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 Sallie Mae Reports Fourth-Quarter and Full-Year 2017 Financial Results
   Wednesday, January 17, 2018 4:43:01 PM ET

--Fourth-Quarter Core Earnings Attributable to Common Stock, Excluding the Impact of the Tax Act, of $83 Million ($0.19 Per Diluted Share, an Increase of 22 Percent Compared to Year-Ago Period); Full-Year Core Earnings Attributable to Common Stock, Excluding the Impact of the Tax Act, of $317 Million ($0.72 Per Diluted Share, an Increase of 35 Percent Compared to Year-Ago Period)

--Private Education Loan Portfolio Grows to $17.2 Billion, Up 22 Percent From Dec. 31, 2016

Sallie Mae (SLM ), formally SLM Corporation, today released fourth-quarter and full-year 2017 financial results reflecting GAAP net income attributable to the company’s common stock of $44 million and $273 million, respectively. After adjusting for the effects of the Tax Cuts and Jobs Act of 2017 (the "Tax Act"), the financial results included core earnings attributable to the company’s common stock of $83 million and $317 million for the fourth-quarter and full-year 2017, respectively, reflecting core earnings per diluted share increases of 22 percent and 35 percent, respectively, compared to the year-ago periods. Absent the effect of the Tax Act, core earnings growth was driven by a 22-percent increase in the private education loan portfolio, an improved net interest margin, and operating efficiency improvements. The Tax Act was signed into law on Dec. 22, 2017.



"We are pleased 2017 was another solid year as evidenced by customer experience innovations, continued improvements in our net interest margin, sound credit trends, increased operating efficiency, and an expanding market share, which all contributed to our strong earnings growth," said Raymond J. Quinlan, chairman and CEO. "Recent tax legislation will increase our earnings, resulting in both higher profits and the opportunity to invest in service upgrades, technological efficiencies, and diversified product offerings, all of which will strengthen our franchise for the future."

For the fourth-quarter 2017, GAAP net income was $47 million, compared with $70 million in the year-ago quarter. GAAP net income attributable to the company’s common stock was $44 million ($0.10 diluted earnings per share) in the fourth-quarter 2017, compared with $65 million ($0.15 diluted earnings per share) in the year-ago quarter. The year-over-year decrease was primarily attributable to the required accounting treatment for the effects of the Tax Act.

The Tax Act lowered federal corporate tax rates from 35 percent to 21 percent, beginning in 2018. Because the Tax Act was enacted during the fourth-quarter 2017, the company was required to reflect the application of the lower tax rate in future years to its deferred tax assets, liabilities and indemnification receivables. Therefore, at Dec. 31, 2017, the company recorded a provisional estimate which resulted in a $15 million net increase in tax expense and reduced non-interest income by $24 million to reflect the effect of the lower tax rate. Absent the impact of the Tax Act, GAAP net income would have been $86 million and GAAP net income attributable to the company’s common stock would have been $82 million ($0.19 diluted earnings per share) in the fourth-quarter 2017. For a reconciliation of the effect of the Tax Act on the GAAP Consolidated Statements of Income of the company, see page 11 of this release.

For 2017, GAAP net income was $289 million, compared with $250 million in 2016. GAAP net income attributable to the company’s common stock was $273 million ($0.62 diluted earnings per share) in 2017, compared with $229 million ($0.53 diluted earnings per share) in 2016. Absent the impact of the Tax Act, GAAP net income would have been $328 million, and GAAP net income attributable to the company’s common stock would have been $312 million ($0.71 diluted earnings per share) in 2017.

Fourth-quarter 2017 results vs. fourth-quarter 2016 included:

-- Private education loan originations of $634 million, up 4 percent.

-- Net interest income of $309 million, up 26 percent.

-- Net interest margin of 6.00 percent, up 45 basis points.

-- Average private education loans outstanding of $17.3 billion, up 23 percent.

-- Average yield on the private education loan portfolio was 8.61 percent, up 53 basis points.

-- Private education loan provision for loan losses was $49 million, up from $43 million.

-- Private education loans in forbearance were 3.7 percent of private education loans in repayment and forbearance, up from 3.5 percent.

-- Private education loan delinquencies as a percentage of private education loans in repayment were 2.4 percent, up from 2.1 percent.

Core earnings for the fourth-quarter 2017 were $47 million, compared with $73 million in the year-ago quarter. Core earnings attributable to the company’s common stock were $44 million ($0.10 diluted earnings per share) in the fourth-quarter 2017, compared with $67 million ($0.15 diluted earnings per share) in the year-ago quarter. Absent the impact of the Tax Act, core earnings would have been $86 million, and core earnings attributable to the company’s common stock would have been $83 million ($0.19 diluted earnings per share) in the fourth-quarter 2017.

Core earnings for 2017 were $294 million, compared with $252 million for 2016. Core earnings attributable to the company’s common stock were $278 million ($0.63 diluted earnings per share) for 2017, compared with $231 million ($0.53 diluted earnings per share) for 2016. Absent the impact of the Tax Act, core earnings would have been $333 million, and core earnings attributable to the company’s common stock would have been $317 million ($0.72 diluted earnings per share) for 2017.

Fourth-quarter 2017 and full-year 2017 GAAP results included $1 million and $8 million, respectively, of pre-tax losses from derivative accounting treatment that are excluded from core earnings results, vs. pre-tax losses of $4 million and $3 million, respectively, in the year-ago periods.

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 net income, 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.

Total Non-Interest Income and Expenses

In the fourth-quarter 2017, to reflect the application of the Tax Act’s lower rate in future years, the company reduced other income by $24 million due to a lower valuation of tax indemnification receivables. Unrelated to the Tax Act, the company also reduced other income by $9 million due to the expiration of a portion of indemnified uncertain tax positions. Tax expense was reduced by corresponding amounts for both of these items. Absent these two tax-related items, other income was $2 million lower than in the fourth-quarter 2016 primarily due to reduced credit card revenue from the company’s Upromise subsidiary.

Total non-interest expenses were $119 million in the fourth-quarter 2017, compared with $98 million in the year-ago quarter. Operating expenses grew 21 percent from the year-ago quarter, and the non-GAAP operating efficiency ratio increased to 41.2 percent in the fourth-quarter 2017, from 37.9 percent in the year-ago quarter. Absent the impact of the Tax Act and the reduction in indemnified uncertain tax positions that, when combined, reduced other income by $32 million, the non-GAAP operating efficiency ratio would have been 37.1 percent for the fourth-quarter 2017.

Excluding FDIC assessment fees, which grew 32 percent as a result of a 22-percent increase in its private education loan portfolio, non-interest expenses grew 20 percent from the year-ago quarter. The increase in operating expenses was driven by the growth in the portfolio and investments associated with the development of the company’s graduate school loan program, the personal loan product and investments in the brand to support the core business and diversification efforts.

Total non-interest expenses were $449 million for 2017, compared with $386 million for 2016. Full-year operating expenses grew 16 percent year-over-year, while the non-GAAP operating efficiency ratio decreased to 39.6 percent in 2017 from 40.1 percent in 2016. Absent the impact of the Tax Act and the reduction in indemnified uncertain tax positions that, when combined, reduced other income by $35 million in 2017, the non-GAAP operating efficiency ratio would have been 38.4 percent for 2017.

Income Tax Expense

Income tax expense increased to $66 million in the fourth-quarter 2017 from $43 million in the year-ago quarter. The effective income tax rate in fourth-quarter 2017 was 58.5 percent, an increase from 38.0 percent in the year-ago quarter. The increase in the effective tax rate was primarily the result of the one-time revaluation of the company’s deferred tax assets and liabilities to apply the Tax Act’s lower rate in future years. The company recorded a provisional estimate which resulted in a $15 million net increase in tax expense from the revaluation of an indemnified liability (a $23 million reduction in expense) and all other deferred tax assets and liabilities (a $38 million increase in expense). Unrelated to the Tax Act, the company recorded a $9 million decrease in tax expense due to the previously mentioned expiration of a portion of indemnified uncertain tax positions. Absent these three items, the company’s effective tax rate for the fourth-quarter 2017 would have been 41.1 percent.

Income tax expense increased to $203 million in 2017 from $164 million in 2016. The company’s effective income tax rate increased to 41.2 percent in 2017 from 39.6 percent in 2016.

The company expects its effective income tax rate to be approximately 26 percent in 2018 as a result of the Tax Act.

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, 2017, Sallie Mae Bank’s regulatory capital ratios were as follows:

                                                                        
                                                                             Dec. 31, 2017                      "Well Capitalized"
                                                                                                                                              Regulatory
                                                                                                                                             Requirements
                                                                            -------------                      -----------------------------------------------------------------------
Common Equity Tier 1 Capital (to Risk-Weighted Assets)                       12.0 percent                                                     6.5 percent
Tier 1 Capital (to Risk-Weighted Assets)                                     12.0 percent                                                     8.0 percent
Total Capital (to Risk-Weighted Assets)                                      13.3 percent                                                    10.0 percent
Tier 1 Capital (to Average Assets)                                           11.2 percent                                                     5.0 percent
                                                                                                                

Deposits

Deposits at the company totaled $15.5 billion ($8.2 billion in brokered deposits and $7.3 billion in retail and other deposits) at Dec. 31, 2017, compared with $13.4 billion ($7.1 billion in brokered deposits and $6.3 billion in retail and other deposits) at Dec. 31, 2016.

Guidance

The company expects 2018 results to be as follows:

-- Full-year diluted core earnings per share: $0.97 - $1.01.

-- Full-year private education loan originations of $5.0 billion.

-- Full-year non-GAAP operating efficiency ratio: 37 percent - 38 percent.

