-12-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2021-01-012021-03-310001032033slm:PrivateEducationLoansMember2021-01-012021-03-310001032033slm:CreditCardsMember2021-01-012021-03-310001032033us-gaap:FederalFamilyEducationLoanProgramFfelpGuaranteedLoansMember2021-03-310001032033slm:PrivateEducationLoansMember2021-03-310001032033slm:CreditCardsMember2021-03-310001032033srt:MaximumMember2022-03-31slm:termChange0001032033srt:MinimumMember2022-01-012022-03-310001032033srt:MaximumMember2022-01-012022-03-31slm:payment0001032033slm:PrivateEducationLoansMemberus-gaap:InterestRateBelowMarketReductionMember2022-03-310001032033slm:PrivateEducationLoansMemberslm:InterestRateReductionAndTermExtensionMember2022-03-310001032033us-gaap:InterestRateBelowMarketReductionMember2022-03-310001032033slm:InterestRateReductionAndTermExtensionMember2022-03-310001032033slm:PrivateEducationLoansMemberus-gaap:InterestRateBelowMarketReductionMembersrt:MaximumMember2022-03-310001032033slm:PrivateEducationLoansMemberus-gaap:InterestRateBelowMarketReductionMembersrt:MinimumMember2022-03-310001032033slm:PrivateEducationLoansMemberslm:InterestRateReductionAndTermExtensionMember2022-01-012022-03-310001032033slm:PrivateEducationLoansMemberslm:InterestRateReductionAndTermExtensionMembersrt:MaximumMember2022-03-310001032033slm:PrivateEducationLoansMembersrt:MinimumMemberslm:InterestRateReductionAndTermExtensionMember2022-03-310001032033slm:PrivateEducationLoansMemberslm:LoansInSchoolGraceDefermentMember2022-01-012022-03-310001032033slm:PrivateEducationLoansMemberus-gaap:FinancialAssetNotPastDueMember2022-01-012022-03-310001032033slm:PrivateEducationLoansMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-01-012022-03-310001032033slm:PrivateEducationLoansMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-01-012022-03-310001032033slm:PrivateEducationLoansMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-01-012022-03-310001032033slm:LoansInSchoolGraceDefermentMember2022-01-012022-03-310001032033us-gaap:FinancialAssetNotPastDueMember2022-01-012022-03-310001032033us-gaap:FinancingReceivables30To59DaysPastDueMember2022-01-012022-03-310001032033us-gaap:FinancingReceivables60To89DaysPastDueMember2022-01-012022-03-310001032033us-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-01-012022-03-310001032033slm:WithCosignerMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:WithoutCosignerMember2022-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberslm:CosignerMemberus-gaap:StudentLoanMember2022-03-310001032033slm:SchoolFicoMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:FICOscorelessthan670Member2022-03-310001032033slm:SchoolFicoMemberslm:FICOscore670699Memberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-03-310001032033slm:SchoolFicoMemberslm:FICOscore700749Memberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-03-310001032033slm:FICOscoregreaterthan750Memberslm:SchoolFicoMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-03-310001032033slm:SchoolFicoMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-03-310001032033slm:SchoolFICORefreshedAmountsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:FICOscorelessthan670Member2022-03-310001032033slm:SchoolFICORefreshedAmountsMemberslm:FICOscore670699Memberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-03-310001032033slm:SchoolFICORefreshedAmountsMemberslm:FICOscore700749Memberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-03-310001032033slm:FICOscoregreaterthan750Memberslm:SchoolFICORefreshedAmountsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-03-310001032033slm:SchoolFICORefreshedAmountsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-03-310001032033slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromOneToTwelvePaymentsMemberslm:RepaymentsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-03-310001032033slm:RepaymentsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-03-310001032033slm:RepaymentsMemberus-gaap:ConsumerPortfolioSegmentMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromThirteenToTwentyFourPaymentsMemberus-gaap:StudentLoanMember2022-03-310001032033slm:RepaymentsMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromTwentyFiveToThirtySixPaymentsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-03-310001032033slm:RepaymentsMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromThirtySevenToFortyEightPaymentsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-03-310001032033slm:RepaymentsMemberus-gaap:ConsumerPortfolioSegmentMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromMoreThanFortyEightPaymentsMemberus-gaap:StudentLoanMember2022-03-310001032033slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromNotYetInRepaymentMemberslm:RepaymentsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-01-012022-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-03-310001032033slm:WithCosignerMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:WithoutCosignerMember2021-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberslm:CosignerMemberus-gaap:StudentLoanMember2021-12-310001032033slm:SchoolFicoMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:FICOscorelessthan670Member2021-12-310001032033slm:SchoolFicoMemberslm:FICOscore670699Memberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-12-310001032033slm:SchoolFicoMemberslm:FICOscore700749Memberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-12-310001032033slm:FICOscoregreaterthan750Memberslm:SchoolFicoMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-12-310001032033slm:SchoolFicoMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-12-310001032033slm:SchoolFICORefreshedAmountsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberslm:FICOscorelessthan670Member2021-12-310001032033slm:SchoolFICORefreshedAmountsMemberslm:FICOscore670699Memberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-12-310001032033slm:SchoolFICORefreshedAmountsMemberslm:FICOscore700749Memberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-12-310001032033slm:FICOscoregreaterthan750Memberslm:SchoolFICORefreshedAmountsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-12-310001032033slm:SchoolFICORefreshedAmountsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-12-310001032033slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromOneToTwelvePaymentsMemberslm:RepaymentsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-12-310001032033slm:RepaymentsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-12-310001032033slm:RepaymentsMemberus-gaap:ConsumerPortfolioSegmentMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromThirteenToTwentyFourPaymentsMemberus-gaap