Slide 1: SLM Corporation Earnings Presentation First Quarter 2016
SLM CORPORATION EARNINGS PRESENTATION FIRST QUARTER 2016 April 21, 2016
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 April 20, 2016 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial re
Slide 3: Sallie Mae Overview
| 3 Sallie Mae Overview Sallie Mae Key Statistics for Q1 2016 − $0.14 diluted earnings per share − Portfolio of $12.0 billion of high quality Private Education Loans − 90% of Private Education Loans are cosigned − Average Private Education Loan Originations FICO of 748 − 79% of Private Education Loa
Slide 4: Key Financial Metrics
| 4 Key Financial Metrics ($Millions) Q1 2016 Q4 2015 Q1 2015 Private Education Loans, Net $ 12,021 $ 10,515 $ 9,701 Net Interest Income $ 210 $ 188 $ 171 Net Interest Margin 5.77% 5.48% 5.60% Private Education Yield 8.03% 7.84% 8.07% Cost of Funds 1.26% 1.18% 1.17% Operating Expenses 1 $ 93 $ 86 $
Slide 5: High Quality Private Education Loan Originations
| 5 High Quality Private Education Loan Originations Growth $5,000 $4,600 $4,500 $4,330 6% $4,076 6% $4,000 $3,795 7% $3,500 $3,342 14% Originations ($MM) $3,000 $2,500 $2,000 $1,804 $1,500 $1,000 $500 $0 2012 2013 2014 2015 2016 Private Education Loan Originations Originations Statistics ($) Q1 201
Slide 6: Private Education Loan Delinquencies
| 6 Private Education Loan Delinquencies3,4 March 31, 2016 December 31, 2015 March 31, 2015 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current 7,678,446 97.9% 6,773,095 97.8% 5,896,132 98.4% Loans delinquent 31-60 days 78,242 1.0% 91,129 1.3%
Slide 7: Earnings Metrics
| 7 Earnings Metrics5,6,7 ($Millions, except per share amounts) Q1 2016 Q4 2015 Q1 2015 GAAP Net Income $ 66 $ 90 $ 48 GAAP Diluted Earnings Per Common Share 0.14 0.20 0.10 "Core Earnings" Adjustments to GAAP 1 0 (2) "Core Earnings" 67 90 46 "Core Earnings" Diluted Earnings Per Common Share 0.14 0.2
Slide 8: Footnotes
| 8 Footnotes 1 Includes Acquired intangible asset amortization expense. 2 Operating efficiency ratio is calculated as total expenses, excluding restructuring and other reorganization expenses, divided by net interest income (before provisions for credit losses) and other income, excluding gains on
Slide 9: “Core Earnings” to GAAP Reconciliation
| 9 “Core Earnings” to GAAP Reconciliation Quarters Ended Mar. 31, Dec. 31, Mar. 31, 2016 2015 2015 (Dollars in thousands, except per share am ounts) “Core Earnings” adjustments to GAAP: GAAP net income attributable to SLM Corporation $ 65,915 $ 89,845 $ 47,699 Preferred stock dividends …………………...……