The company plans to make investments in 2018 that will accelerate the diversification of its consumer lending platform into the personal loan and credit card businesses. In addition, the company will invest in several technology infrastructure projects, including migrating infrastructure to the cloud. These investments will total up to $30 million and are expected to add revenue and improve efficiency in future years. The impact of these investments is included in the guidance provided above.

***

Sallie Mae will host an earnings conference call tomorrow, Jan. 18, 2018, 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 4876499 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. 7, 2018, by dialing 855-859-2056 (USA and Canada) or 404-537-3406 (international) with access code 4876499.

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, 2016 (filed with the Securities and Exchange Commission ("SEC") on Feb. 24, 2017) and subsequent filings with the SEC; increases in financing costs; limits on liquidity; increases in costs associated with compliance with laws and regulations; failure to comply with consumer protection, banking and other laws; 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; risks associated with restructuring initiatives, including failures to successfully implement cost-cutting and restructuring initiatives and the adverse effects of such initiatives on the company’s business; 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 the company’s customers; changes in the general interest rate environment, including the rate relationships among relevant money-market instruments and those of the company’s earning assets versus the company’s 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 (excluding current period accruals on the derivative instruments), net of tax. 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 Sept. 30, 2017 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."

In 2016, our non-GAAP operating efficiency ratio was calculated for the periods presented as the ratio of (a) the total non-interest expense numerator to (b) the net revenue denominator (which consisted of net interest income, before provision for credit losses, plus non-interest income).

In the first-quarter 2017, we began calculating and reporting our non-GAAP operating efficiency ratio as the ratio of (a) the total non-interest expense numerator to (b) the net revenue denominator (which consists of the sum of net interest income, before provision for credit losses, and non-interest income, and the net impact of derivative accounting as defined in the "’Core Earnings’ to GAAP Reconciliation" table in this Press Release). We believe this change will improve visibility into our management of operating expenses over time and eliminate the variability in this ratio that may be related to the changes in fair value of our derivative contracts that we consider economic hedges and which do not affect how we manage operating expenses. This change conforms the treatment of our hedging activities in our operating efficiency ratio to our non-GAAP "Core Earnings" measure. The impact of this change on the non-GAAP operating efficiency ratio reported in each of our prior quarterly and annual periods is immaterial. This ratio provides useful information to investors because it is a measure used by our management team to monitor our effectiveness in managing operating expenses. Other companies may use similarly titled non-GAAP financial measures that are calculated differently from our ratio. Accordingly, our non-GAAP operating efficiency ratio may not be comparable to similar measures used by other companies.

The fourth-quarter 2017 and full-year 2017 financial results reported in this press release reflect the required accounting treatment for the estimated effects of the Tax Act. We also report in this press release certain fourth-quarter 2017 and full-year 2017 financial statement items absent the effects of the Tax Act, including a reconciliation on page 11 of this press release of the effect of the Tax Act on the GAAP Consolidated Statements of Income. (Estimated effects may be refined in future periods as further information becomes available.) We believe this additional disclosure will be helpful to investors by illustrating and quantifying the impact of the required accounting treatment for the effects of the Tax Act. In addition, management will use the financial results absent the effect of the Tax Act as a basis for making management decisions regarding the company’s performance in 2017. Our financial results absent the effect of the Tax Act are unique to our company, are not defined terms within GAAP and may not be comparable to adjustments made by, or to similarly captioned measures reported by, other companies.

***

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                                                                        2017                                                   2016                                                                      2017                                                   2016
percentages)
------------------------------------------------------------------                      --------------------------------------------------                        --------------------------------------------------                        --------------------------------------------------                        --------------------------------------------------
                                                                                                                                                                                                                                                                                                                       
Net income attributable to SLM Corporation common stock                                                    $     43,866                                                              $     64,736                                                              $    273,220                                                              $    229,123
Diluted earnings per common share attributable to SLM Corporation                                          $       0.10                                                              $       0.15                                                              $       0.62                                                              $       0.53
Weighted average shares used to compute diluted earnings per share                                              438,932                                                                   435,419                                                                   438,551                                                                   432,919
Return on assets                                                                                                    0.9 %                                                                     1.5 %                                                                     1.4 %                                                                     1.5 %
Non-GAAP operating efficiency ratio - old method(1)                                                                41.3 %                                                                    38.6 %                                                                    39.9 %                                                                    40.2 %
Non-GAAP operating efficiency ratio - new method(2)                                                                41.2 %                                                                    37.9 %                                                                    39.6 %                                                                    40.1 %
                                                                                                                                                                                                                                                                                                                       
Other Operating Statistics
Ending Private Education Loans, net                                                                        $ 17,244,830                                                              $ 14,113,409                                                              $ 17,244,830                                                              $ 14,113,409
Ending FFELP Loans, net                                                                      929,159                           1,011,678                             929,159                           1,011,678  
                                                                                        -------------------- ---------- --------------------                      -------------------- ---------- --------------------                      -------------------- ---------- --------------------                      -------------------- ---------- --------------------
Ending total education loans, net                                                                          $ 18,173,989                                           $ 15,125,087                                           $ 18,173,989                                           $ 15,125,087  
                                                                                        ==================== ========== ====================                      ==================== ========== ====================                      ==================== ========== ====================                      ==================== ========== ====================
                                                                                                                                                                                                                                                                                                                       
Average education loans                                                                                    $ 18,258,153                                                              $ 15,082,071                                                              $ 17,147,089                                                              $ 13,811,081
 
_________
(1) In 2016, our non-GAAP operating efficiency ratio was calculated
for the periods presented as the ratio of (a) the total non-interest
expense numerator to (b) the net revenue denominator (which
consisted of net interest income, before provision for credit
losses, plus non-interest income).
 
(2) In the first-quarter 2017, we began calculating and reporting
our non-GAAP operating efficiency ratio as the ratio of (a) the
total non-interest expense numerator to (b) the net revenue
denominator (which consists of the sum of net interest income,
before provision for credit losses, and non-interest income, and the
net impact of derivative accounting as defined in the "’Core
Earnings’ to GAAP Reconciliation" table in this Press Release). We
believe this change will improve visibility into our management of
operating expenses over time and eliminate the variability in this
ratio that may be related to the changes in fair value of our
derivative contracts that we consider economic hedges and which do
not affect how we manage operating expenses. This change conforms
the treatment of our hedging activities in our operating efficiency
ratio to our non-GAAP "Core Earnings" measure. The impact of this
change on the non-GAAP operating efficiency ratio reported in each
of our prior quarterly and annual periods is immaterial. This ratio
provides useful information to investors because it is a measure
used by our management team to monitor our effectiveness in managing
operating expenses. Other companies may use similarly titled
non-GAAP financial measures that are calculated differently from our
ratio. Accordingly, our non-GAAP operating efficiency ratio may not
be comparable to similar measures used by other companies.
 
 
                                                                                                                   SLM CORPORATION
 
                                                                                                             CONSOLIDATED BALANCE SHEETS
                                                                                                 (In thousands, except share and per share amounts)
                                                                                                                     (Unaudited)
 
                                                                                                                    December 31,                                             December 31,
                                                                                                                                           2017                                                                        2016
                                                                                                                 ---------------------------------------------------------                     -----------------------------------------------------
Assets
Cash and cash equivalents                                                                                                           $      1,534,339                                                              $  1,918,793
Available-for-sale investments at fair value (cost of $247,607 and                                                                           244,088                                                                   208,603
$211,406, respectively)
Loans held for investment (net of allowance for losses of $251,475                                                                        18,567,641                                                                15,137,922
and $184,701, respectively)
Restricted cash and investments                                                                                                              101,836                                                                    53,717
Other interest-earning assets                                                                                                                 21,586                                                                    49,114
Accrued interest receivable                                                                                                                  967,482                                                                   766,106
Premises and equipment, net                                                                                                                   89,748                                                                    87,063
Tax indemnification receivable                                                                                                               168,011                                                                   259,532
Other assets                                                                                                               84,853                              52,153  
                                                                                                                 -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Total assets                                                                                                                        $     21,779,584                                           $ 18,533,003  
                                                                                                                 ==================== ============== ====================                      ==================== ========== ====================
                                                                                                                                                                                                
Liabilities
Deposits                                                                                                                            $     15,505,383                                                              $ 13,435,667
Long-term borrowings                                                                                                                       3,275,270                                                                 2,167,979
Income taxes payable, net                                                                                                                    102,285                                                                   184,324
Upromise related liabilities                                                                                                                 243,080                                                                   256,041
Other liabilities                                                                                                         179,310                             141,934  
                                                                                                                 -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Total liabilities                                                                                                      19,305,328                          16,185,945  
                                                                                                                 -------------------- -------------- --------------------                      -------------------- ---------- --------------------
                                                                                                                                                                                                
Commitments and contingencies
                                                                                                                                                                                                
Equity
Preferred stock, par value $0.20 per share, 20 million shares
authorized:
Series A: 0 and 3.3 million shares issued, respectively, at stated                                                                    --                                                                   165,000
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                                                                                 88,693                                                                    87,327
authorized: 443.5 million and 436.6 million shares issued,
respectively
Additional paid-in capital                                                                                                                 1,222,277                                                                 1,175,564
Accumulated other comprehensive income (loss) (net of tax expense                                                                              2,748                                                                    (8,671 )
(benefit) of $1,696 and ($5,364), respectively)
Retained earnings                                                                                                         868,182                             595,322  
                                                                                                                 -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Total SLM Corporation stockholders’ equity before treasury stock                                                2,581,900                                                                 2,414,542
Less: Common stock held in treasury at cost: 11.1 million and 7.7                                                        (107,644 )                                              (67,484 )
million shares, respectively
                                                                                                                 -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Total equity                                                                                                            2,474,256                           2,347,058  
                                                                                                                 -------------------- -------------- --------------------                      -------------------- ---------- --------------------
Total liabilities and equity                                                                                                        $     21,779,584                                           $ 18,533,003  
                                                                                                                 ==================== ============== ====================                      ==================== ========== ====================
                                                                                                                                                                                                                                
