Cover page
Cover page | 3 Months Ended |
Mar. 31, 2020shares | |
Entity Information [Line Items] | |
Document Type | 10-Q |
Document Quarterly Report | true |
Document Period End Date | Mar. 31, 2020 |
Document Transition Report | false |
Entity File Number | 001-13251 |
Entity Registrant Name | SLM Corp |
Entity Incorporation, State or Country Code | DE |
Entity Tax Identification Number | 52-2013874 |
Entity Address, Address Line One | 300 Continental Drive |
Entity Address, City or Town | Newark, |
Entity Address, State or Province | DE |
Entity Address, Postal Zip Code | 19713 |
City Area Code | 302 |
Local Phone Number | 451-0200 |
Entity Current Reporting Status | Yes |
Entity Interactive Data Current | Yes |
Entity Filer Category | Large Accelerated Filer |
Smaller Reporting Company | false |
Emerging Growth Company | false |
Entity Shell Company | false |
Entity Common Stock, Shares Outstanding | 375,088,960 |
Amendment Flag | false |
Document Fiscal Year Focus | 2020 |
Document Fiscal Period Focus | Q1 |
Entity Central Index Key | 0001032033 |
Current Fiscal Year End Date | --12-31 |
Common Stock | |
Entity Information [Line Items] | |
Title of 12(b) Security | Common stock, par value $.20 per share |
Trading Symbol | SLM |
Security Exchange Name | NASDAQ |
Noncumulative Preferred Stock | |
Entity Information [Line Items] | |
Title of 12(b) Security | Floating Rate Non-Cumulative Preferred Stock, Series B, par value $.20 per share |
Trading Symbol | SLMBP |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and cash equivalents | $ 7,292,929 | $ 5,563,877 |
Investments [Abstract] | ||
Trading investments at fair value (cost of $12,551) | 11,360 | 0 |
Available-for-sale investments at fair value (cost of $607,867 and $485,756, respectively) | 614,582 | 487,669 |
Other investments | 82,853 | 84,420 |
Total investments | 708,795 | 572,089 |
Loans held for investment (net of allowance for losses of $1,673,324 and $441,912, respectively) | 21,695,851 | 24,667,792 |
Restricted cash | 189,439 | 156,883 |
Other interest-earning assets | 92,968 | 52,564 |
Accrued interest receivable | 1,281,746 | 1,392,725 |
Premises and equipment, net | 143,622 | 134,749 |
Income taxes receivable, net | 286,006 | 88,844 |
Tax indemnification receivable | 27,727 | 27,558 |
Other assets | 41,812 | 29,398 |
Total assets | 31,760,895 | 32,686,479 |
Liabilities | ||
Deposits | 24,445,614 | 24,283,983 |
Short-term borrowings | 0 | 289,230 |
Long-term borrowings | 4,708,036 | 4,354,037 |
Upromise member accounts | 187,103 | 192,662 |
Other liabilities | 299,559 | 254,731 |
Total liabilities | 29,640,312 | 29,374,643 |
Commitments and contingencies | ||
Equity | ||
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: 456.4 million and 453.6 million shares issued, respectively | 91,288 | 90,720 |
Additional paid-in capital | 1,226,886 | 1,307,630 |
Accumulated other comprehensive income (loss) (net of tax expense (benefit) of ($13,979) and ($3,995), respectively) | (43,274) | (12,367) |
Retained earnings | 1,243,722 | 1,850,512 |
Total SLM Corporation stockholders’ equity before treasury stock | 2,918,622 | 3,636,495 |
Less: Common stock held in treasury at cost: 81.3 million and 32.5 million shares, respectively | (798,039) | (324,659) |
Total equity | 2,120,583 | 3,311,836 |
Total liabilities and equity | $ 31,760,895 | $ 32,686,479 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Trading investments, cost | $ 12,551 | |
Available-for-sale investments, cost | 607,867 | $ 485,756 |
Allowance for credit losses on loans and leases | $ 1,673,324 | $ 441,912 |
Preferred stock, par or stated value (in dollars per share) | $ 0.20 | $ 0.20 |
Preferred stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, par value (in dollars per share) | $ 0.20 | $ 0.20 |
Common stock, shares authorized (in shares) | 1,125,000,000 | 1,125,000,000 |
Common stock, shares issued (in shares) | 456,400,000 | 453,600,000 |
Accumulated other comprehensive income, tax | $ 13,979 | $ 3,995 |
Treasury stock, shares (in shares) | 81,300,000 | 32,500,000 |
Series B Preferred Stock | ||
Preferred stock, par or stated value (in dollars per share) | $ 100 | $ 100 |
Preferred stock, shares outstanding (in shares) | 4,000,000 | 4,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income: | ||
Loans | $ 555,277 | $ 553,479 |
Investments | 2,517 | 1,421 |
Cash and cash equivalents | 17,139 | 11,553 |
Total interest income | 574,933 | 566,453 |
Interest expense: | ||
Deposits | 135,112 | 125,987 |
Interest expense on short-term borrowings | 4,217 | 1,165 |
Interest expense on long-term borrowings | 35,488 | 37,020 |
Total interest expense | 174,817 | 164,172 |
Net interest income | 400,116 | 402,281 |
Less: provisions for credit losses | 61,258 | 63,790 |
Net interest income after provisions for credit losses | 338,858 | 338,491 |
Non-interest income: | ||
Gains on sales of loans, net | 238,935 | 0 |
Gains on derivatives and hedging activities, net | 45,672 | 2,763 |
Other income | 7,487 | 13,378 |
Total non-interest income | 292,094 | 16,141 |
Non-interest expenses: | ||
Compensation and benefits | 84,222 | 78,738 |
FDIC assessment fees | 8,890 | 7,618 |
Other operating expenses | 54,186 | 53,791 |
Total non-interest expenses | 147,298 | 140,147 |
Income before income tax expense | 483,654 | 214,485 |
Income tax expense | 121,481 | 56,296 |
Net income | 362,173 | 158,189 |
Preferred stock dividends | 3,464 | 4,468 |
Net income attributable to SLM Corporation common stock | $ 358,709 | $ 153,721 |
Basic earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.88 | $ 0.35 |
Average common shares outstanding (in shares) | 409,786,000 | 434,574,000 |
Diluted earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.87 | $ 0.35 |
Average common and common equivalent shares outstanding (in shares) | 412,755,000 | 438,248,000 |
Declared dividends per common share attributable to SLM Corporation (in dollars per share) | $ 0.03 | $ 0.03 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 362,173 | $ 158,189 |
Other comprehensive income (loss): | ||
Unrealized gains (losses) on investments | 4,803 | 2,938 |
Unrealized gains (losses) on cash flow hedges | (45,694) | (14,117) |
Total unrealized gains (losses) | (40,891) | (11,179) |
Income tax benefit (expense) | 9,984 | 2,733 |
Other comprehensive income (loss), net of tax benefit (expense) | (30,907) | (8,446) |
Total comprehensive income | $ 331,266 | $ 149,743 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY - USD ($) $ in Thousands | Total | Series B Preferred Stock | Preferred Stock | Common Stock | Treasury Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Retained Earnings | Retained EarningsSeries B Preferred Stock |
Beginning Balance (in shares) at Dec. 31, 2018 | 4,000,000 | 435,681,488 | (14,174,733) | ||||||
Beginning Balance, issued (in shares) at Dec. 31, 2018 | 449,856,221 | ||||||||
Beginning Balance at Dec. 31, 2018 | $ 2,972,656 | $ 400,000 | $ 89,972 | $ (142,591) | $ 1,274,635 | $ 10,623 | $ 1,340,017 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 158,189 | 158,189 | |||||||
Other comprehensive loss, net of tax | (8,446) | (8,446) | |||||||
Total comprehensive income | 149,743 | ||||||||
Cash dividends: | |||||||||
Common Stock | $ (13,020) | (13,020) | |||||||
Preferred Stock | $ (4,468) | $ (4,468) | |||||||
Issuance of common shares (in shares) | 3,470,664 | 3,470,664 | |||||||
Issuance of common shares | $ 2,851 | $ 694 | 2,157 | ||||||
Stock-based compensation expense | $ 13,891 | 13,891 | |||||||
Common stock repurchased (in shares) | (5,435,476) | (5,435,476) | 5,435,476 | ||||||
Common stock repurchased | $ (60,000) | $ (60,000) | |||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (1,289,391) | (1,289,391) | 1,289,391 | ||||||
Shares repurchased related to employee stock-based compensation plans | $ (14,119) | $ (14,119) | |||||||
Ending Balance (in shares) at Mar. 31, 2019 | 4,000,000 | 432,427,285 | (20,899,600) | ||||||
Ending Balance, issued (in shares) at Mar. 31, 2019 | 453,326,885 | ||||||||
Ending Balance at Mar. 31, 2019 | 3,047,534 | $ 400,000 | $ 90,666 | $ (216,710) | 1,290,683 | 2,177 | 1,480,718 | ||
Beginning Balance (in shares) at Dec. 31, 2019 | 4,000,000 | 421,093,364 | (32,506,562) | ||||||
Beginning Balance, issued (in shares) at Dec. 31, 2019 | 453,599,926 | ||||||||
Beginning Balance at Dec. 31, 2019 | 3,311,836 | $ 400,000 | $ 90,720 | $ (324,659) | 1,307,630 | (12,367) | 1,850,512 | ||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||
Net income | 362,173 | 362,173 | |||||||
Other comprehensive loss, net of tax | (30,907) | (30,907) | |||||||
Total comprehensive income | 331,266 | ||||||||
Cash dividends: | |||||||||
Common Stock | (12,595) | (12,595) | |||||||
Preferred Stock | $ (3,464) | $ (3,464) | |||||||
Dividend equivalent units related to employee stock-based compensation plans | $ 0 | 265 | 265 | ||||||
Issuance of common shares (in shares) | 2,837,562 | 2,837,562 | |||||||
Issuance of common shares | $ 2,872 | $ 568 | 2,304 | ||||||
Stock-based compensation expense | $ 13,610 | 13,610 | |||||||
Common stock repurchased (in shares) | (47,736,847) | (47,736,847) | 47,736,847 | ||||||
Common stock repurchased | $ (558,167) | $ (461,244) | (96,923) | ||||||
Shares repurchased related to employee stock-based compensation plans (in shares) | (1,105,119) | (1,105,119) | 1,105,119 | ||||||
Shares repurchased related to employee stock-based compensation plans | $ (12,136) | $ (12,136) | |||||||
Ending Balance (in shares) at Mar. 31, 2020 | 4,000,000 | 375,088,960 | (81,348,528) | ||||||
Ending Balance, issued (in shares) at Mar. 31, 2020 | 456,437,488 | ||||||||
Ending Balance at Mar. 31, 2020 | $ 2,120,583 | $ 400,000 | $ 91,288 | $ (798,039) | $ 1,226,886 | $ (43,274) | $ 1,243,722 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Common stock dividend (in dollars per share) | $ 0.03 | $ 0.03 |
Series B Preferred Stock | ||
Preferred stock dividend (in dollars per share) | $ 0.87 | $ 1.12 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating activities | ||
Net income | $ 362,173 | $ 158,189 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Provisions for credit losses | 61,258 | 63,790 |
Income tax expense | 121,481 | 56,296 |
Amortization of brokered deposit placement fee | 5,193 | 3,555 |
Amortization of Secured Borrowing Facility upfront fee | 526 | 277 |
Amortization of deferred loan origination costs and loan premium/(discounts), net | 12,241 | 3,184 |
Net amortization of discount on investments | 610 | 189 |
Unrealized loss on investments | 1,191 | 0 |
Increase in tax indemnification receivable | (169) | (3,917) |
Depreciation of premises and equipment | 3,855 | 3,586 |
Stock-based compensation expense | 13,610 | 13,891 |
Unrealized gains on derivatives and hedging activities, net | (43,195) | (4,027) |
Gains on sales of loans, net | (238,935) | 0 |
Other adjustments to net income, net | 1,574 | 1,918 |
Changes in operating assets and liabilities: | ||
Increase in accrued interest receivable | (236,282) | (239,180) |
Increase in other interest-earning assets | (40,404) | (4,764) |
Increase in other assets | (32,874) | (681) |
Decrease in income taxes payable, net | (710) | (3,947) |
Increase in accrued interest payable | 18,610 | 7,405 |
Increase (decrease) in other liabilities | 134,661 | (39,049) |
Total adjustments | (217,759) | (141,474) |
Total net cash provided by operating activities | 144,414 | 16,715 |
Investing activities | ||
Loans acquired and originated | (2,310,173) | (2,253,624) |
Net proceeds from sales of loans held for investment | 3,283,408 | 0 |
Proceeds from claim payments | 11,314 | 11,587 |
Net decrease in loans held for investment | 1,177,589 | 1,077,273 |
Purchases of available-for-sale securities | (62,752) | (33,483) |
Proceeds from sales and maturities of available-for-sale securities | 18,836 | 4,570 |
Total net cash provided by (used in) investing activities | 2,118,222 | (1,193,677) |
Financing activities | ||
Brokered deposit placement fee | (1,762) | (1,498) |
Net increase in certificates of deposit | 69,971 | 404,121 |
Net increase (decrease) in other deposits | (55,044) | 290,631 |
Borrowings collateralized by loans in securitization trusts - issued | 633,532 | 451,128 |
Borrowings collateralized by loans in securitization trusts - repaid | (281,086) | (260,953) |
Repayment of borrowings under Secured Borrowing Facility | (289,230) | 0 |
Fees paid on Secured Borrowing Facility | (3,183) | (1,065) |
Common stock dividends paid | (12,595) | (13,020) |
Preferred stock dividends paid | (3,464) | (4,468) |
Common stock repurchased | (558,167) | (60,000) |
Net cash provided by (used in) financing activities | (501,028) | 804,876 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,761,608 | (372,086) |
Cash, cash equivalents and restricted cash at beginning of period | 5,720,760 | 2,681,895 |
Cash, cash equivalents and restricted cash at end of period | 7,482,368 | 2,309,809 |
Cash disbursements made for: | ||
Interest | 151,017 | 147,235 |
Income taxes paid | 3,630 | 3,700 |
Income taxes refunded | (2,890) | (41) |
Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Balance Sheets: | ||
Total cash, cash equivalents and restricted cash | $ 7,482,368 | $ 2,309,809 |
Significant Accounting Policies
Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of Presentation The accompanying unaudited, consolidated financial statements of SLM Corporation (“Sallie Mae,” “SLM,” the “Company,” “we,” or “us”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all the information and footnotes required by GAAP for complete consolidated financial statements. The consolidated financial statements include the accounts of SLM Corporation and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results for the year ending December 31, 2020 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, 2019 (the “2019 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. Allowance for Credit Losses We maintain an allowance for credit losses for the lifetime expected credit losses on loans in our portfolios, as well as for future loan commitments, at the reporting date. In determining the lifetime expected credit losses on our Private Education Loan and Personal Loan portfolios, we use a discounted cash flow model. This method requires us to project future principal and interest cash flows on our loans in those portfolios. To estimate the future expected cash flows, we use a vintage-based model that considers life of loan loss expectations, prepayments (both voluntary and involuntary), defaults, recoveries and any other adjustments deemed necessary, to determine the adequacy of the allowance at each balance sheet date. These cash flows are discounted at the loan’s effective interest rate to calculate the present value of those cash flows. Management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments. The difference between the present value of those cash flows and the amortized cost basis of the underlying loans is the allowance for loan losses. Entities that measure credit losses based on the present value of expected future cash flows are permitted to report the entire change in present value as credit loss expense, but may alternatively report the change in present value due to the passage of time as interest income. We have elected to report the entire change in present value as credit loss expense. In determining the loss rates used for the vintage-based approach, we start with our historical loss rates, stratify the loans within each vintage, and then adjust the loss rates based upon exogenous factors over a reasonable and supportable period. The reasonable and supportable period is meant to represent the period in which we believe we can estimate the impact of forecasted economic variables in our expected losses. At the end of the reasonable and supportable period, we immediately revert our forecast of expected losses to our historical averages. We use a two-year reasonable and supportable period, although this period is subject to change as our view evolves on our ability to reasonably estimate future losses based upon economic forecasts. In estimating our current expected credit losses, we use our historical experience to derive a base case adjusted for any qualitative factors (as described below). We also develop an adverse and favorable economic scenario as well. At each reporting date, we determine the appropriate weighting of these alternate scenarios based upon the current economic conditions and our view of the risks of alternate outcomes. This weighting of expectations is used in calculating our current expected credit losses recorded each period. In estimating recoveries, we use both estimates of what we would receive from the sale of defaulted loans as well as historical borrower payment behavior to estimate the timing and amount of future recoveries on charged-off loans. Our prepayment estimates include the effect of voluntary prepayments and consolidation (if the loans are consolidated to third parties), both of which shorten the lives of loans. Constant Prepayment Rate (“CPR”) estimates also consider the utilization of deferment, forbearance, and extended repayment plans, which lengthen the lives of loans. We regularly evaluate the assumptions used to estimate the CPRs. We use economic forecasts to help in the estimation of future CPRs. As with our loss forecasts, at the end of the two-year reasonable and supportable forecast for CPRs, we immediately revert to our historical long-term CPR rates. In addition to the above modeling approach, we also take certain other qualitative factors into consideration when calculating the allowance for loan losses. These qualitative factors include, but are not limited to, changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off and recovery practices not already included in the analysis, and the effect of other external factors such as legal and regulatory requirements on the level of estimated current expected credit losses. The evaluation of the allowance for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. If actual future performance in delinquency, charge-offs and recoveries is significantly different than estimated, or management assumptions or practices were to change, this could materially affect the estimate of the allowance for loan losses, the timing of when losses are recognized, and the related provision for credit losses on our consolidated statements of income. Below we describe in further detail our policies and procedures for the allowance for loan losses as they relate to our Private Education Loan, Personal Loan, Credit Card and FFELP Loan portfolios. Allowance for Private Education Loan Losses We collect on defaulted loans through a mix of in-house collectors, third-party collectors and sales to third-parties. For March 31, 2020 and December 31, 2019, we used both an estimate of recovery rates from in-house collections as well as expectations of future sales of defaulted loans to estimate the timing and amount of future recoveries on charged-off loans. In addition to the key assumptions/estimates above, some estimates are unique to our Private Education Loan portfolio. Estimates are made on our Private Education Loans regarding when each borrower will separate from school. The cash flow timing of when a borrower will begin making full principal and interest payments is dependent upon when the student either graduates or leaves school. These dates can change based upon many factors. We receive information regarding projected graduation dates from a third-party clearinghouse. The separation from school date will be updated quarterly based on updated information received from the school clearinghouse. Additionally, when we have a contractual obligation to fund a loan or a portion of a loan at a later date, we make an estimate regarding the percentage of this obligation that will be funded. This estimate is based on historical experience. For unfunded commitments, we recognize the life of loan allowance as a liability. Once the loan is funded, that liability transfers to the allowance for Private Education Loan losses. Key Credit Quality Indicators - Private Education Loans We determine the collectability of our Private Education Loan portfolio by evaluating certain risk characteristics. We consider credit score at original approval and periodically refreshed/updated credit scores through the loan’s term, existence of a cosigner, loan status and loan seasoning as the key credit quality indicators because they have the most significant effect on the determination of the adequacy of our allowance for loan losses. Credit scores are an indicator of the creditworthiness of borrowers and the higher the credit scores the more likely it is the borrowers will be able to make all of their contractual payments. Loan status affects the credit risk because a past due loan is more likely to result in a credit loss than a current loan. Additionally, loans in the deferred payment status have different credit risk profiles compared with those in current pay status. Loan seasoning affects credit risk because a loan with a history of making payments generally has a lower incidence of default than a loan with a history of making infrequent or no payments. The existence of a cosigner lowers the likelihood of default as well. We monitor and update these credit quality indicators in the analysis of the adequacy of our allowance for loan losses on a quarterly basis. Private Education Loans generally do not require borrowers to begin repayment until at least six months after the borrowers have graduated or otherwise separated from school. Consequently, the loss estimates for these loans is generally low while the borrower is in school and then increases upon the end of the six-month grace period after separation from school. At March 31, 2020 and December 31, 2019, 27 percent and 25 percent, respectively, of the principal balance of the Private Education Loan portfolio was related to borrowers who are in an in-school (fully deferred), grace, or other deferment status and not required to make payments. Our collection policies for Private Education Loans allow for periods of nonpayment for certain borrowers requesting an extended grace period upon leaving school or experiencing temporary difficulty meeting payment obligations. This is referred to as forbearance and is considered in estimating the allowance for loan losses. As part of concluding on the adequacy of the allowance for loan losses for Private Education Loans, we review key allowance and loan metrics. The most relevant of these metrics considered are the allowance as a percentage of ending total loans, delinquency percentages and forbearance percentages. We consider a Private Education Loan to be delinquent 31 days after the last payment was contractually due. Troubled Debt Restructurings (“TDRs”) In estimating the expected defaults for our Private Education Loans that are considered TDRs, we follow the same discounted cash flow process described above but use the historical loss rates related to past TDR loans. The appropriate gross loss rates are determined for each individual loan by determining loan maturity, risk characteristics and macroeconomic conditions. The allowance for our TDR portfolio is included in our overall allowance for Private Education Loans. Our TDR portfolio is comprised mostly of loans with interest rate reductions and loans with forbearance usage greater than three months, as further described below. We adjust the terms of loans for certain borrowers when we believe such changes will help our customers manage their student loan obligations, achieve better student outcomes, and increase the collectability of the loans. These changes generally take the form of a temporary forbearance of payments, a temporary interest rate reduction, a temporary interest rate reduction with a permanent extension of the loan term, and/or a short-term extended repayment alternative. When we give a borrower facing financial difficulty an interest rate reduction, we temporarily reduce the rate (currently to 4.0 percent) for a two-year period and, in the vast majority of cases, permanently extend the final maturity of the loan. The combination of these two loan term changes helps reduce the monthly payment due from the borrower and increases the likelihood the borrower will remain current during the interest rate modification period as well as when the loan returns to its original contractual interest rate. We classify a loan as a TDR due to forbearance using a two-step process. The first step is to identify a loan that was in full principal and interest repayment status and received more than three months of forbearance in a 24-month period; however, during the first nine months after a loan had entered full principal and interest repayment status, we do not count up to the first six months of forbearance received during that period against the three-month policy limit. The second step is to evaluate the creditworthiness of the loan by examining its most recent refreshed FICO score. Loans that have met the criteria in the first test and have a FICO score above a certain threshold (based on the most recent quarterly FICO score refresh) will not be classified as TDRs. Loans that have met the criteria in the first test and have a FICO score under the threshold (based on the most recent quarterly FICO score refresh) will be classified as TDRs. A loan also becomes a TDR when it is modified to reduce the interest rate on the loan (regardless of when such modification occurs and/or whether such interest rate reduction is temporary). Once a loan qualifies for TDR status, it remains a TDR for allowance purposes for the remainder of its life. About half our loans that are considered TDRs involve a temporary forbearance of payments and do not change the contractual interest rate of the loan. As of March 31, 2020 and December 31, 2019, approximately 48 percent and 50 percent, respectively, of TDRs were classified as such due to their forbearance status. For additional information, see Note 6, “Allowance for Loan Losses” in our 2019 Form 10-K. During the first quarter of 2020, the respiratory disease caused by a novel coronavirus, coronavirus 2019 or COVID-19 (“COVID-19”), began to spread worldwide and has caused significant disruptions to the U.S. and world economies. On March 27, 2020, President Trump signed into law the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”), which, among other things, allows us to (i) elect to suspend the requirements under GAAP for loan modifications related to COVID-19 that would otherwise be categorized as TDRs, and (ii) suspend any determination of a loan modified as a result of the effects of COVID-19 as being a TDR, including impairment for accounting purposes. We have elected to suspend TDR accounting for modifications of loans that occur as a result of COVID-19 for the applicable period of the CARES Act relief. The relief from TDR guidance applies to modifications of loans that were not more than 30 days past due as of December 31, 2019, and that occur during the period beginning on March 1, 2020, and ending on the earlier of (i) sixty days after the date on which the national emergency related to the COVID-19 outbreak is terminated, or (ii) December 31, 2020. Off-Balance Sheet Exposure for Contractual Loan Commitments When we approve a Private Education Loan at the beginning of an academic year, that approval may cover the borrowing for the entire academic year. As such, we do not always disburse the full amount of the loan at the time of such approval, but instead have a commitment to fund a portion of the loan at a later date (usually the start of the second semester or subsequent trimesters). We estimate expected credit losses over the contractual period in which we are exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by us. The discounted cash flow approach described above includes expected future contractual disbursements. The portion of the allowance for loan losses related to future disbursements is shown as a liability on the face of the balance sheet, and related provision for credit losses is reflected on the income statement. Uncollectible Interest The majority of the total accrued interest receivable on our Private Education Loan portfolio represents accrued interest on deferred loans where no payments are due while the borrower is in-school and on fixed-pay loans where the borrower makes a $25 monthly payment that is smaller than the interest accrued on the loan in that month. The accrued interest on these loans will be capitalized and increase the unpaid principal balance of the loans when the borrower exits the grace period after separation from school. The discounted cash flow approach described above considers both the collectability of principal as well as this portion of accrued interest that is expected to capitalize to the balance of the loan. Therefore, the allowance for this portion of accrued interest balance is included in our allowance for loan losses. The discounted cash flow approach does not consider interest accrued on loans that are in a full principal and interest repayment status or in interest-only repayment status. We separately capture the amount of expected uncollectible interest associated with these loans using historical experience to estimate the uncollectible interest for the next four months at each period-end date. This amount is recorded as a reduction of interest income. Accrued interest receivable is separately disclosed on the face of the balance sheet. Allowance for Personal Loans From late 2016 through mid-2018, we acquired newly-originated Personal Loans from a marketplace lender. In 2018, we began to originate Personal Loans and ceased originating these loans at the end of 2019. We maintain an allowance for Personal Loan losses at an amount sufficient to absorb lifetime expected credit losses using the same discounted cash flow approach described above for Private Education Loans. The difference between the amortized cost basis and the present value of expected cash flows on our Personal Loan portfolio equals the allowance related to this portfolio. At March 31, 2020, and December 31, 2019, we held $747 million and $984 million, respectively, in Personal Loans, net of allowance. At March 31, 2020, there were no Personal Loans classified as TDRs. We collect on defaulted Personal Loans through a mix of in-house collectors, third-party collectors and sales to third-parties. For March 31, 2020 and December 31, 2019, we used both an estimate of recovery rates from in-house collections as well as expectations of future sales of defaulted Personal Loans to estimate the timing and amount of future recoveries on charged-off Personal Loans. Key Credit Quality Indicators - Personal Loan s For Personal Loans, we consider FICO scores at original approval and periodically refreshed/updated credit scores through the loan’s term, loan seasoning, and loan delinquency status to be our key credit quality indicators for the same reasons discussed above under “— Key Credit Quality Indicators — Private Education Loans.” As part of concluding on the adequacy of the allowance for Personal Loan losses, we review key allowance and loan metrics. The most relevant of these metrics considered are the allowance as a percentage of ending total loans, delinquency percentages, and forbearance percentages. We consider a Personal Loan to be delinquent 31 days after the last payment was contractually due. Allowance for Credit Card Loans We use the gross loss approach when estimating the allowance for loan losses for our Credit Card portfolio. Because our Credit Card portfolio is new and we do not have historical loss experience, we use estimated loss rates reported by other financial institutions to estimate our allowance for loan losses for credit cards, net of expected recoveries. In addition, we use a model that utilizes purchased credit card information with risk characteristics similar to those of our own portfolio as a challenger model. We then consider any qualitative factors that may change our future expectations of losses. As all of our Credit Card loans are unconditionally cancelable by us, the issuer, we do not record any estimate of credit losses for unused portions of our Credit Card commitments. Allowance for FFELP Loan Losses FFELP Loans are insured as to their principal and accrued interest in the event of default, subject to a risk-sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement on all qualifying default claims. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement on all qualifying claims. