Slm Corporation · NASDAQ:SLM
Slm — Q3 2020 Earnings Presentation
11 slides from Slm's earnings presentation, Oct 22, 2020
Slide 1: SLM Corporation Earnings Presentation Third Quarter 2020
SLM Corporation Earnings Presentation Third Quarter 2020 October 22, 2020
Slide 2: Forward-Looking Statements and Disclaimer
Forward-Looking Statements and Disclaimer Cautionary Note Regarding Forward-Looking Statements The following information is current as of October 21, 2020 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial resu
Slide 3: Proven Resiliency During the COVID-19 Pandemic
Proven Resiliency During the COVID-19 Pandemic Credit Return to School16 And • Forbearance as a % of loans in repayment and Originations14 forbearance has been reduced from the mid- • For the 2020/2021 Academic Year, 27% on teen peak in Q2 2020, to 4.3% on Sept. 30, campus, 15% remote, and 58% hybri
Slide 4: Clear Strategy to Ensure Appropriate Valuation
Clear Strategy to Ensure Appropriate Valuation Maximize the Optimize the value Maintain a Change the profitability and of our brand and rigorous and narrative around growth of our core our attractive predictable capital private student business client base allocation and lending to address return pr
Slide 5: Maximize the Profitability and Growth of our Core Business
Maximize the Profitability and Growth of our Core Business Revenue • Net Income of $171 million in Q3 2020 compared to $128 million in Q3 2019. • Originated $1.9 billion in Private Education Loans in Q3 2020 (-16% vs. Q3 2019). Non-interest Expenses • Non-interest expenses of $151.6 million in Q3 20
Slide 6: Quarterly Financial Highlights
Quarterly Financial Highlights3 3Q 2Q 3Q 3Q 2Q 3Q 2020 2020 2019 2020 2020 2019 Income Statement ($ Millions) Key Performance Metrics Total interest income $482 $485 $590 Net Interest Margin 4.79% 4.55% 5.55% Total interest expense 118 136 185 Net Interest Income 365 349 405 Yield—Total Interest-ear
Slide 7: Private Education Loan Originations
Private Education Loan Originations9,14 $6,000 $5,625 $5,500 $5,315 6% $5,300 11% $5,000 $4,800 (6%) $4,666 3% $4,908 $4,694 8% $4,500 $4,330 $4,000 Originations ($MM) $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 2015 2016 2017 2018 2019 YTD 2020 Actuals Forecast Originations Statistics Q3 2020
Slide 8: Credit Performance
Credit Performance11,12,13 Private Education Loans Quarters Ended September 30, 2020 June 30, 2020 September 30, 2019 ($ Thousands) Balance % Balance % Balance % Loans in forbearance and percentage of each status: Loans in forbearance - current $ 705,162 100.0% $ 1,420,585 95.2% $ 603,280 100.0% Loa
Slide 9: Provision for Credit Losses Q3 2020
Provision for Credit Losses Q3 2020 • Moody’s U.S. and College Graduate Age>25 unemployment forecasts dropped from June to September due to a revision to their model as well as an improvement in their general outlook. • Other significant factors impacting provision in the quarter include unfunded co
Slide 10: Footnotes
Footnotes 1. Derivative Accounting: we provide “Core Earnings” because it is one of several measures management uses to evaluate management performance and allocate corporate resources. “Core Earnings” exclude periodic unrealized gains and losses caused by the mark-to-fair value valuations on deriva
Slide 11: “Core Earnings” to GAAP Reconciliation
“Core Earnings” to GAAP Reconciliation Quarters Ended Sept. 30, 2020 June 30, 2020 Sept. 30, 2019 Dollars in thousands, except per share amounts “Core Earnings” adjustments to GAAP: GAAP net income (loss) $171,028 ($85,211) $128,458 Preferred stock dividends $2,058 $2,478 $4,153 GAAP net income (los