Slm Corporation · NASDAQ:SLM
Slm — Q3 2018 Earnings Presentation
21 slides from Slm's earnings presentation, Oct 30, 2018
Slide 1: Smart Option Student Loan Historical Performance Data
Exhibit 99.1 | 1 SALLIE MAE Smart Option Student Loan Historical Performance Data Period ended September 30, 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 September 30, 2018 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) dated October 22, 2018,
Slide 3: Important Information Regarding Historical Loan Performance Data
| 3 Important Information Regarding Historical Loan Performance Data On April 30, 2014 (the “Spin-Off Date”), the former SLM Corporation legally separated (the “Spin-Off”) into two distinct publicly-traded entities: an education loan management, servicing and asset recovery business called Navient C
Slide 4: Important Information Regarding Historical Loan Performance Data (cont.)
| 4 Important Information Regarding Historical Loan Performance Data (cont.) Types of Smart Option Student Loan Portfolio Data The portfolio data we used in this report comes from four separate sources of information: (1) Combined Smart Option Student Loan Portfolio Data for Legacy SLM, Navient and
Slide 5: Smart Option Serviced Portfolio: 31-60 Day Delinquencies
| 5 Smart Option Serviced Portfolio: 31-60 Day Delinquencies Smart Option Student Loans - Serviced Portfolio Smart Option Student Loans - Serviced Portfolio 31-60 Day Delinquencies as a % of Loans in P&I Repayment (1) (1) Data for Legacy SLM thru April 30, 2014 and Sallie Mae Bank since May 1, 2014
Slide 6: Smart Option Serviced Portfolio: 61-90 Day Delinquencies
| 6 Smart Option Serviced Portfolio: 61-90 Day Delinquencies Smart Option Student Loans - Serviced Portfolio Smart Option Student Loans - Serviced Portfolio 61-90 Day Delinquencies as a % of Loans in P&I Repayment (1) 61-90 Day Delinquencies as a % of Loans in P&I Repayment (1) Data for Legacy SLM t
Slide 7: Smart Option Serviced Portfolio: 91+ Day Delinquencies
| 7 Smart Option Serviced Portfolio: 91+ Day Delinquencies Smart Option Student Loans - Serviced Portfolio Smart Option Student Loans - Serviced Portfolio 91+ Day Delinquencies as a % of Loans in P&I Repayment (1) 91+ Day Delinquencies as a % of Loans in P&I Repayment (1) Data for Legacy SLM thru Ap
Slide 8: Smart Option Serviced Portfolio: Forbearance
| 8 Smart Option Serviced Portfolio: Forbearance Smart Option Student Loans - Serviced Portfolio Smart Option Student Loans - Serviced Portfolio Forbearance as a % of Loans in P&I Repayment and Forbearance (1) Forbearance as a % of Loans in P&I Repayment and Forbearance (1) Data for Legacy SLM thru
Slide 9: Smart Option Serviced Portfolio: Annualized Gross Defaults
| 9 Smart Option Serviced Portfolio: Annualized Gross Defaults Smart Option Student Loans - Serviced Portfolio Smart Option Student Loans - Serviced Portfolio Annualized Gross Defaults as a % of Loans in P&I Repayment(1) Annualized Gross Defaults as a % of Loans in P&I Repayment(1) Data for Legacy S
Slide 10: Smart Option Vintage Data: Cumulative Gross Default by Loan Type
| 10 Smart Option Vintage Data: Cumulative Gross Default by Loan Type Smart Option Student Loans - Serviced Portfolio: All Products Smart Option Student Loans - Serviced Portfolio: Interest Only Cumulative Defaults by P&I Repayment Vintage Cumulative Defaults by P&I Repayment Vintage and Years Since
Slide 11: Smart Option Vintage Data: Voluntary Prepayments