 
                                                                                                                                                                                SLM CORPORATION
 
                                                                                                                                                                       CONSOLIDATED STATEMENTS OF INCOME
                                                                                                                                                                   (In thousands, except per share amounts)
                                                                                                                                                                                  (Unaudited)
 
                                                                                                                             Quarters Ended                                                                                                                       Years Ended
                                                                                                                                                 December 31,                                                                                                                                          December 31,
                                                                                       --------------------------------------------------------------------------------------------------------------------------------                     ----------------------------------------------------------------------------------------------------------------------------------
                                                                                                                 2017                                                    2016                                                                      2017                                                     2016
                                                                                       ---------------------------------------------------------                     --------------------------------------------------                     ---------------------------------------------------------                     ----------------------------------------------------
Interest income:
   Loans                                                                                                  $        392,399                                                              $ 295,241                                                              $      1,413,505                                                              $ 1,060,487
   Investments                                                                                                       2,016                                                                  2,005                                                                         8,288                                                                    9,160
   Cash and cash equivalents                                                                      5,081                            2,767                                  15,510                              7,599  
                                                                                       -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------
Total interest income                                                                                              399,496                                                                300,013                                                                     1,437,303                                                                1,077,246
Interest expense:
   Deposits                                                                                                         66,218                                                                 40,775                                                                       223,691                                                                  148,408
   Interest expense on short-term borrowings                                                                         2,107                                                                  1,495                                                                         6,341                                                                    7,322
   Interest expense on long-term borrowings                                                      21,980                           12,309                                  78,050                             30,178  
                                                                                       -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------
Total interest expense                                                                           90,305                           54,579                                 308,082                            185,908  
                                                                                       -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------
Net interest income                                                                                                309,191                                                                245,434                                                                     1,129,221                                                                  891,338
Less: provisions for credit losses                                                               55,324                           43,226                                 185,765                            159,405  
                                                                                       -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------
Net interest income after provisions for credit losses                                          253,867                          202,208                                 943,456                            731,933  
                                                                                       -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------
Non-interest income (loss):
   Gains on sales of loans, net                                                                             --                                                                    230                                                                --                                                                      230
   Losses on derivatives and hedging activities, net                                                                  (940 )                                                               (4,114 )                                                                      (8,266 )                                                                   (958 )
   Other income (loss)                                                                          (21,066 )                                            13,235                                   5,364                             69,544  
                                                                                       -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------
Total non-interest income (loss)                                                                (22,006 )                                             9,351                                  (2,902 )                                              68,816  
                                                                                       -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------
Non-interest expenses:
   Compensation and benefits                                                                                        55,796                                                                 45,337                                                                       213,319                                                                  183,996
   FDIC assessment fees                                                                                              7,473                                                                  5,661                                                                        28,950                                                                   19,209
   Other operating expenses                                                                      55,281                           47,038                                 206,351                            182,202  
                                                                                       -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------
   Total operating expenses                                                                                        118,550                                                                 98,036                                                                       448,620                                                                  385,407
   Acquired intangible asset amortization expense                                                   118                              159                                     469                                906  
                                                                                       -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------
Total non-interest expenses                                                                     118,668                           98,195                                 449,089                            386,313  
                                                                                       -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------
Income before income tax expense                                                                                   113,193                                                                113,364                                                                       491,465                                                                  414,436
Income tax expense                                                                               66,190                           43,122                                 202,531                            164,109  
                                                                                       -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------
Net income                                                                                                          47,003                                                                 70,242                                                                       288,934                                                                  250,327
Preferred stock dividends                                                                         3,137                            5,506                                  15,714                             21,204  
                                                                                       -------------------- -------------- --------------------                      -------------------- ------- --------------------                      -------------------- -------------- --------------------                      -------------------- --------- --------------------
Net income attributable to SLM Corporation common stock                                                   $         43,866                                           $  64,736                                           $        273,220                                           $   229,123  
                                                                                       ==================== ============== ====================                      ==================== ======= ====================                      ==================== ============== ====================                      ==================== ========= ====================
Basic earnings per common share attributable to SLM Corporation                                           $           0.10                                           $    0.15                                           $           0.63                                           $      0.54  
                                                                                       ==================== ============== ====================                      ==================== ======= ====================                      ==================== ============== ====================                      ==================== ========= ====================
Average common shares outstanding                                                               431,980                          428,368                                 431,216                            427,876  
                                                                                       ==================== ============== ====================                      ==================== ======= ====================                      ==================== ============== ====================                      ==================== ========= ====================
Diluted earnings per common share attributable to SLM Corporation                                         $           0.10                                           $    0.15                                           $           0.62                                           $      0.53  
                                                                                       ==================== ============== ====================                      ==================== ======= ====================                      ==================== ============== ====================                      ==================== ========= ====================
Average common and common equivalent shares outstanding                                         438,932                          435,419                                 438,551                            432,919  
                                                                                       ==================== ============== ====================                      ==================== ======= ====================                      ==================== ============== ====================                      ==================== ========= ====================
                                                                                                                                                                                                                                                                                                                                                          
 
                                                                                                                                                              SLM CORPORATION
 
                                                                                                                                              CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
                                                                                                                                                              (In thousands)
                                                                                                                                                                (Unaudited)
 
                                                                                                      Quarters Ended                                                                                                              Years Ended
                                                                                                                          December 31,                                                                                                                                 December 31,
                                                                    ------------------------------------------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------------------------------------
                                                                                          2017                                                2016                                                                   2017                                                2016
                                                                    -------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------                     --------------------------------------------------
Net income                                                                             $ 47,003                                                              $  70,242                                                              $ 288,934                                                              $ 250,327
Other comprehensive income (loss):
   Unrealized losses on investments                                                         (50 )                                                               (6,515 )                                                                 (716 )                                                               (1,792 )
   Unrealized gains on cash flow hedges                               11,631                           37,546                           19,195                           13,764  
                                                                    -------------------- ------ --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
   Total unrealized gains                                                                11,581                                                                 31,031                                                                 18,479                                                                 11,972
Income tax expense                                                    (4,416 )                                           (11,889 )                                            (7,060 )                                            (4,584 )
                                                                    -------------------- ------ --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Other comprehensive income, net of tax expense                         7,165                           19,142                           11,419                            7,388  
                                                                    -------------------- ------ --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------                      -------------------- ------- --------------------
Total comprehensive income                                                             $ 54,168                                           $  89,384                                           $ 300,353                                           $ 257,715  
                                                                    ==================== ====== ====================                      ==================== ======= ====================                      ==================== ======= ====================                      ==================== ======= ====================
                                                                                                                                                                                                                                                                                                                      

"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                                                                                                                2017                                  2016                                                 2017                                  2016
amounts)
-----------------------------------------------------------------------------------------------------------------                      ----------------------------------                       ----------------------------------                       ---------------------------                       ----------------------------------------
                                                                                                                                                                                                                                                                                                            
"Core Earnings" adjustments to GAAP:
GAAP net income                                                                                                                                           $         47,003                                         $         70,242                                         $ 288,934                                         $              250,327
Preferred stock dividends                                                                                                                         3,137                                 5,506                         15,714                                      21,204
                                                                                                                                       -------------------- --------------                      -------------------- --------------                      -------------------- -------                      -------------------- --------------------
GAAP net income attributable to SLM Corporation common stock                                                                                              $         43,866                                         $         64,736                                         $ 273,220                                         $              229,123
                                                                                                                                       ==================== ==============                      ==================== ==============                      ==================== =======                      ==================== ====================
                                                                                                                                                                                                                                                                                                            
Adjustments:
Net impact of derivative accounting(1)                                                                                                                                 706                                                    4,386                                             8,197                                                          3,127
Net tax effect(2)                                                                                                                                   270                                 1,682                          3,131                                       1,199
                                                                                                                                       -------------------- --------------                      -------------------- --------------                      -------------------- -------                      -------------------- --------------------
Total "Core Earnings" adjustments to GAAP                                                      436                                 2,704                          5,066                                       1,928
                                                                                                                                       -------------------- --------------                      -------------------- --------------                      -------------------- -------                      -------------------- --------------------
                                                                                                                                                                                                                                                                                                            
"Core Earnings" attributable to SLM Corporation common stock                                         $         44,302                                         $         67,440                                         $ 278,286                                         $              231,051
                                                                                                                                       ==================== ==============                      ==================== ==============                      ==================== =======                      ==================== ====================
                                                                                                                                                                                                                                                                                                            
GAAP diluted earnings per common share                                                                                                                    $           0.10                                         $           0.15                                         $    0.62                                         $                 0.53
Derivative adjustments, net of tax                                                                                                       --                        --                           0.01                              --
                                                                                                                                       -------------------- --------------                      -------------------- --------------                      -------------------- -------                      -------------------- --------------------
"Core Earnings" diluted earnings per common share                                                    $           0.10                                         $           0.15                                         $    0.63                                         $                 0.53
                                                                                                                                       ==================== ==============                      ==================== ==============                      ==================== =======                      ==================== ====================
                                                                                                                                                                                                                                                                                                                                 
______
(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 (but include current period accruals on derivative
instruments), net of tax. 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.
 
