Sallie Mae 2001 Annual Report Download

Consolidated Statements of Income

(Dollars and shares in thousands, except per share amounts)

Years ended December 31,

2001 2000 1999

Interest income:

Student loans $2,527,818 $2,854,231 $2,426,506

Warehousing advances 43,401 56,410 67,828

Academic facilities financings 53,485 66,709 74,358

Investments 372,827 501,309 239,883

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Total interest income 2,997,531 3,478,659 2,808,575

Interest expense 2,124,115 2,836,871 2,114,785

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Net interest income 873,416 641,788 693,790

Less: provision for losses 65,991 32,119 34,358

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Net interest income after provision for losses 807,425 609,669 659,432

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Other income:

Gains on student loan securitizations 75,199 91,846 35,280

Servicing and securitization revenue 634,320 295,646 288,584

(Losses) gains on sales of securities (178,287) 18,622 43,001

Guarantor servicing fees 255,171 128,375 —

Derivative market value adjustment (452,425) — —

Other 183,639 153,143 83,925

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Total other income 517,617 687,632 450,790

Operating expenses 707,654 532,710 358,570

Integration charge — 53,000 —

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Income before income taxes and minority interest

in net earnings of subsidiary 617,388 711,591 751,652

Income taxes 223,322 235,880 240,127

Minority interest in net earnings of subsidiary 10,070 10,694 10,694

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Net income 383,996 465,017 500,831

Preferred stock dividends 11,501 11,522 1,438

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Net income attributable to common stock $ 372,495 $ 453,495 $ 499,393

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Basic earnings per common share $ 2.34 $ 2.84 $ 3.11

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Average common shares outstanding 159,078 159,482 160,577

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Diluted earnings per common share $ 2.28 $ 2.76 $ 3.06

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Average common and common equivalent shares outstanding 163,400 164,355 163,158

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The financial statements should be read in conjunction with the financial statements and notes thereto included in the Company’s Form 10-K to the

Securities and Exchange Commission.

*USA Education, Inc., will change its name to SLM Corporation effective May 17, 2002.

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USA Education, Inc.*

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