Slm Corporation · NASDAQ:SLM
Slm — Q4 2019 Earnings Presentation
11 slides from Slm's earnings presentation, Jan 23, 2020
Slide 1: Earnings Presentation Fourth Quarter 2019
| | : SLM Corporation Salll€ ___ Earnings Presentation MaeE™ Fourth Quarter 2019 Januar y 23, 2020
Slide 2: Cautionary Note Regarding Forward-Looking Statements
Cautionary Note Regarding Forward-Looking Statements The following information is current as of January 22, 2020 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial results for the quarter and full-year ended De
Slide 3: Earnings, Assets and Capital highlights
Earnings • 2019 GAAP diluted earnings per common share increased 21% over 2018 • Net interest income was $1.6B, a 15% increase compared to 2018 Assets • Originated $5.6 billion in Private Education Loans in 2019 (+6% vs. 2018) • Private Education Loan Portfolio of $22.9 billion (+13% vs. 2018) • Ave
Slide 4: Quarterly Financial Highlights
Quarterly Financial Highlights? 4Q 2019 3Q 2019 4Q 2018 4Q 2019 3Q 2019 4Q 2018 Income Statement sm Key Performance Metrics Total interest income $600 $590 $538 [Total interest expense 181 185 155 Net Interest Margin 541% 5.55% 6.11% Net interest income 419 405 383 ‘Yield- Total interest-earning ass
Slide 5: Annual Financial Highlights
Annual Financial Highlights? 2019 2018 2019 2018 Income Statement (§ m! Key Performance Metrics Total interest income $2,331 $1,935 7 Total interest expense 708 522 Net Interest Margin 5.76% 6.10% Net interest income 1,623 1,413 Yield- Total interest-earning assets 8.27% 8.36% ees: provision or cred
Slide 6: Private Student Loan Originations
Private Student Loan Originations? $6,000 4 $5,500 + $5,625 6% 2015 2016 2017 @ Actuals Originations Statistics Q4 2019 Origination Growth Rate -2% Q4 2018 Originations($MM) $717 $733 % Cosigned 83% 85% % In School Payment 60% 59% Average FICO at Approval’? 745 746 2018 2019 2019 2018 $5,625 $5,315
Slide 7: Credit Performance
Credit Performance" 2.13 Private Education Loans ($ Thousands) Loans in repayment and percentage of each status: Loans current Loans delinquent 31-60 days Loans delinquent 61-90 days Loans delinquent greater than 90 days Total private education loans in repayment Loans delinquent 30+ days (as a % of
Slide 8: 2020 Full-Year Guidance
Metrics 2020 Full-Year Guidance Diluted “Core Earnings15” per share $1.85 - $1.91 Provisions for credit losses $285 million - $305 million Total portfolio net charge-offs $275 million - $285 million Private Education Loan originations growth 6% Non-interest expenses $570 million - $580 million Loan
Slide 9: Three-Year Outlook: Originations, Loan Sales, Balance Sheet
Originations • ~6% growth per year Loan Sales • ~$3B per year contingent on market conditions Balance Sheet • Remains at ~$32B due to loan sales Earnings Per • Significant increase in 2020 driven by loan sales and share Share repurchases, followed by mid single digit EPS growth thereafter • Continue
Slide 10: Core Earnings and Non-GAAP Definitions
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 derivatives that
Slide 11: Core Earnings to GAAP Reconciliation
“Core Earnings” to GAAP Reconciliation (Dollars in thousands, except per share amounts) “Core Earnings” adjustments to GAAP: GAAP net Income... 0. ..e ee cece ete e terete Adjustments: Net impact of derivative accounting Net tax expense (benefit)? _ Total “Core Earnings” adjustments to GAAP ........