XML 40 R27.htm IDEA: XBRL DOCUMENT
v3.25.1

Loans Held for Investment (Tables) | 3 Months Ended
--- | ---
Mar. 31, 2025
Receivables [Abstract] |
Schedule of Allowance for Credit Losses and Recorded Investments in Loans | The following table summarizes our Private Education Loan sales to unaffiliated third parties for the periods presented.
Three Months Ended March 31, (dollars in millions) |  | 2025 |  | 2024
Loan principal |  | $ | 1,840 |  |  | $ | 1,952 |
Capitalized interest |  | 163 |  |  | 151 |
Total Private Education Loans sold |  | $ | 2,003 |  |  | $ | 2,103 |
Gain on sale of loans, net |  | $ | 188 |  |  | $ | 143 |
Allowance for Credit Losses Metrics The following tables provide a summary of the activity in the allowance for loan losses and the allowance for unfunded loan commitments during the three months ended March 31, 2025 and 2024.
Three Months Ended March 31, 2025 (dollars in thousands) |  |  |  | Private Education Loans |  |  |  |
Allowance for loan losses, beginning balance |  |  |  | $ | 1,435,920 |  |  |  |  |
Transfer from allowance for unfunded loan commitments |  |  |  | 105,134 |  |  |  |  |
Provisions: |  |  |  |  |  |  |  |
Provision for current period |  |  |  | 95,289 |  |  |  |  |
Loan sale reduction to provision |  |  |  | (116,459) |  |  |  |  |
Total provisions(1) |  |  |  | (21,170) |  |  |  |  |
Net charge-offs: |  |  |  |  |  |  |  |
Charge-offs |  |  |  | (86,903) |  |  |  |  |
Recoveries |  |  |  | 10,734 |  |  |  |  |
Net charge-offs |  |  |  | (76,169) |  |  |  |  |
Allowance for loan losses, ending balance |  |  |  | $ | 1,443,715 |  |  |  |  |
Allowance for unfunded loan commitments, beginning balance(2) |  |  |  | 84,568 |  |  |  |  |
Provision(1)(3) |  |  |  | 44,456 |  |  |  |  |
Transfer to allowance for loan losses |  |  |  | (105,134) |  |  |  |  |
Allowance for unfunded loan commitments, ending balance(2) |  |  |  | 23,890 |  |  |  |  |
Total allowance for credit losses, ending balance |  |  |  | $ | 1,467,605 |  |  |  |  |
Net charge-offs as a percentage of average loans in repayment (annualized)(4) |  |  |  | 1.88 | % |  |  |  |
Allowance for loan losses coverage of net charge-offs (annualized) |  |  |  | 4.74 |  |  |  |  |
Total Allowance Percentage of Private Education Loan Exposure(5) |  |  |  | 5.97 | % |  |  |  |
Ending total loans, gross |  |  |  | $ | 22,432,125 |  |  |  |  |
Average loans in repayment(4) |  |  |  | $ | 16,240,511 |  |  |  |  |
Ending loans in repayment(4) |  |  |  | $ | 15,903,797 |  |  |  |  |
Unfunded loan commitments |  |  |  | $ | 584,140 |  |  |  |  |
Total accrued interest receivable |  |  |  | $ | 1,558,465 |  |  |  |  |
(1) See “—Provisions for Credit Losses” below in this Note 4 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income. (2) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “—Unfunded Loan Commitments” in this Note 4 for further discussion. (3 ) Includes incremental provision for new commitments and changes to provision for existing commitments. (4) 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 (but, for purposes of the table, do not include loans in the “loans in forbearance” metric). (5) The Total Allowance Percentage of Private Education Loan Exposure is the total allowance for credit losses as a percentage of ending total loans plus unfunded loan commitments and total accrued interest receivable on Private Education Loans.
