Slm Corporation · NASDAQ:SLM
Slm — Q3 2025 Earnings Presentation
24 slides from Slm's earnings presentation, Oct 23, 2025
Slide 1: Investor Presentation 3rd Quarter 2025
Investor Presentation 3rd Quarter 2025 Confidential and proprietary information. © 2025 Sallie Mae Bank. All rights reserved. 1
Slide 2: Cautionary Note and Disclaimer Regarding Forward-Looking Statements
CAUTIONARY NOTE AND DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS The following information is current as of October 23, 2025 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation announcing its financial results for the quarter ended September 30, 202
Slide 3: 3rd Quarter 2025 Highlights
Balance Sheet & 3rd Quarter Capital Allocation $2.9B $0.13 Private Education Loan Common stock dividend per 2025 Highlights Originations(1) in Q3 2025 as compared to $2.8B in the share paid in Q3 2025. year-ago quarter. 24.3% (2) 12.6% Return on Common Equity for Total risk-based capital ratio; Q3 2
Slide 4: Additional Key Performance Metrics
Funding & Liquidity Additional Key Performance 15.8% Deposit portfolio balances at the end of Q3 2025 were 7% Metrics lower than at the end of Q3 2024; Q3 2025 mix of brokered Liquidity ratio as of September 30, vs. retail and other was 2025 approximately 39% and 61%, respectively. $1.9B Private Edu
Slide 5: A Compelling Investment Opportunity
A Compelling Outstanding financial track record with strong EPS performance and ROCE Investment Opportunity Well-positioned in large and growing private student loan market, with powerful brand recognition and attractive client base Consistent profitability, balance sheet strength and strong risk an
Slide 6: Sallie Mae is an Outstanding Franchise
Sallie Mae is an 64% 2024 full-year market share Outstanding Franchise of private student lending marketplace(5) Sallie Mae is the market-leading brand for private education loans driven by brand recognition, rigorous underwriting methodology, and industry-leading customer service. 60% In School Pay
Slide 7: Providing Customers with Financial Backing, Information, and Tools to Achieve Their Goals
SLM Portfolio Providing Customers with Financial Backing, Information, and Tools to Achieve Their Goals PRIVATE Smart Option SALLIE Offers traditional savings EDUCATION Student Loans MAE products LOANS Emphasize in-school BANK • High-yield savings accounts payment features that can • Money market ac
Slide 8: Private Education Loan Portfolio
Smart Option Originations Vintage Smart Option Payment Type (9) Private 19% 2025 3% Pre 2015 3% 18% Education 2015 3% Interest Only 2016 3% 46% Loan 2017 Deferred 3% 2018 Portfolio 27% 2024 $20.1B Loans 4% 4% 2019 $20.1B Loans 2020 7% 36% 2021 Fixed Pay 14% 10% 2022 2023 High Quality Private Educati
Slide 9: Sallie Mae's Smart Option Loan
Sallie Mae’s Smart Option Loan The Smart Option Loan product, introduced in 2009, consists of: Interest Only loans Fixed Pay loans Deferred loans • Smart Option payment option may Require full interest Require $25 fixed Do not require payments not be changed after selected at payments during in-scho
Slide 10: More Personalized, Flexible Financing Options that Set Students Up for Success
More Personalized, Flexible Financing Options that Set Students Up for Success Medical General Studies Sallie Mae Federal Student Loan Program Federal Direct Loan Loan Program Smart Option Student Loan Parent Plus (Subsidized & Unsubsidized) Dental Yr. 1 - $5,500 ($3,500 > subsidized) Undergraduate
Slide 11: Our Proven Strategy Aims to Maximize the Profitability and Growth of the Core Business
Our Proven Strategy Aims to Maximize the Profitability and Growth of the Core Business STRATEGIES TO MAXIMIZE REVENUE STRATEGIES TO MANAGE UNIT COSTS Drive penetration at all schools Maintain strong focus on fixed cost discipline Increase market share by bridging gaps in Drive towards reducing both
