XML 41 R27.htm IDEA: XBRL DOCUMENT v3.21.1

Unfunded Loan Commitments (Tables)

3 Months Ended

Mar. 31, 2021

Credit Loss [Abstract]

Allowance for credit losses and recorded investments in loans

Allowance for Credit Losses Metrics

						Allowance for Credit Losses
						Three Months Ended March 31, 2021
						FFELP Loans						Private Education Loans						Credit Cards						Total
Allowance for Credit Losses
Beginning balance						$	4,378					$	1,355,844					$	1,501					$	1,361,723
Transfer from unfunded commitment liability(1)						—						126,880						—						126,880
Provisions:
Provision for current period						29						(254,942)						(86)						(254,999)
Loan sale reduction to provision						—						(8,858)						—						(8,858)
Loan transfer from held-for-sale						—						1,887						—						1,887
Total provisions(2)						29						(261,913)						(86)						(261,970)
Net charge-offs:
Charge-offs						(89)						(55,139)						(88)						(55,316)
Recoveries						—						7,703						1						7,704
Net charge-offs						(89)						(47,436)						(87)						(47,612)
Loan sales						—						—						—						—
Ending Balance						$	4,318					$	1,173,375					$	1,328					$	1,179,021
Allowance:
Ending balance: individually evaluated for impairment						$	—					$	95,536					$	—					$	95,536
Ending balance: collectively evaluated for impairment						$	4,318					$	1,077,839					$	1,328					$	1,083,485
Loans:
Ending balance: individually evaluated for impairment						$	—					$	1,225,604					$	—					$	1,225,604
Ending balance: collectively evaluated for impairment						$	727,664					$	19,516,236					$	11,309					$	20,255,209
Net charge-offs as a percentage of average loans in repayment (annualized)(3)						0.06		%				1.29		%				2.92		%
Allowance as a percentage of the ending total loan balance						0.59		%				5.66		%				11.74		%
Allowance as a percentage of the ending loans in repayment(3)						0.80		%				7.94		%				11.74		%
Allowance coverage of net charge-offs (annualized)						12.13						6.18						3.82
Ending total loans, gross						$	727,664					$	20,741,840					$	11,309
Average loans in repayment(3)						$	554,510					$	14,743,508					$	11,909
Ending loans in repayment(3)						$	540,903					$	14,777,939					$	11,309

____________

(1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively.

(2) Below is a reconciliation of the provision for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses.

Consolidated Statements of Income Provisions for Credit Losses Reconciliation
						Three Months Ended   March 31, 2021
Private Education Loan provisions for credit losses:
Provisions for loan losses						$	(261,913)
Provisions for unfunded loan commitments						36,203
Total Private Education Loan provisions for credit losses						(225,710)
Other impacts to the provisions for credit losses:
FFELP Loans						29
Credit Cards						(86)
Total						(57)
Provisions for credit losses reported in consolidated statements of income						$	(225,767)

(3) 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.

