Slide 1: SLM Corporation Earnings Presentation Third Quarter 2018
SLM CORPORATION EARNINGS PRESENTATION THIRD QUARTER 2018 October 23, 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 October 22, 2018 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial re
Slide 3: Sallie Mae Overview
3 Sallie Mae Overview Sallie Mae Key Statistics for Q3 2018 − $0.23 Core Earnings diluted earnings per common share 8,9 − Portfolio of $20.0 billion of high quality Private Education Loans − 89% of Private Education Loans disbursed in Q3 2018 are cosigned − Average Q3 2018 Private Education Loan ori
Slide 4: Key Financial Metrics
4 Key Financial Metrics ($Millions) Q3 2018 Q2 2018 Q3 2017 Private Education Loans, Net $ 20,031 $ 18,488 $ 16,959 Net Interest Income $ 357 $ 341 $ 282 Net Interest Margin 6.00% 6.14% 5.85% Private Education Yield 9.16% 9.03% 8.50% Cost of Funds 2.59% 2.40% 1.93% Operating Expenses 2 $ 151 $ 135 $
Slide 5: High Quality Private Education Loan Growth
5 High Quality Private Education Loan Growth4 $5,500 $5,200 8% $5,000 $4,800 3% $4,666 $4,582 8% $4,500 $4,330 10% $4,076 6% $4,166 $4,000 Originations ($MM) $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 2014 2015 2016 2017 2018 Private Education Loan Originations Originations Statistics Q3 2018
Slide 6: Private Education Loan Delinquencies
6 Private Education Loan Delinquencies5,6,7 September 30, 2018 June 30, 2018 September 30, 2017 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current 13,492,029 97.7% 12,697,362 97.8% 11,115,697 97.4% Loans delinquent 31-60 days 198,987 1.4% 166,
Slide 7: Earnings Metrics
7 Earnings Metrics8,9 ($ Millions, except per share amounts) Q3 2018 Q2 2018 Q3 2017 GAAP Net Income attributable to SLM Corp Common Stock $ 99.8 $ 105.9 $ 73.3 GAAP Diluted Earnings Per Common Share 0.23 0.24 0.17 Core Earnings Adjustments to GAAP 3.5 3.8 (0.9) Core Earnings attributable to SLM Cor
Slide 8: 2018 Guidance Update
8 2018 Guidance Update • Full-year Diluted Core EPS: $1.02 - $1.03 • Full-year Private Education Loan Originations: $5.2 billion • Full-year Non-GAAP Operating Efficiency Ratio11: 38% - 39%
Slide 9: Footnotes
9 Footnotes 1. Represents the higher credit score of the cosigner or the borrower. 2. Includes acquired intangible asset amortization expense. 3. We calculate and report our non-GAAP operating efficiency ratio as the ratio of (a) the total non-interest expense numerator to (b) the net revenue denomi
Slide 10: “Core Earnings” to GAAP Reconciliation
10 “Core Earnings” to GAAP Reconciliation Quarters Ended Sept. 30, June 30, Sept. 30, 2018 2018 2017 (Dollars in thousands, except per share amounts) “Core Earnings” adjustments to GAAP: GAAP net income……….….…….........………………… $ 103,878 $ 109,832 $ 76,371 Preferred stock dividends ………....….........…