Sallie Mae 2007 Annual Report Download - page 48

Average Balance Sheets
The following table reflects the rates earned on interest earning assets and paid on interest bearing
liabilities for the years ended December 31, 2007, 2006 and 2005. This table reflects the net interest margin
for the entire Company for our on-balance sheet assets. It is included in the Lending segment discussion
because that segment includes substantially all interest earning assets and interest bearing liabilities.
Balance Rate Balance Rate Balance Rate
2007 2006 2005
Years Ended December 31,
Average Assets
FFELP Stafford and Other Student
Loans ....................... $ 31,294 6.59% $ 21,152 6.66% $20,720 4.90%
FFELP Consolidation Loans ........ 67,918 6.39 55,119 6.43 47,082 5.31
Private Education Loans ........... 12,507 11.65 8,585 11.90 6,922 9.16
Other loans ..................... 1,246 8.49 1,155 8.48 1,072 7.89
Cash and investments ............. 12,710 5.57 8,824 5.70 6,662 4.15
Total interest earning assets ......... 125,675 6.90% 94,835 6.94% 82,458 5.47%
Non-interest earning assets ......... 9,715 8,550 6,990
Total assets ..................... $135,390 $103,385 $89,448
Average Liabilities and
Stockholders’ Equity
Short-term borrowings............. $ 16,385 5.74% $ 3,902 5.33% $ 4,517 3.93%
Long-term borrowings............. 109,984 5.59 91,461 5.37 77,958 3.70
Total interest bearing liabilities . . . . . . 126,369 5.61% 95,363 5.37% 82,475 3.71%
Non-interest bearing liabilities ....... 4,272 3,912 3,555
Stockholders’ equity .............. 4,749 4,110 3,418
Total liabilities and stockholders’
equity ....................... $135,390 $103,385 $89,448
Net interest margin ............... 1.26% 1.53% 1.76%
Rate/Volume Analysis
The following rate/volume analysis shows the relative contribution of changes in interest rates and asset
volumes.
Increase Rate Volume
Increase
Attributable to
Change in
2007 vs. 2006
Interest income .......................................... $2,096 $ (98) $2,194
Interest expense ......................................... 1,962 301 1,661
Net interest income....................................... $ 134 $(399) $ 533
2006 vs. 2005
Interest income .......................................... $2,067 $1,370 $ 697
Interest expense ......................................... 2,064 1,589 475
Net interest income....................................... $ 3 $(219) $ 222
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