Slide 1: SLM Corporation Earnings Presentation First Quarter 2017
SLM CORPORATION EARNINGS PRESENTATION FIRST QUARTER 2017 April 20, 2017
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 April 19, 2017 (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 Q1 2017 − $0.21 “Core Earnings” Diluted Earnings Per Common Share 6,7 − Portfolio of $15.5 billion of high quality Private Education Loans − 90% of Private Education Loans disbursed in Q1 are cosigned − Average Q1 Private Education Loan originati
Slide 4: Key Financial Metrics
| 4 Key Financial Metrics ($Millions) Q1 2017 Q4 2016 Q1 2016 Private Education Loans, Net $ 15,516 $ 14,113 $ 12,021 Net Interest Income $ 268 $ 245 $ 210 Net Interest Margin 5.96% 5.55% 5.77% Private Education Yield 8.26% 8.08% 8.03% Cost of Funds 1.54% 1.40% 1.26% Operating Expenses 1 $ 103 $ 98
Slide 5: High Quality Growth: Disbursements
| 5 High Quality Private Education Loan Growth $5,000 5% $4,900 $4,666 8% $4,500 $4,330 6% $4,076 $4,000 7% $3,795 Disbursements ($MM) $3,500 $3,000 $2,500 $2,000 $1,804 2% $1,847 $1,500 $1,000 $500 $0 2013 2014 2015 2016 2017 Private Education Loan Disbursements Disbursement Statistics Q1 2017 Q1 2
Slide 6: Private Education Loan Delinquencies
| 6 Private Education Loan Delinquencies4,5 March 31, 2017 December 31, 2016 March 31, 2016 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current 10,327,843 98.1% 9,509,394 97.9% 7,678,446 97.9% Loans delinquent 31-60 days 112,167 1.1% 124,773 1.
Slide 7: Earnings Metrics
| 7 Earnings Metrics6,7,8 ($Millions, except per share amounts) Q1 2017 Q4 2016 Q1 2016 GAAP Net Income, attributable to SLM Corp Common Stock $ 89.4 $ 64.7 $ 60.8 GAAP Diluted Earnings Per Common Share 0.20 0.15 0.14 "Core Earnings" Adjustments to GAAP 3.3 2.7 0.6 "Core Earnings", attributable to S
Slide 8: 2017 Guidance Update
| 8 2017 Guidance Update • Full-year Diluted Core EPS: $0.70 - $0.72 • Full-year Private Education Loan Originations: $4.9 billion • Full-year Non-GAAP Operating Efficiency Ratio: 38% - 39%
Slide 9: Footnotes
| 9 Footnotes 1 Includes acquired intangible asset amortization expense. 2 In 2016, our non-GAAP operating efficiency ratio was calculated for the periods presented as the ratio of (a) the total non-interest expense numerator to (b) the net revenue denominator (which consisted of net interest income
Slide 10: "Core Earnings" to GAAP Reconciliation
| 10 “Core Earnings” to GAAP Reconciliation Quarters Ended Mar. 31, Dec. 31, Mar. 31, 2017 2016 2016 (Dollars in thousands, except per share amounts) “Core Earnings” adjustments to GAAP: GAAP net income attributable to SLM Corporation……….………….…….........………………… $ 94,943 $ 70,242 $ 65,915 Preferred s