Slm Corporation · NASDAQ:SLM
Slm — Q1 2013 Earnings Presentation
73 slides from Slm's earnings presentation, May 6, 2013
Slide 1: SLM Corporation Q1 2013 Investor Presentation
SLM CORPORATION Q1 2013 Investor Presentation MAY 6, 2013
Slide 2: Forward-Looking Statements; Non-GAAP Financial Measures
Forward-Looking Statements; Non-GAAP Financial Measures The following information is current as of May 6, 2013 (unless otherwise noted) and should be read in connection with SLM Corporation’s Annual Report on Form 10-K for the year ended December 31, 2012 (the “2012 Form 10-K”), and subsequent repor
Slide 3: SLM Corporation
SLM Corporation SLM Corporation Overview Page 4 The U.S. Student Loan Market Page 11 Credit Quality Page 19 Servicing: A Competitive Advantage Page 28 Funding Diversity and Liquidity Page 32 Risk-Adjusted Capital Page 42 FFELP ABS Appendix Page 45 Private Education Loan ABS Appendix Page 50 SLM Appe
Slide 4: SLM Corporation Overview
SLM Corporation Overview 4
Slide 5: SLM Corporation
SLM Corporation ► #1 saving, planning and paying for education company with 40-years of leadership in the education lending market ► #1 servicer and collector of student loans in the U.S. for FFELP 1 and Private Education Loans ► Serving 25 million unique customers ► $157 billion student loan portfo
Slide 6: A Brief Corporate History
A Brief Corporate History Loan Portfolio • Congress creates the Guaranteed Student Loan Program, currently known as FFELP 1965 Loan Type $billions % • Congress establishes, as a GSE, the Student Loan Marketing Association or FFELP Loans $119.2 76% “Sallie Mae” 1972 Private Education $37.5 24% • Priv
Slide 7: Q1 13 Core Earnings Summary
Q1 13 “Core Earnings” Summary* ($ millions, except per share amounts) Q1 13 Q4 12 Q1 12 EPS (Reported) $0.61 $0.55 $0.55 Net Income $283 $257 $284 Net Interest Income $675 $714 $732 Loan Loss Provision $241 $314 $253 Fee and Other Income - Excluding Debt Repurchase Gains $258 $201 $198 Debt Repurcha
Slide 8: Consumer Lending Segment Earnings Detail – Core Earnings Basis
Consumer Lending Segment Earnings Detail – “Core Earnings” Basis ($ millions) Q1 13 Q4 12 Q1 12 Private Originations $1,411 $514 $1,160 Average Private Education Loans $38,406 $37,926 $37,749 Net Interest Income after Provision - Private $195 $123 $190 (1) 4.15% 4.07% 4.26% Net Interest Margin - Pri
Slide 9: FFELP Loan Segment Earnings Detail – Core Earnings Basis
FFELP Loan Segment Earnings Detail – “Core Earnings” Basis ($ millions) Q1 13 Q4 12 Q1 12 Average FFELP Loans $121,855 $126,874 $137,193 Net Interest Income after Provision - FFELP $245 $279 $286 Net Interest Margin - FFELP (1) 0.83% 0.89% 0.85% Operating Expenses $157 $165 $185 OpEx Annualized as a
Slide 10: Three Aspects of the SLM Business Model
Three Aspects of the SLM Business Model – Largest originator of Private Education Loans – Significant long term value Consumer Lending – High quality loan originations growing in double digits – Growing net income – Businesses include loan servicing and collections for Department of Education, and 5
Slide 11: The U.S. Student Loan Market
The U.S. Student Loan Market 11
Slide 12: Favorable Student Loan Market Trends
Favorable Student Loan Market Trends Higher Education Enrollment (millions) Annual Cost of Education ($ thousands) Public Private 24.1 23.6 23.9 22.5 22.8 23.2 $36.5 $38.0 $39.5 22.0 22.3 $33.8 $35.1 21.6 21.8 $30.5 $32.0 21.0 21.3 $27.5 $28.7 20.4 19.1 17.9 14.4 15.2 16.2 17.1 11.4 12.1 12.8 13.6 2
Slide 13: College Grads Experience Lower Levels of Unemployment
College Grads Experience Lower Levels of Unemployment 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0.0% Total Unemployment Rate Unemployment Rate with a Bachelor's Degree or Higher Source: U.S. Bureau of Labor Statistics as of 3/31/2013 13
