Slide 1: Sallie Mae Investor Presentation Fourth Quarter 2014
Exhibit 99.1 SALLIE MAE Investor Presentation FOURTH QUARTER 2014
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements The following information is current as of October 22, 2014 (unless otherwise noted) and should be read in connection with SLM Corporation’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2014 (the “2014 Form 10-Q”), and the aud
Slide 3: The Sallie Mae Brand
The Sallie Mae Brand #1 saving, planning and paying for education company with 40-years of leadership in the education lending market Top ranked brand: 6 out of 10 consumers of education finance recognize the Sallie Mae brand Industry leading market share in private education lending; 52% market sha
Slide 4: 2014 Year to Date Highlights
2014 Year to Date Highlights Completed legal separation from Navient on April 30, 2014 Generated “Core Earnings” through Q3 of $176 million High quality loan originations on track to reach $4 billion in 2014 Loan performance continues to be in line with expectations as the portfolio seasons Complete
Slide 5: Sallie Mae Summary
Sallie Mae Summary Strategic Focus Consumer banking including leading private education loan franchise Largest Private Education Loan Originator Key Businesses Private Education Loan Servicing Deposits Upromise Rewards Insurance Services Credit Card Assets $11.7 Key Financial FFELP Loans $1.3 Statis
Slide 6: Sallie Mae Investment Highlights
Sallie Mae Investment Highlights Experienced management team Average of 30+years of banking and financial services 1 with deep industry knowledge experience Leading brand in the education 40+ years serving the education lending market 2 lending market 52% private education lending market share Multi
Slide 7: Favorable Student Loan Market Trends
Favorable Student Loan Market Trends 1 2 Enrollment at Four-Year Degree Granting Institutions Annual Cost of Education (millions) (thousands) Public Private $39 $41 $36 $38 13.5 13.5 13.7 $34 $35 13.3 $30 $32 12.9 $29 12.1 $18 $18 $15 $16 $17 $12 $13 $14 $14 2008 2009 2010 2011 2012 2013 2005 2006 2
Slide 8: Higher Education Value Proposition
Higher Education Value Proposition Relationship Between Higher Education, Widening Earnings Gap of Young Adults Most Graduates Say Income and Employment 5 by Educational Attainment6 College Has Paid Off6 100,000 14% Has Not / Will Not $ 17,500 Pay Off 90,000 Average annual income $ 15,780 12% 6% 80,
Slide 9: Smart Option Overview
Smart Option Overview Product Features – Offers three repayment options while in school which includes Interest Only, $25 Fixed Payment and Deferred Repayment – Variable and Fixed Interest Rate Options – All loans are certified by the school’s financial aid office to ensure all proceeds are for educ
Slide 10: High Quality Private Student Loan Originations Growth
High Quality Private Student Loan Originations Growth 10
Slide 11: Analytical Approach to Credit
Analytical Approach to Credit Student Initial Screen Manual Review $1,000 minimum loan ~ 8% of applications Minimum FICO of 640 Asset expertise and rigorous Pass risk scores, but require further underwriting driven by large review due to credit concerns No existing SLM 30+ day past dues volume of hi
Slide 12: High Quality Private Education Portfolio
High Quality Private Education Portfolio Portfolio by Product Smart Option Payment Type Portfolio by Vintage Customer FICO at Origination 2011 11% 2012 21% 12 As of September 30, 2014
Slide 13: Smart Option Credit Outperforming
Smart Option Credit Outperforming Smart Option products outperform prior private education loan products due to more stringent underwriting standards and tailored product options Performance of newer vintage loans driven by focused marketing on high quality borrowers, better data and product managem
Slide 14: Conservative Funding Approach
Conservative Funding Approach Low cost deposit base with no branch overhead 3Q 2014 Target — 90% of retail deposits are savings accounts — Brokered deposits used as alternative funding source Retail deposits Term funding / securitizations will augment deposit Brokered deposits funding for future gro
Slide 15: Third Quarter Financial Review
Third Quarter Financial Review Q3 2014 Q3 2013 Variance PSL $ 7,839 $ 6,216 $ 1,624 PSL Reserve (60) (54) (6) FFELP 1,322 1,220 102 FFELP Reserve / Other (6) (5) (0) Total Loans 9,095 7,376 1,719 Cash 1,570 1,148 423 Other Assets 1,050 1,120 (70) • Private Education Loan balance Total Assets 11,715
Slide 16: 2014 Guidance
2014 Guidance Target 2014 Originations $4 Billion Operating Expenses $280 Million Additional Restructuring Expense $32 Million Loan Sales in Q4 of 2014 $0 Provision for Loan Losses In Q4 of 2014 $35 Million “Core Earnings” diluted EPS $0.42-$0.43 16
Slide 17: Sallie Mae Bank
Sallie Mae Bank Market share leader in private student loan industry High quality assets and conservatively funded balance sheet Predictable balance sheet growth for the next several years Strong capital position and funding capabilities A financial services company with high growth trajectory and e
Slide 18: Appendix
APPENDIX 18 Confidential and proprietary information © 2012 Sallie Mae, Inc. All rights reserved.
Slide 19: “Core Earnings” to GAAP Reconciliation
“Core Earnings” to GAAP Reconciliation Three Months Ended Nine Months Ended September 30, September 30, 2014 2013 2014 2013 (Dollars in thousands) Hedge ineffectiveness gains (losses) $ 6,571 $ (49) $ (1,684) $ (118) Interest reclassification (1,170) 346 (3,137) 973 Gains (losses) on derivatives and
Slide 20: Footnotes
Footnotes 1 Source: U.S. Department of Education, National Center for Education Statistics, Projections of Education Statistics to 2022 2 Source: Trends in College Pricing.© 2013 The College Board,. www.collegeboard.org, Note: Academic years, average published tuition, fees, room and board charges a