Slide 1: Earnings Presentation Third Quarter 2019
| | : SLM Corporation Salll€ ___ Earnings Presentation MaeE’ Third Quarter 2019 October 24, 2019
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements The following information is current as of October 23, 2019 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial results for the quarter ended September 30, 20
Slide 3: Earnings, Assets and Capital Highlights
Earnings • Q3 2019 GAAP diluted earnings per common share increased 26% over Q3 2018 Assets • Originated $2.2 billion in Private Education Loans in Q3 2019 (+6% vs. Q3 18) • Private Education Loan Portfolio of $22.9 billion (+14% vs. Q3 2018) • Originated $159 million in Personal Loans in Q3 2019 Ca
Slide 4: Quarterly Financial Highlights
Quarterly Financial Highlights* 3Q 2019 2Q 2019 3Q 2018 3Q 2019 2Q 2019 3Q 2018 income. Statement (§ millions] $590 sev s498 Key Performance Metrics interest income r 5 Total interest expense 185 477 141 Net Interest Margin 5.55% 5.88% 6.00% Net interest income 405 397 357 Yield- Total interest-earn
Slide 5: Private Student Loan Originations
Private Student Loan Originations? $6,000 5 $5,500 + $5,000 $4,500 + = 94,000 + = & $3,500 ro ‘ $3,000 g B 92,500 | © s2,000 $1,500 $1,000 $500 + $o 2015 2016 @ Actuals Originations Statistics Originations($MM) % Cosigned % In School Payment Average FICO at Approval’? YoY Origination Growth Rate 201
Slide 6: Credit Performance
Credit Performance" 2.13 Private Education Loans ($ Thousands) Loans in repayment and percentage of each status: Loans current Loans delinquent 31-60 days Loans delinquent 61-90 days Loans delinquent greater than 90 days Total private education loans in repayment Loans delinquent 30+ days (as a % of
Slide 7: 2019 Guidance
• Full-year Diluted Core EPS1: $1.23- $1.24 • 2019 Private Education Loan Originations: $5.7 billion • Full-year Non-GAAP Operating Efficiency Ratio4: 35% - 36% 7
Slide 8: Notes and Definitions
1. Derivative Accounting: we provide “Core Earnings” because it is one of several measures management uses to evaluate management performance and allocate corporate resources. “Core Earnings” exclude periodic unrealized gains and losses caused by the mark-to-fair value valuations on derivatives that
Slide 9: "Core Earnings" to GAAP Reconciliation
“Core Earnings” to GAAP Reconciliation Quarters Ended Sept 30, June 30, Sept 30, 2019 2019 2018 (Dollars in thousands, except per share amounts) “Core Earnings” adjustments to GAAP: GAAP Tet INCOME ne $128,458 $ 150.277 $103,878 Preferred stock dividends ................::ceeeeeeeteteees 4,153 4,331
Slide 10: "Adjusted Core Earnings" to GAAP Reconciliation
“Adjusted Core Earnings” to GAAP Reconciliation Quarters Ended Sept 30, June 30, Sept 30, 2019 2019 2018 (Dollars in thousands, except per share amounts) GAAP net income.............0..2.2.seecececeeeeeteteee teens $ 128,458 $ 150,277 $ 103,878 Preferred stock dividends .............0...eeeeee 4,153