Slide 1: SLM Corporation Earnings Presentation Fourth Quarter 2022
SLM Corporation Earnings Presentation Fourth Quarter 2022 February 2, 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 February 1, 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: Q4 and Full Year 2022 Highlights
Revenue Q4 and Full • GAAP Net Loss attributable to common stock of $81 million in Q4 2022 driven by reserve Year 2022 build and mark-down of non-marketable equity security, compared to Net Income Highlights attributable to common stock of $305 million in Q4 2021. • Full-year 2022 GAAP Net Income at
Slide 4: Strong Private Education Loan Originations
Strong Private Education Loan Originations8 Origination Season Full-year 2022 $5,975 originations at $6,000 $5,625 10% 6% (5%) $5,423 approximately $6 $5,315 $5,321 2% Actual billion, 10% higher than $5,000 the year-ago period and the highest over the previous 5-year period. $4,000 $ in millions Und
Slide 5: Capital Allocation & Capital Return
Capital Allocation Capital Return & Return • Paid common stock dividend of $0.11 per share in Q4 2022. • Sallie Mae Bank remains well capitalized with 14.2% Total risk-based capital ratio and CET1 ratio of 12.9%. • In the fourth quarter of 2022, we continued our capital return strategy by repurchasi
Slide 6: Quarterly Financial Highlights
Quarterly Financial Highlights3 Q4 Q3 Q4 Q4 Q3 Q4 2022 2022 2021 2022 2022 2021 Income Statement ($ Millions) Key Performance Metrics Total interest income $584 $520 $458 Net Interest Margin 5.37% 5.27% 5.13% Total interest expense 202 150 91 Yield—Total Interest-earning assets 8.21% 7.42% 6.40% Net
Slide 7: Annual Financial Highlights
Annual Financial Highlights3 2022 2021 2022 2021 Income Statement ($ Millions) Key Performance Metrics Total interest income $2,032 $1,777 Net Interest Margin 5.31% 4.81% Total interest expense 543 382 Yield—Total Interest-earning assets 7.24% 6.13% Net Interest Income 1,489 1,395 Less: provisions f
Slide 8: Credit Performance
Credit Performance10, 11, 12, 14 Private Education Loans Held for Investment Quarters Ended December 31, 2022 September 30, 2022 December 31, 2021 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current $ 14,559,347 96.2% $ 14,002,955 96.3% $ 15,00
Slide 9: Allowance for Credit Losses Q4 2022
Allowance for Credit Losses Q4 2022 Consolidated Statements of Income Factors affecting the Provision for Loan Losses Provisions for Credit Losses Reconciliation 4th Quarter of 2022 Quarter Ended ($ Thousands) December 31, 2022 Private Education Loan provisions for credit losses: • Increase to charg
Slide 10: Guidance
Guidance13 For the full-year 2023, the Company expects: $2.50 - $2.70 5% - 6% Diluted Non-GAAP “Core Earnings”15 Private Education Loan Per Common Share Originations Year-Over-Year Growth $345 - $385 million $610 - $620 million Total Loan Portfolio Non-Interest Net Charge-Offs Expenses 10
Slide 11: Footnotes
Footnotes 1. Derivative Accounting: we provide non-GAAP “Core Earnings” because it is one of several measures management uses to evaluate management performance and allocate corporate resources. Non-GAAP “Core Earnings” exclude periodic unrealized gains and losses caused by the mark-to-fair value va
Slide 12: Footnotes (continued)
Footnotes (continued) 14. Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include interest
Slide 13: Non-GAAP Core Earnings to GAAP Reconciliation
Non-GAAP “Core Earnings” to GAAP Reconciliation Quarters Ended Years Ended ($ Thousands except per share amounts) Dec. 31, 2022 Sep. 30, 2022 Dec. 31, 2021 Dec. 31, 2022 Dec. 31, 2021 Non-GAAP “Core Earnings” adjustments to GAAP: GAAP net income (loss) ($77,043) $75,172 $306,265 $469,014 $1,160,513