Slide 14: Private Education Loans – High Quality Originations
Private Education Loans – High Quality Originations $1,500 40% $1,250 30% Year over Year Growth $1,000 20% $’s Originated $750 10% $500 0% $250 -10% $0 -20% 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 Originations Year over Year Growth ► Originations of $2.3 bn in 2010 had an average winning F
Slide 15: SLM's Private Education Loan Portfolio
SLM’s Private Education Loan Portfolio ► Private Education Loan Portfolio Characteristics – $37 billion portfolio – 24% of SLM’s total student loan portfolio – Approximately 66% of portfolio has a cosigner, typically a parent – Loans originated since 2009 are approximately 90% cosigned with average
Slide 16: SLM's Private Education Smart Option Student Loan Products
SLM’s Private Education Smart Option Student Loan Products ► Smart Option Student Loan product offers three repayment choices designed to help borrowers balance their goals and budget while in school – Interest Only - Requires interest only payment during in-school period – Fixed Repayment - Require
Slide 17: Role of Private Education Loans
Role of Private Education Loans ► Private Education Loan products bridge the funding gap between the cost of a college education and funds available through U.S. Department of Education (ED) programs, grants, and other sources ► Estimates for academic year 2011-12 project that 21 million students wi
Slide 18: Private Education Loan Industry Originations
Private Education Loan Industry Originations ► 2011-12 academic year market share approximately 47% SLM vs. Industry Originations (billions) $22.9 $21.1 $18.5 $15.5 $11.6 $10.6 $7.1 $7.7 $7.7 $7.1 $6.2 $6.4 $4.8 $4.8 $3.8 $3.0 $2.3 $2.5 03-04 04-05 05-06 06-07 07-08 08-09 09-10 10-11 11-12 SLM Total
Slide 19: Credit Quality
Credit Quality 19
Slide 20: Consumer Lending Segment – High Quality Portfolio
Consumer Lending Segment – High Quality Portfolio Low Risk = Smart Option, Legacy Traditional Cosigned, and Law/MBA/MED/CT/Other Moderate Risk = Legacy Traditional Non-Cosigned 20 Elevated Risk = Non-Traditional
Slide 21: SLM Loan Losses
SLM Loan Losses Total Charge-Offs (1) Charge-Offs (1) = 0.64% = 0.07% Charge-Offs (1) = 2.45% + = U.S. Government Guaranteed Loans(2) 76% Private Education Student Loan Portfolio(2) Loans(2) 24% (1) All data as of Quarter Ended March 31, 2013. Annualized FFELP charge-offs as a percentage of average
Slide 22: Private Credit Default Performance
Private Credit Default Performance ► The probability of default substantially diminishes as the number of payments and years of seasoning increases Historical Defaults by Months in Repayment 96% 98% 100% 89% 91% 94% 100% 82% 86% 77% Percent of Total Defaults 71% 63% 52% 50% 39% 22% 17% 8% 8% 14% 14%
Slide 23: Private Education Loan Portfolio Performance
Private Education Loan Portfolio Performance Q1 13 Q4 12 Q3 12 Q2 12 Q1 12 (1) 2.5% 3.4% 2.6% 2.5% 2.3% Charge-offs - Traditional Portfolio (1) 8.7% 13.2% 10.5% 9.8% 10.3% Charge-offs - Non-Traditional Portfolio (1) 3.0% 4.2% 3.2% 3.1% 3.0% Charge-offs - Total Portfolio 90+ Day Delinq as a % of Repa
Slide 24: Private Education Loan Portfolio Performance
Private Education Loan Portfolio Performance Traditional Loans with a Cosigner Q113 Q412 Q312 Q212 Q112 Outstanding Balance as a % of Total 63% 62% 62% 60% 60% 90+ Delinquency as a % of Repayment 2.4% 2.9% 3.2% 2.7% 2.6% Forbearance as a % of Repayment & Forbearance 3.2% 3.3% 2.9% 3.8% 3.7% (1) Char
Slide 25: Loan Seasoning – March 31, 2013
