09/20/2024 | Press release | Distributed by Public on 09/20/2024 06:29
As
|
Pro Forma
|
||||||||||||
Reported
|
Adjustments
|
Pro Forma
|
|||||||||||
Assets
|
|||||||||||||
FFELP Loans
|
$
|
32,940
|
$
|
-
|
$
|
32,940
|
|||||||
Private Education Loans
|
16,238
|
-
|
16,238
|
||||||||||
Investments
|
132
|
-
|
132
|
||||||||||
Cash and cash equivalents
|
1,088
|
362
|
(A)
|
1,450
|
|||||||||
Restricted cash and cash equivalents
|
2,918
|
-
|
2,918
|
||||||||||
Goodwill and acquired intangible assets, net
|
690
|
(113
|
)
|
(B)
|
577
|
||||||||
Other assets
|
2,616
|
(41
|
)
|
(B)
|
2,575
|
||||||||
Total assets
|
$
|
56,622
|
$
|
208
|
$
|
56,830
|
|||||||
Liabilities
|
|||||||||||||
Short-term borrowings
|
$
|
5,326
|
$
|
-
|
$
|
5,326
|
|||||||
Long-term borrowings
|
47,545
|
-
|
47,545
|
||||||||||
Other liabilities
|
1,003
|
42
|
(B) (C)
|
1,045
|
|||||||||
Total liabilities
|
53,874
|
42
|
53,916
|
||||||||||
Equity
|
|||||||||||||
Total equity
|
2,748
|
166
|
(D)
|
2,914
|
|||||||||
Total liabilities and equity
|
$
|
56,622
|
$
|
208
|
$
|
56,830
|
As
|
Pro Forma
|
||||||||||||
Reported
|
Adjustments
|
Pro Forma
|
|||||||||||
Total interest income
|
$
|
4,419
|
$
|
-
|
$
|
4,419
|
|||||||
Total interest expense
|
3,557
|
-
|
3,557
|
||||||||||
Net interest income
|
862
|
-
|
862
|
||||||||||
Less: provisions for loan losses
|
123
|
-
|
123
|
||||||||||
Net interest income after provisions for loan losses
|
739
|
-
|
739
|
||||||||||
Other income (loss):
|
|||||||||||||
Servicing revenue
|
64
|
-
|
64
|
||||||||||
Asset recovery and business processing revenue
|
321
|
(121
|
)
|
(E)
|
200
|
||||||||
Other income
|
21
|
-
|
21
|
||||||||||
Losses on debt repurchases
|
(8
|
)
|
-
|
(8
|
)
|
||||||||
Gains (losses) on derivative and hedging activities, net
|
11
|
-
|
11
|
||||||||||
Total other income
|
409
|
(121
|
)
|
288
|
|||||||||
Expenses:
|
|||||||||||||
Salaries and benefits
|
401
|
(80
|
)
|
(E)
|
321
|
||||||||
Other operating expenses
|
399
|
(21
|
)
|
(E)
|
378
|
||||||||
Total operating expenses
|
800 |
(101 |
) |
699 |
|||||||||
Goodwill and acquired intangible asset impairment and amortization expense
|
10
|
(4
|
)
|
(E)
|
6
|
||||||||
Restructuring/other reorganization expenses
|
25
|
(2
|
)
|
(E)
|
23
|
||||||||
Total expenses
|
835
|
(107
|
)
|
728
|
|||||||||
Income before income tax expense
|
313
|
(14
|
)
|
299
|
|||||||||
Income tax expense
|
85
|
(3
|
)
|
(F)
|
82
|
||||||||
Net income
|
$
|
228
|
$
|
(11
|
)
|
$
|
217
|
||||||
Per Share Amounts:
|
|||||||||||||
Basic earnings per common share
|
$
|
1.87
|
$
|
1.78
|
|||||||||
Average common shares outstanding
|
122
|
122
|
|||||||||||
Diluted earnings per common share
|
$
|
1.85
|
$
|
1.76
|
|||||||||
Average common and common equivalent shares outstanding
|
123
|
123
|
As
|
Pro Forma
|
||||||||||||
Reported
|
Adjustments
|
Pro Forma
|
|||||||||||
Total interest income
|
$
|
2,000
|
$
|
-
|
$
|
2,000
|
|||||||
Total interest expense
|
1,718
|
-
|
1,718
|
||||||||||
Net interest income
|
282
|
-
|
282
|
||||||||||
Less: provisions for loan losses
|
26
|
-
|
26
|
||||||||||
Net interest income after provisions for loan losses
|
256
|
-
|
256
|
||||||||||
Other income (loss):
|
|||||||||||||
Servicing revenue
|
35
|
-
|
35
|
||||||||||
Asset recovery and business processing revenue
|
158
|
(60
|
)
|
(E)
|
98
|
||||||||
Other income
|
13
|
-
|
13
|
||||||||||
Gains (losses) on derivative and hedging activities, net
|
46
|
-
|
46
|
||||||||||
Total other income
|
252
|
(60
|
)
|
192
|
|||||||||
Expenses:
|
|||||||||||||
Salaries and benefits
|
188
|
(38
|
)
|
(E)
|
150
|
||||||||
Other operating expenses
|
162
|
(9
|
)
|
(E)
|
153
|
||||||||
Total operating expenses
|
350 |
(47 |
) |
303 |
|||||||||
Goodwill and acquired intangible asset impairment and amortization expense
|
5
|
(2
|
)
|
(E)
|
3
|
||||||||
Restructuring/other reorganization expenses
|
17
|
-
|
(E)
|
17
|
|||||||||
Total expenses
|
372
|
(49
|
)
|
323
|
|||||||||
Income before income tax expense
|
136
|
(11
|
)
|
125
|
|||||||||
Income tax expense
|
27
|
(3
|
)
|
(F)
|
24
|
||||||||
Net income
|
$
|
109
|
$
|
(8
|
)
|
$
|
101
|
||||||
Per Share Amounts:
|
|||||||||||||
Basic earnings per share
|
$
|
0.98
|
$
|
0.90
|
|||||||||
Average common shares outstanding
|
112
|
112
|
|||||||||||
Diluted earnings per share
|
$
|
0.97
|
$
|
0.89
|
|||||||||
Average common and common equivalent shares outstanding
|
113
|
113
|
(in millions)
|
||||
Cash received (net of selling and other expenses)
|
$
|
362
|
||
Less: Carrying value in Healthcare Services business
|
146
|
|||
Pro forma gain before income tax expense
|
216
|
|||
Less: Income tax expense
|
50
|
|||
Pro forma net gain on sale of our Healthcare Services business
|
$
|
166
|