SLM (SLM) 22 Jul 212021 Q2 Earnings call transcript

Thank you for standing by, and welcome to the 2021 Q2 Sallie Mae’s Earnings Call. At this time, all participants are in a listen-only mode. After the speakers presentation there will be question and answer session. [Operator Instructions] I would now like to hand the conference over to your speaker today, Brian Cronin, Vice President of Investor Relations. Please go ahead.

Julian. you, Thank welcome call. and Mae's quarter second Good to earnings XXXX morning, Sallie It's with here CEO; be my to pleasure today McGarry, CFO. and our Jon Steven our Witter, for will After remarks, open questions. up the we the prepared call

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

For on Sallie factors our others, conditions among pandemic of impact results flows. the financial operations, potential Mae, these business, and/or COVID-XX of the cash include,

ended non-GAAP A reconciliation the results core the measures we conference this is for our John. measures This in During call June over description a the full XXXX. our to Form earnings. core to earnings, to GAAP at page turn be Investors found GAAP press the earnings and I'll the call, we can salliemae.com. Thank refer call quarter of our XX-Q now XX, you. with release, along posted, on will

good today Thank Sallie morning, you, for joining you us thank Julian, second quarter Brian, for and of discussion results. a everybody. Mae's XXXX

results a return to continuing quarter of the and reflect they success welcome second are Our continuation QX, normalcy. a think we had I in

We are executing and our strategy results. strong delivering

today to we're in with away us reopen, students for continues encouraged around hope they and As to I messages. key you the as campus the world return by for the three universities fall. physically walk implications

delivered strong we've results First, quarter. the second in

as to our our second quarter XXXX this by of performance continue well third, a against was the GAAP our we're loss And ago $X.XX executing the expected. we're executing to year in compared $X.XX capital in quarter. imperatives. trend year return strategic EPS core program Second, positioned

economic the performance strong driven in continued a and combination improvements outlook. were by of results business Our

Let education million, of the our business XXXX. or discussion Private were me $XXX is start which $XX XQ performance. for million originations quarter over loan up with a second X%

through Our originations on quarter. are right the second forecast

share higher which of QX Originations with the to data reflects of which XX%, X% quality was available, recent first past in Our was compared was market XXXX. XXXX, the years. quarter consistent most

Our fully cosigner second XXXX, due QX levels. of important to XXX versus FICO to our expect in year was XX% that, rates students, quarter seasonally, mix was rate finish nontraditional cosigner lower cosigner the QX compared XX% has we our rates of of to in a score and and to at XXXX. XXX average It's historical note higher the

the line cohorts. recent vintage as second entered the and well fourth of This in that performing XXXX. from the important previous quarter Our of a highlight pandemic. are to quarter emerge we X.XX% charge-offs loan be second in they the to in cohort graduate P&I year the credit reflect annualized performance the first quarter quarter is year. with were education as net of compared the the X.XX% continues of past the Private especially for Charge-offs in

CECL we Our economic improving side perspective shortly. modestly, continued expectations charge-off credit quarter positively outperformance outlook The resulted on but relatively CECL and from that reserves. will the impacted improved a in estimates quiet has was our and discuss loss

in new commitments We season. reserves made generally quarters the originations. and peak CECL because of during also saw reflecting increase an higher three, reserves two in trend

for to build we was which reserves caused to no quarter these fall very book were XX $XX.XX. Steve commitments under This against an a our plan we in quarter, return capital price more detail. exception, shares the began of will discuss million at XXbX-X us average quarterly in specifics continued loans. new the quarter to the change second early of semester, repurchased progress strategy. In where the the our

reduced reduced of at XX% average by and shares an have price average XX% shares outstanding since of $XX.XX. we We $XX.XX, an by XXXX, outstanding the price at XXXX, X, since January the January X,

June from As the million XX, XXX billion share granted. repurchase we authority $X.XX remaining XXXX, original have of

make billion expect repurchase We of and the throughout financial still while of this in progress highlights significant for of against believe the year. the price regulatory of scheduled half The to fourth we Steve loan remain selling this Steve? proceeds while continue to and the next quarter. the we phasing year. of will to our strategy take second is you the authority are remaining effects $X We through undervalued is committed the using CECL. to capital loans quarter stock sale now

