Sallie Mae 2015 Annual Report Download - page 46

44
expect to their account information. The costs related to these investments contributed significantly to our increase in operating
expenses for the year. However, we expect these investments to result in increased customer satisfaction, higher loan
originations and more efficient operations in years to come.
2016 Management Objectives
Having now substantially completed both the legal and operational separation of our business from Navient, in 2016 we
intend to devote ourselves to further growing our business and improving our customers’ experience. We plan to do so by
further simplifying and expediting the delivery of our products and services and incrementally adding to our product offerings
to reinforce and expand our existing customer relationships and foster new ones.
For 2016, we have set out the following major goals for ourselves: (1) prudently grow our Private Education Loan assets
and revenues; (2) maintain our strong capital position; (3) enhance our customers’ experience by further improving the delivery
of our products and services; (4) sustain the consumer protection improvements we have made to our policies, procedures and
compliance management system since the Spin-Off and further enhance our risk oversight infrastructure; (5) successfully
launch one or more complementary new products to increase the level of engagement we have with our customers; and (6)
manage operating expenses while improving efficiency. Here is how we plan to achieve these objectives:
Prudently Grow Private Education Loan Assets and Revenues
We will continue to pursue managed growth in our Private Education Loan portfolio in 2016 by leveraging our Sallie Mae
and Upromise brands and our relationship with more than two thousand colleges and universities. We recently expanded our
campus-focused sales force to provide deeper support for universities in all regions of the United States and, as a result, we
expect to be able to continue to increase originations through this effort. We are determined to maintain overall credit quality
and cosigner rates in our Smart Option Student Loan originations. In 2016, we expect to introduce a Private Education Loan
product permitting parents to borrow and fund their children's education without a student co-borrower ("Parent Loans"). As
our business, capital and balance sheet continue to grow, we also expect to be able to achieve our annual Private Education
Loan origination targets for the year without having to sell loans to third-parties.
Maintain Our Strong Capital Position
We intend to maintain levels of capital at the Bank that significantly exceed those necessary to be considered “well
capitalized” by the FDIC. The Company is a source of strength for the Bank and will obtain or provide additional capital as,
and if, necessary to the Bank. We regularly evaluate the quality of assets, stability of earnings, and adequacy of our allowance
for loan losses, and we continue to believe our existing capital levels are sufficient to support the Bank’s plan for significant
growth over the next several years while remaining “well capitalized.” As our balance sheet grows in 2016, these ratios will
decline but will remain significantly in excess of the capital levels required to be considered “well capitalized” by our
regulators. We do not plan to pay a common stock dividend or repurchase shares in 2016 (except to repurchase common stock
acquired as a result of taxes withheld in connection with award exercises and vesting under our employee stock based
compensation plans).