:StudentLoanMember2021-12-310001032033slm:RepaymentsMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromTwentyFiveToThirtySixPaymentsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-12-310001032033slm:RepaymentsMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromThirtySevenToFortyEightPaymentsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-12-310001032033slm:RepaymentsMemberus-gaap:ConsumerPortfolioSegmentMemberslm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromMoreThanFortyEightPaymentsMemberus-gaap:StudentLoanMember2021-12-310001032033slm:SeasoningBasedOnMonthlyScheduledPaymentsDueFromNotYetInRepaymentMemberslm:RepaymentsMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-01-012021-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-12-310001032033slm:LoansInSchoolGraceDefermentMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberslm:LoansInForbearanceMemberus-gaap:StudentLoanMember2022-03-310001032033us-gaap:FinancialAssetNotPastDueMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2022-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2022-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2022-03-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2022-03-310001032033slm:LoansInSchoolGraceDefermentMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberslm:LoansInForbearanceMemberus-gaap:StudentLoanMember2021-12-310001032033us-gaap:FinancialAssetNotPastDueMemberus-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMember2021-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberus-gaap:FinancingReceivables30To59DaysPastDueMember2021-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberus-gaap:FinancingReceivables60To89DaysPastDueMember2021-12-310001032033us-gaap:ConsumerPortfolioSegmentMemberus-gaap:StudentLoanMemberus-gaap:FinancingReceivablesEqualToGreaterThan90DaysPastDueMember2021-12-310001032033us-gaap:TrademarksAndTradeNamesMember2022-01-012022-03-310001032033us-gaap:TrademarksAndTradeNamesMember2022-03-310001032033us-gaap:CustomerRelationshipsMember2022-01-012022-03-310001032033us-gaap:CustomerRelationshipsMember2022-03-310001032033us-gaap:DevelopedTechnologyRightsMember2022-01-012022-03-310001032033us-gaap:DevelopedTechnologyRightsMember2022-03-310001032033slm:NitroCollegeMember2022-01-012022-03-3100010320332022-03-040001032033us-gaap:UnsecuredDebtMember2022-03-310001032033us-gaap:UnsecuredDebtMember2021-12-310001032033slm:PrivateEducationLoanSecuritizationMemberus-gaap:FixedIncomeInterestRateMemberus-gaap:SecuredDebtMember2022-03-310001032033slm:PrivateEducationLoanSecuritizationMemberus-gaap:FixedIncomeInterestRateMemberus-gaap:SecuredDebtMember2021-12-310001032033us-gaap:VariableIncomeInterestRateMemberslm:PrivateEducationLoanSecuritizationMemberus-gaap:SecuredDebtMember2022-03-310001032033us-gaap:VariableIncomeInterestRateMemberslm:PrivateEducationLoanSecuritizationMemberus-gaap:SecuredDebtMember2021-12-310001032033slm:PrivateEducationLoanSecuritizationMemberus-gaap:SecuredDebtMember2022-03-310001032033slm:PrivateEducationLoanSecuritizationMemberus-gaap:SecuredDebtMember2021-12-310001032033slm:ABCPBorrowingsMemberus-gaap:SecuredDebtMember2022-03-310001032033slm:ABCPBorrowingsMemberus-gaap:SecuredDebtMember2021-12-310001032033us-gaap:SecuredDebtMember2022-03-310001032033us-gaap:SecuredDebtMember2021-12-310001032033slm:SMBPrivateEducationLoanTrust2021BMember2021-05-310001032033slm:SMBPrivateEducationLoanTrust2021BMember2021-05-012021-05-310001032033slm:SMBPrivateEducationLoanTrust2021DMember2021-08-310001032033slm:SMBPrivateEducationLoanTrust2021DMember2021-08-012021-08-310001032033slm:SMBPrivateEducationLoanTrust2021EMember2021-08-310001032033slm:SMBPrivateEducationLoanTrust2021EMember2021-08-012021-08-310001032033slm:PrivateEducationLoanSecuritizationMember2022-03-310001032033slm:PrivateEducationLoanSecuritizationMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-03-310001032033slm:ABCPBorrowingsMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-03-310001032033us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2022-03-310001032033slm:PrivateEducationLoanSecuritizationMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-12-310001032033slm:ABCPBorrowingsMemberus-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-12-310001032033us-gaap:VariableInterestEntityPrimaryBeneficiaryMember2021-12-31utr:Rate0001032033slm:A2022AMemberus-gaap:StudentLoanMember2022-03-162022-03-160001032033slm:A2022AMember2022-03-162022-03-160001032033slm:PrivateEducationLoanSecuritizationMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2022-03-310001032033slm:PrivateEducationLoanSecuritizationMemberus-gaap:VariableInterestEntityNotPrimaryBeneficiaryMember2021-12-31slm:counterparty0001032033exch:XCME2022-03-310001032033slm:LondonClearingHouseMember2022-03-310001032033exch:XCME2022-01-012022-03-310001032033slm:LondonClearingHouseMember2022-01-012022-03-310001032033us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2022-03-310001032033us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:InterestRateSwapMember2021-12-310001032033us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMemberus-gaap:InterestRateSwapMember2022-03-310001032033us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMemberus-gaap:InterestRateSwapMember2021-12-310001032033us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2022-03-310001032033us-gaap:InterestRateSwapMemberus-gaap:NondesignatedMember2021-12-310001032033us-gaap:InterestRateSwapMember2022-03-310001032033us-gaap:InterestRateSwapMember2021-12-310001032033us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherContractMember2022-03-310001032033us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:OtherContractMember2021-12-310001032033us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMemberus-gaap:OtherContractMember2022-03-310001032033us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMemberus-gaap:OtherContractMember2021-12-310001032033us-gaap:OtherContractMemberus-gaap:NondesignatedMember2022-03-310001032033us-gaap:OtherContractMemberus-gaap:NondesignatedMember2021-12-310001032033us-gaap:OtherContractMember2022-03-310001032033us-gaap:OtherContractMember2021-12-310001032033us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2022-03-310001032033us-gaap:CashFlowHedgingMemberus-gaap:DesignatedAsHedgingInstrumentMember2021-12-310001032033us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2022-03-310001032033us-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:FairValueHedgingMember2021-12-310001032033us-gaap:NondesignatedMember2022-03-310001032033us-gaap:NondesignatedMember2021-12-310001032033us-gaap:OtherAssetsMember2022-03-310