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 Sallie Mae Reports Fourth-Quarter and Full-Year 2015 Financial Results
   Wednesday, January 20, 2016 4:30:02 PM ET

--Full-Year Private Education Loan Originations of $4.3 Billion

--Private Education Loan Portfolio Grows to $10.5 Billion, Up 28 Percent Year-over-Year

Sallie Mae (SLM ), formally SLM Corporation, today released fourth-quarter 2015 and full-year 2015 financial results. In 2015, the company increased diluted earnings per share 40 percent year-over-year to $.59 (including $.20 attributable to gains on sales of loans), grew private education loan originations 6 percent to $4.3 billion, and expanded its private education loan portfolio size 28 percent to $10.5 billion, all compared to 2014.

"We met or exceeded all of our goals in 2015, our first full year of operation. Even more gratifying, we helped 333,000 students make college happen. With infrastructure investments and service enhancements in place to improve our customers’ experience, we are better positioned than ever to serve families as they save, plan, and pay for college, and remain on an upward growth trajectory," said Raymond Quinlan, chairman and CEO. "Concerns about capital market conditions and regulatory issues continue to weigh on our market valuation. We strongly believe those concerns are exaggerated and will clear up over the course of 2016."



For the fourth-quarter 2015, GAAP net income was $90 million, up from $20 million in the year-ago quarter. GAAP net income attributable to the company’s common stock was $85 million ($.20 diluted earnings per share) in the fourth-quarter 2015, up from $15 million ($.03 diluted earnings per share) in the year-ago quarter. The year-over-year increase was primarily attributable to a $37-million increase in net interest income, a $58-million increase in gains on sales of loans, and a $4-million decrease in total expenses, which were offset by a $30-million increase in income tax expense.

For 2015, GAAP net income was $274 million, up from $194 million in 2014. GAAP net income attributable to the company’s common stock was $255 million ($.59 diluted earnings per share) in 2015, up from $181 million ($.42 diluted earnings per share) in 2014.

Fourth-quarter 2015 results vs. fourth-quarter 2014 included:

-- Private education loan originations of $575 million, up 3 percent.

-- Net interest income of $188 million, up 25 percent.

-- Net interest margin of 5.48 percent, up 47 basis points.

-- Average private education loans outstanding of $10.6 billion, up 31 percent.

-- Average yield on the private education loan portfolio was 7.84 percent, down 23 basis points.

-- Private education loan provision for loan losses was $29 million, down from $30 million.

-- Loans in forbearance were 3.4 percent of private education loans in repayment and forbearance.

-- Delinquencies as a percentage of private education loans in repayment were 2.2 percent.

In connection with the Navient Corporation spin-off, the company changed its policy to charge off loans after 120 days of delinquency and changed its loss emergence period from two years to one year to reflect both the shorter charge-off policy and its related servicing practices. Consequently, many of the pre-spin-off, historical credit indicators and period-over-period trends are not comparable and may not be indicative of future performance.

Core earnings for the fourth-quarter 2015 were $90 million, up from $20 million in the year-ago quarter. Core earnings attributable to the company’s common stock were $85 million ($.20 diluted earnings per share) in the fourth-quarter 2015, up from $15 million ($.03 diluted earnings per share) in the year-ago quarter.

Core earnings for 2015 were $273 million, up from $195 million for 2014. Core earnings attributable to the company’s common stock were $254 million ($.59 diluted earnings per share) for 2015, up from $182 million ($.42 diluted earnings per share) for 2014.

Sallie Mae provides core earnings because it is one of several measures used to evaluate management performance and allocate corporate resources. The difference between core earnings and GAAP net income is driven by mark-to-market unrealized gains and losses on derivative contracts recognized in GAAP, but not in core earnings results. Management believes its derivatives are effective economic hedges, and, as such, they are a critical element of the company’s interest rate risk management strategy. Fourth-quarter 2015 and full-year 2015 GAAP results included $348 thousand and $1.8 million, respectively, of pre-tax gains from derivative accounting treatment that are excluded from core earnings results, vs. pre-tax losses of $62 thousand and $1.7 million, respectively, in the year-ago periods.

Total Expenses

Total expenses were $85 million in fourth-quarter 2015 (reflecting a $1 million credit to reorganization expenses), compared with $88 million in the year-ago quarter (which included $10 million of reorganization expenses).

Total expenses were $356 million for the full-year 2015 (including $5 million of reorganization expenses), compared with $316 million in 2014 (which included $38 million of reorganization expenses). The year-over-year increase in total expenses was primarily the result of increased personnel costs related to being a stand-alone company and an increase in loans serviced for the company and third parties. In addition, the company made investments in its servicing operation to improve customer service, such as expanding weekend service hours and improving response times.

Income Tax Expense

The effective income tax rate decreased to 37.9 percent in fourth-quarter 2015 from 55.4 percent in the year-ago quarter. In fourth-quarter 2014, the company recorded a net reserve of $7 million for uncertain historical tax positions, which contributed to an increase in the effective tax rate to 55.4 percent. Absent these adjustments, the company’s effective tax rate would have been approximately 39 percent in fourth-quarter 2014. The additional decline in the effective tax rate for the fourth-quarter 2015 was the result of lower effective state tax rates in fourth-quarter 2015.

The company’s effective tax rate decreased to 37.5 percent in 2015 from 41.9 percent in 2014. The decrease in the effective tax rate for 2015 was primarily the result of the additional reserves recorded in fourth-quarter 2014 related to uncertain historical tax positions and lower effective state tax rates in fourth-quarter 2015.

Capital

The regulatory capital ratios of the company’s Sallie Mae Bank subsidiary continue to exceed guidelines for institutions considered "well capitalized." At Dec. 31, 2015, Sallie Mae Bank’s regulatory capital ratios were as follows:

                                                         
                                                              Dec. 31, 2015                     Well Capitalized Regulatory Requirements
                                                             -------------                      ----------------------------------------
Tier 1 leverage                                               12.3 percent                                     5.0 percent
Tier 1 risk-based capital                                     14.4 percent                                     8.0 percent
Total risk-based capital                                      15.4 percent                                    10.0 percent
Common equity Tier 1 risk-based capital                       14.4 percent                                     6.5 percent
                                                                                                 

Deposits

Deposits at the company totaled $11.5 billion ($7.3 billion in brokered deposits and $4.2 billion in retail and other deposits) at Dec. 31, 2015, compared to $10.5 billion ($6.7 billion in brokered deposits and $3.8 billion in retail and other deposits) at Dec. 31, 2014. The increase was primarily driven by growth in brokered and other money market deposits and brokered CDs.

Guidance

The company expects 2016 results to be as follows:

-- Full-year diluted core earnings per share between $.49 and $.51.

-- Full-year private education loan originations of $4.6 billion.

-- Full-year operating efficiency ratio improvement of 8-10 percent.

***

Sallie Mae will host an earnings conference call tomorrow, Jan. 21, 2016, at 8 a.m. EST. Sallie Mae executives will be on hand to discuss various highlights of the quarter and to answer questions related to Sallie Mae’s performance. Individuals interested in participating in the call should dial 877-356-5689 (USA and Canada) or dial 706-679-0623 (international) and use access code 3903581 starting at 7:45 a.m. EST. A live audio webcast of the conference call may be accessed at www.SallieMae.com/investors. A replay of the conference call will be available approximately two hours after the call’s conclusion and will remain available through Feb. 3, 2016, by dialing 855-859-2056 (USA and Canada) or 404-537-3406 (international) with access code 3903581.

Presentation slides for the conference call may be accessed at www.SallieMae.com/investors under the webcasts tab.