Good John. everyone. you, morning, Thank

will this is the a and comments my quarter, keep point. I to brief straightforward relatively As

portfolio, of a receivable start The of accrued total the allowance and the or unfunded $X.X student loss Let's with loan $X.X education commitments loan loan reserve discussion exposure, and our interest but under loan $X.X provision. also sheet X% private billion of our of includes only CECL, not on-balance another billion was billion. which,

in Our but from is ago portfolio the reserve X.X% X.X% down the of significantly quarter. quarter, at year from prior unchanged our X.X% in

at contributors used to quarter the major calculate each highlighted look our we since which implemented. we've now CECL Let's reserve,

first improvement SX was the First, XX%, between XX%, QX base modest forecast weightings and the in slight resulting forecast used SX, in economic second and XX%, needs. We and in reserving QX, in improvement quarter and Moody's XXXX. weighted a There respectively. both of

year was just each this using there XX% say, base outlook as much SX year-over-year. year. year-over-year significant ago course, resulted and improvement improvement to And we weighted sharp so economic the were prior of the in in dire needless a However, was

QX prepay Turning quarter. in increase prior an were reserving from to needs in the speeds. QX, immaterial our compared slightly slower resulting They to in

seen. ago, However, prepay significantly speeds were the a sharp to year than higher we've also improvement that contributing

commitments. Turning new to

quarter. for provision majority in the We second our increase the our unfunded million vast unchanged quarter. season, The ago to quarter loan are the now commitments relatively of increased quarter loss days year $XXX accounted prior the in from lending are of and commitments peak compared early in first the and from the

was Finally, a XXXX. loan the the in sales, to obviously, loan described overlays including natural The reserve million provision factors, here to factors in these private $XX.X of loan and discounted immaterial our sales our the resulted reserve, student of credit accretion activity quarter in in very portfolio. addition the here, light and second of other impact for losses

investor Jon QX and Let's be down delinquent education which of of our of now a XX-plus Private from Page bit loans to repay, quarter. metrics, days year the presentation. X loans were found to XXXX little and closer an credit take a can already the flat in X.X% look X.X% on QX's in quarter. we given ago in improvement X.X% as came year from we talked improvement has expected from seeing. the a X%, charge-off the sharp positive forbearance in loans have education are Private the ago about improvement trends is at economic seen. This

to that been delinquencies support were expected deteriorate charge-offs programs. and as have our cautioning ended We investors pandemic we

expected ago. represents we you half guidance. X.X%, be continued now a based in second the However, from months meaningful strong charge-offs We expect year, on implies the our outlook for full net performance, defaults, charge-offs in we and under of just this just what the our three higher as to reduce expecting were which saw improvement for did year

eye course, our federal other keeping the forbearance are, and portfolio. the an of We holiday the of programs end impact federal on loan on of student

they're consumers consumption rate and likely savings reduce going continue savings the consumption and at, at forward. with high their that the believe are economists to credit to However, service levels responsibilities and

Finally, on expected the I our credit performance. we believe outcome well we just are will say reserved for

our was assets which QX, on The interest margin, reported prior the quarter. and net Let's from the X.X% look was year ago at in deck. investor X margin of interest up on the Page quarter net

and our balances have down. We repurchases continue deposits to capital share liquidity excess deploy excess through and managed

continue prior the brief our second second about year quarter. comments NIM X% student operating while half ago business from the million addition, Both on course. of our will year to result declined contributed year NIM for deposit line in the rates with the last $XXX expenses. in over quarter year, the of of a yields X.XX% is more X%. asset and the the in Operating increase, expect NIM They couple in for million to the core expansion full at XXXX year. quarter, as In our continued have X.XX% in full factors came come to ago in become loan That year. quarter, of in A expenses loan increased at million compared $XXX $XXX of serviced we

X%. Our serviced increased

focus is paying of our Our clearly off. the improving on efficiency operation

came reporting quarter in are of and was end the we've total also strong positions total capital CETX ended loan XX.X% and GAAP second very And assets. liquidity plus strong. reserves, We with XX% liquidity XX%. CECL, loss which capital been risk-based of quarter, the our equity of at Post the a XX.X%. at Finally,

and terms us to and to loan of Our reserves, return loss business you, solid remains our balance capital to sheet to shareholders. in positioning John. Back well grow liquidity, capital continue

Steve, thanks.