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement. Because we bear a maximum of three percent loss exposure due to this federal guarantee, our allowance for loan losses for FFELP loans and related periodic provision expense are small. We use the gross loss approach when estimating the allowance for loan losses for our FFELP Loans. We maintain an allowance for loan losses for our FFELP Loans at a level sufficient to cover lifetime expected credit losses. The allowance for FFELP Loan losses uses historical experience of customer default behavior. We apply the default rate projections, net of applicable risk sharing, to our FFELP Loans for the current period to perform our quantitative calculation. Once the quantitative calculation is performed, we review the adequacy of the allowance for loan losses and determine if qualitative adjustments need to be considered. Loan Interest Income For all loans, including impaired loans, classified as held for investment, we recognize interest income as earned, adjusted for the amortization of deferred direct origination and acquisition costs. Deferred fees or costs are required to be recognized as yield adjustments over the life of the related loans and are recognized by the interest method. The objective of the interest method is to arrive at periodic interest income (including recognition of fees and costs) at a constant effective yield on the net investment in the receivable (i.e., the principal amount of the receivable adjusted by unamortized fess or costs, purchase premium or discount and any hedging activity—these unamortized costs will collectively be referred to as “basis adjustments”). The difference between the periodic interest income so determined and the interest income determined by applying the stated interest rate to the outstanding principal amount of the receivable is the amount of periodic amortization. For the amortization of the basis adjustments, we determine the constant effective yield necessary to apply the interest method based upon the payment terms required by the loan contract. Expected prepayments of principal are not included in the determination of the effective interest rate. For fixed-rate loans, when a prepayment occurs the unamortized balance of the amortized cost adjustments is adjusted so that future amortization (based upon the contractual terms of the loan) will result in constant effective yield equal to the original effective interest rate. Prepayments do not result in a change in the effective interest rate of the loan. We determine the contractual payments on a pool basis; as such, when a prepayment occurs, future contractual payments will be determined assuming the pool will make smaller payments through the original term of the contract. The adjustment to the unamortized basis adjustment balance is recorded in interest income. For variable-rate loans, the effective interest rate at the time of origination is the loan’s effective interest rate assuming all future contractual payments. The effective interest rate remains the same for that loan until the loan rate changes. If there is no prepayment and no change in the stated interest rate, the periodic amortization of the basis adjustments is equal to the difference between the effective interest rate multiplied by the book basis and the contractual interest due. We determine the contractual payments on a pool basis; as such, when a prepayment occurs, future contractual payments will be determined assuming the pool will make smaller payments through the original term of the contract. The adjustment to the unamortized basis adjustment balance is recorded in interest income. When the interest rate on a variable-rate loan changes, the effective interest rate is recalculated using the same methodology described in the previous paragraph; however, the future contractual payments are changed to reflect the new interest rate. There is no forecasting of future expected changes in interest rates. The accounting basis used to determine the effective interest rate of the cash flows is equal to the balances of the unpaid principal balance and unamortized basis adjustments at the time of the rate change. We also pay to the U.S. Department of Education (the “DOE”) an annual 105 basis point Consolidation Loan Rebate Fee on FFELP consolidation loans, which is netted against loan interest income. Additionally, interest earned on education loans reflects potential non-payment adjustments in accordance with our uncollectible interest recognition policy. We do not amortize any adjustments to the basis of loans when they are classified as held-for-sale. With the adoption of CECL on January 1, 2020, we continue to analyze the collectability of accrued interest associated with loans not currently in full principal and interest repayment status or in interest only repayment status as discussed above; however, we will change the recognition of the allowance for this portion of uncollectible interest (amounts to be capitalized after separation from school and the expiration of the grace period) to the provision for loan losses from our historical practice of recording it as a reduction of interest income, as well as classifying this allowance as part of our allowance for loan losses as opposed to our historical practice of recording it as a reduction of accrued interest income receivable. The allowance for the portion of uncollectible interest on loans making full interest payments will continue to be recorded as a reduction of interest income. We recognize certain fee income (primarily late fees) on education loans when earned according to the contractual provisions of the promissory notes, as well as our expectation of collectability. Fee income is recorded when earned in “other non-interest income” in the accompanying consolidated statements of income. Recently Issued and Adopted Accounting Pronouncements ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In June 2016, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which became effective for us on January 1, 2020 (“CECL”). This ASU eliminated the previous accounting guidance for the recognition of credit impairment. Under the new guidance, for all loans carried at amortized cost, upon loan origination we are required to measure our allowance for loan losses based on our estimate of all current expected credit losses over the remaining contractual term of the assets. Updates to that estimate each period will be recorded through provision expense. The estimate of loan losses must be based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU does not mandate the use of any specific method for estimating credit loss, permitting companies to use judgment in selecting the approach that is most appropriate in their circumstances. In addition, Topic 326 made changes to the accounting for available-for-sale debt securities. One such change is to require an assessment of unrealized losses on available-for-sale debt securities that we have the ability and intent to hold for a period of time sufficient to recover the amortized cost of the security, for the purpose of determining credit impairment. If any credit impairment exists, an allowance for losses must be established for the amount of the unrealized loss that is determined to be credit-related. Adoption of the standard had a material impact on how we record and report our financial condition and results of operations, and on regulatory capital. The following table illustrates the impact of the cumulative effect adjustment made upon adoption of CECL: January 1, 2020 As reported under CECL Pre-CECL Adoption Impact of CECL Adoption Assets: Allowance for loan losses: Private Education Loans $ 1,435,130 $ 374,300 $ 1,060,830 FFELP Loans 4,485 1,633 2,852 Personal Loans 145,060 65,877 79,183 Credit Card 290 102 188 Total $ 1,584,965 $ 441,912 $ 1,143,053 Deferred tax asset $ 415,540 $ 109,369 $ 306,171 Liabilities: Allowance for loan losses: Off-balance sheet exposures $ 118,239 $ 2,481 $ 115,758 Equity: Retained Earnings $ 897,873 $ 1,850,512 $ (952,639) This transition adjustment is inclusive of qualitative adjustments incorporated into our CECL allowance as necessary, to address any limitations in the models used. We also elected to use the relief offered in the interim final rule recently issued by the Federal Deposit Insurance Corporation (the “FDIC”) and other federal banking agencies that provides those banking organizations adopting CECL in 2020 with the option to delay for two years the estimated impact of CECL on regulatory capital and to phase in the aggregate impact of the deferral on regulatory capital over a subsequent three year period. Under this interim final rule, because we have elected the deferred option, the regulatory capital impact of our transition adjustments recorded on January 1, 2020 from the adoption of CECL will be deferred for two years. In addition, 25 percent of the ongoing impact, from January 1, 2020 through the end of the two-year deferral period, of CECL on our allowance for loan losses, retained earnings, and average total consolidated assets, each as reported for regulatory capital purposes, will be added to the deferred transition amounts (“adjusted transition amounts”) and deferred for the two-year period. At the conclusion of the two-year period (January 1, 2022), the adjusted transition amounts will be phased-in for regulatory capital purposes at a rate of 25 percent per year, with the phased-in amounts included in regulatory capital at the beginning of each year. For additional information, see Note 11, “Regulatory Capital.” |
Investments
Investments | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Trading Investments In March 2020, we sold approximately $1.7 billion of Private Education Loans through securitization transactions where we were required to retain a 5 percent vertical risk retention interest (i.e., 5 percent of each class issued in the securitizations). We classified those vertical risk retention interests related to the transactions as available-for-sale investments, except for the interest in the residual classes, which we classified as trading investments recorded at fair value with changes recorded through earnings. At March 31, 2020, we had $11 million classified as trading investments. Available-for-Sale Investments The amortized cost and fair value of securities available for sale are as follows: March 31, 2020 Amortized Cost Allowance for credit losses (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale: Mortgage-backed securities $ 206,640 $ — $ 6,400 $ — $ 213,040 Utah Housing Corporation bonds 15,931 — 156 (74) 16,013 U.S. government-sponsored enterprises 306,491 — 3,206 (8) 309,689 Other securities 78,805 — — (2,965) 75,840 Total $ 607,867 $ — $ 9,762 $ (3,047) $ 614,582 December 31, 2019 Amortized Cost Allowance for credit losses (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale: Mortgage-backed securities $ 215,888 $ — $ 1,895 $ (658) $ 217,125 Utah Housing Corporation bonds 19,474 — 145 (83) 19,536 U.S. government-sponsored enterprises 250,394 — 635 (21) 251,008 Total $ 485,756 $ — $ 2,675 $ (762) $ 487,669 ___________ (1) Represents the amount of impairment that has resulted from credit related factors, and that was recognized in the consolidated balance sheets (as a credit loss expense on available-for-sale securities). The amount excludes unrealized losses related to non-credit factors. The following table summarizes the amount of gross unrealized losses for our available-for-sale securities and the estimated fair value for securities having gross unrealized loss positions, categorized by length of time the securities have been in an unrealized loss position: Less than 12 months 12 months or more Total Gross Estimated Gross Estimated Gross Estimated As of March 31, 2020: Mortgage-backed securities $ — $ — $ — $ — $ — $ — Utah Housing Corporation bonds — — (74) 8,965 (74) 8,965 U.S. government-sponsored enterprises (8) 16,823 — — (8) 16,823 Other securities (2,965) 75,840 — — (2,965) 75,840 Total $ (2,973) $ 92,663 $ (74) $ 8,965 $ (3,047) $ 101,628 As of December 31, 2019: Mortgage-backed securities $ (218) $ 25,624 $ (440) $ 42,448 $ (658) $ 68,072 Utah Housing Corporation bonds — — (83) 11,097 (83) 11,097 U.S. government-sponsored enterprises (21) 14,977 — — (21) 14,977 Total $ (239) $ 40,601 $ (523) $ 53,545 $ (762) $ 94,146 For available-for-sale debt 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 critera, 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, with amortized costs of $51 million, $104 million, and $52 million, respectively, at March 31, 2020. We own these securities to meet our requirements under the Community Reinvestment Act (“CRA”). As of March 31, 2020, none of the separate mortgage-backed securities in our investment portfolio had unrealized losses. Approximately 37 percent of our mortgage-backed securities were issued under Ginnie Mae programs that carry a full faith and credit guarantee from the U.S. Government. The remaining securities in our portfolio carry a principal and interest guarantee by Fannie Mae or Freddie Mac, respectively. We have the ability and the intent to hold each of these securities for a period of time sufficient for the market price to recover to at least the adjusted amortized cost of the security. As of December 31, 2019, 33 of the 107 separate mortgage-backed securities in our investment portfolio had unrealized losses, and 18 of the 33 securities in a net loss position were issued under Ginnie Mae programs that carry a full faith and credit guarantee from the U.S. Government. The remainder carried a principal and interest guarantee by Fannie Mae or Freddie Mac, respectively. We also invest in Utah Housing Corporation bonds for the purpose of complying with the CRA. As of March 31, 2020, one of the three separate bonds was in a net loss position. 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. These bonds are rated Aa3 by Moody’s Investors Service, and the majority of the underlying assets are insured by the Federal Housing Administration or the Department of Veterans Affairs. Based on this qualitative analysis, we have determined that no credit impairment exists. We also invest in U.S. government-sponsored enterprise securities issued by the Federal Home Loan Bank, Freddie Mac and the Federal Farm Credit Bank. As of March 31, 2020, 1 of the 20 securities had unrealized losses. 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. These bonds are rated AA+ by Moody’s Investors Services. Based on this qualitative analysis, we have determined that no credit impairment exists. In March 2020, we sold approximately $1.7 billion of Private Education Loans through a securitization transaction where we were required to retain a 5 percent vertical risk retention interest. We classify the non-residual vertical retention interests as available-for-sale investments. As of March 31, 2020, 10 out of 10 of these investments had unrealized losses. 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 investment and do not consider a credit impairment to exist. As of March 31, 2020, 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. Year of Maturity Amortized Cost Estimated Fair Value 2020 $ 94,048 $ 94,320 2021 145,340 147,711 2022 54,127 54,317 2023 12,977 13,341 2038 175 192 2039 2,457 2,668 2042 7,115 7,172 2043 11,130 11,560 2044 16,149 16,684 2045 16,896 17,286 2046 27,641 28,385 2047 39,927 40,313 2048 10,248 10,664 2049 84,282 87,458 2050 6,550 6,671 2054 78,805 75,840 Total $ 607,867 $ 614,582 The mortgage-backed 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 $285 million and $252 million par value of mortgage-backed securities pledged to this borrowing facility at March 31, 2020 and December 31, 2019, respectively, as discussed further in Note 6, “Borrowings.” Other Investments Investments in Non-Marketable Securities We hold investments in non-marketable securities and account for these investments at cost, less impairment, plus or minus observable price changes of identical or similar securities of the same issuer. In the third quarter of 2019, we funded an additional investment in an issuer whose equity securities we purchased in the past. We used the valuation associated with the more recent securities investment to adjust the valuation of our previous investments and, as a result, recorded a gain of $8 million on our earlier equity securities investments. As of March 31, 2020 and December 31, 2019, our total investment in the securities of this issuer was $26 million and $26 million, respectively. Low Income Housing Tax Credit Investments We invest in affordable housing projects that qualify for the low income housing tax credit (“LIHTC”), which is designed to promote private development of low income housing. These investments generate a return mostly through realization of federal tax credits. Total carrying value of the LIHTC investments was $57 million at March 31, 2020 and $58 million at December 31, 2019. We are periodically required to provide additional financial support during the investment period. Our liability for these unfunded commitments was $25 million at March 31, 2020 and $29 million at December 31, 2019. Related to these investments, we recognized tax credits and other tax benefits through tax expense of $1 million at March 31, 2020 and $6 million at December 31, 2019. Tax credits and other tax benefits are recognized as part of our annual effective tax rate used to determine tax expense in a given quarter. Accordingly, the portion of a year’s expected tax benefits recognized in any given quarter may differ from 25 percent. |
Loans Held for Investment
Loans Held for Investment | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Loans Held for Investment | Loans Held for Investment Loans held for investment consist of Private Education Loans, FFELP Loans, Personal Loans and Credit Cards. We use “Private Education Loans” to mean education loans to students or their families that are not made, insured or guaranteed by any state or federal government. Private Education Loans do not include loans insured or guaranteed under the previously existing Federal Family Education Loan Program (“FFELP”). We use “Personal Loans” to mean those unsecured loans to individuals that may be used for non-educational purposes. We use “Credit Cards” to refer to our suite of cash-back Credit Cards with bonus rewards. Our Private Education Loans are made largely to bridge the gap between the cost of higher education and the amount funded through financial aid, government loans and customers’ resources. Private Education Loans bear the full credit risk of the customer. We manage this risk through risk-performance underwriting strategies and qualified cosigners. Private Education Loans may be fixed-rate or may carry a variable interest rate indexed to LIBOR, the London interbank offered rate. As of March 31, 2020 and December 31, 2019, 55 percent and 58 percent, respectively, of all of our Private Education Loans were indexed to LIBOR. We provide incentives for customers to include a cosigner on the loan, and the vast majority of Private Education Loans in our portfolio are cosigned. We also encourage customers to make payments while in school. FFELP Loans are insured as to their principal and accrued interest in the event of default, subject to a risk-sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement on all qualifying claims. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement on all qualifying claims. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement on all qualifying claims. In the first quarter of 2020, we recognized a $239 million gain from the sale of approximately $3.1 billion of our Private Education Loans, including $2.9 billion of principal and $199 million in capitalized interest, as well as $12 million in accrued interest to unaffiliated third parties. There were VIEs created in the execution of certain of these loan sales; however, based on our consolidation analysis, we are not the primary beneficiary of these VIEs. These transactions qualified for sale treatment and removed the balance of the loans from our balance sheet on the respective settlement dates. We remained the servicer of these loans pursuant to applicable servicing agreements executed in connection with the sales. Loans held for investment are summarized as follows: March 31, December 31, 2020 2019 Private Education Loans: Fixed-rate $ 9,813,075 $ 9,830,301 Variable-rate 11,813,672 13,359,290 Total Private Education Loans, gross 21,626,747 23,189,591 Deferred origination costs and unamortized premium/(discount) 65,267 81,224 Allowance for loan losses (1,515,781) (374,300) Total Private Education Loans, net 20,176,233 22,896,515 FFELP Loans 766,954 783,306 Deferred origination costs and unamortized premium/(discount) 2,113 2,143 Allowance for loan losses (4,296) (1,633) Total FFELP Loans, net 764,771 783,816 Personal Loans (fixed-rate) 899,704 1,049,007 Deferred origination costs and unamortized premium/(discount) 413 513 Allowance for loan losses (152,673) (65,877) Total Personal Loans, net 747,444 983,643 Credit Cards (fixed-rate) 7,234 3,884 Deferred origination costs and unamortized premium/(discount) 743 36 Allowance for loan losses (574) (102) Total Credit Cards, net 7,403 3,818 Loans held for investment, net $ 21,695,851 $ 24,667,792 The estimated weighted average life of education loans in our portfolio was approximately 5.3 years and 5.4 years at March 31, 2020 and December 31, 2019, respectively. The average balance and the respective weighted average interest rates of loans in our portfolio are summarized as follows: Three Months Ended March 31, 2020 2019 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 23,502,844 8.86 % $ 21,732,826 9.50 % FFELP Loans 776,326 4.29 837,950 4.94 Personal Loans 973,671 12.11 1,176,466 11.81 Total portfolio $ 25,252,841 $ 23,747,242 Certain Collection Tools - Private Education Loans We adjust the terms of loans for certain borrowers when we believe such changes will help our customers manage their student loan obligations, achieve better student outcomes, and increase the collectability of the loan. These changes generally take the form of a temporary forbearance of payments, a temporary interest rate reduction, a temporary interest rate reduction with a permanent extension of the loan term, and/or a short-term extended repayment alternative. Forbearance is granted prospectively for borrowers who are current in their payments and may be granted retroactively for certain delinquent borrowers. Forbearance allows a borrower to temporarily not make scheduled payments or to make smaller than scheduled payments, in each case for a specified period of time. Using forbearance extends the original term of the loan by the term of forbearance taken. Forbearance does not grant any reduction in the total principal or interest repayment obligation. While a loan is in forbearance status, interest continues to accrue and is capitalized to principal when the loan re-enters repayment status. We grant forbearance through our servicing centers to borrowers who are current in their payments and through our collections centers to certain borrowers who are delinquent. Our forbearance policies and practices vary depending upon whether a borrower is current or delinquent at the time forbearance is requested, generally with stricter payment requirements for delinquent borrowers. We view the population of borrowers that use forbearance positively because the borrowers are either proactively reaching out to us to obtain assistance in managing their obligations or are working with our collections center to bring their loans current. Forbearance may be granted through our servicing centers to customers who are exiting their grace period, which generally is the six-month period after the borrower separates from school and during which the borrower is not required to make full principal and interest payments, and to other customers who are current in their payments, to provide temporary payment relief. In these circumstances, a customer’s loan is placed into a forbearance status in limited monthly increments and is reflected in the forbearance status at month-end during this time. At the end of the forbearance period, the customer will enter repayment status as current and is expected to begin making scheduled monthly payments. Currently, we generally grant forbearance in our servicing centers if a borrower who is current requests it for increments of up to three months at a time, for up to 12 months. Forbearance may also be granted through our collections centers to customers who are delinquent in their payments. If specific payment requirements are met, the forbearance can cure the delinquency and the customer is returned to a current repayment status. Forbearance as a collection tool is used most effectively when applying historical experience and our judgment to a customer’s unique situation. We leverage updated customer information and other decision support tools to best determine who will be granted forbearance based on our expectations as to a customer’s ability and willingness to repay their obligation. This strategy is aimed at assisting customers while mitigating the risks of delinquency and default as well as encouraging resolution of delinquent loans. In all instances, we require one or more payments before granting forbearance to delinquent borrowers. The COVID-19 pandemic is having far reaching, negative impacts on individuals, businesses, and, consequently, the overall economy. Specifically, COVID-19 has materially disrupted business operations resulting in significantly higher levels of unemployment or underemployment. As a result, we expect many of our individual customers will experience financial hardship, making it difficult, if not impossible, to meet their payment obligations to us without temporary assistance. We are monitoring key metrics as early warning indicators of financial hardship, including changes in weekly unemployment claims, enrollment in auto-debit payments, requests for new forbearances, enrollment in hardship payment plans and early delinquency metrics. As a result of the negative impact on employment from COVID-19, we are anticipating higher levels of financial hardship for our customers, which we expect will lead to higher levels of forbearance, delinquency and defaults. We expect that, left unabated, this deterioration in forbearance, delinquency and default rates will persist until such time as the economy and employment return to relatively normal levels. We assist customers with an array of payment programs during periods of financial hardship as standard operating convention, including: forbearance, which defers payments during a short-term hardship; our Graduated Repayment Plan (“GRP”), which is an interest-only payment for 12 months; or a loan modification that, in the event of long-term hardship, reduces the interest rate on a loan to 4 percent for 24 months and/or permanently extends the maturity date of the loan. Historically we have utilized disaster forbearance for material events, including hurricanes, wildfires and floods. Disaster forbearance defers payments for as much as 90 days upon enrollment. We have invoked this same disaster forbearance program to assist our customers through COVID-19 and offer this program across our operations, including through mobile app and self-service channels such as chat and interactive voice response (“IVR”). Customers who receive a disaster forbearance will not progress in delinquency and will not be assessed late fees or other fees. During a disaster forbearance, a customer’s credit file will continue to reflect the status of the loan as it was immediately prior to granting the disaster forbearance. During the period of the disaster forbearance, interest will continue to accrue, but will not be added to the loan balance until the end of the loan term. If the financial hardship extends beyond 90 days, additional assistance will be available for eligible customers. This program is applied across our Private Education Loan and Personal Loan portfolios. Management continually monitors our credit administration practices and may periodically modify these practices based upon performance, industry conventions, and/or regulatory feedback. In light of these considerations, we previously announced that we plan to implement certain changes to our credit administration practices in the future. As discussed below, however, we have postponed until the fourth quarter of 2020 the implementation of the announced credit administration practices changes due to the COVID-19 pandemic. Specifically, we previously announced that we plan to revise our credit administration practices limiting the number of forbearance months granted consecutively and the number of times certain extended or reduced repayment alternatives may be granted. For example, we currently grant forbearance to borrowers without requiring any period of prior principal and interest payments, meaning that, if a borrower satisfies all eligibility requirements, forbearance increments may be granted consecutively. We previously announced that, beginning in the second quarter of 2020, we would phase in a required six-month period between successive grants of forbearance and between forbearance grants and certain other repayment alternatives. We announced this required period will not apply, however, to forbearances granted during the first six months following a borrower’s grace period and will not be required for a borrower to receive a contractual interest rate reduction. In addition, we announced we would limit the participation of delinquent borrowers in certain short-term extended or interest-only repayment alternatives to once in 12 months and twice in five years. As previously announced, prior to full implementation of the credit administration practices changes described above, management will conduct a controlled testing program on randomly selected borrowers to measure the impact of the changes on our customers, our credit operations, and key credit metrics. The testing commenced in October 2019 for some of the planned changes on a very small percentage of our total portfolio and we originally expected to expand the testing over subsequent quarters as the impacts are better understood. Due to the COVID-19 pandemic, however, we have postponed implementation of the credit administration practices changes and related testing until the fourth quarter of 2020 so that we can be more flexible in dealing with our customers’ financial hardship. Management now expects to have completed implementation of the new policies and practices by mid-2021. However, we may modify or delay the contemplated practice changes, the proposed timeline, or the method of implementation as we learn more about the impacts during the progression of the testing program. We also offer rate and term modifications to customers experiencing more severe hardship. Currently, we temporarily reduce the contractual interest rate on a loan to 4.0 percent (previously, to 2.0 percent) for a two While there are limitations to our estimate of the future impact of the credit administration practices changes described above, absent the effect of any mitigating measures, and based on an analysis of borrower behavior under our current credit administration practices, which may not be indicative of how borrowers will behave under revised credit administration practices, we expect that the credit administration practices changes described above will accelerate defaults and could increase life of loan defaults in our Private Education Loan portfolio by approximately 4 percent to 14 percent. Among the measures that we are planning to implement and expect may partly offset or moderate any acceleration of or increase in defaults will be greater focus on the risk assessment process to ensure borrowers are mapped to the appropriate program, better utilization of existing programs (e.g., GRP and rate modifications), and the introduction of a new program offering short-term payment reductions (permitting interest-only payments for up to six months) for certain early stage delinquencies. |
Allowance for Loan Losses
Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Allowance for Loan Losses Our provision for credit losses represents the periodic expense of maintaining an allowance sufficient to absorb lifetime expected credit losses in the held-for-investment loan portfolios. The evaluation of the allowance for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. We believe the allowance for loan losses is appropriate to cover lifetime expected losses incurred in the loan portfolios. See Note 1, “Significant Accounting Policies — Allowance for Credit Losses — Allowance for Private Education Loan Losses, — Allowance for Personal Loans, — Allowance for FFELP Loan Losses, and — Allowance for Credit Card Loans” in this Form 10-Q for additional details. Allowance for Loan Losses Metrics Allowance for Loan Losses Three Months Ended March 31, 2020 FFELP Private Education Personal Credit Cards Total Allowance for Loan Losses Beginning balance $ 1,633 $ 374,300 $ 65,877 $ 102 $ 441,912 Day 1 adjustment for the adoption of CECL 2,852 1,060,830 79,183 188 1,143,053 Transfer from unfunded commitment liability — 142,075 — — 142,075 Provisions: Provision for current period 37 143,862 25,318 291 169,508 Loan sale reduction to provision — (161,793) — — (161,793) Total provision (1) 37 (17,931) 25,318 291 7,715 Net charge-offs: Charge-offs (226) (51,469) (19,247) (7) (70,949) Recoveries — 7,976 1,542 — 9,518 Net charge-offs (226) (43,493) (17,705) (7) (61,431) Ending Balance $ 4,296 $ 1,515,781 $ 152,673 $ 574 $ 1,673,324 Allowance: Ending balance: individually evaluated for impairment $ — $ 150,822 $ — $ — $ 150,822 Ending balance: collectively evaluated for impairment $ 4,296 $ 1,364,959 $ 152,673 $ 574 $ 1,522,502 Loans: Ending balance: individually evaluated for impairment $ — $ 1,518,763 $ — $ — $ 1,518,763 Ending balance: collectively evaluated for impairment $ 766,954 $ 20,107,984 $ 899,704 $ 7,234 $ 21,781,876 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.15 % 1.05 % 7.27 % 0.52 % Allowance as a percentage of the ending total loan balance 0.56 % 7.01 % 16.97 % 7.93 % Allowance as a percentage of the ending loans in repayment (2) 0.74 % 10.11 % 16.97 % 7.93 % Allowance coverage of net charge-offs (annualized) 4.75 8.71 2.16 20.50 Ending total loans, gross $ 766,954 $ 21,626,747 $ 899,704 $ 7,234 Average loans in repayment (2) $ 600,534 $ 16,521,356 $ 973,772 $ 5,364 Ending loans in repayment (2) $ 581,997 $ 14,988,345 $ 899,704 $ 7,234 ____________ (1) Below is a reconciliation of the provision for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for loan losses. Consolidated Statements of Income Three Months Ended March 31, 2020 Provisions for credit losses for new loan commitments made during the quarter $ 53,543 Total provision for allowance for loan losses 7,715 Provisions for credit losses reported in consolidated statements of income $ 61,258 (2) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Allowance for Loan Losses Three Months Ended March 31, 2019 FFELP Private Education Personal Total Allowance for Loan Losses Beginning balance $ 977 $ 277,943 $ 62,201 $ 341,121 Total provision 1,017 41,883 22,760 65,660 Net charge-offs: Charge-offs (234) (39,577) (15,251) (55,062) Recoveries — 5,697 909 6,606 Net charge-offs (234) (33,880) (14,342) (48,456) Ending Balance $ 1,760 $ 285,946 $ 70,619 $ 358,325 Allowance: Ending balance: individually evaluated for impairment $ — $ 132,442 $ — $ 132,442 Ending balance: collectively evaluated for impairment $ 1,760 $ 153,504 $ 70,619 $ 225,883 Loans: Ending balance: individually evaluated for impairment $ — $ 1,327,668 $ — $ 1,327,668 Ending balance: collectively evaluated for impairment $ 828,640 $ 20,463,954 $ 1,162,874 $ 22,455,468 Net charge-offs as a percentage of average loans in repayment (annualized) (1) 0.14 % 0.89 % 4.88 % Allowance as a percentage of the ending total loan balance 0.21 % 1.31 % 6.07 % Allowance as a percentage of the ending loans in repayment (1) 0.27 % 1.87 % 6.07 % Allowance coverage of net charge-offs (annualized) 1.88 2.11 1.23 Ending total loans, gross $ 828,640 $ 21,791,622 $ 1,162,874 Average loans in repayment (1) $ 650,196 $ 15,165,072 $ 1,175,356 Ending loans in repayment (1) $ 641,658 $ 15,310,560 $ 1,162,874 ____________ (1) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Troubled Debt Restructurings (“TDRs”) All of our loans are collectively assessed for impairment, except for loans classified as TDRs (where we conduct individual assessments of impairment). We adjust the terms of loans for certain borrowers when we believe such changes will help our customers manage their student loan obligations, achieve better student outcomes, and increase the collectability of the loan. These changes generally take the form of a temporary forbearance of payments, a temporary interest rate reduction, a temporary interest rate reduction with a permanent extension of the loan term, and/or a short-term extended repayment alternative. When we give a borrower facing financial difficulty an interest rate reduction, we temporarily reduce the contractual interest rate on a loan to 4.0 percent (previously, to 2.0 percent) for a two Once a loan qualifies for TDR status, it remains a TDR for allowance purposes for the remainder of its life. As of March 31, 2020 and December 31, 2019, approximately 48 percent and 50 percent, respectively, of TDRs were classified as such due to their forbearance status. For additional information, see Note 2, “Significant Accounting Policies —Allowance for Credit Losses — TDRs,” and Note 6, “Allowance for Loan Losses” in our 2019 Form 10-K. Within the Private Education Loan portfolio, loans greater than 90 days past due are nonperforming. FFELP Loans are at least 97 percent guaranteed as to their principal and accrued interest by the federal government in the event of default and, therefore, we do not deem FFELP Loans as nonperforming from a credit risk perspective at any point in their life cycle prior to claim payment and continue to accrue interest on those loans through the date of claim. At March 31, 2020 and December 31, 2019, all of our TDR loans had a related allowance recorded. The following table provides the recorded investment, unpaid principal balance and related allowance for our TDR loans. Recorded Investment Unpaid Principal Balance Allowance March 31, 2020 TDR Loans $ 1,550,600 $ 1,518,763 $ 150,822 December 31, 2019 TDR Loans $ 1,612,896 $ 1,581,966 $ 186,697 The following table provides the average recorded investment and interest income recognized for our TDR loans. Three Months Ended 2020 2019 Average Interest Average Interest TDR Loans $ 1,615,764 $ 26,488 $ 1,312,729 $ 21,566 The following table provides information regarding the loan status and aging of TDR loans. March 31, December 31, 2020 2019 Balance % Balance % TDR loans in in-school/grace/deferment (1) $ 83,964 $ 87,749 TDR loans in forbearance (2) 162,048 99,054 TDR loans in repayment (3) and percentage of each status: Loans current 1,113,104 87.5 % 1,230,954 88.2 % Loans delinquent 31-60 days (4) 74,856 5.9 85,555 6.1 Loans delinquent 61-90 days (4) 50,237 3.9 49,626 3.6 Loans delinquent greater than 90 days (4) 34,554 2.7 29,028 2.1 Total TDR loans in repayment 1,272,751 100.0 % 1,395,163 100.0 % Total TDR loans, gross $ 1,518,763 $ 1,581,966 _____ (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. (4) The period of delinquency is based on the number of days scheduled payments are contractually past due. The following table provides the amount of modified loans (which include forbearance and reductions in interest rates) that became TDRs in the periods presented. Additionally, for the periods presented, the table summarizes charge-offs occurring in the TDR portfolio, as well as TDRs for which a payment default occurred in the relevant period presented and within 12 months of the loan first being designated as a TDR. We define payment default as 60 days past due for this disclosure. Three Months Ended Three Months Ended Modified Loans (1) Charge-offs Payment- Modified Loans (1) Charge-offs Payment- TDR Loans $ 132,815 $ 19,375 $ 30,725 $ 111,208 $ 16,005 $ 25,462 _____ (1) Represents the principal balance of loans that have been modified during the period and resulted in a TDR. Private Education Loan Key Credit Quality Indicators FFELP Loans are at least 97 percent guaranteed as to their principal and accrued interest in the event of default; therefore, there are no key credit quality indicators associated with FFELP Loans. For Private Education Loans, the key credit quality indicators are FICO scores, the existence of a cosigner, the loan status, and loan seasoning. The FICO scores are assessed at original approval and periodically refreshed/updated through the loan’s term. The following tables highlights the gross principal balance of our Private Education Loan portfolio, by year of origination, stratified by key credit quality indicators. Private Education Loans Credit Quality Indicators March 31, 2020 Year of Origination 2020 2019 2018 2017 2016 2015 and Prior Total % of Balance Cosigners: With cosigner $ 698,291 $ 4,527,042 $ 3,311,178 $ 2,869,295 $ 2,515,751 $ 5,295,854 $ 19,217,411 89 % Without cosigner 126,138 676,071 489,070 353,832 268,799 495,426 2,409,336 11 Total $ 824,429 $ 5,203,113 $ 3,800,248 $ 3,223,127 $ 2,784,550 $ 5,791,280 $ 21,626,747 100 % FICO at Origination: Less than 670 $ 62,064 $ 363,345 $ 274,016 $ 237,052 $ 197,390 $ 446,246 $ 1,580,113 7 % 670-699 123,512 757,806 555,719 502,930 435,075 955,404 3,330,446 15 700-749 268,388 1,688,114 1,243,712 1,068,091 937,643 1,933,589 7,139,537 33 Greater than or equal to 750 370,465 2,393,848 1,726,801 1,415,054 1,214,442 2,456,041 9,576,651 45 Total $ 824,429 $ 5,203,113 $ 3,800,248 $ 3,223,127 $ 2,784,550 $ 5,791,280 $ 21,626,747 100 % FICO Refreshed: Less than 670 $ 86,212 $ 544,160 $ 442,893 $ 419,466 $ 400,833 $ 1,029,741 $ 2,923,305 14 % 670-699 127,503 735,546 495,808 400,096 324,334 651,732 2,735,019 13 700-749 261,585 1,633,986 1,145,724 952,467 795,350 1,542,487 6,331,599 29 Greater than or equal to 750 349,129 2,289,421 1,715,823 1,451,098 1,264,033 2,567,320 9,636,824 44 Total $ 824,429 $ 5,203,113 $ 3,800,248 $ 3,223,127 $ 2,784,550 $ 5,791,280 $ 21,626,747 100 % Seasoning (2) : 1-12 payments $ 460,330 $ 2,838,628 $ 469,314 $ 529,441 $ 460,742 $ 715,809 $ 5,474,264 25 % 13-24 payments — 255,403 1,979,761 277,499 258,606 580,426 3,351,695 15 25-36 payments — — 169,436 1,494,597 268,357 538,209 2,470,599 11 37-48 payments — — — 117,409 1,194,038 568,792 1,880,239 9 More than 48 payments — — — — 87,201 2,714,272 2,801,473 13 Not yet in repayment 364,099 2,109,082 1,181,737 804,181 515,606 673,772 5,648,477 27 Total $ 824,429 $ 5,203,113 $ 3,800,248 $ 3,223,127 $ 2,784,550 $ 5,791,280 $ 21,626,747 100 % Current period gross charge-offs $ — $ (1,597) $ (5,241) $ (8,136) $ (10,284) $ (26,211) $ (51,469) Current period recoveries — 92 599 1,080 1,505 4,700 7,976 Current period net charge-offs $ — $ (1,505) $ (4,642) $ (7,056) $ (8,779) $ (21,511) $ (43,493) Total accrued interest by origination vintage $ 9,927 $ 181,551 $ 281,619 $ 279,039 $ 217,988 $ 288,627 $ 1,258,751 ______ (1) Balance represents gross Private Education Loans. (2) Represents the higher credit score of the cosigner or the borrower. (3) Represents the FICO score updated as of the first-quarter 2020. (4) Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due. Private Education Loans Credit Quality Indicators December 31, 2019 Year of Origination 2019 2018 2017 2016 2015 2014 and Prior Total % of Balance Cosigners: With cosigner $ 3,475,256 $ 4,303,772 $ 3,575,973 $ 3,112,873 $ 2,579,214 $ 3,662,547 $ 20,709,635 89 % Without cosigner 571,792 584,601 427,512 320,985 241,958 333,108 2,479,956 11 Total $ 4,047,048 $ 4,888,373 $ 4,003,485 $ 3,433,858 $ 2,821,172 $ 3,995,655 $ 23,189,591 100 % FICO at Origination: Less than 670 $ 283,040 $ 343,613 $ 285,747 $ 236,457 $ 203,145 $ 313,587 $ 1,665,589 7 % 670-699 592,376 714,779 617,676 529,575 439,050 676,569 3,570,025 16 700-749 1,319,563 1,601,904 1,325,387 1,155,253 944,135 1,324,506 7,670,748 33 Greater than or equal to 750 1,852,069 2,228,077 1,774,675 1,512,573 1,234,842 1,680,993 10,283,229 44 Total $ 4,047,048 $ 4,888,373 $ 4,003,485 $ 3,433,858 $ 2,821,172 $ 3,995,655 $ 23,189,591 100 % FICO Refreshed: Less than 670 $ 401,979 $ 515,901 $ 475,007 $ 449,568 $ 419,308 $ 717,674 $ 2,979,437 13 % 670-699 582,256 645,422 497,497 397,889 308,607 451,451 2,883,122 13 700-749 1,284,867 1,506,849 1,199,564 994,309 772,205 1,048,808 6,806,602 29 Greater than or equal to 750 1,777,946 2,220,201 1,831,417 1,592,092 1,321,052 1,777,722 10,520,430 45 Total $ 4,047,048 $ 4,888,373 $ 4,003,485 $ 3,433,858 $ 2,821,172 $ 3,995,655 $ 23,189,591 100 % Seasoning (2) : 1-12 payments $ 2,376,404 $ 719,158 $ 705,181 $ 617,174 $ 462,946 $ 470,839 $ 5,351,702 23 % 13-24 payments — 2,588,702 424,953 305,078 285,513 399,905 4,004,151 17 25-36 payments — — 1,862,587 418,048 227,391 394,339 2,902,365 12 37-48 payments — — — 1,457,760 413,508 342,676 2,213,944 10 More than 48 payments — — — — 1,056,229 1,973,795 3,030,024 13 Not yet in repayment 1,670,644 1,580,513 1,010,764 635,798 375,585 414,101 5,687,405 25 Total $ 4,047,048 $ 4,888,373 $ 4,003,485 $ 3,433,858 $ 2,821,172 $ 3,995,655 $ 23,189,591 100 % 2019 gross charge-offs $ (1,697) $ (14,650) $ (29,119) $ (40,576) $ (41,141) $ (81,795) $ (208,978) 2019 recoveries 69 1,016 2,622 4,431 5,175 12,452 25,765 2019 net charge-offs $ (1,628) $ (13,634) $ (26,497) $ (36,145) $ (35,966) $ (69,343) $ (183,213) Total accrued interest by origination vintage $ 116,423 $ 321,568 $ 327,002 $ 261,083 $ 165,764 $ 174,318 $ 1,366,158 ______ (1) Balance represents gross Private Education Loans. (2) Represents the higher credit score of the cosigner or the borrower. (3) Represents the FICO score updated as of the fourth-quarter 2019. (4) Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due. Private Education Loan Delinquencies The following tables provide information regarding the loan status of our Private Education Loans, by year of origination. Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Private Education Loan Delinquencies by Origination Vintage March 31, 2020 2020 2019 2018 2017 2016 2015 and Prior Total Loans in-school/grace/deferment (1) $ 364,100 $ 2,109,092 $ 1,181,737 $ 804,181 $ 515,606 $ 673,761 $ 5,648,477 Loans in forbearance (2) 4,370 51,418 144,691 180,617 186,362 422,467 989,925 Loans in repayment: Loans current 454,436 3,020,099 2,422,162 2,162,435 1,999,047 4,458,032 14,516,211 Loans delinquent 31-60 days (3) 1,524 15,771 27,690 40,349 43,630 125,661 254,625 Loans delinquent 61-90 days (3) — 4,760 15,016 22,286 24,645 69,189 135,896 Loans delinquent greater than 90 days (3) — 1,983 8,952 13,259 15,260 42,159 81,613 Total Private Education Loans in repayment 455,960 3,042,613 2,473,820 2,238,329 2,082,582 4,695,041 14,988,345 Total Private Education Loans, gross 824,430 5,203,123 3,800,248 3,223,127 2,784,550 5,791,269 21,626,747 Private Education Loans deferred origination costs and unamortized premium/(discount) 4,958 20,484 12,515 9,491 7,960 9,859 65,267 Total Private Education Loans 829,388 5,223,607 3,812,763 3,232,618 2,792,510 5,801,128 21,692,014 Private Education Loans allowance for losses (59,208) (369,890) (275,259) (234,085) (195,324) (382,015) (1,515,781) Private Education Loans, net $ 770,180 $ 4,853,717 $ 3,537,504 $ 2,998,533 $ 2,597,186 $ 5,419,113 $ 20,176,233 Percentage of Private Education Loans in repayment 55.3 % 58.5 % 65.1 % 69.4 % 74.8 % 81.1 % 69.3 % Delinquencies as a percentage of Private Education Loans in repayment 0.3 % 0.7 % 2.1 % 3.4 % 4.0 % 5.0 % 3.2 % Loans in forbearance as a percentage of loans in repayment and forbearance 0.9 % 1.7 % 5.5 % 7.5 % 8.2 % 8.3 % 6.2 % _______ (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. Private Education Loan Delinquencies by Origination Vintage December 31, 2019 2019 2018 2017 2016 2015 2014 and Prior Total Loans in-school/grace/deferment (1) $ 1,670,644 $ 1,580,513 $ 1,010,764 $ 635,798 $ 375,585 $ 414,101 $ 5,687,405 Loans in forbearance (2) 21,009 108,509 142,341 146,114 127,799 168,744 714,516 Loans in repayment: Loans current 2,340,221 3,159,878 2,781,132 2,566,815 2,225,721 3,241,884 16,315,651 Loans delinquent 31-60 days (3) 11,152 26,096 44,382 51,656 54,559 100,206 288,051 Loans delinquent 61-90 days (3) 3,087 9,527 17,048 21,161 24,562 45,917 121,302 Loans delinquent greater than 90 days (3) 935 3,850 7,818 12,314 12,946 24,803 62,666 Total Private Education Loans in repayment 2,355,395 3,199,351 2,850,380 2,651,946 2,317,788 3,412,810 16,787,670 Total Private Education Loans, gross 4,047,048 4,888,373 4,003,485 3,433,858 2,821,172 3,995,655 23,189,591 Private Education Loans deferred origination costs and unamortized premium/(discount) 23,661 17,699 13,843 12,304 8,564 5,153 81,224 Total Private Education Loans 4,070,709 4,906,072 4,017,328 3,446,162 2,829,736 4,000,808 23,270,815 Private Education Loans allowance for losses (3,013) (19,105) (44,858) (71,598) (80,974) (154,752) (374,300) Private Education Loans, net $ 4,067,696 $ 4,886,967 $ 3,972,470 $ 3,374,564 $ 2,748,762 $ 3,846,056 $ 22,896,515 Percentage of Private Education Loans in repayment 58.2 % 65.4 % 71.2 % 77.2 % 82.2 % 85.4 % 72.4 % Delinquencies as a percentage of Private Education Loans in repayment 0.6 % 1.2 % 2.4 % 3.2 % 4.0 % 5.0 % 2.8 % Loans in forbearance as a percentage of loans in repayment and forbearance 0.9 % 3.3 % 4.8 % 5.2 % 5.2 % 4.7 % 4.1 % ______ (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. (3) The period of delinquency is based on the number of days scheduled payments are contractually past due. Personal Loan Key Credit Quality Indicators For Personal Loans, the key credit quality indicators are FICO scores, loan seasoning, and loan delinquency status. The FICO scores are assessed at original approval and periodically refreshed/updated through the loan’s term. The following tables highlights the gross principal balance of our Personal Loan portfolio, by year of origination, stratified by key credit quality indicators. Personal Loans Credit Quality Indicators March 31, 2020 Year of Origination 2020 (1) 2019 (1) 2018 (1) 2017 (1) 2016 (1) Total (1) % of FICO at Origination: Less than 670 $ — $ 7,501 $ 26,745 $ 5,072 $ — $ 39,318 4 % 670-699 — 70,479 128,797 21,295 47 220,618 25 700-749 40 195,857 215,424 37,261 456 449,038 50 Greater than or equal to 750 — 91,012 84,726 14,708 284 190,730 21 Total $ 40 $ 364,849 $ 455,692 $ 78,336 $ 787 $ 899,704 100 % Seasoning (2) : 1-12 payments $ 40 $ 331,474 $ 400 $ — $ — $ 331,914 37 % 13-24 payments — 33,375 393,608 6 — 426,989 48 25-36 payments — — 61,684 76,924 — 138,608 15 37-48 payments — — — 1,406 787 2,193 — More than 48 payments — — — — — — — Not yet in repayment — — — — — — — Total $ 40 $ 364,849 $ 455,692 $ 78,336 $ 787 $ 899,704 100 % Current period gross charge-offs $ — $ (2,885) $ (13,758) $ (2,563) $ (41) $ (19,247) Current period recoveries — 15 1,127 389 11 1,542 Current period net charge-offs $ — $ (2,870) $ (12,631) $ (2,174) $ (30) $ (17,705) Total accrued interest by origination vintage $ — $ 3,161 $ 3,443 $ 414 $ 3 $ 7,021 ______ (1) Balance represents gross Personal Loans. (2) Number of months in active repayment for which a scheduled payment was due. Personal Loans Credit Quality Indicators December 31, 2019 Year of Origination 2019 (1) 2018 (1) 2017 (1) 2016 (1) Total (1) % of Balance FICO at Origination: Less than 670 $ 8,315 $ 32,021 $ 7,030 $ 1 $ 47,367 4 % 670-699 77,746 152,909 28,384 59 259,098 25 700-749 217,642 255,374 48,254 586 521,856 50 Greater than or equal to 750 101,073 100,480 18,795 338 220,686 21 Total $ 404,776 $ 540,784 $ 102,463 $ 984 $ 1,049,007 100 % Seasoning (2) : 1-12 payments $ 404,776 $ 65,164 $ — $ — $ 469,940 45 % 13-24 payments — 475,620 29,698 — 505,318 48 25-36 payments — — 72,765 984 73,749 7 37-48 payments — — — — — — More than 48 payments — — — — — — Not yet in repayment — — — — — — Total $ 404,776 $ 540,784 $ 102,463 $ 984 $ 1,049,007 100 % 2019 gross charge-offs $ (2,350) $ (58,134) $ (13,693) $ (136) $ (74,313) 2019 recoveries 48 3,397 1,722 39 5,206 2019 net charge-offs $ (2,302) $ (54,737) $ (11,971) $ (97) $ (69,107) Total accrued interest by origination vintage $ 3,431 $ 4,166 $ 572 $ 5 $ 8,174 ______ (1) Balance represents gross Personal Loans. (2) Number of months in active repayment for which a scheduled payment was due. Personal Loan Delinquencies The following tables provides information regarding the loan status of our Personal Loans, by vintage. Personal Loan Delinquencies by Origination Vintage March 31, 2020 2020 2019 2018 2017 2016 Total % of Balance Loans in Forbearance $ — $ 12,380 $ 7,137 $ — $ — $ 19,517 Loans in repayment: Loans current 40 346,123 433,664 76,188 787 856,802 97.4 % Loans delinquent 31-60 days (1) — 3,321 7,448 810 — 11,579 1.3 Loans delinquent 61-90 days (1) — 991 2,663 701 — 4,355 0.5 Loans delinquent greater than 90 days (1) — 2,034 4,781 636 — 7,451 0.8 Total Personal Loans in repayment 40 352,469 448,556 78,335 787 880,187 100.0 % Total Personal Loans, gross 40 364,849 455,693 78,335 787 899,704 Personal Loans deferred origination costs and unamortized premium/(discount) — 335 78 — — 413 Total Personal Loans 40 365,184 455,771 78,335 787 900,117 Personal Loans allowance for loan losses (6) (51,280) (89,194) (12,110) (83) (152,673) Personal Loans, net $ 34 $ 313,904 $ 366,577 $ 66,225 $ 704 $ 747,444 Delinquencies as a percentage of Personal Loans in repayment — % 1.8 % 3.3 % 2.7 % — % 2.6 % _______ (1) The period of delinquency is based on the number of days scheduled payments are contractually past due. Personal Loan Delinquencies by Origination Vintage December 31, 2019 2019 2018 2017 2016 Total % of Balance Loans in Forbearance $ — $ — $ — $ — $ — Loans in repayment: Loans current 400,216 522,778 99,581 942 1,023,517 97.6 % Loans delinquent 31-60 days (1) 2,164 6,213 1,045 13 9,435 0.9 Loans delinquent 61-90 days (1) 1,074 5,148 943 7 7,172 0.7 Loans delinquent greater than 90 days (1) 1,322 6,645 895 21 8,883 0.8 Total Personal Loans in repayment 404,776 540,784 102,464 983 1,049,007 100.0 % Total Personal Loans, gross 404,776 540,784 102,464 983 1,049,007 Personal Loans deferred origination costs and unamortized premium/(discount) 380 133 — — 513 Total Personal Loans 405,156 540,917 102,464 983 1,049,520 Personal Loans allowance for loan losses (21,589) (37,492) (6,722) (74) (65,877) Personal Loans, net $ 383,567 $ 503,425 $ 95,742 $ 909 $ 983,643 Delinquencies as a percentage of Personal Loans in repayment 1.1 % 3.3 % 2.8 % 4.2 % 2.4 % _______ (1) The period of delinquency is based on the number of days scheduled payments are contractually past due. Accrued Interest Receivable The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans greater than 90 days past due as compared to our allowance for uncollectible interest on loans making full interest payments. The majority of the total accrued interest receivable represents accrued interest on deferred loans where no payments are due while the borrower is in school and fixed-pay loans where the borrower makes a $25 monthly payment that is smaller than the interest accruing on the loan in that month. The accrued interest on these loans will be capitalized to the balance of the loans when the borrower exits the grace period after separation from school. The allowance for this portion of interest is included in our loan loss reserve. The allowance for uncollectible interest exceeds the amount of accrued interest on our 90 days past due Private Education Loan portfolio for all periods presented. Private Education Loans Accrued Interest Receivable Total Interest Receivable Greater Than 90 Days Past Due Allowance for Uncollectible Interest March 31, 2020 $ 1,258,751 $ 3,127 $ 3,479 December 31, 2019 $ 1,366,158 $ 2,390 $ 5,309 |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Deposits | Deposits The following table summarizes total deposits at March 31, 2020 and December 31, 2019. March 31, December 31, 2020 2019 Deposits - interest bearing $ 24,443,963 $ 24,282,906 Deposits - non-interest bearing 1,651 1,077 Total deposits $ 24,445,614 $ 24,283,983 Our total deposits of $24.4 billion were comprised of $13.7 billion in brokered deposits and $10.7 billion in retail and other deposits at March 31, 2020, compared to total deposits of $24.3 billion, which were comprised of $13.8 billion in brokered deposits and $10.5 billion in retail and other deposits, at December 31, 2019. Interest bearing deposits as of March 31, 2020 and December 31, 2019 consisted of retail and brokered non-maturity savings deposits, retail and brokered non-maturity money market deposits (“MMDAs”) and retail and brokered certificates of deposit (“CDs”). Interest bearing deposits include deposits from Educational 529 and Health Savings plans that diversify our funding sources and additional deposits we consider to be core. These and other large omnibus accounts, aggregating the deposits of many individual depositors, represented $6.8 billion of our deposit total as of March 31, 2020 and December 31, 2019. Some of our deposit products are serviced by third-party providers. Placement fees associated with the brokered CDs are amortized into interest expense using the effective interest rate method. We recognized placement fee expense of $5 million and $4 million in the three months ended March 31, 2020 and 2019, respectively. Fees paid to third-party brokers related to brokered CDs were $2 million and $1 million for the three months ended March 31, 2020 and 2019, respectively. Interest bearing deposits at March 31, 2020 and December 31, 2019 are summarized as follows: March 31, 2020 December 31, 2019 Amount Qtr.-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 9,561,715 1.74 % $ 9,616,547 2.04 % Savings 752,357 1.44 718,616 1.71 Certificates of deposit 14,129,891 1.95 13,947,743 2.44 Deposits - interest bearing $ 24,443,963 $ 24,282,906 ____________ (1) Includes the effect of interest rate swaps in effective hedge relationships. |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | Borrowings Outstanding borrowings consist of unsecured debt and secured borrowings issued through our term asset-backed securitization (“ABS”) program and our Private Education Loan multi-lender secured borrowing facility (the “Secured Borrowing Facility,” which was previously called the asset-backed commercial paper facility or ABCP Facility). The following table summarizes our borrowings at March 31, 2020 and December 31, 2019. March 31, 2020 December 31, 2019 Short-Term Long-Term Total Short-Term Long-Term Total Unsecured borrowings: Unsecured debt (fixed-rate) $ — $ 198,362 $ 198,362 $ — $ 198,159 $ 198,159 Total unsecured borrowings — 198,362 198,362 — 198,159 198,159 Secured borrowings: Private Education Loan term securitizations: Fixed-rate — 2,912,346 2,912,346 — 2,629,902 2,629,902 Variable-rate — 1,597,328 1,597,328 — 1,525,976 1,525,976 Total Private Education Loan term securitizations — 4,509,674 4,509,674 — 4,155,878 4,155,878 Secured Borrowing Facility — — — 289,230 — 289,230 Total secured borrowings — 4,509,674 4,509,674 289,230 4,155,878 4,445,108 Total $ — $ 4,708,036 $ 4,708,036 $ 289,230 $ 4,354,037 $ 4,643,267 Short-term Borrowings Secured Borrowing Facility On February 19, 2020, we amended our Secured Borrowing Facility to, among other things, increase the amount that can be borrowed under the facility to $2 billion (from $750 million) and extend the maturity of the facility. We hold 100 percent of the residual interest in the Secured Borrowing Facility trust. Under the amended Secured Borrowing Facility, we incur financing costs on unused borrowing capacity and on outstandings. The amended Secured Borrowing Facility extended the revolving period, during which we may borrow, repay and reborrow funds, until February 17, 2021. The scheduled amortization period, during which amounts outstanding under the Secured Borrowing Facility must be repaid, ends on February 17, 2022 (or earlier, if certain material adverse events occur). At March 31, 2020, there were no borrowings outstanding under the Secured Borrowing Facility and at December 31, 2019, there were $289 million borrowings outstanding under the Secured Borrowing Facility. Long-term Borrowings Secured Financings 2020 Transactions On February 12, 2020, we executed our $636 million SMB Private Education Loan Trust 2020-A term ABS transaction, which was accounted for as a secured financing. We sold $636 million of notes to third parties and retained a 100 percent interest in the residual certificates issued in the securitization, raising approximately $634 million of gross proceeds. The Class A and Class B notes had a weighted average life of 4.18 years and priced at a weighted average LIBOR equivalent cost of 1- month LIBOR plus 0.88 percent. At March 31, 2020, $665 million of our Private Education Loans, including $622 million of principal and $43 million in capitalized interest, were encumbered because of this transaction. Secured Financings at Issuance The following summarizes our secured financings issued in 2019 and through March 31, 2020: Issue Date Issued Total Issued Weighted Average Cost of Funds (1) Weighted Average Life Private Education: 2019-A March 2019 $ 453,000 1-month LIBOR plus 0.92% 4.26 2019-B June 2019 657,000 1-month LIBOR plus 1.01% 4.41 Total notes issued in 2019 $ 1,110,000 Total loan and accrued interest amount securitized at inception in 2019 $ 1,208,963 2020-A February 2020 $ 636,000 1-month LIBOR plus 0.88% 4.18 Total notes issued in 2020 $ 636,000 Total loan and accrued interest amount securitized at inception in 2020 $ 676,089 ____________ (1) Represents LIBOR equivalent cost of funds for floating and fixed-rate bonds, excluding issuance costs. Consolidated Funding Vehicles We consolidate our financing entities that are VIEs as a result of our being the entities’ primary beneficiary. As a result, these financing VIEs are accounted for as secured borrowings. We consolidate the following financing VIEs as of March 31, 2020 and December 31, 2019, respectively: March 31, 2020 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets (1) Total Secured borrowings: Private Education Loan term securitizations $ — $ 4,509,674 $ 4,509,674 $ 5,594,488 $ 172,546 $ 370,795 $ 6,137,829 Secured Borrowing Facility — — — — 9,316 1,835 11,151 Total $ — $ 4,509,674 $ 4,509,674 $ 5,594,488 $ 181,862 $ 372,630 $ 6,148,980 ____ (1) Other assets primarily represent accrued interest receivable. December 31, 2019 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets (1) Total Secured borrowings: Private Education Loan term securitizations $ — $ 4,155,878 $ 4,155,878 $ 5,246,986 $ 145,760 $ 333,173 $ 5,725,919 Secured Borrowing Facility 289,230 — 289,230 339,666 8,803 23,832 372,301 Total $ 289,230 $ 4,155,878 $ 4,445,108 $ 5,586,652 $ 154,563 $ 357,005 $ 6,098,220 ____ (1) Other assets primarily represent accrued interest receivable. Other Borrowing Sources We maintain discretionary uncommitted Federal Funds lines of credit with various correspondent banks, which totaled $125 million at March 31, 2020. The interest rate we are charged on these lines of credit is priced at Fed Funds plus a spread at the time of borrowing and is payable daily. We did not utilize these lines of credit in the three months ended March 31, 2020 or in the year ended December 31, 2019. We established an account at the FRB to meet eligibility requirements for access to the Primary Credit borrowing facility at the FRB’s Discount Window (the “Window”). The Primary Credit borrowing facility is a lending program available to depository institutions that are in generally sound financial condition. All borrowings at the Window must be fully collateralized. We can pledge asset-backed and mortgage-backed securities, as well as FFELP Loans and Private Education Loans, to the FRB as collateral for borrowings at the Window. Generally, collateral value is assigned based on the estimated fair value of the pledged assets. At March 31, 2020 and December 31, 2019, the value of our pledged collateral at the FRB totaled $2.4 billion and $3.2 billion, respectively. The interest rate charged to us is the discount rate set by the FRB. We did not utilize this facility in the three months ended March 31, 2020 or in the year ended December 31, 2019. |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments Risk Management Strategy We maintain an overall interest rate risk management strategy that incorporates the use of derivative instruments to reduce the economic effect of interest rate changes. Our goal is to manage interest rate sensitivity by modifying the repricing frequency and underlying index characteristics of certain balance sheet assets or liabilities so any adverse impacts related to movements in interest rates are managed within low to moderate limits. As a result of interest rate fluctuations, hedged balance sheet positions will appreciate or depreciate in market value or create variability in cash flows. Income or loss on the derivative instruments linked to the hedged item will generally offset the effect of this unrealized appreciation or depreciation or volatility in cash flows for the period the item is being hedged. We view this strategy as a prudent management of interest rate risk. Please refer to Note 10, “Derivative Financial Instruments” in our 2019 Form 10-K for a full discussion of our risk management strategy. Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 (the “Dodd-Frank Act”) requires all standardized derivatives, including most interest rate swaps, to be submitted for clearing to central counterparties to reduce counterparty risk. Two of the central counterparties we use are the Chicago Mercantile Exchange (“CME”) and the London Clearing House (“LCH”). All variation margin payments on derivatives cleared through the CME and LCH are accounted for as legal settlement. As of March 31, 2020, $9.3 billion notional of our derivative contracts were cleared on the CME and $0.5 billion were cleared on the LCH. The derivative contracts cleared through the CME and LCH represent 95.2 percent and 4.8 percent respectively, of our total notional derivative contracts of $9.8 billion at March 31, 2020. For derivatives cleared through the CME and LCH, the net gain (loss) position includes the variation margin amounts as settlement of the derivative and not collateral against the fair value of the derivative. The amount of variation margin included as settlement as of March 31, 2020 was $(268) million and $24 million for the CME and LCH, respectively. Changes in fair value for derivatives not designated as hedging instruments will be presented as realized gains (losses). Our exposure is limited to the value of the derivative contracts in a gain position less any collateral held and plus any collateral posted. When there is a net negative exposure, we consider our exposure to the counterparty to be zero. At March 31, 2020 and December 31, 2019, we had a net positive exposure (derivative gain positions to us, less collateral held by us and plus collateral posted with counterparties) related to derivatives of $96 million and $52 million, respectively. Summary of Derivative Financial Statement Impact The following tables summarize the fair values and notional amounts of all derivative instruments at March 31, 2020 and December 31, 2019, and their impact on earnings and other comprehensive income for the three months ended March 31, 2020 and 2019. Please refer to Note 10, “Derivative Financial Instruments” in our 2019 Form 10-K for a full discussion of cash flow hedges, fair value hedges, and trading activities. Impact of Derivatives on the Consolidated Balance Sheets Cash Flow Hedges Fair Value Hedges Trading Total March 31, December March 31, December March 31, December March 31, December 2020 2019 2020 2019 2020 2019 2020 2019 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ — $ 715 $ 2,902 $ — $ 751 $ — $ 3,653 $ 715 Derivative Liabilities: (2) Interest rate swaps Interest rate (275) — — (896) — (268) (275) (1,164) Total net derivatives $ (275) $ 715 $ 2,902 $ (896) $ 751 $ (268) $ 3,378 $ (449) ___________ (1) Fair values reported include variation margin as legal settlement of the derivative contract. Assets and liabilities are presented without consideration of master netting agreements. Derivatives are carried on the balance sheet based on net position by counterparty under master netting agreements and classified in other assets or other liabilities depending on whether in a net positive or negative position. (2) The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities March 31, December 31, March 31, December 31, 2020 2019 2020 2019 Gross position (1) $ 3,653 $ 715 $ (275) $ (1,164) Impact of master netting agreement (222) (519) 222 519 Derivative values with impact of master netting agreements (as carried on balance sheet) 3,431 196 (53) (645) Cash collateral pledged (2) 92,969 52,564 — — Net position $ 96,400 $ 52,760 $ (53) $ (645) __________ (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. (2) Cash collateral pledged excludes amounts that represent legal settlement of the derivative contracts. Cash Flow Fair Value Trading Total March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, 2020 2019 2020 2019 2020 2019 2020 2019 Notional Values Interest rate swaps $ 1,117,945 $ 1,150,518 $ 5,193,323 $ 5,031,429 $ 3,452,241 $ 3,744,917 $ 9,763,509 $ 9,926,864 As of March 31, 2020 and December 31, 2019, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges: Line Item in the Balance Sheet in Which the Hedged Item is Included: Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) March 31, December 31, March 31, December 31, 2020 2019 2020 2019 Deposits $ (5,391,335) $ (5,085,426) $ (206,396) $ (63,148) Impact of Derivatives on the Consolidated Statements of Income Three Months Ended 2020 2019 Fair Value Hedges Interest rate swaps: Interest recognized on derivatives $ 4,623 $ (3,827) Hedged items recorded in interest expense (143,248) (23,986) Derivatives recorded in interest expense 144,183 23,888 Total $ 5,558 $ (3,925) Cash Flow Hedges Interest rate swaps: Amount of gain (loss) reclassified from accumulated other comprehensive income into interest expense $ (1,528) $ 1,296 Total $ (1,528) $ 1,296 Trading Interest rate swaps: Change in fair value of future interest payments recorded in earnings $ 42,312 $ 4,202 Total 42,312 4,202 Total $ 46,342 $ 1,573 Impact of Derivatives on the Statements of Changes in Stockholders’ Equity Three Months Ended March 31, 2020 2019 Amount of loss recognized in other comprehensive income (loss) $ (47,222) $ (12,821) Less: amount of gain (loss) reclassified in interest expense (1,528) 1,296 Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit $ (45,694) $ (14,117) Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on our variable-rate deposits. During the next 12 months, we estimate that $18 million will be reclassified as an increase to interest expense. Cash Collateral As of March 31, 2020, cash collateral held and pledged excludes amounts that represent legal settlement of the derivative contracts held with the CME and LCH. There was no cash collateral held related to derivative exposure between us and our derivatives counterparties at March 31, 2020 and December 31, 2019, respectively. Cash collateral pledged related to derivative exposure between us and our derivatives counterparties was $93 million and $53 million at March 31, 2020 and December 31, 2019, respectively. Collateral pledged is recorded in “Other interest-earning assets” on the consolidated balance sheets. |
