Slm Corporation · NASDAQ:SLM
Slm — Q2 2021 Earnings Presentation
13 slides from Slm's earnings presentation, Jul 22, 2021
Slide 1: SLM Corporation Earnings Presentation Second Quarter 2021
Sa I 5 e: SLM Corporation Earnings Presentation Second Quarter 2021 July 22, 2021
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements The following information is current as of July 21, 2021 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial results for the quarter ended June 30, 2021, the
Slide 3: Second quarter performance continues progress toward 2021 targets
Second quarter performance continues progress toward 2021 targets Strengthening Economy • The average unemployment rate for the over 25 year-old college graduate population improved to 3.3% in Q2 2021 from 3.8% in Q1 2021. 15 • 99% of colleges and universities indicate they will operate on a full re
Slide 4: Clear Strategy to Ensure Appropriate Valuation
Clear Strategy to Ensure Appropriate Valuation Maximize the Optimize the value Better inform the Maintain a profitability and of our brand and external narrative rigorous and growth of our core our attractive about student predictable capital business client base lending and Sallie allocation and Ma
Slide 5: Maximize the Profitability and Growth of our Core Business
Maximize the Profitability and Growth of our Core Business Revenue • GAAP Net Income of $140 million in Q2 2021, compared to $(85) million in Q2 2020. • Originated $533 million in Private Education Loans in Q2 2021 (7% increase vs. Q2 2020). Non-interest Expenses • Non-interest expenses of $128 mill
Slide 6: Quarterly Financial Highlights
Quarterly Financial Highlights3 2Q 1Q 2Q 2Q 1Q 2Q 2021 2021 2020 2021 2021 2020 Income Statement ($ Millions) Key Performance Metrics Total interest income $435 $436 $485 Net Interest Margin 4.70% 4.40% 4.55% Total interest expense 96 105 136 Net Interest Income 339 331 349 Yield—Total Interest-earn
Slide 7: Originations ($MM)
$6,000 $5,625 6% - 7% 6% (5%) $5,500 $5,315 $5,321 11% $5,000 $4,800 $4,666 3% $4,500 $4,000 Originations ($MM) $3,500 $3,000 $2,798 (7%) $2,598 $2,500 $2,000 $1,500 $1,000 $500 $0 2016 2017 2018 2019 2020 2021 Actuals Forecast Originations Statistics Q2 2021 Q2 2020 Originations($MM) $533 $497 % Co
Slide 8: Private Education Loans Held for Investment
Private Education Loans Held for Investment Quarters Ended June 30, 2021 March 31, 2021 June 30, 2020 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current $ 14,514,659 97.9% $ 14,471,427 97.9% $ 14,190,329 97.8% Loans delinquent 30-59 days 162,5
Slide 9: Provisions for Credit Losses Reconciliation and Unemployment Forecast
Consolidated Statements of Income Provisions for Credit Losses Reconciliation Moody's College Graduate Age>25 Unemployment Forecast 15 (Dollars in thousands) Quarter Ended June 30, 2021 4.50% 4.00% Private Education Loan provisions for credit losses: 3.50% Provisions for credit losses. . . . . . . .
Slide 10: 2021 Full-Year Guidance
For the full-year 2021, the company expects the following: Metrics 2021 Full-Year Guidance GAAP diluted earnings per share $3.15-$3.25 Private Education Loan originations year- 6-7% over-year growth Total loan portfolio net charge-offs $ 215 million - $225 million Non-interest expenses $ 525 million
Slide 11: Core Earnings and Derivative Accounting 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 derivatives that
Slide 12: Footnotes and Sources
15. Source based on U.S. Bureau of Labor Statistics (BLS): Current Population Survey (CPS); Moody's Analytics Forecasted. March Base- College based on Baseline Scenario (March 2021): Household Survey: Unemployment Rate: College Grads, (%, SA) (FLBRCG.IUSA) as of 3/10/21. June Base- College based on
Slide 13: "Core Earnings" to GAAP Reconciliation
“Core Earnings” to GAAP Reconciliation Quarters Ended Jun.30, 2021 Mar. 31, 2021 Jun.30, 2020 Dollars in thousands, except per share amounts “Core Earnings” adjustments to GAAP: GAAP net income (loss) $140,201 $641,207 $(85,211) Preferred stock dividends $1,192 $1,201 $2,478 GAAP net income (loss) a