Slide 12: Optimize the Value of the Brand and Attractive Client Base
Optimize the Value of the Brand and Attractive Client Base WHAT Ensure products and services are Build products and services that Prioritize partnerships Look for opportunities WE DO consistent with our core mission leverage our customer affiliation and other capital efficient to optimize ROI and dr
Slide 13: Aiming to Enhance Shareholder Value Through Disciplined Balance Sheet Growth and Strategic Capital Return
Aiming to Enhance Shareholder Value Through Disciplined Balance Sheet Growth and Strategic Capital Return Strong Balance Expected to drive recurring Expected to support a consistent Sheet & Recurring revenue and lead to steady dividend with the potential for Earnings Growth double-digit earnings per
Slide 14: Consumers Increasingly Rely on Borrowed Funds to Finance the Cost of a Higher Education
Roughly Half of Consumers Increasingly Rely Families USED BORROWED FUNDS on Borrowed Funds to Finance IN AY 2024-25 the Cost of a Higher Education Families’ out-of-pocket contributions covered half of college costs of costs covered by families’ 48% out-of-pocket contributions of costs covered by sch
Slide 15: Diversified Funding Optimizes Net Interest Margin
Diversified Funding Optimizes Net Interest Margin Long-Term Funding • Outstanding borrowings consist of unsecured debt and secured borrowings issued through our term asset-backed securities program, as well as our multi-lender secured borrowing facility, Funding Strategy totaling approximately $1 bi
Slide 16: Private Education Loan Trends
Average FICO In School Cosigned Private Private Education Loan Originations(1) at Approval(8) Payment Education Q3 Loan Trends Full Year 2025* 2025 * $6,393 Third quarter 2025 originations at YTD approximately $2.9 Billion, 6% growth from the year-ago quarter. 2024 $7,013 752 56% 90% Third quarter 2
Slide 17: ABS Supplement
ABS — Suppleme ot “ ° 0 N eos sallie mage * - ey) eet si mt. =, 2fep, a ee
Slide 18: Sallie Mae Bank ABS Summary – Last 12 Quarters (On-Balance Sheet)
Sallie Mae Bank ABS Summary – Last 12 Quarters (On-Balance Sheet)* 18 * Pool characteristics represent the last three years of issuance as of the Statistical Cutoff Date for the respective transaction.
Slide 19: Sallie Mae Bank ABS Structures
Sallie Mae Bank ABS Structures 19
Slide 20: Appendix
Appendix 20
Slide 21: Quarterly Financial Highlights
Quarterly Financial Highlights Q3 Q2 Q3 Q3 Q2 Q3 2025 2025 2024 2025 2025 2024 Income Statement ($ Millions) $ $ $ Key Performance Metrics ($ in millions) Total interest income 658 657 653 Net Interest Margin 5.18% 5.31% 5.00% Total interest expense 285 280 293 Net Interest Income 373 377 359 Yield—
Slide 22: Credit Performance
Credit Performance (16)(17)(18) Private Education Loans Held for Investment Quarters Ended SEPT 30, 2025 JUN 30, 2025 SEPT 30, 2024 ($ Thousands) Balance % Balance % Balance % Loans in repayment and percentage of each status: Loans current $ 15,638,904 96.0% $ 15,661,996 96.5% $ 14,806,983 96.4% Loa
Slide 23: Allowance for Credit Losses
Allowance for Credit Losses Consolidated Statements of Income – Provision for Credit Losses Reconciliation Factors affecting the Provision for Credit Losses 3rd Quarter 2025 Quarter Ended September 30, 2025 ($ THOUSANDS) • Total Allowance % of Private Private Education Loan provision for credit loss
Slide 24: Footnotes
Footnotes 1. Originations represent loans that were funded or acquired during the period presented. 2. We calculate and report our Return on Common Equity (“ROCE”) as the ratio of (a) GAAP net income (loss) attributable to SLM Corporation common stock numerator (annualized) to (b) the net denominato