Let outlook. brief up of the broader environment with our me and description wrap a

stance it As thoughtful peak early Steve plans. vaccination to schools strategies aggressive by stages is encouraged on the reopening while are we're mentioned, really we early from And any in we of season. too their very draw our and conclusions, hear the

always fall. reopen manage and will pandemic continue a as the the risk, schools pose normal While and confident innovate in to we're variants well largely will

only to residential to XXXX remains the support trend than this model, the is for will direction. to continues first strong a hybrid The their successfully. XXXX. to borrowers at to unemployment expect lower federal X% attendance. XX, families for in X.X% have believe exactly borrowers' The of and looking are normalcy college loan Unemployment, a be second to unemployment quarter expect These they online. XX% reported national college current payment September and for a normal rebound XXXX. through Federal rate. those graduate impact and X.X% our our was This X.X% factors fact, that of In We positive compared continues with loans their the quarter schools in least of returning positively Government to relief what notably service are model ability with to expect student especially continue state education, a in a students fully residential XX% average

On is It rapidly and assistance. to on to propose the focus the has helping beyond. increase education. coalesced of up who encouraging for telegrams students achieve table community filling on is dream proposals political the that lower-income assist appropriately and the be higher and of appears that perhaps front, on need practical The free process college to those political the agenda remainder offer legislative the year the most families the

in new faster tool, search college we'll We Earlier out which, to college, are year, higher year, of value roll for to see found to families further tool education, summer more families and covering targeted in the we edition the How our a tools and these products enhance we pay this scholarship return to the earn little confidence released their this know in form underscores as having of eagerness scholarship as costs. as pandemic. Report, proposals a scholarships. students College in and $XX completed couple also X we'll appeal inspiring America will Pays and complementary to such families the plan marketplace. while And for a the brand XX,XXX continue position a of minutes, our and which last helped we to for complete plan FAFSA XXth introducing post million for applied help belief business. broaden In to campus These that fewer and response, report continue our XXXX, products family's we the be to that actually

strengthened to have of repurchase. bottom line and Therefore, reaffirm core enhance the continue update XXXX guidance. we opportunities to like will share business performance, we further believe through to over which be top performance We the and our obsess would and

There are per $X.XX. diluted to $X.XX -- to our previous this that increase raising two range from We original led to of main share X.XX% were from our components range the GAAP range. in our earnings $X.XX to

increase strong First was This remainder the the $X.XX credit is the The outlook million $X.XX due represents gain our year. additional increase. and securities. of of the the result of for valuation approximately certain in to nonmarketable related guidance changes to a of $XX performance approximate

We continue borrowers future. from the our an to credit improved performance outlook and see strong on in

the loan X% of previous hope from originating to continue well. total between education The million will continues a we quarter, end improve call expense our our to proud stock expenses future. our We're of loan share are at results along and noninterest $XXX of including for private of controlling our origination gaining rest expect $XXX perform open is between I don't we range unchanged franchise. our million. sacrificing buying macroeconomic quarter Steve, of down we with to million Credit and X% am result, back We're remain discount our believe a work, guidance high-quality prices last $XXX to million, growth environment. to $XXX and you our value. is In quality that core to from charge-offs be million net same market million. some the solid the $XXX and without put And to year-over-year time. conclusion, and our at which loans to at to excited portfolio $XXX finally, the agree continues that, another business With intrinsic up why for XXXX questions? I As report we capital

comes Your first line the question Suisse. Instructions] of [Operator Orenbuch Credit Moshe from from