Loan Seasoning March 31, 2013 Traditional Portfolio Monthly Scheduled Payments Due Loan Status 0-12 payments 13-24 payments 25-36 payments 37-48 payments More than 48 payments Total Not Yet in Repayment 5,959 Loans in Forbearance 502 7.8% 166 3.1% 134 2.4% 71 1.6% 93 1.1% 966 3.2% Loans in Repayment
Slide 26: Loan Seasoning – December 31, 2012
Loan Seasoning D ecemb er 3 1, 2 0 12 T r ad i t i o nal Po r t f o l i o M o nt hl y Sched ul ed Payment s D ue Lo an St at us 0-12 payment s 13-24 payment s 25-36 payment s 37-48 payment s M ore t han 48 payment s Tot al Not Yet in Repayment 5,421 Loans in Forbearance 517 7.9% 173 3.1% 137 2.4% 74
Slide 27: Loan Seasoning – March 31, 2012
Loan Seasoning March 31, 2012 Traditional Portfolio Monthly Scheduled Payments Due Loan Status 0-12 payments 13-24 payments 25-36 payments 37-48 payments More than 48 payments Total Not Yet in Repayment 6,268 Loans in Forbearance 758 9.9% 174 2.8% 116 2.2% 57 1.6% 74 1.2% 1,178 4.1% Loans in Repayme
Slide 28: Servicing: A Competitive Advantage
Servicing: A Competitive Advantage 28
Slide 29: Business Services Segment – Core Earnings Basis
Business Services Segment – “Core Earnings” Basis ► Revenue of $319 million in Q1 2013 ► Approximately 74% of revenue generated by services performed on FFELP Loans ► ED servicing and collections businesses will grow organically with increase in federal Direct Lending 29
Slide 30: Business Services Segment Earnings Detail – Core Earnings Basis
Business Services Segment Earnings Detail – “Core Earnings” Basis ($ millions) Q1 13 Q4 12 Q1 12 Intercompany loan servicing $149 $158 $176 Third-party loan servicing $27 $24 $22 Guarantor servicing $10 $10 $11 Other servicing $26 $26 $27 Contingency revenue $99 $95 $90 Other Business Services reven
Slide 31: Operations locations
Operations locations Cincinnati, OH New York State (GRC) Arcade, Perry, • Collections Horseheads • Collections Newton, MA • Upromise • Business Development Wilkes-Barre, PA • Servicing • Call Center Moorestown, NJ Salt Lake City, UT • Collections • Sallie Mae Bank Newark, DE Headquarters Kansas City
Slide 32: Funding Diversity and Liquidity
Funding Diversity and Liquidity 32
Slide 33: 2013 Capital Markets Summary
2013 Capital Markets Summary ► Issued $2.5 billion of Private ABS ► Issued $2.5 billion of FFELP ABS ► Issued $1.5 billion of long-term unsecured debt ► Sold residual interest in two FFELP securitization trusts totaling $5.8 billion of assets ► Refinanced $787 million of FFELP reset rate notes to te
Slide 34: Recent SLM FFELP ABS Transactions
Recent SLM FFELP ABS Transactions Non-Consolidation FFELP Non-Consolidation FFELP Consolidation FFELP Issue $1,246M SLM Trust 2013-2 $1,249M SLM Trust 2013-1 $1,527M SLM Trust 2012-8 Pricing Date April 3, 2013 February 5, 2013 December 13, 2012 Collateral US Govt. Guaranteed or Insured US Govt. Guar
Slide 35: Recent SLM Private Education Loan ABS Transactions
Recent SLM Private Education Loan ABS Transactions Private Education Loans Private Education Loans Private Education Loans Issue $1,135M SLM Trust 2013-B $1,108M SLM Trust 2013-A $976M SLM Trust 2012-E Pricing Date April 25, 2013 February 27, 2013 October 11, 2012 Collateral Private Education Loans
Slide 36: High Percentage of Student Loans Funded to Term
High Percentage of Student Loans Funded to Term $157 Billion Student Loan Portfolio* as of March 31, 2013 Fixed Spread Liabilities, $25 FFELP ABCP Conduit & FHLB, $7 FFELP Consolidation Term ABS, $70 Straight A Conduit, $7 Private ABCP Conduit, $0.4 Private Term ABS, $20 FFELP Non- Consolidation Ter
Slide 37: Unsecured Debt Maturities
Unsecured Debt Maturities As of March 31, 2013 (par value, $ in billions) $10 $5 $3.7 $2.5 $2.8 $2.3 $1.6 $1.5 $1.8 $1.6 $0.2 $0 ► Total unsecured debt outstanding of $18.1 billion 37 Note: Does not include Sallie Mae Bank or Subsidiary funding
Slide 38: Secured Cash Flow
