Slide 1: SLM Corporation Earnings Presentation Second Quarter 2017
SLM CORPORATION EARNINGS PRESENTATION SECOND QUARTER 2017 July 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 July 19, 2017 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial res
Slide 3: Sallie Mae Overview
| 3 Sallie Mae Overview Sallie Mae Key Statistics for Q2 2017 − $0.16 “Core Earnings” Diluted Earnings Per Common Share 6,7 − Portfolio of $15.5 billion of high quality Private Education Loans − 77% of Private Education Loans disbursed in Q2 are cosigned, 78% in Q2 2016 − Average Q2 Private Educatio
Slide 4: Key Financial Metrics
| 4 Key Financial Metrics ($Millions) Q2 2017 Q1 2017 Q2 2016 Private Education Loans, Net $ 15,523 $ 15,516 $ 12,183 Net Interest Income $ 270 $ 268 $ 213 Net Interest Margin 5.91% 5.96% 5.84% Private Education Yield 8.33% 8.26% 7.98% Cost of Funds 1.77% 1.54% 1.34% Operating Expenses 1 $ 111 $ 103
Slide 5: High Quality Private Education Loan Growth
| 5 High Quality Private Education Loan Growth Disbursement Statistics Q2 2017 Q2 2016 Disbursements($MM) $431 $423 % Cosigned 77% 78% % In School Payment 52% 52% Average FICO at Approval 745 744 YoY Disbursement Growth Rate 2%
Slide 6: Private Education Loan Delinquencies
| 6 Private Education Loan Delinquencies4,5 • Net charge-offs as a percentage of average loans in repayment (annualized) were 1.08% for 2Q 2017, compared to 1.05% for 2Q 2016
Slide 7: Earnings Metrics
| 7 Earnings Metrics6,7,8 ($Millions, except per share amounts) Q2 2017 Q1 2017 Q2 2016 GAAP Net Income attributable to SLM Corp Common Stock $ 66.6 $ 89.4 $ 52.0 GAAP Diluted Earnings Per Common Share 0.15 0.20 0.12 "Core Earnings" Adjustments to GAAP 2.2 3.3 (0.9) "Core Earnings" attributable to S
Slide 8: 2017 Guidance Update
| 8 2017 Guidance Update • Full-year Diluted Core EPS: $0.71 - $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 June 30, Mar. 31, June 30, 2017 2017 2016 (Dollars in thousands, except per share am ounts) “Core Earnings” adjustments to GAAP: GAAP net income attributable to SLM Corporation..…. $ 70,617 $ 94,943 $ 57,205 Preferred stock dividends ………....