open. is line Your

think for quarter it? make often investors get sale the more into got favorable any sales whether you fourth loan XXXX capital billion in particular the where early you've like how you've I that we sale now and Obviously, do is go redeploying numbers on both or the what to about return. given do as with and -- how less success how those question forward, you've are? we fourth are The period, we those you gotten results. than in or would $X most But that think quarter, it's proceeds gain reiterated Excellent those enormous margins had and about from

not to how morning. offered your appreciate let about for about by it's little and but XXXX talk start to we've I return, a John. happy bit question, time think guidance and Moshe, saying you this capital thanks Yes, specific Thanks, me your for on it. Look, we

strategy is demonstrated hope capital I months, the last long will of our over as I sort we've are that I CEO, committed absolutely be think as notion and CFO, front First allocation in overall returns. long and all, the XX to capital something it's of and think important Steve note, to and overall this that's center approach. I'm of And and as as our we

that stock right because talked about opportunistic arbitrage between do think we've that now this us As time buy premium back loan before, for and to time shares really of sale exists really the prevailing we price. is this a period current

thing that selling to and think others -- has a with so for is I medium view have the us should the Obviously, or each a do. back aggressively exist approval will buying expect way. step And the to to you and that should of at we that continue be term, loans stock for good full our Board along

talked buyback I billion we've we like expect not did year, $X the sold this think less I we billion of think, always-on doing fact a active expect I that, very XXbX-X next the $X where, as what to that it the this look our year. should similar a to loans to majority what loans, you using to approach vast XXXX, do would so in remains I always-on approach in year. with the continue than sell programmatic we expect to and of more is to and we X shares of to did plan. we're about sort similar And approximately be -- today we're bit it little our us think if situation to

ability I think not our us the for limiter sell real to loans. is

And to. really the I in nice could those certainly we as for a we've appetite seen sell think we more if wanted think assets. loans I there's past

only of the that sort good capital returns about also you back And execution deciding to to allocator you capital us and being capital is being a disciplined you pay that of think shares. ability the I really and real of not work is buying part on from, get put price what how away but work. take the want to you the capital putting

price think but to underlying of there don't absolutely of intrinsic be want are approach want stock think the marketplace, true the sort take arbitrage. when work that We little of think so to terms judgment is, artificially we I value our and we on the always price company, active to will want little advantage So the the of sort don't in distorting and chase the in reached up. sort be in to market bit supporting a of taking productively limit put can of what we of bit I the a the underlying And art we that in this marketplace. of stock of we we've

My My think to the our capital repurchases is should focused I on and become share, strategy return, capital forward. thought begins share other the hallmark But longer going focused evolve. expect, term the will forms over guess this hopefully, I what final is, will likely capital dividends. for would be I the level slightly on the narrow. more of stock as, to exact arbitrage you regardless form of become of should that Moshe, a example, is we price expect time, we going return, guess increases you return it's we'll less during and that slightly think of do

just about would kind of that Great. I gotten response does within financial a enhance, program I've of that And guess, the company. that, add positive I lot discipline the

Just a as quick follow-up.

the mentioned You guidance.

incredibly really certainly galvanize we've team, of somewhat takes program I just a I on talk lots of as shareholder share value sorry, tangible that I it return strong the nebulous a practical to agree. capital you, you've management that and value a in gotten management and the ways teams seen perspectives totally creation notion creation interrupt and having focus makes Moshe, I about I'm mean here. think

lower increase credit a guidance that chunk about Yes. of expectations is losses. in significant yet for talked Is build also I in would your certainly loss agree. losses? Like do how change you've it in expectations? With to the the the require think the respect big the $X.XX big guidance half and to the a independent your increase, strong those reduction reserve about that we second relative issue of originations

Sure, Moshe.

number CECL parts. is Steve So the reserve a a of moving here. Look, of has this preparation

absolutely of our is was the better, reduction on perform remind you overlays seeing our their guidance $X.XX, already a continue OpEx we've XXXX. that in to with for for -- increased from one that, really charge-off X credit prepared that there significant $X.XX pieces, around a remaining So probability that at going loans, in our We We year and once are will remarks. to I recalibrated borrowers well And cents to so of bit The the offsetting couple one guidance to that to the model, net interest service surprised all we're $X of as a two deal reserve The default based lowering the perfectly many of -- I we do which my But from another. you'd many, now, I'm of and related how year. and a almost OpEx, income, the CECL be do sorry, our those as rest referred in little better quarter moving think we'll our the time. we $X.XX bit example, basically cetera. increase. an full a offset there pieces removed comes year et a big company, little offsetting

how the So is and pleased very very company. excited here unfolding the we're at year with