Stockholders' Equity
Stockholders' Equity | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Stockholders' Equity | Stockholders’ Equity The following table summarizes our common share repurchases and issuances. Three Months Ended (Shares and per share amounts in actuals) 2020 2019 Common stock repurchased under repurchase program (1)(2) 47,736,847 5,435,476 Average purchase price per share (3) $ 9.66 $ 11.04 Shares repurchased related to employee stock-based compensation plans (4) 1,105,119 1,289,391 Average purchase price per share $ 10.98 $ 10.95 Common shares issued (5) 2,837,562 3,470,664 __________________ (1) Common shares purchased under our share repurchase programs. $75 million of capacity under the 2020 Share Repurchase Program remained available as of March 31, 2020. (2) For the three months ended March 31, 2020, the amount includes 44.9 million shares related to the initial delivery of shares under our accelerated share repurchase agreement, described below. (3) Average purchase price per share includes purchase commission costs. (4) Comprised of shares withheld from stock option exercises and vesting of restricted stock for employees’ tax withholding obligations and shares tendered by employees to satisfy option exercise costs. (5) Common shares issued under our various compensation and benefit plans. The closing price of our common stock on March 31, 2020 was $7.19. Dividend and Share Repurchases In both March 2020 and 2019, we paid a common stock dividend of $0.03 per common share. |
Earnings per Common Share
Earnings per Common Share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per Common Share | Earnings per Common Share Basic earnings per common share (“EPS”) are calculated using the weighted average number of shares of common stock outstanding during each period. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows. Three Months Ended March 31, (In thousands, except per share data) 2020 2019 Numerator: Net income $ 362,173 $ 158,189 Preferred stock dividends 3,464 4,468 Net income attributable to SLM Corporation common stock $ 358,709 $ 153,721 Denominator: Weighted average shares used to compute basic EPS 409,786 434,574 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units, performance stock units and Employee Stock Purchase Plan (“ESPP”) (1)(2) 2,969 3,674 Weighted average shares used to compute diluted EPS 412,755 438,248 Basic earnings per common share attributable to SLM Corporation $ 0.88 $ 0.35 Diluted earnings per common share attributable to SLM Corporation $ 0.87 $ 0.35 ________________ (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, performance stock units and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method. (2) |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements We use estimates of fair value in applying various accounting standards for our consolidated financial statements. We categorize our fair value estimates based on a hierarchical framework associated with three levels of price transparency utilized in measuring financial instruments at fair value. For additional information regarding our policies for determining fair value and the hierarchical framework, see Note 2, “Significant Accounting Policies - Fair Value Measurement” in our 2019 Form 10-K. During the three months ended March 31, 2020, there were no significant transfers of financial instruments between levels or changes in our methodology or assumptions used to value our financial instruments. The following table summarizes the valuation of our financial instruments that are marked to fair value on a recurring basis. Fair Value Measurements on a Recurring Basis March 31, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Available-for-sale investments $ — $ 538,742 $ 75,840 $ 614,582 $ — $ 487,669 $ — $ 487,669 Derivative instruments — 3,653 — 3,653 — 715 — 715 Total $ — $ 542,395 $ 75,840 $ 618,235 $ — $ 488,384 $ — $ 488,384 Liabilities Derivative instruments $ — $ (275) $ — $ (275) $ — $ (1,164) $ — $ (1,164) Total $ — $ (275) $ — $ (275) $ — $ (1,164) $ — $ (1,164) The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. March 31, 2020 December 31, 2019 Fair Carrying Difference Fair Carrying Difference Earning assets: Loans held for investment, net: Private Education Loans $ 21,826,300 $ 20,176,233 $ 1,650,067 $ 24,988,941 $ 22,896,515 $ 2,092,426 FFELP Loans 755,449 764,771 (9,322) 795,055 783,816 11,239 Personal Loans 851,750 747,444 104,306 1,047,119 983,643 63,476 Credit Cards 6,959 7,403 (444) 3,818 3,818 — Cash and cash equivalents 7,292,929 7,292,929 — 5,563,877 5,563,877 — Trading investments 11,360 11,360 — — — — Available-for-sale investments 614,582 614,582 — 487,669 487,669 — Accrued interest receivable 1,291,972 1,281,746 10,226 1,491,471 1,392,725 98,746 Tax indemnification receivable 27,727 27,727 — 27,558 27,558 — Derivative instruments 3,653 3,653 — 715 715 — Total earning assets $ 32,682,681 $ 30,927,848 $ 1,754,833 $ 34,406,223 $ 32,140,336 $ 2,265,887 Interest-bearing liabilities: Money-market and savings accounts $ 10,360,970 $ 10,314,072 $ (46,898) $ 10,363,691 $ 10,335,163 $ (28,528) Certificates of deposit 14,202,601 14,129,891 (72,710) 14,065,007 13,947,743 (117,264) Short-term borrowings — — — 289,230 289,230 — Long-term borrowings 4,572,625 4,708,036 135,411 4,434,323 4,354,037 (80,286) Accrued interest payable 93,768 93,768 — 75,158 75,158 — Derivative instruments 275 275 — 1,164 1,164 — Total interest-bearing liabilities $ 29,230,239 $ 29,246,042 $ 15,803 $ 29,228,573 $ 29,002,495 $ (226,078) Excess of net asset fair value over carrying value $ 1,770,636 $ 2,039,809 Please refer to Note 14, “Fair Value Measurements” in our 2019 Form 10-K for a full discussion of the methods and assumptions used to estimate the fair value of each class of financial instruments. |
Regulatory Capital
Regulatory Capital | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Regulatory Capital | Regulatory Capital Sallie Mae Bank (the “Bank”) is subject to various regulatory capital requirements administered by the FDIC and the Utah Department of Financial Institutions (“UDFI”). Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material adverse effect on our business, results of operations and financial condition. Under the FDIC’s regulations implementing the Basel III capital framework (“U.S. Basel III”) and the regulatory framework for prompt corrective action, the Bank must meet specific capital standards that involve quantitative measures of its assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and its classification under the prompt corrective action framework are also subject to qualitative judgments by the regulators about components of capital, risk weightings and other factors. U.S. Basel III is aimed at increasing both the quantity and quality of regulatory capital. Certain aspects of U.S. Basel III, including new deductions from and adjustments to regulatory capital and a capital conservation buffer, have been phased in over several years. The Bank is subject to the following minimum capital ratios under U.S. Basel III: a Common Equity Tier 1 risk-based capital ratio of 4.5 percent, a Tier 1 risk-based capital ratio of 6.0 percent, a Total risk-based capital ratio of 8.0 percent, and a Tier 1 leverage ratio of 4.0 percent. In addition, as of January 1, 2019, the Bank is subject to a fully phased-in Common Equity Tier 1 capital conservation buffer of greater than 2.5 percent. (As of December 31, 2018, the Bank was subject to a Common Equity Tier 1 capital conservation buffer of greater than 1.875 percent.) Failure to maintain the buffer will result in restrictions on the Bank’s ability to make capital distributions, including the payment of dividends, and to pay discretionary bonuses to executive officers. Including the buffer, as of January 1, 2019, the Bank is required to maintain the following minimum capital ratios under U.S. Basel III in order to avoid such restrictions: a Common Equity Tier 1 risk-based capital ratio of greater than 7.0 percent, a Tier 1 risk-based capital ratio of greater than 8.5 percent and a Total risk-based capital ratio of greater than 10.5 percent. To qualify as “well capitalized” under the prompt corrective action framework for insured depository institutions, the Bank must maintain a Common Equity Tier 1 risk-based capital ratio of at least 6.5 percent, a Tier 1 risk-based capital ratio of at least 8.0 percent, a Total risk-based capital ratio of at least 10.0 percent, and a Tier 1 leverage ratio of at least 5.0 percent. On March 27, 2020, the FDIC and other federal banking agencies published an interim final rule that provides those banking organizations adopting CECL during 2020 with the option to delay for two years the estimated impact of CECL on regulatory capital and to phase in the aggregate impact of the deferral on regulatory capital over a subsequent three year period. Under this interim final rule, because we have elected to use the deferral option, the regulatory capital impact of our transition adjustments recorded on January 1, 2020 from the adoption of CECL will be deferred for two years. In addition, 25 percent of the ongoing impact, from January 1, 2020 through the end of the two-year deferral period, of CECL on our allowance for loan losses, retained earnings, and average total consolidated assets, each as reported for regulatory capital purposes, will be added to the deferred transition amounts (“adjusted transition amounts”) and deferred for the two-year period. At the conclusion of the two-year period (January 1, 2022), the adjusted transition amounts will be phased-in for regulatory capital purposes at a rate of 25 percent per year, with the phased-in amounts included in regulatory capital at the beginning of each year. Our January 1, 2020 CECL transition amounts increased the allowance for loan losses by $1.1 billion, increased the liability representing our off-balance sheet exposure for unfunded commitments by $116 million, and increased our deferred tax asset by $306 million, resulting in a cumulative effect adjustment that reduced retained earnings by $953 million. The following capital amounts and ratios are based upon the Bank’s average assets and risk-weighted assets, as indicated. Actual U.S. Basel III Minimum Requirements Plus Buffer (1)(2) Amount Ratio Amount Ratio As of March 31, 2020: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 3,112,763 12.4 % $ 1,757,168 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 3,112,763 12.4 % $ 2,133,704 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,428,154 13.7 % $ 2,635,752 > 10.5 % Tier 1 Capital (to Average Assets) $ 3,112,763 9.4 % $ 1,326,107 > 4.0 % As of December 31, 2019: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 3,264,309 12.2 % $ 1,876,050 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 3,264,309 12.2 % $ 2,278,060 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,600,668 13.4 % $ 2,814,074 > 10.5 % Tier 1 Capital (to Average Assets) $ 3,264,309 10.2 % $ 1,284,642 > 4.0 % ________________ (1) Reflects the U.S. Basel III minimum required ratio plus the applicable capital conservation buffer. (2) The Bank’s regulatory capital ratios also exceeded all applicable standards for the Bank to qualify as “well capitalized” under the prompt corrective action framework. Bank Dividends |
Commitments, Contingencies and
Commitments, Contingencies and Guarantees | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments, Contingencies and Guarantees | Commitments, Contingencies and Guarantees Commitments When we approve a Private Education Loan at the beginning of an academic year, that approval may cover the borrowing for the entire academic year. As such, we do not always disburse the full amount of the loan at the time of such approval, but instead have a commitment to fund a portion of the loan at a later date (usually at the start of the second semester or subsequent trimesters). We estimate expected credit losses over the contractual period in which we are exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by us. At March 31, 2020, we had $450 million of outstanding contractual loan commitments which we expect to fund during the remainder of the 2019/2020 academic year. At March 31, 2020, we had a $30 million reserve recorded in “Other Liabilities” to cover lifetime expected credit losses on these unfunded commitments. See Note 1, “Significant Accounting Policies — Allowance for Credit Losses — Off-Balance Sheet Exposure for Contractual Loan Commitments” for additional information. Regulatory Matters On July 17, 2018, the Mississippi Attorney General filed a lawsuit in Mississippi state court against Navient, Navient Solutions, LLC, and the Bank arising out of the Multi-State Investigation. The complaint alleges unfair and deceptive trade practices against all three defendants as to private loan origination practices from 2000 to 2009, and against the two Navient defendants as to servicing practices between 2010 and the present. The complaint further alleges that Navient assumed responsibility for these matters under the Separation and Distribution Agreement for alleged conduct that pre-dated the Spin-Off. On September 27, 2018, the Mississippi Attorney General filed an amended complaint. On October 8, 2018, the Bank moved to dismiss the Mississippi Attorney General’s action as to the Bank, arguing, among other things, that the complaint failed to allege with sufficient particularity or specificity how the Bank was responsible for any of the alleged conduct, most of which predated the Bank’s existence. On November 20, 2018, the Mississippi Attorney General filed an opposition brief and the Bank filed a reply on December 21, 2018. The court heard oral argument on the Bank’s motion to dismiss on April 11, 2019. On August 15, 2019, the court entered an order denying the Bank’s motion to dismiss. On September 5, 2019, the Bank filed with the Supreme Court of Mississippi a petition for interlocutory appeal. The Mississippi Attorney General filed an opposition to the petition for interlocutory appeal on September 19, 2019. On October 16, 2019, the Supreme Court of Mississippi granted the Bank’s petition for interlocutory appeal and stayed the trial court proceedings. The Mississippi Attorney General has since agreed to dismiss with prejudice all claims against the Bank in the underlying case. On March 31, 2020, the Mississippi Attorney General and the Bank filed a Joint Motion to Dismiss Interlocutory Appeal with the Supreme Court of Mississippi. On April 10, 2020, the Mississippi Attorney General filed with the trial court a Notice of Voluntary Dismissal with Prejudice as to the Bank. For additional information regarding our regulatory matters, see Note 18, “Commitments, Contingencies and Guarantees” in our 2019 Form 10-K. Contingencies In the ordinary course of business, we and our subsidiaries are routinely defendants in or parties to pending and threatened legal actions and proceedings, including actions brought on behalf of various classes of claimants. These actions and proceedings may be based on alleged violations of consumer protection, securities, employment and other laws. In certain of these actions and proceedings, claims for substantial monetary damages may be asserted against us and our subsidiaries. It is common for the Company, our subsidiaries and affiliates to receive information and document requests and investigative demands from state attorneys general, legislative committees, and administrative agencies. These requests may be for informational or regulatory purposes and may relate to our business practices, the industries in which we operate, or other companies with whom we conduct business. Our practice has been and continues to be to cooperate with these bodies and be responsive to any such requests. We are required to establish reserves for litigation and regulatory matters where those matters present loss contingencies that are both probable and estimable. When loss contingencies are not both probable and estimable, we do not establish reserves. Based on current knowledge, management does not believe there are loss contingencies, if any, arising from pending investigations, litigation or regulatory matters for which reserves should be established. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited, consolidated financial statements of SLM Corporation (“Sallie Mae,” “SLM,” the “Company,” “we,” or “us”) have been prepared in accordance with generally accepted accounting principles in the United States of America (“GAAP”) for interim financial information. Accordingly, they do not include all the information and footnotes required by GAAP for complete consolidated financial statements. The consolidated financial statements include the accounts of SLM Corporation and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. In the opinion of management, all adjustments considered necessary for a fair statement of the results for the interim periods have been included. The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and accompanying notes. Actual results could differ from those estimates. Operating results for the three months ended March 31, 2020 are not necessarily indicative of the results for the year ending December 31, 2020 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, 2019 (the “2019 Form 10-K”). |
Consolidation | Consolidation The consolidated financial statements include the accounts of the Company and its majority-owned and controlled subsidiaries after eliminating the effects of intercompany accounts and transactions. |
Allowance for Credit Losses | Allowance for Credit Losses We maintain an allowance for credit losses for the lifetime expected credit losses on loans in our portfolios, as well as for future loan commitments, at the reporting date. In determining the lifetime expected credit losses on our Private Education Loan and Personal Loan portfolios, we use a discounted cash flow model. This method requires us to project future principal and interest cash flows on our loans in those portfolios. To estimate the future expected cash flows, we use a vintage-based model that considers life of loan loss expectations, prepayments (both voluntary and involuntary), defaults, recoveries and any other adjustments deemed necessary, to determine the adequacy of the allowance at each balance sheet date. These cash flows are discounted at the loan’s effective interest rate to calculate the present value of those cash flows. Management adjusts the effective interest rate used to discount expected cash flows to incorporate expected prepayments. The difference between the present value of those cash flows and the amortized cost basis of the underlying loans is the allowance for loan losses. Entities that measure credit losses based on the present value of expected future cash flows are permitted to report the entire change in present value as credit loss expense, but may alternatively report the change in present value due to the passage of time as interest income. We have elected to report the entire change in present value as credit loss expense. In determining the loss rates used for the vintage-based approach, we start with our historical loss rates, stratify the loans within each vintage, and then adjust the loss rates based upon exogenous factors over a reasonable and supportable period. The reasonable and supportable period is meant to represent the period in which we believe we can estimate the impact of forecasted economic variables in our expected losses. At the end of the reasonable and supportable period, we immediately revert our forecast of expected losses to our historical averages. We use a two-year reasonable and supportable period, although this period is subject to change as our view evolves on our ability to reasonably estimate future losses based upon economic forecasts. In estimating our current expected credit losses, we use our historical experience to derive a base case adjusted for any qualitative factors (as described below). We also develop an adverse and favorable economic scenario as well. At each reporting date, we determine the appropriate weighting of these alternate scenarios based upon the current economic conditions and our view of the risks of alternate outcomes. This weighting of expectations is used in calculating our current expected credit losses recorded each period. In estimating recoveries, we use both estimates of what we would receive from the sale of defaulted loans as well as historical borrower payment behavior to estimate the timing and amount of future recoveries on charged-off loans. Our prepayment estimates include the effect of voluntary prepayments and consolidation (if the loans are consolidated to third parties), both of which shorten the lives of loans. Constant Prepayment Rate (“CPR”) estimates also consider the utilization of deferment, forbearance, and extended repayment plans, which lengthen the lives of loans. We regularly evaluate the assumptions used to estimate the CPRs. We use economic forecasts to help in the estimation of future CPRs. As with our loss forecasts, at the end of the two-year reasonable and supportable forecast for CPRs, we immediately revert to our historical long-term CPR rates. In addition to the above modeling approach, we also take certain other qualitative factors into consideration when calculating the allowance for loan losses. These qualitative factors include, but are not limited to, changes in lending policies and procedures, including changes in underwriting standards and collection, charge-off and recovery practices not already included in the analysis, and the effect of other external factors such as legal and regulatory requirements on the level of estimated current expected credit losses. The evaluation of the allowance for loan losses is inherently subjective, as it requires material estimates that may be susceptible to significant changes. If actual future performance in delinquency, charge-offs and recoveries is significantly different than estimated, or management assumptions or practices were to change, this could materially affect the estimate of the allowance for loan losses, the timing of when losses are recognized, and the related provision for credit losses on our consolidated statements of income. |
Allowance For Private Education Loan Losses | Allowance for Private Education Loan Losses We collect on defaulted loans through a mix of in-house collectors, third-party collectors and sales to third-parties. For March 31, 2020 and December 31, 2019, we used both an estimate of recovery rates from in-house collections as well as expectations of future sales of defaulted loans to estimate the timing and amount of future recoveries on charged-off loans. In addition to the key assumptions/estimates above, some estimates are unique to our Private Education Loan portfolio. Estimates are made on our Private Education Loans regarding when each borrower will separate from school. The cash flow timing of when a borrower will begin making full principal and interest payments is dependent upon when the student either graduates or leaves school. These dates can change based upon many factors. We receive information regarding projected graduation dates from a third-party clearinghouse. The separation from school date will be updated quarterly based on updated information received from the school clearinghouse. Additionally, when we have a contractual obligation to fund a loan or a portion of a loan at a later date, we make an estimate regarding the percentage of this obligation that will be funded. This estimate is based on historical experience. For unfunded commitments, we recognize the life of loan allowance as a liability. Once the loan is funded, that liability transfers to the allowance for Private Education Loan losses. Key Credit Quality Indicators - Private Education Loans We determine the collectability of our Private Education Loan portfolio by evaluating certain risk characteristics. We consider credit score at original approval and periodically refreshed/updated credit scores through the loan’s term, existence of a cosigner, loan status and loan seasoning as the key credit quality indicators because they have the most significant effect on the determination of the adequacy of our allowance for loan losses. Credit scores are an indicator of the creditworthiness of borrowers and the higher the credit scores the more likely it is the borrowers will be able to make all of their contractual payments. Loan status affects the credit risk because a past due loan is more likely to result in a credit loss than a current loan. Additionally, loans in the deferred payment status have different credit risk profiles compared with those in current pay status. Loan seasoning affects credit risk because a loan with a history of making payments generally has a lower incidence of default than a loan with a history of making infrequent or no payments. The existence of a cosigner lowers the likelihood of default as well. We monitor and update these credit quality indicators in the analysis of the adequacy of our allowance for loan losses on a quarterly basis. Private Education Loans generally do not require borrowers to begin repayment until at least six months after the borrowers have graduated or otherwise separated from school. Consequently, the loss estimates for these loans is generally low while the borrower is in school and then increases upon the end of the six-month grace period after separation from school. At March 31, 2020 and December 31, 2019, 27 percent and 25 percent, respectively, of the principal balance of the Private Education Loan portfolio was related to borrowers who are in an in-school (fully deferred), grace, or other deferment status and not required to make payments. Our collection policies for Private Education Loans allow for periods of nonpayment for certain borrowers requesting an extended grace period upon leaving school or experiencing temporary difficulty meeting payment obligations. This is referred to as forbearance and is considered in estimating the allowance for loan losses. As part of concluding on the adequacy of the allowance for loan losses for Private Education Loans, we review key allowance and loan metrics. The most relevant of these metrics considered are the allowance as a percentage of ending total loans, delinquency percentages and forbearance percentages. |
Allowance For Personal Education Loan Losses | Troubled Debt Restructurings (“TDRs”) In estimating the expected defaults for our Private Education Loans that are considered TDRs, we follow the same discounted cash flow process described above but use the historical loss rates related to past TDR loans. The appropriate gross loss rates are determined for each individual loan by determining loan maturity, risk characteristics and macroeconomic conditions. The allowance for our TDR portfolio is included in our overall allowance for Private Education Loans. Our TDR portfolio is comprised mostly of loans with interest rate reductions and loans with forbearance usage greater than three months, as further described below. We adjust the terms of loans for certain borrowers when we believe such changes will help our customers manage their student loan obligations, achieve better student outcomes, and increase the collectability of the loans. These changes generally take the form of a temporary forbearance of payments, a temporary interest rate reduction, a temporary interest rate reduction with a permanent extension of the loan term, and/or a short-term extended repayment alternative. When we give a borrower facing financial difficulty an interest rate reduction, we temporarily reduce the rate (currently to 4.0 percent) for a two-year period and, in the vast majority of cases, permanently extend the final maturity of the loan. The combination of these two loan term changes helps reduce the monthly payment due from the borrower and increases the likelihood the borrower will remain current during the interest rate modification period as well as when the loan returns to its original contractual interest rate. We classify a loan as a TDR due to forbearance using a two-step process. The first step is to identify a loan that was in full principal and interest repayment status and received more than three months of forbearance in a 24-month period; however, during the first nine months after a loan had entered full principal and interest repayment status, we do not count up to the first six months of forbearance received during that period against the three-month policy limit. The second step is to evaluate the creditworthiness of the loan by examining its most recent refreshed FICO score. Loans that have met the criteria in the first test and have a FICO score above a certain threshold (based on the most recent quarterly FICO score refresh) will not be classified as TDRs. Loans that have met the criteria in the first test and have a FICO score under the threshold (based on the most recent quarterly FICO score refresh) will be classified as TDRs. A loan also becomes a TDR when it is modified to reduce the interest rate on the loan (regardless of when such modification occurs and/or whether such interest rate reduction is temporary). Once a loan qualifies for TDR status, it remains a TDR for allowance purposes for the remainder of its life. About half our loans that are considered TDRs involve a temporary forbearance of payments and do not change the contractual interest rate of the loan. As of March 31, 2020 and December 31, 2019, approximately 48 percent and 50 percent, respectively, of TDRs were classified as such due to their forbearance status. For additional information, see Note 6, “Allowance for Loan Losses” in our 2019 Form 10-K. Allowance for Personal Loans From late 2016 through mid-2018, we acquired newly-originated Personal Loans from a marketplace lender. In 2018, we began to originate Personal Loans and ceased originating these loans at the end of 2019. We maintain an allowance for Personal Loan losses at an amount sufficient to absorb lifetime expected credit losses using the same discounted cash flow approach described above for Private Education Loans. The difference between the amortized cost basis and the present value of expected cash flows on our Personal Loan portfolio equals the allowance related to this portfolio. At March 31, 2020, and December 31, 2019, we held $747 million and $984 million, respectively, in Personal Loans, net of allowance. At March 31, 2020, there were no Personal Loans classified as TDRs. We collect on defaulted Personal Loans through a mix of in-house collectors, third-party collectors and sales to third-parties. For March 31, 2020 and December 31, 2019, we used both an estimate of recovery rates from in-house collections as well as expectations of future sales of defaulted Personal Loans to estimate the timing and amount of future recoveries on charged-off Personal Loans. Key Credit Quality Indicators - Personal Loan s For Personal Loans, we consider FICO scores at original approval and periodically refreshed/updated credit scores through the loan’s term, loan seasoning, and loan delinquency status to be our key credit quality indicators for the same reasons discussed above under “— Key Credit Quality Indicators — Private Education Loans.” |
