Slm Corporation · NASDAQ:SLM
Slm — Corporate Update (October 2017)
21 slides from Slm's corporate update, Oct 24, 2017
Slide 1: Smart Option Student Loan Historical Performance Data
| 1 SALLIE MAE Smart Option Student Loan Historical Performance Data Period ended September 30, 2017 Exhibit 99.1
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, 2017 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) dated October 18, 2017,
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: Serviced Portfolio 31-60 Day Delinquencies
| 5 0% 2% 4% 6% 8% 10% Dec -1 0 M a r- 1 1 J u n -1 1 S e p -1 1 Dec -1 1 M a r- 1 2 J u n -1 2 S e p -1 2 Dec -1 2 M a r- 1 3 J u n -1 3 S e p -1 3 Dec -1 3 M a r- 1 4 J u n -1 4 S e p -1 4 Dec -1 4 M a r- 1 5 J u n -1 5 S e p -1 5 Dec -1 5 M a r- 1 6 J u n -1 6 S e p -1 6 Dec -1 6 M a r- 1 7 J u n
Slide 6: Smart Option Serviced Portfolio: 61-90 Day Delinquencies
| 6 Smart Option Serviced Portfolio: 61-90 Day Delinquencies 0% 2% 4% 6% 8% 10% Dec -1 0 M a r- 1 1 J u n -1 1 S e p -1 1 Dec -1 1 M a r- 1 2 J u n -1 2 S e p -1 2 Dec -1 2 M a r- 1 3 J u n -1 3 S e p -1 3 Dec -1 3 M a r- 1 4 J u n -1 4 S e p -1 4 Dec -1 4 M a r- 1 5 J u n -1 5 S e p -1 5 Dec -1 5 M
Slide 7: Serviced Portfolio 91+ Day Delinquencies
| 7 0% 2% 4% 6% 8% 10% Dec -1 0 M a r- 1 1 J u n -1 1 S e p -1 1 Dec -1 1 M a r- 1 2 J u n -1 2 S e p -1 2 Dec -1 2 M a r- 1 3 J u n -1 3 S e p -1 3 Dec -1 3 M a r- 1 4 J u n -1 4 S e p -1 4 Dec -1 4 M a r- 1 5 J u n -1 5 S e p -1 5 Dec -1 5 M a r- 1 6 J u n -1 6 S e p -1 6 Dec -1 6 M a r- 1 7 J u n
Slide 8: Loans in P&I Repayment and Forbearance
| 8 Data as of September 30, 2017. (1) Loans in P&I Repayment and Forbearance include loans in forbearance and loans for which scheduled principal and interest payments were due at the end of the applicable monthly reporting period. (2) P&I Repayment Vintage is defined as the calendar year during wh
Slide 9: Annualized Gross Defaults as a % of Loans in P&I Repayment
| 9 0% 2% 4% 6% 8% 10% Dec -1 0 M a r- 1 1 J u n -1 1 S e p -1 1 Dec -1 1 M a r- 1 2 J u n -1 2 S e p -1 2 Dec -1 2 M a r- 1 3 J u n -1 3 S e p -1 3 Dec -1 3 M a r- 1 4 J u n -1 4 S e p -1 4 Dec -1 4 M a r- 1 5 J u n -1 5 S e p -1 5 Dec -1 5 M a r- 1 6 J u n -1 6 S e p -1 6 Dec -1 6 M a r- 1 7 J u n
Slide 10: Cumulative Defaults by P&I Repayment Vintage
| 10 6.8% 6.2% 5.1% 4.4% 4.2% 3.3% 1.3% 0% 1% 2% 3% 4% 5% 6% 7% 8% 9% 10% 0 1 2 3 4 5 6 7 8 9 C u m u la ti v e De fa u lt s a s a % o f Di s b u rs e d P ri n c ip a l E n te ri n g P & I R e p a y m e n t Years Since First P&I Repayment Period Smart Option Student Loans - Serviced Portfolio: All P
Slide 11: Smart Option Vintage Data: Voluntary Prepayments
