Slide 1: SLM Corporation Earnings Presentation Third Quarter 2017
SLM CORPORATION EARNINGS PRESENTATION THIRD QUARTER 2017 October 19, 2017
Slide 2: Forward-Looking Statements and Disclaimer
| 2 Forward-Looking Statements and Disclaimer Cautionary Note Regarding Forward-Looking Statements The following information is current as of October 18, 2017 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial
Slide 3: Sallie Mae Overview
| 3 Sallie Mae Overview Sallie Mae Key Statistics for Q3 2017 − $0.17 “Core Earnings” Diluted Earnings Per Common Share 6,7 − Portfolio of $17.0 billion of high quality Private Education Loans − 89% of Private Education Loans disbursed in Q3 are cosigned, 90% in Q3 2016 − Average Q3 Private Educatio
Slide 4: Key Financial Metrics
| 4 Key Financial Metrics ($Millions) Q3 2017 Q2 2017 Q3 2016 Private Education Loans, Net $ 16,959 $ 15,523 $ 13,726 Net Interest Income $ 282 $ 270 $ 223 Net Interest Margin 5.85% 5.91% 5.58% Private Education Yield 8.50% 8.33% 8.00% Cost of Funds 1.93% 1.77% 1.40% Operating Expenses1 $ 116 $ 111
Slide 5: High Quality Growth: Disbursements
| 5 High Quality Private Education Loan Growth $5,000 $4,800 3% $4,666 8% $4,500 $4,330 6% 3% $4,166 $4,076 $4,059 $4,000 7% $3,795 Disbursements ($MM) $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 2013 2014 2015 2016 2017 Private Education Loan Disbursements Disbursement Statistics Q3 2017 Q3 2
Slide 6: Private Education Loan Delinquencies
| 6 Private Education Loan Delinquencies4,5,9 September 30, 2017 June 30, 2017 September 30, 2016 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current 11,115,697 97.4% 10,385,289 97.8% 8,724,365 98.0% Loans delinquent 31-60 days 175,897 1.6% 132
Slide 7: Earnings Metrics
| 7 Earnings Metrics6,7,8 ($Millions, except per share amounts) Q3 2017 Q2 2017 Q3 2016 GAAP Net Income attributable to SLM Corp Common Stock $ 73.3 $ 66.6 $ 51.6 GAAP Diluted Earnings Per Common Share 0.17 0.15 0.12 "Core Earnings" Adjustments to GAAP (0.9) 2.2 (0.5) "Core Earnings" attributable to
Slide 8: 2017 Guidance Update
| 8 2017 Guidance Update • Full-year Diluted Core EPS: $0.72 • Full-year Private Education Loan Originations: $4.8 billion • Full-year Non-GAAP Operating Efficiency Ratio: 38% - 39%
Slide 9: Footnotes
| 9 Footnotes 1 Includes acquired intangible asset amortization expense. 2 In 2016, our non-GAAP operating efficiency ratio was calculated for the periods presented as the ratio of (a) the total non-interest expense numerator to (b) the net revenue denominator (which consisted of net interest income
Slide 10: "Core Earnings" to GAAP Reconciliation
| 10 “Core Earnings” to GAAP Reconciliation Quarters Ended Sept. 30, June 30, Sept. 30, 2017 2017 2016 (Dollars in thousands, except per share amounts) “Core Earnings” adjustments to GAAP: GAAP net income……….….…….........………………… $ 76,371 $ 70,617 $ 56,965 Preferred stock dividends ………....….........…