Allowance For Credit Card Loans | Allowance for Credit Card Loans We use the gross loss approach when estimating the allowance for loan losses for our Credit Card portfolio. Because our Credit Card portfolio is new and we do not have historical loss experience, we use estimated loss rates reported by other financial institutions to estimate our allowance for loan losses for credit cards, net of expected recoveries. In addition, we use a model that utilizes purchased credit card information with risk characteristics similar to those of our own portfolio as a challenger model. We then consider any qualitative factors that may change our future expectations of losses. |
Allowance For FFELP Loan Losses | Allowance for FFELP Loan Losses FFELP Loans are insured as to their principal and accrued interest in the event of default, subject to a risk-sharing level based on the date of loan disbursement. These insurance obligations are supported by contractual rights against the United States. For loans disbursed on or after July 1, 2006, we receive 97 percent reimbursement on all qualifying default claims. For loans disbursed after October 1, 1993, and before July 1, 2006, we receive 98 percent reimbursement on all qualifying claims. For loans disbursed prior to October 1, 1993, we receive 100 percent reimbursement. Because we bear a maximum of three percent loss exposure due to this federal guarantee, our allowance for loan losses for FFELP loans and related periodic provision expense are small. We use the gross loss approach when estimating the allowance for loan losses for our FFELP Loans. We maintain an allowance for loan losses for our FFELP Loans at a level sufficient to cover lifetime expected credit losses. The allowance for FFELP Loan losses uses historical experience of customer default behavior. We apply the default rate projections, net of applicable risk sharing, to our FFELP Loans for the current period to perform our quantitative calculation. Once the quantitative calculation is performed, we review the adequacy of the allowance for loan losses and determine if qualitative adjustments need to be considered. |
Loan Interest Income | Loan Interest Income For all loans, including impaired loans, classified as held for investment, we recognize interest income as earned, adjusted for the amortization of deferred direct origination and acquisition costs. Deferred fees or costs are required to be recognized as yield adjustments over the life of the related loans and are recognized by the interest method. The objective of the interest method is to arrive at periodic interest income (including recognition of fees and costs) at a constant effective yield on the net investment in the receivable (i.e., the principal amount of the receivable adjusted by unamortized fess or costs, purchase premium or discount and any hedging activity—these unamortized costs will collectively be referred to as “basis adjustments”). The difference between the periodic interest income so determined and the interest income determined by applying the stated interest rate to the outstanding principal amount of the receivable is the amount of periodic amortization. For the amortization of the basis adjustments, we determine the constant effective yield necessary to apply the interest method based upon the payment terms required by the loan contract. Expected prepayments of principal are not included in the determination of the effective interest rate. For fixed-rate loans, when a prepayment occurs the unamortized balance of the amortized cost adjustments is adjusted so that future amortization (based upon the contractual terms of the loan) will result in constant effective yield equal to the original effective interest rate. Prepayments do not result in a change in the effective interest rate of the loan. We determine the contractual payments on a pool basis; as such, when a prepayment occurs, future contractual payments will be determined assuming the pool will make smaller payments through the original term of the contract. The adjustment to the unamortized basis adjustment balance is recorded in interest income. For variable-rate loans, the effective interest rate at the time of origination is the loan’s effective interest rate assuming all future contractual payments. The effective interest rate remains the same for that loan until the loan rate changes. If there is no prepayment and no change in the stated interest rate, the periodic amortization of the basis adjustments is equal to the difference between the effective interest rate multiplied by the book basis and the contractual interest due. We determine the contractual payments on a pool basis; as such, when a prepayment occurs, future contractual payments will be determined assuming the pool will make smaller payments through the original term of the contract. The adjustment to the unamortized basis adjustment balance is recorded in interest income. When the interest rate on a variable-rate loan changes, the effective interest rate is recalculated using the same methodology described in the previous paragraph; however, the future contractual payments are changed to reflect the new interest rate. There is no forecasting of future expected changes in interest rates. The accounting basis used to determine the effective interest rate of the cash flows is equal to the balances of the unpaid principal balance and unamortized basis adjustments at the time of the rate change. We also pay to the U.S. Department of Education (the “DOE”) an annual 105 basis point Consolidation Loan Rebate Fee on FFELP consolidation loans, which is netted against loan interest income. Additionally, interest earned on education loans reflects potential non-payment adjustments in accordance with our uncollectible interest recognition policy. We do not amortize any adjustments to the basis of loans when they are classified as held-for-sale. With the adoption of CECL on January 1, 2020, we continue to analyze the collectability of accrued interest associated with loans not currently in full principal and interest repayment status or in interest only repayment status as discussed above; however, we will change the recognition of the allowance for this portion of uncollectible interest (amounts to be capitalized after separation from school and the expiration of the grace period) to the provision for loan losses from our historical practice of recording it as a reduction of interest income, as well as classifying this allowance as part of our allowance for loan losses as opposed to our historical practice of recording it as a reduction of accrued interest income receivable. The allowance for the portion of uncollectible interest on loans making full interest payments will continue to be recorded as a reduction of interest income. |
Recently Issued and Adopted Accounting Pronouncements | Recently Issued and Adopted Accounting Pronouncements ASU No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments” In June 2016, Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments,” which became effective for us on January 1, 2020 (“CECL”). This ASU eliminated the previous accounting guidance for the recognition of credit impairment. Under the new guidance, for all loans carried at amortized cost, upon loan origination we are required to measure our allowance for loan losses based on our estimate of all current expected credit losses over the remaining contractual term of the assets. Updates to that estimate each period will be recorded through provision expense. The estimate of loan losses must be based on historical experience, current conditions, and reasonable and supportable forecasts. The ASU does not mandate the use of any specific method for estimating credit loss, permitting companies to use judgment in selecting the approach that is most appropriate in their circumstances. In addition, Topic 326 made changes to the accounting for available-for-sale debt securities. One such change is to require an assessment of unrealized losses on available-for-sale debt securities that we have the ability and intent to hold for a period of time sufficient to recover the amortized cost of the security, for the purpose of determining credit impairment. If any credit impairment exists, an allowance for losses must be established for the amount of the unrealized loss that is determined to be credit-related. Adoption of the standard had a material impact on how we record and report our financial condition and results of operations, and on regulatory capital. The following table illustrates the impact of the cumulative effect adjustment made upon adoption of CECL: January 1, 2020 As reported under CECL Pre-CECL Adoption Impact of CECL Adoption Assets: Allowance for loan losses: Private Education Loans $ 1,435,130 $ 374,300 $ 1,060,830 FFELP Loans 4,485 1,633 2,852 Personal Loans 145,060 65,877 79,183 Credit Card 290 102 188 Total $ 1,584,965 $ 441,912 $ 1,143,053 Deferred tax asset $ 415,540 $ 109,369 $ 306,171 Liabilities: Allowance for loan losses: Off-balance sheet exposures $ 118,239 $ 2,481 $ 115,758 Equity: Retained Earnings $ 897,873 $ 1,850,512 $ (952,639) This transition adjustment is inclusive of qualitative adjustments incorporated into our CECL allowance as necessary, to address any limitations in the models used. We also elected to use the relief offered in the interim final rule recently issued by the Federal Deposit Insurance Corporation (the “FDIC”) and other federal banking agencies that provides those banking organizations adopting CECL in 2020 with the option to delay for two years the estimated impact of CECL on regulatory capital and to phase in the aggregate impact of the deferral on regulatory capital over a subsequent three year period. Under this interim final rule, because we have elected the deferred option, the regulatory capital impact of our transition adjustments recorded on January 1, 2020 from the adoption of CECL will be deferred for two years. In addition, 25 percent of the ongoing impact, from January 1, 2020 through the end of the two-year deferral period, of CECL on our allowance for loan losses, retained earnings, and average total consolidated assets, each as reported for regulatory capital purposes, will be added to the deferred transition amounts (“adjusted transition amounts”) and deferred for the two-year period. At the conclusion of the two-year period (January 1, 2022), the adjusted transition amounts will be phased-in for regulatory capital purposes at a rate of 25 percent per year, with the phased-in amounts included in regulatory capital at the beginning of each year. For additional information, see Note 11, “Regulatory Capital.” |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Cumulative Effect of Adoption of CECL | The following table illustrates the impact of the cumulative effect adjustment made upon adoption of CECL: January 1, 2020 As reported under CECL Pre-CECL Adoption Impact of CECL Adoption Assets: Allowance for loan losses: Private Education Loans $ 1,435,130 $ 374,300 $ 1,060,830 FFELP Loans 4,485 1,633 2,852 Personal Loans 145,060 65,877 79,183 Credit Card 290 102 188 Total $ 1,584,965 $ 441,912 $ 1,143,053 Deferred tax asset $ 415,540 $ 109,369 $ 306,171 Liabilities: Allowance for loan losses: Off-balance sheet exposures $ 118,239 $ 2,481 $ 115,758 Equity: Retained Earnings $ 897,873 $ 1,850,512 $ (952,639) |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair value of securities available-for-sale | The amortized cost and fair value of securities available for sale are as follows: March 31, 2020 Amortized Cost Allowance for credit losses (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale: Mortgage-backed securities $ 206,640 $ — $ 6,400 $ — $ 213,040 Utah Housing Corporation bonds 15,931 — 156 (74) 16,013 U.S. government-sponsored enterprises 306,491 — 3,206 (8) 309,689 Other securities 78,805 — — (2,965) 75,840 Total $ 607,867 $ — $ 9,762 $ (3,047) $ 614,582 December 31, 2019 Amortized Cost Allowance for credit losses (1) Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Available-for-sale: Mortgage-backed securities $ 215,888 $ — $ 1,895 $ (658) $ 217,125 Utah Housing Corporation bonds 19,474 — 145 (83) 19,536 U.S. government-sponsored enterprises 250,394 — 635 (21) 251,008 Total $ 485,756 $ — $ 2,675 $ (762) $ 487,669 ___________ |
Available-for-sale securities, continuous unrealized loss position, fair value | The following table summarizes the amount of gross unrealized losses for our available-for-sale securities and the estimated fair value for securities having gross unrealized loss positions, categorized by length of time the securities have been in an unrealized loss position: Less than 12 months 12 months or more Total Gross Estimated Gross Estimated Gross Estimated As of March 31, 2020: Mortgage-backed securities $ — $ — $ — $ — $ — $ — Utah Housing Corporation bonds — — (74) 8,965 (74) 8,965 U.S. government-sponsored enterprises (8) 16,823 — — (8) 16,823 Other securities (2,965) 75,840 — — (2,965) 75,840 Total $ (2,973) $ 92,663 $ (74) $ 8,965 $ (3,047) $ 101,628 As of December 31, 2019: Mortgage-backed securities $ (218) $ 25,624 $ (440) $ 42,448 $ (658) $ 68,072 Utah Housing Corporation bonds — — (83) 11,097 (83) 11,097 U.S. government-sponsored enterprises (21) 14,977 — — (21) 14,977 Total $ (239) $ 40,601 $ (523) $ 53,545 $ (762) $ 94,146 |
Amortized cost and fair value of securities by contractual maturities | As of March 31, 2020, 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. Year of Maturity Amortized Cost Estimated Fair Value 2020 $ 94,048 $ 94,320 2021 145,340 147,711 2022 54,127 54,317 2023 12,977 13,341 2038 175 192 2039 2,457 2,668 2042 7,115 7,172 2043 11,130 11,560 2044 16,149 16,684 2045 16,896 17,286 2046 27,641 28,385 2047 39,927 40,313 2048 10,248 10,664 2049 84,282 87,458 2050 6,550 6,671 2054 78,805 75,840 Total $ 607,867 $ 614,582 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Loans Held for Investment | Loans held for investment are summarized as follows: March 31, December 31, 2020 2019 Private Education Loans: Fixed-rate $ 9,813,075 $ 9,830,301 Variable-rate 11,813,672 13,359,290 Total Private Education Loans, gross 21,626,747 23,189,591 Deferred origination costs and unamortized premium/(discount) 65,267 81,224 Allowance for loan losses (1,515,781) (374,300) Total Private Education Loans, net 20,176,233 22,896,515 FFELP Loans 766,954 783,306 Deferred origination costs and unamortized premium/(discount) 2,113 2,143 Allowance for loan losses (4,296) (1,633) Total FFELP Loans, net 764,771 783,816 Personal Loans (fixed-rate) 899,704 1,049,007 Deferred origination costs and unamortized premium/(discount) 413 513 Allowance for loan losses (152,673) (65,877) Total Personal Loans, net 747,444 983,643 Credit Cards (fixed-rate) 7,234 3,884 Deferred origination costs and unamortized premium/(discount) 743 36 Allowance for loan losses (574) (102) Total Credit Cards, net 7,403 3,818 Loans held for investment, net $ 21,695,851 $ 24,667,792 The average balance and the respective weighted average interest rates of loans in our portfolio are summarized as follows: Three Months Ended March 31, 2020 2019 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 23,502,844 8.86 % $ 21,732,826 9.50 % FFELP Loans 776,326 4.29 837,950 4.94 Personal Loans 973,671 12.11 1,176,466 11.81 Total portfolio $ 25,252,841 $ 23,747,242 The following table provides the average recorded investment and interest income recognized for our TDR loans. Three Months Ended 2020 2019 Average Interest Average Interest TDR Loans $ 1,615,764 $ 26,488 $ 1,312,729 $ 21,566 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Allowance for credit losses and recorded investments in loans | Allowance for Loan Losses Metrics Allowance for Loan Losses Three Months Ended March 31, 2020 FFELP Private Education Personal Credit Cards Total Allowance for Loan Losses Beginning balance $ 1,633 $ 374,300 $ 65,877 $ 102 $ 441,912 Day 1 adjustment for the adoption of CECL 2,852 1,060,830 79,183 188 1,143,053 Transfer from unfunded commitment liability — 142,075 — — 142,075 Provisions: Provision for current period 37 143,862 25,318 291 169,508 Loan sale reduction to provision — (161,793) — — (161,793) Total provision (1) 37 (17,931) 25,318 291 7,715 Net charge-offs: Charge-offs (226) (51,469) (19,247) (7) (70,949) Recoveries — 7,976 1,542 — 9,518 Net charge-offs (226) (43,493) (17,705) (7) (61,431) Ending Balance $ 4,296 $ 1,515,781 $ 152,673 $ 574 $ 1,673,324 Allowance: Ending balance: individually evaluated for impairment $ — $ 150,822 $ — $ — $ 150,822 Ending balance: collectively evaluated for impairment $ 4,296 $ 1,364,959 $ 152,673 $ 574 $ 1,522,502 Loans: Ending balance: individually evaluated for impairment $ — $ 1,518,763 $ — $ — $ 1,518,763 Ending balance: collectively evaluated for impairment $ 766,954 $ 20,107,984 $ 899,704 $ 7,234 $ 21,781,876 Net charge-offs as a percentage of average loans in repayment (annualized) (2) 0.15 % 1.05 % 7.27 % 0.52 % Allowance as a percentage of the ending total loan balance 0.56 % 7.01 % 16.97 % 7.93 % Allowance as a percentage of the ending loans in repayment (2) 0.74 % 10.11 % 16.97 % 7.93 % Allowance coverage of net charge-offs (annualized) 4.75 8.71 2.16 20.50 Ending total loans, gross $ 766,954 $ 21,626,747 $ 899,704 $ 7,234 Average loans in repayment (2) $ 600,534 $ 16,521,356 $ 973,772 $ 5,364 Ending loans in repayment (2) $ 581,997 $ 14,988,345 $ 899,704 $ 7,234 ____________ (1) Below is a reconciliation of the provision for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for loan losses. Consolidated Statements of Income Three Months Ended March 31, 2020 Provisions for credit losses for new loan commitments made during the quarter $ 53,543 Total provision for allowance for loan losses 7,715 Provisions for credit losses reported in consolidated statements of income $ 61,258 (2) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period. Allowance for Loan Losses Three Months Ended March 31, 2019 FFELP Private Education Personal Total Allowance for Loan Losses Beginning balance $ 977 $ 277,943 $ 62,201 $ 341,121 Total provision 1,017 41,883 22,760 65,660 Net charge-offs: Charge-offs (234) (39,577) (15,251) (55,062) Recoveries — 5,697 909 6,606 Net charge-offs (234) (33,880) (14,342) (48,456) Ending Balance $ 1,760 $ 285,946 $ 70,619 $ 358,325 Allowance: Ending balance: individually evaluated for impairment $ — $ 132,442 $ — $ 132,442 Ending balance: collectively evaluated for impairment $ 1,760 $ 153,504 $ 70,619 $ 225,883 Loans: Ending balance: individually evaluated for impairment $ — $ 1,327,668 $ — $ 1,327,668 Ending balance: collectively evaluated for impairment $ 828,640 $ 20,463,954 $ 1,162,874 $ 22,455,468 Net charge-offs as a percentage of average loans in repayment (annualized) (1) 0.14 % 0.89 % 4.88 % Allowance as a percentage of the ending total loan balance 0.21 % 1.31 % 6.07 % Allowance as a percentage of the ending loans in repayment (1) 0.27 % 1.87 % 6.07 % Allowance coverage of net charge-offs (annualized) 1.88 2.11 1.23 Ending total loans, gross $ 828,640 $ 21,791,622 $ 1,162,874 Average loans in repayment (1) $ 650,196 $ 15,165,072 $ 1,175,356 Ending loans in repayment (1) $ 641,658 $ 15,310,560 $ 1,162,874 ____________ |
Impaired financing receivables | The following table provides the recorded investment, unpaid principal balance and related allowance for our TDR loans. Recorded Investment Unpaid Principal Balance Allowance March 31, 2020 TDR Loans $ 1,550,600 $ 1,518,763 $ 150,822 December 31, 2019 TDR Loans $ 1,612,896 $ 1,581,966 $ 186,697 |
Average recorded investment and interest income recognized for troubled debt restructuring loans | Loans held for investment are summarized as follows: March 31, December 31, 2020 2019 Private Education Loans: Fixed-rate $ 9,813,075 $ 9,830,301 Variable-rate 11,813,672 13,359,290 Total Private Education Loans, gross 21,626,747 23,189,591 Deferred origination costs and unamortized premium/(discount) 65,267 81,224 Allowance for loan losses (1,515,781) (374,300) Total Private Education Loans, net 20,176,233 22,896,515 FFELP Loans 766,954 783,306 Deferred origination costs and unamortized premium/(discount) 2,113 2,143 Allowance for loan losses (4,296) (1,633) Total FFELP Loans, net 764,771 783,816 Personal Loans (fixed-rate) 899,704 1,049,007 Deferred origination costs and unamortized premium/(discount) 413 513 Allowance for loan losses (152,673) (65,877) Total Personal Loans, net 747,444 983,643 Credit Cards (fixed-rate) 7,234 3,884 Deferred origination costs and unamortized premium/(discount) 743 36 Allowance for loan losses (574) (102) Total Credit Cards, net 7,403 3,818 Loans held for investment, net $ 21,695,851 $ 24,667,792 The average balance and the respective weighted average interest rates of loans in our portfolio are summarized as follows: Three Months Ended March 31, 2020 2019 Average Balance Weighted Average Interest Rate Average Balance Weighted Average Interest Rate Private Education Loans $ 23,502,844 8.86 % $ 21,732,826 9.50 % FFELP Loans 776,326 4.29 837,950 4.94 Personal Loans 973,671 12.11 1,176,466 11.81 Total portfolio $ 25,252,841 $ 23,747,242 The following table provides the average recorded investment and interest income recognized for our TDR loans. Three Months Ended 2020 2019 Average Interest Average Interest TDR Loans $ 1,615,764 $ 26,488 $ 1,312,729 $ 21,566 |
Age analysis of past due loans delinquencies | Private Education Loan Delinquencies by Origination Vintage December 31, 2019 2019 2018 2017 2016 2015 2014 and Prior Total Loans in-school/grace/deferment (1) $ 1,670,644 $ 1,580,513 $ 1,010,764 $ 635,798 $ 375,585 $ 414,101 $ 5,687,405 Loans in forbearance (2) 21,009 108,509 142,341 146,114 127,799 168,744 714,516 Loans in repayment: Loans current 2,340,221 3,159,878 2,781,132 2,566,815 2,225,721 3,241,884 16,315,651 Loans delinquent 31-60 days (3) 11,152 26,096 44,382 51,656 54,559 100,206 288,051 Loans delinquent 61-90 days (3) 3,087 9,527 17,048 21,161 24,562 45,917 121,302 Loans delinquent greater than 90 days (3) 935 3,850 7,818 12,314 12,946 24,803 62,666 Total Private Education Loans in repayment 2,355,395 3,199,351 2,850,380 2,651,946 2,317,788 3,412,810 16,787,670 Total Private Education Loans, gross 4,047,048 4,888,373 4,003,485 3,433,858 2,821,172 3,995,655 23,189,591 Private Education Loans deferred origination costs and unamortized premium/(discount) 23,661 17,699 13,843 12,304 8,564 5,153 81,224 Total Private Education Loans 4,070,709 4,906,072 4,017,328 3,446,162 2,829,736 4,000,808 23,270,815 Private Education Loans allowance for losses (3,013) (19,105) (44,858) (71,598) (80,974) (154,752) (374,300) Private Education Loans, net $ 4,067,696 $ 4,886,967 $ 3,972,470 $ 3,374,564 $ 2,748,762 $ 3,846,056 $ 22,896,515 Percentage of Private Education Loans in repayment 58.2 % 65.4 % 71.2 % 77.2 % 82.2 % 85.4 % 72.4 % Delinquencies as a percentage of Private Education Loans in repayment 0.6 % 1.2 % 2.4 % 3.2 % 4.0 % 5.0 % 2.8 % Loans in forbearance as a percentage of loans in repayment and forbearance 0.9 % 3.3 % 4.8 % 5.2 % 5.2 % 4.7 % 4.1 % ______ (1) Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). (2) Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures. |
Modified loans accounts for troubled debt restructuring | The following table provides the amount of modified loans (which include forbearance and reductions in interest rates) that became TDRs in the periods presented. Additionally, for the periods presented, the table summarizes charge-offs occurring in the TDR portfolio, as well as TDRs for which a payment default occurred in the relevant period presented and within 12 months of the loan first being designated as a TDR. We define payment default as 60 days past due for this disclosure. Three Months Ended Three Months Ended Modified Loans (1) Charge-offs Payment- Modified Loans (1) Charge-offs Payment- TDR Loans $ 132,815 $ 19,375 $ 30,725 $ 111,208 $ 16,005 $ 25,462 _____ |
Private education loan portfolio stratified by key credit quality indicators | The following tables highlights the gross principal balance of our Private Education Loan portfolio, by year of origination, stratified by key credit quality indicators. Private Education Loans Credit Quality Indicators March 31, 2020 Year of Origination 2020 2019 2018 2017 2016 2015 and Prior Total % of Balance Cosigners: With cosigner $ 698,291 $ 4,527,042 $ 3,311,178 $ 2,869,295 $ 2,515,751 $ 5,295,854 $ 19,217,411 89 % Without cosigner 126,138 676,071 489,070 353,832 268,799 495,426 2,409,336 11 Total $ 824,429 $ 5,203,113 $ 3,800,248 $ 3,223,127 $ 2,784,550 $ 5,791,280 $ 21,626,747 100 % FICO at Origination: Less than 670 $ 62,064 $ 363,345 $ 274,016 $ 237,052 $ 197,390 $ 446,246 $ 1,580,113 7 % 670-699 123,512 757,806 555,719 502,930 435,075 955,404 3,330,446 15 700-749 268,388 1,688,114 1,243,712 1,068,091 937,643 1,933,589 7,139,537 33 Greater than or equal to 750 370,465 2,393,848 1,726,801 1,415,054 1,214,442 2,456,041 9,576,651 45 Total $ 824,429 $ 5,203,113 $ 3,800,248 $ 3,223,127 $ 2,784,550 $ 5,791,280 $ 21,626,747 100 % FICO Refreshed: Less than 670 $ 86,212 $ 544,160 $ 442,893 $ 419,466 $ 400,833 $ 1,029,741 $ 2,923,305 14 % 670-699 127,503 735,546 495,808 400,096 324,334 651,732 2,735,019 13 700-749 261,585 1,633,986 1,145,724 952,467 795,350 1,542,487 6,331,599 29 Greater than or equal to 750 349,129 2,289,421 1,715,823 1,451,098 1,264,033 2,567,320 9,636,824 44 Total $ 824,429 $ 5,203,113 $ 3,800,248 $ 3,223,127 $ 2,784,550 $ 5,791,280 $ 21,626,747 100 % Seasoning (2) : 1-12 payments $ 460,330 $ 2,838,628 $ 469,314 $ 529,441 $ 460,742 $ 715,809 $ 5,474,264 25 % 13-24 payments — 255,403 1,979,761 277,499 258,606 580,426 3,351,695 15 25-36 payments — — 169,436 1,494,597 268,357 538,209 2,470,599 11 37-48 payments — — — 117,409 1,194,038 568,792 1,880,239 9 More than 48 payments — — — — 87,201 2,714,272 2,801,473 13 Not yet in repayment 364,099 2,109,082 1,181,737 804,181 515,606 673,772 5,648,477 27 Total $ 824,429 $ 5,203,113 $ 3,800,248 $ 3,223,127 $ 2,784,550 $ 5,791,280 $ 21,626,747 100 % Current period gross charge-offs $ — $ (1,597) $ (5,241) $ (8,136) $ (10,284) $ (26,211) $ (51,469) Current period recoveries — 92 599 1,080 1,505 4,700 7,976 Current period net charge-offs $ — $ (1,505) $ (4,642) $ (7,056) $ (8,779) $ (21,511) $ (43,493) Total accrued interest by origination vintage $ 9,927 $ 181,551 $ 281,619 $ 279,039 $ 217,988 $ 288,627 $ 1,258,751 ______ (1) Balance represents gross Private Education Loans. (2) Represents the higher credit score of the cosigner or the borrower. (3) Represents the FICO score updated as of the first-quarter 2020. (4) Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due. Private Education Loans Credit Quality Indicators December 31, 2019 Year of Origination 2019 2018 2017 2016 2015 2014 and Prior Total % of Balance Cosigners: With cosigner $ 3,475,256 $ 4,303,772 $ 3,575,973 $ 3,112,873 $ 2,579,214 $ 3,662,547 $ 20,709,635 89 % Without cosigner 571,792 584,601 427,512 320,985 241,958 333,108 2,479,956 11 Total $ 4,047,048 $ 4,888,373 $ 4,003,485 $ 3,433,858 $ 2,821,172 $ 3,995,655 $ 23,189,591 100 % FICO at Origination: Less than 670 $ 283,040 $ 343,613 $ 285,747 $ 236,457 $ 203,145 $ 313,587 $ 1,665,589 7 % 670-699 592,376 714,779 617,676 529,575 439,050 676,569 3,570,025 16 700-749 1,319,563 1,601,904 1,325,387 1,155,253 944,135 1,324,506 7,670,748 33 Greater than or equal to 750 1,852,069 2,228,077 1,774,675 1,512,573 1,234,842 1,680,993 10,283,229 44 Total $ 4,047,048 $ 4,888,373 $ 4,003,485 $ 3,433,858 $ 2,821,172 $ 3,995,655 $ 23,189,591 100 % FICO Refreshed: Less than 670 $ 401,979 $ 515,901 $ 475,007 $ 449,568 $ 419,308 $ 717,674 $ 2,979,437 13 % 670-699 582,256 645,422 497,497 397,889 308,607 451,451 2,883,122 13 700-749 1,284,867 1,506,849 1,199,564 994,309 772,205 1,048,808 6,806,602 29 Greater than or equal to 750 1,777,946 2,220,201 1,831,417 1,592,092 1,321,052 1,777,722 10,520,430 45 Total $ 4,047,048 $ 4,888,373 $ 4,003,485 $ 3,433,858 $ 2,821,172 $ 3,995,655 $ 23,189,591 100 % Seasoning (2) : 1-12 payments $ 2,376,404 $ 719,158 $ 705,181 $ 617,174 $ 462,946 $ 470,839 $ 5,351,702 23 % 13-24 payments — 2,588,702 424,953 305,078 285,513 399,905 4,004,151 17 25-36 payments — — 1,862,587 418,048 227,391 394,339 2,902,365 12 37-48 payments — — — 1,457,760 413,508 342,676 2,213,944 10 More than 48 payments — — — — 1,056,229 1,973,795 3,030,024 13 Not yet in repayment 1,670,644 1,580,513 1,010,764 635,798 375,585 414,101 5,687,405 25 Total $ 4,047,048 $ 4,888,373 $ 4,003,485 $ 3,433,858 $ 2,821,172 $ 3,995,655 $ 23,189,591 100 % 2019 gross charge-offs $ (1,697) $ (14,650) $ (29,119) $ (40,576) $ (41,141) $ (81,795) $ (208,978) 2019 recoveries 69 1,016 2,622 4,431 5,175 12,452 25,765 2019 net charge-offs $ (1,628) $ (13,634) $ (26,497) $ (36,145) $ (35,966) $ (69,343) $ (183,213) Total accrued interest by origination vintage $ 116,423 $ 321,568 $ 327,002 $ 261,083 $ 165,764 $ 174,318 $ 1,366,158 ______ (1) Balance represents gross Private Education Loans. (2) Represents the higher credit score of the cosigner or the borrower. (3) Represents the FICO score updated as of the fourth-quarter 2019. (4) Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due. Personal Loans Credit Quality Indicators March 31, 2020 Year of Origination 2020 (1) 2019 (1) 2018 (1) 2017 (1) 2016 (1) Total (1) % of FICO at Origination: Less than 670 $ — $ 7,501 $ 26,745 $ 5,072 $ — $ 39,318 4 % 670-699 — 70,479 128,797 21,295 47 220,618 25 700-749 40 195,857 215,424 37,261 456 449,038 50 Greater than or equal to 750 — 91,012 84,726 14,708 284 190,730 21 Total $ 40 $ 364,849 $ 455,692 $ 78,336 $ 787 $ 899,704 100 % Seasoning (2) : 1-12 payments $ 40 $ 331,474 $ 400 $ — $ — $ 331,914 37 % 13-24 payments — 33,375 393,608 6 — 426,989 48 25-36 payments — — 61,684 76,924 — 138,608 15 37-48 payments — — — 1,406 787 2,193 — More than 48 payments — — — — — — — Not yet in repayment — — — — — — — Total $ 40 $ 364,849 $ 455,692 $ 78,336 $ 787 $ 899,704 100 % Current period gross charge-offs $ — $ (2,885) $ (13,758) $ (2,563) $ (41) $ (19,247) Current period recoveries — 15 1,127 389 11 1,542 Current period net charge-offs $ — $ (2,870) $ (12,631) $ (2,174) $ (30) $ (17,705) Total accrued interest by origination vintage $ — $ 3,161 $ 3,443 $ 414 $ 3 $ 7,021 ______ (1) Balance represents gross Personal Loans. (2) Number of months in active repayment for which a scheduled payment was due. Personal Loans Credit Quality Indicators December 31, 2019 Year of Origination 2019 (1) 2018 (1) 2017 (1) 2016 (1) Total (1) % of Balance FICO at Origination: Less than 670 $ 8,315 $ 32,021 $ 7,030 $ 1 $ 47,367 4 % 670-699 77,746 152,909 28,384 59 259,098 25 700-749 217,642 255,374 48,254 586 521,856 50 Greater than or equal to 750 101,073 100,480 18,795 338 220,686 21 Total $ 404,776 $ 540,784 $ 102,463 $ 984 $ 1,049,007 100 % Seasoning (2) : 1-12 payments $ 404,776 $ 65,164 $ — $ — $ 469,940 45 % 13-24 payments — 475,620 29,698 — 505,318 48 25-36 payments — — 72,765 984 73,749 7 37-48 payments — — — — — — More than 48 payments — — — — — — Not yet in repayment — — — — — — Total $ 404,776 $ 540,784 $ 102,463 $ 984 $ 1,049,007 100 % 2019 gross charge-offs $ (2,350) $ (58,134) $ (13,693) $ (136) $ (74,313) 2019 recoveries 48 3,397 1,722 39 5,206 2019 net charge-offs $ (2,302) $ (54,737) $ (11,971) $ (97) $ (69,107) Total accrued interest by origination vintage $ 3,431 $ 4,166 $ 572 $ 5 $ 8,174 ______ (1) Balance represents gross Personal Loans. (2) Number of months in active repayment for which a scheduled payment was due. The following tables provides information regarding the loan status of our Personal Loans, by vintage. Personal Loan Delinquencies by Origination Vintage March 31, 2020 2020 2019 2018 2017 2016 Total % of Balance Loans in Forbearance $ — $ 12,380 $ 7,137 $ — $ — $ 19,517 Loans in repayment: Loans current 40 346,123 433,664 76,188 787 856,802 97.4 % Loans delinquent 31-60 days (1) — 3,321 7,448 810 — 11,579 1.3 Loans delinquent 61-90 days (1) — 991 2,663 701 — 4,355 0.5 Loans delinquent greater than 90 days (1) — 2,034 4,781 636 — 7,451 0.8 Total Personal Loans in repayment 40 352,469 448,556 78,335 787 880,187 100.0 % Total Personal Loans, gross 40 364,849 455,693 78,335 787 899,704 Personal Loans deferred origination costs and unamortized premium/(discount) — 335 78 — — 413 Total Personal Loans 40 365,184 455,771 78,335 787 900,117 Personal Loans allowance for loan losses (6) (51,280) (89,194) (12,110) (83) (152,673) Personal Loans, net $ 34 $ 313,904 $ 366,577 $ 66,225 $ 704 $ 747,444 Delinquencies as a percentage of Personal Loans in repayment — % 1.8 % 3.3 % 2.7 % — % 2.6 % _______ (1) The period of delinquency is based on the number of days scheduled payments are contractually past due. Personal Loan Delinquencies by Origination Vintage December 31, 2019 2019 2018 2017 2016 Total % of Balance Loans in Forbearance $ — $ — $ — $ — $ — Loans in repayment: Loans current 400,216 522,778 99,581 942 1,023,517 97.6 % Loans delinquent 31-60 days (1) 2,164 6,213 1,045 13 9,435 0.9 Loans delinquent 61-90 days (1) 1,074 5,148 943 7 7,172 0.7 Loans delinquent greater than 90 days (1) 1,322 6,645 895 21 8,883 0.8 Total Personal Loans in repayment 404,776 540,784 102,464 983 1,049,007 100.0 % Total Personal Loans, gross 404,776 540,784 102,464 983 1,049,007 Personal Loans deferred origination costs and unamortized premium/(discount) 380 133 — — 513 Total Personal Loans 405,156 540,917 102,464 983 1,049,520 Personal Loans allowance for loan losses (21,589) (37,492) (6,722) (74) (65,877) Personal Loans, net $ 383,567 $ 503,425 $ 95,742 $ 909 $ 983,643 Delinquencies as a percentage of Personal Loans in repayment 1.1 % 3.3 % 2.8 % 4.2 % 2.4 % _______ (1) The period of delinquency is based on the number of days scheduled payments are contractually past due. |