 
Reconciliation of the Effect of the Tax Act on the GAAP
Consolidated Statements of Income
 
                                                                                                                                                                   Quarter Ended                                                                                                                                                                                                         Year Ended
                                                                                                                                                                                    December 31, 2017                                                                                                                                                                                                                       December 31, 2017
                                                                                       -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands, except per share                                                                        As                                                   Tax Act                                           Adjusted                                                         As                                                    Tax Act                                                  Adjusted
amounts)                                                                                                    Reported                                                                 Adjustments                                                                              (Non-GAAP)                                                     Reported                                                                  Adjustments                                                                                     (Non-GAAP)
-----------------------------------------------------------------                      -----------------------------------------------                        ------------------------------------------------------                                                 ---------------------------                       -------------------------------------------------                        ------------------------------------------------------                                                 ----------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Net interest income                                                                                       $ 309,191                                                              $ --                                                                                       $ 309,191                                         $ 1,129,221                                                              $ --                                                                                       $            1,129,221
Less: provisions for credit losses                                                        55,324                          --                                                    55,324                          185,765                          --                                                                185,765
                                                                                       -------------------- ------- --------------------                      -------------------- -------------- --------------------                                               -------------------- -------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                                               -------------------- --------------------
Net interest income after provisions for credit losses                                                      253,867                                                                --                                                                                         253,867                                             943,456                                                                --                                                                                                      943,456
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Total non-interest income (loss)                                                                            (22,006 )                                                                      23,532                                           (1)                                             1,526                                              (2,902 )                                                                      23,532                                           (1)                                                         20,630
Total non-interest expenses                                                              118,668                          --                                                   118,668                          449,089                          --                                                                449,089
                                                                                       -------------------- ------- --------------------                      -------------------- -------------- --------------------                                               -------------------- -------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                                               -------------------- --------------------
Income before income tax expense                                                                            113,193                                                                        23,532                                                                                         136,725                                             491,465                                                                        23,532                                                                                                      514,997
Income tax expense                                                                        66,190                                 (15,035 )                                         (2)                         51,155                          202,531                                 (15,035 )                                         (2)                                     187,496
                                                                                       -------------------- ------- --------------------                      -------------------- -------------- --------------------                                               -------------------- -------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                                               -------------------- --------------------
Net income                                                                                                   47,003                                                                        38,567                                                                                          85,570                                             288,934                                                                        38,567                                                                                                      327,501
Preferred stock dividends                                                                  3,137                          --                                                     3,137                           15,714                          --                                                                 15,714
                                                                                       -------------------- ------- --------------------                      -------------------- -------------- --------------------                                               -------------------- -------                      -------------------- --------- --------------------                      -------------------- -------------- --------------------                                               -------------------- --------------------
Net income attributable to SLM Corporation common stock                                                   $  43,866                                           $         38,567                                                                    $  82,433                                         $   273,220                                           $         38,567                                                                    $              311,787
                                                                                       ==================== ======= ====================                      ==================== ============== ====================                                               ==================== =======                      ==================== ========= ====================                      ==================== ============== ====================                                               ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
Basic earnings per common share attributable to SLM Corporation                                           $    0.10                                           $           0.09                                                                    $    0.19                                         $      0.63                                           $           0.09                                                                    $                 0.72
                                                                                       ==================== ======= ====================                      ==================== ============== ====================                                               ==================== =======                      ==================== ========= ====================                      ==================== ============== ====================                                               ==================== ====================
Average common shares outstanding                                                        431,980                          --                                                   431,980                          431,216                          --                                                                431,216
                                                                                       ==================== ======= ====================                      ==================== ============== ====================                                               ==================== =======                      ==================== ========= ====================                      ==================== ============== ====================                                               ==================== ====================
Diluted earnings per common share attributable to SLM Corporation                                         $    0.10                                           $           0.09                                                                    $    0.19                                         $      0.62                                           $           0.09                                                                    $                 0.71
                                                                                       ==================== ======= ====================                      ==================== ============== ====================                                               ==================== =======                      ==================== ========= ====================                      ==================== ============== ====================                                               ==================== ====================
Average common and common equivalent shares outstanding                                  438,932                          --                                                   438,932                          438,551                          --                                                                438,551
                                                                                       ==================== ======= ====================                      ==================== ============== ====================                                               ==================== =======                      ==================== ========= ====================                      ==================== ============== ====================                                               ==================== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
______
 
(1) Represents the reduction in a tax-related indemnification
receivable due to the lower federal corporate tax rate set forth in
the Tax Act.
 
(2) Represents the net reduction in deferred tax assets and
liabilities due to the lower federal corporate tax rate set forth in
the Tax Act.
 
 
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,
                                                           ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                    2017                                                                                   2016                                                                                                      2017                                                                                      2016
                                                           --------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------                     -------------------------------------------------------------------------------------------
(Dollars in thousands)                                                     Balance                            Rate                                                 Balance                            Rate                                                Balance                            Rate                                                Balance                               Rate
-------------------------------------                      -----------------------------------                        -------------------------                       -----------------------------------                        ------------------------                       -----------------------------------                        ------------------------                       -----------------------------------                        ------------------------------
Average Assets
Private Education Loans                                        $ 17,318,182                                            8.61 %                                             $ 14,057,669                                           8.08 %                                             $ 16,176,351                                           8.43 %                                             $ 12,747,756                                                 8.02 %
FFELP Loans                                                         939,971                                            4.07                                                  1,024,402                                           3.71                                                    970,738                                           3.91                                                  1,063,325                                                 3.53
Personal and other loans                                            265,113                                           10.22                                                      3,496                                           7.50                                                    112,857                                           9.89                                                      1,114                                                 6.77
Taxable securities                                                  316,378                                            2.52                                                    479,384                                           1.65                                                    326,757                                           2.53                                                    407,860                                                 2.24
Cash and other short-term investments                             1,604,619                         1.26                               2,017,081                        0.55                               1,454,344                        1.07                               1,480,170                              0.51  
                                                           -------------------------------------                      ----- --------------------                      -------------------------------------                      ---- --------------------                      -------------------------------------                      ---- --------------------                      -------------------------------------                      ---------- --------------------
Total interest-earning assets                                    20,444,263                                            7.75 %                                               17,582,032                                           6.79 %                                               19,041,047                                           7.55 %                                               15,700,225                                                 6.86 %
                                                                                                                      ===== ====================                                                                                 ==== ====================                                                                                 ==== ====================                                                                                 ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Non-interest-earning assets                                       1,331,197                                                                                 816,337                                                                              1,104,598                                                                                772,167  
                                                           -------------------------------------                                                                      -------------------------------------                                                                     -------------------------------------                                                                     -------------------------------------
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Total assets                                                   $ 21,775,460                                                                            $ 18,398,369                                                                           $ 20,145,645                                                                           $ 16,472,392  
                                                           ===== ========== ====================                                                                      ===== ========== ====================                                                                     ===== ========== ====================                                                                     ===== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Average Liabilities and Equity
Brokered deposits                                              $  7,923,341                                            1.87 %                                             $  7,302,429                                           1.32 %                                             $  7,224,869                                           1.75 %                                             $  7,154,218                                                 1.31 %
Retail and other deposits                                         7,351,063                                            1.55                                                  5,961,087                                           1.09                                                  6,939,520                                           1.40                                                  5,095,631                                                 1.06
Other interest-bearing liabilities(1)                             3,261,087                         2.94                               2,205,726                        2.51                               2,932,681                        2.88                               1,476,740                              2.58  
                                                           -------------------------------------                      ----- --------------------                      -------------------------------------                      ---- --------------------                      -------------------------------------                      ---- --------------------                      -------------------------------------                      ---------- --------------------
Total interest-bearing liabilities                               18,535,491                                            1.93 %                                               15,469,242                                           1.40 %                                               17,097,070                                           1.80 %                                               13,726,589                                                 1.35 %
                                                                                                                      ===== ====================                                                                                 ==== ====================                                                                                 ==== ====================                                                                                 ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Non-interest-bearing liabilities                                    778,258                                                                                                    624,285                                                                                                   647,294                                                                                                   539,215
Equity                                                            2,461,711                                                                               2,304,842                                                                              2,401,281                                                                              2,206,588  
                                                           -------------------------------------                                                                      -------------------------------------                                                                     -------------------------------------                                                                     -------------------------------------
Total liabilities and equity                                   $ 21,775,460                                                                            $ 18,398,369                                                                           $ 20,145,645                                                                           $ 16,472,392  
                                                           ===== ========== ====================                                                                      ===== ========== ====================                                                                     ===== ========== ====================                                                                     ===== ========== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                      
Net interest margin                                                                                                    6.00 %                                                                                                    5.55 %                                                                                                    5.93 %                                                                                                          5.68 %
                                                                                                                      ===== ====================                                                                                 ==== ====================                                                                                 ==== ====================                                                                                 ========== ====================
______
(1)   Includes the average balance of our unsecured borrowing, as well as
                         secured borrowings and amortization expense of transaction costs
                         related to our term asset-backed securitizations and our
                         asset-backed commercial paper funding facility.
                                                                                                                                                                                                      
Earnings per Common Share
                                                                                                                                                                                                                                              
                                                                                                                                                                      Quarters Ended                                                                                          Years Ended
                                                                                                                                                                       December 31,                                                                                          December 31,
                                                                                                                                   -------------------------------------------------------------------------------------                     ----------------------------------------------------------------------------
(In thousands, except per share data)                                                                                                            2017                              2016                                                 2017                          2016
-------------------------------------------------------------------------------------------------------------                      -----------------------------                        -----------------------------                        ------------------------------                        --------------------
Numerator:
Net income                                                                                                                           $ 47,003                                             $ 70,242                                             $ 288,934                                                    $    250,327
Preferred stock dividends                                                                                                               3,137                             5,506                             15,714                                       21,204
                                                                                                                                   -------------------------------                      -------------------------------                      --------------------------------                      ----------------------
Net income attributable to SLM Corporation common stock                                                                              $ 43,866                          $ 64,736                          $ 273,220                                 $    229,123
                                                                                                                                   === ====== ====================                      === ====== ====================                      === ======= ====================                      ========== ==========
Denominator:
Weighted average shares used to compute basic EPS                                                                                     431,980                                              428,368                                               431,216                                                         427,876
Effect of dilutive securities:
   Dilutive effect of stock options, restricted stock, restricted stock                                                                 6,952                             7,051                              7,335                                        5,043
   units and Employee Stock Purchase Plan ("ESPP")(1)(2)
                                                                                                                                   ---------  --------------------                      ---------  --------------------                      ----------  --------------------                      --------------------
Weighted average shares used to compute diluted EPS                                                                                   438,932                           435,419                            438,551                                      432,919
                                                                                                                                   ===============================                      ===============================                      ================================                      ======================
                                                                                                                                                                                                                                                                                                    
Basic earnings per common share attributable to SLM Corporation:                                                                     $   0.10                          $   0.15                          $    0.63                                 $       0.54
                                                                                                                                   === ====== ====================                      === ====== ====================                      === ======= ====================                      ========== ==========
                                                                                                                                                                                                                                                                                                    
Diluted earnings per common share attributable to SLM Corporation:                                                                   $   0.10                          $   0.15                          $    0.62                                 $       0.53
                                                                                                                                   === ====== ====================                      === ====== ====================                      === ======= ====================                      ========== ==========
__________
(1)   Includes the potential dilutive effect of additional common shares
                         that are issuable upon exercise of outstanding stock options,
                         restricted stock, restricted stock units, and the outstanding
                         commitment to issue shares under the ESPP, determined by the
                         treasury stock method.
                          
