Sallie Mae 2014 Annual Report Download - page 93

SLM CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
Years Ended December 31,
2014
2013
2012
Operating activities
Net income .........................................................................................................
$
193,785
$
257,593
$
215,726
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Provisions for loan losses ....................................................................................
85,529
69,339
66,116
Valuation allowance on loans held for sale ...............................................................
—
—
275
Deferred tax (benefit) provision.............................................................................
(40,888
)
14,567
(11,015
)
Amortization of FDIC fees ...................................................................................
—
1,046
3,897
Amortization of brokered deposit placement fee ........................................................
10,164
9,754
8,416
Amortization of deferred loan origination costs and fees, net ........................................
1,995
2,199
5,337
Net accretion of discount on investments .................................................................
633
(7,187
)
(10,058
)
Depreciation of premises and equipment..................................................................
6,099
5,059
6,837
Amortization and impairment of acquired intangibles .................................................
3,290
3,317
13,125
Stock-based compensation expense ........................................................................
24,971
15,681
19,102
Interest rate swap ...............................................................................................
1,214
(324
)
5,411
Gains on sales of loans held for sale .......................................................................
—
—
(167
)
Gains on sale of securities ....................................................................................
—
(63,813
)
(129
)
Gains on sale of loans, net ...................................................................................
(121,359
)
(196,593
)
(235,202
)
Changes in operating assets and liabilities:
Net decrease in loans held for sale .........................................................................
6,519
3,628
61,275
Origination of loans held for sale ...........................................................................
(6,519
)
(3,628
)
(61,275
)
Increase in accrued interest receivable.....................................................................
(331,014
)
(281,856
)
(168,146
)
(Increase) decrease in other interest-earning assets .....................................................
(72,928
)
97
158
Decrease in tax indemnification receivable ...............................................................
38,820
—
—
Increase in other assets ........................................................................................
(24,959
)
(2,357
)
(7,008
)
(Decrease) increase in income tax payable ...............................................................
(221,222
)
56,784
88,803
Increase in accrued interest payable ........................................................................
2,985
239
2,095
Increase in payable due to entity that is a subsidiary of Navient .....................................
8,764
147,379
96,591
(Decrease) increase in other liabilities .....................................................................
(2,652
)
39,096
(614
)
Total adjustments ..........................................................................................
(630,558
)
(187,573
)
(116,176
)
Total net cash (used in) provided by operating activities .................................................
(436,773
)
70,020
99,550
Investing activities
Student loans acquired and originated .....................................................................
(4,094,790
)
(4,387,093
)
(4,251,595
)
Net proceeds from sales of student loans held for investment ........................................
2,001,625
2,546,940
2,789,822
Proceeds from claim payments ..............................................................................
127,869
82,615
4,219
Net decrease in loans held for investment ................................................................
638,321
490,791
460,216
Purchases of available-for-sale securities .................................................................
(72,049
)
(62,097
)
(33,053
)
Proceeds from sales and maturities of available-for-sale securities..................................
10,653
597,728
27,017
Total net cash used in investing activities ...................................................................
(1,388,371
)
(731,116
)
(1,003,374
)
Financing activities
Brokered deposit placement fee .............................................................................
(15,098
)
(12,114
)
(16,484
)
Net increase in certificates of deposit ......................................................................
340,225
535,456
395,304
Net increase in other deposits ...............................................................................
1,207,487
1,126,673
1,109,886
Net decrease in deposits with entity that is a subsidiary of Navient .................................
(5,633
)
(126,923
)
(12,166
)
Special cash contribution from Navient ...................................................................
472,718
—
—
Net capital contributions from entity that is a subsidiary of Navient ................................
12,022
(164,471
)
(20,419
)
Excess tax benefit from the exercise of stock-based awards ..........................................
3,271
6,258
891
Preferred stock dividends paid ..............................................................................
(12,933
)
—
—
F-9