This press release contains "forward-looking statements" and information based on management’s current expectations as of the date of this release. Statements that are not historical facts, including statements about the company’s beliefs, opinions or expectations and statements that assume or are dependent upon future events, are forward-looking statements. Forward-looking statements are subject to risks, uncertainties, assumptions and other factors that may cause actual results to be materially different from those reflected in such forward-looking statements. These factors include, among others, the risks and uncertainties set forth in Item 1A "Risk Factors" and elsewhere in the company’s Annual Report on Form 10-K for the year ended Dec. 31, 2014 (filed with the Securities and Exchange Commission ("SEC") on Feb. 26, 2015) and subsequent filings with the SEC; increases in financing costs; limits on liquidity; increases in costs associated with compliance with laws and regulations; changes in accounting standards and the impact of related changes in significant accounting estimates; any adverse outcomes in any significant litigation to which the company is a party; credit risk associated with the company’s exposure to third parties, including counterparties to the company’s derivative transactions; and changes in the terms of education loans and the educational credit marketplace (including changes resulting from new laws and the implementation of existing laws). The company could also be affected by, among other things: changes in its funding costs and availability; reductions to its credit ratings; failures or breaches of its operating systems or infrastructure, including those of third-party vendors; damage to its reputation; failures to successfully implement cost-cutting and restructuring initiatives and adverse effects of such initiatives on the company’s business; risks associated with restructuring initiatives; changes in the demand for educational financing or in financing preferences of lenders, educational institutions, students and their families; changes in law and regulations with respect to the student lending business and financial institutions generally; changes in banking rules and regulations, including increased capital requirements; increased competition from banks and other consumer lenders; the creditworthiness of its customers; changes in the general interest rate environment, including the rate relationships among relevant money-market instruments and those of its earning assets versus its funding arrangements; rates of prepayments on the loans made by the company and its subsidiaries; changes in general economic conditions and the company’s ability to successfully effectuate any acquisitions; and other strategic initiatives. The preparation of the company’s consolidated financial statements also requires management to make certain estimates and assumptions, including estimates and assumptions about future events. These estimates or assumptions may prove to be incorrect. All forward-looking statements contained in this release are qualified by these cautionary statements and are made only as of the date of this release. The company does not undertake any obligation to update or revise these forward-looking statements to conform such statements to actual results or changes in its expectations.

The company reports financial results on a GAAP basis and also provides certain "Core Earnings" performance measures. The difference between the company’s "Core Earnings" and GAAP results for the periods presented were the unrealized, mark-to-market gains/losses on derivative contracts. These are recognized in GAAP, but not in "Core Earnings" results. The company provides "Core Earnings" measures because this is what management uses when making management decisions regarding the company’s performance and the allocation of corporate resources. The company’s "Core Earnings" are not defined terms within GAAP and may not be comparable to similarly titled measures reported by other companies.

For additional information, see "Management’s Discussion and Analysis of Financial Condition and Results of Operations -- GAAP Consolidated Earnings Summary -’Core Earnings’" in the company’s Form 10-Q for the quarter ended September 30, 2015 for a further discussion and the "’Core Earnings’ to GAAP Reconciliation" table in this press release for a complete reconciliation between GAAP net income and "Core Earnings."

Year-over-year private education loan portfolio performance continues to be affected by changes in the company’s business practices undertaken in connection with the Navient Corporation spin-off. Most notably, the company changed its policy to charge off loans after 120 days of delinquency and changed its loss emergence period from two years to one year to reflect both the shorter charge-off policy and its related servicing practices. A loss emergence period represents the expected period between the first occurrence of an event likely to cause a loss on a loan and the date the loan is expected to be charged off, taking into consideration account management practices that affect the timing of a loss, such as the usage of forbearance. Prior to the spin-off, Sallie Mae Bank also sold all loans past 90 days delinquent to an entity that is now a subsidiary of Navient Corporation. Consequently, many of the pre-spin-off, historical credit indicators and period-over-period trends are not comparable and may not be indicative of future performance.

***

Sallie Mae (SLM ) is the nation’s saving, planning, and paying for college company. Whether college is a long way off or just around the corner, Sallie Mae offers products that promote responsible personal finance, including private education loans, Upromise rewards, scholarship search, college financial planning tools, and online retail banking. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.

                                                                                                                                                                    
                                                                                                                                 Selected Financial Information and Ratios
                                                                                                                                                (Unaudited)
                                                                                                                                                                                                            
                                                                                                                                Quarters Ended                                                                                                        Years Ended
                                                                                                                                 December 31,                                                                                                        December 31,
                                                                                        ----------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------------
(In thousands, except per share data and                                                                2015                                   2014                                                     2015                                    2014
percentages)
------------------------------------------------------------------                      ----------------------------------                        ---------------------------------                        ----------------------------------                        -----------------------------------
                                                                                                                                                                                                                                                                      
Net income attributable to SLM Corporation common stock                                    $     84,856                                              $    14,862                                              $    254,689                                                $   181,286
Diluted earnings per common share attributable to SLM Corporation                          $       0.20                                              $      0.03                                              $       0.59                                                $      0.42
Weighted average shares used to compute diluted earnings per share                              431,531                                                  432,108                                                   432,234                                                    432,269
Return on assets                                                                                   2.49 %                                                   0.62 %                                                    2.04 %                                                     1.68 %
Operating efficiency ratio - old method(1)                                                           37 %                                                     59 %                                                      44 %                                                       43 %
Operating efficiency ratio - new method(2)                                                           43 %                                                     48 %                                                      47 %                                                       45 %
                                                                                                                                                                                                                                                                      
Other Operating Statistics
Ending Private Education Loans, net                                                        $ 10,515,505                                              $ 8,246,647                                              $ 10,515,505                                                $ 8,246,647
Ending FFELP Loans, net                                                                       1,115,086                             1,263,139                              1,115,086                               1,263,139  
                                                                                        ------------------------------------                      -----------------------------------                      ------------------------------------                      -------------------------------------
Ending total education loans, net                                                          $ 11,630,591                           $ 9,509,786                           $ 11,630,591                             $ 9,509,786  
                                                                                        ==== ========== ====================                      ==== ========= ====================                      ==== ========== ====================                      ====== ========= ====================
                                                                                                                                                                                                                                                                      
Average education loans                                                                    $ 11,707,966                                              $ 9,355,797                                              $ 10,998,776                                                $ 8,916,853
_________
(1) Operating efficiency ratio is calculated as total expenses,
excluding restructuring costs, divided by net interest income (after
provision for credit losses) and other income.
(2) As shown here, in 2016 the company will change its calculation
of operating efficiency ratio in future disclosures to investors to
better reflect the ongoing efficiency of the company, as well as to
be more consistent with the calculation used by our peers. The
revised calculation is total expenses, excluding restructuring
costs, divided by net interest income (before provision for credit
losses) and other income, excluding gains on sales of loans.
                                                                                                              
                                                                                       SLM CORPORATION
 
                                                                                 CONSOLIDATED BALANCE SHEETS
                                                                     (In thousands, except share and per share amounts)
                                                                                         (Unaudited)
                                                                                                                                                      
                                                                                                       December 31,                                                December 31,
                                                                                                           2015                                                        2014
                                                                                          --------------------------------------                     ----------------------------------------
Assets
Cash and cash equivalents                                                                     $  2,416,219                                                 $  2,359,780
Available-for-sale investments at fair value (cost of $196,402 and                                 195,391                                                      168,934
$167,740, respectively)
Loans held for investment (net of allowance for losses of $112,507                              11,630,591                                                    9,509,786
and $83,842, respectively)
Restricted cash and investments                                                                     27,980                                                        4,804
Other interest-earning assets                                                                       54,845                                                       72,479
Accrued interest receivable                                                                        564,496                                                      469,697
Premises and equipment, net                                                                         81,273                                                       78,470
Acquired intangible assets, net                                                                      1,745                                                        3,225
Tax indemnification receivable                                                                     186,076                                                      240,311
Other assets                                                                                        55,482                                    64,757  
                                                                                          -------------------------------------                      ---------------------------------------
Total assets                                                                                  $ 15,214,098                              $ 12,972,243  
                                                                                          ===== ========== ====================                      ======= ========== ====================
                                                                                                                                                      