KBW. from from Your Sakhrani next question Sanjay

Your line is open.

in is for This Kwok Steven at Sanjay. filling

seeing type I have marketplace -- today? question guys question of you first are loan on a on is in sales. the What following the up just The round yields Moshe's

our the Yes, we for own paper our own I and marketplace have mean, been in deals. Steven, thanks. not look, obviously,

we're right comment sort the more people of on So that. broadly probably to not

market recent is Obviously, we would continue movements that optimistic the I helpful. the rate good I be say think sales. interest what loan for to is, are

spreads. keep widening to me note useful fully credit it's by that were think they Steve, of not honest a I offset,

our think, as we to pricing And in plans. so that view generally I movement general, positive

to truth and done, positive. sort recent of different is, think the be some other among I the sales. transactions. matter on perfectly predict actual think get disclosed is actually what auction premiums of to until I have found results, financing the eventual hard securitization into with and buyers this, of that dealing you it the And the we see We But actually loan and until be have we've until the market, will you're but similar, the you the think pricing I

more mentioned share from points landscape, following just around the the increased just landscape? room XX%. competitive to about then market increase could And talk there? you by to much How and your X is If percentage up there you

question. a players, going another share think I there's Yes. Look, answer be to the great it's mean market never of XXX% XX opportunity flip But there. is, percentage improve we're Steven. I points obviously, to

think end of the a of day, generally call modest what at sort in would seeing the is, I I competitive are competitive, marketplace positive but we dynamic. the

customer would product We the of in new would have are or sort not seeing features the that are respond industry's that to, maybe to we introduce sort massive we people think best not interest. of

yet not around really irrational seems sort course, small and think grid to are but raise large returns our underlying eyebrow any expected a the assets. fine seeing little Everyone, on pricing places to of to returns credit degree. be relative their and I of pricing pretty pricing decisions We we rational tunes some pricing -- where their are there bit,

see think not we that's competitive the marketing, unique I especially pretty lending. space, intensity but student direct-to-consumer in to strong do

everyone retrenchment. growth I'm vacuum aspirations business in in pandemic. created is sure I their buying kind frisky of general, also BXC little I by a people the bit upping for as Wells' any business, seeing And the direct-to-consumer we're coming space now, are think, our of competition the the in with right think, out

kind forward. competitive the it of experienced going environment, think general like and I So competitive I moderately much but of we would what describe competitive, of sort as sort have

I the and our I return the even think care our loans. point the investment last volume and making though, is, that the executive that on market about lot make a committee, we're in share. about more would and of on various and profitability rest we I this Steve care about

and the cost about to the do and real service growth. the market it's attractive general rather what have on chase or than have share be and we there share be I real very whether loans see we limits market will discipline on would retain market to lower pricing we have that So greater. acquire side are to side and slightly cost our side, ROEs share the And slightly

So we'll discipline. that continue to exercise

I kind I indicator health of doing our If think great like market things investment business, the share it the do of focus of discipline. feel quarter-to-quarter. not I is on the we're much a and as showing right but right

Thank you so much.

question from Barclays. Ma next Your Terry from

Your line is open.

on you maybe you some September? of color Can end expect payment just type trend the holidays give once the in delinquency

to do Happy Sure. that.