						Allowance for Credit Losses
						Three Months Ended March 31, 2020
						FFELP  Loans						Private Education Loans						Personal Loans						Credit Cards						Total
Allowance for Credit Losses
Beginning balance						$	1,633					$	374,300					$	65,877					$	102					$	441,912
Day 1 adjustment for the adoption of CECL						2,852						1,060,830						79,183						188						1,143,053
Balance at January 1, 2020						4,485						1,435,130						145,060						290						1,584,965
Transfer from unfunded commitment liability(1)						—						142,075						—						—						142,075
Provisions:
Provision for current period						37						143,862						25,318						291						169,508
Loan sale reduction to provision						—						(161,793)						—						—						(161,793)
Total provisions(2)						37						(17,931)						25,318						291						7,715
Net charge-offs:
Charge-offs						(226)						(51,469)						(19,247)						(7)						(70,949)
Recoveries						—						7,976						1,542						—						9,518
Net charge-offs						(226)						(43,493)						(17,705)						(7)						(61,431)
Ending Balance						$	4,296					$	1,515,781					$	152,673					$	574					$	1,673,324
Allowance:
Ending balance: individually evaluated for impairment						$	—					$	150,822					$	—					$	—					$	150,822
Ending balance: collectively evaluated for impairment						$	4,296					$	1,364,959					$	152,673					$	574					$	1,522,502
Loans:
Ending balance: individually evaluated for impairment						$	—					$	1,518,763					$	—					$	—					$	1,518,763
Ending balance: collectively evaluated for impairment						$	766,954					$	20,107,984					$	899,704					$	7,234					$	21,781,876
Net charge-offs as a percentage of average loans in repayment (annualized)(3)						0.15		%				1.05		%				7.27		%				0.52		%
Allowance as a percentage of the ending total loan balance						0.56		%				7.01		%				16.97		%				7.93		%
Allowance as a percentage of the ending loans in repayment(3)						0.74		%				10.11		%				16.97		%				7.93		%
Allowance coverage of net charge-offs (annualized)						4.75						8.71						2.16						20.50
Ending total loans, gross						$	766,954					$	21,626,747					$	899,704					$	7,234
Average loans in repayment(3)						$	600,534					$	16,521,356					$	973,772					$	5,364
Ending loans in repayment(3)						$	581,997					$	14,988,345					$	899,704					$	7,234

____________

(1) See Note 6, “Unfunded Loan Commitments,” for a summary of the activity in the allowance for and balance of unfunded loan commitments, respectively.

(2)Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income. When a new loan commitment is made, we record the CECL allowance as a liability for unfunded loan commitments by recording a provision for credit losses. When the loan is funded, we transfer that liability to the allowance for credit losses.

Consolidated Statements of Income Provisions for Credit Losses Reconciliation
						Three Months Ended   March 31, 2020
Private Education Loan provisions for credit losses:
Provisions for loan losses						$	(17,931)
Provisions for unfunded loan commitments						53,543
Total Private Education Loan provisions for credit losses						35,612
Other impacts to the provisions for credit losses:
Personal Loans						25,318
FFELP Loans						37
Credit Cards						291
Total						25,646
Provisions for credit losses reported in consolidated statements of income						$	61,258

(3) 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.

The tables below summarize the activity in the allowance recorded to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheets, as well as the activity in the unfunded commitments balance.

			Three Months Ended March 31,
			2021												2020
			Allowance						Unfunded Commitments						Allowance						Unfunded Commitments
Beginning Balance			$	110,044					$	1,673,018					$	2,481					$	1,910,603
Day 1 adjustment for the adoption of CECL			—						—						115,758						—
Balance at January 1			110,044						1,673,018						118,239						1,910,603
Provision/New commitments - net(1)			40,197						843,161						49,561						834,946
Other provision items			(3,994)						—						3,982						—
Transfer - funded loans(2)			(126,880)						(2,058,726)						(142,075)						(2,295,742)
Ending Balance			$	19,367					$	457,453					$	29,707					$	449,807

________________             

(1)     Net of expirations of commitments unused.

(2)     When a loan commitment is funded, its related liability for credit losses (which originally was recorded as a provision for unfunded commitments) is transferred to the allowance for credit losses.

X

- Definition

Tabular disclosure of allowance for credit loss on financing receivable.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section 50
-Paragraph 11B
-URI http://asc.fasb.org/extlink&oid=121611835&loc=SL6953423-111524

Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 326
-SubTopic 20
-Section 50
-Paragraph 13
-URI http://asc.fasb.org/extlink&oid=121599337&loc=SL82919249-210447

+ Details

Name:	us-gaap_AllowanceForCreditLossesOnFinancingReceivablesTableTextBlock
Namespace Prefix:	us-gaap_
Data Type:	nonnum:textBlockItemType
Balance Type:	na
Period Type:	duration

X

- References

No definition available.

+ Details

Name:	us-gaap_CreditLossAbstract
Namespace Prefix:	us-gaap_
Data Type:	xbrli:stringItemType
Balance Type:	na
Period Type:	duration