Accrued interest receivable | The following table provides information regarding accrued interest receivable on our Private Education Loans. The table also discloses the amount of accrued interest on loans greater than 90 days past due as compared to our allowance for uncollectible interest on loans making full interest payments. The majority of the total accrued interest receivable represents accrued interest on deferred loans where no payments are due while the borrower is in school and fixed-pay loans where the borrower makes a $25 monthly payment that is smaller than the interest accruing on the loan in that month. The accrued interest on these loans will be capitalized to the balance of the loans when the borrower exits the grace period after separation from school. The allowance for this portion of interest is included in our loan loss reserve. The allowance for uncollectible interest exceeds the amount of accrued interest on our 90 days past due Private Education Loan portfolio for all periods presented. Private Education Loans Accrued Interest Receivable Total Interest Receivable Greater Than 90 Days Past Due Allowance for Uncollectible Interest March 31, 2020 $ 1,258,751 $ 3,127 $ 3,479 December 31, 2019 $ 1,366,158 $ 2,390 $ 5,309 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Schedule of deposits | The following table summarizes total deposits at March 31, 2020 and December 31, 2019. March 31, December 31, 2020 2019 Deposits - interest bearing $ 24,443,963 $ 24,282,906 Deposits - non-interest bearing 1,651 1,077 Total deposits $ 24,445,614 $ 24,283,983 |
Interest bearing deposits | Interest bearing deposits at March 31, 2020 and December 31, 2019 are summarized as follows: March 31, 2020 December 31, 2019 Amount Qtr.-End Weighted Average Stated Rate (1) Amount Year-End Weighted Average Stated Rate (1) Money market $ 9,561,715 1.74 % $ 9,616,547 2.04 % Savings 752,357 1.44 718,616 1.71 Certificates of deposit 14,129,891 1.95 13,947,743 2.44 Deposits - interest bearing $ 24,443,963 $ 24,282,906 ____________ (1) Includes the effect of interest rate swaps in effective hedge relationships. |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of debt | The following table summarizes our borrowings at March 31, 2020 and December 31, 2019. March 31, 2020 December 31, 2019 Short-Term Long-Term Total Short-Term Long-Term Total Unsecured borrowings: Unsecured debt (fixed-rate) $ — $ 198,362 $ 198,362 $ — $ 198,159 $ 198,159 Total unsecured borrowings — 198,362 198,362 — 198,159 198,159 Secured borrowings: Private Education Loan term securitizations: Fixed-rate — 2,912,346 2,912,346 — 2,629,902 2,629,902 Variable-rate — 1,597,328 1,597,328 — 1,525,976 1,525,976 Total Private Education Loan term securitizations — 4,509,674 4,509,674 — 4,155,878 4,155,878 Secured Borrowing Facility — — — 289,230 — 289,230 Total secured borrowings — 4,509,674 4,509,674 289,230 4,155,878 4,445,108 Total $ — $ 4,708,036 $ 4,708,036 $ 289,230 $ 4,354,037 $ 4,643,267 |
Schedule of securities financing transactions | Secured Financings at Issuance The following summarizes our secured financings issued in 2019 and through March 31, 2020: Issue Date Issued Total Issued Weighted Average Cost of Funds (1) Weighted Average Life Private Education: 2019-A March 2019 $ 453,000 1-month LIBOR plus 0.92% 4.26 2019-B June 2019 657,000 1-month LIBOR plus 1.01% 4.41 Total notes issued in 2019 $ 1,110,000 Total loan and accrued interest amount securitized at inception in 2019 $ 1,208,963 2020-A February 2020 $ 636,000 1-month LIBOR plus 0.88% 4.18 Total notes issued in 2020 $ 636,000 Total loan and accrued interest amount securitized at inception in 2020 $ 676,089 ____________ |
Schedule of variable interest entities | We consolidate the following financing VIEs as of March 31, 2020 and December 31, 2019, respectively: March 31, 2020 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets (1) Total Secured borrowings: Private Education Loan term securitizations $ — $ 4,509,674 $ 4,509,674 $ 5,594,488 $ 172,546 $ 370,795 $ 6,137,829 Secured Borrowing Facility — — — — 9,316 1,835 11,151 Total $ — $ 4,509,674 $ 4,509,674 $ 5,594,488 $ 181,862 $ 372,630 $ 6,148,980 ____ (1) Other assets primarily represent accrued interest receivable. December 31, 2019 Debt Outstanding Carrying Amount of Assets Securing Debt Outstanding Short-Term Long-Term Total Loans Restricted Cash Other Assets (1) Total Secured borrowings: Private Education Loan term securitizations $ — $ 4,155,878 $ 4,155,878 $ 5,246,986 $ 145,760 $ 333,173 $ 5,725,919 Secured Borrowing Facility 289,230 — 289,230 339,666 8,803 23,832 372,301 Total $ 289,230 $ 4,155,878 $ 4,445,108 $ 5,586,652 $ 154,563 $ 357,005 $ 6,098,220 ____ |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Impact of derivatives on the consolidated balance sheet | The following tables summarize the fair values and notional amounts of all derivative instruments at March 31, 2020 and December 31, 2019, and their impact on earnings and other comprehensive income for the three months ended March 31, 2020 and 2019. Please refer to Note 10, “Derivative Financial Instruments” in our 2019 Form 10-K for a full discussion of cash flow hedges, fair value hedges, and trading activities. Impact of Derivatives on the Consolidated Balance Sheets Cash Flow Hedges Fair Value Hedges Trading Total March 31, December March 31, December March 31, December March 31, December 2020 2019 2020 2019 2020 2019 2020 2019 Fair Values (1) Hedged Risk Exposure Derivative Assets: (2) Interest rate swaps Interest rate $ — $ 715 $ 2,902 $ — $ 751 $ — $ 3,653 $ 715 Derivative Liabilities: (2) Interest rate swaps Interest rate (275) — — (896) — (268) (275) (1,164) Total net derivatives $ (275) $ 715 $ 2,902 $ (896) $ 751 $ (268) $ 3,378 $ (449) ___________ (1) Fair values reported include variation margin as legal settlement of the derivative contract. Assets and liabilities are presented without consideration of master netting agreements. Derivatives are carried on the balance sheet based on net position by counterparty under master netting agreements and classified in other assets or other liabilities depending on whether in a net positive or negative position. (2) The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities March 31, December 31, March 31, December 31, 2020 2019 2020 2019 Gross position (1) $ 3,653 $ 715 $ (275) $ (1,164) Impact of master netting agreement (222) (519) 222 519 Derivative values with impact of master netting agreements (as carried on balance sheet) 3,431 196 (53) (645) Cash collateral pledged (2) 92,969 52,564 — — Net position $ 96,400 $ 52,760 $ (53) $ (645) __________ (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. |
Offsetting assets | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities March 31, December 31, March 31, December 31, 2020 2019 2020 2019 Gross position (1) $ 3,653 $ 715 $ (275) $ (1,164) Impact of master netting agreement (222) (519) 222 519 Derivative values with impact of master netting agreements (as carried on balance sheet) 3,431 196 (53) (645) Cash collateral pledged (2) 92,969 52,564 — — Net position $ 96,400 $ 52,760 $ (53) $ (645) __________ (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. |
Offsetting liabilities | The following table reconciles gross positions with the impact of master netting agreements to the balance sheet classification: Other Assets Other Liabilities March 31, December 31, March 31, December 31, 2020 2019 2020 2019 Gross position (1) $ 3,653 $ 715 $ (275) $ (1,164) Impact of master netting agreement (222) (519) 222 519 Derivative values with impact of master netting agreements (as carried on balance sheet) 3,431 196 (53) (645) Cash collateral pledged (2) 92,969 52,564 — — Net position $ 96,400 $ 52,760 $ (53) $ (645) __________ (1) Gross position amounts include accrued interest and variation margin as legal settlement of the derivative contract. |
Schedule of notional amounts of outstanding derivative positions | Cash Flow Fair Value Trading Total March 31, December 31, March 31, December 31, March 31, December 31, March 31, December 31, 2020 2019 2020 2019 2020 2019 2020 2019 Notional Values Interest rate swaps $ 1,117,945 $ 1,150,518 $ 5,193,323 $ 5,031,429 $ 3,452,241 $ 3,744,917 $ 9,763,509 $ 9,926,864 |
Schedule of cumulative basis adjustments for fair value hedges | As of March 31, 2020 and December 31, 2019, the following amounts were recorded on the consolidated balance sheet related to cumulative basis adjustments for fair value hedges: Line Item in the Balance Sheet in Which the Hedged Item is Included: Carrying Amount of the Hedged Assets/(Liabilities) Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) March 31, December 31, March 31, December 31, 2020 2019 2020 2019 Deposits $ (5,391,335) $ (5,085,426) $ (206,396) $ (63,148) |
Derivative instruments, gain (loss) | Impact of Derivatives on the Consolidated Statements of Income Three Months Ended 2020 2019 Fair Value Hedges Interest rate swaps: Interest recognized on derivatives $ 4,623 $ (3,827) Hedged items recorded in interest expense (143,248) (23,986) Derivatives recorded in interest expense 144,183 23,888 Total $ 5,558 $ (3,925) Cash Flow Hedges Interest rate swaps: Amount of gain (loss) reclassified from accumulated other comprehensive income into interest expense $ (1,528) $ 1,296 Total $ (1,528) $ 1,296 Trading Interest rate swaps: Change in fair value of future interest payments recorded in earnings $ 42,312 $ 4,202 Total 42,312 4,202 Total $ 46,342 $ 1,573 |
Schedule of derivative instruments, effect on other comprehensive income (loss) | Impact of Derivatives on the Statements of Changes in Stockholders’ Equity Three Months Ended March 31, 2020 2019 Amount of loss recognized in other comprehensive income (loss) $ (47,222) $ (12,821) Less: amount of gain (loss) reclassified in interest expense (1,528) 1,296 Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit $ (45,694) $ (14,117) |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Schedule of common share repurchases | The following table summarizes our common share repurchases and issuances. Three Months Ended (Shares and per share amounts in actuals) 2020 2019 Common stock repurchased under repurchase program (1)(2) 47,736,847 5,435,476 Average purchase price per share (3) $ 9.66 $ 11.04 Shares repurchased related to employee stock-based compensation plans (4) 1,105,119 1,289,391 Average purchase price per share $ 10.98 $ 10.95 Common shares issued (5) 2,837,562 3,470,664 __________________ (1) Common shares purchased under our share repurchase programs. $75 million of capacity under the 2020 Share Repurchase Program remained available as of March 31, 2020. (2) For the three months ended March 31, 2020, the amount includes 44.9 million shares related to the initial delivery of shares under our accelerated share repurchase agreement, described below. (3) Average purchase price per share includes purchase commission costs. (4) Comprised of shares withheld from stock option exercises and vesting of restricted stock for employees’ tax withholding obligations and shares tendered by employees to satisfy option exercise costs. (5) |
Earnings per Common Share (Tabl
Earnings per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share, basic and diluted | A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows. Three Months Ended March 31, (In thousands, except per share data) 2020 2019 Numerator: Net income $ 362,173 $ 158,189 Preferred stock dividends 3,464 4,468 Net income attributable to SLM Corporation common stock $ 358,709 $ 153,721 Denominator: Weighted average shares used to compute basic EPS 409,786 434,574 Effect of dilutive securities: Dilutive effect of stock options, restricted stock, restricted stock units, performance stock units and Employee Stock Purchase Plan (“ESPP”) (1)(2) 2,969 3,674 Weighted average shares used to compute diluted EPS 412,755 438,248 Basic earnings per common share attributable to SLM Corporation $ 0.88 $ 0.35 Diluted earnings per common share attributable to SLM Corporation $ 0.87 $ 0.35 ________________ (1) Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, performance stock units and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method. (2) |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Valuation of financial instruments that are marked-to-market on recurring basis | The following table summarizes the valuation of our financial instruments that are marked to fair value on a recurring basis. Fair Value Measurements on a Recurring Basis March 31, 2020 December 31, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets Available-for-sale investments $ — $ 538,742 $ 75,840 $ 614,582 $ — $ 487,669 $ — $ 487,669 Derivative instruments — 3,653 — 3,653 — 715 — 715 Total $ — $ 542,395 $ 75,840 $ 618,235 $ — $ 488,384 $ — $ 488,384 Liabilities Derivative instruments $ — $ (275) $ — $ (275) $ — $ (1,164) $ — $ (1,164) Total $ — $ (275) $ — $ (275) $ — $ (1,164) $ — $ (1,164) |
Fair values of financial assets and liabilities, including derivative financial instruments | The following table summarizes the fair values of our financial assets and liabilities, including derivative financial instruments. March 31, 2020 December 31, 2019 Fair Carrying Difference Fair Carrying Difference Earning assets: Loans held for investment, net: Private Education Loans $ 21,826,300 $ 20,176,233 $ 1,650,067 $ 24,988,941 $ 22,896,515 $ 2,092,426 FFELP Loans 755,449 764,771 (9,322) 795,055 783,816 11,239 Personal Loans 851,750 747,444 104,306 1,047,119 983,643 63,476 Credit Cards 6,959 7,403 (444) 3,818 3,818 — Cash and cash equivalents 7,292,929 7,292,929 — 5,563,877 5,563,877 — Trading investments 11,360 11,360 — — — — Available-for-sale investments 614,582 614,582 — 487,669 487,669 — Accrued interest receivable 1,291,972 1,281,746 10,226 1,491,471 1,392,725 98,746 Tax indemnification receivable 27,727 27,727 — 27,558 27,558 — Derivative instruments 3,653 3,653 — 715 715 — Total earning assets $ 32,682,681 $ 30,927,848 $ 1,754,833 $ 34,406,223 $ 32,140,336 $ 2,265,887 Interest-bearing liabilities: Money-market and savings accounts $ 10,360,970 $ 10,314,072 $ (46,898) $ 10,363,691 $ 10,335,163 $ (28,528) Certificates of deposit 14,202,601 14,129,891 (72,710) 14,065,007 13,947,743 (117,264) Short-term borrowings — — — 289,230 289,230 — Long-term borrowings 4,572,625 4,708,036 135,411 4,434,323 4,354,037 (80,286) Accrued interest payable 93,768 93,768 — 75,158 75,158 — Derivative instruments 275 275 — 1,164 1,164 — Total interest-bearing liabilities $ 29,230,239 $ 29,246,042 $ 15,803 $ 29,228,573 $ 29,002,495 $ (226,078) Excess of net asset fair value over carrying value $ 1,770,636 $ 2,039,809 |
Regulatory Capital (Tables)
Regulatory Capital (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Banking and Thrift [Abstract] | |
Schedule of compliance with regulatory capital requirements under banking regulations | Actual U.S. Basel III Minimum Requirements Plus Buffer (1)(2) Amount Ratio Amount Ratio As of March 31, 2020: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 3,112,763 12.4 % $ 1,757,168 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 3,112,763 12.4 % $ 2,133,704 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,428,154 13.7 % $ 2,635,752 > 10.5 % Tier 1 Capital (to Average Assets) $ 3,112,763 9.4 % $ 1,326,107 > 4.0 % As of December 31, 2019: Common Equity Tier 1 Capital (to Risk-Weighted Assets) $ 3,264,309 12.2 % $ 1,876,050 > 7.0 % Tier 1 Capital (to Risk-Weighted Assets) $ 3,264,309 12.2 % $ 2,278,060 > 8.5 % Total Capital (to Risk-Weighted Assets) $ 3,600,668 13.4 % $ 2,814,074 > 10.5 % Tier 1 Capital (to Average Assets) $ 3,264,309 10.2 % $ 1,284,642 > 4.0 % ________________ (1) Reflects the U.S. Basel III minimum required ratio plus the applicable capital conservation buffer. (2) |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Impaired [Line Items] | ||
Percentage of Private Education Loans related to borrowers in school, grace or deferment | 27.00% | 25.00% |
Interest rate offered to borrowers facing financial difficulty | 4.00% | |
Period of forbearance period to be classified as TDR | 3 months | |
Period of forbearance | 24 months | |
Period after grace period for forbearance allowance for loans | 9 months | |
Forbearance period after grace period for loans | 6 months | |
Percentage of loans granted forbearance (as a percentage) | 48.00% | 50.00% |
Personal loans held for investment | $ 21,695,851 | $ 24,667,792 |
Percentage reimbursement on all qualifying default claims period two (as a percentage) | 97.00% | |
Percentage reimbursement on all qualifying default claims period one (as a percentage) | 98.00% | |
Percentage reimbursement on all qualifying default claims period three (as a percentage) | 100.00% | |
Variable rate | 105.00% | |
Personal Loans | ||
Financing Receivable, Impaired [Line Items] | ||
Personal loans held for investment | $ 747,444 | $ 983,643 |
Significant Accounting Polici_5
Significant Accounting Policies - Effect of CECL Adoption (Details) - USD ($) $ in Thousands | Jan. 01, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans and leases | $ 441,912 | $ 1,673,324 | $ 441,912 | $ 358,325 | $ 341,121 |
Off-balance sheet exposures | 2,481 | ||||
Retained Earnings | 1,850,512 | ||||
Other Assets | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred tax asset | 109,369 | ||||
Private Education Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans and leases | 374,300 | 1,515,781 | 374,300 | ||
FFELP Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans and leases | 1,633 | 4,296 | 1,633 | ||
Personal Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans and leases | 65,877 | 152,673 | 65,877 | ||
Credit Cards | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans and leases | 102 | $ 574 | $ 102 | ||
Cumulative Effect, Period Of Adoption, Adjusted Balance | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans and leases | 1,584,965 | ||||
Off-balance sheet exposures | 118,239 | ||||
Retained Earnings | 897,873 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Other Assets | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred tax asset | 415,540 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Private Education Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans and leases | 1,435,130 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | FFELP Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans and leases | 4,485 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Personal Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans and leases | 145,060 | ||||
Cumulative Effect, Period Of Adoption, Adjusted Balance | Credit Cards | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans and leases | 290 | ||||
Cumulative Effect, Period Of Adoption, Adjustment | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans and leases | 1,143,053 | ||||
Off-balance sheet exposures | 115,758 | ||||
Retained Earnings | (952,639) | ||||
Cumulative Effect, Period Of Adoption, Adjustment | Other Assets | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Deferred tax asset | 306,171 | ||||
Cumulative Effect, Period Of Adoption, Adjustment | Private Education Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans and leases | 1,060,830 | ||||
Cumulative Effect, Period Of Adoption, Adjustment | FFELP Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans and leases | 2,852 | ||||
Cumulative Effect, Period Of Adoption, Adjustment | Personal Loans | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans and leases | 79,183 | ||||
Cumulative Effect, Period Of Adoption, Adjustment | Credit Cards | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Allowance for credit losses on loans and leases | $ 188 |
Investments - Additional Inform
Investments - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020USD ($)securitynumberOfInvestments | Dec. 31, 2019USD ($)security | |
Investment Holdings [Line Items] | ||
Vertical risk retention interest | 5.00% | |
Trading investments | $ 11,360 | $ 0 |
Available-for-sale investments, cost | $ 607,867 | 485,756 |
Number of securities in net loss position | numberOfInvestments | 10 | |
Par value of mortgage-backed securities pledged to FRB | $ 285,000 | 252,000 |
Gain on equity securities investment | 8,000 | |
Non-marketable securities investment | 26,000 | 26,000 |
Low income housing tax credit investments | 57,000 | 58,000 |
Low income housing tax credit investments, liability for unfunded commitments | 25,000 | 29,000 |
Low income housing tax credit investments, tax credits and benefits | $ 1,000 | $ 6,000 |
Low income housing tax credit investments, expected tax benefits recognized | 25.00% | |
Student Loan | ||
Investment Holdings [Line Items] | ||
Private education loans sold | $ 1,700,000 | |
Mortgage-backed securities | ||
Investment Holdings [Line Items] | ||
Number of securities in net loss position | security | 0 | 33 |
Number of mortgage-backed securities | security | 107 | |
Utah Housing Corporation bonds | ||
Investment Holdings [Line Items] | ||
Number of securities in net loss position | security | 1 | |
Number of mortgage-backed securities | security | 3 | |
U.S. government-sponsored enterprises | ||
Investment Holdings [Line Items] | ||
Number of securities in net loss position | security | 1 | |
Number of government sponsored securities | security | 20 | |
Ginnie Mae | Mortgage-backed securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale investments, cost | $ 51,000 | |
Number of securities in net loss position | security | 18 | |
Number of mortgage-backed securities | security | 33 | |
Fannie Mae | Mortgage-backed securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale investments, cost | 104,000 | |
Freddie Mac | Mortgage-backed securities | ||
Investment Holdings [Line Items] | ||
Available-for-sale investments, cost | $ 52,000 |
Investments - Amortized Cost an
Investments - Amortized Cost and Fair Value of Securities Available for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 607,867 | $ 485,756 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 9,762 | 2,675 |
Gross Unrealized Losses | (3,047) | (762) |
Estimated Fair Value | 614,582 | 487,669 |
Mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 206,640 | 215,888 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 6,400 | 1,895 |
Gross Unrealized Losses | 0 | (658) |
Estimated Fair Value | 213,040 | 217,125 |
Utah Housing Corporation bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15,931 | 19,474 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 156 | 145 |
Gross Unrealized Losses | (74) | (83) |
Estimated Fair Value | 16,013 | 19,536 |
U.S. government-sponsored enterprises | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 306,491 | 250,394 |
Allowance for credit losses | 0 | 0 |
Gross Unrealized Gains | 3,206 | 635 |
Gross Unrealized Losses | (8) | (21) |
Estimated Fair Value | 309,689 | $ 251,008 |
Other securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 78,805 | |
Allowance for credit losses | 0 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (2,965) | |
Estimated Fair Value | $ 75,840 |
Investments - Gross Unrealized
Investments - Gross Unrealized Losses and Fair Value for Mortgage-Backed in Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Less than 12 months | ||
Gross Unrealized Losses | $ (2,973) | $ (239) |
Estimated Fair Value | 92,663 | 40,601 |
12 months or more | ||
Gross Unrealized Losses | (74) | (523) |
Estimated Fair Value | 8,965 | 53,545 |
Total | ||
Gross Unrealized Losses | (3,047) | (762) |
Estimated Fair Value | 101,628 | 94,146 |
Mortgage-backed securities | ||
Less than 12 months | ||
Gross Unrealized Losses | 0 | (218) |
Estimated Fair Value | 0 | 25,624 |
12 months or more | ||
Gross Unrealized Losses | 0 | (440) |
Estimated Fair Value | 0 | 42,448 |
Total | ||
Gross Unrealized Losses | 0 | (658) |
Estimated Fair Value | 0 | 68,072 |
Utah Housing Corporation bonds | ||
Less than 12 months | ||
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 0 | 0 |
12 months or more | ||
Gross Unrealized Losses | (74) | (83) |
Estimated Fair Value | 8,965 | 11,097 |
Total | ||
Gross Unrealized Losses | (74) | (83) |
Estimated Fair Value | 8,965 | 11,097 |
U.S. government-sponsored enterprises | ||
Less than 12 months | ||
Gross Unrealized Losses | (8) | (21) |
Estimated Fair Value | 16,823 | 14,977 |
12 months or more | ||
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 0 | 0 |
Total | ||
Gross Unrealized Losses | (8) | (21) |
Estimated Fair Value | 16,823 | $ 14,977 |
Other securities | ||
Less than 12 months | ||
Gross Unrealized Losses | (2,965) | |
Estimated Fair Value | 75,840 | |
12 months or more | ||
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 0 | |
Total | ||
Gross Unrealized Losses | (2,965) | |
Estimated Fair Value | $ 75,840 |
Investments - Maturity Table (D
Investments - Maturity Table (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 607,867 | $ 485,756 |
Estimated Fair Value | 614,582 | $ 487,669 |
2020 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 94,048 | |
Estimated Fair Value | 94,320 | |
2021 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 145,340 | |
Estimated Fair Value | 147,711 | |
2022 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 54,127 | |
Estimated Fair Value | 54,317 | |
2023 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 12,977 | |
Estimated Fair Value | 13,341 | |
2038 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 175 | |
Estimated Fair Value | 192 | |
2039 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,457 | |
Estimated Fair Value | 2,668 | |
2042 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 7,115 | |
Estimated Fair Value | 7,172 | |
2043 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11,130 | |
Estimated Fair Value | 11,560 | |
2044 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 16,149 | |
Estimated Fair Value | 16,684 | |
2045 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 16,896 | |
Estimated Fair Value | 17,286 | |
2046 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 27,641 | |
Estimated Fair Value | 28,385 | |
2047 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 39,927 | |
Estimated Fair Value | 40,313 | |
2048 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,248 | |
Estimated Fair Value | 10,664 | |
2049 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 84,282 | |
Estimated Fair Value | 87,458 | |
2050 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 6,550 | |
Estimated Fair Value | 6,671 | |
2054 | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 78,805 | |
Estimated Fair Value | $ 75,840 |
Loans Held for Investment - Add
Loans Held for Investment - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Jul. 01, 2006 | Jun. 30, 2006 | Sep. 30, 1993 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Percent of private loans indexed to LIBOR | 55.00% | 58.00% | ||||
Tier 1 of government guarantee (at least) | 97.00% | 97.00% | ||||
Tier 2 of government guarantee | 98.00% | |||||
Tier 3 of government guarantee | 100.00% | |||||
Gain from sale | $ 238,935 | $ 0 | ||||
Proceeds from sale of loans receivable | 3,100,000 | |||||
Net proceeds from sales of loans held for investment, principal | 2,900,000 | |||||
Net proceeds from sales of loans held for investment, capitalized interest | 199,000 | |||||
Net proceeds from sales of loans held for investment, accrued interest | $ 12,000 | |||||
Estimated weighted average life of student loans | 5 years 3 months 18 days | 5 years 4 months 24 days | ||||
Interest rate offered to borrowers facing financial difficulty | 4.00% | |||||
Interest rate offered to borrowers facing financial difficulty, period | 2 years | |||||
Loans currently in repayment status that were subject to interest rate reductions | 8.50% | 7.20% | ||||
Minimum | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Interest rate offered to borrowers facing financial difficulty | 2.00% | |||||
Increase to life of loan defaults | 4.00% | |||||
Maximum | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Interest rate offered to borrowers facing financial difficulty | 4.00% | |||||
Increase to life of loan defaults | 14.00% |
Loans Held for Investment - Stu
Loans Held for Investment - Student Loan Portfolio by Program (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Jan. 01, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Allowance for loan losses | $ (1,673,324) | $ (441,912) | $ (441,912) | $ (358,325) | $ (341,121) |
Loans held for investment, net | 21,695,851 | 24,667,792 | |||
Private Education Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Private education loans | 21,626,747 | 23,189,591 | |||
Deferred origination costs and unamortized premium/(discount) | 65,267 | 81,224 | |||
Allowance for loan losses | (1,515,781) | (374,300) | (374,300) | ||
Loans held for investment, net | 20,176,233 | 22,896,515 | |||
Private Education Loans | Fixed-rate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Private education loans | 9,813,075 | 9,830,301 | |||
Private Education Loans | Variable-rate | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Private education loans | 11,813,672 | 13,359,290 | |||
FFELP Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Private education loans | 766,954 | 783,306 | |||
Deferred origination costs and unamortized premium/(discount) | 2,113 | 2,143 | |||
Allowance for loan losses | (4,296) | (1,633) | (1,633) | ||
Loans held for investment, net | 764,771 | 783,816 | |||
Personal Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Private education loans | 899,704 | 1,049,007 | |||
Deferred origination costs and unamortized premium/(discount) | 413 | 513 | |||
Allowance for loan losses | (152,673) | (65,877) | (65,877) | ||
Loans held for investment, net | 747,444 | 983,643 | |||
Credit Cards | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Private education loans | 7,234 | 3,884 | |||
Deferred origination costs and unamortized premium/(discount) | 743 | 36 | |||
Allowance for loan losses | (574) | $ (102) | (102) | ||
Loans held for investment, net | $ 7,403 | $ 3,818 |
Loans Held for Investment - S_2
Loans Held for Investment - Student Loan Portfolio Average Balances (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Balance | $ 25,252,841 | $ 23,747,242 |
Private Education Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Balance | $ 23,502,844 | $ 21,732,826 |
Weighted Average Interest Rate | 8.86% | 9.50% |
FFELP Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Balance | $ 776,326 | $ 837,950 |
Weighted Average Interest Rate | 4.29% | 4.94% |
Personal Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Balance | $ 973,671 | $ 1,176,466 |
Weighted Average Interest Rate | 12.11% | 11.81% |
Allowance for Loan Losses - All
Allowance for Loan Losses - Allowance and Recorded Investments in Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Jan. 01, 2020 | |
Allowance for Loan Losses | ||||
Beginning balance | $ 441,912 | $ 341,121 | $ 341,121 | |
Provision for current period | 169,508 | |||
Loan sale reduction to provision | (161,793) | |||
Total provision | 7,715 | 65,660 | ||