(2)                      For the quarters ended December 31, 2017, and 2016, securities
                         covering 0 and less than 1 million shares, respectively, and for the
                         years ended December 31, 2017 and 2016, securities covering 0 and
                         approximately 1 million shares, respectively, were outstanding but
                         not included in the computation of diluted earnings per share
                         because they were anti-dilutive.
                                                               
Allowance for Loan Losses Metrics
                                                                                    
                                                                                                                                                                                             Quarter Ended
                                                                                                                                                                                           December 31, 2017
                                                                                   --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                                 FFELP                                Private Education                             Personal                                    Total
                                                                                                       Loans                                                         Loans                                                        Loans
-------------------------------------------------------------                      -----------------------------------------                        -----------------------------------                        ----------------------------------------                        ---------------------------------
Allowance for Loan Losses:
Beginning balance                                                                        $          1,352                                               $    227,167                                                $          1,400                                             $    229,919
  Total provision                                                                                      76                                                     49,437                                                           5,558                                                   55,071
  Net charge-offs:
    Charge-offs                                                                                      (296 )                                                  (36,828 )                                                          (339 )                                                (37,463 )
    Recoveries                                                                             --                                   5,419                                            9                                 5,428  
                                                                                   -------------------------------------------                      -------------------------------------                      ------------------------------------------                      -----------------------------------
  Net charge-offs                                                                                    (296 )                                                  (31,409 )                                                          (330 )                                                (32,035 )
  Loan sales(1)                                                                            --                                  (1,480 )                                                                                              (1,480 )
                                                                                   -------------------------------------------                      -------------------------------------                      -------------------------------------------                     -----------------------------------
Ending Balance                                                                           $          1,132                            $    243,715                             $          6,628                          $    251,475  
                                                                                   ======= ============== ====================                      ===== ========== ====================                      ====== ============== ====================                      === ========== ====================
Allowance:
Ending balance: individually evaluated for impairment                                    $ --                                               $     94,682                                                $ --                                             $     94,682
Ending balance: collectively evaluated for impairment                                    $          1,132                                               $    149,033                                                $          6,628                                             $    156,793
Loans:
Ending balance: individually evaluated for impairment                                    $ --                                               $    990,351                                                $ --                                             $    990,351
Ending balance: collectively evaluated for impairment                                    $        927,660                                               $ 16,441,816                                                $        400,280                                             $ 17,769,756
Net charge-offs as a percentage of average loans in repayment                                        0.17 %                                                     1.07 %                                                          0.50 %
(annualized)(2)
Allowance as a percentage of the ending total loan balance                                           0.12 %                                                     1.40 %                                                          1.66 %
Allowance as a percentage of the ending loans in repayment(2)                                        0.15 %                                                     2.00 %                                                          1.66 %
Allowance coverage of net charge-offs (annualized)                                                   0.96                                                       1.94                                                            5.02
Ending total loans, gross                                                                $        927,660                                               $ 17,432,167                                                $        400,280
Average loans in repayment(2)                                                            $        711,614                                               $ 11,740,773                                                $        264,876
Ending loans in repayment(2)                                                             $        746,456                                               $ 12,206,033                                                $        400,280
________
(1)   Represents fair value adjustments on loans sold.
                          
(2)                      Loans in repayment include loans on which borrowers are making
                         interest only or fixed payments, as well as loans that have
                         entered full principal and interest repayment status after any
                         applicable grace period.
                                                                                                                                                                                                                                                    
                                                                                                                                                                                                                                                                               Quarter Ended
                                                                                                                                                                                                                                                                             December 31, 2016
                                                                                                        ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                                                            FFELP                                                                                      Private Education                                                                                    Personal                                                                                           Total
                                                                                                                                  Loans                                                                                            Loans                                                                                            Loans
-------------------------------------------------------------                                           ------------------------------------------------------                                             --------------------------------------------------                                             ------------------------------------------------------                                             --------------------------------------------------
Allowance for Loan Losses:
Beginning balance                                                                                                          $          2,209                                                                                   $    162,630                                                                                   $ --                                                                                   $    164,839
     Total provision                                                                                                                    224                                                                                         42,808                                                                                                 58                                                                                         43,090
     Net charge-offs:
          Charge-offs                                                                                                                  (262 )                                                                                      (25,224 )                                                                                   --                                                                                        (25,486 )
          Recoveries                                                                                      --                                                    3,284                                               --                                                    3,284  
                                                                                                        -------------------- -------------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------- --------------------
     Net charge-offs                                                                                                                   (262 )                                                                                      (21,940 )                                                                                   --                                                                                        (22,202 )
     Loan sales(1)                                                                                        --                                                   (1,026 )                                                                --                                                   (1,026 )
                                                                                                        -------------------- -------------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------- --------------------
Ending Balance                                                                                                             $          2,171                                                                $    182,472                                                                $             58                                                                $    184,701  
                                                                                                        ==================== ============== ====================                                           ==================== ========== ====================                                           ==================== ============== ====================                                           ==================== ========== ====================
Allowance:
Ending balance: individually evaluated for impairment                                                                      $ --                                                                                   $     86,930                                                                                   $ --                                                                                   $     86,930
Ending balance: collectively evaluated for impairment                                                                      $          2,171                                                                                   $     95,542                                                                                   $             58                                                                                   $     97,771
Loans:
Ending balance: individually evaluated for impairment                                                                      $ --                                                                                   $    612,606                                                                                   $ --                                                                                   $    612,606
Ending balance: collectively evaluated for impairment                                                                      $      1,010,908                                                                                   $ 13,639,069                                                                                   $         12,894                                                                                   $ 14,662,871
Net charge-offs as a percentage of average loans in repayment                                                                          0.13 %                                                                                         0.95 %                                                                                   -- %
(annualized)(2)
Allowance as a percentage of the ending total loan balance                                                                             0.21 %                                                                                         1.28 %                                                                                   -- %
Allowance as a percentage of the ending loans in repayment(2)                                                                          0.28 %                                                                                         1.88 %                                                                                   -- %
Allowance coverage of net charge-offs (annualized)                                                                                     2.07                                                                                           2.08                                                                                     --
Ending total loans, gross                                                                                                  $      1,010,908                                                                                   $ 14,251,675                                                                                   $ --
Average loans in repayment(2)                                                                                              $        788,196                                                                                   $  9,265,149                                                                                   $ --
Ending loans in repayment(2)                                                                                               $        786,332                                                                                   $  9,709,758                                                                                   $ --
                                                                                                                                                                                                                                                                                                                                                                                                                                              
________
(1)   Represents fair value adjustments on loans sold.
                          
(2)                      Loans in repayment include loans on which borrowers are making
                         interest only or fixed payments, as well as loans that have entered
                         full principal and interest repayment status after any applicable
                         grace period.
                          
                                                                                                                                                                                                                                                       
                                                                                                                                                                                                                                                                                   Year Ended
                                                                                                                                                                                                                                                                                December 31, 2017
                                                                                                           ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                                                               FFELP                                                                                      Private Education                                                                                    Personal                                                                                           Total
                                                                                                                                     Loans                                                                                            Loans                                                                                            Loans
----------------------------------------------------------------                                           ------------------------------------------------------                                             --------------------------------------------------                                             ------------------------------------------------------                                             --------------------------------------------------
Allowance for Loan Losses:
Beginning balance                                                                                                             $          2,171                                                                                   $    182,472                                                                                   $             58                                                                                   $    184,701
     Total provision                                                                                                                       (85 )                                                                                      178,542                                                                                              7,138                                                                                        185,595
     Net charge-offs:
          Charge-offs                                                                                                                     (954 )                                                                                     (130,063 )                                                                                             (579 )                                                                                     (131,596 )
          Recoveries                                                                                         --                                                   17,635                                                           11                                                   17,646  
                                                                                                           -------------------- -------------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------- --------------------
     Net charge-offs                                                                                                                      (954 )                                                                                     (112,428 )                                                                                             (568 )                                                                                     (113,950 )
     Loan sales(1)                                                                                           --                                                   (4,871 )                                                                --                                                   (4,871 )
                                                                                                           -------------------- -------------- --------------------                                           -------------------- ---------- --------------------                                           -------------------- -------------- --------------------                                           -------------------- ---------- --------------------
Ending Balance                                                                                                                $          1,132                                                                $    243,715                                                                $          6,628                                                                $    251,475  
                                                                                                           ==================== ============== ====================                                           ==================== ========== ====================                                           ==================== ============== ====================                                           ==================== ========== ====================
Allowance:
Ending balance: individually evaluated for impairment                                                                         $ --                                                                                   $     94,682                                                                                   $ --                                                                                   $     94,682
Ending balance: collectively evaluated for impairment                                                                         $          1,132                                                                                   $    149,033                                                                                   $          6,628                                                                                   $    156,793
Loans:
Ending balance: individually evaluated for impairment                                                                         $ --                                                                                   $    990,351                                                                                   $ --                                                                                   $    990,351
Ending balance: collectively evaluated for impairment                                                                         $        927,660                                                                                   $ 16,441,816                                                                                   $        400,280                                                                                   $ 17,769,756
Net charge-offs as a percentage of average loans in repayment(2)                                                                          0.13 %                                                                                         1.03 %                                                                                             0.47 %
Allowance as a percentage of the ending total loan balance                                                                                0.12 %                                                                                         1.40 %                                                                                             1.66 %
Allowance as a percentage of the ending loans in repayment(2)                                                                             0.15 %                                                                                         2.00 %                                                                                             1.66 %
Allowance coverage of net charge-offs                                                                                                     1.19                                                                                           2.17                                                                                              11.67
Ending total loans, gross                                                                                                     $        927,660                                                                                   $ 17,432,167                                                                                   $        400,280
Average loans in repayment(2)                                                                                                 $        745,039                                                                                   $ 10,881,058                                                                                   $        119,606
Ending loans in repayment(2)                                                                                                  $        746,456                                                                                   $ 12,206,033                                                                                   $        400,280
                                                                                                                                                                                                                                                                                                                                                                                                                                                 
