Slide 1: SLM Corporation Earnings Presentation Second Quarter 2020
SLM Corporation Earnings Presentation Second Quarter 2020 July 23, 2020
Slide 2: Forward-Looking Statements and Disclaimer
Forward-Looking Statements and Disclaimer Cautionary Note Regarding Forward-Looking Statements The following information is current as of July 22, 2020 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial results
Slide 3: COVID-19 Effects on our Business
COVID-19 Effects on our Business14 Return to School • 78% of our top schools have announced plans for the 2020/2021 Academic Year16 • 40% on campus, 4% remote, and 56% hybrid programs to be utilized16 Originations • Full-year impact of COVID-19 expected to reduce 2020 originations by $700 million -
Slide 4: Quarterly Financial Highlights
Quarterly Financial Highlights3 2Q 1Q 2Q 2Q 1Q 2Q 2020 2020 2019 2020 2020 2019 Income Statement ($ Millions) Key Performance Metrics Total interest income $485 $575 $574 Net Interest Margin 4.55% 5.08% 5.88% Total interest expense 136 175 177 Net Interest Income 349 400 397 Yield—Total Interest-ear
Slide 5: Private Education Loan Originations
Private Education Loan Originations9 5
Slide 6: Credit Performance
Credit Performance11,12,13 6
Slide 7: Footnotes
Footnotes 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 deriva
Slide 8: “Core Earnings” to GAAP Reconciliation
“Core Earnings” to GAAP Reconciliation Quarters Ended June 30, 2020 March 31, 2020 June 30, 2019 Dollars in thousands, except per share amounts “Core Earnings” adjustments to GAAP: GAAP net income (loss) ($85,211) $362,173 $150,277 Preferred stock dividends $2,478 $3,464 $4,331 GAAP net income (loss