SLM Corp (NASDAQ:SLMBP) Q3 2019 Earnings Conference Call - Final Transcript

Oct 24, 2019 • 08:00 am ET


SLM Corp (NASDAQ:SLMBP) Q3 2019 Earnings Conference Call - Final Transcript


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Good morning. My name is Lisa, and I will be your conference operator today. At this time, I would like to welcome everyone to the 2019 Q3 Sallie Mae Earnings Conference Call. [Operator Instructions] Thank you.

I would now like to turn the call over to Mr. Cronin, VP of Investor Relations.

Brian Cronin

Great. Thanks, Lisa. Good morning, and welcome to Sallie Mae's Third Quarter 2019 Earnings Call. With me today is Ray Quinlan, our CEO; and Steve McGarry, our CFO. After the prepared remarks, we'll open up the call for questions.

Before we keep -- before we begin, keep in mind our discussions will contain predictions, expectations and forward-looking statements. Actual results in the future may be materially different than those discussed here. This could be due to a variety of factors. Listeners should refer to the discussion of those factors in the company's Form 10-Q and other filings with the SEC.

During this conference call, we will refer to non-GAAP measures we call our core earnings and adjusted core earnings. Descriptions of these measures, a full reconciliation to GAAP measures and our GAAP results can be found in the Form 10-Q for the quarter ended September 30, 2019. This is posted along with the earnings press release on the Investors page at

Thank you. I'll now turn the call over to Ray.

Raymond Quinlan

Okay. Thanks, Brian, and thank you all for your attention this morning. It's a pleasure to talk to you about the results of our quarter and about our franchise more generally. And I want to take a couple of minutes upfront to level set on some things associated with the franchise, especially the backdrop of how successful investment in college is for most Americans. And college and a lifelong learning have continued to expand in our country and they create opportunity. People have greater mobility, they have greater chances for economic and even personal success, including health. Those with a bachelor's degree earn 65% more than those with a high school diploma, and that delta has increased significantly over the last 25 years.

We do an independent research on overall borrowing for -- our overall attendance and borrowing college students in our annually published How America Pays for College, and families continue to value college and higher education more generally, with 90% seeing it as a good investment in the student's future, 84% believe that their student in their family will earn more money and 77% are willing to give up other items in their financial plan in order to devote this money to the investment in the next generation.

And despite all these benefits, it's still -- we should remember that only about one-third of the next generation of Americans are on a track to have a bachelor's degree. And so we're seeing, in our franchise, alternative mechanisms that people are using to increase their human capital. And at this point, 20% of our originations are different from the traditional undergraduate student loan in either parent,