______
(1)   Represents fair value adjustments on loans sold.
                          
(2)                      Loans in repayment include loans on which borrowers are making
                         interest only or fixed payments, as well as loans that have entered
                         full principal and interest repayment status after any applicable
                         grace period.
                          
                                                                  
                                                                                                                                                                                                                                  Year Ended
                                                                                                                                                                                                                               December 31, 2016
                                                                                      ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                                    FFELP                                  Private Education                                Personal                                       Total
                                                                                                          Loans                                                                              Loans                                                                              Loans
----------------------------------------------------------------                      -----------------------------------------                                             -----------------------------------                                             -----------------------------------------                                             ------------------------------------
Allowance for Loan Losses:
Beginning balance                                                                           $          3,691                                                                    $    108,816                                                                      $ --                                                                     $    112,507
   Total provision                                                                                      (172 )                                                                       159,511                                                                                    58                                                                          159,397
   Net charge-offs:
      Charge-offs                                                                                     (1,348 )                                                                       (90,203 )                                                                      --                                                                          (91,551 )
      Recoveries                                                                              --                                                       10,382                                                     --                                                        10,382  
                                                                                      -------------------------------------------                                           -------------------------------------                                           -------------------------------------------                                           --------------------------------------
   Net charge-offs                                                                                    (1,348 )                                                                       (79,821 )                                                                      --                                                                          (81,169 )
   Loan sales(1)                                                                              --                                                       (6,034 )                                                                      --                                                        (6,034 )
                                                                                      -------------------------------------------                                           -------------------------------------                                           -------------------------------------------                                           --------------------------------------
Ending Balance                                                                              $          2,171                                                 $    182,472                                                   $             58                                                  $    184,701  
                                                                                      ======= ============== ====================                                           ===== ========== ====================                                           ======= ============== ====================                                           ====== ========== ====================
Allowance:
Ending balance: individually evaluated for impairment                                       $ --                                                                    $     86,930                                                                      $ --                                                                     $     86,930
Ending balance: collectively evaluated for impairment                                       $          2,171                                                                    $     95,542                                                                      $             58                                                                     $     97,771
Loans:
Ending balance: individually evaluated for impairment                                       $ --                                                                    $    612,606                                                                      $ --                                                                     $    612,606
Ending balance: collectively evaluated for impairment                                       $      1,010,908                                                                    $ 13,639,069                                                                      $         12,894                                                                     $ 14,662,871
Net charge-offs as a percentage of average loans in repayment(2)                                        0.17                    %                                                       0.96 %                                                                      --                    %
Allowance as a percentage of the ending total loan balance                                              0.21                    %                                                       1.28 %                                                                      --                    %
Allowance as a percentage of the ending loans in repayment(2)                                           0.28                    %                                                       1.88 %                                                                      --                    %
Allowance coverage of net charge-offs                                                                   1.61                                                                            2.29                                                                        --
Ending total loans, gross                                                                   $      1,010,908                                                                    $ 14,251,675                                                                      $ --
Average loans in repayment(2)                                                               $        793,203                                                                    $  8,283,036                                                                      $ --
Ending loans in repayment(2)                                                                $        786,332                                                                    $  9,709,758                                                                      $ --
                                                                                                                                                                                                                                                                                                                                                   
______
     
(1)                      Represents fair value adjustments on loans sold.
                          
(2)                      Loans in repayment include loans on which borrowers are making
                         interest only or fixed payments, as well as loans that have entered
                         full principal and interest repayment status after any applicable
                         grace period.
                          
                                      
Private Education Loan Key Credit Quality Indicators
                                                                                                                    
                                                                                                                                                                                                                                          Private Education Loans
                                                                                                                                                                                                                                         Credit Quality Indicators
                                                                                                                   ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                December 31, 2017                                                                                                December 31, 2016
                                                                                                                   -----------------------------------------------------------------------------------------------------------                                          ---------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                                                          Balance(1)                          % of Balance                                                               Balance(1)                            % of Balance
------------------------------                                                                                     ----------------------------------                                             --------------------------                                            ----------------------------------                                             ------------------------------
                                                                                                                                                                                                                                                                                                                                                        
Cosigners:
  With cosigner                                                                                                       $ 15,658,539                                                                    90 %                                                                 $ 12,816,512                                                                        90 %
  Without cosigner                                                                                                       1,773,628                                                 10                                                   1,435,163                                                     10  
                                                                                                                   ------------------------------------                                           ------ --------------------                                           ------------------------------------                                           ---------- --------------------
Total                                                                                                                 $ 17,432,167                                                100 %                                                                 $ 14,251,675                                                    100 %
                                                                                                                   ==== ========== ====================                                           ====== ====================                                           ==== ========== ====================                                           ========== ====================
                                                                                                                                                                                                                                                                                                                                                        
FICO at Original Approval(2):
  Less than 670                                                                                                       $  1,153,591                                                                     6 %                                                                 $    920,132                                                                         6 %
                                                                                                                         2,596,959                                                                    15                                                                      2,092,722                                                                        15
  670-699
                                                                                                                         5,714,554                                                                    33                                                                      4,639,958                                                                        33
  700-749
  Greater than or equal to 750                                                                                           7,967,063                                                 46                                                   6,598,863                                                     46  
                                                                                                                   ------------------------------------                                           ------ --------------------                                           ------------------------------------                                           ---------- --------------------
Total                                                                                                                 $ 17,432,167                                                100 %                                                                 $ 14,251,675                                                    100 %
                                                                                                                   ==== ========== ====================                                           ====== ====================                                           ==== ========== ====================                                           ========== ====================
                                                                                                                                                                                                                                                                                                                                                        
Seasoning(3):
  1-12 payments                                                                                                       $  4,256,592                                                                    24 %                                                                 $  3,737,110                                                                        26 %
  13-24 payments                                                                                                         3,229,465                                                                    19                                                                      2,841,107                                                                        20
  25-36 payments                                                                                                         2,429,238                                                                    14                                                                      1,839,764                                                                        13
  37-48 payments                                                                                                         1,502,327                                                                     9                                                                        917,633                                                                         7
  More than 48 payments                                                                                                  1,256,813                                                                     7                                                                        726,106                                                                         5
  Not yet in repayment                                                                                                   4,757,732                                                 27                                                   4,189,955                                                     29  
                                                                                                                   ------------------------------------                                           ------ --------------------                                           ------------------------------------                                           ---------- --------------------
Total                                                                                                                 $ 17,432,167                                                100 %                                                                 $ 14,251,675                                                    100 %
                                                                                                                   ==== ========== ====================                                           ====== ====================                                           ==== ========== ====================                                           ========== ====================
                                                                                                                                                                                                                                                                                                                                                                   
______
     
(1)                      Balance represents gross Private Education Loans.
                          
(2)                      Represents the higher credit score of the cosigner or the borrower.
                          
(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.
                          
                                
Personal Loan Key Credit Quality Indicators
                                                     
                                                                                                                                                                                     Personal Loans
                                                                                                                                                                                Credit Quality Indicators
                                                    ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                     December 31, 2017                                                                                                      December 31, 2016
                                                    -------------------------------------------------------------------------------------------------------------------                                          -------------------------------------------------------------------------------------------------------------------
Credit Quality Indicators:                                       Balance(1)                              % of Balance                                                                   Balance(1)                              % of Balance
------------------------------                      ----------------------------------                                             ----------------------------------                                            ----------------------------------                                             ----------------------------------
                                                                                                                                                                                                                                                                                                 
FICO at Original Approval:
  Less than 670                                           $  32,156                                                                             8 %                                                                    $   1,189                                                                             9 %
                                                            114,731                                                                            29                                                                          3,139                                                                            24
  670-699
                                                            182,025                                                                            45                                                                          5,678                                                                            44
  700-749
  Greater than or equal to 750                               71,368                                                         18                                                       2,888                                                         23  
                                                    ------------------------------------                                           -------------- --------------------                                           ------------------------------------                                           -------------- --------------------
Total                                                     $ 400,280                                                        100 %                                                                    $  12,894                                                        100 %
                                                    ======= ======= ====================                                           ============== ====================                                           ======= ======= ====================                                           ============== ====================
                                                                                                                                                                                                                                                                                                 
Seasoning(2):
  0-12 payments                                           $ 400,280                                                                           100 %                                                                    $  12,894                                                                           100 %
  13-24 payments                                     --                                                                --                                                                 --                                                                --
  25-36 payments                                     --                                                                --                                                                 --                                                                --
  37-48 payments                                     --                                                                --                                                                 --                                                                --
  More than 48 payments                              --                                             --                                              --                                             --  
                                                    ------------------------------------                                           -------------- --------------------                                           ------------------------------------                                           -------------- --------------------
Total                                                     $ 400,280                                                        100 %                                                                    $  12,894                                                        100 %
                                                    ======= ======= ====================                                           ============== ====================                                           ======= ======= ====================                                           ============== ====================
______
     
(1)                      Balance represents gross Personal Loans.
                          
