Sallie Mae 2005 Annual Report Download - page 128

See accompanying notes to consolidated financial statements.
F-6
SLM CORPORATION
CONSOLIDATED STATEMENTS OF INCOME
(Dollars and shares in thousands, except per share amounts)
Years Ended December 31,
2005 2004 2003
Interest income:
FFELP Staffordand OtherStudent Loans................................. $1,014,851 $ 725,619 $ 655,519
Consolidation Loans.................................................. 2,500,008 1,364,777 1,157,849
Private Education Loans............................................... 633,884 335,451 307,477
Other loans ......................................................... 84,664 74,289 76,740
Cash and investments ................................................. 276,756 232,859 150,690
Total interest income ................................................... 4,510,163 2,732,995 2,348,275
Interest expense:
Short-term debt...................................................... 177,597 206,151 394,109
Long-term debt...................................................... 2,881,121 1,227,545 627,797
Total interest expense ................................................... 3,058,718 1,433,696 1,021,906
Net interest income ..................................................... 1,451,445 1,299,299 1,326,369
Less: provisions for losses ................................................ 203,006 111,066 147,480
Net interest income after provisions for losses................................ 1,248,439 1,188,233 1,178,889
Other income:
Gains on student loan securitizations ..................................... 552,546 375,384 744,289
Servicing and securitization revenue...................................... 356,730 560,971 666,409
Losses on investments, net ............................................. (63,955 ) (49,358 ) (9,932)
Gains (losses) on derivative and hedging activities, net ....................... 246,548 849,041 (237,815)
Guarantor servicing fees ............................................... 115,477 119,934 128,189
Debt management fees ................................................ 359,907 300,071 258,544
Collections revenue................................................... 166,840 38,687 —
Other.............................................................. 273,259 289,802 249,421
Total other income ..................................................... 2,007,352 2,484,532 1,799,105
Operating expenses:
Salaries and benefits.................................................. 625,024 497,170 432,007
Loss on GSE debt extinguishment and defeasance .......................... — 220,848 —
Other.............................................................. 513,304 397,762 363,018
Total operating expenses................................................. 1,138,328 1,115,780 795,025
Income before income taxes, minority interest in net earnings of subsidiaries and
cumulative effect of accounting change ................................... 2,117, 463 2,556,985 2,182,969
Income taxes.......................................................... 728,767 642,689 779,380
Income before minority interest in net earnings of subsidiaries and cumulative effect
of accounting change.................................................. 1,388,696 1,914,296 1,403,589
Minority interest in net earnings of subsidiaries .............................. 6,412 1,026 —
Income before cumulative effect of accounting change......................... 1,382,284 1,913,270 1,403,589
Cumulative effect of accounting change..................................... — — 129,971
Net income............................................................ 1,382,284 1,913,270 1,533,560
Preferred stock dividends ................................................ 21,903 11,501 11,501
Net income attributable to common stock ................................... $1,360,381 $ 1,901,769 $ 1,522,059
Basic earnings per common share:
Before cumulative effect of accounting change ............................. $ 3.25 $ 4.36 $ 3.08
Cumulative effect of accounting change................................... — — .29
Basic earnings per common share, after cumulative effect of accounting change .... $ 3.25 $
4.36 $ 3.37
Average common shares outstanding ....................................... 418,374 436,133 452,037
Diluted earnings per common share:
Before cumulative effect of accounting change ............................. $ 3.05 $ 4.04 $ 2.91
Cumulative effect of accounting change................................... — — .27
Diluted earnings per common share, after cumulative effect of accounting change. . . $ 3.05 $ 4.04 $ 3.18
Average common and common equivalent shares outstanding................... 460,260 475,787 482,104
Dividends per common share............................................. $ .85 $ .74 $ .59