Financial Data and Key Metrics Changes - GAAP diluted EPS for Q4 2025 was $1.12, and full-year GAAP diluted EPS was $3.46, an increase from $2.68 in 2024 [7] - Private education loan originations for Q4 2025 were $1.02 billion, totaling $7.4 billion for the full year, representing a 6% increase over 2024 [7][8] - Net charge-offs for the private education loan portfolio were $98 million in Q4 2025 and $346 million for the full year, equating to 2.15% of average private education loans in repayment, down four basis points from 2024 [8][14] Business Line Data and Key Metrics Changes - The company reported a net interest margin (NIM) of 5.21% for Q4 2025, up 29 basis points year-over-year, and 5.24% for the full year, an increase of five basis points [9] - The total allowance as a percentage of private education loan exposure (reserve rate) was 6% at the end of 2025, up from 5.93% in the previous quarter and 5.83% at the end of 2024 [12] Market Data and Key Metrics Changes - College enrollment trends for Tier 1 schools are up, indicating continued value seen in higher education by students and parents [5] - The company anticipates that the recent federal student lending reforms could contribute an estimated $5 billion in annual originations, representing approximately 70% growth over 2025 [6] Company Strategy and Development Direction - The company is focused on supporting school partners and students as education evolves due to technological changes, emphasizing the importance of acquiring necessary skills for future competitiveness [5][6] - The strategic partnership with KKR aims to enhance capital efficiency and risk transfer benefits, with expectations of significant growth in private education loan originations [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the private student lending sector's robustness and a strong outlook for 2026, expecting private education loan origination growth of 12%-14% [18] - The company is prepared for potential economic uncertainties and believes that its strategic initiatives will lead to significant value creation opportunities [22] Other Important Information - The company repurchased 3.8 million shares for $106 million in Q4 2025, totaling 12.8 million shares for $373 million over the full year [9] - Non-interest expenses for the full year were $659 million, a modest increase of 2.6% year-over-year, reflecting disciplined expense management [16] Q&A Session Summary Question: Impact of postponement of wage garnishment on performance - Management indicated that while some customers have federal loans, most do not have Sallie Mae private student loans, and the postponement is not expected to significantly impact the business [24] Question: Modeling 1H vs 2H growth related to Grad PLUS - Management expects modest incremental volume in the first year of phase-in, with growth stepping up over the next two to three years [25][26] Question: Volumes for partnerships and loan sales in 2026 - The first strategic partnership has a minimum commitment of $2 billion in new originations, with expectations of designating about 30% of originations for sale [30] Question: ROI measurement for increased investment - Management emphasized the significant market opportunity for growth and the disciplined approach to measuring ROI on investments [40][41] Question: Confidence level on credit guidance for 2026 - Management expressed confidence in the performance of borrowers in modification programs, with positive payment habits indicating a strong likelihood of success [50][51]

Earnings Presentation 4 th Quarter & Full-Year 2025 1 © 2026 Sallie Mae Bank. All rights reserved. CAUTIONARY NOTE AND DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS The following information is current as of January 22, 2026 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation announcing its financial results for the quarter and year ended December 31, 2025, furnished to the Securities and Exchange Commission ("SEC") on January 22, 2026, and subsequent report ...

Core Thesis - Navient Corporation (NAVI) is viewed as a potentially undervalued asset in the financial sector, with a current stock price of $12 and an estimated upside to a target of $20, indicating a shift from a declining outlook to growth and improved credit performance [2][5] Financial Performance - NAVI's trailing and forward P/E ratios are 41.12 and 9.33 respectively, suggesting a significant disparity between current earnings and future growth expectations [1] - The company has implemented a restructuring program that has already cut approximately $400 million in overhead, which could further support earnings [3] Market Position and Strategy - The planned elimination of federal student lending for new students starting in 2026 is expected to expand private lending volumes and support higher earnings [2] - NAVI's borrower mix is shifting towards higher-quality refinance and graduate student loans, while legacy pre-spin loans are running off, reducing overall credit risk [2] Cash Flow and Valuation - NAVI's loan portfolios, including FFELP and private loans, are projected to generate substantial cash flows over the next several years, covering interest, overhead, and debt obligations [3] - The company's valuation remains low at around 60% of tangible book value, with elevated short interest indicating potential for improved market perception [4] Catalysts and Opportunities - Key catalysts for NAVI include the termination of Grad PLUS in July 2026, potential additional cost reductions, new funding agreements, and possible divestitures [5] - The company could attract interest from alternative asset managers such as Apollo, Blackstone, Carlyle, and KKR due to its origination capabilities and existing loan portfolios [4]