(2)                      Number of months in active repayment 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. Loans in repayment include loans
making interest only or fixed payments as well as loans that have
entered full principal and interest repayment status after any
applicable grace period.
                                                                
                                                                                                                                                                         Private Education Loans
                                                                                    -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                                                                              December 31,
                                                                                    -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                                                             2017                                                                                    2016
                                                                                    --------------------------------------------------------------------------------------                     --------------------------------------------------------------------------------------
(Dollars in thousands)                                                                              Balance                              %                                                  Balance                              %
--------------------------------------------------------------                      -----------------------------------                        -------------------------                       -----------------------------------                        -------------------------
Loans in-school/grace/deferment(1)                                                      $  4,757,732                                                                                               $  4,189,955
Loans in forbearance(2)                                                                      468,402                                                                                                    351,962
Loans in repayment and percentage of each status:
      Loans current                                                                       11,911,128                                            97.6                    %                             9,509,394                                            97.9                    %
      Loans delinquent 31-60 days(3)                                                         179,002                                             1.5                                                    124,773                                             1.3
      Loans delinquent 61-90 days(3)                                                          78,292                                             0.6                                                     51,423                                             0.5
      Loans delinquent greater than 90 days(3)                                                37,611                          0.3                                  24,168                          0.3  
                                                                                    -------------------------------------                      ----- --------------------                      -------------------------------------                      ----- --------------------
  Total loans in repayment                                                                12,206,033                        100.0                    %                             9,709,758                        100.0                    %
                                                                                    -------------------------------------                      ===== ====================                      -------------------------------------                      ===== ====================
Total loans, gross                                                                        17,432,167                                                                                                 14,251,675
Deferred origination costs                                                                    56,378                                                                                  44,206  
                                                                                    -------------------------------------                                                                      -------------------------------------
Total loans                                                                               17,488,545                                                                                                 14,295,881
Allowance for losses                                                                        (243,715 )                                                                                                 (182,472 )
                                                                                    -------------------------------------                                                                      -------------------------------------
Total loans, net                                                                        $ 17,244,830                                                                            $ 14,113,409  
                                                                                    ===== ========== ====================                                                                      ===== ========== ====================
Percentage of loans in repayment                                                                                                                70.0                    %                                                                                  68.1                    %
                                                                                                                                               ===== ====================                                                                                 ===== ====================
Delinquencies as a percentage of loans in repayment                                                                                              2.4                    %                                                                                   2.1                    %
                                                                                                                                               ===== ====================                                                                                 ===== ====================
Loans in forbearance as a percentage of loans in repayment and                                                                                   3.7                    %                                                                                   3.5                    %
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.
                          
 
Loans in full principal and interest repayment status in our Private
Education Loan portfolio at December 31, 2017 increased by 38
percent compared with December 31, 2016, and total 41 percent of our
Private Education Loan portfolio at December 31, 2017.
 
 
Summary of Our Loan Portfolio
 
Ending Loan Balances, net
                                                    
                                                                                                                                                                            December 31, 2017
                                                                        -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                  Private                               FFELP                                  Personal                                     Total
                                                                                       Education                                                 Loans                                                       Loans                                                       Portfolio
                                                                                         Loans
--------------------------------------------------                      -----------------------------------                        ------------------------------                        -----------------------------------------                        ------------------------------------
Total loan portfolio:
   In-school(1)                                                             $  3,740,237                                             $     257                                                 $ --                                                $  3,740,494
   Grace, repayment and other(2)                                              13,691,930                            927,403                                       400,280                               15,019,613  
                                                                        -------------------------------------                      --------------------------------                      -------------------------------------------                      --------------------------------------
Total, gross                                                                  17,432,167                                               927,660                                                          400,280                                                  18,760,107
Deferred origination costs and unamortized premium                                56,378                                                 2,631                                                   --                                                      59,009
Allowance for loan losses                                                       (243,715 )                                              (1,132 )                                                         (6,628 )                                                  (251,475 )
                                                                        -------------------------------------                      --------------------------------                      -------------------------------------------                      --------------------------------------
Total loan portfolio, net                                                   $ 17,244,830                          $ 929,159                              $        393,652                             $ 18,567,641  
                                                                        ===== ========== ====================                      === ======= ====================                      ======= ============== ====================                      ====== ========== ====================
                                                                                                                                                                                                                                                           
% of total                                                                            93 %                                                   5 %                                                              2 %                                                       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.
                                                    
                                                                                                                                                                              December 31, 2016
                                                                        ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                  Private                                 FFELP                                   Personal                                     Total
                                                                                       Education                                                   Loans                                                        Loans                                                       Portfolio
                                                                                         Loans
--------------------------------------------------                      -----------------------------------                        ---------------------------------                        -----------------------------------------                        ------------------------------------
Total loan portfolio:
   In-school(1)                                                             $  3,371,870                                              $       377                                                 $ --                                                $  3,372,247
   Grace, repayment and other(2)                                              10,879,805                             1,010,531                                        12,893                               11,903,229  
                                                                        -------------------------------------                      -----------------------------------                      -------------------------------------------                      --------------------------------------
Total, gross                                                                  14,251,675                                                1,010,908                                                           12,893                                                  15,275,476
Deferred origination costs and unamortized premium                                44,206                                                    2,941                                                                                                                       47,147
Allowance for loan losses                                                       (182,472 )                                                 (2,171 )                                                            (58 )                                                  (184,701 )
                                                                        -------------------------------------                      -----------------------------------                      -------------------------------------------                      --------------------------------------
Total loan portfolio, net                                                   $ 14,113,409                           $ 1,011,678                              $         12,835                             $ 15,137,922  
                                                                        ===== ========== ====================                      ==== ========= ====================                      ======= ============== ====================                      ====== ========== ====================
                                                                                                                                                                                                                                                              
% of total                                                                            93 %                                                      7 %                                                 -- %                                                       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 Loan Balances (net of unamortized premium/discount)
                                                                                                                                                                                                                                   
                                                                                                                                          Quarters Ended                                                                                                                                                                                                                 Years Ended
                                                                                                                                           December 31,                                                                                                                                                                                                                 December 31,
                                             --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                              2017                                                                                       2016                                                                                                           2017                                                                                       2016
-----------------------                      ----------------------------------------------------------------------------                           -------------------------------------------------------------------------------------------                           ----------------------------------------------------------------------------                           -------------------------------------------------------------------------------------------
Private Education Loans                        $ 17,318,182      94 %                                               $ 14,057,669                 93 %                                           $ 16,176,351      94 %                                               $ 12,747,756                 92 %
FFELP Loans                                         939,971                                             5                                                    1,024,402                                                        7                                                  970,738                                             5                                                    1,063,325                                                        8
Personal Loans                                      265,113                          1                            --                        --                               112,857                          1                            --                        --  
                                             -----------------------------------                      --- --------------------                      ---------------------------------------                      -------------- --------------------                      -----------------------------------                      --- --------------------                      ---------------------------------------                      -------------- --------------------
Total portfolio                                $ 18,523,266                        100 %                                               $ 15,082,071                                   100 %                                           $ 17,259,946                        100 %                                               $ 13,811,081                                   100 %
                                             === ========== ====================                      === ====================                      ======= ========== ====================                      ============== ====================                      === ========== ====================                      === ====================                      ======= ========== ====================                      ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                              
                                                            
Loan Activity
                                                                                 
                                                                                                                                                                                Quarter Ended December 31, 2017
                                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                          Private                                  FFELP                                     Personal                                     Total
                                                                                               Education                                                    Loans                                                          Loans                                                       Portfolio
                                                                                                 Loans
----------------------------------------------------------                      -----------------------------------                        ------------------------------------                        -----------------------------------------                        -----------------------------------
Beginning balance                                                                   $ 16,959,241                                                 $   950,524                                                 $        130,700                                               $ 18,040,465
Acquisitions and originations                                                            638,634                                              --                                                          290,387                                                    929,021
Capitalized interest and deferred origination cost premium                               240,593                                                       6,141                                                   --                                                    246,734
amortization
Sales                                                                                     (1,495 )                                            --                                                   --                                                     (1,495 )
Loan consolidation to third-parties                                                     (209,273 )                                                    (6,692 )                                                 --                                                   (215,965 )
Repayments and other                                                                    (382,870 )                                                   (20,814 )                                                        (27,435 )                                                 (431,119 )
                                                                                -------------------------------------                      --------------------------------------                      -------------------------------------------                      -------------------------------------
Ending balance                                                                      $ 17,244,830                              $   929,159                              $        393,652                            $ 18,567,641  
                                                                                ===== ========== ====================                      ======= ========= ====================                      ======= ============== ====================                      ===== ========== ====================
                                                                                 
