Sallie Mae 2010 Annual Report Download - page 135

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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, 2008
Allowance for Loan Losses
Beginning balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 88,729 $ 1,003,963 $ 47,003 $ 1,139,695
Total provision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,568 586,169 27,913 719,650
Charge-offs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (57,510) (320,240) (13,591) (391,341)
Student loan sales and securitization activity . . . . . . . . . . . 756 — — 756
Reclassification of interest reserve
(1)
. . . . . . . . . . . . . . . . — 38,151 — 38,151
Ending Balance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 137,543 $ 1,308,043 $ 61,325 $ 1,506,911
Allowance:
Ending balance: individually evaluated for impairment. . . . . . $ — $ — $ 35,981 $ 35,981
Ending balance: collectively evaluated for impairment . . . . . . $ 137,543 $ 1,308,043 $ 25,344 $ 1,470,930
Ending balance: loans acquired with deteriorated credit
quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ — $ —
Loans:
Ending balance: individually evaluated for impairment. . . . . . $ — $ — $ 98,608 $ 98,608
Ending balance: collectively evaluated for impairment . . . . . . $121,926,798 $22,425,640 $462,520 $144,814,958
Ending balance: loans acquired with deteriorated credit
quality . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ — $ — $ — $ —
Charge-offs as a percentage of average loans in repayment
and forbearance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .09% 3.8% —%
Allowance as a percentage of the ending total loan balance . . .11% 5.8% 10.9%
Allowance as a percentage of the ending loans in
repayment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .20% 11.7% —%
Allowance coverage of charge-offs . . . . . . . . . . . . . . . . . . . 2.4 4.1 4.5
Ending total loans
(2)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . $121,926,798 $22,425,640 $561,128
Average loans in repayment . . . . . . . . . . . . . . . . . . . . . . . . $ 66,392,120 $ 8,533,356 $ —
Ending loans in repayment . . . . . . . . . . . . . . . . . . . . . . . . $ 70,174,192 $11,182,053 $ —
(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.
Within our Private Education Loan portfolio, we consider loans greater than 90 days past due to be
nonperforming. FFELP Loans are guaranteed as to their principal and accrued interest by the federal
government in the event of default subject to no less than 97 percent and therefore we do not deem FFELP
Loans as nonperforming from a credit risk standpoint at any point in their life cycle prior to claim payment,
and continue to accrue interest through the date of claim.
F-32
SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, except per share amounts, unless otherwise stated)