001032033us-gaap:OtherAssetsMember2021-12-310001032033us-gaap:OtherLiabilitiesMember2022-03-310001032033us-gaap:OtherLiabilitiesMember2021-12-310001032033us-gaap:DepositsMember2022-03-310001032033us-gaap:DepositsMember2021-12-310001032033us-gaap:DesignatedAsHedgingInstrumentMember2022-01-012022-03-310001032033us-gaap:DesignatedAsHedgingInstrumentMember2021-01-012021-03-310001032033us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2022-01-012022-03-310001032033us-gaap:AccumulatedGainLossNetCashFlowHedgeParentMemberus-gaap:DesignatedAsHedgingInstrumentMemberus-gaap:ReclassificationOutOfAccumulatedOtherComprehensiveIncomeMember2021-01-012021-03-310001032033us-gaap:NondesignatedMember2022-01-012022-03-310001032033us-gaap:NondesignatedMember2021-01-012021-03-310001032033slm:A2021ShareRepurchaseProgramAcceleratedPurchasesMember2021-01-012021-03-310001032033us-gaap:CommonStockMember2022-03-3100010320332022-03-012022-03-3100010320332021-03-012021-03-310001032033us-gaap:CommonStockMemberslm:A2021ShareRepurchaseProgramMember2021-01-270001032033us-gaap:CommonStockMemberslm:A2021ShareRepurchaseProgramMember2021-01-012021-03-310001032033us-gaap:CommonStockMemberslm:A2021ShareRepurchaseProgramMember2021-10-200001032033us-gaap:CommonStockMemberslm:A2021ShareRepurchaseProgramMember2022-01-012022-03-310001032033slm:A2022ShareRepurchaseProgramMemberus-gaap:CommonStockMember2022-01-260001032033slm:A2022ShareRepurchaseProgramMemberus-gaap:CommonStockMember2022-01-012022-03-310001032033slm:A2022ShareRepurchaseProgramMemberus-gaap:CommonStockMember2022-03-310001032033us-gaap:CommonStockMemberslm:Rule10b51TradingPlanMember2022-01-012022-03-310001032033us-gaap:CommonStockMemberslm:Rule10b51TradingPlanMember2021-01-012021-03-310001032033us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001032033us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2022-03-310001032033us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2022-03-310001032033us-gaap:FairValueMeasurementsRecurringMember2022-03-310001032033us-gaap:FairValueInputsLevel1Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001032033us-gaap:FairValueMeasurementsRecurringMemberus-gaap:FairValueInputsLevel2Member2021-12-310001032033us-gaap:FairValueInputsLevel3Memberus-gaap:FairValueMeasurementsRecurringMember2021-12-310001032033us-gaap:FairValueMeasurementsRecurringMember2021-12-310001032033slm:PrivateEducationLoansMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001032033slm:PrivateEducationLoansMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-03-310001032033slm:PrivateEducationLoansMember2022-03-310001032033slm:PrivateEducationLoansMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001032033slm:PrivateEducationLoansMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001032033slm:PrivateEducationLoansMember2021-12-310001032033slm:FfelpLoansMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001032033slm:FfelpLoansMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-03-310001032033slm:FfelpLoansMember2022-03-310001032033slm:FfelpLoansMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001032033slm:FfelpLoansMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001032033slm:FfelpLoansMember2021-12-310001032033us-gaap:EstimateOfFairValueFairValueDisclosureMemberslm:CreditCardsMember2022-03-310001032033us-gaap:CarryingReportedAmountFairValueDisclosureMemberslm:CreditCardsMember2022-03-310001032033slm:CreditCardsMember2022-03-310001032033us-gaap:EstimateOfFairValueFairValueDisclosureMemberslm:CreditCardsMember2021-12-310001032033us-gaap:CarryingReportedAmountFairValueDisclosureMemberslm:CreditCardsMember2021-12-310001032033slm:CreditCardsMember2021-12-310001032033us-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001032033us-gaap:CarryingReportedAmountFairValueDisclosureMember2022-03-310001032033us-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001032033us-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001032033slm:MoneyMarketandSavingsAccountsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001032033slm:MoneyMarketandSavingsAccountsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2022-03-310001032033slm:MoneyMarketandSavingsAccountsMember2022-03-310001032033slm:MoneyMarketandSavingsAccountsMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001032033slm:MoneyMarketandSavingsAccountsMemberus-gaap:CarryingReportedAmountFairValueDisclosureMember2021-12-310001032033slm:MoneyMarketandSavingsAccountsMember2021-12-310001032033us-gaap:CertificatesOfDepositMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2022-03-310001032033us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:CertificatesOfDepositMember2022-03-310001032033us-gaap:CertificatesOfDepositMember2022-03-310001032033us-gaap:CertificatesOfDepositMemberus-gaap:EstimateOfFairValueFairValueDisclosureMember2021-12-310001032033us-gaap:CarryingReportedAmountFairValueDisclosureMemberus-gaap:CertificatesOfDepositMember2021-12-310001032033us-gaap:CertificatesOfDepositMember2021-12-310001032033us-gaap:AccountingStandardsUpdate201613Member2020-01-012020-01-010001032033us-gaap:AccountingStandardsUpdate201613Member2020-01-0100010320332020-01-010001032033us-gaap:AccountingStandardsUpdate201613Membersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2020-12-310001032033us-gaap:AccountingStandardsUpdate201613Membersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2021-12-310001032033us-gaap:AccountingStandardsUpdate201613Membersrt:CumulativeEffectPeriodOfAdoptionAdjustmentMember2022-03-310001032033us-gaap:AccountingStandardsUpdate201613Membersrt:CumulativeEffectPeriodOfAdoptionAdjustedBalanceMember2022-03-310001032033us-gaap:SubsequentEventMember2022-04-272022-04-27
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q
(Mark One)
☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 2022
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)
Securities registered pursuant to Section 12(b) of the Act: | | | | | | | | |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered |
Common stock, par value $.20 per share | SLM | The NASDAQ Global Select Market |
Floating Rate Non-Cumulative Preferred Stock, Series B, par value $.20 per share | SLMBP | The NASDAQ Global Select Market |
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 ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted 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 such files). Yes ☑ 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 | ☑ | | 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 is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑
As of March 31, 2022, there were 271,083,556 shares of common stock outstanding.