                                                                                 
                                                                                                                                                                                Quarter Ended December 31, 2016
                                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                          Private                                                     FFELP                                                        Personal                                                        Total
                                                                                               Education                                                    Loans                                                          Loans                                                       Portfolio
                                                                                                 Loans
----------------------------------------------------------                      -----------------------------------                        ------------------------------------                        -----------------------------------------                        -----------------------------------
Beginning balance                                                                   $ 13,725,959                                                 $ 1,034,545                                                 $ --                                               $ 14,760,504
Acquisitions and originations                                                            612,991                                              --                                                           12,926                                                    625,917
Capitalized interest and deferred origination cost premium                               181,052                                                       8,901                                                   --                                                    189,953
amortization
Sales                                                                                     (1,609 )                                            --                                                   --                                                     (1,609 )
Loan consolidation to third-parties                                                     (104,493 )                                                   (10,118 )                                                 --                                                   (114,611 )
Repayments and other                                                                    (300,491 )                                                   (21,650 )                                                            (91 )                                                 (322,232 )
                                                                                -------------------------------------                      --------------------------------------                      -------------------------------------------                      -------------------------------------
Ending balance                                                                      $ 14,113,409                              $ 1,011,678                              $         12,835                            $ 15,137,922  
                                                                                ===== ========== ====================                      ======= ========= ====================                      ======= ============== ====================                      ===== ========== ====================
                                                                                 
                                                                                 
                                                                                                                                                                                 Year Ended December 31, 2017
                                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                          Private                                                     FFELP                                                        Personal                                                        Total
                                                                                               Education                                                    Loans                                                          Loans                                                       Portfolio
                                                                                                 Loans
----------------------------------------------------------                      -----------------------------------                        ------------------------------------                        -----------------------------------------                        -----------------------------------
Beginning balance                                                                   $ 14,113,409                                                 $ 1,011,678                                                 $         12,835                                               $ 15,137,922
Acquisitions and originations                                                          4,818,843                                              --                                                          424,889                                                  5,243,732
Capitalized interest and deferred origination cost premium                               462,030                                                      31,396                                                   --                                                    493,426
amortization
Sales                                                                                     (6,992 )                                            --                                                   --                                                     (6,992 )
Loan consolidation to third-parties                                                     (630,877 )                                                   (36,856 )                                                 --                                                   (667,733 )
Repayments and other                                                                  (1,511,583 )                                                   (77,059 )                                                        (44,072 )                                               (1,632,714 )
                                                                                -------------------------------------                      --------------------------------------                      -------------------------------------------                      -------------------------------------
Ending balance                                                                      $ 17,244,830                              $   929,159                              $        393,652                            $ 18,567,641  
                                                                                ===== ========== ====================                      ======= ========= ====================                      ======= ============== ====================                      ===== ========== ====================
                                                                                 
                                                                                 
                                                                                                                                                                                 Year Ended December 31, 2016
                                                                                ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                                          Private                                                     FFELP                                                        Personal                                                        Total
                                                                                               Education                                                    Loans                                                          Loans                                                       Portfolio
                                                                                                 Loans
----------------------------------------------------------                      -----------------------------------                        ------------------------------------                        -----------------------------------------                        -----------------------------------
Beginning balance                                                                   $ 10,515,505                                                 $ 1,115,086                                                 $ --                                               $ 11,630,591
Acquisitions and originations                                                          4,685,622                                              --                                                           12,926                                                  4,698,548
Capitalized interest and deferred origination cost premium                               339,163                                                      35,774                                                   --                                                    374,937
amortization
Sales                                                                                     (9,521 )                                            --                                                   --                                                     (9,521 )
Loan consolidation to third-parties                                                     (277,636 )                                                   (45,014 )                                                 --                                                   (322,650 )
Repayments and other                                                                  (1,139,724 )                                                   (94,168 )                                                            (91 )                                               (1,233,983 )
                                                                                -------------------------------------                      --------------------------------------                      -------------------------------------------                      -------------------------------------
Ending balance                                                                      $ 14,113,409                              $ 1,011,678                              $         12,835                            $ 15,137,922  
                                                                                ===== ========== ====================                      ======= ========= ====================                      ======= ============== ====================                      ===== ========== ====================
                                                                                                                                                                                                                                                                                          
 
Private Education Loan Originations
The following table summarizes our Private Education Loan
originations. Originations represent loans that were funded or
acquired during the period presented.
                                                                                                                                                                                                                                                      
                                                                                                                                                            Quarters Ended                                                                                                                                                                                                                     Years Ended
                                                                                                                                                             December 31,                                                                                                                                                                                                                     December 31,
                                                               ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------                     ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
(Dollars in thousands)                                                       2017                                   %                                 2016                                   %                                                      2017                                    %                                   2016                                    %
-----------------------------------------                      ------------------------------                        ----------------------------------                       ------------------------------                        ----------------------------------                       ---------------------------------                        ----------------------------------                       ---------------------------------                        ----------------------------------
Smart Option - interest only(1)                                  $ 157,032                                                       25                    %                        $ 156,508                                                       26                    %                         $ 1,214,927                                                       25                    %                         $ 1,189,517                                                       25                    %
Smart Option - fixed pay(1)                                        186,370                                                       29                                               177,771                                                       29                                                1,380,892                                                       29                                                1,403,421                                                       30
Smart Option - deferred(1)                                         276,854                                                       44                                               263,296                                                       44                                                2,118,719                                                       44                                                2,034,100                                                       44
Smart Option - principal and interest                                1,333                                           --                                                 1,319                                           --                                                    8,234                                           --                                                    7,953                                           --
Parent Loan                                                         12,315                                     2                              8,794                                     1                                77,388                                     2                                31,272                                     1  
                                                               --------------------------------                      -------------- --------------------                      --------------------------------                      -------------- --------------------                      -----------------------------------                      -------------- --------------------                      -----------------------------------                      -------------- --------------------
Total Private Education Loan originations                        $ 633,904                                   100                    %                        $ 607,688                                   100                    %                         $ 4,800,160                                   100                    %                         $ 4,666,263                                   100                    %
                                                               === ======= ====================                      ============== ====================                      === ======= ====================                      ============== ====================                      ==== ========= ====================                      ============== ====================                      ==== ========= ====================                      ============== ====================
                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
Percentage of loans with a cosigner                                     85                    %                                                                                        87                    %                                                                                           88                    %                                                                                           89                    %
Average FICO at approval(2)                                                                 746                                                                                                            748                                                                                                               747                                                                                                               748
_______
(1)   Interest only, fixed pay and deferred describe the payment option
                         while in school or in grace period.
(2)                      Represents the higher credit score of the cosigner or the borrower.
                          
 
Deposits
 
Interest bearing deposits are summarized as follows:
                               
                                                                                                                                 December 31,
                                                   ------------------------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                   2017                                                                       2016
                                                   --------------------------------------------------------------------                     -------------------------------------------------------------------------------
(Dollars in thousands)                                            Amount                   Year-End                                     Amount                        Year-End
                                                                                                              Weighted                                                                                      Weighted
                                                                                                               Average                                                                                       Average
                                                                                                               Stated                                                                                        Stated
                                                                                                               Rate(1)                                                                                       Rate(1)
-----------------------------                      ----------------------------------                        --------                       ----------------------------------                        -------------------
                                                                                                                                                                                                       
Money market                                          $  7,731,966                                           1.80 %                            $  7,129,404                                                 1.22 %
Savings                                                    738,243                                           1.10 %                                 834,521                                                 0.84 %
Certificates of deposit                                  7,034,121                        1.93 %                               5,471,065                              1.41 %
                                                   ------------------------------------                                                     ------------------------------------
  Deposits - interest bearing                         $ 15,504,330                                                          $ 13,434,990  
                                                   ==== ========== ====================                                                     ==== ========== ====================
_____
(1)   Includes the effect of interest rate swaps in effective hedge
                         relationships.
                          
                                                                                                     
Regulatory Capital
                                                                                                                                             
(Dollars in thousands)                                                                        Actual                                                             "Well Capitalized"
                                                                                                                                                                                         Regulatory Requirements
------------------------------------------------------                      -------------------------------------                           --------------------------------------------------------------------------------------------------------
                                                                                Amount        Ratio                             Amount                                                Ratio
                                                                            ---------------------------------- --------                     --------------------                                                                       ---------------------
As of December 31, 2017:                                                                   
Common Equity Tier 1 Capital (to Risk-Weighted Assets)                       $ 2,386,220                       12.0 %                              $ 1,289,682                       greater-than or equal to                             6.5 %
Tier 1 Capital (to Risk-Weighted Assets)                                     $ 2,386,220                       12.0 %                              $ 1,587,300                       greater-than or equal to                             8.0 %
Total Capital (to Risk-Weighted Assets)                                      $ 2,634,301                       13.3 %                              $ 1,984,126                       greater-than or equal to                            10.0 %
Tier 1 Capital (to Average Assets)                                           $ 2,386,220                       11.2 %                              $ 1,067,779                       greater-than or equal to                             5.0 %
                                                                                                                                                                                                                                        
As of December 31, 2016:
Common Equity Tier 1 Capital (to Risk-Weighted Assets)                       $ 2,011,583                       12.6 %                              $ 1,038,638                       greater-than or equal to                             6.5 %
Tier 1 Capital (to Risk-Weighted Assets)                                     $ 2,011,583                       12.6 %                              $ 1,278,323                       greater-than or equal to                             8.0 %
Total Capital (to Risk-Weighted Assets)                                      $ 2,197,997                       13.8 %                              $ 1,597,904                       greater-than or equal to                            10.0 %
Tier 1 Capital (to Average Assets)                                           $ 2,011,583                       11.1 %                              $   907,565                       greater-than or equal to                             5.0 %
                                                                                                                                                                                                                                        

http://cts.businesswire.com/ct/CT?id=bwnews&sty=20180117006482r1&sid=cmtx6&distro=nx&lang=en

View source version on businesswire.com: http://www.businesswire.com/news/home/20180117006482/en/

SOURCE: Sallie Mae"> <Property FormalName="PrimaryTwitterHandle" Value="@SallieMae

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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