Slide 1: SLM Corporation Earnings Presentation Fourth Quarter 2016
SLM CORPORATION EARNINGS PRESENTATION FOURTH QUARTER 2016 January 19, 2017
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 18, 2017 (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 Overview
| 3 Sallie Mae Overview Sallie Mae Key Statistics for Q4 2016 − $0.15 diluted earnings per share for Q4 and $0.53 for Full Year 2016 − Portfolio of $14.1 billion of high quality Private Education Loans − 87% of Private Education Loans disbursed in Q4 are cosigned − Average Q4 Private Education Loan
Slide 4: Key Financial Metrics
| 4 Key Financial Metrics ($Millions) Q4 2016 Q3 2016 Q4 2015 2016 2015 Private Education Loans, Net $ 14,113 $ 13,726 $ 10,516 $ 14,113 $ 10,516 Net Interest Income $ 245 $ 223 $ 188 $ 891 $ 702 Net Interest Margin 5.55% 5.58% 5.48% 5.68% 5.49% Private Education Yield 8.08% 8.00% 7.84% 8.02% 7.93%
Slide 5: High Quality Private Education Loan Growth
| 5 High Quality Private Education Loan Growth $5,000 $4,666 $4,500 $4,330 8% $4,076 6% $4,000 $3,795 7% Disbursements ($MM) $3,500 $3,342 14% $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 2012 2013 2014 2015 2016 Private Education Loan Disbursements Disbursement Statistics Q4 2016 Q4 2015 2016 2015 Di
Slide 6: Private Education Loan Delinquencies
| 6 Private Education Loan Delinquencies3,4 December 31, 2016 September 30, 2016 December 31, 2015 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current 9,509,394 97.9% 8,724,365 98.0% 6,773,095 97.8% Loans delinquent 31-60 days 124,773 1.3% 108,
Slide 7: Earnings Metrics
| 7 Earnings Metrics5,6,7 ($Millions, except per share amounts) Q4 2016 Q3 2016 Q4 2015 2016 2015 GAAP Net Income, attributable to SLM Corp Common Stock $ 65 $ 52 $ 85 $ 229 $ 255 GAAP Diluted Earnings Per Common Share 0.15 0.12 0.20 0.53 0.59 "Core Earnings" Adjustments to GAAP 2 (1) - 2 (1) "Core
Slide 8: 2017 Guidance Update
| 8 2017 Guidance Update • Full-year Diluted Core EPS: $0.67 - $0.69 • Full-year Private Education Loan Originations: $4.9 billion • Full-year Non-GAAP Operating Efficiency Ratio: 38% - 39%
Slide 9: Footnotes
| 9 Footnotes 1 Includes acquired intangible asset amortization expense. 2 A GAAP-based operating efficiency ratio would compare total non-interest expenses to net revenue (which consists of net interest income, before provisions for credit losses, plus non-interest income). Our operating efficiency
Slide 10: “Core Earnings” to GAAP Reconciliation
| 10 “Core Earnings” to GAAP Reconciliation Quarters Ended Year Ended Dec. 31, Sept. 30, Dec. 31, Dec. 31, Dec. 31, (Dollars in thousands, except per share amounts) 2016 2016 2015 2016 2015 “Core Earnings” adjustments to GAAP: GAAP net income……….…………………………………….........………………… $ 70,242 $ 56,965 $ 89,