Slide 1: 2014 3rd Quarter Review Earnings Call Presentation
2014 3RD QUARTER REVIEW EARNINGS CALL PRESENTATION OCTOBER 23, 2014 1 1
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements The following information is current as of October 22, 2014 (unless otherwise noted) and should be read in connection with SLM Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 (the “2014 Form 10-Q”), and the aud
Slide 3: Sallie Mae Bank Overview
Sallie Mae Bank Overview Sallie Mae Bank Key Portfolio Statistics − Portfolio of $7.8 billion of high quality Private Education Loans − 90% cosigned − Average Originations FICO of 749 year to date − Nearly 80% of the loans have a FICO > 700 − 19% of our loans are in full principal and interest repay
Slide 4: Q3 Key Financial Metrics
Q3 Key Financial Metrics Q3 2014 Q2 2014 Q3 2013 ($Millions) Private Education Loans $ 7,829 $ 7,483 $ 6,563 Net Interest Income 144 144 117 Net Interest Margin 5.25% 5.33% 5.14% Private Education Yield 8.20% 8.23% 8.22% Cost of Funds 1.07% 0.94% 1.11% Operating Expenses 73 61 70 Restructuring Expen
Slide 5: High Quality Private Student Loan Originations Growth
High Quality Private Student Loan Originations Growth $4,500 $4,000 $4,000 $3,801 5% $3,345 14% $3,500 YTD 7.6% Originations ($MM) $3,000 22% $2,737 $2,500 $2,000 $1,500 $1,000 $500 $0 2011 2012 2013 2014 Private Education Loan Originations Originations Statistics ($) Q3 2014 Q3 2013 YTD 2014 YTD 20
Slide 6: Q3 Private Education Loan Delinquencies
Q3 Private Education Loan Delinquencies 3Q 2014 3Q 2013 Balance % Balance % Loans in repayment and percentage of each status: Loans current 4,515,313 98.7% 3,467,447 98.5% Loans delinquent 31-60 days 44,082 1.0 37,059 1.1 Loans delinquent 61-90 days 12,415 0.3 14,467 0.4 Loans delinquent greater tha
Slide 7: Q3 Earnings Metrics
Q3 Earnings Metrics Q3 2014 Q2 2014 Q3 2013 ($Millions) GAAP Earnings $ 83 $ 44 $ 49 GAAP Earnings EPS 0.18 0.09 0.11 Hedge Effectiveness Adjustment (4) 4 0 "Core Earnings" 79 48 49 "Core Earnings" EPS 0.17 0.10 0.11 Core ROA 2.7% 1.7% 2.1% Core ROCE 24.1% 15.4% 16.3% 7 7
Slide 8: 2014 Year End Guidance
2014 Year End Guidance Full Year Originations $4.0 Billion Full Year Operating Expenses $280 Million Full Year Restructuring Expense $32 Million Loan Sales in Q4 $0 Provision for Loan Losses in Q4 $35 Million "Core Earnings" Diluted EPS $0.42 - $0.43 8 8
Slide 9: Appendix
APPENDIX 9 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved.
Slide 10: “Core Earnings” to GAAP Reconciliation
“Core Earnings” to GAAP Reconciliation Three Months Ended Nine Months Ended September 30, September 30, 2014 2013 2014 2013 (Dollars in thousands) Hedge ineffectiveness gains (losses) $ 6,571 $ (49) $ (1,684) $ (118) Interest reclassification (1,170) 346 (3,137) 973 Gains (losses) on derivatives and