Slide 1: SLM Corporation Earnings Presentation Third Quarter 2016
SLM CORPORATION EARNINGS PRESENTATION THIRD QUARTER 2016 October 20, 2016
Slide 2: Forward-Looking Statements and Disclaimer
| 2 Forward-Looking Statements and Disclaimer Cautionary Note Regarding Forward-Looking Statements The following information is current as of October 19, 2016 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial
Slide 3: Sallie Mae Overview
| 3 Sallie Mae Overview Sallie Mae Key Statistics for Q3 2016 − $0.12 diluted earnings per share − Portfolio of $13.7 billion of high quality Private Education Loans − 90% of Private Education Loans disbursed in Q3 are cosigned − Average Q3 Private Education Loan originations FICO of 749 − 79% of Pr
Slide 4: Key Financial Metrics
| 4 Key Financial Metrics ($Millions) Q3 2016 Q2 2016 Q3 2015 Private Education Loans, Net $ 13,726 $ 12,183 $ 10,767 Net Interest Income $ 223 $ 213 $ 175 Net Interest Margin 5.58% 5.84% 5.36% Private Education Yield 8.00% 7.98% 7.87% Cost of Funds 1.40% 1.34% 1.20% Operating Expenses 1 $ 100 $ 95
Slide 5: High Quality Private Education Loan Growth
| 5 High Quality Private Education Loan Growth $5,000 $4,600 $4,500 $4,330 6% $4,076 $4,059 6% $4,000 $3,795 7% Disbursements ($MM) $3,500 $3,342 14% $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 2012 2013 2014 2015 2016 Private Education Loan Disbursements Disbursement Statistics Q3 2016 Q3 2015 Disbu
Slide 6: Private Education Loan Delinquencies
| 6 Private Education Loan Delinquencies3,4 September 30, 2016 June 30, 2016 September 30, 2015 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current 8,724,365 98.0% 7,860,994 97.9% 6,529,855 98.1% Loans delinquent 31-60 days 108,591 1.2% 87,990
Slide 7: Earnings Metrics
| 7 Earnings Metrics5,6,7 ($Millions, except per share amounts) Q3 2016 Q2 2016 Q3 2015 GAAP Net Income $ 57 $ 57 $ 46 GAAP Diluted Earnings Per Common Share 0.12 0.12 0.09 "Core Earnings" Adjustments to GAAP (1) (1) 1 "Core Earnings" 56 56 47 "Core Earnings" Diluted Earnings Per Common Share 0.12 0
Slide 8: 2016 Guidance Update
| 8 2016 Guidance Update • Full-year Diluted Core EPS: $0.52 • Full-year Private Education Loan Originations: $4.6 billion • Full-year Non-GAAP Operating Efficiency Ratio Improvement: Exceeds 10%
Slide 9: Footnotes
| 9 Footnotes 1 Includes acquired intangible asset amortization expense. 2 A GAAP-based operating efficiency ratio would compare total non-interest expenses to net revenue (which consists of net interest income, before provisions for credit losses, plus non-interest income). Our operating efficiency
Slide 10: “Core Earnings” to GAAP Reconciliation
| 10 “Core Earnings” to GAAP Reconciliation Quarters Ended Sept. 30, June 30, Sept. 30, 2016 2016 2015 (Dollars in thousands, except per share amounts) “Core Earnings” adjustments to GAAP: GAAP net income……….….……...................………………… $ 56,965 $ 57,205 $ 45,724 Preferred stock dividends ………....…