3 rd Quarter 2025 Earnings Presentation 1 Confidential and proprietary information. © 2025 Sallie Mae Bank. All rights reserved. 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, 2025, furnished to the Securities and Exchange Commission ("SEC") on October 23, 2025, ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-13251 SLM Corporation (Exact name of registrant as specified in its charter) Delaware (State or other jurisdiction of incor ...

Financial Performance - GAAP diluted earnings per common share for Q3 2025 were $0.63, an increase from $0.32 in Q3 2024[15] - Net income attributable to SLM Corporation common stock was $131,856 thousand for the three months ended September 30, 2025, compared to a loss of $49,800 thousand in the same period of 2024, marking a turnaround[27] - Basic earnings per common share for the three months ended September 30, 2025, was $0.64, compared to a loss of $0.23 in the same period of 2024, indicating a strong recovery[27] Loan and Credit Metrics - Private education loan originations grew by 6% year-over-year, with a total of $655 million to $675 million expected for the full year 2025[9] - Total net charge-offs as a percentage of average loans in repayment were 1.95%, down from 2.08% in Q3 2024[12] - Provisions for credit losses in Q3 2025 were $179 million, a decrease from $267 million in Q3 2024[12] - Average loans outstanding increased to $22.3 billion, up 9% from Q3 2024[12] - Loans held for investment increased to $21,615,067 thousand as of September 30, 2025, compared to $20,902,158 thousand at December 31, 2024, an increase of 3.41%[25] Income and Expenses - The net interest margin for Q3 2025 was 5.18%, an increase of 18 basis points from Q3 2024[9] - Total interest income for the nine months ended September 30, 2025, was $1,970,436 thousand, slightly up from $1,957,673 thousand in the same period of 2024, an increase of 0.65%[27] - Total non-interest income for the nine months ended September 30, 2025, was $405,522 thousand, up from $340,486 thousand in the same period of 2024, an increase of 19.14%[27] - Total non-interest expenses for Q3 2025 were $180 million, compared to $172 million in Q3 2024[13] Shareholder Returns - The company declared a common stock dividend of $0.13 per share in Q3 2025[10] - Declared dividends per common share increased to $0.13 for the three months ended September 30, 2025, compared to $0.11 in the same period of 2024, a rise of 18.18%[27] - The company repurchased 5.6 million shares for $166 million in Q3 2025, with $138 million remaining under the 2024 Share Repurchase Program[7][16] Balance Sheet Highlights - Total assets decreased to $29,605,422 thousand as of September 30, 2025, from $30,072,110 thousand at December 31, 2024, representing a decline of 1.55%[25] - Total liabilities decreased to $27,264,124 thousand as of September 30, 2025, from $27,912,190 thousand at December 31, 2024, a reduction of 2.33%[25] - Total equity increased to $2,341,298 thousand as of September 30, 2025, from $2,159,920 thousand at December 31, 2024, an increase of 8.39%[25] Other Financial Metrics - The return on assets (ROA) was 1.9%, up from 1.0% in the previous year[15] - Net interest income after provisions for credit losses increased to $193,515 thousand for the three months ended September 30, 2025, compared to $87,938 thousand for the same period in 2024, a significant increase of 120%[27]

Core Viewpoint - SLM Corporation, known as Sallie Mae, is a significant player in the private education loan sector in the U.S., focusing on originating and servicing private education loans for students seeking financial aid for higher education [1] Price Target and Analyst Sentiment - The consensus target price for SLM has remained stable at $37.50 over the last month and quarter, indicating a steady outlook from analysts [2][6] - Barclays has set a more conservative price target of $35, reflecting a cautious stance on SLM's future performance [2][6] - Over the past year, the average price target for SLM has increased from $33.67 to $37.50, suggesting a positive shift in analyst sentiment, potentially due to improved financial performance or strategic initiatives [3] Financial Performance - SLM's recent earnings report for Q2 2025 showed earnings per share at $0.32, which was significantly below the Zacks Consensus Estimate of $0.49, highlighting potential challenges ahead [3][6] - Increased credit loss provisions and expenses may have contributed to the cautious price target set by Barclays [5] Market Demand Influences - The demand for education loans is a critical factor influencing SLM's stock price, with the early opening of the Free Application for Federal Student Aid (FAFSA) for the 2026–27 academic year potentially impacting private education loan demand [4]

Core Points - Sallie Mae announced a fourth-quarter dividend for 2025 of $1.5121799 per share on its Preferred Stock Series B and $0.13 per share on its common stock [1][2] - The dividends will be paid on December 15, 2025, to stockholders of record as of December 4, 2025 [2] Company Overview - Sallie Mae, formally known as SLM Corporation, is a leader in private student lending, providing financing and resources to support access to college and lifelong learning [3][7] - The company emphasizes the importance of education and lifelong learning in helping individuals achieve their goals [3][7] Upcoming Events - Sallie Mae will release its third-quarter 2025 financial results after market close on October 23, 2025, with a live audio webcast available for investors [5]

