Slide 1: SLM Corporation Earnings Presentation First Quarter 2018
SLM CORPORATION EARNINGS PRESENTATION FIRST QUARTER 2018 April 24, 2018
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 23, 2018 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial resu
Slide 3: Sallie Mae Overview
3 Sallie Mae Overview Sallie Mae Key Statistics for Q1 2018 − $0.27 Core Earnings diluted earnings per common share 7,8 − Portfolio of $18.6 billion of high quality Private Education Loans − 89% of Private Education Loans disbursed in Q1 2018 are cosigned − Average Q1 2018 Private Education Loan ori
Slide 4: Key Financial Metrics
4 Key Financial Metrics ($Millions) Q1 2018 Q4 2017 Q1 2017 Private Education Loans, Net $ 18,601 $ 17,245 $ 15,516 Net Interest Income $ 333 $ 309 $ 268 Net Interest Margin 6.17% 6.00% 5.96% Private Education Yield 8.84% 8.61% 8.26% Cost of Funds 2.14% 1.93% 1.54% Operating Expenses 2 $ 125 $ 119 $
Slide 5: High Quality Private Education Loan Growth
5 High Quality Private Education Loan Growth 4% $5,000 $5,000 $4,819 $4,666 3% 8% $4,500 $4,330 6% $4,076 $4,000 $3,500 Disbursements ($MM) $3,000 $2,500 $2,000 $1,847 7% $1,972 $1,500 $1,000 $500 $0 2014 2015 2016 2017 2018 Private Education Loan Disbursements Disbursement Statistics Q1 2018 Q1 201
Slide 6: Private Education Loan Delinquencies
6 Private Education Loan Delinquencies4,5,6 March 31, 2018 December 31, 2017 March 31, 2017 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current 12,635,627 97.5% 11,911,128 97.6% 10,327,843 98.1% Loans delinquent 31-60 days 179,989 1.4% 179,002
Slide 7: Earnings Metrics
7 Earnings Metrics7,8,9 ($Millions, except per share amounts) Q1 2018 Q4 2017 Q1 2017 GAAP Net Income attributable to SLM Corp Common Stock $ 122.9 $ 43.9 $ 89.4 GAAP Diluted Earnings Per Common Share 0.28 0.10 0.20 Core Earnings Adjustments to GAAP (2.9) 0.4 3.3 Core Earnings attributable to SLM Co
Slide 8: 2018 Guidance Update
8 2018 Guidance Update • Full-year Diluted Core EPS: $0.99-$1.01 • Full-year Private Education Loan Originations: $5.0 billion • Full-year Non-GAAP Operating Efficiency Ratio: 37% - 38%
Slide 9: Footnotes
9 Footnotes 1. Represents the higher credit score of the cosigner or the borrower. 2. Includes acquired intangible asset amortization expense. 3. We calculate and report our non-GAAP operating efficiency ratio as the ratio of (a) the total non-interest expense numerator to (b) the net revenue denomi
Slide 10: “Core Earnings” to GAAP Reconciliation
10 “Core Earnings” to GAAP Reconciliation Quarters Ended Mar. 31, Dec. 31, Mar. 31, 2018 2017 2017 (Dollars in thousands, except per share am ounts) “Core Earnings” adjustments to GAAP: GAAP net income……….….…….........………………… $ 126,254 $ 47,003 $ 94,943 Preferred stock dividends ………....….........………