SLM CORPORATION
CONSOLIDATED FINANCIAL STATEMENTS
INDEX
| | | | | | | | | | | |
Part I. Financial Information | | |
Item 1. | | | |
Item 1. | | | |
Item 2. | | | |
Item 3. | | | |
Item 4. | | | |
PART II. Other Information | | |
Item 1. | | | |
Item 1A. | | | |
Item 2. | | | |
Item 3. | | | |
Item 4. | | | |
Item 5. | | | |
Item 6. | | | |
| | | | | | | | | | | | | | |
CONSOLIDATED BALANCE SHEETS (Unaudited) | | | | |
| | March 31, | | December 31, |
(Dollars in thousands, except share and per share amounts) | | 2022 | | 2021 |
Assets | | | | |
Cash and cash equivalents | | $ | 3,262,595 | | | $ | 4,334,603 | |
Investments: | | | | |
Trading investments at fair value (cost of $33,985 and $29,049, respectively) | | 38,820 | | | 37,465 | |
Available-for-sale investments at fair value (cost of $2,440,204 and $2,535,568, respectively) | | 2,341,551 | | | 2,517,956 | |
Other investments | | 139,108 | | | 140,037 | |
Total investments | | 2,519,479 | | | 2,695,458 | |
Loans held for investment (net of allowance for losses of $1,227,362 and $1,165,335, respectively) | | 21,291,675 | | | 20,341,283 | |
| | | | |
Restricted cash | | 187,960 | | | 210,741 | |
Other interest-earning assets | | 9,327 | | | 9,655 | |
Accrued interest receivable | | 1,259,145 | | | 1,205,667 | |
Premises and equipment, net | | 148,154 | | | 150,516 | |
Goodwill and acquired intangible assets, net | | 125,267 | | | — | |
Income taxes receivable, net | | 215,217 | | | 239,578 | |
Tax indemnification receivable | | 8,155 | | | 8,047 | |
Other assets | | 24,855 | | | 26,351 | |
Total assets | | $ | 29,051,829 | | | $ | 29,221,899 | |
| | | | |
Liabilities | | | | |
Deposits | | $ | 21,194,026 | | | $ | 20,828,124 | |
| | | | |
Long-term borrowings | | 5,552,497 | | | 5,930,990 | |
| | | | |
Other liabilities | | 261,099 | | | 313,074 | |
Total liabilities | | 27,007,622 | | | 27,072,188 | |
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: 434.6 million and 432.0 million shares issued, respectively | | 86,922 | | | 86,403 | |
Additional paid-in capital | | 1,086,852 | | | 1,074,384 | |
Accumulated other comprehensive loss (net of tax benefit of ($12,601) and ($5,707), respectively) | | (39,514) | | | (17,897) | |
Retained earnings | | 2,913,544 | | | 2,817,134 | |
Total SLM Corporation stockholders’ equity before treasury stock | | 4,298,874 | | | 4,211,094 | |
Less: Common stock held in treasury at cost: 163.5 million and 153.1 million shares, respectively | | (2,254,667) | | | (2,061,383) | |
Total equity | | 2,044,207 | | | 2,149,711 | |
Total liabilities and equity | | $ | 29,051,829 | | | $ | 29,221,899 | |
See accompanying notes to consolidated financial statements.
| | | | | | | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | | | | | | |
(Dollars in thousands, except per share amounts) | | Three Months Ended March 31, | | | | |
| 2022 | | 2021 | | | | | | | | |
Interest income: | | | | | | | | | | | | |
Loans | | $ | 458,044 | | | $ | 431,804 | | | | | | | | | |
Investments | | 5,479 | | | 2,728 | | | | | | | | | |
Cash and cash equivalents | | 1,515 | | | 1,626 | | | | | | | | | |
Total interest income | | 465,038 | | | 436,158 | | | | | | | | | |
Interest expense: | | | | | | | | | | | | |
Deposits | | 49,537 | | | 66,598 | | | | | | | | | |
Interest expense on short-term borrowings | | 2,875 | | | 3,202 | | | | | | | | | |
Interest expense on long-term borrowings | | 37,594 | | | 35,244 | | | | | | | | | |
| | | | | | | | | | | | |
Total interest expense | | 90,006 | | | 105,044 | | | | | | | | | |
Net interest income | | 375,032 | | | 331,114 | | | | | | | | | |
Less: provisions for credit losses | | 98,050 | | | (225,767) | | | | | | | | | |
Net interest income after provisions for credit losses | | 276,982 | | | 556,881 | | | | | | | | | |
Non-interest income: | | | | | | | | | | | | |
Gains on sales of loans, net | | 9,881 | | | 399,111 | | | | | | | | | |
| | | | | | | | | | | | |
Gains (losses) on derivatives and hedging activities, net | | (5) | | | 28 | | | | | | | | | |
Other income | | 12,049 | | | 14,288 | | | | | | | | | |
Total non-interest income | | 21,925 | | | 413,427 | | | | | | | | | |
Non-interest expenses: | | | | | | | | | | | | |
Operating expenses: | | | | | | | | | | | | |
Compensation and benefits | | 71,981 | | | 71,581 | | | | | | | | | |
FDIC assessment fees | | 5,684 | | | 5,188 | | | | | | | | | |
Other operating expenses | | 54,341 | | | 47,730 | | | | | | | | | |
Total operating expenses | | 132,006 | | | 124,499 | | | | | | | | | |
Acquired intangible assets amortization expense | | 733 | | | — | | | | | | | | | |
Restructuring expenses | | — | | | 1,077 | | | | | | | | | |
Total non-interest expenses | | 132,739 | | | 125,576 | | | | | | | | | |
Income before income tax expense | | 166,168 | | | 844,732 | | | | | | | | | |
Income tax expense | | 37,356 | | | 203,525 | | | | | | | | | |
Net income | | 128,812 | | | 641,207 | | | | | | | | | |
Preferred stock dividends | | 1,275 | | | 1,201 | | | | | | | | | |
Net income attributable to SLM Corporation common stock | | $ | 127,537 | | | $ | 640,006 | | | | | | | | | |
Basic earnings per common share | | $ | 0.46 | | | $ | 1.77 | | | | | | | | | |
Average common shares outstanding | | 276,977 | | | 361,042 | | | | | | | | | |
Diluted earnings per common share | | $ | 0.45 | | | $ | 1.75 | | | | | | | | | |
Average common and common equivalent shares outstanding | | 280,654 | | | 366,240 | | | | | | | | | |
Declared dividends per common share | | $ | 0.11 | | | $ | 0.03 | | | | | | | | | |
See accompanying notes to consolidated financial statements.
| | | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) | | |
(Dollars in thousands) | | Three Months Ended March 31, | | |
| 2022 | | 2021 | | | | |
Net income | | $ | 128,812 | | | $ | 641,207 | | | | | |
Other comprehensive income (loss): | | | | | | | | |
Unrealized losses on investments | | (81,041) | | | (10,071) | | | | | |
Unrealized gains on cash flow hedges | | 52,530 | | | 23,423 | | | | | |
Total unrealized gains (losses) | | (28,511) | | | 13,352 | | | | | |
Income tax (expense) benefit | | 6,894 | | | (3,229) | | | | | |
Other comprehensive income (loss), net of tax (expense) benefit | | (21,617) | | | 10,123 | | | | | |
Total comprehensive income | | $ | 107,195 | | | $ | 651,330 | | | | | |
See accompanying notes to consolidated financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) | | | | | | | | | | | | | | | | |
| | | | Common Stock Shares | | | | | | | | | | | | | | |
(In thousands, except share and per share amounts) | | 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, 2020 | | 2,510,696 | | | 456,729,251 | | | (81,441,252) | | | 375,287,999 | | | $ | 251,070 | | | $ | 91,346 | | | $ | 1,331,247 | | | $ | (34,200) | | | $ | 1,722,365 | | | $ | (798,993) | | | $ | 2,562,835 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Net income | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 641,207 | | | — | | | 641,207 | |
Other comprehensive income, net of tax | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 10,123 | | | — | | | — | | | 10,123 | |
Total comprehensive income | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 651,330 | |
Cash dividends declared: | | | | | | | | | | | | | | | | | | | | | | |
Common stock ($0.03 per share) | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (10,906) | | | — | | | (10,906) | |
Preferred Stock, Series B ($0.48 per share) | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (1,201) | | | — | | | (1,201) | |
| | | | | | | | | | | | | | | | | | | | | | |
Dividend equivalent units related to employee stock-based compensation plans | | — | | | — | | | — | | | — | | | — | | | — | | | 463 | | | — | | | (479) | | | — | | | (16) | |
Issuance of common shares | | — | | | 2,826,387 | | | — | | | 2,826,387 | | | — | | | 565 | | | 1,496 | | | — | | | — | | | — | | | 2,061 | |
Stock-based compensation expense | | — | | | — | | | — | | | — | | | — | | | — | | | 11,124 | | | — | | | — | | | — | | | 11,124 | |
Common stock repurchased and cancelled | | — | | | (28,502,460) | | | — | | | (28,502,460) | | | — | | | (5,700) | | | (466,110) | | | — | | | — | | | — | | | (471,810) | |
Common stock repurchased | | — | | | — | | | (20,200,370) | | | (20,200,370) | | | — | | | — | | | 174,684 | | | — | | | — | | | (295,324) | | | (120,640) | |
Shares repurchased related to employee stock-based compensation plans | | — | | | — | | | (1,059,980) | | | (1,059,980) | | | — | | | — | | | — | | | — | | | — | | | (14,313) | | | (14,313) | |
Balance at March 31, 2021 | | 2,510,696 | | | 431,053,178 | | | (102,701,602) | | | 328,351,576 | | | $ | 251,070 | | | $ | 86,211 | | | $ | 1,052,904 | | | $ | (24,077) | | | $ | 2,350,986 | | | $ | (1,108,630) | | | $ | 2,608,464 | |
See accompanying notes to consolidated financial statements.
