Slide 1: SLM Corporation Earnings Presentation Fourth Quarter 2018
SLM CORPORATION EARNINGS PRESENTATION FOURTH QUARTER 2018 January 24, 2019
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 January 23, 2019 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial resu
Slide 3: Highlights
Highlights Earnings • Q4 2018 Core Earnings per common share increased 66% over Q4 2017 (excluding 2017 impact of Tax Act)1,2 Assets • Originated $5.3 billion in Private Education Loans in 2018 (+11% vs. 2017) • Private Education Loan Portfolio of $20.3 billion (+18% vs. 2017) • Originated $455 mill
Slide 4: 4Q18 and Full Year 2018 Financial Results
4Q18 and Full Year 2018 Financial Results3 4Q 2018 3Q 2018 4Q 2017 2018 2017 Income Statement ($ millions) Total interest income $538 $498 $399 $1,935 $1,437 Total interest expense 155 141 90 522 308 Net interest income 383 357 309 1,413 1,129 Less: provision for credit losses 58 70 55 245 186 Total
Slide 5: Private Student Loan Originations
Private Student Loan Originations5 $5,500 $5,315 11% $5,000 $4,800 $4,666 3% 8% $4,500 $4,330 $4,076 6% $4,000 Originations ($MM) $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 2014 2015 2016 2017 2018 Private Education Loan Originations Originations Statistics Q4 2018 Q4 2017 2018 2017 Originati
Slide 6: Credit Performance
Credit Performance7,8,9 Private Education Loans Quarters Ended December 31, 2018 September 30, 2018 December 31, 2017 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current $ 14,289,705 97.4% $ 13,492,029 97.7% $ 11,911,128 97.6% Loans delinquent
Slide 7: 2019 Guidance
2019 Guidance • Full-year Diluted Core EPS: $1.22- $1.26 • 2019 Private Education Loan Originations: $5.7 billion • Full-year Non-GAAP Operating Efficiency Ratio4: 35% - 36% 7
Slide 8: Footnotes
Footnotes 1. Derivative Accounting: “Core Earnings” exclude periodic unrealized gains and losses caused by the mark-to-market valuations on derivatives that do not qualify for hedge accounting treatment under GAAP, but include current period accruals on the derivative instruments. For periods prior
Slide 9: “Core Earnings” to GAAP Reconciliation
“Core Earnings” to GAAP Reconciliation Quarters Ended Year Ended Dec. 31 Sept 30, Dec. 31, Dec. 31 Dec. 31 2018 2018 2017 2018 2017 (Dollars in thousands, except per share am ounts) “Core Earnings” adjustments to GAAP: GAAP net income……….….…….........………………… $ 147,512 $ 103,878 $ 47,003 $ 487,476 $