Slide 1: SLM Corporation Earnings Presentation Fourth Quarter 2017
SLM CORPORATION EARNINGS PRESENTATION FOURTH QUARTER 2017 January 18, 2018
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 January 17, 2018 (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 Q4 2017 − $0.10 GAAP diluted earnings per share for Q4 2017 and $0.62 for full year 2017 − $0.19 Core Earnings diluted earnings per share for Q4 2017, absent impact of Tax Act; $0.72 for full year 2017, absent impact of Tax Act − Portfolio of $17.2
Slide 4: Key Financial Metrics
| 4 Key Financial Metrics ($Millions) Q4 2017 Q3 2017 Q4 2016 2017 2016 Private Education Loans, Net $ 17,245 $ 16,959 $ 14,113 $ 17,245 $ 14,113 Net Interest Income $ 309 $ 282 $ 245 $ 1,129 $ 891 Net Interest Margin 6.00% 5.85% 5.55% 5.93% 5.68% Private Education Yield 8.61% 8.50% 8.08% 8.43% 8.02
Slide 5: High Quality Private Education Loan Growth
5 High Quality Private Education Loan Growth $5,000 3% $4,800 $4,666 8% $4,500 $4,330 6% $4,076 7% $4,000 $3,795 Disbursements ($MM) $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 2013 2014 2015 2016 2017 Private Education Loan Disbursements Disbursement Statistics ($) 2013 2014 2015 2016 2017 %
Slide 6: Private Education Loan Delinquencies
| 6 Private Education Loan Delinquencies4,5,6 December 31, 2017 September 30, 2017 December 31, 2016 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current 11,911,128 97.6% 11,115,697 97.4% 9,509,394 97.9% Loans delinquent 31-60 days 179,002 1.5%
Slide 7: Earnings Metrics
| 7 Earnings Metrics7,10,11 ($Millions, except per share amounts) Q4 2017 Q3 2017 Q4 2016 2017 2016 GAAP Net Income attributable to SLM Corp Common Stock $ 43.9 $ 73.3 $ 64.7 $ 273.2 $ 229.1 GAAP Diluted Earnings Per Common Share 0.10 0.17 0.15 0.62 0.53 Core Earnings Adjustments to GAAP 0.4 (0.9) 2
Slide 8: Reconciliation of the Effect of the Tax Act on the GAAP Consolidated Statements of Income
| 8 Reconciliation of the Effect of the Tax Act on the GAAP Consolidated Statements of Income
Slide 9: 2018 Guidance Update
| 9 2018 Guidance Update • Full-year Diluted Core EPS: $0.97-$1.01 • Full-year Private Education Loan Originations: $5.0 billion • Full-year Non-GAAP Operating Efficiency Ratio: 37% - 38% The company plans to make investments in 2018 that will accelerate the diversification of its consumer lending p
Slide 10: Footnotes
| 10 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 inc
Slide 11: “Core Earnings” to GAAP Reconciliation
| 11 “Core Earnings” to GAAP Reconciliation