Sallie Mae 2010 Annual Report Download - page 134

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4. Allowance for Loan Losses (Continued)
FFELP Loans
Private Education
Loans
Other
Loans Total
Allowance for Loan Losses
Year Ended December 31, 2009
Allowance for Loan Losses
Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 137,543 $ 1,308,043 $ 61,325 $ 1,506,911
Total provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 106,221 966,591 46,148 1,118,960
Charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (78,861) (875,667) (31,212) (985,740)
Student loan sales and securitization activity . . . . . . . . . . . (3,735) — — (3,735)
Reclassification of interest reserve
(1)
. . . . . . . . . . . . . . . . — 44,473 — 44,473
Ending Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 161,168 $ 1,443,440 $ 76,261 $ 1,680,869
Allowance:
Ending balance: individually evaluated for impairment. . . . . . $ — $ 32,473 $ 56,760 $ 89,233
Ending balance: collectively evaluated for impairment . . . . . . $ 161,168 $ 1,410,967 $ 19,501 $ 1,591,636
Ending balance: loans acquired with deteriorated credit
quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ — $ —
Loans:
Ending balance: individually evaluated for impairment. . . . . . $ — $ 181,254 $128,080 $ 309,334
Ending balance: collectively evaluated for impairment . . . . . . $119,026,931 $24,574,344 $310,176 $143,911,451
Ending balance: loans acquired with deteriorated credit
quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ — $ —
Charge-offs as a percentage of average loans in repayment
and forbearance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11% 7.2% —%
Allowance as a percentage of the ending total loan balance . . .14% 5.8% 17.4%
Allowance as a percentage of the ending loans in
repayment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .23% 10.0% —%
Allowance coverage of charge-offs . . . . . . . . . . . . . . . . . . . 2.0 1.6 2.4
Ending total loans
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $119,026,931 $24,755,598 $438,256
Average loans in repayment . . . . . . . . . . . . . . . . . . . . . . . . $ 69,020,295 $12,137,430 $ —
Ending loans in repayment . . . . . . . . . . . . . . . . . . . . . . . . $ 69,826,790 $14,379,102 $ —
(1) Represents the additional allowance related to the amount of uncollectible interest reserved within interest income that is transferred
in the period to the allowance for loan losses when interest is capitalized to a loan’s principal balance.
(2) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans.
F-31
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)