So then we I that of by indicated that year think do X% last from predictions could the trip missed just charge-offs charge-offs the fortunately. few should the trend of and higher sort probably by for mark the the end there rest my then way, and under stabilize lower. the fourth with we But quarter last level the of -- at kind on the quarter. the And downside, couple

Got it. That's helpful.

drove you it between like the for just as couple of expecting about delta credit mentioned, expectations were potential outperform? So you just and Can outperformed what you to talk to what maybe over quarters. your continue the the last

of So I And have And consumers drove well. pretty consumer. the think health -- been Federal were delta continue economy on loan strong. very pessimistic the what perform federal to here the is obviously, super very, support we programs is enormous. too the really

et As are you higher, know, savings cetera, cetera. et rates

have rates in what etc call so to obligations, indication continues and delinquency impressed perform what buckets, is our to consumer of very and low we continue performance we strong been and expecting favorably two by well on we're point their in it quarters. see So very last the over all terms the

question John Your from from Jeffries. next Hecht

Your line open. is

-- be a private York was interpreted about loans provision process. that are requirements? a how Just distinct just ruled or real in is, New of and see in kind kind with you does had your there of earlier it I just does is student guys you judge a this question anything to recently change allowable think, consistent bankruptcy I was, discharged what --

any John, stab take to see at Yes, first color. wants additional then if add me let that, John a I'll and

it's portfolio at originating that I think point by direct-to-consumer decision are all. remiss was student troubled portfolio, that not our loan. the college if are the believe I that so not our troubling is out that. any did and bankruptcy, with you for -- would bureau to a XXX bankruptcy score score, to XX% would declare well-developed to is to cosigner certified way we cosigner, borrower and for the decide than that, to? I bankruptcy highly our like basically the I We we would need John, do anything not a it that typical see impact, and cosigned. very typical by And And different and FICO was be loans was have don't credit us. to both a in unlikely

I the specific well. you question Steve, think really answered

bankruptcy would an there. reasonable as financial kind to borrowers solutions their of a program gotten there by some a and customers of absolutely the a out think very said -- out is are reform education on the the sort some we've head the in are over who I couple add and back part I only of We package. appreciate only this whom have we times, federal the there, general point path There bankruptcy of really that John, are any really is, broader disproportionately supportive of life. notion way, of for

view bankruptcy I think there be our only period on seasoning some to is post-graduation. has reasonable

with customers a You think But And to we declare their being a create to graduation bankruptcy make we're success it's be of We products. of will successful. that to when loan. at the as successful of as take all view customers rates, think the you think on, centered customers issuing our We believe us these and I highly is day, really are of the very reinforce this business. of At loans rates, their sure with accretive we customers great to to again, way when day opportunity our repay. the an clearing through programs for which, majority the incentive have end we life we vast strong for thoughtful lot student help enough, to our think underwrite be and underlying of you able I our there their their can't reform, bankruptcy products. don't our at default strong after I want loss care folks performance look look credit the We debts.

is And and something could eye right. versions of certainly there to so But industry. again, are incentives reform keep the that detrimental an create we is bankruptcy that are, Steve I it think, on, exactly

I was think and particular deminimis us. very impact to on this basically ruling narrow no

there. very context All right. That's appreciate helpful. the I

-- pandemic When in. just Second, I one. for set apologize right? we through the I this went CECL adjustments,

unfunded modeling? that a about provision Or of normalize the bit CECL just seasonality of out always we've -- change been this the quarter, adjustment, new kind I provision, It's sure, Steve, think to should would guys that's the just for how more and noticeable make something how started we you through is want is of done? and because commitments that little gone something to the to you've So that pandemic? is

more you a We'd the now. pattern you're help of a you be need -- not John, great discern there one right. slide that do impact, to new to your tries to of reserving happy seasonal it the It send for analysts liabilities. help copy to and in do is that seasonal CECL. is modeling And to we our packages CECL, now to contingent to in that. investor that a Prior did were efforts. We Brian in

Wedbush. is Henry Next from from question Coffey

open. Your line is

my to add the congrats Yes. And Great discussion. me let quarter.

like product other and challenge. new of a front, you've a framework developing the card, a internally? programs products of terms one that more should got and where doing search With a has thing got it then developing at really, could coming you're a things history been vendor? Is what the of well credit it line something really scholarship Maybe and layering likely tell from? known us, least new on there is the down us give expect in you're you we out, is coming On

and Jon, good a Yes, important Henry, think And strategic it's it's thanks. really I conversation.

