Investor Presentaiton
Consumer Lending Segment
"Core Earnings" Basis
Selected Financial Information and Ratios
($ In millions)
Q4 20 Q4 19
2020
2019
Segment net interest margin
3.02% 3.31%
3.20%
3.30%
Private Education Loans
(including Refinance Loans):
Provision for loan losses
$2
$42
$142
$228
Charge-offs 1
$28
$97
$184
$364
Annualized charge-off rate 1
0.53%
1.75%
0.88% 1.67%
Greater than 30-days
2.6%
4.6%
2.6%
4.6%
delinquency rate
Greater than 90-days
1.0%
2.0%
1.0%
2.0%
delinquency rate
Forbearance rate
3.9%
2.7%
3.9%
2.7%
Average Private Education
Loans
$22,296 $22,624 $22,720 $22,512
Operating Expense
Net Income
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Full Year and 4th Quarter Highlights
Consumer Lending
Q4 20 Net Interest Margin: 302 basis points
Q4 20 Charge-off Rate 1: 53 basis points
Annualized charge-off rate declined 70% to 53 basis points 1
compared to the year ago quarter
Private Education Loan delinquency rate declined 43% to
2.6% compared to the year ago quarter
Q4 20 Forbearance rate declined 73% from its peak of
14.7%, in Q2 20
Forbearance rate increased to 3.9% from 2.7% in the year
ago quarter
Originated $4.6 billion of Private Education Refinance Loans
in 2020
$1.1 billion of Private Education Refinance Loans
originated in Q4 20 with an average FICO of 771
$37
$40
$146
$156
$108
$89
$360
$316
Full year net income increased 14% or $44 million, to $360
million compared to the year ago quarter 1
1 Excluding the $23M and $21M of charge-offs on the expected future recoveries of charged-off loans in 2020 and 2019, respectively, that occurred as a result of changing the charge-off rate from 81% to 81.4% in 2020 and
from 80.5% to 81% in 2019.
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