Liabilities
Deposits                                                                                      $ 11,487,707                                                 $ 10,540,555
Short-term borrowings                                                                              500,175                                               --
Long-term borrowings                                                                               579,101                                               --
Income taxes payable, net                                                                          166,662                                                      191,499
Upromise related liabilities                                                                       275,384                                                      293,004
Other liabilities                                                                                  108,746                                   117,227  
                                                                                          -------------------------------------                      ---------------------------------------
Total liabilities                                                                               13,117,775                                11,142,285  
                                                                                          -------------------------------------                      ---------------------------------------
                                                                                                                                                      
Commitments and contingencies
                                                                                                                                                      
Equity
Preferred stock, par value $0.20 per share, 20 million shares
authorized:
  Series A: 3.3 million and 3.3 million shares issued, respectively,                               165,000                                                      165,000
  at stated value of $50 per share
  Series B: 4 million and 4 million shares issued, respectively, at                                400,000                                                      400,000
  stated value of $100 per share
Common stock, par value $0.20 per share, 1.125 billion shares                                       86,136                                                       84,961
authorized: 430.7 million and 424.8 million shares issued,
respectively
Additional paid-in capital                                                                       1,135,860                                                    1,090,511
Accumulated other comprehensive loss (net of tax benefit of $9,949                                 (16,059 )                                                    (11,393 )
and $7,186, respectively)
Retained earnings                                                                                  366,609                                   113,066  
                                                                                          -------------------------------------                      ---------------------------------------
Total SLM Corporation stockholders’ equity before treasury stock                                 2,137,546                                                    1,842,145
Less: Common stock held in treasury at cost: 4.4 million and 1.4                                   (41,223 )                                                    (12,187 )
million shares, respectively
                                                                                          ---------------  --------------------                      -----------------  --------------------
Total equity                                                                                     2,096,323                                 1,829,958  
                                                                                          -------------------------------------                      ---------------------------------------
Total liabilities and equity                                                                  $ 15,214,098                              $ 12,972,243  
                                                                                          ===== ========== ====================                      ======= ========== ====================
                                                                                                                                                                    
                                                                                                                                              SLM CORPORATION
 
                                                                                                                                     CONSOLIDATED STATEMENTS OF INCOME
                                                                                                                                 (In thousands, except per share amounts)
                                                                                                                                                (Unaudited)
                                                                                                                                                                                                            
                                                                                                                               Quarters Ended                                                                                                        Years Ended
                                                                                                                                December 31,                                                                                                        December 31,
                                                                                       -----------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------
                                                                                                       2015                                   2014                                                      2015                                   2014
                                                                                       -------------------------------------                     -------------------------------------                     -------------------------------------                     -------------------------------------
Interest income:
  Loans                                                                                      $ 218,703                                                 $ 174,413                                                 $ 817,120                                                 $ 660,792
  Investments                                                                                    2,501                                                     2,792                                                    10,247                                                     8,913
  Cash and cash equivalents                                                                      1,183                                  1,444                                  3,751                                  4,589  
                                                                                       ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Total interest income                                                                          222,387                                                   178,649                                                   831,118                                                   674,294
Interest expense:
  Deposits                                                                                      29,428                                                    27,973                                                   116,386                                                    95,774
  Interest expense on short-term borrowings                                                      1,771                                            --                                                     6,490                                            --
  Interest expense on long-term borrowings                                                       3,340                                            --                                                     5,738                                            --
  Other interest expense                                                                             2                         --                                      5                                     41  
                                                                                       ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Total interest expense                                                                          34,541                                 27,973                                128,619                                 95,815  
                                                                                       ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Net interest income                                                                            187,846                                                   150,676                                                   702,499                                                   578,479
Less: provisions for credit losses                                                              30,382                                 30,458                                 90,055                                 85,529  
                                                                                       ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Net interest income after provisions for credit losses                                         157,464                                120,218                                612,444                                492,950  
                                                                                       ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Noninterest income:
  Gains on sales of loans, net                                                                  58,484                                                       396                                                   135,358                                                   121,359
  Gains (losses) on derivatives and hedging activities, net                                        953                                                       825                                                     5,300                                                    (3,996 )
  Other                                                                                         12,561                                 11,095                                 41,935                                 39,921  
                                                                                       ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Total noninterest income                                                                        71,998                                 12,316                                182,593                                157,284  
                                                                                       ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Expenses:
  Compensation and benefits                                                                     39,896                                                    36,778                                                   158,975                                                   129,709
  Other operating expenses                                                                      45,349                                 41,946                                190,120                                145,172  
                                                                                       ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
  Total operating expenses                                                                      85,245                                                    78,724                                                   349,095                                                   274,881
  Acquired intangible asset impairment and amortization expense                                    370                                                      (855 )                                                   1,480                                                     3,290
  Restructuring and other reorganization expenses                                                 (913 )                                                  10,483                                  5,398                                 38,311  
                                                                                       ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Total expenses                                                                                  84,702                                 88,352                                355,973                                316,482  
                                                                                       ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Income before income tax expense                                                               144,760                                                    44,182                                                   439,064                                                   333,752
Income tax expense                                                                              54,915                                 24,465                                164,780                                139,967  
                                                                                       ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Net income                                                                                      89,845                                                    19,717                                                   274,284                                                   193,785
Less: net loss attributable to noncontrolling interest                                  --                         --                         --                                   (434 )
                                                                                       ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Net income attributable to SLM Corporation                                                      89,845                                                    19,717                                                   274,284                                                   194,219
Preferred stock dividends                                                                        4,989                                  4,855                                 19,595                                 12,933  
                                                                                       ------------------------------------                      ------------------------------------                      ------------------------------------                      ------------------------------------
Net income attributable to SLM Corporation common stock                                      $  84,856                              $  14,862                              $ 254,689                              $ 181,286  
                                                                                       ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
Basic earnings per common share attributable to SLM Corporation                              $    0.20                              $    0.04                              $    0.60                              $    0.43  
                                                                                       ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
Average common shares outstanding                                                              426,137                                423,325                                425,574                                423,970  
                                                                                       ====================================                      ====================================                      ====================================                      ====================================
Diluted earnings per common share attributable to SLM Corporation                            $    0.20                              $    0.03                              $    0.59                              $    0.42  
                                                                                       ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================
Average common and common equivalent shares outstanding                                        431,531                                432,108                                432,234                                432,269  
                                                                                       ====================================                      ====================================                      ====================================                      ====================================
                                                                                                                                                                   
                                                                                                                                           SLM CORPORATION
 
                                                                                                                           CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                                                                                                                           (In thousands)
                                                                                                                                             (Unaudited)
                                                                                                                                                                                                           
                                                                                                                              Quarters Ended                                                                                                      Years Ended
                                                                                                                               December 31,                                                                                                      December 31,
                                                                                      -----------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------
                                                                                                      2015                                   2014                                                      2015                                 2014
                                                                                      -------------------------------------                     -------------------------------------                     -------------------------------------                     ---------------------------------
Net income                                                                                  $  89,845                                                 $  19,717                                                 $ 274,284                                             $ 193,785
Other comprehensive income (loss):
  Unrealized (losses) gains on investments                                                     (1,706 )                                                   2,437                                                    (2,205 )                                               6,066
  Unrealized gains (losses) on cash flow hedges                                                14,060                                (17,889 )                                                  (5,224 )                                             (19,772 )
                                                                                      ------------------------------------                      ------------------------------------                      ------------------------------------                      --------------------------------
Total unrealized gains (losses)                                                                12,354                                                   (15,452 )                                                  (7,429 )                                             (13,706 )
  Income tax (expense) benefit                                                                 (4,898 )                                                   5,911                                  2,763                              5,337  
                                                                                      ------------------------------------                      ------------------------------------                      ------------------------------------                      --------------------------------
Other comprehensive gains (losses), net of tax (expense) benefit                                7,456                                 (9,541 )                                                  (4,666 )                                              (8,369 )
                                                                                      ------------------------------------                      ------------------------------------                      ------------------------------------                      --------------------------------
Comprehensive income                                                                           97,301                                                    10,176                                                   269,618                                               185,416
Less: comprehensive loss attributable to noncontrolling interest                       --                         --                         --                               (434 )
                                                                                      ------------------------------------                      ------------------------------------                      ------------------------------------                      --------------------------------
Total comprehensive income attributable to SLM Corporation                                  $  97,301                              $  10,176                              $ 269,618                          $ 185,850  
                                                                                      ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      === ======= ====================
 
