Slide 1: Investor Presentation 1st Quarter 2025
Investor Presentation 1st Quarter 2025 Confidential and proprietary information. © 2025 Sallie Mae Bank. All rights reserved. 1
Slide 2: Cautionary Note and Disclaimer Regarding Forward-Looking Statements
CAUTIONARY NOTE AND DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS The following information is current as of April 24, 2025 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation announcing its financial results for the quarter ended March 31, 2025, fur
Slide 3: 1st Quarter 2025 Highlights
Balance Sheet & Capital Allocation $2.8B 7.3% 1stQuarter Private Education Loan Private Education Loan 2025 Highlights (1) Originations(1) in Q1 2025 Originations growth in Q1 as compared to $2.6B in 2025, compared to Q1 2024. the year-ago quarter. $0.13 60% (2) 12.9% Common stock dividend per share
Slide 4: Additional Key Performance Metrics
Loan Sales Funding & Liquidity Additional Key Performance Deposit portfolio balances $2.0B at the end of Q1 2025 were 4% 3% Metrics lower than at the end of Q1 Private Education Loans, 2024; Q1 2025 mix of brokered Uninsured deposits as a percentage including $1.84 billion of vs. retail and other wa
Slide 5: A Compelling Investment Opportunity
A Compelling Outstanding financial track record with strong Investment EPS performance and ROCE Opportunity Well-positioned in large and growing private student loan market, with powerful brand recognition and attractive client base Consistent profitability, balance sheet strength and strong risk an
Slide 6: Sallie Mae is an Outstanding Franchise
Sallie Mae is an 64% Outstanding Franchise 2024 full-year market share of private student lending marketplace(5) Sallie Mae is the market-leading brand for private education loans driven by brand recognition, rigorous underwriting methodology and industry-leading customer service. 56% In School Paym
Slide 7: Providing Customers with Financial Backing, Information and Tools to Achieve Their Goals
SLM Portfolio Providing Customers with Financial Backing, Information and Tools to Achieve Their Goals PRIVATE Smart Option SALLIE Offers traditional savings EDUCATION Student Loans MAE products LOANS Emphasize in-school BANK • High-yield savings accounts payment features that can • Money market acc
Slide 8: Private Education Loan Portfolio
Smart Option Originations Vintage Smart Option Payment Type (9) Private 4% 4% 2025 Pre 2015 3% 18% Education 2015 3% Interest Only 2016 47% Loan 4% Deferred 2017 4% Portfolio $19.7B 30% 2018 2024 $19.7B 4% Loans Loans 2019 5% 2020 35% Fixed Pay 19% 8% 2021 2023 12% 2022 High Quality Private Educatio
Slide 9: Sallie Mae's Smart Option Loan
Sallie Mae’s Smart Option Loan The Smart Option Loan product, introduced in 2009, consists of: Interest Only loans Fixed Pay loans Deferred loans • Smart Option payment option may Require full interest Require $25 fixed Do not require payments not be changed after selected at payments during in-scho
Slide 10: More Personalized, Flexible Financing Options that Set Students Up for Success
More Personalized, Flexible Financing Options that Set Students Up for Success Medical General Studies Sallie Mae Federal Student Loan Program Federal Direct Loan Loan Program Smart Option Student Loan Parent Plus (Subsidized & Unsubsidized) Dental Yr. 1 - $5,500 ($3,500 > subsidized) Undergraduate
Slide 11: Our Proven Strategy Aims to Maximize the Profitability and Growth of the Core Business
Our Proven Strategy Aims to Maximize the Profitability and Growth of the Core Business STRATEGIES TO MAXIMIZE REVENUE STRATEGIES TO MANAGE UNIT COSTS Drive penetration at all schools Maintain strong focus on fixed cost discipline Increase market share by bridging gaps in Drive towards reducing both
Slide 12: Optimize the Value of the Brand and Attractive Client Base