Secured Cash Flow $ in Millions Q1 13 2012 2011 2010 FFELP Term Securitized Servicing (Cash Paid) $ 129 $ 526 $ 563 $ 533 Net Residual* (Excess Distributions) 152 628 715 746 Other Secured FFELP Net Cash Flow 161 934 568 1,465 Total FFELP $ 441 $ 2,088 $ 1,846 $ 2,743 Private Credit Term Securitized
Slide 39: Projected Cash Flows From FFELP Portfolio
Projected Cash Flows From FFELP Portfolio* ($ in Millions) as of 3/31/13 2013 2014 2015 2016 2017 2018 2019 2020 Projected FFELP Average Balance $111,462 $103,233 $93,609 $84,153 $75,164 $66,443 $58,342 $50,786 Projected Excess Spread $701 $866 $793 $727 $807 $733 $661 $586 Projected Servicing Reven
Slide 40: Sallie Mae Bank
Sallie Mae Bank ► Bank charter – Utah based ILC regulated by FDIC and Utah Department of Financial Institutions (UDFI) – Charter granted October 2005 ► Current bank activity – Total assets of $9.4 billion at March 31, 2013 – Originates Sallie Mae’s Private Education Loans – Funded through affiliate,
Slide 41: Sallie Mae Bank – Capital & Deposits
Sallie Mae Bank – Capital & Deposits Bank Deposits ($ millions) Mar 13 Dec 12 Sep 12 Jun 12 Mar 12 Dec 11 Brokered CDs $3,975 $4,098 $3,346 $2,352 $3,455 $3,734 Brokered – Other 1,077 1,069 810 685 536 529 Retail Deposits 2,521 2,131 1,634 1,676 1,768 1,589 Other Deposits* 469 502 529 446 462 473 To
Slide 42: Risk-Adjusted Capital
Risk-Adjusted Capital 42
Slide 43: Strong Capital Position
Strong Capital Position ($ in Billions) Q1 13 Q4 12 Q1 12 Q1 13 Q4 12 Q3 12 GAAP Capital $5.2 $5.1 $5.0 Goodwill & Intangibles (0.4) (0.4) (0.5) Derivative Mark-to-Market 1.0 1.1 1.1 Unamortized Premiums from Floors 0.5 0.6 0.7 Tangible Economic Capital $6.2 $6.2 $6.4 Private Loan Reserve 2.2 2.2 2.
Slide 44: Capital Allocation
Capital Allocation ► SLM allocates capital internally based on the risk of the assets it supports FFELP Loans 68% of Assets Assets Private Cash, Education Investments, Loans Other Assets 22% of 10% of Assets Assets Capital 12% 0% - 15%* Allocation 0.50% Based on Risk *Other Assets includes a small a
Slide 45: FFELP ABS Appendix
FFELP ABS Appendix 45
Slide 46: Federal Student Loan Market
Federal Student Loan Market Outstanding Government Student Loan Market Distribution FFYE 9/30/2012 ($ in billions) FFELP owned by ED, $147 FDLP, $494 FFELP Loans, $291 Source: Department of Education, U.S. Department of Education FY 2012 Agency Financial Report 46
Slide 47: SLM FFELP ABS Issue Characteristics
SLM FFELP ABS Issue Characteristics Typical SLM FFELP ABS Transaction Features Unique Characteristics of FFELP Loan ABS ► Issue size of $0.5B to $1.5B ► Insurance or guarantee of underlying collateral insulates bondholders from virtually any loss ► Tranches or pass-through denominated in of principa
Slide 48: SLM Stafford/PLUS ABS Trusts Prepayment Analysis
SLM Stafford/PLUS ABS Trusts Prepayment Analysis ► Annualized CPRs for SLM Stafford/PLUS ABS Trusts have decreased significantly as incentives for borrowers to consolidate have declined ► After a temporary increase in mid 2012 due to the Special Direct Consolidation Loan program, CPRs decreased in t
Slide 49: SLM Consolidation ABS Trusts Prepayment Analysis
SLM Consolidation ABS Trusts Prepayment Analysis ► CPRs for SLM Consolidation ABS Trusts have declined significantly following legislation that prevented in-school and re-consolidation of borrowers’ loans ► After a temporary increase in mid 2012 due to the Special Direct Consolidation Loan program,
Slide 50: Private Education Loan ABS Appendix
Private Education Loan ABS Appendix 50
Slide 51: SLM Private Education Loan ABS Issuance Profile
