Q2 2022 SLM Corp Earnings Call
The conference will begin shortly to raise your hand during Q&A you can dial star one one.
[music].
Okay.
Good day, and thank you for standing by and welcome to the second quarter Sallie Mae earnings call. At this time all participants are in a listen only mode. After the speaker's presentation. There will be a question and answer session to ask a question during that session you will need to press star one one on your tell.
The phone please be advised that today's conference is being recorded.
Now I'd like to hand, the conference over to your Speaker today, Brian Cronin Vice President of Investor Relations. Please go ahead.
Thank you Carmen and good morning, and welcome to Sallie Mae's second quarter 2022 earnings call. It's my pleasure to be here today with John Winter, our CEO and Steve Mcgarry, our CFO . After the prepared remarks, we will open up the call for questions.
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 on the Companys Form 10-Q, and other filings with the SEC.
Sallie Mae. These factors include among others the protests.
It'll impact that the COVID-19 pandemic on our business results of operations financial conditions and or cash flows.
During this conference call, we will refer to non-GAAP measures, we call our core earnings.
Friction of core earnings a full reconciliation to GAAP measures and our GAAP results can be found in our Form 10-Q for the quarter ended June 32022. This is posted along with the earnings press release on the Investor page at <unk> Dot Com. Thank you I'll now turn the call over to John.
Thank you Carmen and Brian Good morning, everyone and thank you for joining us to discuss Sallie Mae's second quarter results.
I hope you'll take away three key messages today.
We delivered strong results for the second quarter and first half of the year.
Includes the continued successful execution of our loan sale and share buyback program.
We are seeing some real positives throughout our business with regard to college enrollment originations consolidations and expenses.
Third despite these positives we are not immune to this challenging and volatile environment.
Decline in the EPS guidance announced in our press release is driven by an expectation of lower loan sale premiums due to higher rates and wider spreads and.
And separately the impact of certain credit pressures that we believe will be largely isolated.
To 2022.
Let's begin with the quarter's results.
GAAP diluted EPS in the second quarter of 2022 was $1 29, compared to 44 cents in the year ago quarter.
In April we sold 2 billion in loans at a premium of approximately 11, 5%.
You will remember that we accelerated the sale of the second billion of loans as a risk Medicare given early signs of market volatility.
In the second quarter, the company repurchased 20 million shares we have reduced the shares outstanding since January one of 2022 by 11%.
And by 42% since January of 2020 at an average price of $15 41 sites.
Private education loan originations for the second quarter of 2022 or $616 million.
Which is up 16% over the second quarter of 2021.
A strong start to our 2022 peak season and is tracking better than our initial guidance for the year.
Following two years of declining faster.
<unk> numbers the high school class of 2022 has returned to near pre pandemic levels with 52, 1% of the senior class completing the application.
We are seeing strong underclassmen application breadth.
During the first half of the year, our underclass application volume was up 16, 6% over the first half of 2021.
These growth trends are continuing as peak season ramps up in July <unk>.
Freshmen and sophomores are more valuable in terms of lifetime value and serialization potential.
They are at the beginning of their education journey.
Credit quality of originations was consistent with past years, our cosigner rates for Q2 of 2022 was 74% down slightly from 76% in the second quarter of 2021.
Average FICO score for Q2 of 2022 was 746 versus <unk> 50 in Q2 of 2021.
Seasonally the second quarter has our lower cosigner rates due to the higher mix of non traditional students and we expect our cosigner rates to finish in line with past annual levels.
Consolidation show signs of slowing.
In June of 2022 versus June of 2021, we saw refi volume dropped from our two largest refi competitors by 60% and 37% respectively.
Monthly consolidation volume June of 'twenty, two over June of 'twenty, one was down 21% Steve.
Steve will now take you through some additional financial highlights of the quarter, Steve. Thank you John .
Everybody will start where we usually do with a discussion of the components of our loan loss allowance and provision.
The private education loan reserve was at $1.19 billion or five 4% of our total student loan exposure.
Which recall under Cecil includes the on balance sheet portfolio, plus the accrued interest receivable of $1 $2 billion in unfunded loan commitments of 1.4 billion. Our reserve rate was up slightly from five 3% in both the prior and year ago quarter.
Yes.
Take a look at the major variables used to calculate our allowance for credit losses, we continue to use Moody's base S. One domestically forecasts.
Weighted 40%, 30%, 38% respectively.
