Slide 1: SLM Corporation Earnings Presentation Fourth Quarter 2015
SLM CORPORATION EARNINGS PRESENTATION FOURTH QUARTER 2015 JANUARY 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 January 20, 2016 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial
Slide 3: Sallie Mae Bank Overview
| 3 Sallie Mae Bank Overview Sallie Mae Bank Key Portfolio Statistics for Q4 2015 − Portfolio of $10.5 billion of high quality Private Education Loans − 90% of Private Education Loans are cosigned − Average Private Education Loan Originations FICO of 744 − 79% of Private Education Loans have a FICO
Slide 4: Key Financial Metrics
| 4 Key Financial Metrics Q4 2015 Q3 2015 Q4 2014 2015 2014 ($Millions) Private Education Loans, Net $ 10,515 $ 10,767 $ 8,247 $ 10,515 $ 8,247 Net Interest Income $ 188 $ 175 $ 151 $ 702 $ 578 Net Interest Margin 5.48% 5.36% 5.01% 5.48% 5.26% Private Education Yield 7.84% 7.87% 8.07% 7.93% 8.16% Co
Slide 5: High Quality Private Education Loan Originations Growth
| 5 High Quality Private Education Loan Originations Growth $5,000 $4,500 $4,330 $4,076 6% $4,000 $3,795 7% $3,500 $3,342 14% Originations ($MM) $3,000 $2,737 22% $2,500 $2,000 $1,500 $1,000 $500 $0 2011 2012 2013 2014 2015 Private Education Loan Originations Originations Statistics ($) 2011 2012 20
Slide 6: Private Education Loan Delinquencies
| 6 Private Education Loan Delinquencies4,5,6 December 31, 2015 September 30, 2015 December 31, 2014 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current 6,773,095 97.8% 6,529,855 98.1% 5,045,600 98.0% Loans delinquent 31-60 days 91,129 1.3% 79,
Slide 7: Delinquency and Default Performance
| 7 Delinquency and Default Performance (As a % of Loans in P&I Repayment) 7,8 31-60 Day Delinquency 61-90 Day Delinquency 10.0% 10.0% % of P&I Repayment Balance % of P&I Repayment Balance 8.0% 8.0% 6.0% 6.0% 4.0% 4.0% 2.0% 2.0% 0.0% 0.0% Sep-12 Sep-13 Sep-14 Sep-15 Mar-15 Mar-12 Mar-13 Mar-14 Dec-1
Slide 8: Earnings Metrics
| 8 Earnings Metrics9,10,11 Q4 2015 Q3 2015 Q4 2014 2015 2014 ($Millions, except per share amounts) GAAP Net Income $ 90 $ 46 $ 20 $ 274 $ 194 GAAP Diluted Earnings Per Common Share 0.20 0.09 0.03 0.59 0.42 "Core Earnings" Adjustments to GAAP 0 1 0 (1) 1 "Core Earnings" 90 47 20 273 195 "Core Earnin
Slide 9: 2016 Guidance
| 9 2016 Guidance • Full-year Diluted Core EPS: $0.49 - $0.51 • Full-year Private Education Loan Originations: $4.6 billion • Full-year Operating Efficiency Ratio Improvement: 8-10%
Slide 10: Footnotes
| 10 Footnotes 1 Includes Acquired intangible asset impairment and amortization expense. 2 Operating efficiency ratio is calculated as total expenses, excluding restructuring costs, divided by net interest income (after provision for credit losses) and other income. 3 In 2016, the company will chang
Slide 11: Important Information Regarding Historical Loan Performance Data
| 11 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
Slide 12: Important Information Regarding Historical Loan Performance Data (Cont.)
| 12 Important Information Regarding Historical Loan Performance Data (Cont.) Smart Option Loan Portfolio Data for Charts on Page 7 of Presentation Legacy SLM Consolidated Smart Option Student Loan Portfolio Data prior to the Spin-Off Date, and Sallie Mae Bank-Only Smart Option Student Loan Data fro
Slide 13: Core Earnings to GAAP Reconciliation
| 13 “Core Earnings” to GAAP Reconciliation Quarters Ended Years Ended Dec. 31, Sept 30, Dec. 31, Dec. 31, Dec. 31, 2015 2015 2014 2015 2014 (Dollars in thousands, except per share am ounts) “Core Earnings” adjustments to GAAP: GAAP net income attributable to SLM Corporation……….………….…….........……………