SLM CORP Management's Discussion and Analysis of Financial Condition and Results of Operations (form 10-Q) –

quarter ended September 30, 2022 for a further discussion and a complete reconciliation between GAAP net income and non-GAAP “Core Earnings.”
Impact of COVID-19 on Sallie MaeIn April 2022, we returned to our offices, with most employees working under a hybrid model of some days in the office and other days working from home.
For further discussion of the impact of the coronavirus 2019 or COVID-19 (“COVID-19”) pandemic on the Company, see Part II, Item 7. “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Impact of COVID-19 on Sallie Mae” in the 2021 Form 10-K.
Selected Financial Information and Ratios
71,674 $ 540,494 $ 850,689 Diluted earnings per common share
0.24 $ 2.03 $ 2.59 Weighted average shares used to compute diluted earnings per common share
20,561,961 $ 18,980,852 $ 20,561,961 Ending FFELP Loans, net
21,265,316 $ 19,622,302 $ 21,265,316
16,211 $ – $ 16,211
21,658,098 $ 21,359,026 $ 21,584,629 Average Credit Cards(2)
14,894 $ – $ 12,821 (1) We calculate and report our Return on Assets as the ratio of (a) GAAP net income numerator (annualized) to (b) the GAAP total average assets denominator. (2) Credit Card loans were transferred to loans held-for-sale at September 30, 2022.
The following discussion and analysis presents a review of our business and operations as of and for the three and nine months ended September 30, 2022.
Key Financial Measures
Non-GAAP “Core Earnings”
GAAP provides a uniform, comprehensive basis of accounting. Our non-GAAP “Core Earnings” basis of presentation differs from GAAP in the way it treats derivatives as described above.
The following table shows the amount in “Gains (losses) on derivatives and hedging activities, net” that relates to the interest reclassification on the derivative contracts.
71,674 $ 540,494 $ 850,689
74,381 $ 540,682 $ 866,900
Provisions for credit losses $ 207,598 $ 138,442 $ 336,193 $ (17,648)
Total portfolio net charge-offs $ (100,157) $ (48,920) $ (272,209) $ (139,582)
LIBOR Transition
The chart below depicts our current LIBOR exposure at September 30, 2022.
Private Education Loan term securitizations – no contractual fallback
See Part I, Item 1A. “Risk Factors” in the 2021 Form 10-K for additional discussion regarding the risks associated with the transition from LIBOR.
Strategic Imperatives
During the first nine months of 2022, we made the following progress on the above corporate strategic imperatives.
Acquisition of Nitro College
2022 Loan Sales and 2022-A and 2022-B Transactions
Secured Borrowing Facility
Disposition of Credit Card Business
Share Repurchases under our Rule 10b5-1 trading plan
Results of Operations
We present the results of operations below on a consolidated basis in accordance with GAAP.
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