We expect to use this mix going forward, except for an extraordinary periods of uncertainty.
There were no changes in model inputs, such as prepayment speeds or other important drivers loans.
Loan sales in the quarter reduced the allowance by $116 million.
While the second quarter is not a large disbursed one quarter, we do begin to book commitments with the new academic year I mentioned, the $1 4 billion in commitments and we reserve accordingly.
Provision for new one funded commitments totaled $120 million in the second quarter.
All in we booked a provision for credit losses of $31 million on our income statement in the quarter.
Our reserve and our outlook covers all of the topics we will discuss this morning.
Private education loans delinquent 30, plus days came in at three 7% of loans in repayment up from three 5% in Q1 'twenty two.
Two 1% in the year ago quarter we.
We expect 30, plus day delinquencies to drop into Q3.
And the full year near 3%.
Private education loans in forbearance were one 3% at the end of the quarter.
Down from one 4% at the end of Q1 2022.
3%, a year ago quarter, which you may recall, we have not yet implemented our forbearance policy changes.
In the quarter net charge offs for private education loans were 95 five.
$5 million, resulting in an annualized charge off rate of two.
6%, which exceeded the forecast of 2.25% we provided in April .
Based on our current.
Performance of our portfolio, we now expect charge offs for private education loans will remain steady at this higher level in Q3 and decline in Q4 <unk>.
John is going to provide.
On current charge offs as well as our outlook in just a few minutes.
NIM for the quarter came in at a strong 529% up significantly from four 7% in the year ago quarter, our portfolio benefited from a rising rate environment.
In addition, the drag on our NIM from our liquidity portfolio declined meaningfully as we invest our cash in the medium term treasuries as interest rates have risen over the last several quarters we.
We do expect I remember will remain in the low 5% percentage rate for the full year of 2022.
Second quarter operating expenses were $132 million.
Unchanged from the prior quarter and $128 million in the year ago quarter.
Opex in our core business increased just 5%, while we experienced 16% increase in disbursements and a 19% increase in applications being processed. These are key drivers of expense and highlight the fact that we continue to focus.
On driving servicing and acquisition costs lower.
On a unit basis.
Finally, our liquidity and capital positions are very strong we ended the quarter with liquidity of 23% with total assets.
At the end of the second quarter total risk base capital was at 15, 6% and common equity tier one came in at 14%.
We believe we continue to be well positioned to grow our business and return capital to shareholders going forward.
Back to you John Thanks, Dave.
As I mentioned earlier, we see many positives in our business. After several years of unusual trends caused by the pandemic. It appears that the college marketplace is finding its new normal however.
However, the issue likely most on your mind is our change in guidance and whether it reflects on the long term prospects of the company. Let me start that conversation with some initial perspectives, but we wanted to make sure we get to all of your questions. So ill be as brief as possible.
We have increased our full year net charge off guidance to $325 million to $345 million from the previous range of $270 million to $290 million. This brings our expected charge off rate for the full year to two 3% compared to our prior expectation of 175% for the.
Full year.
There are three principal factors that have influenced our estimates of future charge offs. The first impact is a change in the expected performance of our gap year population.
While we have talked about this during past calls and disclosures, let me provide some brief context.
Every year, we have a portion of students who withdraw from school without graduating I'll call the annual withdrawal population.
Typically the annual withdraw population enters their P&I phase after 180 days of Grace.
Unfortunately, historically, among our worst performing cohorts of borrowers.
In some respects 2022 is no different in this regard we have a group of withdrawn students who did not return to school last year entered P&I last November and are beginning their journey through repayment and in certain cases delinquency.
What is different this year.
We effectively have what you could think of as a second annual withdraw population that entered P&I at about the same time.
This group that we have referred to on our previous calls and in our disclosures as R. Gap year population withdrew from school during the pandemic specifically from August to December of 2020, and did not return by the fall of 2021.
Under normal conditions. This group would have entered P&I in early 2021.
However, during the pandemic, we were concerned that students by temporarily withdraw from school for longer than normal given all of the disruption and uncertainty on campus.
If this happened and they entered P&I.
One of <unk> many of their students and transition benefits to avoid that outcome. We created a temporary program to protect customers student benefits that effectively extended the grace period for customers as such this gap year group did not enter repayment until.
Q4 of 2021 or slightly later.
While the 2021 charge off performance was not burdened by an annual withdraw population 2022 is effectively being burdened by kit.