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited) | | | | | | | | | | | | | | |
| | | | Common Stock Shares | | | | | | | | | | | | | | |
(In thousands, except share and per share amounts) | | Preferred Stock Shares | | Issued | | Treasury | | Outstanding | | Preferred Stock | | Common Stock | | Additional Paid-In Capital | | Accumulated Other Comprehensive Loss | | Retained Earnings | | Treasury Stock | | Total Equity |
Balance at December 31, 2021 | | 2,510,696 | | | 432,013,372 | | | (153,056,639) | | | 278,956,733 | | | $ | 251,070 | | | $ | 86,403 | | | $ | 1,074,384 | | | $ | (17,897) | | | $ | 2,817,134 | | | $ | (2,061,383) | | | $ | 2,149,711 | |
Net income | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 128,812 | | | — | | | 128,812 | |
Other comprehensive loss, net of tax | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (21,617) | | | — | | | — | | | (21,617) | |
Total comprehensive income | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | 107,195 | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | |
Cash dividends declared: | | | | | | | | | | | | | | | | | | | | | | |
Common stock ($0.11 per share) | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (30,493) | | | — | | | (30,493) | |
Preferred Stock, Series B ($0.51 per share) | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | — | | | (1,275) | | | — | | | (1,275) | |
| | | | | | | | | | | | | | | | | | | | | | |
Dividend equivalent units related to employee stock-based compensation plans | | — | | | — | | | — | | | — | | | — | | | — | | | 618 | | | — | | | (634) | | | — | | | (16) | |
Issuance of common shares | | — | | | 2,594,817 | | | — | | | 2,594,817 | | | — | | | 519 | | | (71) | | | — | | | — | | | — | | | 448 | |
Stock-based compensation expense | | — | | | — | | | — | | | — | | | — | | | — | | | 11,921 | | | — | | | — | | | — | | | 11,921 | |
| | | | | | | | | | | | | | | | | | | | | | |
Common stock repurchased | | — | | | — | | | (9,533,392) | | | (9,533,392) | | | — | | | — | | | — | | | — | | | — | | | (175,943) | | | (175,943) | |
Shares repurchased related to employee stock-based compensation plans | | — | | | — | | | (934,602) | | | (934,602) | | | — | | | — | | | — | | | — | | | — | | | (17,341) | | | (17,341) | |
Balance at March 31, 2022 | | 2,510,696 | | | 434,608,189 | | | (163,524,633) | | | 271,083,556 | | | $ | 251,070 | | | $ | 86,922 | | | $ | 1,086,852 | | | $ | (39,514) | | | $ | 2,913,544 | | | $ | (2,254,667) | | | $ | 2,044,207 | |
See accompanying notes to consolidated financial statements.
| | | | | | | | | | | | | | |
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) | | | | |
| | Three Months Ended March 31, |
(Dollars in thousands) | | 2022 | | 2021 |
Operating activities | | | | |
Net income | | $ | 128,812 | | | $ | 641,207 | |
Adjustments to reconcile net income to net cash provided by operating activities: | | | | |
Provisions for credit losses | | 98,050 | | | (225,767) | |
Income tax expense | | 37,356 | | | 203,525 | |
Amortization of brokered deposit placement fee | | 3,425 | | | 4,307 | |
Amortization of Secured Borrowing Facility upfront fee | | 569 | | | 773 | |
Amortization of deferred loan origination costs and loan premium/(discounts), net | | 4,455 | | | 4,016 | |
Net amortization of discount on investments | | 965 | | | 2,161 | |
| | | | |
Reduction (increase) in tax indemnification receivable | | (108) | | | 2,814 | |
Depreciation of premises and equipment | | 4,189 | | | 3,715 | |
Acquired intangible assets amortization expense | | 733 | | | — | |
Stock-based compensation expense | | 11,921 | | | 11,124 | |
Unrealized (gains) losses on derivatives and hedging activities, net | | 315 | | | 10,872 | |
Gains on sales of loans, net | | (9,881) | | | (399,111) | |
| | | | |
Acquisition transaction costs, net | | 2,511 | | | — | |
Other adjustments to net income, net | | 7,235 | | | 2,578 | |
Changes in operating assets and liabilities: | | | | |
Increase in accrued interest receivable | | (185,294) | | | (183,168) | |
Increase in non-marketable securities | | (992) | | | (317) | |
Decrease in other interest-earning assets | | 328 | | | 19,282 | |
| | | | |
Increase in other assets | | (17,529) | | | (51,667) | |
Decrease in income taxes payable, net | | (4,243) | | | (270) | |
Increase (decrease) in accrued interest payable | | 14,779 | | | (9,081) | |
| | | | |
Increase (decrease) in other liabilities | | (34,808) | | | 8,759 | |
Total adjustments | | (66,024) | | | (595,455) | |
Total net cash provided by operating activities | | 62,788 | | | 45,752 | |
Investing activities | | | | |
Loans acquired and originated | | (2,215,958) | | | (2,076,635) | |
Net proceeds from sales of loans held for investment | | 45,729 | | | 3,436,391 | |
Proceeds from FFELP Loan claim payments | | 5,594 | | | 4,602 | |
Net decrease in loans held for investment (other than loan sales) | | 1,153,297 | | | 1,021,353 | |
Purchases of available-for-sale securities | | (536,633) | | | (200,716) | |
Proceeds from sales and maturities of available-for-sale securities | | 686,806 | | | 205,367 | |
Purchase of subsidiary, net of cash acquired | | (127,702) | | | — | |
Total net cash (used in) provided by investing activities | | (988,867) | | | 2,390,362 | |
Financing activities | | | | |
| | | | |
Brokered deposit placement fee | | (2,207) | | | — | |
Net decrease in certificates of deposit | | (127,815) | | | (686,344) | |
Net increase in other deposits | | 543,767 | | | 850,408 | |
| | | | |
| | | | |
Borrowings collateralized by loans in securitization trusts - repaid | | (381,005) | | | (272,123) | |
Issuance costs for unsecured debt offering | | (360) | | | (325) | |
| | | | |
| | | | |
| | | | |
Fees paid on Secured Borrowing Facility | | — | | | (2,833) | |
| | | | |
Common stock dividends paid | | (30,493) | | | (10,906) | |