SLM Private Education Loan ABS Issuance Profile Sallie Mae is among largest issuers of ABS globally, having issued close to $264 billion in Private and FFELP ABS transactions to date Sallie Mae has been the market leader in Private Education Loans since the late ’80s, with expected originations
Slide 52: Recent SLM Private Education Loan ABS Characteristics
Recent SLM Private Education Loan ABS Characteristics Recent SLM Private Loan ABS Structures Collateral Characteristics ► Issue size of $500M to $1.5B ► Collateralized by loans made to students and parents to fund college tuition, room ► Triple-A rated senior notes only; no and board subordinate tra
Slide 53: SLM Private Education Loan ABS Summary
SLM Private Education Loan ABS Summary SLM Private Education Loan ABS Trusts (2009-D - Present) Summary Information 09-D 09-CT 10-A 10-B 10-C 11-A 11-B 11-C 12-A 12-B 12-C 12-D 12-E 13-A Bond Amount ($mil) 1,680 590 1,550 869 1,701 562 825 721 547 891 1,135 640 976 1,108 Initial AAA Enhancement (%)
Slide 54: Constraining rating agency AAA/Aaa gross default stress levels at issuance
Constraining rating agency AAA/Aaa gross default stress levels at issuance 70.0% 59.4% 58.0% 60.0% 56.8% 55.7% 54.8% 54.4% Percent of Original Balance 52.6% 52.7% 52.5%52.2% 49.8% 50.1% 50.9% 48.2% 49.3% 48.2% 50.0% 44.4% 40.0% 36.3% 33.9% 30.0% 27.6% 25.6% 20.0% 10.0% 0.0% 06-A 06-B 06-C 07-A 09-A
Slide 55: Private Education ABS Trusts: Forbearance
Private Education ABS Trusts: Forbearance ► Forbearance usage is typically highest when loans enter repayment, and declines as loans season ► Use of forbearance as a collection tool peaked in early 2008; forbearance has since declined as a result of changes in SLM’s forbearance strategy Loans in For
Slide 56: SLM Private Education ABS Trusts: 90+ Day Delinquencies
SLM Private Education ABS Trusts: 90+ Day Delinquencies ► As expected, later stage delinquency has remained elevated in recent periods due to tightening of forbearance policy and the current economic environment ► Increased emphasis on cash payment during delinquency means more borrowers remain in d
Slide 57: SLM Private Education ABS Trusts: Annualized Gross Charge-offs
SLM Private Education ABS Trusts: Annualized Gross Charge-offs ► Charge-offs have declined steadily since late 2009, after an increase resulting from changes to forbearance policy and a weak economic environment Annualized Gross Charge-Offs as a Percent of Loans in Repayment 15.00% All Loans in SLM
Slide 58: SLM Private Education Loan Gross Defaults
SLM Private Education Loan Gross Defaults Actual-to-Date Cumulative Gross Defaults including Bankruptcy Information All Trust Loans 24.0% 22.0% 20.0% 18.63% 17.94% Percent of Original Pool Balance 18.0% 16.77% 16.31% 16.08% 16.0% 14.68% 14.52% 14.75% 14.54% 13.84% 16.04% 14.0% 15.56% 12.67% 14.57% 1
Slide 59: Recoveries
Recoveries ► Recoveries are typically realized over many years as a result of the prevalent use of long- term payment plans ► While student loans are generally non-dischargeable in bankruptcy, the proceedings can postpone recoveries until after borrowers emerge from bankruptcy ► In 2005, Sallie Mae
Slide 60: SLM Private Education Loan ABS Trusts – Prepayment Analysis
SLM Private Education Loan ABS Trusts – Prepayment Analysis ► Constant prepayment rates increased in 2007 due to the introduction of Private Education Consolidation loans, then declined following SLM’s decision to suspend its consolidation loan program in 2008 Historical SLM Private Education Loan A
Slide 61: Cohort Default Triangles
Cohort Default Triangles The following cohort default triangles provide loan performance information for certain Private Education Loans of SLM Corporation and its consolidated subsidiaries that meet such subsidiaries’ current securitization criteria (including those criteria listed below): – Prog