There are several important fact to note about this population first it has a finite population. This program is over and we will not be repeated second all of these customers are now in P&I.
Third as I have mentioned before this gap Eurogroup has approximately doubled the effective size of the group are withdrawn students who recently entered P&I.
Now that a critical mass of these students are well into their P&I, Germany, we can assess actual payment behavior and journey to charge offs.
Based on the data from the last few months, we understand that this gap year cohort is performing meaningfully worse than a typical withdrawn student population.
As an example, a gap year student who entered P&I earlier are demonstrating an average 30 day plus delinquency rate that is 173% higher than that of non-GAAP year borrowers who withdrew from small in 2021.
This gap year population represents $50 million of our expected net charge offs next year.
This is over and above the charge offs, we expect from this year's typical annual withdraw population.
It is worth noting that this years annual withdraw population that typical population is demonstrating performance in line with past vintages and expectations.
Given these unique circumstances and that's finite population, we do not believe that this gap year effect will repeat itself in 2023 and beyond.
The second factor impacting the portfolio. This year are the significant changes we made to our credit administration and collection practices over the course of 2021.
Again as discussed on numerous calls and detailed in our disclosures the changes significantly reduced the amount of forbearance borrowers can utilize as you can see one 3% of our loans used forbearance in the second quarter compared to 3% in the year ago quarter.
You will also remember that as we implement these changes we built an incremental reserve in anticipation of higher expected lifetime losses.
What has changed this quarter however is that we.
See what we believe is an increase in the number of customers who have exhausted their forbearance benefits and other options and are moving to charge off faster than expected.
At this time this appears to be more of a phasing effect and something that would meaningfully increase our expected lifetime loss calculations for this program.
To support this when we look at resolution rate trends payment trends and the use of other programs. It appears that most borrowers are finding other paths to success, even with a curtailed forbearance program.
Finally at the end of 2021, a combination of attrition and slower than normal hiring challenged us to fully staff our collection shop to plan.
We then encountered at the higher than expected volume, especially entering our early stage collection buckets, resulting from the gap year and forbearance factors I just described.
We believe we are well on our way to correcting the situation, we have hired meaningful numbers of collectors during Q1, and Q2 and those individuals have been deployed.
We have an additional wave of collectors, starting training who will be deployed in late summer early fall.
We have already seen marked improvement in key operational data such as abandon rates.
And expect full normalization of desk slowed performance over the next several months.
However, having now seen several months of flow rate trends, we are projecting higher charge offs through the remainder of the year.
While I am sure we will learn from this experience industry wide hiring and attrition trends coupled with an unexpected volume surge were major contributing factors.
It's fair for you to ask whether environmental or portfolio wide factors have impacted our changing guidance, while it's difficult to make longer term credit predictions and an uncertain economic environment. We do actively monitor our portfolio to look for signs of current or impending stress that our borrower.
<unk> may be facing.
At this time, we are happy to report that our borrowers refreshed FICO scores remained strong we have not observed any changes in this environment that differ from those that we experienced in normal economic times.
We also closely reviewed payments and performance of our variable rate loans to ensure that they are not segregate that degrading in this rising rate environment.
Again, we are happy to report that these loans continue to perform in line with the fixed rate loans in our portfolio.
Shifting gears from charge offs, let me spend a minute discussing the outlook for our remaining $1 billion loan sale for the year.
While markets remain volatile interest rates are off their highs and transactions in the secured financing market continue to get done, albeit at slightly wider spreads we remain in close contact with the market and recognize that premiums have declined subsequent to our last sale our revised guidance reflects.
However, despite lower premiums our share price is lower as well based on the framework. We utilize we believe selling loans at a lower premium creates value by repurchasing shares at a similarly, lower multiples, we expect to execute a loan sale in the third quarter and continue on.
Our buyback of shares but could conceivably slipped to Q4, if we see another round of really major market disruptions.
All of that is of course subject to board approval and careful consideration of capital levels in an uncertain economic environment.
Let me translate all of this into an outlook discussion for an update of our 2020 to your guidance.
First we are reaffirming our guidance on full year expenses of $555 to $565 million, despite pressures from inflation and increased staffing in collections and servicing we continue to find ways to leverage our fixed expense base and efficiently bring and new to firm customers at lower marketing.
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With a strong start to the year end peak season performance to date, we are increasing our full year origination growth expectation to 9% to 11%.
