Slm Corporation · NASDAQ:SLM
Slm — Q1 2023 Earnings Presentation
12 slides from Slm's earnings presentation, Apr 27, 2023
Slide 1: SLM Corporation Earnings Presentation First Quarter 2023
SLM Corporation Earnings Presentation First Quarter 2023 April 27, 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 April 26, 2023 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial result
Slide 3: Balance Sheet & Capital Allocation
Balance Sheet & Capital Allocation 1st Quarter 2023 • Paid common stock dividend of $0.11 per share in Q1 2023. Highlights • Sallie Mae Bank remains well capitalized with 13.3% Total risk-based capital ratio and CET1 capital ratio of 12.0%. • We have agreed to pricing terms for the sale of approxima
Slide 4: Private Education Loan Originations – Strong Start to 2023
Private Education Loan Originations8 – Strong Start to 2023 • First quarter 2023 originations at $2.4 $5,975 $6,000 $5,625 10 % billion, 12% higher than (5%) $5,321 $5,423 2% the year-ago period. $5,000 • Q1 2023 originations marked our highest level Fo re c a s t of originations in the $4,000 compa
Slide 5: Credit Performance, Funding & Liquidity
Key Credit Credit Performance Metrics • Q1 2023 net charge-offs for Private Education Loans totaled $83 million. for Q1 2023 • Q1 2023 Private Education Loans delinquent 30+ days were 3.40% of loans in repayment, an improvement from both Q4 2022 as well as the year-ago quarter. • For Q1 2023, we saw
Slide 6: Quarterly Financial Highlights
Quarterly Financial Highlights3 Q1 Q4 Q1 Q1 Q4 Q1 2023 2022 2022 2023 2022 2022 Income Statement ($ Millions) Key Performance Metrics Total interest income $638 $584 $465 Net Interest Margin 5.70% 5.37% 5.29% Total interest expense 233 202 90 Yield—Total Interest-earning assets 8.97% 8.21% 6.56% Net
Slide 7: Credit Performance
Credit Performance10, 11, 12, 14 Private Education Loans Held for Investment Quarters Ended March 31, 2023 December 31, 2022 March 31, 2022 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current $ 15,446,182 96.6% $ 14,559,347 96.2% $ 15,530,080 9
Slide 8: Allowance for Credit Losses Q1 2023
Allowance for Credit Losses Q1 2023 Consolidated Statements of Income Factors affecting the Provision for Credit Losses Provisions for Credit Losses Reconciliation 1st Quarter of 2023 Quarter Ended ($ Thousands) March 31, 2023 Private Education Loan provisions for credit losses: • Increase to provis
Slide 9: 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 - $620 million Total Loan Portfolio Non-Interest Net Charge-Offs Expenses 9
Slide 10: Footnotes
Footnotes 1. Derivative Accounting: we provide non-GAAP “Core Earnings” because it is one of several measures management uses to evaluate management performance and allocate corporate resources. Non-GAAP “Core Earnings” exclude periodic unrealized gains and losses caused by the mark-to-fair value va
Slide 11: Footnotes (continued)
Footnotes (continued) 14. Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include interest
Slide 12: Non-GAAP "Core Earnings" to GAAP Reconciliation
Non-GAAP “Core Earnings” to GAAP Reconciliation Quarters Ended ($ Thousands except per share amounts) Mar. 31, 2023 Dec. 31, 2022 Mar. 31, 2022 Non-GAAP “Core Earnings” adjustments to GAAP: GAAP net income (loss) $118,518 ($77,043) $128,812 Preferred stock dividends $4,063 $3,466 $1,275 GAAP net inc