Core Insights - Sallie Mae (SLM) is expected to report quarterly earnings of $0.84 per share, marking a significant increase of 465.2% year-over-year [1] - Revenue projections stand at $375.85 million, reflecting a year-over-year growth of 4.6% [1] Earnings Estimates - The consensus EPS estimate has been revised down by 8.4% over the last 30 days, indicating a reevaluation by analysts [2] - Changes in earnings estimates are crucial for predicting investor reactions and have shown a strong correlation with short-term stock performance [3] Key Metrics Projections - Analysts predict a 'Net Interest Margin' of 5.1%, slightly up from 5.0% a year ago [5] - 'Net Interest Income' is estimated at $375.85 million, compared to $359.40 million in the same quarter last year [5] - 'Other income' is projected to be $23.75 million, down from $28.39 million reported in the same quarter of the previous year [5] - The consensus estimate for 'Total Non-Interest Income' is $168.34 million, significantly higher than the year-ago figure of $24.52 million [6] Stock Performance - Sallie Mae shares have decreased by 4.4% over the past month, contrasting with a 1.1% increase in the Zacks S&P 500 composite [6] - The company holds a Zacks Rank 4 (Sell), suggesting it is expected to underperform the overall market in the near term [6]

Core Insights - Global equity markets experienced broad positive returns in Q3 2025, driven by resilient corporate earnings, enthusiasm for AI, and the U.S. Federal Reserve's first interest rate cut of the year [3][21] - Emerging markets, particularly China, led the gains, supported by a U.S. trade truce and strength in the tech sector [3][4] - The Polaris Global Equity Composite gained 5.04% (net of fees) for the quarter, underperforming the MSCI World Index, which returned 7.36% [5][6] Market Performance - Developed markets saw weaker currencies benefiting export-oriented indices, with Japan's TOPIX Index up 11.0% and the U.K.'s FTSE All-Share Index up 6.9% [4] - The U.S. market, represented by the S&P 500 Index, gained over 8%, primarily due to tech and communication stocks [4] - France and Germany underperformed due to geopolitical and fiscal concerns, with tepid growth projections under new U.S. trade policy [4] Sector Analysis - The healthcare sector was the best performer, with notable gains from pharmaceutical stocks, while financials, consumer discretionary, and IT also contributed positively [5][6] - Health insurers faced challenges, with UnitedHealth Group and CVS Health posting over 10% returns, while Elevance Health's shares dropped sharply due to profit guidance cuts [7] - In IT, Samsung Electronics excelled with strong performance in HBM technology and a significant deal with Tesla for AI chip manufacturing [11] Company Highlights - United Therapeutics Corp. was a top contributor to portfolio performance, driven by positive clinical trial results for its drug Tyvaso, potentially adding $4-5 billion in peak sales [6] - AbbVie, Inc. expects high single-digit revenue growth through 2029, with flagship drugs projected to exceed $31 billion in sales by 2027 [6] - The Carlyle Group Inc. outperformed in the financial sector, up over 20% due to strong fee-based credit and secondaries business [8] Investment Strategy - The current economic environment is characterized by a "two-speed" economy, with a concentrated AI-driven boom amidst subdued growth in other sectors [21][22] - Financials are seen as attractive due to stable net interest margins and loan growth, while defensives like consumer staples and healthcare are expected to perform well [22] - Opportunities in economically-sensitive sectors are being explored, with a focus on industrials benefiting from AI integration and supply chain modernization [22][23]

Core Points - Sallie Mae (Nasdaq: SLM) will release its third-quarter 2025 financial results after market close on Thursday, Oct. 23, 2025 [1] - A live audio webcast and presentation slides will be available for investors at SallieMae.com/investors [1] - Investors are advised to log in at least 15 minutes prior to the broadcast to ensure access [1] - The earnings news release will also be accessible on the same investor relations website [1] - A replay of the webcast will be available on the site following the live event [1]

Core Insights - SLM Corporation is considered one of the most undervalued financial stocks by Wall Street analysts [1] - The company is shifting its strategy to focus on issuing high-quality student loans rather than merely increasing its loan volume [2] Group 1: Strategic Shift - SLM has lowered its origination growth target to 5-6%, prioritizing higher credit quality over loan volume growth [2] - The company is tightening its credit standards, resulting in higher quality loans despite a slight increase in early delinquencies [2] Group 2: Market Opportunities - Legislative changes in Grad PLUS and Parent PLUS loans present a market opportunity valued between $4.5 billion to $5 billion [3] - These products target borrowers with stronger credit, aligning with SLM's risk appetite [3] - SLM is pursuing private credit funding partnerships to create capital-light, fee-based revenue streams [3] Group 3: Company Overview - SLM Corporation operates as Sallie Mae Bank, focusing on originating, servicing, and managing private education loans for various educational purposes across the United States [4]

Core Points - The Free Application for Federal Student Aid (FAFSA) is now open early for the 2026–27 academic year, allowing students to access billions in scholarships, grants, and federal financial aid [1] - Completing the FAFSA as soon as possible is crucial for students and families to make higher education more affordable [1] - Early filing secures a place in line for federal, state, and school-based aid, some of which is limited [1]