Based on the previous credit discussion, we are also raising our charge off guidance for the year to between $325 and $345 million.
This new guidance reflects all of the factors that I reviewed and.
And finally, we are lowering our diluted non-GAAP EPS guidance for the year to $2 50 to $2. Seven day. This reflects a variety of factors, but most notably changes in loan sale premium and in your charge off expectations.
That Steve Let's go ahead and open up the call for questions. Thank you.
Yes.
Thank you and as a reminder to ask a question simply press Star one one on your telephone one moment for our Q.
Okay.
<unk>.
Okay.
Our first question is from Moshe Orenbuch with credit Suisse. Please go ahead.
Great. Thanks.
John It's Steve Thanks for that.
Really detailed discussion.
On the credit side and I guess.
The interesting thing about this is that it wasn't something that.
<unk>.
Quickly, it's something that you kind of knew about it.
And got somewhat worse, I guess or at least the bulk of it.
Yeah.
Is there a way to kind of just give us some additional comfort that that that you should go to reappear somewhere else I guess.
Obviously, assuming a relatively stable.
Economic environment, not talking about you know kind of significant economic deterioration, but I guess, the fact that it would kind of.
Leptin stages like that.
Is there any way to kind of give us a little extra comfort.
Yes, Moshe Thanks for the question I think it's an important one and I appreciate youre, putting on the table early in.
Obviously this is one that Steve and I and the team here has spent a lot of time talking about yes, I think the historical perspective I would give you is you're exactly right. We've we've known about both of these factors the gap here population and the changes to credit administration practices for a while.
But I think what one needs to appreciate is that they are both effectively sort of new and distinct banks I think what we've seen on the gap year population is that.
That population has really performed materially worse.
A standard withdraw population I think when we saw that early on it would have been natural to assume that would've performed a lot like <unk>.
A standard withdraw population clearly that has not been the case I think that suggests highlighted that the decision to drop out of school. During the pandemic I think we will look backhaul I didn't understand was a meaningful risk splitter that quite frankly, we just didn't have any experience before west because there hasn't been a pandemic before.
But I think we certainly now understand that.
On that one I think what gives us confidence Moshe is.
For those customers that entered repayment earlier in that gap year population.
We have now seen their performance trends effectively normalize to what we would say from a typical gap year population. So we've sort of seen them work through whatever we think was extraordinary in their performance and Dave.
Kind of rejoin the sort of expected performance trend. If you want to think about it that way and I think that gives us confidence as we think about the model laid out the rest of that gap year and how it flows through that gap year population and how it flows through over the course of the remainder of the year.
Likewise, I think on the credit administration changes, it's a little bit of the same story. This is a new program.
I think we we knew.
New that there were going to be both sort of longer term and shorter term impacts there I think the longer term impacts we've cared for as I said in my talking points through the reserve that we've taken.
We also knew that there was going to be sort of a shake out effect that I think we are seeing that play out.
Again, we can see that changing curves and data. So we know that how sort of the proportion of customers who exhibit each of these behaviors that I referenced earlier are changing and again I think that gives us confidence that we've got now with real experience.
Better take on sort of the way things are going to play out versus the.
The assumption based approach and models that we put out when we launched the program. So.
Both of those things together I think.
Core.
Common element is we now just have real practical experience over the course now of a growing number of months with each of those populations and that gives us a lot more confidence in our ability to model. Some things that were quite frankly, new to our system.
Thank you and just as a follow up.
Obviously, you talked to you you've mentioned many times before that the.
The premium on the loan sale is only one portion of the capital generated from the loan sale process.
Got it.
If we are in a period of kind of higher rates and therefore, lower premia, how does that influence kind of your thinking over the intermediate term in terms of how much is the right amount of loads to sell.
Yes, Moshe let me, let me answer the broad strategic piece and I'll ask if Steve wants to jump in with any more sort of technical basis.
I think as we've described before we have developed.
I think you can simply think about as a as a grad, it's slightly more complicated than that but effectively a decision matrix.
We are looking at not just the premium.
But what we're really looking at is sort of the premium and yes, you are exactly right. As a result, the total amount of freight capital from our loan sale.
Versus the multiple of the stock.
Really trying to figure out what is driving or what would drive real value creation, considering things like you know the NPV of those loans accretion dilution over periods of time, you have et cetera.
We still think as we've said before we're well within the green zone of that and by the way.
I understand the Green zone, I guess easier to achieve when the multiple is lower that's just that's just the math of the <unk>.
