Sallie Mae 2014 Annual Report Download - page 112

Download and view the complete annual report

Please find page 112 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 (Continued)
Troubled Debt Restructurings
All of our loans are collectively assessed for impairment except for loans classified as TDRs. Prior to the Spin-Off, we
did not have TDR loans because the loans were generally sold in the same month that the terms were restructured. Subsequent
to May 1, 2014, we have individually assessed $59.4 million of Private Education Loans as TDRs. When these loans are
determined to be impaired, we provide for an allowance for losses sufficient to cover life-of-loan expected losses through an
impairment calculation based on the difference between the loan's basis and the present value of expected future cash flows
discounted at the loan's original effective interest rate.
Within the Private Education Loan portfolio, loans greater than 90 days past due are considered to be nonperforming.
FFELP Loans are at least 97 percent guaranteed as to their principal and accrued interest by the federal government in the event
of default and therefore we do not deem FFELP Loans as nonperforming from a credit risk standpoint at any point in their life
cycle prior to claim payment, and continue to accrue interest through the date of claim.
At December 31, 2014, all of our TDR loans had a related allowance recorded. The following table provides the
recorded investment, unpaid principal balance and related allowance for our TDR loans.
Recorded
Investment
Unpaid
Principal
Balance
Allowance
December 31, 2014
TDR Loans .....................
$
60,278
$
59,402
$
9,815
The following table provides the average recorded investment and interest income recognized for our TDR loans.
Year Ended December 31, 2014
Average Recorded
Investment
Interest Income
Recognized
TDR Loans ......................
$
23,290
$
1,105
F-28