Slide 1: SLM Corporation Earnings Presentation, Fourth Quarter 2023
SLM Corporation Earnings Presentation Fourth Quarter 2023 January 24, 2024
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 January 24, 2024 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial resu
Slide 3: 4th Quarter and Full-Year 2023 Highlights
4th Quarter and Full-Year 2023 Highlights Balance Sheet & Capital Allocation Income Statement & Earnings Summary • Completed the sale of approximately $1.1 billion of Private • GAAP Net Income attributable to common stock of $164 Education Loans to an unaffiliated third party in Q4 2023, million in
Slide 4: Loan Sales, Credit Performance, Funding & Liquidity
Loan Sales Other Key Performance • Agreed to indicative terms for sale of approximately $2 billion of Private Education Loans to an unaffiliated party, to Metrics close in Q1 2024. Credit Performance • Q4 2023 net charge-offs for Private Education Loans totaled $93 million, down 20% from the year-ag
Slide 5: Private Education Loan Originations
Private Education Loan Originations8 • Fourth quarter 2023 originations at approximately $839 million, 2% higher than the year-ago period. • Finished 2023 with originations 7% higher than full-year 2022, at $6.4 billion. Ac tu a l • Application and origination volume for underclassmen for full- year
Slide 6: Quarterly Financial Highlights
Quarterly Financial Highlights3 Q4 Q3 Q4 Q4 Q3 Q4 2023 2023 2022 2023 2023 2022 Income Statement ($ Millions) Key Performance Metrics Total interest income $669 $652 $584 Net Interest Margin 5.37% 5.43% 5.37% Total interest expense 283 268 202 Yield—Total Interest-earning assets 9.30% 9.21% 8.21% Ne
Slide 7: Annual Financial Highlights
Annual Financial Highlights3 2023 2022 2023 2022 Income Statement ($ Millions) Key Performance Metrics Total interest income $2,592 $2,032 Net Interest Margin 5.50% 5.31% Total interest expense 1,030 543 Yield—Total Interest-earning assets 9.13% 7.24% Net Interest Income 1,562 1,489 Less: provisions
Slide 8: Credit Performance
Credit Performance10, 11, 12, 14 Private Education Loans Held for Investment Quarters Ended December 31, 2023 September 30, 2023 December 31, 2022 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current $ 14,809,271 96.1% $ 14,938,462 96.3% $ 14,55
Slide 9: Allowance for Credit Losses Q4 2023
Allowance for Credit Losses Q4 2023 Consolidated Statements of Income Factors affecting the Provision for Credit Losses Provisions for Credit Losses Reconciliation 4th Quarter of 2023 Quarter Ended ($ Thousands) December 31, 2023 Private Education Loan provisions for credit losses: • Decrease to pro
Slide 10: Guidance
Guidance13 For the full-year 2024, the Company expects: $2.60 - $2.70 7% - 8% Diluted Non-GAAP “Core Earnings”15 Private Education Loan Per Common Share Originations Year-Over-Year Growth $340 - $370 $635 - $655 million, or 2.2% - 2.4% A million Total Loan Portfolio Non-Interest Net Charge-Offs Expe
Slide 11: Footnotes
Footnotes 1. Derivative Accounting: we provide non-GAAP “Core Earnings” because it is one of several measures management uses to evaluate management performance and allocate corporate resources. Non-GAAP “Core Earnings” exclude periodic unrealized gains and losses caused by the mark-to-fair value va
Slide 12: Footnotes (continued)
Footnotes (continued) 14. Accrued interest to be capitalized on loans in repayment includes interest on loans that are in repayment but have not yet entered into full principal and interest repayment status after any applicable grace period (but, for purposes of the table, does not include interest
Slide 13: Non-GAAP Core Earnings to GAAP Reconciliation
Non-GAAP “Core Earnings” to GAAP Reconciliation Quarters Ended Years Ended ($ Thousands except per share amounts) Dec. 31, 2023 Sept. 30, 2023 Dec. 31, 2022 Dec. 31, 2023 Dec. 31, 2022 Non-GAAP “Core Earnings” adjustments to GAAP: GAAP net income (loss) $168,443 $29,365 ($77,043) $581,391 $469,014 P
Slide 14: Sallie Mae
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