Sallie Mae 2012 Annual Report Download - page 141

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SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
4. Allowance for Loan Losses (Continued)
Allowance for Loan Losses
Year Ended December 31, 2010
(Dollars in millions) FFELP Loans
Private Education
Loans
Other
Loans Total
Allowance for Loan Losses
Beginning balance ....................... $ 161 $ 1,443 $ 76 $ 1,680
Total provision ....................... 98 1,298 23 1,419
Charge-offs(1) ......................... (87) (1,291) (27) (1,405)
Student loan sales ..................... (8) — — (8)
Reclassification of interest reserve(2) ...... — 48 — 48
Consolidation of securitization trusts(3) ..... 25 524 — 549
Ending Balance ......................... $ 189 $ 2,022 $ 72 $ 2,283
Allowance:
Ending balance: individually evaluated for
impairment .......................... $ — $ 114 $ 59 $ 173
Ending balance: collectively evaluated for
impairment .......................... $ 189 $ 1,908 $ 13 $ 2,110
Loans:
Ending balance: individually evaluated for
impairment .......................... $ — $ 444 $ 114 $ 558
Ending balance: collectively evaluated for
impairment .......................... $146,938 $38,128 $ 228 $185,294
Charge-offs as a percentage of average loans in
repayment ........................... .11% 5.04% 6.95%
Charge-offs as a percentage of average loans in
repayment and forbearance .............. .09% 4.79% 6.95%
Allowance as a percentage of the ending total
loan balance .......................... .13% 5.24% 21.18%
Allowance as a percentage of the ending loans
in repayment ......................... .20% 7.26% 21.18%
Allowance coverage of charge-offs ......... 2.2 1.6 2.7
Ending total loans(4) ...................... $146,938 $38,572 $ 342
Average loans in repayment ............... $ 82,255 $25,596 $ 383
Ending loans in repayment ................ $ 96,696 $27,852 $ 342
(1) Charge-offs are reported net of expected recoveries. For Private Education Loans, the expected recovery amount is transferred to
the receivable for partially charged-off loan balance. Charge-offs include charge-offs against the receivable for partially charged-
off loans which represents the difference between what was expected to be collected and any shortfalls in what was actually
collected in the period. See “Receivable for Partially Charged-Off Private Education Loans” for further discussion.
(2) 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.
(3) On January 1, 2010, upon the adoption of the new consolidation accounting guidance all off-balance sheet loans were consolidated
on-balance sheet. (See “Note 2 — Significant Accounting Policies — Consolidation.”)
(4) Ending total loans for Private Education Loans includes the receivable for partially charged-off loans.
F-31