Core Thesis - Navient Corporation (NAVI) is viewed as a potentially undervalued asset in the financial sector, with a current stock price of $12 and an estimated upside to a $20 target, indicating a shift from a declining outlook to growth and improved credit performance [2][5] Financial Performance - As of December 1st, NAVI's share was trading at $12.35, with trailing and forward P/E ratios of 41.12 and 9.33 respectively [1] - The company has implemented a restructuring program that has already cut approximately $400 million in overhead, which could further support earnings [3] Market Position and Strategy - The planned elimination of federal student lending for new students starting in 2026 is expected to expand private lending volumes and support higher earnings [2] - NAVI's borrower mix is shifting towards higher-quality refinance and graduate student loans, while legacy pre-spin loans are running off, reducing overall credit risk [2] Cash Flow and Valuation - NAVI's loan portfolios, including FFELP and private loans, are projected to generate substantial cash flows over the next several years, covering interest, overhead, and debt obligations [3] - The company's valuation remains low at around 60% of tangible book value, with elevated short interest suggesting potential for improved market perception [4] Catalysts and Risks - Key catalysts for NAVI include the Grad PLUS termination in July 2026, potential additional cost reductions, new funding agreements, and possible divestitures [5] - Risks include macroeconomic deterioration affecting consumer credit and disruptions in capital markets [5] Interest from Asset Managers - The company could attract interest from alternative asset managers such as Apollo, Blackstone, Carlyle, and KKR due to its origination capabilities and existing loan portfolios [4]

Financial Data and Key Metrics Changes - GAAP diluted EPS for Q3 2025 was $0.63 per share, with loan originations of $2.9 billion, reflecting a 6.4% increase year-over-year and 6% growth year-to-date [4][5] - Net interest income for Q3 2025 was $373 million, up $14 million from the prior year, with a net interest margin of 5.18%, an increase of 18 basis points year-over-year [6][7] - Provision for credit losses decreased to $179 million from $271 million in the prior year, largely due to a $119 million provision release from the loan sale [6][7] Business Line Data and Key Metrics Changes - The cosigner rate for Q3 was 95%, up from 92% in the year-ago quarter, and the average FICO score at approval increased to 756 from 754, indicating strong underwriting discipline [5] - Private education loan net charge-offs were $78 million, representing 1.95% of average private education loans in repayment, down 13 basis points from the year-ago quarter [5][6] - Non-interest expenses for Q3 were $180 million, compared to $167 million in the prior quarter and $172 million in the year-ago quarter [9] Market Data and Key Metrics Changes - 4% of private education loans in repayment were 30 days or more delinquent, up from 3.6% at the end of the year-ago quarter, attributed to changes in loan modification eligibility criteria [7][8] - The company has seen stability in late-stage delinquencies and roll rates, with 80% of borrowers in loan modification programs making consistent payments after one year [8][9] Company Strategy and Development Direction - The company is optimistic about the long-term outlook for private student lending and is exploring alternative funding partnerships in the private credit space [10][11] - A first-of-its-kind partnership is expected to be announced soon, aimed at unlocking the value of the customer base and setting the stage for sustainable growth of fee-based revenues [11][12] - The company anticipates selling a small portfolio of seasoned loans and a portion of recent peak season originations, expecting GAAP earnings per common share for 2025 to be between $3.20 and $3.30 [12] Management's Comments on Operating Environment and Future Outlook - Management noted that despite economic ambiguity, there has been no material change in borrowers' ability to meet obligations [5][10] - The company is preparing for the impact of recent federal reforms, which are expected to create opportunities for growth in private student lending [10][11] - Management expressed confidence in maintaining a net charge-off rate in the high 1% to low 2% range over the long term [14][26] Other Important Information - The company has reduced outstanding shares by 55% since initiating its capital return strategy in 2020, repurchasing 5.6 million shares at an average price of $29.45 per share [5][6] - The liquidity ratio at the end of the quarter was 15.8%, with total risk-based capital at 12.6% and CET1 capital at 11.3% [9] Q&A Session Summary Question: Outlook for delinquency performance - Management expressed satisfaction with loan modification programs and expected stability in late-stage delinquencies and roll rates, despite a slight uptick in early-stage delinquencies [14][15] Question: Details on loan sale partnership - Management indicated that details on the loan sale partnership would be released once finalized, emphasizing the importance of the deal [15][20] Question: Impact of modifications on delinquency rates - Management noted that borrowers in modification programs have shown strong payment patterns, and they are optimistic about the upcoming wave of graduates transitioning into repayment [19][48] Question: Credit outlook and potential charge-offs - Management acknowledged the correlation between delinquencies and charge-offs but maintained confidence in their guidance and the effectiveness of their loan modification programs [24][34] Question: Buyback strategy and appetite - Management confirmed a commitment to aggressive share buybacks, with plans to assess timing and quantity post-partnership completion [86][87] Question: Opportunities from Plus Reform - Management sees Plus Reform as a significant opportunity for growth in private student lending, with potential annual origination increases projected in the $4 to $5 billion range [92][93]