Core Earnings" to GAAP Reconciliation
 
The following table reflects adjustments associated with our
derivative activities.
                                                                                                                                                                                                                    
                                                                                                                                                                               Quarters Ended                                                                                                      Years Ended
                                                                                                                                                                                December 31,                                                                                                      December 31,
                                                                                                                                       -----------------------------------------------------------------------------------------------                     ------------------------------------------------------------------------------------------
(Dollars in thousands, except per share                                                                                                                2015                                   2014                                                      2015                                 2014
amounts)
-----------------------------------------------------------------------------------------------------------------                      ----------------------------------                        ----------------------------------                        ----------------------------------                        ------------------------------
                                                                                                                                                                                                                                                                                                                      
"Core Earnings" adjustments to GAAP:
GAAP net income attributable to SLM Corporation                                                                                              $  89,845                                                 $  19,717                                                 $ 274,284                                                    $              194,219
Preferred stock dividends                                                                                                                        4,989                                  4,855                                 19,595                                                 12,933
                                                                                                                                       ------------------------------------                      ------------------------------------                      ------------------------------------                      --------------------------------
GAAP net income attributable to SLM Corporation common stock                                                                                 $  84,856                              $  14,862                              $ 254,689                                 $              181,286
                                                                                                                                       ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ========== ====================
                                                                                                                                                                                                                                                                                                                      
Adjustments:
Net impact of derivative accounting(1)                                                                                                            (348 )                                                      62                                                    (1,849 )                                                                   1,746
Net tax effect(2)                                                                                                                                 (124 )                                                      24                                   (711 )                                                                     659
                                                                                                                                       ------------------------------------                      ------------------------------------                      ------------------------------------                      --------------------------------
Total "Core Earnings" adjustments to GAAP                                                    (224 )                                                      38                                 (1,138 )                                                                   1,087
                                                                                                                                       ------------------------------------                      ------------------------------------                      ------------------------------------                      --------------------------------
                                                                                                                                                                                                                                                                                                                      
"Core Earnings" attributable to SLM Corporation common stock                            $  84,632                              $  14,900                              $ 253,551                                 $              182,373
                                                                                                                                       ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ========== ====================
                                                                                                                                                                                                                                                                                                                      
GAAP diluted earnings per common share                                                                                                       $    0.20                                                 $    0.03                                                 $    0.59                                                    $                 0.42
Derivative adjustments, net of tax                                                                                                      --                         --                         --                                         --
                                                                                                                                       ------------------------------------                      ------------------------------------                      ------------------------------------                      --------------------------------
"Core Earnings" diluted earnings per common share                                       $    0.20                              $    0.03                              $    0.59                                 $                 0.42
                                                                                                                                       ======= ======= ====================                      ======= ======= ====================                      ======= ======= ====================                      ========== ====================
                                                                                                                                                                                                                                                                                                                                 
______
(1)   Derivative Accounting: "Core Earnings" exclude periodic unrealized
                         gains and losses caused by the mark-to-market valuations on
                         derivatives that do not qualify for hedge accounting treatment under
                         GAAP, as well as the periodic unrealized gains and losses that are a
                         result of ineffectiveness recognized related to effective hedges
                         under GAAP. Under GAAP, for our derivatives held to maturity, the
                         cumulative net unrealized gain or loss over the life of the contract
                         will equal $0.
                          
(2)                      "Core Earnings" tax rate is based on the effective tax rate at the
                         Bank where the derivative instruments are held.
                          
 
Average Balance Sheets - GAAP
 
The following table reflects the rates earned on interest-earning
assets and paid on interest-bearing liabilities and reflects our net
interest margin on a consolidated basis.
                                                                                                                                                                                                                                        
                                                                                                                                                   Quarters Ended                                                                                                                                                                                                           Years Ended
                                                                                                                                                    December 31,                                                                                                                                                                                                           December 31,
                                                           -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                   2015                                                                                   2014                                                                                                      2015                                                                                      2014
                                                           -------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------
(Dollars in thousands)                                                     Balance                            Rate                                                Balance                            Rate                                                Balance                            Rate                                                Balance                               Rate
-------------------------------------                      -----------------------------------                        ------------------------                       -----------------------------------                        ------------------------                       -----------------------------------                        ------------------------                       -----------------------------------                        ------------------------------
Average Assets
Private Education Loans                                        $ 10,578,001                                           7.84                    %                          $  8,062,977                                           8.07                    %                          $  9,819,053                                           7.93                    %                          $  7,563,356                                                 8.16                    %
FFELP Loans                                                       1,129,965                                           3.35                                                  1,292,820                                           3.21                                                  1,179,723                                           3.26                                                  1,353,497                                                 3.24
Taxable securities                                                  390,110                                           2.54                                                    407,408                                           2.72                                                    395,720                                           2.59                                                    331,479                                                 2.68
Cash and other short-term investments                             1,502,267                        0.31                               2,159,088                        0.27                               1,423,090                        0.26                               1,746,839                              0.26  
                                                           -------------------------------------                      ---- --------------------                      -------------------------------------                      ---- --------------------                      -------------------------------------                      ---- --------------------                      -------------------------------------                      ---------- --------------------
Total interest-earning assets                                    13,600,343                                           6.49                    %                            11,922,293                                           5.94                    %                            12,817,586                                           6.48                    %                            10,995,171                                                 6.13                    %
                                                                                                                      ==== ====================                                                                                 ==== ====================                                                                                 ==== ====================                                                                                 ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Non-interest-earning assets                                         697,638                                                                                614,105                                                                                660,621                                                                                549,237  
                                                           -------------------------------------                                                                     -------------------------------------                                                                     -------------------------------------                                                                     -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Total assets                                                   $ 14,297,981                                                                           $ 12,536,398                                                                           $ 13,478,207                                                                           $ 11,544,408  
                                                           ===== ========== ====================                                                                     ===== ========== ====================                                                                     ===== ========== ====================                                                                     ===== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Average Liabilities and Equity
Brokered deposits                                              $  6,764,673                                           1.16                    %                          $  6,171,293                                           1.22                    %                          $  6,640,078                                           1.19                    %                          $  5,588,569                                                 1.12                    %
Retail and other deposits                                         3,964,095                                           0.96                                                  3,809,375                                           0.93                                                  3,862,879                                           0.95                                                  3,593,817                                                 0.92
Other interest-bearing liabilities                                  907,342                        2.29                                  17,068                        2.72                                 399,907                        3.27                                  26,794                              0.91  
                                                           -------------------------------------                      ---- --------------------                      -------------------------------------                      ---- --------------------                      -------------------------------------                      ---- --------------------                      -------------------------------------                      ---------- --------------------
Total interest-bearing liabilities                               11,636,110                                           1.18                    %                             9,997,736                                           1.11                    %                            10,902,864                                           1.18                    %                             9,209,180                                                 1.04                    %
                                                                                                                      ==== ====================                                                                                 ==== ====================                                                                                 ==== ====================                                                                                 ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Non-interest-bearing liabilities                                    606,490                                                                                                   718,365                                                                                                   622,983                                                                                                   727,806
Equity                                                            2,055,381                                                                              1,820,297                                                                              1,952,360                                                                              1,607,422  
                                                           -------------------------------------                                                                     -------------------------------------                                                                     -------------------------------------                                                                     -------------------------------------
Total liabilities and equity                                   $ 14,297,981                                                                           $ 12,536,398                                                                           $ 13,478,207                                                                           $ 11,544,408  
                                                           ===== ========== ====================                                                                     ===== ========== ====================                                                                     ===== ========== ====================                                                                     ===== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                     
Net interest margin                                                                                                   5.48                    %                                                                                 5.01                    %                                                                                 5.48                    %                                                                                       5.26                    %
                                                                                                                      ==== ====================                                                                                 ==== ====================                                                                                 ==== ====================                                                                                 ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                
 