| 11 Smart Option Vintage Data: Voluntary Prepayments ► Voluntary prepay speeds trending up as more loans enter P&I repayment 0% 2% 4% 6% 8% 10% 12% 14% 16% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 % C P R Quarters Since Disbursement Smart Option Student Loans - Serviced Portfolio
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. 0% 2% 4% 6% 8% 10% 12% 14% 16% 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 % C P R Quarters Since Disburseme
Slide 13: Smart Option: Cumulative Recoveries
| 13 Smart Option: Cumulative Recoveries Data as of September 30, 2017. (1) Certain data used in the charts above was provided by Navient under a data sharing agreement. Sallie Mae Bank has not independently verified, and is not able to verify, the accuracy or completeness of the data provided under
Slide 14: Cohort Default Triangles – Smart Option Combined
| 14 Cohort Default Triangles – Smart Option Combined (Interest Only, Fixed Payment & Deferred) 0 1 2 3 4 5 6 7 Total 2010 (2) $428 1.2% 1.3% 1.2% 1.0% 0.9% 0.5% 0.4% 0.3% 6.8% 2011 (2) $998 0.8% 1.1% 1.3% 1.1% 0.8% 0.6% 0.4% 6.2% 2012 (2) $1,633 0.5% 0.9% 1.3% 1.0% 0.8% 0.6% 5.1% 2013 (2) $2,257 0.
Slide 15: Cohort Default Triangles – Smart Option Interest Only
| 15 Cohort Default Triangles – Smart Option Interest Only 0 1 2 3 4 5 6 7 Total 2010 (2) $426 1.2% 1.3% 1.2% 1.0% 0.9% 0.5% 0.4% 0.3% 6.8% 2011 (2) $772 1.0% 1.1% 1.2% 1.0% 0.7% 0.5% 0.3% 5.7% 2012 (2) $855 0.7% 0.7% 1.0% 0.7% 0.6% 0.3% 4.0% 2013 (2) $890 0.5% 0.6% 0.9% 0.6% 0.4% 3.1% 2014 (2) $864
Slide 16: Cohort Default Triangles – Smart Option Fixed Payment
| 16 Cohort Default Triangles – Smart Option Fixed Payment 0 1 2 3 4 5 6 Total 2011 (2) $221 0.3% 1.3% 1.6% 1.4% 1.3% 1.0% 0.7% 7.6% 2012 (2) $529 0.4% 1.0% 1.8% 1.2% 1.1% 0.7% 6.2% 2013 (2) $732 0.3% 1.0% 1.4% 1.0% 0.8% 4.6% 2014 (2) $960 0.4% 1.1% 1.3% 0.8% 3.6% 2015 (3) $781 0.4% 1.3% 1.0% 2.7% 2
Slide 17: Cohort Default Triangles – Smart Option Deferred Payment
| 17 Cohort Default Triangles – Smart Option Deferred Payment 0 1 2 3 4 5 Total 2012 (2) $249 0.1% 1.5% 1.4% 1.6% 1.1% 1.0% 6.6% 2013 (2) $634 0.1% 1.6% 2.1% 1.4% 1.0% 6.1% 2014 (2) $999 0.1% 2.5% 2.2% 1.3% 6.2% 2015 (3) $1,139 0.1% 2.8% 1.7% 4.5% 2016 (3) $1,421 0.0% 1.6% 1.6% 0 1 2 3 4 5 Total 201
Slide 18: Additional Information
| 18 Additional Information
Slide 19: Cohort default triangle terms and calculations
| 19 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 – The calendar year of a loan’s First P&I Repayment
Slide 20: Smart Option Loan Program: Prepayment Methodology
| 20 Smart Option Loan Program: Prepayment Methodology Legend + Impact is positive – Impact is negative 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 amortizatio
Slide 21: Smart Option Loan Program: Prepayment Methodology
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