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]

Financial Data and Key Metrics Changes - GAAP diluted EPS for Q2 2025 was $0.032 per share, with loan originations at $686 million, roughly in line with the same period last year [6][10] - Net interest income for Q2 2025 was $377 million, up $5 million from the prior year, with a net interest margin of 5.31% [11] - Provision for credit losses increased to $149 million in Q2 2025 from $17 million in the prior year, reflecting a more cautious macroeconomic outlook [12] - Private education loans delinquent for 30 days or more were 3.5%, a decrease from 3.6% at the end of Q1 2025 [13] Business Line Data and Key Metrics Changes - The credit quality of originations showed improvement, with a cosigner rate of 84%, up from 80% in the year-ago quarter [8] - Net private education loan charge-offs in Q2 were $94 million, representing 2.36% of average loans in repayment, an increase of 17 basis points year-over-year [14] - Non-interest expenses for Q2 were $67 million, significantly lower than $155 million in the prior quarter and $159 million in the year-ago quarter [15] Market Data and Key Metrics Changes - The company anticipates that new federal lending limits could generate an additional $4.5 billion to $5 billion in annual private education loan origination volume once fully realized [21] - The reforms will take effect on July 1, 2026, with existing borrowers grandfathered into current programs, potentially impacting near-term originations [20] Company Strategy and Development Direction - The company plans to maintain a strategy of mid to high single-digit private student loan portfolio growth, supported by loan sales and other structures [24] - The management is exploring new alternative funding partnerships in the private credit space to support growth while preserving balance sheet capacity [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for private student lending, particularly due to recent federal student loan reforms [6][19] - The company is closely monitoring the impacts of federal lending reforms and other policy developments on its business [7][20] Other Important Information - The company repurchased 2.4 million shares at an average price of $29.42 per share, reducing shares outstanding by over 53% since the start of the buyback strategy in 2020 [9] - The liquidity ratio at the end of Q2 was 17.8%, with total risk-based capital at 12.8% and common equity Tier 1 capital at 11.5% [16] Q&A Session Summary Question: Can you discuss the $1.8 billion loan sale and gain on sale margin? - The company is in line with expectations for the transaction, with modest adjustments in pricing due to changes in the rates environment [26] Question: Should we expect another loan sale in Q4 2025? - The company will monitor the peak season and evaluate capital levels before deciding on additional sales [27] Question: Can you explain the uptick in net charge-off rates? - The increase is attributed to disaster forbearance related to the California wildfires, which shifted some charge-off timing [28][30] Question: How does the new federal lending reform impact your growth algorithm? - The company maintains its growth framework but may trend towards higher growth rates due to the new opportunities presented by the reforms [34] Question: What is the expected market share for the new addressable market? - The company expects to maintain a market share in the 60% range for the new opportunities presented by the reforms [58] Question: What is the timing for the new private credit partnerships? - The company aims to have partnerships in place before the additional volume from reforms comes into effect [65]

Financial Performance - Full-Year 2024 private education loan originations reached $70 billion, a 10% increase compared to $64 billion in 2023[8] - Q4 2024 private education loan originations totaled $982 million, a 17% increase compared to $839 million in the year-ago quarter[11] - Full-Year 2024 GAAP diluted earnings per common share were $268[17] - The company repurchased 116 million shares in Full-Year 2024 for $250 million, at an average price of $2159 per share[13] Balance Sheet and Capital Allocation - Total assets grew by 31% in Full-Year 2024, inclusive of FFELP loan portfolio sale, while private education loan balance grew by 57%[9] - The total risk-based capital ratio was 126%, with a CET1 capital ratio of 113%[12] - $37 billion in private education loans were sold at attractive premiums in 2024, including $34 billion of principal and $274 million in capitalized interest[19] Credit Performance - The percentage of private education loans in repayment delinquent 30+ days as of December 31, 2024, was 37%, compared to 39% in 2023[25] - Private education loan net charge-offs for Full-Year 2024 were $332 million, representing 219% of average private education loans in repayment, compared with 244% in 2023[27] - Q4 2024 provision for credit losses was $108 million, with a total allowance of 583% as a percentage of the ending total loan balance plus unfunded commitments and total accrued interest receivable on private education loans[24] Funding and Liquidity - Deposit portfolio balances at the end of Q4 2024 were 18% lower than at the end of Q3 2024[20] - Uninsured deposits represented 3% of total deposits as of December 31, 2024[22]