Earnings per Common Share
                                                                                                                                                                 
                                                                                                                                 Quarters Ended                                                                                               Years Ended
                                                                                                                                  December 31,                                                                                               December 31,
                                                                                              -------------------------------------------------------------------------------------                     --------------------------------------------------------------------------------------
(In thousands, except per share data)                                                                       2015                              2014                                                 2015                               2014
------------------------------------------------------------------------                      -----------------------------                        -----------------------------                        ------------------------------                        ------------------------------
Numerator:
Net income attributable to SLM Corporation                                                      $ 89,845                                             $ 19,717                                             $ 274,284                                                    $              194,219
Preferred stock dividends                                                                          4,989                             4,855                             19,595                                                 12,933
                                                                                              -------------------------------                      -------------------------------                      --------------------------------                      --------------------------------
Net income attributable to SLM Corporation common stock                                         $ 84,856                          $ 14,862                          $ 254,689                                 $              181,286
                                                                                              === ====== ====================                      === ====== ====================                      === ======= ====================                      ========== ====================
Denominator:
Weighted average shares used to compute basic EPS                                                426,137                                              423,325                                               425,574                                                                   423,970
Effect of dilutive securities:
    Dilutive effect of stock options, restricted stock, restricted stock                           5,214                             8,783                              6,660                                                  8,299
    units and Employee Stock Purchase Plan
                                                                                              ---------  --------------------                      ---------  --------------------                      ----------  --------------------                      ------------------------------
Weighted average shares used to compute diluted EPS                                              431,351                           432,108                            432,234                                                432,269
                                                                                              ===============================                      ===============================                      ================================                      ================================
                                                                                                                                                                                                                                                               
Basic earnings per common share attributable to SLM Corporation:                                $   0.20                          $   0.04                          $    0.60                                 $                 0.43
                                                                                              === ====== ====================                      === ====== ====================                      === ======= ====================                      ========== ====================
                                                                                                                                                                                                                                                               
Diluted earnings per common share attributable to SLM Corporation:                              $   0.20                          $   0.03                          $    0.59                                 $                 0.42
                                                                                              === ====== ====================                      === ====== ====================                      === ======= ====================                      ========== ====================
                                                                                                                                                                                                                                                                          
 
Allowance for Loan Losses Metrics
                                                                                                                                                                                                                                    Quarters Ended
                                                                                                                                                                                                                                                        December 31,
                                                                                   ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                 2015                                                                                                                                                              2014
                                                                                   ----------------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                            Private Education                                                                                                                             Private Education           
(Dollars in thousands)                                                                              FFELP Loans                                                      Loans                                                     Total                                                     FFELP Loans                                                     Loans                                                      Total
-------------------------------------------------------------                      -----------------------------------------                        -----------------------------------                        ---------------------------------                        -----------------------------------------                        ----------------------------------                        -----------------------------------
Allowance for Loan Losses:
Beginning balance                                                                        $          4,170                                               $    100,033                                             $    104,203                                                 $          5,742                                               $    59,973                                                $    65,715
  Total provision                                                                                     (39 )                                                   28,715                                                   28,676                                                              464                                                    29,994                                                     30,458
  Net charge-offs:
    Charge-offs                                                                                      (440 )                                                  (19,231 )                                                (19,671 )                                                           (938 )                                                 (10,056 )                                                  (10,994 )
    Recoveries                                                                             --                                   1,291                                 1,291                                --                                  1,147                                   1,147  
                                                                                   -------------------------------------------                      -------------------------------------                      -----------------------------------                      -------------------------------------------                      ------------------------------------                      -------------------------------------
  Net charge-offs                                                                                    (440 )                                                  (17,940 )                                                (18,380 )                                                           (938 )                                                  (8,909 )                                                   (9,847 )
  Loan sales(1)                                                                            --                                  (1,992 )                                                 (1,992 )                                                 --                                 (2,484 )                                                   (2,484 )
                                                                                   -------------------------------------------                      -------------------------------------                      -----------------------------------                      -------------------------------------------                      ------------------------------------                      -------------------------------------
Ending Balance                                                                           $          3,691                            $    108,816                          $    112,507                              $          5,268                            $    78,574                             $    83,842  
                                                                                   ======= ============== ====================                      ===== ========== ====================                      === ========== ====================                      ======= ============== ====================                      ===== ========= ====================                      ====== ========= ====================
Allowance:
Ending balance: individually evaluated for impairment                                    $ --                                               $     43,480                                             $     43,480                                                 $ --                                               $     9,815                                                $     9,815
Ending balance: collectively evaluated for impairment                                    $          3,691                                               $     65,336                                             $     69,027                                                 $          5,268                                               $    68,759                                                $    74,027
Loans:
Ending balance: individually evaluated for impairment                                    $ --                                               $    265,831                                             $    265,831                                                 $ --                                               $    59,402                                                $    59,402
Ending balance: collectively evaluated for impairment                                    $      1,115,663                                               $ 10,330,606                                             $ 11,446,269                                                 $      1,264,807                                               $ 8,251,974                                                $ 9,516,781
Net charge-offs as a percentage of average loans in repayment                                        0.21 %                                                     1.08 %                                                                                                                    0.40 %                                                    0.72 %
(annualized)(2)
Allowance as a percentage of the ending total loan balance                                           0.33 %                                                     1.03 %                                                                                                                    0.42 %                                                    0.95 %
Allowance as a percentage of the ending loans in repayment                                           0.45 %                                                     1.57 %                                                                                                                    0.57 %                                                    1.53 %
Allowance coverage of net charge-offs (annualized)                                                   2.10                                                       1.52                                                                                                                      1.40                                                      2.20
Ending total loans, gross                                                                $      1,115,663                                               $ 10,596,437                                                                                                          $      1,264,807                                               $ 8,311,376
Average loans in repayment(2)                                                            $        823,940                                               $  6,646,604                                                                                                          $        930,336                                               $ 4,930,742
Ending loans in repayment(2)                                                             $        813,815                                               $  6,927,266                                                                                                          $        926,891                                               $ 5,149,215
                                                                                                                                                                                                                                                                                                                                                                                                    
 ________
(1)         Represents fair value adjustments on loans sold.
                                
(2)                            Loans in repayment include loans making interest only and fixed
                               payments as well as loans that have entered full principal and
                               interest repayment status.
                                