Net charge-offs: | ||||
Charge-offs | (70,949) | (55,062) | ||
Recoveries | 9,518 | 6,606 | ||
Current period net charge-offs | 61,431 | 48,456 | ||
Ending Balance | 1,673,324 | 358,325 | 441,912 | |
Allowance: | ||||
Ending balance: individually evaluated for impairment | 150,822 | 132,442 | ||
Ending balance: collectively evaluated for impairment | 1,522,502 | 225,883 | ||
Loans: | ||||
Ending balance: individually evaluated for impairment | 1,518,763 | 1,327,668 | ||
Ending balance: collectively evaluated for impairment | 21,781,876 | 22,455,468 | ||
Provisions for credit losses for new loan commitments made during the quarter | 53,543 | |||
Total provision for allowance for loan losses | 7,715 | |||
Provisions for credit losses reported in consolidated statements of income | 61,258 | 63,790 | ||
Cumulative Effect, Period Of Adoption, Adjustment | ||||
Allowance for Loan Losses | ||||
Day 1 adjustment for the adoption of CECL | $ 1,143,053 | |||
Transfer from unfunded commitment liability | 142,075 | |||
FFELP Loans | ||||
Allowance for Loan Losses | ||||
Beginning balance | 1,633 | 977 | 977 | |
Provision for current period | 37 | |||
Loan sale reduction to provision | 0 | |||
Total provision | 37 | 1,017 | ||
Net charge-offs: | ||||
Charge-offs | (226) | (234) | ||
Recoveries | 0 | 0 | ||
Current period net charge-offs | 226 | 234 | ||
Ending Balance | 4,296 | 1,760 | 1,633 | |
Allowance: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 4,296 | 1,760 | ||
Loans: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | $ 766,954 | $ 828,640 | ||
Net charge-offs as a percentage of average loans in repayment (annualized) | 0.15% | 0.14% | ||
Allowance as a percentage of the ending total loan balance | 0.56% | 0.21% | ||
Allowance as a percentage of the ending loans in repayment | 0.74% | 0.27% | ||
Allowance coverage of net charge-offs (annualized) | 4.75 | 1.88 | ||
Ending total loans, gross | $ 766,954 | $ 828,640 | ||
Average loans in repayment | 600,534 | 650,196 | ||
Ending loans in repayment | 581,997 | 641,658 | ||
FFELP Loans | Cumulative Effect, Period Of Adoption, Adjustment | ||||
Allowance for Loan Losses | ||||
Day 1 adjustment for the adoption of CECL | 2,852 | |||
Transfer from unfunded commitment liability | 0 | |||
Private Education Loans | ||||
Allowance for Loan Losses | ||||
Beginning balance | 374,300 | 277,943 | 277,943 | |
Provision for current period | 143,862 | |||
Loan sale reduction to provision | (161,793) | |||
Total provision | (17,931) | 41,883 | ||
Net charge-offs: | ||||
Charge-offs | (51,469) | (39,577) | ||
Recoveries | 7,976 | 5,697 | ||
Current period net charge-offs | 43,493 | 33,880 | ||
Ending Balance | 1,515,781 | 285,946 | 374,300 | |
Allowance: | ||||
Ending balance: individually evaluated for impairment | 150,822 | 132,442 | ||
Ending balance: collectively evaluated for impairment | 1,364,959 | 153,504 | ||
Loans: | ||||
Ending balance: individually evaluated for impairment | 1,518,763 | 1,327,668 | ||
Ending balance: collectively evaluated for impairment | $ 20,107,984 | $ 20,463,954 | ||
Net charge-offs as a percentage of average loans in repayment (annualized) | 1.05% | 0.89% | ||
Allowance as a percentage of the ending total loan balance | 7.01% | 1.31% | ||
Allowance as a percentage of the ending loans in repayment | 10.11% | 1.87% | ||
Allowance coverage of net charge-offs (annualized) | 8.71 | 2.11 | ||
Ending total loans, gross | $ 21,626,747 | $ 21,791,622 | ||
Average loans in repayment | 16,521,356 | 15,165,072 | ||
Ending loans in repayment | 14,988,345 | 15,310,560 | ||
Private Education Loans | Cumulative Effect, Period Of Adoption, Adjustment | ||||
Allowance for Loan Losses | ||||
Day 1 adjustment for the adoption of CECL | 1,060,830 | |||
Transfer from unfunded commitment liability | 142,075 | |||
Personal Loans | ||||
Allowance for Loan Losses | ||||
Beginning balance | 65,877 | 62,201 | 62,201 | |
Provision for current period | 25,318 | |||
Loan sale reduction to provision | 0 | |||
Total provision | 25,318 | 22,760 | ||
Net charge-offs: | ||||
Charge-offs | (19,247) | (15,251) | ||
Recoveries | 1,542 | 909 | ||
Current period net charge-offs | 17,705 | 14,342 | ||
Ending Balance | 152,673 | 70,619 | 65,877 | |
Allowance: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | 152,673 | 70,619 | ||
Loans: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | ||
Ending balance: collectively evaluated for impairment | $ 899,704 | $ 1,162,874 | ||
Net charge-offs as a percentage of average loans in repayment (annualized) | 7.27% | 4.88% | ||
Allowance as a percentage of the ending total loan balance | 16.97% | 6.07% | ||
Allowance as a percentage of the ending loans in repayment | 16.97% | 6.07% | ||
Allowance coverage of net charge-offs (annualized) | 2.16 | 1.23 | ||
Ending total loans, gross | $ 899,704 | $ 1,162,874 | ||
Average loans in repayment | 973,772 | 1,175,356 | ||
Ending loans in repayment | 899,704 | $ 1,162,874 | ||
Personal Loans | Cumulative Effect, Period Of Adoption, Adjustment | ||||
Allowance for Loan Losses | ||||
Day 1 adjustment for the adoption of CECL | 79,183 | |||
Transfer from unfunded commitment liability | 0 | |||
Credit Cards | ||||
Allowance for Loan Losses | ||||
Beginning balance | 102 | |||
Provision for current period | 291 | |||
Loan sale reduction to provision | 0 | |||
Total provision | 291 | |||
Net charge-offs: | ||||
Charge-offs | (7) | |||
Recoveries | 0 | |||
Current period net charge-offs | 7 | |||
Ending Balance | 574 | $ 102 | ||
Allowance: | ||||
Ending balance: individually evaluated for impairment | 0 | |||
Ending balance: collectively evaluated for impairment | 574 | |||
Loans: | ||||
Ending balance: individually evaluated for impairment | 0 | |||
Ending balance: collectively evaluated for impairment | $ 7,234 | |||
Net charge-offs as a percentage of average loans in repayment (annualized) | 0.52% | |||
Allowance as a percentage of the ending total loan balance | 7.93% | |||
Allowance as a percentage of the ending loans in repayment | 7.93% | |||
Allowance coverage of net charge-offs (annualized) | 20.50 | |||
Ending total loans, gross | $ 7,234 | |||
Average loans in repayment | 5,364 | |||
Ending loans in repayment | 7,234 | |||
Credit Cards | Cumulative Effect, Period Of Adoption, Adjustment | ||||
Allowance for Loan Losses | ||||
Day 1 adjustment for the adoption of CECL | $ 188 | |||
Transfer from unfunded commitment liability | $ 0 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Details) | 3 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Jul. 01, 2006 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest rate offered to borrowers facing financial difficulty | 4.00% | |||
Interest rate offered to borrowers facing financial difficulty, period | 2 years | |||
Percentage of loans in full and interest repayment status that are subject to interest rate reductions | 8.50% | 7.20% | ||
Percentage of loans granted forbearance (as a percentage) | 48.00% | 50.00% | ||
Criteria for loans to be considered as nonperforming (greater than) | 90 days | |||
Tier 1 of government guarantee (at least) | 97.00% | 97.00% | ||
TDR payment default period (more than) | 60 days | |||
Percentage of FFELP loans insured and guaranteed (at least) | 97.00% | |||
Period of loans past due that have accrued interest (greater than) | 90 days | |||
Maximum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest rate offered to borrowers facing financial difficulty | 4.00% | |||
Minimum | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Interest rate offered to borrowers facing financial difficulty | 2.00% |
Allowance for Loan Losses - Rec
Allowance for Loan Losses - Recorded Investment, Unpaid Principal Balance and Related Allowance for TDR Loans (Details) - TDR Loans - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Recorded Investment | $ 1,550,600 | $ 1,612,896 |
Unpaid Principal Balance | 1,518,763 | 1,581,966 |
Allowance | $ 150,822 | $ 186,697 |
Allowance for Loan Losses - Ave
Allowance for Loan Losses - Average Recorded Investment and Interest Income Recognized for TDR (Details) - TDR Loans - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | $ 1,615,764 | $ 1,312,729 |
Interest Income Recognized | $ 26,488 | $ 21,566 |
Allowance for Loan Losses - Loa
Allowance for Loan Losses - Loan Status and Aging of Past Due TDR Loans (Details) - Student Loan - Consumer Portfolio Segment - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
TDR loans in repayment and percentage of each status: | ||
Total Private Education Loans in repayment | $ 455,960 | $ 2,355,395 |
Total | 14,516,211 | 16,315,651 |
Troubled Debt Restructured Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
TDR loans in in-school/grace/deferment | 83,964 | 87,749 |
TDR loans in forbearance | 162,048 | 99,054 |
TDR loans in repayment and percentage of each status: | ||
Loans current | 1,113,104 | 1,230,954 |
Total Private Education Loans in repayment | $ 1,272,751 | $ 1,395,163 |
Loans current, percentage | 87.50% | 88.20% |
Total TDR loans in repayment | 100.00% | 100.00% |
Total | $ 1,518,763 | $ 1,581,966 |
Loan delinquency 31-60 days | ||
TDR loans in repayment and percentage of each status: | ||
Total | 254,625 | 288,051 |
Loan delinquency 31-60 days | Troubled Debt Restructured Loans | ||
TDR loans in repayment and percentage of each status: | ||
Loans delinquent | $ 74,856 | $ 85,555 |
Loans delinquent | 5.90% | 6.10% |
Loan delinquency 61-90 | ||
TDR loans in repayment and percentage of each status: | ||
Total | $ 135,896 | $ 121,302 |
Loan delinquency 61-90 | Troubled Debt Restructured Loans | ||
TDR loans in repayment and percentage of each status: | ||
Loans delinquent | $ 50,237 | $ 49,626 |
Loans delinquent | 3.90% | 3.60% |
Loan delinquency greater than 90 days | ||
TDR loans in repayment and percentage of each status: | ||
Total | $ 81,613 | $ 62,666 |
Loan delinquency greater than 90 days | Troubled Debt Restructured Loans | ||
TDR loans in repayment and percentage of each status: | ||
Loans delinquent | $ 34,554 | $ 29,028 |
Loans delinquent | 2.70% | 2.10% |
Allowance for Loan Losses - Mod
Allowance for Loan Losses - Modified Loan Accounts for TDR (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Receivables [Abstract] | ||
Modified Loans | $ 132,815 | $ 111,208 |
Charge-offs | 19,375 | 16,005 |
Payment- Default | $ 30,725 | $ 25,462 |
Allowance for Loan Losses - L_2
Allowance for Loan Losses - Loan Portfolio Stratified by Key Credit Quality Indicators (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Current period gross charge-offs | $ 70,949 | $ 55,062 | |||||
Current period recoveries | 9,518 | 6,606 | |||||
Current period net charge-offs | 61,431 | $ 48,456 | |||||
Personal Loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Total | 899,704 | $ 1,049,007 | |||||
Total accrued interest by origination vintage, 2020 | 0 | 3,431 | |||||
Total accrued interest by origination vintage, 2019 | 3,161 | 4,166 | |||||
Total accrued interest by origination vintage, 2018 | 3,443 | 572 | |||||
Total accrued interest by origination vintage, 2017 | 414 | 5 | |||||
Total accrued interest by origination vintage, 2016 | 3 | ||||||
Total accrued interest by origination vintage | 7,021 | 8,174 | |||||
Consumer Portfolio Segment | Student Loan | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | 454,436 | ||||||
2019 | 3,020,099 | 2,340,221 | |||||
2018 | 2,422,162 | 3,159,878 | |||||
2017 | 2,162,435 | 2,781,132 | |||||
2016 | 1,999,047 | 2,566,815 | |||||
2015 and Prior | 4,458,032 | 2,225,721 | |||||
2014 and Prior | 3,241,884 | ||||||
Total | 14,516,211 | 16,315,651 | |||||
Total accrued interest by origination vintage, 2020 | 9,927 | 116,423 | |||||
Total accrued interest by origination vintage, 2019 | 181,551 | 321,568 | |||||
Total accrued interest by origination vintage, 2018 | 281,619 | 327,002 | |||||
Total accrued interest by origination vintage, 2017 | 279,039 | 261,083 | |||||
Total accrued interest by origination vintage, 2016 | 217,988 | 165,764 | |||||
Total accrued interest by origination vintage, 2015 and prior | 288,627 | 174,318 | |||||
Total accrued interest by origination vintage | 1,258,751 | 1,366,158 | |||||
Current period gross charge-offs, 2020 | 0 | 1,697 | |||||
Current period gross charge-offs, 2019 | 1,597 | 14,650 | |||||
Current period gross charge-offs, 2018 | 5,241 | 29,119 | |||||
Current period gross charge-offs, 2017 | 8,136 | 40,576 | |||||
Current period gross charge-offs, 2016 | 10,284 | 41,141 | |||||
Current period gross charge-offs, 2015 and prior | 26,211 | 81,795 | |||||
Current period gross charge-offs | 51,469 | 208,978 | |||||
Current period recoveries, 2020 | 0 | 69 | |||||
Current period recoveries, 2019 | 92 | 1,016 | |||||
Current period recoveries, 2018 | 599 | 2,622 | |||||
Current period recoveries, 2017 | 1,080 | 4,431 | |||||
Current period recoveries, 2016 | 1,505 | 5,175 | |||||
Current period recoveries, 2015 and prior | 4,700 | 12,452 | |||||
Current period recoveries | 7,976 | 25,765 | |||||
Current period net charge-offs, 2020 | 0 | 1,628 | |||||
Current period net charge-offs, 2019 | 1,505 | 13,634 | |||||
Current period net charge-offs, 2018 | 4,642 | 26,497 | |||||
Current period net charge-offs, 2017 | 7,056 | 36,145 | |||||
Current period net charge-offs, 2016 | 8,779 | 35,966 | |||||
Current period net charge-offs, 2015 and prior | 21,511 | 69,343 | |||||
Current period net charge-offs | 43,493 | 183,213 | |||||
Consumer Portfolio Segment | Student Loan | With Cosigner | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | 698,291 | ||||||
2019 | 4,527,042 | 3,475,256 | |||||
2018 | 3,311,178 | 4,303,772 | |||||
2017 | 2,869,295 | 3,575,973 | |||||
2016 | 2,515,751 | 3,112,873 | |||||
2015 and Prior | 5,295,854 | 2,579,214 | |||||
2014 and Prior | 3,662,547 | ||||||
Total | $ 19,217,411 | $ 20,709,635 | |||||
Private education loans | 89.00% | 89.00% | |||||
Consumer Portfolio Segment | Student Loan | Without Cosigner | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 126,138 | ||||||
2019 | 676,071 | $ 571,792 | |||||
2018 | 489,070 | 584,601 | |||||
2017 | 353,832 | 427,512 | |||||
2016 | 268,799 | 320,985 | |||||
2015 and Prior | 495,426 | 241,958 | |||||
2014 and Prior | 333,108 | ||||||
Total | $ 2,409,336 | $ 2,479,956 | |||||
Private education loans | 11.00% | 11.00% | |||||
Consumer Portfolio Segment | Student Loan | Cosigners | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 824,429 | ||||||
2019 | 5,203,113 | $ 4,047,048 | |||||
2018 | 3,800,248 | 4,888,373 | |||||
2017 | 3,223,127 | 4,003,485 | |||||
2016 | 2,784,550 | 3,433,858 | |||||
2015 and Prior | 5,791,280 | 2,821,172 | |||||
2014 and Prior | 3,995,655 | ||||||
Total | $ 21,626,747 | $ 23,189,591 | |||||
Total in percent | 100.00% | 100.00% | |||||
Consumer Portfolio Segment | Student Loan | FICO at Original Approval | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 824,429 | ||||||
2019 | 5,203,113 | $ 4,047,048 | |||||
2018 | 3,800,248 | 4,888,373 | |||||
2017 | 3,223,127 | 4,003,485 | |||||
2016 | 2,784,550 | 3,433,858 | |||||
2015 and Prior | 5,791,280 | 2,821,172 | |||||
2014 and Prior | 3,995,655 | ||||||
Total | $ 21,626,747 | $ 23,189,591 | |||||
Total in percent | 100.00% | 100.00% | |||||
Consumer Portfolio Segment | Student Loan | FICO at Original Approval | Less than 670 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 62,064 | ||||||
2019 | 363,345 | $ 283,040 | |||||
2018 | 274,016 | 343,613 | |||||
2017 | 237,052 | 285,747 | |||||
2016 | 197,390 | 236,457 | |||||
2015 and Prior | 446,246 | 203,145 | |||||
2014 and Prior | 313,587 | ||||||
Total | $ 1,580,113 | $ 1,665,589 | |||||
Private Education Loans At Origination | 7.00% | 7.00% | |||||
Consumer Portfolio Segment | Student Loan | FICO at Original Approval | 670-699 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 123,512 | ||||||
2019 | 757,806 | $ 592,376 | |||||
2018 | 555,719 | 714,779 | |||||
2017 | 502,930 | 617,676 | |||||
2016 | 435,075 | 529,575 | |||||
2015 and Prior | 955,404 | 439,050 | |||||
2014 and Prior | 676,569 | ||||||
Total | $ 3,330,446 | $ 3,570,025 | |||||
Private Education Loans At Origination | 15.00% | 16.00% | |||||
Consumer Portfolio Segment | Student Loan | FICO at Original Approval | 700-749 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 268,388 | ||||||
2019 | 1,688,114 | $ 1,319,563 | |||||
2018 | 1,243,712 | 1,601,904 | |||||
2017 | 1,068,091 | 1,325,387 | |||||
2016 | 937,643 | 1,155,253 | |||||
2015 and Prior | 1,933,589 | 944,135 | |||||
2014 and Prior | 1,324,506 | ||||||
Total | $ 7,139,537 | $ 7,670,748 | |||||
Private Education Loans At Origination | 33.00% | 33.00% | |||||
Consumer Portfolio Segment | Student Loan | FICO at Original Approval | Greater than or equal to 750 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 370,465 | ||||||
2019 | 2,393,848 | $ 1,852,069 | |||||
2018 | 1,726,801 | 2,228,077 | |||||
2017 | 1,415,054 | 1,774,675 | |||||
2016 | 1,214,442 | 1,512,573 | |||||
2015 and Prior | 2,456,041 | 1,234,842 | |||||
2014 and Prior | 1,680,993 | ||||||
Total | $ 9,576,651 | $ 10,283,229 | |||||
Private Education Loans At Origination | 45.00% | 44.00% | |||||
Consumer Portfolio Segment | Student Loan | School FICO, Refreshed Amounts | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 824,429 | ||||||
2019 | 5,203,113 | $ 4,047,048 | |||||
2018 | 3,800,248 | 4,888,373 | |||||
2017 | 3,223,127 | 4,003,485 | |||||
2016 | 2,784,550 | 3,433,858 | |||||
2015 and Prior | 5,791,280 | 2,821,172 | |||||
2014 and Prior | 3,995,655 | ||||||
Total | $ 21,626,747 | $ 23,189,591 | |||||
Total in percent | 100.00% | 100.00% | |||||
Consumer Portfolio Segment | Student Loan | School FICO, Refreshed Amounts | Less than 670 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 86,212 | ||||||
2019 | 544,160 | $ 401,979 | |||||
2018 | 442,893 | 515,901 | |||||
2017 | 419,466 | 475,007 | |||||
2016 | 400,833 | 449,568 | |||||
2015 and Prior | 1,029,741 | 419,308 | |||||
2014 and Prior | 717,674 | ||||||
Total | $ 2,923,305 | $ 2,979,437 | |||||
Private Education Loans At Origination | 14.00% | 13.00% | |||||
Consumer Portfolio Segment | Student Loan | School FICO, Refreshed Amounts | 670-699 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 127,503 | ||||||
2019 | 735,546 | $ 582,256 | |||||
2018 | 495,808 | 645,422 | |||||
2017 | 400,096 | 497,497 | |||||
2016 | 324,334 | 397,889 | |||||
2015 and Prior | 651,732 | 308,607 | |||||
2014 and Prior | 451,451 | ||||||
Total | $ 2,735,019 | $ 2,883,122 | |||||
Private Education Loans At Origination | 13.00% | 13.00% | |||||
Consumer Portfolio Segment | Student Loan | School FICO, Refreshed Amounts | 700-749 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 261,585 | ||||||
2019 | 1,633,986 | $ 1,284,867 | |||||
2018 | 1,145,724 | 1,506,849 | |||||
2017 | 952,467 | 1,199,564 | |||||
2016 | 795,350 | 994,309 | |||||
2015 and Prior | 1,542,487 | 772,205 | |||||
2014 and Prior | 1,048,808 | ||||||
Total | $ 6,331,599 | $ 6,806,602 | |||||
Private Education Loans At Origination | 29.00% | 29.00% | |||||
Consumer Portfolio Segment | Student Loan | School FICO, Refreshed Amounts | Greater than or equal to 750 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 349,129 | ||||||
2019 | 2,289,421 | $ 1,777,946 | |||||
2018 | 1,715,823 | 2,220,201 | |||||
2017 | 1,451,098 | 1,831,417 | |||||
2016 | 1,264,033 | 1,592,092 | |||||
2015 and Prior | 2,567,320 | 1,321,052 | |||||
2014 and Prior | 1,777,722 | ||||||
Total | $ 9,636,824 | $ 10,520,430 | |||||
Private Education Loans At Origination | 44.00% | 45.00% | |||||
Consumer Portfolio Segment | Student Loan | Seasoning | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 824,429 | ||||||
2019 | 5,203,113 | $ 4,047,048 | |||||
2018 | 3,800,248 | 4,888,373 | |||||
2017 | 3,223,127 | 4,003,485 | |||||
2016 | 2,784,550 | 3,433,858 | |||||
2015 and Prior | 5,791,280 | 2,821,172 | |||||
2014 and Prior | 3,995,655 | ||||||
Total | $ 21,626,747 | $ 23,189,591 | |||||
Seasoning based on monthly scheduled payments due from 1-12 payments | 25.00% | 23.00% | |||||
Seasoning based on monthly scheduled payments due from 13 - 24 payments | 15.00% | 17.00% | |||||
Seasoning based on monthly scheduled payments due from 25 - 36 payments | 11.00% | 12.00% | |||||
Seasoning based on monthly scheduled payments due from 37 - 48 payments | 9.00% | 10.00% | |||||
Seasoning based on monthly scheduled payments due from more than 48 payments | 13.00% | 13.00% | |||||
Seasoning based on monthly scheduled payments due from not yet in repayment | 27.00% | 25.00% | |||||
Total in percent | 100.00% | 100.00% | |||||
Consumer Portfolio Segment | Student Loan | Seasoning | 1-12 payments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 460,330 | ||||||
2019 | 2,838,628 | $ 2,376,404 | |||||
2018 | 469,314 | 719,158 | |||||
2017 | 529,441 | 705,181 | |||||
2016 | 460,742 | 617,174 | |||||
2015 and Prior | 715,809 | 462,946 | |||||
2014 and Prior | 470,839 | ||||||
Total | 5,474,264 | 5,351,702 | |||||
Consumer Portfolio Segment | Student Loan | Seasoning | 13-24 payments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | 0 | ||||||
2019 | 255,403 | 0 | |||||
2018 | 1,979,761 | 2,588,702 | |||||
2017 | 277,499 | 424,953 | |||||
2016 | 258,606 | 305,078 | |||||
2015 and Prior | 580,426 | 285,513 | |||||
2014 and Prior | 399,905 | ||||||
Total | 3,351,695 | 4,004,151 | |||||
Consumer Portfolio Segment | Student Loan | Seasoning | 25-36 payments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | 0 | ||||||
2019 | 0 | 0 | |||||
2018 | 169,436 | 0 | |||||
2017 | 1,494,597 | 1,862,587 | |||||
2016 | 268,357 | 418,048 | |||||
2015 and Prior | 538,209 | 227,391 | |||||
2014 and Prior | 394,339 | ||||||
Total | 2,470,599 | 2,902,365 | |||||
Consumer Portfolio Segment | Student Loan | Seasoning | 37-48 payments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | 0 | ||||||
2019 | 0 | 0 | |||||
2018 | 0 | 0 | |||||
2017 | 117,409 | 0 | |||||
2016 | 1,194,038 | 1,457,760 | |||||
2015 and Prior | 568,792 | 413,508 | |||||
2014 and Prior | 342,676 | ||||||
Total | 1,880,239 | 2,213,944 | |||||
Consumer Portfolio Segment | Student Loan | Seasoning | More than 48 payments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | 0 | ||||||
2019 | 0 | 0 | |||||
2018 | 0 | 0 | |||||
2017 | 0 | 0 | |||||
2016 | 87,201 | 0 | |||||
2015 and Prior | 2,714,272 | 1,056,229 | |||||
2014 and Prior | 1,973,795 | ||||||
Total | 2,801,473 | 3,030,024 | |||||
Consumer Portfolio Segment | Student Loan | Seasoning | Not yet in repayment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | 364,099 | ||||||
2019 | 2,109,082 | 1,670,644 | |||||
2018 | 1,181,737 | 1,580,513 | |||||
2017 | 804,181 | 1,010,764 | |||||
2016 | 515,606 | 635,798 | |||||
2015 and Prior | 673,772 | 375,585 | |||||
2014 and Prior | 414,101 | ||||||
Total | 5,648,477 | 5,687,405 | |||||
Consumer Portfolio Segment | Student Loan | Loans In Forbearance | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | 4,370 | ||||||
2019 | 51,418 | 21,009 | |||||
2018 | 144,691 | 108,509 | |||||
2017 | 180,617 | 142,341 | |||||
2016 | 186,362 | 146,114 | |||||
2015 and Prior | 422,467 | 127,799 | |||||
2014 and Prior | 168,744 | ||||||
Total | 989,925 | 714,516 | |||||
Consumer Portfolio Segment | Personal Loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | 40 | ||||||
2019 | 346,123 | 400,216 | |||||
2018 | 433,664 | 522,778 | |||||
2017 | 76,188 | 99,581 | |||||
2016 | 787 | 942 | |||||
2015 and Prior | 856,802 | ||||||
Consumer Portfolio Segment | Personal Loans | FICO at Original Approval | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | 40 | ||||||
2019 | 364,849 | 404,776 | |||||
2018 | 455,692 | 540,784 | |||||
2017 | 78,336 | 102,463 | |||||
2016 | 787 | 984 | |||||
Total | $ 899,704 | $ 1,049,007 | |||||
Total in percent | 100.00% | 100.00% | |||||
Consumer Portfolio Segment | Personal Loans | FICO at Original Approval | Less than 670 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 0 | ||||||
2019 | 7,501 | $ 8,315 | |||||
2018 | 26,745 | 32,021 | |||||
2017 | 5,072 | 7,030 | |||||
2016 | 0 | 1 | |||||
Total | $ 39,318 | $ 47,367 | |||||
Private Education Loans At Origination | 4.00% | 4.00% | |||||
Consumer Portfolio Segment | Personal Loans | FICO at Original Approval | 670-699 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 0 | ||||||
2019 | 70,479 | $ 77,746 | |||||
2018 | 128,797 | 152,909 | |||||
2017 | 21,295 | 28,384 | |||||
2016 | 47 | 59 | |||||
Total | $ 220,618 | $ 259,098 | |||||
Private Education Loans At Origination | 25.00% | 25.00% | |||||
Consumer Portfolio Segment | Personal Loans | FICO at Original Approval | 700-749 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 40 | ||||||
2019 | 195,857 | $ 217,642 | |||||
2018 | 215,424 | 255,374 | |||||
2017 | 37,261 | 48,254 | |||||
2016 | 456 | 586 | |||||
Total | $ 449,038 | $ 521,856 | |||||
Private Education Loans At Origination | 50.00% | 50.00% | |||||
Consumer Portfolio Segment | Personal Loans | FICO at Original Approval | Greater than or equal to 750 | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 0 | ||||||
2019 | 91,012 | $ 101,073 | |||||
2018 | 84,726 | 100,480 | |||||
2017 | 14,708 | 18,795 | |||||
2016 | 284 | 338 | |||||
Total | $ 190,730 | $ 220,686 | |||||
Private Education Loans At Origination | 21.00% | 21.00% | |||||
Consumer Portfolio Segment | Personal Loans | Seasoning | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 40 | ||||||
2019 | 364,849 | $ 404,776 | |||||
2018 | 455,692 | 540,784 | |||||
2017 | 78,336 | 102,463 | |||||
2016 | 787 | 984 | |||||
Total | $ 899,704 | $ 1,049,007 | |||||
Seasoning based on monthly scheduled payments due from 1-12 payments | 37.00% | ||||||
Seasoning based on monthly scheduled payments due from 13 - 24 payments | 48.00% | ||||||
Seasoning based on monthly scheduled payments due from 25 - 36 payments | 15.00% | ||||||
Seasoning based on monthly scheduled payments due from 37 - 48 payments | 0.00% | ||||||
Seasoning based on monthly scheduled payments due from more than 48 payments | 0.00% | ||||||
Seasoning based on monthly scheduled payments due from not yet in repayment | 0.00% | ||||||
Total in percent | 100.00% | 100.00% | |||||
Consumer Portfolio Segment | Personal Loans | Seasoning | 1-12 payments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | $ 40 | ||||||
2019 | 331,474 | $ 404,776 | |||||
2018 | 400 | 65,164 | |||||
2017 | 0 | 0 | |||||
2016 | 0 | 0 | |||||
Total | 331,914 | $ 469,940 | |||||
Seasoning based on monthly scheduled payments due from 1-12 payments | 45.00% | ||||||
Consumer Portfolio Segment | Personal Loans | Seasoning | 13-24 payments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | 0 | ||||||
2019 | 33,375 | $ 0 | |||||
2018 | 393,608 | 475,620 | |||||
2017 | 6 | 29,698 | |||||
2016 | 0 | 0 | |||||
Total | 426,989 | $ 505,318 | |||||
Seasoning based on monthly scheduled payments due from 13 - 24 payments | 48.00% | ||||||
Consumer Portfolio Segment | Personal Loans | Seasoning | 25-36 payments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | 0 | ||||||
2019 | 0 | $ 0 | |||||
2018 | 61,684 | 0 | |||||
2017 | 76,924 | 72,765 | |||||
2016 | 0 | 984 | |||||
Total | 138,608 | $ 73,749 | |||||
Seasoning based on monthly scheduled payments due from 25 - 36 payments | 7.00% | ||||||
Consumer Portfolio Segment | Personal Loans | Seasoning | 37-48 payments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | 0 | ||||||
2019 | 0 | $ 0 | |||||
2018 | 0 | 0 | |||||
2017 | 1,406 | 0 | |||||
2016 | 787 | 0 | |||||
Total | 2,193 | $ 0 | |||||
Seasoning based on monthly scheduled payments due from 37 - 48 payments | 0.00% | ||||||
Consumer Portfolio Segment | Personal Loans | Seasoning | More than 48 payments | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | 0 | ||||||
2019 | 0 | $ 0 | |||||
2018 | 0 | 0 | |||||
2017 | 0 | 0 | |||||
2016 | 0 | 0 | |||||
Total | 0 | $ 0 | |||||
Seasoning based on monthly scheduled payments due from more than 48 payments | 0.00% | ||||||
Consumer Portfolio Segment | Personal Loans | Seasoning | Not yet in repayment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | 0 | ||||||
2019 | 0 | $ 0 | |||||
2018 | 0 | 0 | |||||
2017 | 0 | 0 | |||||
2016 | 0 | 0 | |||||
Total | 0 | $ 0 | |||||
Seasoning based on monthly scheduled payments due from not yet in repayment | 0.00% | ||||||
Consumer Portfolio Segment | Personal Loans | Loans In Forbearance | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
2020 | 0 | ||||||
2019 | 12,380 | $ 0 | |||||
2018 | 7,137 | 0 | |||||
2017 | 0 | 0 | |||||
2016 | 0 | 0 | |||||
2015 and Prior | 19,517 | ||||||
Total | 0 | ||||||
Commercial Portfolio Segment | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Current period gross charge-offs, 2020 | (2,350) | ||||||
Current period gross charge-offs, 2019 | $ (58,134) | ||||||
Current period gross charge-offs, 2018 | $ (13,693) | ||||||
Current period gross charge-offs, 2017 | $ (136) | ||||||
Current period gross charge-offs | $ 74,313 | ||||||
Current period recoveries, 2020 | 48 | ||||||
Current period recoveries, 2019 | 3,397 | ||||||
Current period recoveries, 2018 | 1,722 | ||||||
Current period recoveries, 2017 | 39 | ||||||
Current period recoveries | 5,206 | ||||||
Current period net charge-offs, 2020 | $ (2,302) | ||||||
Current period net charge-offs, 2019 | $ (54,737) | ||||||
Current period net charge-offs, 2018 | $ (11,971) | ||||||
Current period net charge-offs, 2017 | $ (97) | ||||||
Current period net charge-offs | $ 69,107 | ||||||
Commercial Portfolio Segment | Personal Loans | |||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||||
Current period gross charge-offs, 2020 | 0 | ||||||
Current period gross charge-offs, 2019 | 2,885 | ||||||
Current period gross charge-offs, 2018 | 13,758 | ||||||
Current period gross charge-offs, 2017 | 2,563 | ||||||
Current period gross charge-offs, 2016 | (41) | ||||||
Current period gross charge-offs | 19,247 | ||||||
Current period recoveries, 2020 | 0 | ||||||
Current period recoveries, 2019 | 15 | ||||||
Current period recoveries, 2018 | 1,127 | ||||||
Current period recoveries, 2017 | 389 | ||||||
Current period recoveries, 2016 | 11 | ||||||
Current period recoveries | 1,542 | ||||||
Current period net charge-offs, 2020 | 0 | ||||||
Current period net charge-offs, 2019 | 2,870 | ||||||
Current period net charge-offs, 2018 | 12,631 | ||||||
Current period net charge-offs, 2017 | 2,174 | ||||||
Current period net charge-offs, 2016 | (30) | ||||||
Current period net charge-offs | $ 17,705 |
Allowance for Loan Losses - Age
Allowance for Loan Losses - Age Analysis of Past Due Loans Delinquencies (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2020 | Mar. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Private Education Loans allowance for losses | $ 1,673,324 | $ 441,912 | $ 441,912 | $ 358,325 | $ 341,121 |
Loans held for investment, net | $ 21,695,851 | $ 24,667,792 | |||
Percentage of Private Education Loans in repayment, 2020 | 55.30% | 58.20% | |||
Percentage of Private Education Loans in repayment, 2019 | 58.50% | 65.40% | |||
Percentage of Private Education Loans in repayment, 2018 | 65.10% | 71.20% | |||
Percentage of Private Education Loans in repayment, 2017 | 69.40% | 77.20% | |||
Percentage of Private Education Loans in repayment, 2016 | 74.80% | 82.20% | |||
Percentage of Private Education Loans in repayment, 2015 and prior | 81.10% | 85.40% | |||
Percentage of Private Education Loans in repayment | 69.30% | 72.40% | |||
Delinquencies as a percentage of Private Education Loans in repayment, 2020 | 0.30% | 0.60% | |||
Delinquencies as a percentage of Private Education Loans in repayment, 2019 | 0.70% | 1.20% | |||
Delinquencies as a percentage of Private Education Loans in repayment, 2018 | 2.10% | 2.40% | |||
Delinquencies as a percentage of Private Education Loans in repayment, 2017 | 3.40% | 3.20% | |||
Delinquencies as a percentage of Private Education Loans in repayment, 2016 | 4.00% | 4.00% | |||
Delinquencies as a percentage of Private Education Loans in repayment, 2015 and prior | 5.00% | 5.00% | |||
Delinquencies as a percentage of Private Education Loans in repayment | 3.20% | 2.80% | |||
Loans in forbearance as a percentage of loans in repayment and forbearance, 2020 | 0.90% | 0.90% | |||
Loans in forbearance as a percentage of loans in repayment and forbearance, 2019 | 1.70% | 3.30% | |||
Loans in forbearance as a percentage of loans in repayment and forbearance, 2018 | 5.50% | 4.80% | |||
Loans in forbearance as a percentage of loans in repayment and forbearance, 2017 | 7.50% | 5.20% | |||
Loans in forbearance as a percentage of loans in repayment and forbearance, 2016 | 8.20% | 5.20% | |||
Loans in forbearance as a percentage of loans in repayment and forbearance, 2015 and prior | 8.30% | 4.70% | |||
Loans in forbearance as a percentage of loans in repayment and forbearance | 6.20% | 4.10% | |||
Student Loan | Consumer Portfolio Segment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
2020 | $ 454,436 | ||||
2019 | 3,020,099 | $ 2,340,221 | |||
2018 | 2,422,162 | 3,159,878 | |||
2017 | 2,162,435 | 2,781,132 | |||
2016 | 1,999,047 | 2,566,815 | |||
2015 and Prior | 4,458,032 | 2,225,721 | |||
2014 and Prior | 3,241,884 | ||||
Total | 14,516,211 | 16,315,651 | |||
Total Private Education Loans in repayment, 2020 | 455,960 | 2,355,395 | |||
Total Private Education Loans in repayment, 2019 | 3,042,613 | 3,199,351 | |||
Total Private Education Loans in repayment, 2018 | 2,473,820 | 2,850,380 | |||
