Slide 1: Earnings Presentation Third Quarter 2021
Sa I 5 e: SLM Corporation Earnings Presentation Third Quarter 2021 October 21, 2021
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements The following information is current as of October 20, 2021 (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: Third quarter performance continues progress toward 2021 targets
Third quarter performance continues progress toward 2021 targets Strengthening Economy • The average unemployment rate for the over 25 year-old college graduate population improved to 2.8% in Q3 2021 from 3.3% in Q2 2021. 15 • 99% of colleges and universities are operating on a full residential or h
Slide 4: Clear Strategy to Ensure Appropriate Valuation
Clear Strategy to Ensure Appropriate Valuation Maximize the Optimize the value Better inform the Maintain a profitability and of our brand and external narrative rigorous and growth of our core our attractive about student predictable capital business client base lending and Sallie allocation and Ma
Slide 5: Maximize the Profitability and Growth of our Core Business
Maximize the Profitability and Growth of our Core Business Revenue • GAAP Net Income of $73 million in Q3 2021, compared to $171 million in Q3 2020. • Originated $2.1 billion in Private Education Loans in Q3 2021 (10% increase vs. Q3 2020). Total Operating Expenses • Total operating expenses of $141
Slide 6: Quarterly Financial Highlights
Quarterly Financial Highlights3 3Q 2Q 3Q 3Q 2Q 3Q 2021 2021 2020 2021 2021 2020 Key Performance Metrics Income Statement ($ Millions) Total interest income $448 $435 $482 Net Interest Margin 5.03% 4.70% 4.79% Total interest expense 90 96 118 Net Interest Income 358 339 365 Yield—Total Interest-earni
Slide 7: Originations ($MM)
Third Quarter Originations Annual Originations $2,500 $6,000 $5,625 (5%) +3% - 4% 6% $5,321 $5,500 $5,315 11% $5,000 3% $4,800 $4,666 (0.2%) $4,686 $4,694 $4,500 Originations ($MM) $2,088 $4,000 Originations ($MM) $3,500 10% $2,000 $3,000 $1,896 $2,500 $2,000 $1,500 $1,000 $500 $1,500 $0 Q3 2020 Q3
Slide 8: Private Education Loans Held for Investment
Private Education Loans Held for Investment Quarters Ended September 30, 2021 June 30, 2021 September 30, 2020 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current $ 15,115,541 97.6% $ 14,514,659 97.9% $ 15,375,006 97.0% Loans delinquent 30-59 d
Slide 9: Provisions for Credit Losses Reconciliation
Consolidated Statements of Income Provisions for Credit Losses Reconciliation (Dollars in thousands) Quarter Ended September 30, 2021 Private Education Loan provisions for credit losses: Provisions for credit losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ (6,995) Provisions fo
Slide 10: 2021 Full-Year Guidance
For the full-year 2021, the company expects the following: Metrics 2021 Full-Year Guidance Diluted “Core Earnings”21 per share $3.55-$3.60 Private Education Loan originations year- 3-4% over-year growth Total loan portfolio net charge-offs $195 million - $205 million Non-interest expenses $ 525 mill
Slide 11: Footnotes and Core Earnings 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 12: Footnotes and sources
15. Source based on U.S. Bureau of Labor Statistics (BLS): Current Population Survey (CPS) as of September 2021. 16. For some students, going back to school in the fall of 2020 was not an option because of the pandemic, or for other reasons. Therefore, some students took a “gap year” before returnin
Slide 13: “Core Earnings” to GAAP Reconciliation
“Core Earnings” to GAAP Reconciliation Quarters Ended Sep.30, 2021 Jun.30, 2021 Sep.30, 2020 Dollars in thousands, except per share amounts “Core Earnings” adjustments to GAAP: GAAP net income $72,840 $140,201 $171,028 Preferred stock dividends $1,166 $1,192 $2,058 GAAP net income attributable to SL