                                                                  
                                                                                                                                                                                                                                                            Years Ended
                                                                                                                                                                                                                                                           December 31,
                                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                    2015                                                                                                                                                              2014
                                                                                      ----------------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                               Private Education                                                                                                                             Private Education           
(Dollars in thousands)                                                                                 FFELP Loans                                                      Loans                                                     Total                                                     FFELP Loans                                                     Loans                                                      Total
----------------------------------------------------------------                      -----------------------------------------                        -----------------------------------                        ---------------------------------                        -----------------------------------------                        ----------------------------------                        -----------------------------------
Allowance for Loan Losses:
Beginning balance                                                                           $          5,268                                               $     78,574                                             $     83,842                                                 $          6,318                                               $    61,763                                                $    68,081
  Total provision                                                                                      1,005                                                     87,344                                                   88,349                                                            1,946                                                    83,583                                                     85,529
  Net charge-offs:
    Charge-offs(1)                                                                                    (2,582 )                                                  (55,357 )                                                (57,939 )                                                         (2,996 )                                                 (14,442 )                                                  (17,438 )
    Recoveries                                                                                --                                   5,820                                 5,820                                --                                  1,155                                   1,155  
                                                                                      -------------------------------------------                      -------------------------------------                      -----------------------------------                      -------------------------------------------                      ------------------------------------                      -------------------------------------
  Net charge-offs                                                                                     (2,582 )                                                  (49,537 )                                                (52,119 )                                                         (2,996 )                                                 (13,287 )                                                  (16,283 )
  Loan sales(2)                                                                               --                                  (7,565 )                                                 (7,565 )                                                 --                                (53,485 )                                                  (53,485 )
                                                                                      -------------------------------------------                      -------------------------------------                      -----------------------------------                      -------------------------------------------                      ------------------------------------                      -------------------------------------
Ending Balance                                                                              $          3,691                            $    108,816                          $    112,507                              $          5,268                            $    78,574          $    83,842  
                                                                                      ======= ============== ====================                      ===== ========== ====================                      === ========== ====================                      ======= ============== ====================                      ===== ========= ====================                      ====== ========= ====================
Allowance:
Ending balance: individually evaluated for impairment                                       $ --                                               $     43,480                                             $     43,480                                                 $ --                                               $     9,815                                                $     9,815
Ending balance: collectively evaluated for impairment                                       $          3,691                                               $     65,336                                             $     69,027                                                 $          5,268                                               $    68,759                                                $    74,027
Loans:
Ending balance: individually evaluated for impairment                                       $ --                                               $    265,831                                             $    265,831                                                 $ --                                               $    59,402                                                $    59,402
Ending balance: collectively evaluated for impairment                                       $      1,115,663                                               $ 10,330,606                                             $ 11,446,269                                                 $      1,264,807                                               $ 8,251,974                                                $ 9,516,781
Net charge-offs as a percentage of average loans in repayment(3)                                        0.30 %                                                     0.82 %                                                                                                                    0.31 %                                                    0.30 %
Allowance as a percentage of the ending total loan balance                                              0.33 %                                                     1.03 %                                                                                                                    0.42 %                                                    0.95 %
Allowance as a percentage of the ending loans in repayment                                              0.45 %                                                     1.57 %                                                                                                                    0.57 %                                                    1.53 %
Allowance coverage of net charge-offs                                                                   1.43                                                       2.20                                                                                                                      1.76                                                      5.91
Ending total loans, gross                                                                   $      1,115,663                                               $ 10,596,437                                                                                                          $      1,264,807                                               $ 8,311,376
Average loans in repayment(3)                                                               $        857,359                                               $  6,031,741                                                                                                          $        972,390                                               $ 4,495,709
Ending loans in repayment(3)                                                                $        813,815                                               $  6,927,266                                                                                                          $        926,891                                               $ 5,149,215
                                                                                                                                                                                                                                                                                                                                                                                                       
______
(1)   Prior to the spin-off, the company sold all loans greater than 90
                         days delinquent to an entity that is now a subsidiary of Navient
                         Corporation, prior to being charged-off. Consequently, many of the
                         pre-spin-off, historical credit indicators and period-over-period
                         trends are not comparable and may not be indicative of future
                         performance.
                          
(2)                      Represents fair value adjustments on loans sold.
                          
(3)                      Loans in repayment include loans making interest only and fixed
                         payments as well as loans that have entered full principal and
                         interest repayment status.
                          
 
Private Education Loan Key Credit Quality Indicators
                                                                                                                                                                  December 31,
                                                                                         ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                  2015                                                                                     2014
                                                                                         --------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------
(Dollars in thousands)                                                                                Balance(1)                        % of Balance                                          Balance(1)                         % of Balance
-------------------------------------------------------------------                      ----------------------------------                        --------------------------                       ---------------------------------                        ------------------------------
                                                                                                                                                                                                                                                              
Cosigners:
  With cosigner                                                                             $  9,515,136                                               90 %                                            $ 7,465,339                                                   90 %
  Without cosigner                                                                             1,081,301                            10                               846,037                                10  
                                                                                         ------------------------------------                      ------ --------------------                      -----------------------------------                      ---------- --------------------
Total                                                                                       $ 10,596,437                           100 %                                            $ 8,311,376                               100 %
                                                                                         ==== ========== ====================                      ====== ====================                      ==== ========= ====================                      ========== ====================
                                                                                                                                                                                                                                                              
FICO at Origination(2):
  Less than 670                                                                             $    700,779                                                7 %                                            $   558,801                                                    7 %
   670-699                            1,554,959                                               15                                                1,227,860                                                   15
   700-749                            3,403,823                                               32                                                2,626,238                                                   32
  Greater than or equal to 750                                                                 4,936,876                            46                             3,898,477                                46  
                                                                                         ------------------------------------                      ------ --------------------                      -----------------------------------                      ---------- --------------------
Total                                                                                       $ 10,596,437                           100 %                                            $ 8,311,376                               100 %
                                                                                         ==== ========== ====================                      ====== ====================                      ==== ========= ====================                      ========== ====================
                                                                                                                                                                                                                                                              
Seasoning(3):
  1-12 payments                                                                             $  3,059,901                                               29 %                                            $ 2,373,117                                                   29 %
  13-24 payments                                                                               2,096,412                                               20                                                1,532,042                                                   18
  25-36 payments                                                                               1,084,818                                               10                                                  755,143                                                    9
  37-48 payments                                                                                 513,125                                                5                                                  411,493                                                    5
  More than 48 payments                                                                          414,217                                                4                                                  212,438                                                    3
  Not yet in repayment                                                                         3,427,964                            32                             3,027,143                                36  
                                                                                         ------------------------------------                      ------ --------------------                      -----------------------------------                      ---------- --------------------
Total                                                                                       $ 10,596,437                           100 %                                            $ 8,311,376                               100 %
                                                                                         ==== ========== ====================                      ====== ====================                      ==== ========= ====================                      ========== ====================
                                                                                                                                                                                                                                                                         
______
(1)   Balance represents gross Private Education Loans.
                          
(2)                      Average FICO at origination was 744 and 748 for the quarters ended
                         December 31, 2015 and 2014, respectively, and 748 and 749 for the
                         years ended December 31, 2015 and 2014, respectively.
                          
(3)                      Number of months in active repayment (whether interest only payment,
                         fixed payment or full principal and interest payment status) for
                         which a scheduled payment was due.
                          
 
Private Education Loan Delinquencies
 
The following table provides information regarding the loan status
of our Private Education Loans and the aging of our past due Private
Education Loans. Loans in repayment include loans making interest
only and fixed payments as well as loans that have entered full
principal and interest repayment status.
 
                                                                                                                                                                                                                  
                                                                                                                                                                                                                                            Private Education Loans
                                                                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                                                 December 31,
                                                                                                         ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                    2015                                                                                                                                                               2014
                                                                                                         --------------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                                                          Balance                                                                              %                                                                              Balance                                                                             %
--------------------------------------------------------------                                           --------------------------------------------------                                             -------------------------                                            -------------------------------------------------                                             -------------------------
Loans in-school/grace/deferment(1)                                                                                          $  3,427,964                                                                                                                                                        $ 3,027,143
Loans in forbearance(2)                                                                                                          241,207                                                                                                                                                            135,018
Loans in repayment and percentage of each status:
     Loans current                                                                                                             6,773,095                                                                 97.8 %                                                                                   5,045,600                                                                 98.0 %
     Loans delinquent 31-60 days(3)                                                                                               91,129                                                                  1.3                                                                                        63,873                                                                  1.2
     Loans delinquent 61-90 days(3)                                                                                               42,048                                                                  0.6                                                                                        29,041                                                                  0.6
     Loans delinquent greater than 90 days(3)                                                                  20,994                                               0.3                                                  10,701                                               0.2  
                                                                                                         -------------------- ---------- --------------------                                           ----- --------------------                                           -------------------- --------- --------------------                                           ----- --------------------
Total loans in repayment                                                                                    6,927,266                                             100.0 %                                                                5,149,215                                             100.0 %
                                                                                                         -------------------- ---------- --------------------                                           ===== ====================                                           -------------------- --------- --------------------                                           ===== ====================
Total loans, gross                                                                                                            10,596,437                                                                                                                                                          8,311,376
Deferred origination costs                                                                                     27,884                                                                                                                       13,845  
                                                                                                         -------------------- ---------- --------------------                                                                                                                -------------------- --------- --------------------
Total loans                                                                                                                   10,624,321                                                                                                                                                          8,325,221
Allowance for losses                                                                                         (108,816 )                                                                                                                                       (78,574 )
                                                                                                         -------------------- ---------- --------------------                                                                                                                -------------------- --------- --------------------
Total loans, net                                                                                                            $ 10,515,505                                                                                                                                     $ 8,246,647  
                                                                                                         ==================== ========== ====================                                                                                                                ==================== ========= ====================
Percentage of loans in repayment                                                                                                                                                                         65.4 %                                                                                                                                                             62.0 %
                                                                                                                                                                                                        ===== ====================                                                                                                                                         ===== ====================
Delinquencies as a percentage of loans in repayment                                                                                                                                                       2.2 %                                                                                                                                                              2.0 %
                                                                                                                                                                                                        ===== ====================                                                                                                                                         ===== ====================
Loans in forbearance as a percentage of loans in repayment and                                                                                                                                            3.4 %                                                                                                                                                              2.6 %
forbearance
                                                                                                                                                                                                        ===== ====================                                                                                                                                         ===== ====================
                                                                                                                                                                                                                                                                                                                                                                                  
_______
(1)   Deferment includes customers who have returned to school or are
                         engaged in other permitted educational activities and are not yet
                         required to make payments on the loans (e.g., residency periods for
                         medical students or a grace period for bar exam preparation).
                          