| 11 Smart Option Vintage Data: Voluntary Prepayments ► Voluntary prepay speeds trend up as more loans enter P&I repayment Smart Option Student Loans - Serviced Portfolio Smart Option Student Loans - Serviced Portfolio Voluntary CPR by Disbursement Vintage and Product (1), (2), (3) Voluntary CPR by
Slide 12: Smart Option Vintage Data: Total Prepayments
| 12 Smart Option Vintage Data: Total Prepayments ► Following the initial few years after disbursement, total prepayments begin to rise more quickly as loans begin to default. Smart Option Student Loans - Serviced Portfolio Smart Option Student Loans - Serviced Portfolio (1), (2), (3) (1), (2), (3)
Slide 13: Smart Option: Cumulative Recoveries
| 13 Smart Option: Cumulative Recoveries Overall Smart Option Loan Cumulative Recovery Rate Interest Only Smart Option Loan Cumulative Recovery Rate For Charge-Off Vintages Since 2010 For Charge-Off Vintages Since 2010 Data for Legacy SLM and Navient thru present (1), (2) Data for Legacy SLM and Nav
Slide 14: Cohort Default Triangles – Smart Option Combined
| 14 Cohort Default Triangles – Smart Option Combined (Interest Only, Fixed Payment & Deferred) Smart Option Combined (P&I Repayment - Total) P&I Disbursed Principal Periodic Defaults Percentage Repayment Entering P&I by Years Since First P&I Repayment Period (1), (4), (5) Vintage Repayment ($m) 0 1
Slide 15: Cohort Default Triangles – Smart Option Interest Only
| 15 Cohort Default Triangles – Smart Option Interest Only Smart Option Interest Only (P&I Repayment - Total) P&I Disbursed Principal Periodic Defaults Percentage Repayment Entering P&I by Years Since First P&I Repayment Period (1), (4), (5) Vintage Repayment ($m) 0 1 2 3 4 5 6 7 8 Total 2010(2) $42
Slide 16: Cohort Default Triangles – Smart Option Fixed Payment
| 16 Cohort Default Triangles – Smart Option Fixed Payment Smart Option Fixed Payment (P&I Repayment - Total) P&I Disbursed Principal Periodic Defaults Percentage Repayment Entering P&I by Years Since First P&I Repayment Period (1), (4), (5) Vintage Repayment ($m) 0 1 2 3 4 5 6 7 8 Total 2011(2) $22
Slide 17: Cohort Default Triangles – Smart Option Deferred Payment
| 17 Cohort Default Triangles – Smart Option Deferred Payment Smart Option Deferred (P&I Repayment - Total) P&I Disbursed Principal Periodic Defaults Percentage Repayment Entering P&I by Years Since First P&I Repayment Period (1), (4), (5) Vintage Repayment ($m) 0 1 2 3 4 5 6 7 8 Total 2012(2) $249
Slide 18: Additional Information
| 18 Additional Information
Slide 19: Smart Option Loan Program Cohort Default Triangles: Terms and Calculations
| 19 Smart Option Loan Program Cohort Default Triangles Terms and calculations used in the cohort default triangles are defined below: First P&I Repayment Period – The month during which a borrower is first required to make a full principal and interest payment on a loan. P&I Repayment Vintage –
Slide 20: Smart Option Loan Program: Prepayment Methodology
| 20 Smart Option Loan Program: Prepayment Methodology The Constant Prepayment Rate (CPR) represents an annualized rate of prepayment speed measuring the reduction in the principal balance of a pool of loans in excess of the scheduled pool amortization. The rate can be positive or negative depending
Slide 21: Smart Option Loan Program: Prepayment Methodology Calculations Examples
| 21 Smart Option Loan Program: Prepayment Methodology Calculations Examples(1) 푃푟푒푝푎푦푚푒푛푡푡 = 퐸푋푃푡 − 퐴퐶푇푡 t PMTt ACTt EXPt Prepaymentt SMMt SRt CPR 푆푀푀 = 푃푟푒푝푎푦푚푒푛푡 Τ퐸푋푃 푡 푡 푡 0 $10,000 푆푅푡 = 퐴퐶푇푡Τ퐸푋푃푡 = 1 − 푆푀푀푡 Borrower is in school ($25 fixed payment due) 4 3 1 $25 $10,029 $10,029 $0 0.0% 100.0%