SLM Corp (NASDAQ:SLMBP) Q4 2014 Earnings Conference Call - Final Transcript
Jan 22, 2015 • 08:00 am ET
Good morning. My name is Angel, and I will be your conference operator today. At this time, I would like to welcome everyone to the 2014 Q4 Sallie Mae Earnings Call. All lines have been placed on mute to prevent any background noise. After the speakers' remarks, there will be a question-and-session. (Operator Instructions) Thank you.
I would now like to turn the call over to our host, Mr. Brian Cronin, Senior Director, Investor Relations. Sir, you may begin your conference.
Thank you, Angel. Good morning and welcome to Sallie Mae's 2014 fourth quarter earnings call. With me today is Ray Quinlan, our CEO and Steve McGarry, our CFO.
After the prepared remarks, we will open up the call for questions. (Forward-looking Cautionary Statements)
Thank you. I'll now turn the call over to Ray.
Thanks Brian. Good morning and thank all for calling and attending our session. So as I start the meeting, I'd to discuss some of the results in 2014 first, and then as we pivot into 2015, we'll talk about the outlook there. And then of course, we can engage in the discussion over Q&A.
So, 2014 is a very good year for our Company. We concentrated on six items in particular, and they were the spin from the private company, building the team, putting them in place, the financials and the good results for our shareholders, the regulatory environment as the bank entered 2014 with the cease-and-desist order on it, and there was a consent order right before the spin, first those things had to be addressed, the future and then finding other opportunities.
In regard to the spin, we have been fabulously successful. We have legal day 1 successfully executed on May 1, 2014. As you know, we then entertained -- we obtained an independent company. We had our first quarter of earnings in the third quarter -- in the second quarter my mistake, and the third went well and we are now in the fourth quarter. The team which was an almost entirely new team starting a new audit structure; as the bank has been put in place, we established the position of the CRO. We've recruited high quality talents throughout, and we are now completed on that task.
In our financials, we of course were concerned that while we were doing the spin and we were distracted to some extent with all the corporate activity that we might suffer in regard to our position in the marketplace, we're happy to report that after giving $4 billion of origination guidance throughout the year, we ended the year at 4.1. We naturally wanted to ensure that the quality of our new customers was equal to or better than the quality the preexisting customers, in fact that happened. We naturally wanted to ensure that we maintain credible and healthy spreads.
We'll talk a little bit later, that is certainly the case; very concerned about the credit performance
we would talk about that at length in this call.