Whole thing.
I think we've also said Moshe just to remind everyone. We view the share buyback program and arbitrage program really as an opportunistic medium term strategy. We strongly suspect that we will continue it going forward, but I think we've always said it was something that we really wanted to press on when we saw that.
We're well within that Green zone. So I think as you know as long as we continue to live in that brings zone.
I think we will be very very interested in continuing that program I think if we started to move outside of that we would think of it differently again, we don't think we're close to that.
That point today.
Even with the kind of lower loan sale premiums, we've put into our guidance.
And really do believe that over the course of the last couple of years, our share buyback program has been a significant creator of shareholder wealth.
We are excited to continue with going forward.
I think we've had over the last couple of months the added complexity of not just rising rates, but.
Broader volatility in a risk off orientation in the market.
And I'm sure that has factored some of the intelligence that we've gotten around likely market premiums I think our arithmetic says that if you are just dealing with a higher rate environment.
There is.
Theres, probably a greater premium than what we have modeled in.
But again I think we will continue to take that base.
Based on market intelligence as we go forward, Steve what would you add to that.
I think he covered a pretty thorough job.
Thank you.
Thank you one moment for our next question. Please.
Next question is from a Mark Devries with Barclays. Please go ahead.
Yes. Thanks.
First just wanted to clarify some of the comments around the impact of the credit administration policy changes.
Or are you, saying you think Thats you know its more of a 2022 impact mainly because the impact of earnings.
Is now kind of factored in.
Did you see some reserve or do you actually think it has a more temporary just impact on charge offs.
Yes, I think what I would say mark as you know.
Based on what we're seeing today, we think that is more of a 'twenty two temporary impact. So let me, let me dive a little bit deeper into that I think our view is.
Yes.
Two ways that the changes to credit administration practices may impact.
You know instead of charge offs and credit metrics over time.
Theres clearly going to be some longer term change to the program. That's why we've taken the seasonal reserve that's why we've done the things that we've done.
And by the way I don't think we've seen yet anything that indicates that those.
Those estimates were.
Ron or in need of updating.
But I think what we also knew when we implemented this is that there would be sort of a phase in effect. So if you think about it any time, you curtail or restrict our loss mitigation program.
There is a group of on the margin borrowers people who.
May have been able to make payments a little while longer may have been able to sort of keep their head above water a little while longer.
And now without access to that program.
In the end.
And out of other options, if they move faster through to delinquency.
And I think what we believe we are seeing this year is those on the margin customers moving faster through to delinquency.
Versus the expectations that we initially had.
And so we do think that this is an implementation of fact based on what we've seen so far will of course continue to monitor it carefully.
You know and and report out on the results as appropriate, but I think we believe that the charge off in fact is really much more of that temporary phase and or transitional impact.
Yes, Mark just for perfect clarity, we do have a sizable reserve for expected increases with life of loan losses to forbearance changes, which we haven't touched and it's still out there and we also have additional reserves as we originate loans for this impact than what John is <unk>.
Scribing theres, a little bit of an acceleration which is also.
So we are very soon.
<unk> reserve is 100% accounting for.
Everything that we're discussing here.
Okay, Great I appreciate all the commentary.
Thank you one moment for our next question. Please.
Our next question is from Sanjay said Ronny with K B W. Please go ahead.
Thanks, Good morning.
We dig in a little bit more to John your commentary on the Green zone.
In past calls you've discussed sort of 8% gain on sale of <unk>.
Sort of a marker or a tipping point for you guys to decide to sell or not.
I think the new assumption is lower than that and I know John you mentioned you can probably.
You get higher in the current environment, but I'm just curious can you just get a <unk>.
Census of what we should expect.
Based on the gain on sale and when you sell versus not.
I mean Sanjay.
Since Youre quoted in my comments, which I think you may have misinterpreted.
Basically what we do is we triangulate between our estimated equity cost of capital we calculate the net present value of the portfolio based on equity cost and funding cost and we compare that and then we use the equity cost of capital to estimate.
Basically one hour.
Price earnings multiple should be on a conservative basis, and we compare the two and that creates the green zone.
John was describing.
In extreme cases, where the stock price.
Could be extremely undervalued based on basic finance, so called 201 as opposed to 101.
Premium that.
We could sell at.
The arbitrage work could be significantly lower.
Percent that you referenced.
That clarifies that a little bit.
So I mean is there a way to.
