Oct 28, 2025 12:33 PM Eastern Daylight Time Scholarship Myths May Be Costing Families Free Money for Higher Education Share Sallie Mae Offers Free Tools and Guidance to Help Students Find and Win Scholarships This National Scholarship Month NEWARK, Del.--(BUSINESS WIRE)--November is National Scholarship Month, a timely reminder for students and families to explore scholarship opportunities, yet nearly 40% of families miss out, leaving millions of dollars unclaimed each year. "Scholarships can be one of the ...

Core Insights - Sallie Mae (SLM) reported third-quarter 2025 earnings per share (EPS) of 63 cents, missing the Zacks Consensus Estimate of 84 cents, but showing improvement from a loss of 23 cents per share in the prior-year quarter [1][8] - The company's GAAP net income was $136 million, compared to a net loss of $45 million in the prior-year quarter [2] Financial Performance - Third-quarter net interest income (NII) totaled $372.9 million, up 3.8% year over year, but missed the Zacks Consensus Estimate by 0.8%. The net interest margin was 5.18%, an increase of 18 basis points from the prior-year quarter [3] - Non-interest income reached $172.7 million, significantly up from $24.5 million in the year-ago quarter [3] - Non-interest expenses rose 4.9% year over year to $180.4 million [3] Credit Quality - Provision for credit losses was $179.4 million, down 33.8% from the prior-year quarter [4] - Net charge-offs for private education loans were $78 million, up 1.3% year over year, with a percentage of average private education loans held for investment in repayment at 1.95%, contracting 13 basis points year over year [4] Balance Sheet Position - As of September 30, 2025, deposits were $20 billion, down 2.3% sequentially [5] - Private education loans held for investment were $21.6 billion, up 5.6% from the prior-year quarter, with loan originations increasing by 6% from the year-ago quarter [5] Share Repurchase - In the third quarter, SLM repurchased 5.6 million shares for $166 million under its 2024 share buyback program [6] 2025 Outlook - The company expects diluted EPS in the range of $3.20-$3.30 and anticipates total loan portfolio net charge-offs as a percentage of average loans in repayment of 2.0%-2.2% [7][9] - Private education loan originations are expected to grow 5%-6% year over year, with non-interest expenses projected to be in the range of $655-$675 million [9] Overall Assessment - Sallie Mae's financial performance appears decent, with robust loan origination, rising net interest income, and higher non-interest income being encouraging factors. However, rising expenses present a significant near-term challenge [10]

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Core Insights - Sallie Mae reported revenue of $372.98 million for Q3 2025, a year-over-year increase of 3.8% [1] - The EPS for the quarter was $0.63, a significant improvement from -$0.23 a year ago [1] - The revenue fell short of the Zacks Consensus Estimate of $375.85 million by 0.76% [1] - The EPS was below the consensus estimate of $0.84, resulting in a surprise of -25% [1] Financial Metrics - Net Interest Margin was reported at 5.2%, slightly above the two-analyst average estimate of 5.1% [4] - Net Interest Income was $372.98 million, compared to the average estimate of $375.85 million [4] - Gains on sales of loans were $135.96 million, below the estimated $144.59 million [4] - Other income reached $31.87 million, exceeding the average estimate of $23.75 million [4] - Total Non-Interest Income was $172.7 million, surpassing the average estimate of $168.34 million [4] Stock Performance - Sallie Mae's shares have returned -5.1% over the past month, contrasting with the Zacks S&P 500 composite's +0.2% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market [3]

Sallie Mae (SLM) came out with quarterly earnings of $0.63 per share, missing the Zacks Consensus Estimate of $0.84 per share. This compares to a loss of $0.23 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -25.00%. A quarter ago, it was expected that this student loan company would post earnings of $0.49 per share when it actually produced earnings of $0.32, delivering a surprise of -34.69%.Over the last four quarters, the c ...

Financial Data and Key Metrics Changes - GAAP diluted EPS for Q3 2025 was $0.63 per share, with loan originations of $2.9 billion, reflecting a 6.4% increase year-over-year and 6% growth year-to-date [4][5] - Net interest income for Q3 2025 was $373 million, up $14 million from the prior year, with a net interest margin of 5.18%, an increase of 18 basis points year-over-year [6][7] - Provision for credit losses decreased to $179 million from $271 million in the prior year, largely due to a $119 million provision release from the loan sale [6][7] Business Line Data and Key Metrics Changes - The cosigner rate for Q3 was 95%, up from 92% in the year-ago quarter, and the average FICO score at approval increased to 756 from 754, indicating strong underwriting discipline [5] - Private education loan net charge-offs were $78 million, representing 1.95% of average private education loans in repayment, down 13 basis points from the year-ago quarter [5][6] - Non-interest expenses for Q3 were $180 million, compared to $167 million in the prior quarter and $172 million in the year-ago quarter [9] Market Data and Key Metrics Changes - 4% of private education loans in repayment were 30 days or more delinquent, up from 3.6% at the end of the year-ago quarter, attributed to changes in loan modification eligibility criteria [7][8] - The company has seen stability in late-stage delinquencies and roll rates, with 80% of borrowers in loan modification programs making consistent payments after one year [8][9] Company Strategy and Development Direction - The company is optimistic about the long-term outlook for private student lending and is exploring alternative funding partnerships in the private credit space [10][11] - A first-of-its-kind partnership is expected to be announced soon, aimed at unlocking the value of the customer base and setting the stage for sustainable growth of fee-based revenues [11][12] - The company anticipates selling a small portfolio of seasoned loans and a portion of recent peak season originations, expecting GAAP earnings per common share for 2025 to be between $3.20 and $3.30 [12] Management's Comments on Operating Environment and Future Outlook - Management noted that despite economic ambiguity, there has been no material change in borrowers' ability to meet obligations [5][10] - The company is preparing for the impact of recent federal reforms, which are expected to create opportunities for growth in private student lending [10][11] - Management expressed confidence in maintaining a net charge-off rate in the high 1% to low 2% range over the long term [14][26] Other Important Information - The company has reduced outstanding shares by 55% since initiating its capital return strategy in 2020, repurchasing 5.6 million shares at an average price of $29.45 per share [5][6] - The liquidity ratio at the end of the quarter was 15.8%, with total risk-based capital at 12.6% and CET1 capital at 11.3% [9] Q&A Session Summary Question: Outlook for delinquency performance - Management expressed satisfaction with loan modification programs and expected stability in late-stage delinquencies and roll rates, despite a slight uptick in early-stage delinquencies [14][15] Question: Details on loan sale partnership - Management indicated that details on the loan sale partnership would be released once finalized, emphasizing the importance of the deal [15][20] Question: Impact of modifications on delinquency rates - Management noted that borrowers in modification programs have shown strong payment patterns, and they are optimistic about the upcoming wave of graduates transitioning into repayment [19][48] Question: Credit outlook and potential charge-offs - Management acknowledged the correlation between delinquencies and charge-offs but maintained confidence in their guidance and the effectiveness of their loan modification programs [24][34] Question: Buyback strategy and appetite - Management confirmed a commitment to aggressive share buybacks, with plans to assess timing and quantity post-partnership completion [86][87] Question: Opportunities from Plus Reform - Management sees Plus Reform as a significant opportunity for growth in private student lending, with potential annual origination increases projected in the $4 to $5 billion range [92][93]