Three Months Ended March 31, 2024 (dollars in thousands) |  | FFELP Loans |  | Private Education Loans |  |  |  | Total
Allowance for loan losses, beginning balance |  | $ | 4,667 |  |  | $ | 1,335,105 |  |  |  |  | $ | 1,339,772 |
Transfer from allowance for unfunded loan commitments |  | — |  |  | 131,614 |  |  |  |  | 131,614 |
Provisions: |  |  |  |  |  |  |  |
Provision for current period |  | 83 |  |  | 94,476 |  |  |  |  | 94,559 |
Loan sale reduction to provision |  | — |  |  | (133,204) |  |  |  |  | (133,204) |
Total provisions(1) |  | 83 |  |  | (38,728) |  |  |  |  | (38,645) |
Net charge-offs: |  |  |  |  |  |  |  |
Charge-offs |  | (123) |  |  | (93,874) |  |  |  |  | (93,997) |
Recoveries |  | — |  |  | 11,314 |  |  |  |  | 11,314 |
Net charge-offs |  | (123) |  |  | (82,560) |  |  |  |  | (82,683) |
Allowance for loan losses, ending balance |  | $ | 4,627 |  |  | $ | 1,345,431 |  |  |  |  | $ | 1,350,058 |
Allowance for unfunded loan commitments, beginning balance(2) |  | — |  |  | 112,962 |  |  |  |  | 112,962 |
Provision(1)(3) |  | — |  |  | 50,686 |  |  |  |  | 50,686 |
Transfer to allowance for loan losses |  | — |  |  | (131,614) |  |  |  |  | (131,614) |
Allowance for unfunded loan commitments, ending balance(2) |  | — |  |  | 32,034 |  |  |  |  | 32,034 |
Total allowance for credit losses, ending balance |  | $ | 4,627 |  |  | $ | 1,377,465 |  |  |  |  | $ | 1,382,092 |
Net charge-offs as a percentage of average loans in repayment (annualized)(4) |  | 0.12 | % |  | 2.14 | % |  |  |  |
Allowance for loan losses coverage of net charge-offs (annualized) |  | 9.40 |  |  | 4.07 |  |  |  |  |
Total Allowance Percentage of Private Education Loan Exposure(5) |  | 0.90 | % |  | 5.99 | % |  |  |  |
Ending total loans, gross |  | $ | 516,363 |  |  | $ | 20,952,346 |  |  |  |  |
Average loans in repayment(4) |  | $ | 399,680 |  |  | $ | 15,407,495 |  |  |  |  |
Ending loans in repayment(4) |  | $ | 393,820 |  |  | $ | 14,961,692 |  |  |  |  |
Unfunded loan commitments |  | $ | — |  |  | $ | 673,492 |  |  |  |  |
Total accrued interest receivable |  | $ | — |  |  | $ | 1,357,987 |  |  |  |  |
(1) See “—Provisions for Credit Losses” below in this Note 4 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income. (2) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “—Unfunded Loan Commitments” in this Note 4 for further discussion. (3) Includes incremental provision for new commitments and changes to provision for existing commitments. (4) 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 (but, for purposes of the table, do not include loans in the “loans in forbearance” metric). (5) The Total Allowance Percentage of Private Education Loan Exposure is the total allowance for credit losses as a percentage of ending total loans plus unfunded loan commitments and total accrued interest receivable on Private Education Loans. l Provisions for Credit Losses Below is a reconciliation of the provisions for credit losses reported in the consolidated statements of income.