Optimize the Value of the Brand and Attractive Client Base WHAT Ensure products and services are Build products and services that Prioritize partnerships Look for opportunities WE DO consistent with our core mission leverage our customer affiliation and other capital efficient to optimize ROI and dr
Slide 13: Aiming to Enhance Shareholder Value Through Disciplined Balance Sheet Growth and Strategic Capital Return
Aiming to Enhance Shareholder Value Through Disciplined Balance Sheet Growth and Strategic Capital Return Strong Balance Expected to drive recurring Expected to support a consistent Sheet & Recurring revenue and lead to steady dividend with the potential for Earnings Growth double-digit earnings per
Slide 14: Consumers Increasingly Rely on Borrowed Funds to Finance the Cost of a Higher Education
Roughly Half of Consumers Increasingly Rely Families USED BORROWED FUNDS on Borrowed Funds to Finance IN AY 2023-24 the Cost of a Higher Education Families’ out-of-pocket contributions covered half of college costs of costs covered by families’ 48% out-of-pocket contributions of costs covered by sch
Slide 15: Diversified Funding Optimizes Net Interest Margin
Diversified Funding Optimizes Net Interest Margin Long-Term Funding • Outstanding borrowings consist of unsecured debt and secured borrowings issued through our term asset-backed securitization program, totaling approximately $1 billion and $5.2 billion, Funding Strategy respectively, as of March 31
Slide 16: Private Education Loan Trends
Private In School Cosigned Private Education Loan Originations(1) Average FICO at Approval(8) Payment Education Loan Trends * Full Year 2025* 2025 $2,771 First quarter 2025 originations at Q1 approximately $2.77 billion, 7% higher than the year-ago quarter. 2024 $2,582 $7,013 752 56% 90% Cosigned ra
Slide 17: Improving Political Environment
A Focus on Federal Lending Improving Political Environment National policymakers are focused on addressing federal student lending issues and reform, including: We believe the current environment • Federal loan forgiveness presents opportunity for meaningful • Federal PLUS limits reform to the feder
Slide 18: ABS Supplement
ABS | Suppleme eo h re | 24 aS N Mayen * pfols ry &
Slide 19: Sallie Mae Bank ABS Summary – Last 12 Quarters (On-Balance Sheet)
Sallie Mae Bank ABS Summary – Last 12 Quarters (On-Balance Sheet)* 22-C 23-A 23-C 24-C 24-E 24-F Issuance Date 8/9/2022 3/15/2023 8/16/2023 5/15/2024 8/14/2024 11/6/2024 Total Bond Amount ($mil) $575 $579 $568 $668 $868 $680 Initial AAA Enhancement (%) 22% 18% 19% 16% 15% 14% Initial Class B Enhance
Slide 20: Sallie Mae Bank ABS Structures
Sallie Mae Bank ABS Structures 20
Slide 21: Appendix
Appendix 21
Slide 22: Quarterly Financial Highlights
Quarterly Financial Highlights Q1 Q4 Q1 Q1 Q4 Q1 2025 2024 2024 2025 2024 2024 Income Statement ($ Millions) Key Performance Metrics ($ in millions) Total interest income 656 661 $664 Net Interest Margin 5.27% 4.92% 5.49% Total interest expense 281 299 277 Net Interest Income 375 362 387 Yield—Total
Slide 23: Credit Performance
Credit Performance (16)(17)(18) Private Education Loans Held for Investment Quarters Ended MAR 31, 2025 DEC 31, 2024 MAR 31, 2024 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current $ 15,333,672 96.4% $ 15,513,333 96.3% $ 14,451,606 96.6% Loans
Slide 24: Allowance for Credit Losses
Allowance for Credit Losses Consolidated Statements of Income – Provision for Credit Losses Reconciliation Factors affecting the Provision for Credit Losses 1st Quarter 2025 Quarter Ended ($ THOUSANDS) March 31, 2025 • Provision for credit losses was Private Education Loan provision for credit losse
Slide 25: Footnotes
Footnotes 1. Originations represent loans that were funded or acquired during the period presented. 2. We calculate and report our Return on Common Equity (“ROCE”) as the ratio of (a) GAAP net income (loss) attributable to SLM Corporation common stock numerator (annualized) to (b) the net denominato