Sallie Mae 2014 Annual Report Download - page 59

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Deposits
The following table summarizes total deposits at December 31, 2014 and 2013.
December 31,
December 31,
(Dollars in thousands)
2014
2013
Deposits - interest bearing ....................................
$
10,539,953
$
8,946,514
Deposits - non-interest bearing ..............................
602
55,036
Total deposits ......................................................
$
10,540,555
$
9,001,550
Interest Bearing
Interest bearing deposits as of December 31, 2014 and 2013 consisted of non-maturity savings and money market
deposits, brokered and retail certificates of deposit, as discussed further below, and brokered money market deposits. These
deposit products are serviced by third party providers. Early withdrawal of Brokered CD’s is prohibited (except in the case of
death or legal incapacity). Placement fees associated with the brokered certificates of deposit are amortized into interest
expense using the effective interest rate method. We recognized placement fee expense of $10.3 million, $9.8 million, and $8.4
million in the years ended December 31, 2014, 2013 and 2012, respectively. Fees paid to third party brokers related to these
certificates of deposit were $15.2 million, $12.1 million, and $16.5 million during the years ended December 31, 2014, 2013
and 2012, respectively.
In the past, we offered debit cards associated with interest bearing consumer deposit (“NOW”) accounts to facilitate the
distribution of financial aid refunds and other payables to students. These debit cards were serviced by third party providers. As
of April 30, 2014, we no longer offer these debit cards.
Interest bearing deposits at December 31, 2014 and 2013 are summarized as follows:
December 31, 2014
December 31, 2013
(Dollars in thousands)
Amount
Ye a r -End
Weighted
Average
Stated Rate
Amount
Ye a r -End
Weighted
Average
Stated Rate
Money market .........................................
$
4,527,448
1.15
%
$
3,212,889
0.65
%
Savings...................................................
703,687
0.81
743,742
0.81
NOW .....................................................
—
—
18,214
0.12
Certificates of deposit ..............................
5,308,818
1.00
4,971,669
1.39
Deposits - interest bearing ......................
$
10,539,953
$
8,946,514
As of December 31, 2014 and 2013, there were $254 million and $160 million of deposits exceeding FDIC insurance
limits. Accrued interest on deposits was $16.1 million and $13.1 million at December 31, 2014 and 2013, respectively.
Non Interest Bearing
Non interest bearing deposits were $0.6 million and $55 million as of December 31, 2014 and 2013, respectively. For
both periods these were comprised of money market accounts. The December 31, 2014 balance is related to our Employee
Stock Purchase Plan account. See Note 14, “Stock Based Compensation Plans and Arrangements” for additional details
regarding this plan.
57