7 unchanged sentences
The Bank is the primary source of interest rate risk within the Company.
−Removed: At December 31, 2022, a significant portion of the Bank’s earning assets and a large balance of deposits were indexed to 1-month LIBOR.
−Removed: As of their first repricing date after the LIBOR Cessation Date, these legacy assets and liabilities were converted to various SOFR fallback rates plus a spread adjustment and are modeled accordingly.
−Removed: Rates are shocked in parallel for shock scenarios unless otherwise indicated.
−Removed: In addition, key rates are modeled with a floor, which indicates how low each specific rate is likely to move in practice.
+Added: At present, a significant portion of the Bank’s earning assets and a large balance of deposits are indexed to 30-day average SOFR.
+Added: Therefore, 30-day average SOFR is considered a core rate in our interest rate risk analysis.
+Added: The 30-day average SOFR and other rates are shocked in parallel for shock scenarios unless otherwise indicated.
Rates are adjusted up or down via a set of scenarios that includes both rate shocks and ramps.
−Removed: Rate shocks represent an immediate and sustained change in key rates, including 30-day average SOFR, with the resulting changes in other indices correlated accordingly.
+Added: Rate shocks represent an immediate and sustained change in key rates, with the resulting changes in other indices correlated accordingly.
Interest rate ramps represent a linear increase in those key rates over the course of 12 months, with the resulting changes in other indices correlated accordingly.
3 unchanged sentences
The EAR results for December 31, 2024 indicate a market risk profile of low sensitivity to rate changes, based on static balance sheet assumptions over the next two years.
−Removed: The EVE metrics demonstrate higher sensitivity than historic results, including results from one year ago.
−Removed: This is due to an increase in the mix of fixed-rate versus variable-rate loan disbursements, which results in our liabilities repricing more quickly than our assets over time.
−Removed: Planned loan sales, which are not included in the static EVE modeling, significantly reduce this exposure.
−Removed: Management is evaluating this trend to determine if further actions are necessary to manage EVE sensitivity.
+Added: The higher mix of fixed-rate versus variable-rate loan disbursements continues, which results in our liabilities repricing more quickly than our assets over time.
+Added: Planned loan sales, which are not included in the static EVE modeling, significantly reduce our EVE exposure.
+Added: Management is evaluating this trend to determine if, and when, further actions are necessary to manage EVE sensitivity.
As of December 31, 2024 2023
10 unchanged sentences
The analysis assumes that retail MMDAs and retail savings balances, while relatively sensitive to interest rate changes, will not correlate 100 percent to the full interest rate shocks or ramps.
−Removed: 2023 Form 10-K — SLM CORPORATION 91
−Removed: Also considered is the impact of FFELP Loans, which receive floor income in low interest rate environments, and will therefore not reprice fully with interest rate shocks.
Although we believe that these measurements provide an estimate of our interest rate sensitivity, they do not account for potential changes in credit quality, balance sheet mix, and size of our balance sheet.
−Removed: They also do not account for other business developments that could affect net income, or for management actions that could affect net income or could be taken to change our risk profile.
+Added: They also do not
+Added: 2024 Form 10-K — SLM CORPORATION 86
+Added: account for other business developments that could affect net income, or for management actions that could affect net income or could be taken to change our risk profile.
Accordingly, we can give no assurance that actual results would not differ materially from the estimated outcomes of our simulations.
25 unchanged sentences
The “Funding Gap” in the above table shows primarily mismatches in the Fed Funds Effective Rate, SOFR rate, 3-month SOFR, Non-Discrete Reset, and Fixed-Rate categories.
−Removed: Changes in the Fed Funds Effective Rate and the daily, weekly, and monthly SOFR categories are generally quite highly correlated, and should offset each other effectively.
+Added: Changes in the Fed Funds Effective Rate, the Non-Discrete Reset, and the daily, weekly, and monthly SOFR, and 3-month SOFR categories are generally quite highly correlated, and should offset each other effectively.
The funding in the fixed-rate bucket includes $1.9 billion and $0.4 billion of non-interest-bearing liabilities.
−Removed: We consider our overall risk to be low and our strategies are designed to maintain low to moderate levels of market exposure.
+Added: We consider the overall repricing risk to be low.
We use interest rate swaps and other derivatives to achieve our risk management objectives.
3 unchanged sentences
While we believe this risk is low, as all of these indices are short-term with rate movements that are highly correlated over a long period of time, market disruptions (which have occurred in recent years) can lead to a temporary divergence between indices, resulting in a negative impact to our earnings.
−Removed: 92 SLM CORPORATION — 2023 Form 10-K
+Added: 2024 Form 10-K — SLM CORPORATION 87
Weighted Average Life
14 unchanged sentences
Reference is made to the financial statements listed under the heading “(a) 1.A.
−Removed: Financial Statements” of Item 15 hereof, which financial statements are incorporated by reference in response to this Item 8.
+Added: Financial Statements” of Part IV, Item 15 hereof, which financial statements are incorporated by reference in response to this Item 8.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
1 unchanged sentence
Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.