SLM (NasdaqGS:SLM) Q3 2025 Earnings Call October 23, 2025 05:30 PM ET Company ParticipantsMelissa Bronaugh - Managing Vice President of Strategic FinancePete Graham - CFOJon Witter - CEOConference Call ParticipantsGiuliano Bologna - AnalystMoshe Orenbuch - AnalystRick Shane - Senior Equity Research AnalystMark DeVries - Senior Equity Research AnalystSanjay Sakhrani - Senior AnalystJeff Adelson - Equity Research AnalystNone - AnalystJon Arfstrom - Senior Equity AnalystTerry Ma - Senior Equity Research Analys ...

SLM (NasdaqGS:SLM) Q3 2025 Earnings Call October 23, 2025 05:30 PM ET Speaker9Thank you, Chloe. Good evening and welcome to SLM's third quarter 2025 earnings call. It is my pleasure to be here today with Jon Witter, our CEO, Pete Graham, our CFO, and Melissa Bronaugh, Managing Vice President of Strategic Finance. After the prepared remarks, we will open the call for questions. Before we begin, keep in mind our discussion will contain predictions, expectations, and forward-looking statements. Actual results ...

Financial Data and Key Metrics Changes - GAAP diluted EPS for Q3 2025 was $0.63 per share [4] - Loan originations for Q3 were $2.9 billion, representing a 6.4% growth year-over-year and 6% growth year-to-date [5] - Net interest income for 2025 was $373 million, up $14 million from the prior year quarter [7] - Net interest margin was 5.18%, 18 basis points higher than the year-ago quarter [7] - Provision for credit losses was $179 million, down from $271 million in the prior year [8] - Non-interest expenses were $180 million, compared to $172 million in the year-ago quarter [12] Business Line Data and Key Metrics Changes - Cosigner rate for Q3 was 95%, up from 92% in the year-ago quarter [5] - Average FICO score at approval increased to 756 from 754 [5] - Private education loan net charge-offs were $78 million, representing 1.95% of average private education loans in repayment, down 13 basis points from the year-ago quarter [6] Market Data and Key Metrics Changes - 4% of private education loans in repayment were thirty days or more delinquent, up from 3.6% at the end of the year-ago quarter [10] - Stability in late-stage delinquencies and roll rates was observed [11] Company Strategy and Development Direction - The company is optimistic about the long-term outlook for private student lending and plans to explore alternative funding partnerships in the private credit space [14][15] - A first-of-its-kind partnership is expected to be announced soon, aimed at unlocking the value of the customer base and setting the stage for sustainable growth [15] - The company anticipates selling a small portfolio of seasoned loans and a portion of recent peak season originations [16] Management's Comments on Operating Environment and Future Outlook - Management noted that despite economic ambiguity, there has been no material change in borrowers' ability to meet obligations [6] - The company is encouraged by the opportunities created by recent federal reforms [14] - Management expressed confidence in maintaining a net charge-off rate in the high ones to low 2% range over the long term [21] Other Important Information - The company has reduced outstanding shares by 55% since initiating its capital return strategy in 2020 [6] - Liquidity ratio at the end of the quarter was 15.8%, with total risk-based capital at 12.6% and common equity Tier one capital at 11.3% [12] Q&A Session Summary Question: Outlook on delinquency performance - Management expressed satisfaction with the loan modification programs and expects stability in late-stage delinquencies and roll rates [20][21] Question: Details on loan sale terms - Management indicated that details on the loan sale will be released once the deal is finalized [22] Question: Performance of modifications and roll-off - Management noted strong payment patterns among borrowers in modification programs and is optimistic about their success [27] Question: Impact of credit market volatility on gain on sale margins - Management stated that gain on sale margins can vary based on market conditions, but they have historically achieved mid to high single-digit ranges [48] Question: Buyback appetite and authorization - Management confirmed a commitment to aggressive share buybacks, with plans to assess timing and quantity post-partnership completion [90] Question: General sentiment on credit outlook - Management believes that current economic conditions have not significantly impacted borrowers' ability to meet obligations, despite general concerns [93]