Slm Corporation · NASDAQ:SLM
Slm — Q3 2023 Earnings Presentation
13 slides from Slm's earnings presentation, Oct 26, 2023
Slide 1: SLM Corporation Earnings Presentation Third Quarter 2023
SLM Corporation Earnings Presentation Third Quarter 2023 October 26, 2023
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 25, 2023 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial resu
Slide 3: 3rd Quarter 2023 Highlights: Balance Sheet & Capital Allocation
Balance Sheet & Capital Allocation 3rd Quarter 2023 • Paid common stock dividend of $0.11 per share in Q3 2023. Highlights • Sallie Mae Bank remains well capitalized with 12.9% Total risk-based capital ratio and CET1 capital ratio of 11.7%. Revenue • GAAP Net Income attributable to common stock of $
Slide 4: Private Education Loan Originations
Private Education Loan Originations8 • Third quarter 2023 originations at approximately $2.5 billion, 4% higher than the year-ago period. • Year-to-Date 2023 Fo re c a s t originations 7.5% higher than year-to-date 2022. Ac tu a l • Through the first nine months of the year, both our application and
Slide 5: Private Education Loans Credit Performance, Funding & Liquidity
Other Key Private Education Loans Performance • On October 13, 2023, the Company sold approximately $1 billion of its Private Education Loans to Metrics an unaffiliated third party. The gain on sale of loans will be recognized in the fourth-quarter 2023 consolidated statements of income. Credit Perf
Slide 6: Quarterly Financial Highlights
Quarterly Financial Highlights3 Q3 Q2 Q3 Q3 Q2 Q3 2023 2023 2022 2023 2023 2022 Income Statement ($ Millions) Key Performance Metrics Total interest income $652 $634 $520 Net Interest Margin 5.43% 5.52% 5.27% Total interest expense 268 247 150 Yield—Total Interest-earning assets 9.21% 9.05% 7.42% Ne
Slide 7: Credit Performance
Credit Performance10, 11, 12, 14 Private Education Loans Held for Investment Quarters Ended September 30, 2023 June 30, 2023 September 30, 2022 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current $ 14,938,462 96.3% $ 14,113,105 96.3% $ 14,002,9
Slide 8: Allowance for Credit Losses Q3 2023
Allowance for Credit Losses Q3 2023 Consolidated Statements of Income Factors affecting the Provision for Credit Losses Provisions for Credit Losses Reconciliation 3rd Quarter of 2023 Quarter Ended ($ Thousands) September 30, 2023 Private Education Loan provisions for credit losses: • Increase to pr
Slide 9: Guidance
Guidance13 For the full-year 2023, the Company expects: $2.55 - $2.65 6% - 7% Diluted Non-GAAP “Core Earnings”15 Private Education Loan Per Common Share Originations Year-Over-Year Growth $375 - $385 $625 - $630 million million Total Loan Portfolio Non-Interest Net Charge-Offs Expenses 9
Slide 10: Footnotes
Footnotes 1. Derivative Accounting: we provide non-GAAP “Core Earnings” because it is one of several measures management uses to evaluate management performance and allocate corporate resources. Non-GAAP “Core Earnings” exclude periodic unrealized gains and losses caused by the mark-to-fair value va
Slide 11: Footnotes (continued)
Footnotes (continued) 14. Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include interest
Slide 12: Non-GAAP Core Earnings to GAAP Reconciliation
Non-GAAP “Core Earnings” to GAAP Reconciliation Quarters Ended September 30, September 30, ($ Thousands except per share amounts) June 30, 2023 2023 2022 Non-GAAP “Core Earnings” adjustments to GAAP: GAAP net income $29,365 $265,065 $75,172 Preferred stock dividends $4,642 $4,274 $2,531 GAAP net inc
Slide 13: Sallie Mae
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