Sallie Mae 2015 Annual Report Download - page 114

SLM CORPORATION
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
(Dollars in thousands, unless otherwise noted)
F-24
3. Cash and Cash Equivalents
As of December 31, 2015, cash and cash equivalents include cash due from the FRB of $2.4 billion and cash due from
depository institutions of $22.4 million. As of December 31, 2014, cash and cash equivalents include cash due from the FRB of
$2.3 billion and cash due from depository institutions of $14.9 million. As of December 31, 2015 and 2014, we had no
outstanding cash equivalents.
In 2010, the FRB introduced the Term Deposit Facility to facilitate the conduct of monetary policy by providing a tool
that may be used to manage the aggregate quantity of reserve balances held by depository institutions. Under this program, the
FRB accepts deposits for a stated maturity at a rate of interest determined via auction. The funds are removed from the
accounts of participating institutions for the life of the term deposit. We participated in these auctions in 2015 and 2014,
resulting in interest income of $0.3 million and $1.2 million, respectively. As of December 31, 2015 and 2014, no funds were
on deposit with the FRB under this program.
We are required to maintain average reserve balances with the FRB based on a percentage of deposits. The average
amounts of those reserves for the years ended December 31, 2015 and 2014 were $1.2 million and $0.3 million, respectively.
4. Investments
The amortized cost and fair value of securities available for sale are as follows:
As of December 31, 2015
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Estimated Fair Value
Available for sale:
Mortgage-backed securities . . . . . $ 196,402 $ 1,370 $ (2,381) $ 195,391
As of December 31, 2014
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses Estimated Fair Value
Available for sale:
Mortgage-backed securities . . . . . $ 167,740 $ 2,686 $ (1,492) $ 168,934