(2)                      Loans for customers who have requested extension of grace period
                         generally during employment transition or who have temporarily
                         ceased making full payments due to hardship or other factors,
                         consistent with established loan program servicing policies and
                         procedures.
                          
(3)                      The period of delinquency is based on the number of days scheduled
                         payments are contractually past due.
                          
At December 31, 2015 and 2014, 35 percent and 28 percent,
respectively, of our portfolio of Private Education Loans had
entered full principal and interest repayment status after any
applicable grace periods.
 
                                                      
Summary of Our Education Loan Portfolio
Ending Education Loan Balances, net
                                                                                              
                                                                                              
                                                                                                                                                                                                                                                                                                                                  December 31,
                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                    2015                                                                                                                                                                                                                                                 2014
                                                                                             ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                                              Private                                                   FFELP                                                   Total                                                                                         Private                                                  FFELP                                                   Total
                                                                                                                   Education                                                                                        Loans                                                                                       Portfolio                                                                                      Education                                                                                       Loans                                                                                       Portfolio
                                                                                                                     Loans                                                                                                                                                                                                                                                                                       Loans
--------------------------------------------------                                           --------------------------------------------------                                             -------------------------------------------------                                             --------------------------------------------------                                             -------------------------------------------------                                             -------------------------------------------------                                             -------------------------------------------------
Total education loan portfolio:
     In-school(1)                                                                                               $  2,823,035                                                                                   $       582                                                                                   $  2,823,617                                                                                   $ 2,548,721                                                                                   $     1,185                                                                                   $ 2,549,906
     Grace, repayment and other(2)                                                              7,773,402                                               1,115,081                                                8,888,483                                               5,762,655                                               1,263,622                                               7,026,277  
                                                                                             -------------------- ---------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------
Total, gross                                                                                                      10,596,437                                                                                     1,115,663                                                                                     11,712,100                                                                                     8,311,376                                                                                     1,264,807                                                                                     9,576,183
Deferred origination costs and unamortized premium                                                                    27,884                                                                                         3,114                                                                                         30,998                                                                                        13,845                                                                                         3,600                                                                                        17,445
Allowance for loan losses                                                                        (108,816 )                                                                   (3,691 )                                                                  (112,507 )                                                                  (78,574 )                                                                   (5,268 )                                                                  (83,842 )
                                                                                             -------------------- ---------- --------------------                                           -------------------- --------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------                                           -------------------- --------- --------------------
Total education loan portfolio                                                                                  $ 10,515,505                                                                $ 1,115,086                                                                $ 11,630,591                                                                $ 8,246,647                                                                $ 1,263,139                                                                $ 9,509,786  
                                                                                             ==================== ========== ====================                                           ==================== ========= ====================                                           ==================== ========== ====================                                           ==================== ========= ====================                                           ==================== ========= ====================                                           ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
% of total                                                                                                                90 %                                                                                          10 %                                                                                          100 %                                                                                          87 %                                                                                          13 %                                                                                         100 %
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
(1)   Loans for customers still attending school and who are not yet
                         required to make payments on the loan.
(2)                      Includes loans in deferment or forbearance.
                          
                                                                                                                                                                                                                                              
Average Education Loan Balances (net of unamortized
premium/discount)
 
 
                                                                                                                                                                  Quarters Ended                                                                                                                                                                                                                                           Years Ended
                                                                                                                                                                   December 31,                                                                                                                                                                                                                                           December 31,
                                                                  -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                        ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                                   2015                                                                                   2014                                                                                                                        2015                                                                                2014
-----------------------                                           -----------------------------------------------------------------------------                                                ----------------------------------------------------------------------------                                                -----------------------------------------------------------------------------                                                ------------------------------------------------------------------------
Private Education Loans                                              $ 10,578,001      90 %                                                                 $ 8,062,977      86 %                                                                 $  9,819,053      89 %                                                              7,563,356      85 %
FFELP Loans                                                             1,129,965                                            10                                                  1,292,820                                            14                                                   1,179,723                                            11                                             1,353,497                                            15  
                                                                  ----------------                                          --- --------------------                                           ---------------                                          --- --------------------                                           ----------------                                          --- --------------------                                           ---------                                           --- --------------------
Total portfolio                                                      $ 11,707,966                                           100 %                                                                 $ 9,355,797                                           100 %                                                                 $ 10,998,776                                           100 %                                                              8,916,853                                           100 %
                                                                  ==== ==========                                           === ====================                                           ==== =========                                           === ====================                                           ==== ==========                                           === ====================                                           =========                                           === ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 
 
Education Loan Activity
 
 
                                                                                                                                                                                                                                                                                                    Quarters Ended
                                                                                                                                                                                                                                                                                                                                          December 31,
                                                                                                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                              2015                                                                                                                                                                                                                                                       2014
                                                                                                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                                                      Private                                                     FFELP                                                      Total                                                                                         Private                                                     FFELP                                                      Total
                                                                                                                           Education                                                                                          Loans                                                                                          Portfolio                                                                                      Education                                                                                          Loans                                                                                          Portfolio
                                                                                                                             Loans                                                                                                                                                                                                                                                                                            Loans
----------------------------------------------------------                                           --------------------------------------------------                                             ------------------------------------------------------                                             --------------------------------------------------                                             --------------------------------------------------                                             ------------------------------------------------------                                             --------------------------------------------------
Beginning balance                                                                                                       $ 10,766,511                                                                                   $      1,142,637                                                                                   $ 11,909,148                                                                                   $  7,779,422                                                                                   $      1,315,951                                                                                   $  9,095,373
Acquisitions and originations                                                                                                579,705                                                                                     --                                                                                        579,705                                                                                        559,043                                                                                     --                                                                                        559,043
Capitalized interest and deferred origination cost premium                                                                   120,676                                                                                              9,420                                                                                        130,096                                                                                         84,076                                                                                              9,932                                                                                         94,008
amortization
Sales                                                                                                                       (698,795 )                                                                                   --                                                                                       (698,795 )                                                                                       (7,212 )                                                                                   --                                                                                         (7,212 )
Loan consolidation to third parties                                                                                          (33,511 )                                                                                           (8,824 )                                                                                      (42,335 )                                                                                       (1,742 )                                                                                          (13,197 )                                                                                      (14,939 )
Repayments and other                                                                                     (219,081 )                                                                       (28,147 )                                                                  (247,228 )                                                                  (166,940 )                                                                       (49,547 )                                                                  (216,487 )
                                                                                                     -------------------- ---------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------- --------------------
Ending balance                                                                                                          $ 10,515,505                                                                $      1,115,086                                                                $ 11,630,591                                                                $  8,246,647                                                                $      1,263,139                                                                $  9,509,786  
                                                                                                     ==================== ========== ====================                                           ==================== ============== ====================                                           ==================== ========== ====================                                           ==================== ========== ====================                                           ==================== ============== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                      
                                                                                                      
