Slide 1: SLM Corporation Earnings Presentation Second Quarter 2016
SLM CORPORATION EARNINGS PRESENTATION SECOND QUARTER 2016 July 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 July 20, 2016 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial res
Slide 3: Sallie Mae Overview
| 3 Sallie Mae Overview Sallie Mae Key Statistics for Q2 2016 − $0.12 diluted earnings per share − Portfolio of $12.2 billion of high quality Private Education Loans − 78% of Private Education Loans disbursed in Q2 are cosigned − Average Q2 Private Education Loan originations FICO of 744 − 79% of Pr
Slide 4: Key Financial Metrics
| 4 Key Financial Metrics ($Millions) Q2 2016 Q1 2016 Q2 2015 Private Education Loans, Net $ 12,183 $ 12,021 $ 9,245 Net Interest Income $ 213 $ 210 $ 168 Net Interest Margin 5.84% 5.77% 5.51% Private Education Yield 7.98% 8.03% 7.96% Cost of Funds 1.34% 1.26% 1.17% Operating Expenses 1 $ 95 $ 93 $
Slide 5: High Quality Private Education Loan Growth
| 5 High Quality Private Education Loan Growth $5,000 $4,600 $4,500 $4,330 6% $4,076 6% $4,000 $3,795 7% Disbursements ($MM) $3,500 $3,342 14% $3,000 $2,500 $2,226 $2,000 $1,500 $1,000 $500 $0 2012 2013 2014 2015 2016 Private Education Loan Disbursements Disbursement Statistics Q2 2016 Q2 2015 Disbu
Slide 6: Private Education Loan Delinquencies
| 6 Private Education Loan Delinquencies3,4 June 30, 2016 March 31, 2016 June 30, 2015 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current 7,860,994 97.9% 7,678,446 97.9% 5,570,389 98.3% Loans delinquent 31-60 days 87,990 1.1% 78,242 1.0% 57,88
Slide 7: Earnings Metrics
| 7 Earnings Metrics5,6,7 ($Millions, except per share amounts) Q2 2016 Q1 2016 Q2 2015 GAAP Net Income $ 57 $ 66 $ 91 GAAP Diluted Earnings Per Common Share 0.12 0.14 0.20 "Core Earnings" Adjustments to GAAP (1) 1 - "Core Earnings" 56 67 91 "Core Earnings" Diluted Earnings Per Common Share 0.12 0.1
Slide 8: 2016 Guidance Update
| 8 2016 Guidance Update • Full-year Diluted Core EPS: $0.51 - $0.52 • Full-year Private Education Loan Originations: $4.6 billion • Full-year Operating Efficiency Ratio Improvement: 10%
Slide 9: Footnotes
| 9 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 10: "Core Earnings" to GAAP Reconciliation
| 10 “Core Earnings” to GAAP Reconciliation Quarters Ended June 30, Mar. 31, June 30, 2016 2016 2015 (Dollars in thousands, except per share amounts) “Core Earnings” adjustments to GAAP: GAAP net income……….….……..............………………… $ 57,205 $ 65,915 $ 91,016 Preferred stock dividends ………....….......