any saying without Let me by start confusion. hopefully

an affinity a in that products one are are bought. Count as business to of make not with are to have Customers or sort cross call how a to of credible diversification's believes not indiscriminate a they customers, product We They me will sort and I to -- what see as have of to Mae. Sallie have the They not us do to have our of provider for sold cross fan experienced I broad context have sake. diversification am sense they've that the brand. reason wanting of for them to has us. to product who

of to before starts certain sort internally with before talked stage. about clearly lot earnest a talking that there's the is within or certain is And of generally of we're internally strategically, credibility zone, said that is; to a higher or have go years might anyone; that have where sort by that refer it credible. within a as being what X cycle, or a customers are Henry, And part us this what in we journey of their adulting range, and as and of refer that I lot In not student of think highly that of lot college, ZIP sort So diversification. this life two, we customer-centric have Mae to and thereafter context, launching notion we've to about, code tends of for families. number met And we a a to needs extend example. they what starts we students a a, their the Sallie very education to range play in today years X their brand

be customers and those three, would Our in brand the services offer. needs; interested is to that we highly and credible in very have products meeting would

you customers And buy we have examples make should To that are specific an things. pride we I existing one, How of think the couple we a there. that will have we we of needs that's smartly, customer versus certainly arrangement fast-tool advantage. start we base, believe your along are to much spaces. license of because in the we about leveraging the and authorship. cycle think life think building finder, existing Number brand journey. the have scholarship really And expect no how focused good do we best versus our reason those I through certainly, that leveraging on think So be build question, I do our can. credible what products is services very can those I

build If authorship. all pride on expect, of should better, can tools of If we we that can will no Mae. predominantly The absolutely though, team will. those be they Our we we Sallie some absolutely has partner tools, thing will. those you is branded

are help build their partners our interested to build those interested using business. in appropriate in someone not much where We leveraging We're our position else market very to partnerships business. help

our brand else, enough making just business I expectation the and strong do good even or news customer do and nothing in to lower capital get of to you is expect and Henry, the the loyalty, but and really the partner else, where is, paid these revenue enough kind some the efficient think increase Sallie in a our and grow and with the we use and these we should if be deminimis look the expect position thing, and will they is that with Mae they we if you but benefits, ways. borrowers, not, is But lines And oriented. whether think for to mature of are of keeping very different number commitment second we're should that our point nothing investment these independent they that become for much cost on our feel My strengthen acquisition that hope nice allocation. our business in and to So of businesses core based core us. a investments

should different good will in paid about but think get them, I ways. feel answer is a will we expect that and blend, we So the you it be

of being about as more SPAC, direct they're they of out part terms is were talk XX%? heard suite along maybe other public near-term there profitability, lending? they that just you a did acquired they to anything Have Or it by a the market. SoFi plans lines when the of -- hoping Based loan now accomplish? It's more is part the into on things to not worried in aggressive student but they're student company. that be in their gave is the about the of guidance the XX pushing

person best SoFi's Yes. the probably to overall Henry, on comment strategy. not I'm

is, getting think seen years I business. into what a in I the to the student talk we have lending over say lot about of willing and general be players coming would

there's been a more general, companies that. been successful that in lot been think, in that have been I in unsuccessful, unsuccessful have fewer than meaning there have doing

we though take think don't for granted. that I

As We comes to take me going leader, our anyone all. focus aware core to performance And why about business, at to they're want of the just business. get looking from don't keenly that share of is fact heard XX if distracted for be us. into market that the we talk maniacal share the this are you've months on

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out look in morning Mae. performance Sallie We interest Great. questions, Well, talk free folks, And quarter obviously, the to we for look where throughout thank please quarter, to any to forward this to these continuing your listen, have company. you to you, reach and forward again the continue about if feel discussions Brian. the everyone, of next

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available your are John, Investors and page the you today. you, thank questions time A on for presentation at call replay and Thank and the this salliemae.com. of your

questions, contact if you. Thank Jon This directly. you please As said, me further have any concludes call. today's

our conclude Thank for today. participating. conference you That does for

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