Sallie Mae 2014 Annual Report Download - page 109

Download and view the complete annual report

Please find page 109 of the 2014 Sallie Mae annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 146

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, unless otherwise noted)
6. Allowance for Loan Losses
Our provision for Private Education Loan losses represents the periodic expense of maintaining an allowance sufficient to
absorb incurred probable losses in the held-for-investment loan portfolios. The evaluation of the allowance for loan losses is
inherently subjective, as it requires material estimates that may be susceptible to significant changes. We believe the allowance
for loan losses is appropriate to cover probable losses incurred in the loan portfolios. See Note 2, “Significant Accounting
Policies — Allowance for Private Education Loan Losses” for a more detailed discussion.
Allowance for Loan Losses Metrics
Allowance for Loan Losses
Year Ended December 31, 2014
FFELP Loans
Private Education
Loans
Total
Allowance for Loan Losses
Beginning balance ...................................................................
$
6,318
$
61,763
$
68,081
Total provision......................................................................
1,946
83,583
85,529
Charge-offs
(1)
.....................................................................
(2,996
)
(14,442
)
(17,438
)
Recoveries .........................................................................
—
1,155
1,155
Net charge-offs .....................................................................
(2,996
)
(13,287
)
(16,283
)
Student loan sales
(2)
...............................................................
—
(53,485
)
(53,485
)
Ending Balance .......................................................................
$
5,268
$
78,574
$
83,842
Allowance:
Ending balance: individually evaluated for impairment ...............
$
—
$
9,815
$
9,815
Ending balance: collectively evaluated for impairment ................
$
5,268
$
68,759
$
74,027
Loans:
Ending balance: individually evaluated for impairment ...............
$
—
$
59,402
$
59,402
Ending balance: collectively evaluated for impairment ................
$
1,264,807
$
8,251,974
$
9,516,781
Net charge-offs as a percentage of average loans in repayment .....
0.31
%
0.30
%
Allowance as a percentage of the ending total loan balance ..........
0.42
%
0.95
%
Allowance as a percentage of the ending loans in repayment ........
0.57
%
1.53
%
Allowance coverage of net charge-offs ......................................
1.76
5.91
Ending total loans ....................................................................
$
1,264,807
$
8,311,376
Average loans in repayment ......................................................
$
972,390
$
4,495,709
Ending loans in repayment .......................................................
$
926,891
$
5,149,215
_________
(1) Prior to the Spin-Off, Private Education Loans were sold to an entity that is now a subsidiary of Navient, prior to being charged off.
(2) Represents fair value write-downs on loans sold.
F-25