                                                                                                                                                                                                                                                                                                                                          Years Ended
                                                                                                                                                                                                                                                                                                                                          December 31,
                                                                                                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                                                                              2015                                                                                                                                                                                                                                                                                             2014
                                                                                                     ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                          ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                                                      Private                                                                                           FFELP                                                                                            Total                                                                                         Private                                                                                           FFELP                                                                                            Total
                                                                                                                           Education                                                                                          Loans                                                                                          Portfolio                                                                                      Education                                                                                          Loans                                                                                          Portfolio
                                                                                                                             Loans                                                                                                                                                                                                                                                                                            Loans
----------------------------------------------------------                                           --------------------------------------------------                                             ------------------------------------------------------                                             --------------------------------------------------                                             --------------------------------------------------                                             ------------------------------------------------------                                             --------------------------------------------------
Beginning balance                                                                                                       $  8,246,647                                                                                   $      1,263,139                                                                                   $  9,509,786                                                                                   $  6,506,642                                                                                   $      1,424,735                                                                                   $  7,931,377
Acquisitions and originations                                                                                              4,366,651                                                                                     --                                                                                      4,366,651                                                                                      4,087,320                                                                                              7,470                                                                                      4,094,790
Capitalized interest and deferred origination cost premium                                                                   239,330                                                                                             39,743                                                                                        279,073                                                                                        170,306                                                                                             46,093                                                                                        216,399
amortization
Sales                                                                                                                     (1,412,015 )                                                                                   --                                                                                     (1,412,015 )                                                                                   (1,873,414 )                                                                                           (7,654 )                                                                                   (1,881,068 )
Loan consolidation to third parties                                                                                          (75,369 )                                                                                          (43,087 )                                                                                     (118,456 )                                                                                      (14,811 )                                                                                          (41,760 )                                                                                      (56,571 )
Repayments and other                                                                                     (849,739 )                                                                      (144,709 )                                                                  (994,448 )                                                                  (629,396 )                                                                      (165,745 )                                                                  (795,141 )
                                                                                                     -------------------- ---------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------- --------------------
Ending balance                                                                                                          $ 10,515,505                                                                $      1,115,086                                                                $ 11,630,591                                                                $  8,246,647                                                                $      1,263,139                                                                $  9,509,786  
                                                                                                     ==================== ========== ====================                                           ==================== ============== ====================                                           ==================== ========== ====================                                           ==================== ========== ====================                                           ==================== ============== ====================                                           ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
                                                                                                                                                                                                                                                                                                             
Private Education Loan Originations
 
The following table summarizes our Private Education Loan
originations.
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               
                                                                                                                                                                                                             Quarters Ended                                                                                                                                                                                                                                                                                                Years Ended
                                                                                                                                                                                                              December 31,                                                                                                                                                                                                                                                                                                December 31,
                                                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                          2015                                                                         %                                                                       2014                                                                         %                                                                        2015                                                                          %                                                                        2014                                                                          %
-----------------------------------------                                           ---------------------------                                            ----------------------------------                                            ---------------------------                                            ----------------------------------                                            -----------------------------                                            ----------------------------------                                            -----------------------------                                            ----------------------------------
Smart Option - interest only(1)                                                                        $ 142,231                                                       25 %                                                                                 $ 138,141                                                       25 %                                                                                 $ 1,075,260                                                       25 %                                                                                 $   998,612                                                       25 %
Smart Option - fixed pay(1)                                                                              186,354                                                       32                                                                                     169,048                                                       30                                                                                     1,350,680                                                       31                                                                                     1,256,978                                                       31
Smart Option - deferred(1)                                                                               245,869                                                       43                                                                                     247,444                                                       45                                                                                     1,902,729                                                       44                                                                                     1,817,011                                                       44
Smart Option - principal and interest                                                     383                                           --                                                 2,059                                           --                                                   1,727                                           --                                                   3,347                                           --  
                                                                                    -------------------- -------                                           -------------- --------------------                                           -------------------- -------                                           -------------- --------------------                                           -------------------- ---------                                           -------------- --------------------                                           -------------------- ---------                                           -------------- --------------------
Total Private Education Loan originations                                                              $ 574,837                                                      100 %                                                                                 $ 556,692                                                      100 %                                                                                 $ 4,330,396                                                      100 %                                                                4,075,948                                                      100 %
                                                                                    ==================== =======                                           ============== ====================                                           ==================== =======                                           ============== ====================                                           ==================== =========                                           ============== ====================                                           ==================== =========                                           ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
(1)   Interest only, fixed pay and deferred describe the payment option
                         while in school or in grace period.
                          
                                 
Deposits
                                                                         
Interest bearing deposits are summarized as follows:
                                                                         
                                                                         
                                                                                                                                                                                   December 31,
                                                                        ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                  2015                                                                                            2014
                                                                        -----------------------------------------------------------------------------------------                                          -----------------------------------------------------------------------------------------------
(Dollars in thousands)                                                               Amount                    Year-End                                                           Amount                       Year-End
                                                                                                                                                     Weighted                                                                                                                              Weighted
                                                                                                                                                      Average                                                                                                                               Average
                                                                                                                                                  Stated Rate(1)                                                                                                                        Stated Rate(1)
-----------------------------                                           ------------------------------                                            -------------                                            ------------------------------                                            -------------------
                                                                                                                                                                                                                                                                                      
Money market                                                                               $  4,886,299                                              1.19 %                                                                   $  4,527,448                                                 1.15 %
Savings                                                                                         669,254                                              0.82 %                                                                        703,687                                                 0.81 %
Certificates of deposit                                                    5,931,453                                              0.98 %                                                   5,308,818                                                 1.00 %
                                                                        -------------------- ----------                                                                                                    -------------------- ----------
  Deposits - interest bearing                                                              $ 11,487,006                                                                                                                       $ 10,539,953
                                                                        ==================== ==========                                                                                                    ==================== ==========
                                                                                                                                                                                                                                                                                      
_____
(1)   Includes the effect of interest rate swaps in effective hedge
                         relationships.
                          
                                                                                                                                                                                                     
Regulatory Capital
                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                                                                                                                    
                                                                                                                                                                                                      Well Capitalized
                                                                                                                                                                                                                                                                                                                     Regulatory Requirements
                                                                                                 -------------------- -------------------- -------------------- -------------------- -------------------- --------------------                                           --------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                                             Amount                                         Ratio                                                                Amount                                                                                      Ratio
------------------------------------------------------                                           ----------------------------------------  -------------------- -------------------- ----------------------------------------                                            ------------                                                                         ------------------------
As of December 31, 2015:
Tier I Capital (to Average Assets)                                                                                  $            1,734,314                                                           12.3 %                                                                $   704,978                      greater-than or equal to                       5.0 %
Tier I Capital (to Risk-Weighted Assets)                                                                            $            1,734,314                                                           14.4 %                                                                $   962,016                      greater-than or equal to                       8.0 %
Total Capital (to Risk-Weighted Assets)                                                                             $            1,846,821                                                           15.4 %                                                                $ 1,202,520                      greater-than or equal to                      10.0 %
Common Equity Tier I Capital (to Risk-Weighted Assets)                                                                           1,734,314                                                           14.4 %                                                                    781,638                      greater-than or equal to                       6.5 %
                                                                                                                                                                                                                                                                                                                                                                    
As of December 31, 2014:
Tier I Capital (to Average Assets)                                                                                  $            1,413,988                                                           11.5 %                                                                $   614,709                      greater-than or equal to                       5.0 %
Tier I Capital (to Risk-Weighted Assets)                                                                            $            1,413,988                                                           15.0 %                                                                $   565,148                      greater-than or equal to                       6.0 %
Total Capital (to Risk-Weighted Assets)                                                                             $            1,497,830                                                           15.9 %                                                                $   941,913                      greater-than or equal to                      10.0 %
                                                                                                                                                                                                                                                                                                                                                                    

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20160120006451r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20160120006451/en/

SOURCE: Sallie Mae

Sallie Mae 
Media: 
Martha Holler, 302-451-4900 
martha.holler@salliemae.com 
or 
Rick Castellano, 302-451-2541 
rick.castellano@salliemae.com 
or 
Investors: 
Brian Cronin, 302-451-0304 
brian.cronin@salliemae.com


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