Slide 62: Cohort Default Triangles
Cohort Default Triangles ► The cohort default triangles featured on subsequent slides are segmented by loan program type, FICO score, cosigner status, and school type ► Terms and calculations used in the cohort default triangles are defined below: – Repayment Year – The calendar year loans entered r
Slide 63: Cohort Default Triangles
Cohort Default Triangles Undergraduate/Graduate(1) Disbursed Principal Entering Periodic Defaults by Years in Repayment (2),(3) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $11 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.5% 0.8% 0.4% 0.2% 1.5% 0.7% 0.4% 0.3% 0.0% 0.1% 5.2% 1999
Slide 64: Cohort Default Triangles
Cohort Default Triangles Undergraduate/Graduate(1) With Co-signer Disbursed Principal Entering Periodic Defaults by Years in Repayment (2),(3) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $6 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.8% 1.0% 0.4% 0.0% 0.2% 1.1% 0.1% 0.0% 0.0%
Slide 65: Cohort Default Triangles
Cohort Default Triangles Undergraduate/Graduate(1) Non-Profit Disbursed Principal Entering Periodic Defaults by Years in Repayment (2),(3) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $11 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 0.6% 0.4% 0.4% 0.2% 1.1% 0.7% 0.3% 0.4% 0.0% 0.1
Slide 66: Cohort Default Triangles
Cohort Default Triangles Undergraduate/Graduate(1) Loans, FICO 740-850(2) Disbursed Principal Entering Periodic Defaults by Years in Repayment (3),(4) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $3 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.2% 0.0% 0.4% 0.4% 0.9% 0.9% 0.0% 0.
Slide 67: Cohort Default Triangles
Cohort Default Triangles Undergraduate/Graduate(1) Loans, FICO 670-699(2) Disbursed Principal Entering Periodic Defaults by Years in Repayment (3),(4) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Total 1998 $3 0.0% 0.0% 0.0% 0.0% 0.0% 0.6% 0.6% 0.3% 0.5% 0.3% 2.8% 0.0% 0.5% 0.
Slide 68: Cohort Default Triangles
Cohort Default Triangles Private Consolidation Loans With Co-signer Disbursed Principal Entering Periodic Defaults by Years in Repayment (1),(2) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 Total 2006 $249 0.0% 0.1% 0.1% 0.5% 0.6% 0.6% 0.4% 0.0% 0.0% 2.3% 2007 $675 0.0% 0.0% 0.3% 0.4% 0.6% 0.4% 0
Slide 69: Cohort Default Triangles
Cohort Default Triangles DTC With Co-signer, FICO ≥ 670(1) Disbursed Principal Entering Periodic Defaults by Years in Repayment (2),(3) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 Total 2004 $8 0.0% 0.0% 0.0% 0.0% 0.0% 0.5% 0.1% 0.4% 0.0% 0.0% 0.0% 1.0% 2005 $65 0.0% 0.1% 0.8% 0.8% 1.4% 2.1
Slide 70: Cohort Default Triangles
Cohort Default Triangles Career Training Loans, 670+ FICO(1) Disbursed Principal Entering Periodic Defaults by Years in Repayment (2),(3) Repayment Year Repayment ($m) 0 1 2 3 4 5 6 7 8 9 10 11 Total 2003 $291 0.0% 0.4% 1.4% 1.6% 1.8% 1.4% 1.3% 1.0% 0.8% 0.5% 0.3% 0.0% 10.6% 2004 $383 0.0% 0.4% 1.5%
Slide 71: SLM Appendix
SLM Appendix 71
Slide 72: GAAP to Core Earnings Reconciliation
GAAP to “Core Earnings” Reconciliation ($ in millions, except per share amounts) Quarters Ended March 31, 2013 December 31, 2012 March 31, 2012 Dollars Diluted EPS Dollars Diluted EPS Dollars Diluted EPS GAAP net income $ 346 $0.74 $ 348 $0.74 $ 112 $0.21 Adjustment from GAAP to "Core Earnings" Net
Slide 73: Sallie Mae Investor Relations Website
Sallie Mae Investor Relations Website www.salliemae.com/investors ► SLM student loan trust data (Debt/asset backed securities – SLM Student Loan Trusts) – Static pool information – Detailed portfolio stratifications by trust as of the cutoff date – Accrued interest factors – Quarterly distribution f