Preferred stock dividends paid | | (1,275) | | | (1,201) | |
Common stock repurchased | | (169,322) | | | (550,790) | |
Total net cash used in financing activities | | (168,710) | | | (674,114) | |
Net increase (decrease) in cash, cash equivalents and restricted cash | | (1,094,789) | | | 1,762,000 | |
Cash, cash equivalents and restricted cash at beginning of period | | 4,545,344 | | | 4,609,709 | |
Cash, cash equivalents and restricted cash at end of period | | $ | 3,450,555 | | | $ | 6,371,709 | |
| | | | | | | | | | | | | | |
Cash disbursements made for: | | | | |
Interest | | $ | 68,458 | | | $ | 76,491 | |
Income taxes paid | | $ | 5,066 | | | $ | 887 | |
Income taxes refunded | | $ | (916) | | | $ | (1,049) | |
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Balance Sheets: | | | | |
Cash and cash equivalents | | $ | 3,262,595 | | | $ | 6,207,001 | |
Restricted cash | | 187,960 | | | 164,708 | |
Total cash, cash equivalents and restricted cash | | $ | 3,450,555 | | | $ | 6,371,709 | |
See accompanying notes to consolidated financial statements.
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 months ended March 31, 2022 are not necessarily indicative of the results for the year ending December 31, 2022 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, 2021 (the “2021 Form 10-K”).
Consolidation
The consolidated financial statements include the accounts of the Company and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions.
We consolidate any variable interest entity (“VIE”) where we have determined we are the primary beneficiary. The primary beneficiary is the entity which has both: (i) the power to direct the activities of the VIE that most significantly impact the VIE’s economic performance; and (ii) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE.
Business Combination
On March 4, 2022, we completed the previously announced acquisition of the assets primarily used or held for use of Epic Research Education Services, LLC, which does business as Nitro College (“Nitro”). Nitro provides resources that help students and families evaluate how to responsibly pay for college and manage their financial responsibilities after graduation. The addition of Nitro will support our mission of providing students with the confidence needed to successfully navigate the higher education journey. Strategically, we expect the acquisition of the Nitro assets, including its employees and intellectual property, to immediately expand our digital marketing capabilities, reduce the cost to acquire customer accounts, and accelerate our progress to become a broader education solutions provider for students before, during, and immediately after college.
The acquisition was accounted for as a business combination using the acquisition method of accounting in accordance with the Financial Accounting Standards Board’s (“FASB’s”) Accounting Standard Codification 805, “Business Combinations,” whereby as of the acquisition date, the acquired tangible assets and liabilities were recorded at their estimated fair values. The identifiable intangible assets were recorded at fair values as determined by an independent appraiser. The final purchase price allocation for Nitro resulted in an excess purchase price over fair value of net assets acquired, or goodwill, of $51 million. Certain amounts are provisional and are subject to change, including final working capital adjustments and goodwill.
The results of operations of Nitro have been included in our consolidated financial statements since the acquisition date. We have not disclosed the pro forma impact of this acquisition to the results of operations for the three months ended March 31, 2022, as the pro forma impact was deemed immaterial. Transaction costs associated with the Nitro acquisition were approximately $3 million and were expensed as incurred within “Other operating expenses” in the consolidated statements of income.
Identifiable intangible assets at the acquisition date included definite life intangible assets with an aggregate fair value of approximately $75 million, including tradename and trademarks, customer relationships, and developed technology. The intangible assets will be amortized over a period of three to 10 years based on the estimated economic benefit derived from each of the underlying assets.
See Note 6, “Goodwill and Acquired Intangible Assets,” for additional details.
| | | | | | | | |
1. | Significant Accounting Policies (Continued) | |
Recently Issued and Adopted Accounting Pronouncements
On March 31, 2022, the FASB issued Accounting Standards Update (“ASU”) No. 2022-02, “Troubled Debt Restructurings and Vintage Disclosures” (“ASU No. 2022-02”), which eliminates the accounting guidance for troubled debt restructurings (“TDRs”) while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The enhanced disclosures are required to be provided for modifications made starting in the period of adoption. Information about modifications in periods before adoption is not required to be provided.
ASU No. 2022-02 also requires that entities disclose current-period gross charge-offs by year of origination. For entities that have adopted the amendments in ASU No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” (“CECL”), the amendment is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years.
Early adoption of the amendments in ASU No. 2022-02 is permitted if an entity has adopted CECL. The amendments should be applied prospectively. For the transition method related to the recognition and measurement of TDRs, an entity has the option to apply a modified retrospective transition method. We have elected to early adopt in all aspects ASU No. 2022-02 prospectively for the period beginning January 1, 2022. The adoption did not affect our consolidated financial statements. For additional information, see Note 4, "Allowance for Credit Losses".
