Sallie Mae 2013 Annual Report Download - page 33

SLM BANKCO
UNAUDITED PRO FORMA CONDENSED CONSOLIDATED BALANCE SHEET
AS OF DECEMBER 31, 2013
(In millions)
Stand-alone
SLM BankCo(1)
Separation
Adjustments
Pro Forma
SLM BankCo
Assets
Interest earning assets:
Cash and investments ................................... $ 2,286 $578(a) $ 2,864
Private Education Loans (net of allowance for losses of $62) .... 6,506 — 6,506
FFELP Loans (net of allowance for losses of $6) .............. 1,425 — 1,425
Other interest-earning assets .............................. 4 — 4
Total interest-earning assets .............................. 10,221 578 10,799
Other assets ............................................. 486 — 486
Total assets ............................................. $10,707 $578 $11,285
Liabilities and Equity
Deposits ................................................ $ 8,952 $— $ 8,952
Other liabilities .......................................... 588 — 588
Total liabilities .......................................... 9,540 — 9,540
Preferred stock, par value $.20 per share, 20 million shares
authorized
Series A: 3.3 million shares issued, respectively, at stated value of
$50 per share ........................................ — 165(a) 165
Series B: 4 million shares issued, respectively, at stated value of
$100 per share ....................................... — 400(a) 400
Common stock .......................................... — — —
Additional paid-in capital .................................. 690 13(a) 703
Accumulated other comprehensive loss ....................... (3) — (3)
Retained earnings ........................................ 475 — 475
Total stockholders’ equity .................................. 1,162 578 1,740
Non-controlling interest ................................... 5 — 5
Total equity ............................................ 1,167 578 1,745
Total liabilities and equity ................................ $10,707 $578 $11,285
(1) Represents the operations, assets, liabilities and equity of SLM BankCo, which will be comprised of Sallie Mae Bank, Upromise, Sallie
Mae Insurance Services, and the Private Education Loan origination functions. Included in these amounts are also certain general
corporate overhead payables related to SLM BankCo.
Notes:
(a) In connection with the Spin-Off, SLM BankCo, by reason of a statutory merger, will succeed us as the issuer
of the Series A Preferred Stock and the Series B Preferred Stock. SLM BankCo will retain an additional
$578 million of cash, $565 million of which will offset the obligation attributable to the principal of the Series
A Preferred Stock and the Series B Preferred Stock. The remainder of $13 million will be treated as
additional paid-in capital. The amount of additional cash retained beyond the amount related to offset the
preferred stock obligation was based upon meeting a targeted ending equity balance for SLM BankCo.
Below is the unaudited pro forma condensed consolidated income statement for SLM BankCo pro forma for
the effects of the Spin-Off for the year ended December 31, 2013. This assumes that the Spin-Off occurred on
January 1, 2013, for purposes of this presentation.
31