Slide 1: SLM Corporation Earnings Presentation First Quarter 2022
SLM Corporation Earnings Presentation First Quarter 2022 sallie mae’ April 28, 2022
Slide 2: Forward-Looking Statements and Disclaimer
Forward-Looking Statements and Disclaimer Ir sallie mae Cautionary Note Regarding Forward-Looking Statements } | The following information is current as of April 27, 2022 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing it
Slide 3: Strengthening Economy, Strong Strategic Execution, Loan Sale Strategy
ily sallie mae Strengthening Economy II - Average unemployment rate for the over 25-year-old college graduate population improved to 2.2% in Q1 2022 from 3.8% in Q1 2021.5 + In an internal survey of our top 100 school relationships on early enrollment trends for AY 2022-2023, 83% expect their enroll
Slide 4: Originations Statistics
Originations Statistics ($) 2018 2019 2020 2021 Q1 2022 Q1 2021 % Cosigned 87% 87% 86% 86% 88% 89% % In School Payment 57% 58% 60% 59% 57% 59% Average FICO at Approval10 746 746 749 750 748 751
Slide 5: Pursued a Simple Yet Powerful Strategy
Over the Last 18 Months, Sallie Mae Has Pursued a Simple Yet Powerful Strategy Strategic Imperatives: 1. [ant Maximize the profitability and growth of our core business 3. (J Better inform the external narrative about private student lending and Sallie Mae Develop & nurture a mission-led culture
Slide 6: Revenue, Total Operating Expenses, Earnings/Capital
Revenue • • Total Operating Expenses • Earnings/Capital • • • •
Slide 7: Quarterly Financial Highlights
Quarterly Financial Highlights? cdl, EE bso | or | 20 Income Statement ($ Millions) Key Performance Metrics Total interest income $465 $458 $436 Net Interest Margin 5.29% 5.13% 440% Total interest expense 90 91 105 Yield—Total I 4 i 56% 40% 80% Net Interest Income 375 367 331 ield—Total Interest-ear
Slide 8: Credit Performance
Credit Performance": '2. 13, 16 calle, Private Education Loans Held for Investment Quarters Ended March 31, 2022 December 31, 2021 March 31, 2021 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current $15,530,080 96.5% $ 15,005,773 96.7% $ 14,471,
Slide 9: Allowance for Credit Losses Q1 2022
Allowance for Credit Losses Q1 2022 salig, Consolidated Statements of Income Provisions for Credit Losses Reconciliation ‘$ Thousands: Private Education Loan provisions for credit losses: Provisions for credit losses. .......... 0.60.00. e eee eee Total Private Education Loan provisions for credit l
Slide 10: Guidance
Guidance“ salle mae For the full-year 2022, the Company expects: $2.80- $3.00 8%-10% Diluted Non-GAAP “Core Earnings” Private Education Loan Per Common Share Originations Year-Over-Year Growth $270 million - $555 million - $290 million $565 million Total Loan Portfolio Non-Interest Net Charge-Offs E
Slide 11: Footnotes
Footnotes rll, 13. 14. Derivative Accounting: we provide non-GAAP “Core Earnings” because it is one of several measures management uses to evaluate management performance and allocate corporate resources. Non-GAAP “Core Earnings” exclude periodic unrealized gains and losses caused by the mark-to-fai
Slide 12: Footnotes (continued)
Footnotes (continued) cli, 15. 16. 17. Quarterly average: Source based on U.S. Bureau of Labor Statistics (BLS): Current Population Survey (CPS) as of April 1, 2022. A-5. Employment status of the civilian noninstitutional population 25 years and over by educational attainment, seasonally adjusted. F
Slide 13: Non-GAAP Core Earnings to GAAP Reconciliation
Non-GAAP “Core Earnings” to GAAP Reconciliation ‘$ in thousands, except per share amounts) Mar. 31, 2022 Non-GAAP “Core Earnings” adjustments to GAAP: GAAP net income $128,812 $306,265 $641,207 Preferred stock dividends $1,275 $1,177 $1,201 GAAP net income attributable to SLM Corporation common stoc