Total Private Education Loans in repayment, 2017 | 2,238,329 | 2,651,946 | |||
Total Private Education Loans in repayment, 2016 | 2,082,582 | 2,317,788 | |||
Total Private Education Loans in repayment, 2015 and prior | 4,695,041 | 3,412,810 | |||
Total Private Education Loans in repayment | 14,988,345 | 16,787,670 | |||
Total Private Education Loans, gross, 2020 | 824,430 | 4,047,048 | |||
Total Private Education Loans, gross, 2019 | 5,203,123 | 4,888,373 | |||
Total Private Education Loans, gross, 2018 | 3,800,248 | 4,003,485 | |||
Total Private Education Loans, gross, 2017 | 3,223,127 | 3,433,858 | |||
Total Private Education Loans, gross, 2016 | 2,784,550 | 2,821,172 | |||
Total Private Education Loans, gross, 2015 and prior | 5,791,269 | 3,995,655 | |||
Total Private Education Loans, gross | 21,626,747 | 23,189,591 | |||
Private Education Loans deferred origination costs and unamortized premium/(discount), 2020 | 4,958 | 23,661 | |||
Private Education Loans deferred origination costs and unamortized premium/(discount), 2019 | 20,484 | 17,699 | |||
Private Education Loans deferred origination costs and unamortized premium/(discount), 2018 | 12,515 | 13,843 | |||
Private Education Loans deferred origination costs and unamortized premium/(discount), 2017 | 9,491 | 12,304 | |||
Private Education Loans deferred origination costs and unamortized premium/(discount), 2016 | 7,960 | 8,564 | |||
Private Education Loans deferred origination costs and unamortized premium/(discount), 2015 | 9,859 | 5,153 | |||
Private Education Loans deferred origination costs and unamortized premium/(discount), Total | 65,267 | 81,224 | |||
Total Private Education Loans, 2020 | 829,388 | 4,070,709 | |||
Total Private Education Loans, 2019 | 5,223,607 | 4,906,072 | |||
Total Private Education Loans, 2018 | 3,812,763 | 4,017,328 | |||
Total Private Education Loans, 2017 | 3,232,618 | 3,446,162 | |||
Total Private Education Loans, 2016 | 2,792,510 | 2,829,736 | |||
Total Private Education Loans, 2015 and Prior | 5,801,128 | 4,000,808 | |||
Total Private Education Loans | 21,692,014 | 23,270,815 | |||
Private Education Loans allowance for losses, 2020 | 59,208 | 3,013 | |||
Private Education Loans allowance for losses, 2019 | 369,890 | 19,105 | |||
Private Education Loans allowance for losses, 2018 | 275,259 | 44,858 | |||
Private Education Loans allowance for losses, 2017 | 234,085 | 71,598 | |||
Private Education Loans allowance for losses, 2016 | 195,324 | 80,974 | |||
Private Education Loans allowance for losses, 2015 and prior | 382,015 | 154,752 | |||
Private Education Loans allowance for losses | 1,515,781 | 374,300 | |||
Private Education Loans, net, 2020 | 770,180 | 4,067,696 | |||
Private Education Loans, net, 2019 | 4,853,717 | 4,886,967 | |||
Private Education Loans, net, 2018 | 3,537,504 | 3,972,470 | |||
Private Education Loans, net, 2017 | 2,998,533 | 3,374,564 | |||
Private Education Loans, net, 2016 | 2,597,186 | 2,748,762 | |||
Private Education Loans, net, 2015 and prior | 5,419,113 | 3,846,056 | |||
Loans held for investment, net | 20,176,233 | 22,896,515 | |||
Current period gross charge-offs, 2020 | 0 | 1,697 | |||
Current period gross charge-offs, 2019 | 1,597 | 14,650 | |||
Current period gross charge-offs, 2018 | 5,241 | 29,119 | |||
Current period gross charge-offs, 2017 | 8,136 | 40,576 | |||
Current period gross charge-offs, 2015 and prior | 0 | 69 | |||
Financing Receivable, Allowance for Credit Loss, Recovery, Originated In Fiscal Year Before Latest Fiscal Year | 92 | 1,016 | |||
Current period recoveries, 2018 | 599 | 2,622 | |||
Financing Receivable, Allowance for Credit Loss, Recovery, Originated Three Years Before Current Fiscal Year | 1,080 | 4,431 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery, Originated In Current Fiscal Year | 0 | 1,628 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery, Originated In Fiscal Year Before Latest Fiscal Year | 1,505 | 13,634 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery, Originated Two Years Before Current Fiscal Year | 4,642 | 26,497 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery, Originated Three Years Before Current Fiscal Year | 7,056 | 36,145 | |||
Current period gross charge-offs, 2016 | 10,284 | 41,141 | |||
Financing Receivable, Allowance for Credit Loss, Recovery, Originated Four Years Before Current Fiscal Year | 1,505 | 5,175 | |||
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery, Originated Four Years Before Current Fiscal Year | 8,779 | 35,966 | |||
Student Loan | Consumer Portfolio Segment | Loan delinquency 31-60 days | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
2020 | 1,524 | ||||
2019 | 15,771 | 11,152 | |||
2018 | 27,690 | 26,096 | |||
2017 | 40,349 | 44,382 | |||
2016 | 43,630 | 51,656 | |||
2015 and Prior | 125,661 | 54,559 | |||
2014 and Prior | 100,206 | ||||
Total | 254,625 | 288,051 | |||
Student Loan | Consumer Portfolio Segment | Loan delinquency 61-90 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
2020 | 0 | ||||
2019 | 4,760 | 3,087 | |||
2018 | 15,016 | 9,527 | |||
2017 | 22,286 | 17,048 | |||
2016 | 24,645 | 21,161 | |||
2015 and Prior | 69,189 | 24,562 | |||
2014 and Prior | 45,917 | ||||
Total | 135,896 | 121,302 | |||
Student Loan | Consumer Portfolio Segment | Loan delinquency greater than 90 days | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
2020 | 0 | ||||
2019 | 1,983 | 935 | |||
2018 | 8,952 | 3,850 | |||
2017 | 13,259 | 7,818 | |||
2016 | 15,260 | 12,314 | |||
2015 and Prior | 42,159 | 12,946 | |||
2014 and Prior | 24,803 | ||||
Total | 81,613 | 62,666 | |||
Student Loan | Loans In-School/Grace/Deferment | Consumer Portfolio Segment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
2020 | 364,100 | ||||
2019 | 2,109,092 | 1,670,644 | |||
2018 | 1,181,737 | 1,580,513 | |||
2017 | 804,181 | 1,010,764 | |||
2016 | 515,606 | 635,798 | |||
2015 and Prior | 673,761 | 375,585 | |||
2014 and Prior | 414,101 | ||||
Total | 5,648,477 | 5,687,405 | |||
Student Loan | Loans In Forbearance | Consumer Portfolio Segment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
2020 | 4,370 | ||||
2019 | 51,418 | 21,009 | |||
2018 | 144,691 | 108,509 | |||
2017 | 180,617 | 142,341 | |||
2016 | 186,362 | 146,114 | |||
2015 and Prior | 422,467 | 127,799 | |||
2014 and Prior | 168,744 | ||||
Total | 989,925 | 714,516 | |||
Personal Loans | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
Total | 899,704 | 1,049,007 | |||
Private Education Loans allowance for losses | 152,673 | 65,877 | $ 65,877 | ||
Loans held for investment, net | 747,444 | 983,643 | |||
Personal Loans | Consumer Portfolio Segment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
2020 | 40 | ||||
2019 | 346,123 | 400,216 | |||
2018 | 433,664 | 522,778 | |||
2017 | 76,188 | 99,581 | |||
2016 | 787 | 942 | |||
2015 and Prior | 856,802 | ||||
Total Private Education Loans in repayment, 2020 | 40 | 404,776 | |||
Total Private Education Loans in repayment, 2019 | 352,469 | 540,784 | |||
Total Private Education Loans in repayment, 2018 | 448,556 | 102,464 | |||
Total Private Education Loans in repayment, 2017 | 78,335 | 983 | |||
Total Private Education Loans in repayment, 2016 | 787 | ||||
Total Private Education Loans in repayment | 880,187 | 1,049,007 | |||
Total Private Education Loans, gross, 2020 | 40 | 404,776 | |||
Total Private Education Loans, gross, 2019 | 364,849 | 540,784 | |||
Total Private Education Loans, gross, 2018 | 455,693 | 102,464 | |||
Total Private Education Loans, gross, 2017 | 78,335 | 983 | |||
Total Private Education Loans, gross, 2016 | 787 | ||||
Total Private Education Loans, gross | 899,704 | 1,049,007 | |||
Private Education Loans deferred origination costs and unamortized premium/(discount), 2020 | 0 | 380 | |||
Private Education Loans deferred origination costs and unamortized premium/(discount), 2019 | 335 | 133 | |||
Private Education Loans deferred origination costs and unamortized premium/(discount), 2018 | 78 | 0 | |||
Private Education Loans deferred origination costs and unamortized premium/(discount), 2017 | 0 | 0 | |||
Private Education Loans deferred origination costs and unamortized premium/(discount), 2016 | 0 | ||||
Private Education Loans deferred origination costs and unamortized premium/(discount), Total | 413 | 513 | |||
Total Private Education Loans, 2020 | 40 | 405,156 | |||
Total Private Education Loans, 2019 | 365,184 | 540,917 | |||
Total Private Education Loans, 2018 | 455,771 | 102,464 | |||
Total Private Education Loans, 2017 | 78,335 | 983 | |||
Total Private Education Loans, 2016 | 787 | ||||
Total Private Education Loans | 900,117 | 1,049,520 | |||
Private Education Loans allowance for losses, 2020 | 6 | 21,589 | |||
Private Education Loans allowance for losses, 2019 | 51,280 | 37,492 | |||
Private Education Loans allowance for losses, 2018 | 89,194 | 6,722 | |||
Private Education Loans allowance for losses, 2017 | 12,110 | 74 | |||
Private Education Loans allowance for losses, 2016 | 83 | ||||
Private Education Loans allowance for losses | 152,673 | 65,877 | |||
Private Education Loans, net, 2020 | 34 | 383,567 | |||
Private Education Loans, net, 2019 | 313,904 | 503,425 | |||
Private Education Loans, net, 2018 | 366,577 | 95,742 | |||
Private Education Loans, net, 2017 | 66,225 | 909 | |||
Private Education Loans, net, 2016 | 704 | ||||
Loans held for investment, net | $ 747,444 | $ 983,643 | |||
Percentage of Private Education Loans in repayment, 2020 | 0.00% | 1.10% | |||
Percentage of Private Education Loans in repayment, 2019 | 1.80% | 3.30% | |||
Percentage of Private Education Loans in repayment, 2018 | 3.30% | 2.80% | |||
Percentage of Private Education Loans in repayment, 2017 | 2.70% | 4.20% | |||
Percentage of Private Education Loans in repayment, 2016 | 0.00% | ||||
Percentage of Private Education Loans in repayment | 2.60% | 2.40% | |||
Loans current, percentage | 97.40% | 97.60% | |||
Loans In Repayment In Percentage | 100.00% | 100.00% | |||
Loans current | $ 1,023,517 | ||||
Personal Loans | Consumer Portfolio Segment | Loan delinquency 31-60 days | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
2020 | $ 0 | ||||
2019 | 3,321 | 2,164 | |||
2018 | 7,448 | 6,213 | |||
2017 | 810 | 1,045 | |||
2016 | 0 | $ 13 | |||
2015 and Prior | $ 11,579 | ||||
Loans delinquent | 1.30% | 0.90% | |||
Loans delinquent | $ 9,435 | ||||
Personal Loans | Consumer Portfolio Segment | Loan delinquency 61-90 | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
2020 | $ 0 | ||||
2019 | 991 | 1,074 | |||
2018 | 2,663 | 5,148 | |||
2017 | 701 | 943 | |||
2016 | 0 | $ 7 | |||
2015 and Prior | $ 4,355 | ||||
Loans delinquent | 0.50% | 0.70% | |||
Loans delinquent | $ 7,172 | ||||
Personal Loans | Consumer Portfolio Segment | Loan delinquency greater than 90 days | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
2020 | $ 0 | ||||
2019 | 2,034 | 1,322 | |||
2018 | 4,781 | 6,645 | |||
2017 | 636 | 895 | |||
2016 | 0 | $ 21 | |||
2015 and Prior | $ 7,451 | ||||
Loans delinquent | 0.80% | 0.80% | |||
Loans delinquent | $ 8,883 | ||||
Personal Loans | Loans In Forbearance | Consumer Portfolio Segment | |||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||||
2020 | $ 0 | ||||
2019 | 12,380 | 0 | |||
2018 | 7,137 | 0 | |||
2017 | 0 | 0 | |||
2016 | 0 | 0 | |||
2015 and Prior | $ 19,517 | ||||
Total | $ 0 |
Allowance for Loan Losses - Acc
Allowance for Loan Losses - Accrued Interest Receivable (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Total Interest Receivable | $ 1,258,751 | $ 1,366,158 |
Greater Than 90 Days Past Due | 3,127 | 2,390 |
Allowance for Uncollectible Interest | $ 3,479 | $ 5,309 |
Deposits - Summary of Total Dep
Deposits - Summary of Total Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Banking and Thrift [Abstract] | ||
Deposits - interest bearing | $ 24,443,963 | $ 24,282,906 |
Deposits - non-interest bearing | 1,651 | 1,077 |
Total deposits | $ 24,445,614 | $ 24,283,983 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |||
Deposits | $ 24,445,614 | $ 24,283,983 | |
Brokered deposits | 13,700,000 | 13,800,000 | |
Retail and other deposits | 10,700,000 | 10,500,000 | |
Stable interest-bearing deposits, total | 6,800,000 | 6,800,000 | |
Brokered deposit placement fee | 5,000 | $ 4,000 | |
Third party broker fees paid | 2,000 | $ 1,000 | |
Deposits exceeding FDIC insurance limits | 1,100,000 | 963,000 | |
Accrued interest on deposits | $ 82,000 | $ 68,000 |
Deposits - Interest Bearing Dep
Deposits - Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amount | ||
Money market | $ 9,561,715 | $ 9,616,547 |
Savings | 752,357 | 718,616 |
Certificates of deposit | 14,129,891 | 13,947,743 |
Deposits - interest bearing | $ 24,443,963 | $ 24,282,906 |
Qtr.-End Weighted Average Stated Rate | ||
Money market | 1.74% | 2.04% |
Savings | 1.44% | 1.71% |
Certificates of deposit | 1.95% | 2.44% |
Borrowings - Company Borrowings
Borrowings - Company Borrowings (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Instrument [Line Items] | ||
Short-Term | $ 0 | $ 289,230 |
Long-Term | 4,708,036 | 4,354,037 |
Total | 4,708,036 | 4,643,267 |
Unsecured borrowings | ||
Debt Instrument [Line Items] | ||
Short-Term | 0 | 0 |
Long-Term | 198,362 | 198,159 |
Total | 198,362 | 198,159 |
Secured borrowings | ||
Debt Instrument [Line Items] | ||
Short-Term | 0 | 289,230 |
Long-Term | 4,509,674 | 4,155,878 |
Total | 4,509,674 | 4,445,108 |
Secured borrowings | Private Education Loan securitization | ||
Debt Instrument [Line Items] | ||
Short-Term | 0 | 0 |
Long-Term | 4,509,674 | 4,155,878 |
Total | 4,509,674 | 4,155,878 |
Secured borrowings | Private Education Loan securitization | Fixed-rate | ||
Debt Instrument [Line Items] | ||
Short-Term | 0 | 0 |
Long-Term | 2,912,346 | 2,629,902 |
Total | 2,912,346 | 2,629,902 |
Secured borrowings | Private Education Loan securitization | Variable-rate | ||
Debt Instrument [Line Items] | ||
Short-Term | 0 | 0 |
Long-Term | 1,597,328 | 1,525,976 |
Total | 1,597,328 | 1,525,976 |
Secured borrowings | Secured Borrowing Facility | ||
Debt Instrument [Line Items] | ||
Short-Term | 0 | 289,230 |
Long-Term | 0 | 0 |
Total | $ 0 | $ 289,230 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | Feb. 19, 2020 | Feb. 12, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Feb. 20, 2019 |
Line of Credit Facility [Line Items] | |||||
Short-term borrowings | $ 0 | $ 289,230,000 | |||
Unsecured offering issued | $ 636,000,000 | $ 1,110,000,000 | |||
Estimated weighted average life of student loans | 5 years 3 months 18 days | 5 years 4 months 24 days | |||
Uncommitted federal funds | $ 125,000,000 | ||||
Lendable value of collateral | 2,400,000,000 | $ 3,200,000,000 | |||
Unsecured borrowings | |||||
Line of Credit Facility [Line Items] | |||||
Short-term borrowings | 0 | 0 | |||
Private Education Loans 2019 Term A | |||||
Line of Credit Facility [Line Items] | |||||
Total loan amount securitized at inception | $ 636,000,000 | ||||
Amount of loan securitization sold to third parties | $ 636,000,000 | ||||
Ownership interest percentage | 100.00% | ||||
Proceeds from loan securitization sold to third parties | $ 634,000,000 | ||||
Loans pledged as collateral | 665,000,000 | ||||
Principal amount of collateral | 622,000,000 | ||||
Capitalized interest | 43,000,000 | ||||
Class A and B Notes | |||||
Line of Credit Facility [Line Items] | |||||
Estimated weighted average life of student loans | 4 years 2 months 4 days | ||||
Class A and B Notes | London Interbank Offered Rate (LIBOR) | |||||
Line of Credit Facility [Line Items] | |||||
Basis spread on variable rate | 0.88% | ||||
Commercial Paper | ABCP borrowings | |||||
Line of Credit Facility [Line Items] | |||||
Private asset backed commercial paper education loan funding facility | $ 2,000,000,000 | $ 750,000,000 | |||
Ownership interest percentage in residual interest in ABCP facility | 100.00% | ||||
Short-term borrowings | $ 0 | $ 289,000,000 |
Borrowings - Securitizations (D
Borrowings - Securitizations (Details) - USD ($) | 1 Months Ended | ||||
Feb. 29, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Mar. 31, 2020 | Dec. 31, 2019 | |
Securities Financing Transaction [Line Items] | |||||
Total Issued | $ 636,000,000 | $ 1,110,000,000 | |||
Total loan and accrued interest amount securitized at inception on-balance sheet term securitization | $ 676,089,000 | $ 1,208,963,000 | |||
2019-A | |||||
Securities Financing Transaction [Line Items] | |||||
Total Issued | $ 453,000,000 | ||||
Basis spread on variable rate | 0.92% | ||||
Weighted Average Life | 4 years 3 months 3 days | ||||
2019-B | |||||
Securities Financing Transaction [Line Items] | |||||
Total Issued | $ 657,000,000 | ||||
Basis spread on variable rate | 1.01% | ||||
Weighted Average Life | 4 years 4 months 28 days | ||||
2020-A | |||||
Securities Financing Transaction [Line Items] | |||||
Total Issued | $ 636,000,000 | ||||
Basis spread on variable rate | 0.88% | ||||
Weighted Average Life | 4 years 2 months 4 days |
Borrowings - Financing VIEs (De
Borrowings - Financing VIEs (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Debt Outstanding | |||
Short-Term | $ 0 | $ 289,230 | |
Long-Term | 4,708,036 | 4,354,037 | |
Total | 4,708,036 | 4,643,267 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Restricted Cash | 189,439 | 156,883 | $ 153,552 |
Other Assets | 41,812 | 29,398 | |
Total assets | 31,760,895 | 32,686,479 | |
Variable Interest Entity, Primary Beneficiary | |||
Debt Outstanding | |||
Short-Term | 0 | 289,230 | |
Long-Term | 4,509,674 | 4,155,878 | |
Total | 4,509,674 | 4,445,108 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Loans | 5,594,488 | 5,586,652 | |
Restricted Cash | 181,862 | 154,563 | |
Other Assets | 372,630 | 357,005 | |
Total assets | 6,148,980 | 6,098,220 | |
Variable Interest Entity, Primary Beneficiary | Private Education Loan securitization | |||
Debt Outstanding | |||
Short-Term | 0 | 0 | |
Long-Term | 4,509,674 | 4,155,878 | |
Total | 4,509,674 | 4,155,878 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Loans | 5,594,488 | 5,246,986 | |
Restricted Cash | 172,546 | 145,760 | |
Other Assets | 370,795 | 333,173 | |
Total assets | 6,137,829 | 5,725,919 | |
Variable Interest Entity, Primary Beneficiary | Secured Borrowing Facility | |||
Debt Outstanding | |||
Short-Term | 0 | 289,230 | |
Long-Term | 0 | 0 | |
Total | 0 | 289,230 | |
Carrying Amount of Assets Securing Debt Outstanding | |||
Loans | 0 | 339,666 | |
Restricted Cash | 9,316 | 8,803 | |
Other Assets | 1,835 | 23,832 | |
Total assets | $ 11,151 | $ 372,301 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Derivative [Line Items] | ||
Notional value | $ 9,800,000,000 | |
Net derivatives | 96,000,000 | $ 52,000,000 |
Estimated accumulated other comprehensive income to be reclassified in next 12 months | 18,000,000 | |
Cash collateral held relative to derivative exposure | 0 | 0 |
Cash collateral pledged | 93,000,000 | $ 53,000,000 |
CHICAGO MERCANTILE EXCHANGE | ||
Derivative [Line Items] | ||
Notional value | $ 9,300,000,000 | |
Percent of total notional derivative contracts | 95.20% | |
Amount of variation margin included as settlement | $ (268,000,000) | |
London Clearing House | ||
Derivative [Line Items] | ||
Notional value | $ 500,000,000 | |
Percent of total notional derivative contracts | 4.80% | |
Amount of variation margin included as settlement | $ 24,000,000 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Impact of Derivatives on Consolidated Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Total net derivatives | $ 96,000 | $ 52,000 |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | 3,653 | 715 |
Derivative Liabilities | (275) | (1,164) |
Total net derivatives | 3,378 | (449) |
Interest rate swaps | Trading | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | 751 | 0 |
Derivative Liabilities | 0 | (268) |
Total net derivatives | 751 | (268) |
Interest rate swaps | Cash Flow | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | 0 | 715 |
Derivative Liabilities | (275) | 0 |
Total net derivatives | (275) | 715 |
Interest rate swaps | Fair Value | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Derivative instruments | 2,902 | 0 |
Derivative Liabilities | 0 | (896) |
Total net derivatives | $ 2,902 | $ (896) |
Derivative Financial Instrume_5
Derivative Financial Instruments - Offsetting Assets and Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Other Liabilities | ||
Cash collateral pledged | $ 93,000 | $ 53,000 |
Other Assets | ||
Other Assets | ||
Gross position | 3,653 | 715 |
Impact of master netting agreement | (222) | (519) |
Derivative values with impact of master netting agreements (as carried on balance sheet) | 3,431 | 196 |
Cash collateral pledged | 92,969 | 52,564 |
Net position | 96,400 | 52,760 |
Other Liabilities | ||
Other Liabilities | ||
Gross position | (275) | (1,164) |
Impact of master netting agreement | 222 | 519 |
Derivative values with impact of master netting agreements (as carried on balance sheet) | (53) | (645) |
Cash collateral pledged | 0 | 0 |
Net position | $ (53) | $ (645) |
Derivative Financial Instrume_6
Derivative Financial Instruments - Notional Values (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Notional values | $ 9,800,000 | |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | 9,763,509 | $ 9,926,864 |
Interest rate swaps | Trading | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | 3,452,241 | 3,744,917 |
Interest rate swaps | Cash Flow Hedges | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | 1,117,945 | 1,150,518 |
Interest rate swaps | Fair Value Hedges | Designated as Hedging Instrument | ||
Derivatives, Fair Value [Line Items] | ||
Notional values | $ 5,193,323 | $ 5,031,429 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Schedule of Hedged Items Recorded in Statement of Financial Position (Details) - Deposits - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Carrying Amount of the Hedged Assets/(Liabilities) | $ (5,391,335) | $ (5,085,426) |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets/(Liabilities) | $ (206,396) | $ (63,148) |
Derivative Financial Instrume_8
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flow Hedges | ||
Interest expense | $ 174,817 | $ 164,172 |
Trading | ||
Total | 46,342 | 1,573 |
Designated as Hedging Instrument | ||
Fair Value Hedges | ||
Interest recognized on derivatives | 4,623 | (3,827) |
Hedged items recorded in interest expense | (143,248) | (23,986) |
Derivatives recorded in interest expense | 144,183 | 23,888 |
Trading | ||
Total | 5,558 | (3,925) |
Designated as Hedging Instrument | Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent | Reclassification out of Accumulated Other Comprehensive Income | ||
Cash Flow Hedges | ||
Interest expense | (1,528) | 1,296 |
Trading | ||
Trading | ||
Change in fair value of future interest payments recorded in earnings | 42,312 | 4,202 |
Total | $ 42,312 | $ 4,202 |
Derivative Financial Instrume_9
Derivative Financial Instruments - Impact of Derivatives on Consolidated Statement of Changes in Stockholders' Equity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Amount of loss recognized in other comprehensive income (loss) | $ (47,222) | $ (12,821) |
Less: amount of gain (loss) reclassified in interest expense | (1,528) | 1,296 |
Total change in other comprehensive income (loss) for unrealized gains (losses) on derivatives, before income tax (expense) benefit | $ (45,694) | $ (14,117) |
Stockholders' Equity - Common S
Stockholders' Equity - Common Stock Repurchased (Details) - USD ($) $ / shares in Units, $ in Millions | Mar. 10, 2020 | Jan. 23, 2019 | Mar. 31, 2020 | Mar. 31, 2019 |
Equity [Abstract] | ||||
Common stock repurchased under repurchase program (in shares) | 44,900,000 | 3,000,000 | 47,736,847 | 5,435,476 |
Average purchase price per share (in usd per share) | $ 9.66 | $ 11.04 | ||
Shares repurchased related to employee stock-based compensation plans (in shares) | 1,105,119 | 1,289,391 | ||
Average purchase price per share (in usd per share) | $ 10.98 | $ 10.95 | ||
Common shares issued (in shares) | 2,837,562 | 3,470,664 | ||
Remaining authority under the share repurchase program | $ 75 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Details) - USD ($) | Mar. 10, 2020 | Jan. 23, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Mar. 31, 2020 | Mar. 31, 2019 | Jan. 22, 2020 |
Class of Stock [Line Items] | |||||||
Common stock dividend (in usd per share) | $ 0.03 | $ 0.03 | |||||
Aggregate purchase price (not to exceed) | $ 200,000,000 | $ 600,000,000 | |||||
Common stock repurchased (in shares) | 44,900,000 | 3,000,000 | 47,736,847 | 5,435,476 | |||
Common stock repurchased, price | $ 33,000,000 | $ 60,000,000 | |||||
Common stock repurchased, amount | $ 525,000,000 | ||||||
Common Stock | |||||||
Class of Stock [Line Items] | |||||||
Common stock closing price (in usd per share) | $ 7.19 | $ 7.19 |
Earnings per Common Share (Deta
Earnings per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator: | ||
Net income | $ 362,173 | $ 158,189 |
Preferred stock dividends | 3,464 | 4,468 |
Net income attributable to SLM Corporation common stock | $ 358,709 | $ 153,721 |
Denominator: | ||
Weighted average shares used to compute basic EPS (in shares) | 409,786,000 | 434,574,000 |
Effect of dilutive securities: | ||
Dilutive effect of stock options, restricted stock and restricted stock units and Employee Stock Purchase Plan (ESPP) (in shares) | 2,969,000 | 3,674,000 |
Weighted average shares used to compute diluted EPS (in shares) | 412,755,000 | 438,248,000 |
Basic earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.88 | $ 0.35 |
Diluted earnings per common share attributable to SLM Corporation (in dollars per share) | $ 0.87 | $ 0.35 |
Antidilutive securities excluded from computation of earnings per share (in shares) | 2,000,000 |
Fair Value Measurements - Valua
Fair Value Measurements - Valuation of Financial Instruments That are Marked-to-Market on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Estimated Fair Value | $ 614,582 | $ 487,669 |
Total earning assets | 1,754,833 | |
Fair Value Measurements on a Recurring Basis | ||
Assets | ||
Estimated Fair Value | 614,582 | 487,669 |
Derivative instruments | 3,653 | 715 |
Total earning assets | 618,235 | 488,384 |
Liabilities | ||
Derivative instruments | (275) | (1,164) |
Fair Value Measurements on a Recurring Basis | Level 1 | ||
Assets | ||
Estimated Fair Value | 0 | 0 |
Derivative instruments | 0 | 0 |
Total earning assets | 0 | 0 |
Liabilities | ||
Derivative instruments | 0 | 0 |
Fair Value Measurements on a Recurring Basis | Level 2 | ||
Assets | ||
Estimated Fair Value | 538,742 | 487,669 |
Derivative instruments | 3,653 | 715 |
Total earning assets | 542,395 | 488,384 |
Liabilities | ||
Derivative instruments | (275) | (1,164) |
Fair Value Measurements on a Recurring Basis | Level 3 | ||
Assets | ||
Estimated Fair Value | 75,840 | 0 |
Derivative instruments | 0 | 0 |
Total earning assets | 75,840 | 0 |
Liabilities | ||
Derivative instruments | $ 0 | $ 0 |
Fair Value Measurements - Fair
Fair Value Measurements - Fair Values of Financial Assets and Liabilities, Including Derivative Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Earning assets | ||
Trading investments | $ 11,360 | $ 0 |
Accrued interest receivable, difference | 10,226 | 98,746 |
Tax indemnification receivable | 286,006 | 88,844 |
Total earning assets | 1,754,833 | |
Total earning assets, difference | 2,265,887 | |
Interest-bearing liabilities | ||
Long-term borrowings, difference | 135,411 | (80,286) |
Total interest-bearing liabilities, difference | 15,803 | (226,078) |
Excess of net asset fair value over carrying value | 1,770,636 | 2,039,809 |
Money-market and savings accounts | ||
Interest-bearing liabilities | ||
Deposits, difference | (46,898) | (28,528) |
Certificates of deposit | ||
Interest-bearing liabilities | ||
Deposits, difference | (72,710) | (117,264) |
Fair Value | ||
Earning assets | ||
Cash and cash equivalents | 7,292,929 | 5,563,877 |
Trading investments | 11,360 | 0 |
Available-for-sale investments | 614,582 | 487,669 |
Accrued interest receivable | 1,291,972 | 1,491,471 |
Tax indemnification receivable | 27,727 | 27,558 |
Derivative instruments | 3,653 | 715 |
Total earning assets | 32,682,681 | 34,406,223 |
Interest-bearing liabilities | ||
Short-term borrowings | 0 | 289,230 |
Long-term borrowings | 4,572,625 | 4,434,323 |
Accrued interest payable | 93,768 | 75,158 |
Derivative instruments | 275 | 1,164 |
Total interest-bearing liabilities | 29,230,239 | 29,228,573 |
Fair Value | Money-market and savings accounts | ||
Interest-bearing liabilities | ||
Deposits | 10,360,970 | 10,363,691 |
Fair Value | Certificates of deposit | ||
Interest-bearing liabilities | ||
Deposits | 14,202,601 | 14,065,007 |
Carrying Value | ||
Earning assets | ||
Cash and cash equivalents | 7,292,929 | 5,563,877 |
Trading investments | 11,360 | 0 |
Available-for-sale investments | 614,582 | 487,669 |
Accrued interest receivable | 1,281,746 | 1,392,725 |
Tax indemnification receivable | 27,727 | 27,558 |
Derivative instruments | 3,653 | 715 |
Total earning assets | 30,927,848 | 32,140,336 |
Interest-bearing liabilities | ||
Short-term borrowings | 0 | 289,230 |
Long-term borrowings | 4,708,036 | 4,354,037 |
Accrued interest payable | 93,768 | 75,158 |
Derivative instruments | 275 | 1,164 |
Total interest-bearing liabilities | 29,246,042 | 29,002,495 |
Carrying Value | Money-market and savings accounts | ||
Interest-bearing liabilities | ||
Deposits | 10,314,072 | 10,335,163 |
Carrying Value | Certificates of deposit | ||
Interest-bearing liabilities | ||
Deposits | 14,129,891 | 13,947,743 |
Private Education Loans | ||
Earning assets | ||
Loans held for investment, net, difference | 1,650,067 | 2,092,426 |
Private Education Loans | Fair Value | ||
Earning assets | ||
Loans held for investment, net | 21,826,300 | 24,988,941 |
Private Education Loans | Carrying Value | ||
Earning assets | ||
Loans held for investment, net | 20,176,233 | 22,896,515 |
FFELP Loans | ||
Earning assets | ||
Loans held for investment, net, difference | (9,322) | 11,239 |
FFELP Loans | Fair Value | ||
Earning assets | ||
Loans held for investment, net | 755,449 | 795,055 |
FFELP Loans | Carrying Value | ||
Earning assets | ||
Loans held for investment, net | 764,771 | 783,816 |
Personal Loans | ||
Earning assets | ||
Loans held for investment, net, difference | 104,306 | 63,476 |
Personal Loans | Fair Value | ||
Earning assets | ||
Loans held for investment, net | 851,750 | 1,047,119 |
Personal Loans | Carrying Value | ||
Earning assets | ||
Loans held for investment, net | 747,444 | 983,643 |
Credit Cards | ||
Earning assets | ||
Loans held for investment, net, difference | (444) | 0 |
Credit Cards | Fair Value | ||
Earning assets | ||
Loans held for investment, net | 6,959 | 3,818 |
Credit Cards | Carrying Value | ||
Earning assets | ||
Loans held for investment, net | $ 7,403 | $ 3,818 |
Regulatory Capital - Additional
Regulatory Capital - Additional Information (Details) | Jan. 01, 2020USD ($) | Mar. 31, 2020USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Allowance for credit losses on loans and leases | $ 441,912,000 | $ 1,673,324,000 | $ 358,325,000 | $ 441,912,000 | $ 341,121,000 |
Allowance for credit losses on unfunded commitments | 2,481,000 | ||||
Reduction to retained earnings | $ 1,850,512,000 | ||||
Dividends | $ 541,000,000 | $ 85,000,000 | |||
Accounting Standards Update 2016-13 | |||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||||
Period of deferment | 2 | ||||
Amount deferred | 25.00% | ||||
Allowance for credit losses on loans and leases | $ 1,100,000,000 | ||||
Allowance for credit losses on unfunded commitments | 116,000,000 | ||||
Deferred tax assets | 306,000,000 | ||||
Reduction to retained earnings | $ 953,000,000 |
Regulatory Capital - U.S. Basel
Regulatory Capital - U.S. Basel III Regulatory Requirements (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Actual Amount | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | $ 3,112,763 | $ 3,264,309 |
Tier 1 Capital (to Risk-Weighted Assets) | 3,112,763 | 3,264,309 |
Total Capital (to Risk-Weighted Assets) | 3,428,154 | 3,600,668 |
Tier 1 Capital (to Average Assets) | $ 3,112,763 | $ 3,264,309 |
Actual Ratio | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | 12.40% | 12.20% |
Tier 1 Capital (to Risk-Weighted Assets) | 12.40% | 12.20% |
Total Capital (to Risk-Weighted Assets) | 13.70% | 13.40% |
Tier 1 Capital (to Average Assets) | 9.40% | 10.20% |
Advanced Approach | ||
U.S. Basel III Regulatory Requirements, Amount | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | $ 1,757,168 | $ 1,876,050 |
Tier 1 Capital (to Risk-Weighted Assets) | 2,133,704 | 2,278,060 |
Total Capital (to Risk-Weighted Assets) | 2,635,752 | 2,814,074 |
Tier 1 Capital (to Average Assets) | $ 1,326,107 | $ 1,284,642 |
U.S. Basel III Regulatory Requirements, Ratio | ||
Common Equity Tier 1 Capital (to Risk-Weighted Assets) | 7.00% | 7.00% |
Tier 1 Capital (to Risk-Weighted Assets) | 8.50% | 8.50% |
Total Capital (to Risk-Weighted Assets) | 10.50% | 10.50% |
Tier 1 Capital (to Average Assets) | 4.00% | 4.00% |
Commitments, Contingencies an_2
Commitments, Contingencies and Guarantees (Details) $ in Millions | Mar. 31, 2020USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Contractual obligation | $ 450 |
Other liabilities reserve | $ 30 |
Uncategorized Items - slm-20200
Label | Element | Value |
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (952,639,000) |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (952,639,000) |