2. Investments
Trading Investments
We periodically sell Private Education Loans through securitization transactions where we are required to retain a five percent vertical risk retention interest (i.e., five percent of each class issued in the securitizations). We classify those vertical risk retention interests related to the transactions as available-for-sale investments, except for the interest in the residual classes, which we classify as trading investments recorded at fair value with changes recorded through earnings. At March 31, 2022 and December 31, 2021, we had $39 million and $37 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, 2022 (dollars in thousands) | | Amortized Cost | | Allowance for credit losses(1) | | Gross Unrealized Gains | | Gross Unrealized Losses | | Estimated Fair Value |
Available-for-sale: | | | | | | | | | | |
Mortgage-backed securities | | $ | 400,647 | | | $ | — | | | $ | 74 | | | $ | (29,641) | | | $ | 371,080 | |
Utah Housing Corporation bonds | | 4,926 | | | — | | | — | | | (77) | | | 4,849 | |
U.S. government-sponsored enterprises and Treasuries | | 1,799,080 | | | — | | | — | | | (63,830) | | | 1,735,250 | |
Other securities | | 235,551 | | | — | | | — | | | (5,179) | | | 230,372 | |
Total | | $ | 2,440,204 | | | $ | — | | | $ | 74 | | | $ | (98,727) | | | $ | 2,341,551 | |
| | | | | | | | | | |
As of December 31, 2021 (dollars in thousands) | | Amortized Cost | | Allowance for credit losses(1) | | Gross Unrealized Gains | | Gross Unrealized Losses | | Estimated Fair Value |
Available-for-sale: | | | | | | | | | | |
Mortgage-backed securities | | $ | 376,313 | | | $ | — | | | $ | 1,857 | | | $ | (7,073) | | | $ | 371,097 | |
Utah Housing Corporation bonds | | 6,943 | | | — | | | 18 | | | — | | | 6,961 | |
U.S. government-sponsored enterprises and Treasuries | | 1,958,943 | | | — | | | 603 | | | (11,893) | | | 1,947,653 | |
Other securities | | 193,369 | | | — | | | 439 | | | (1,563) | | | 192,245 | |
Total | | $ | 2,535,568 | | | $ | — | | | $ | 2,917 | | | $ | (20,529) | | | $ | 2,517,956 | |
(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.
| | | | | | | | |
2. | Investments (Continued) | |
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 Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value | | Gross Unrealized Losses | | Estimated Fair Value |
As of March 31, 2022: | | | | | | | | | | | | |
Mortgage-backed securities | | $ | (12,056) | | | $ | 188,447 | | | $ | (17,585) | | | $ | 176,659 | | | $ | (29,641) | | | $ | 365,106 | |
Utah Housing Corporation bonds | | (77) | | | 4,849 | | | — | | | — | | | (77) | | | 4,849 | |
U.S. government-sponsored enterprises and Treasuries | | (61,996) | | | 1,647,055 | | | (1,834) | | | 63,176 | | | (63,830) | | | 1,710,231 | |
Other securities | | (3,266) | | | 137,845 | | | (1,913) | | | 36,752 | | | (5,179) | | | 174,597 | |
Total | | $ | (77,395) | | | $ | 1,978,196 | | | $ | (21,332) | | | $ | 276,587 | | | $ | (98,727) | | | $ | 2,254,783 | |
| | | | | | | | | | | | |
As of December 31, 2021: | | | | | | | | | | | | |
Mortgage-backed securities | | $ | (5,534) | | | $ | 261,404 | | | $ | (1,540) | | | $ | 36,587 | | | $ | (7,074) | | | $ | 297,991 | |
Utah Housing Corporation bonds | | — | | | — | | | — | | | — | | | — | | | — | |
U.S. government-sponsored enterprises and Treasuries | | (11,892) | | | 1,199,367 | | | — | | | — | | | (11,892) | | | 1,199,367 | |
Other securities | | (1,563) | | | 132,884 | | | — | | | — | | | (1,563) | | | 132,884 | |
Total | | $ | (18,989) | | | $ | 1,593,655 | | | $ | (1,540) | | | $ | 36,587 | | | $ | (20,529) | | | $ | 1,630,242 | |
At March 31, 2022 and December 31, 2021, 158 of 186 and 60 of 180, 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 is met, the security’s amortized cost basis is written down to fair value through 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 Bank, 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. The decline in value from December 31, 2021 to March 31, 2022 was driven by the current interest rate environment and is not credit related. 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.
| | | | | | | | |
2. | Investments (Continued) | |
As of March 31, 2022, 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, 2022 Year of Maturity (dollars in thousands) | | Amortized Cost | | Estimated Fair Value |
2022 | | $ | 194,309 | | | $ | 193,447 | |
2023 | | 162,595 | | | 159,383 | |
2024 | | 597,268 | | | 577,077 | |
2025 | | 297,077 | | | 293,021 | |
2026 | | 547,832 | | | 512,323 | |
2038 | | 73 | | | 76 | |
2039 | | 873 | | | 916 | |
2042 | | 2,912 | | | 2,768 | |
2043 | | 5,415 | | | 5,336 | |
2044 | | 7,015 | | | 6,959 | |
2045 | | 6,158 | | | 6,018 | |
2046 | | 9,374 | | | 9,085 | |
2047 | | 9,957 | | | 9,751 | |
2048 | | 2,427 | | | 2,437 | |
2049 | | 18,261 | | | 17,902 | |
2050 | | 127,490 | | | 116,445 | |
2051 | | 174,646 | | | 159,542 | |
2052 | | 40,972 | | | 38,693 | |
2053 | | 132,336 | | | 128,621 | |
2054 | | 103,214 | | | 101,751 | |
Total | | $ | 2,440,204 | | | $ | 2,341,551 | |
Some of our 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 $720 million and $888 million par value of securities pledged to this borrowing facility at March 31, 2022 and December 31, 2021, respectively, as discussed further in Notes to Consolidated Financial Statements, Note 8, “Borrowings.”
Other Investments