Slide 1: SLM Corporation Earnings Presentation First Quarter 2019
SLM CORPORATION EARNINGS PRESENTATION FIRST QUARTER 2019 April 18, 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 April 17, 2019 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial result
Slide 3: Highlights
Highlights Earnings • Q1 2019 GAAP diluted earnings per common share increased 25% over Q1 2018 Assets • Originated $2.1 billion in Private Education Loans in Q1 2019 (+8% vs. Q1 2018) • Private Education Loan Portfolio of $21.6 billion (+16% vs. Q1 2018) • Originated $121 million in Personal Loans
Slide 4: Quarterly Financial Highlights
Quarterly Financial Highlights3 1Q 2019 4Q 2018 1Q 2018 Income Statement ($ millions) Total interest income $566 $538 $437 Total interest expense 164 155 104 Net interest income 402 383 333 Less: provisions for credit losses 64 58 54 Total non-interest income 16 13 13 Total non-interest expenses 140
Slide 5: Private Student Loan Originations
Private Student Loan Originations7 $6,000 $5,700 7% $5,500 $5,315 11% $5,000 $4,800 $4,666 3% 8% $4,500 $4,330 $4,000 Originations ($MM) $3,500 $3,000 $2,500 8% $2,131 $2,000 $1,972 $1,500 $1,000 $500 $0 2015 2016 2017 2018 2019 Private Education Loan Originations Originations Statistics Q1 2019 Q1
Slide 6: Credit Performance
Credit Performance9,10,11 Private Education Loans Quarters Ended March 31, 2019 December 31, 2018 March 31, 2018 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current $ 14,927,591 97.5% $ 14,289,705 97.4% $ 12,635,627 97.5% Loans delinquent 31-60
Slide 7: 2019 Guidance
2019 Guidance • Full-year Diluted Core EPS: $1.23- $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 Mar. 31, Dec. 31, Mar. 31, 2019 2018 2018 (Dollars in thousands, except per share amounts) “Core Earnings” adjustments to GAAP: GAAP net income……….….…….........………………… $ 158,189 $ 147,512 $ 126,254 Preferred stock dividends ………....….........……………