Is there a way to get that number now, but maybe using that calculation what that rate is now.
Yes Sanjay.
I'm sure you can appreciate.
We sell loans at a competitive auction.
Part of what we tried to take great care of us to build demand and interest and a little bit of.
Sort of uncertainty in our market clearing price I don't think we really want to be putting out to the market sort of our decision framework for how we think about the exact price at which we would or would not sell loans I'm sure. You can appreciate that I think it is fair to say, we have a very robust methodology.
If we sell loans at a lower premium rest assured it's because we think we can deploy the capital at an even more aggressive level and create value for our shareholders and look we understand that that may have a slight impact on in year EPS through the gain number.
But at the end of the day, while while we take in your EPS guidance really really seriously, but we're much more focused in on is the multiyear value creation that that arbitrage creates.
One of the points recall, Tim mentioned Moshe pointed out that the premium we receive is really not just the gain on sale premium when we sell these loans. We also released the five 4% <unk> reserve.
Mentioned earlier, and we do consider that to be part of the game, because it's essentially capital bit stranded for the life of these loans.
Plus the 13% capital with us.
Okay.
Got it.
Just one final question.
The.
I appreciate all the commentary on those specific cohorts that.
Had the gap year, so as we think about the impact. This year I think you guys are pretty clear that it's specific to this year. So as we move into next year does that.
All else equal from a macro standpoint bring down the provision run rate adjust.
Adjusted for those onetime impact.
Yes, it absolutely would sanjay.
Okay. So it would be roughly that $50 million plus.
Some of the servicing gaps.
Yes, there is a considerable amount of reserve.
The number this year for these transitory effects that we're seeing basically.
Charge offs.
<unk> methodologies to estimate what you need for the portfolio and then you look at charge offs and that lowers the reserve and Youre essentially topping up the reserve.
Charge offs charge offs that youre experiencing over and above the forecast.
And Sanjay not too good not to snatch complexity from the jaws of simplicity on this one but.
That is of course subject to all of the factors that would normally go into our provision calculation. So.
Growth mix economic outlook et cetera. Those are also other variables, but what Steve said is precise exactly right with regard to this year's temporary effects.
Okay, great. Thank you very much.
Thank you one moment for our next question.
Our next question comes from Melissa Wedel with Jpmorgan. Please proceed.
Good morning, Melissa on for Rick today.
Wanted to follow on the topic, we've been talking about here.
<unk> and credit quality.
Trying to reconcile.
We've seen the allowance ratio.
As a percent of any loans in repayment sort of steadily declining on sort of that quarter over quarter basis, but also on a year over year basis and yet we've got some.
First off guidance going up so I was hoping you could.
Either rephrased or kind of elaborate on how you're thinking about the allowance ratio in particular, and how you would expect that to trend given your credit expectations.
The rest of the year. Thank you.
Sure so here's the process.
The numbers that I typically quote in my prepared remarks, or the more accurate reserve level because the reserve level does include the accrued interest receivable and the commitments and we were at $5 four versus five 3% so upbeat.
But I guess your question is fair since charge offs going up a little bit more than that.
I remember it is a life of loan loss reserve, but I think what you need to think about is when we provide guidance.
<unk>, what we're doing for the reserve and the provision as we calculate our year end seasonal loan loss allowance requirement and then we build upon that.
Unexpected charge offs, which requires additional provisioning, which basically accounts for the expected charge offs between quarter end and.
End of the year.
That makes sense, it's a little complex, but that is the process that we use to build guidance. So the guidance includes additional provisioning that will take place by the end of the year.
Okay. Thank you for that.
Welcome.
Thank you.
I will now turn the conference back to management for final remarks.
Carmen Thank you.
Appreciate everyone's time and interest. This morning, hopefully we were able to answer questions and provide information on the business in general, but also specifically on the changes in guidance. Please note that the management team and our IR team, Steve Brian and I are here and happy to answer additional questions as you complete your.
Your analysis in our reviews and really do appreciate everyones time and interest in Sallie Mae.
Have a great rest of your summer and look forward to talking again in the fall if not before.
Thanks.
For your time and your questions today, a replay of this call and the presentation will be available on the investor page at <unk> Dot Com again, if you have further questions feel free to reach out to me directly. This concludes today's call. Thank you.
And thank you for participating and you may now disconnect.
Yeah.
The conference will begin shortly to raise your hand during Q&A you can dial one one.
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