Sallie Mae 2012 Annual Report Download - page 66

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GAAP Basis
December 31, 2009 December 31, 2008
(Dollars in millions)
FFELP
Loans
Private
Education
Loans
Total
Portfolio
FFELP
Loans
Private
Education
Loans
Total
Portfolio
GAAP Basis:
Beginning balance ........................... $138 $1,308 $1,446 $ 89 $1,004 $1,093
Less:
Charge-offs(1) ............................. (79) (876) (955) (58) (320) (378)
Student loan sales .......................... (4) — (4) 1 — 1
Plus:
Provision for loan losses ..................... 106 967 1,073 106 586 692
Reclassification of interest reserve(2) ........... — 44 44 — 38 38
Ending balance .............................. $161 $1,443 $1,604 $138 $1,308 $1,446
Off-Balance Sheet
December 31, 2009 December 31, 2008
(Dollars in millions)
FFELP
Loans
Private
Education
Loans
Total
Portfolio
FFELP
Loans
Private
Education
Loans
Total
Portfolio
Off-Balance Sheet:
Beginning balance ........................... $ 27 $505 $532 $ 29 $362 $391
Less:
Charge-offs(1) ............................. (15) (423) (438) (21) (153) (174)
Student loan sales .......................... — — — (2) — (2)
Plus:
Provision for loan losses ..................... 13 432 445 21 288 309
Reclassification of interest reserve(2) ........... — 10 10 — 8 8
Ending balance .............................. $ 25 $524 $549 $ 27 $505 $532
“Core Earnings” Basis
December 31, 2009 December 31, 2008
(Dollars in millions)
FFELP
Loans
Private
Education
Loans
Total
Portfolio
FFELP
Loans
Private
Education
Loans
Total
Portfolio
“Core Earnings” Basis:
Balance at beginning of period .................. $165 $1,813 $ 1,978 $ 118 $1,366 $1,484
Less:
Charge-offs(1) ............................. (94) (1,299) (1,393) (79) (473) (552)
Student loan sales .......................... (4) — (4) (1) — (1)
Plus:
Provision for loan losses ..................... 119 1,399 1,518 127 874 1,001
Reclassification of interest reserve(2) ........... — 54 54 — 46 46
Total “Core Earnings” basis ................ $186 $1,967 $ 2,153 $ 165 $1,813 $1,978
Percent of total .............................. 9% 91% 100% 8% 92% 100%
Troubled debt restructuring(3) ................... $— $ 223 $ 223 $— $ — $ —
(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) Represents the recorded investment of loans identified as troubled debt restructuring.
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