Sallie Mae 2010 Annual Report Download - page 55

Financial Condition
This section provides additional information regarding the changes related to our loan portfolio assets and
related liabilities as well as credit performance indicators related to our loan portfolio. Many of these
disclosures will show both GAAP-basis as well as “Core Earnings” basis disclosures. Because certain trusts
were not consolidated prior to the adoption of the new consolidation accounting guidance on January 1, 2010,
these trusts were treated as off-balance sheet for GAAP purposes but we considered them on-balance sheet for
“Core Earnings” purposes. Subsequent to the adoption of the new consolidation accounting guidance on
January 1, 2010, this difference no longer exists because all of our trusts are treated as on-balance sheet for
GAAP purposes. Below and elsewhere in the document, “Core Earnings” basis disclosures include all
historically (pre-January 1, 2010) off-balance sheet trusts as though they were on-balance sheet. We believe
that providing “Core Earnings” basis disclosures is meaningful because when we evaluate the performance and
risk characteristics of the Company we have always considered the effect of any off-balance sheet trusts as
though they were on-balance sheet.
Average Balance Sheets — GAAP
The following table reflects the rates earned on interest-earning assets and paid on interest-bearing
liabilities for the years ended December 31, 2010, 2009 and 2008. This table reflects our net interest margin
on a consolidated basis.
(Dollars in millions) Balance Rate Balance Rate Balance Rate
2010 2009 2008
Years Ended December 31,
Average Assets
FFELP Loans .................... $142,043 2.36% $128,538 2.41% $117,382 4.41%
Private Education Loans ............ 36,534 6.44 23,154 6.83 19,276 9.01
Other loans...................... 323 9.20 561 9.98 955 8.66
Cash and investments . ............. 12,729 .20 11,046 .24 9,279 2.98
Total interest-earning assets.......... 191,629 3.00% 163,299 2.91% 146,892 4.95%
Non-interest-earning assets .......... 5,931 8,693 9,999
Total assets...................... $197,560 $171,992 $156,891
Average Liabilities and Stockholders’
Equity
Short-term borrowings ............. $ 38,634 .86% $ 44,485 1.84% $ 36,059 4.73%
Long-term borrowings. ............. 150,768 1.29 118,699 1.87 111,625 3.76
Total interest-bearing liabilities ....... 189,402 1.20% 163,184 1.86% 147,684 4.00%
Non-interest-bearing liabilities........ 3,280 3,719 3,797
Stockholders’ equity . . ............. 4,878 5,089 5,410
Total liabilities and stockholders’
equity ........................ $197,560 $171,992 $156,891
Net interest margin . . . ............. 1.82% 1.05% .93%
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