Consolidated Statements of Income Provisions for Credit Losses Reconciliation |  |
Three Months Ended March 31, |  |  |  |  |  |
(dollars in thousands) |  | 2025 |  | 2024 |  |
Private Education Loan provisions for credit losses: |  |  |  |  |  |
Provisions for loan losses |  | $ | (21,170) |  |  | $ | (38,728) |  |  |
Provisions for unfunded loan commitments |  | 44,456 |  |  | 50,686 |  |  |
Total Private Education Loan provisions for credit losses |  | 23,286 |  |  | 11,958 |  |  |
Total FFELP Loans provisions for credit losses |  | — |  |  | 83 |  |  |
Provisions for credit losses reported in consolidated statements of income |  | $ | 23,286 |  |  | $ | 12,041 |  |  |
The table below summarizes 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.
| 2025 |  | 2024
Three Months Ended March 31, (dollars in thousands) | Allowance |  | Unfunded Commitments |  | Allowance |  | Unfunded Commitments
Beginning Balance | $ | 84,568 |  |  | $ | 2,311,660 |  |  | $ | 112,962 |  |  | $ | 2,221,077 |
Provision/New commitments - net(1) | 44,456 |  |  | 1,043,958 |  |  | 50,686 |  |  | 1,034,458 |
Transfer - funded loans(2) | (105,134) |  |  | (2,771,478) |  |  | (131,614) |  |  | (2,582,043) |
Ending Balance | $ | 23,890 |  |  | $ | 584,140 |  |  | $ | 32,034 |  |  | $ | 673,492 |
(1) Net of expirations of commitments unused. Also includes incremental provision for new commitments and changes to provision for existing commitments. (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.
Schedule of Loans Held for Investment | Loans held for investment are summarized as follows:
|  | March 31, |  | December 31,
(Dollars in thousands) |  | 2025 |  | 2024
Loans Held for Investment, net: |  |  |  |
Fixed-rate |  | $ | 17,463,708 |  |  | $ | 17,093,382 |
Variable-rate |  | 4,968,417 |  |  | 5,141,626 |
Total Private Education Loans, gross |  | 22,432,125 |  |  | 22,235,008 |
Deferred origination costs and unamortized premium/(discount) |  | 102,794 |  |  | 103,070 |
Allowance for credit losses |  | (1,443,715) |  |  | (1,435,920) |
Loans held for investment, net |  | $ | 21,091,204 |  |  | $ | 20,902,158 |
The average balance (net of unamortized premium/(discount)) and the respective weighted average interest rates of loans held for investment in our portfolio are summarized as follows:
|  | 2025 |  | 2024
Three Months Ended March 31, (dollars in thousands) |  | Average Balance |  | Weighted Average Interest Rate |  | Average Balance |  | Weighted Average Interest Rate
Private Education Loans |  | $ | 22,916,916 |  |  | 10.59 | % |  | $ | 21,442,744 |  |  | 11.01 | %
FFELP Loans(1) |  | — |  |  | — |  |  | 527,012 |  |  | 7.24 |
Total portfolio |  | $ | 22,916,916 |  |  |  |  | $ | 21,969,756 |  |  |
(1) FFELP Loans were transferred to loans held for sale during the third quarter of 2024 and subsequently sold to a third-party in the fourth quarter of 2024.

X
- Definition Tabular disclosure of allowance for credit loss on financing receivable. + References Reference 1: http://fasb.org/us-gaap/role/ref/otherTransitionRef -Topic 310 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 11B -Publisher FASB -URI https://asc.fasb.org/1943274/2147481962/310-10-50-11B Reference 2: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 326 -SubTopic 20 -Name Accounting Standards Codification -Section 50 -Paragraph 13 -Publisher FASB -URI https://asc.fasb.org/1943274/2147479319/326-20-50-13 + Details
Name: | us-gaap_AllowanceForCreditLossesOnFinancingReceivablesTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ReceivablesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the various types of trade accounts and notes receivable and for each the gross carrying value, allowance, and net carrying value as of the balance sheet date. Presentation is categorized by current, noncurrent and unclassified receivables. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(4)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 210 -SubTopic 10 -Name Accounting Standards Codification -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(3)) -Publisher FASB -URI https://asc.fasb.org/1943274/2147480566/210-10-S99-1 + Details
Name: | us-gaap_ScheduleOfAccountsNotesLoansAndFinancingReceivableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration