UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-13251 SLM Corporation (Exact name of registrant as specified in its charter) | | | 52- | | --- | --- | --- | | Delaware | | 2013 ...

Exhibit 99.1 News Release For Immediate Release Sallie Mae Reports Second-Quarter 2024 Financial Results NEWARK, Del., July 24, 2024 - Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today released second-quarter 2024 financial results. Complete financial results and related materials are available at www.SallieMae.com/investors. The materials will also be available on the Securities and Exchange Commission's website at www.sec.gov. Sallie Mae will host an earnings conference call today, July 24, 2024, ...

Company Overview - Sallie Mae (SLM) is expected to report quarterly earnings of $0.73 per share, reflecting a year-over-year decline of 33.6% [2] - Revenues are anticipated to be $373.29 million, down 3.5% from the same quarter last year [2] - The consensus EPS estimate has been revised down by 24.54% over the last 30 days, indicating a reassessment by analysts [2] Earnings Prediction Insights - The Zacks Earnings ESP model shows a positive Earnings ESP of +18.57% for Sallie Mae, suggesting analysts have recently become more optimistic about the company's earnings prospects [5] - Sallie Mae currently holds a Zacks Rank of 2, indicating a "Buy" rating, which combined with the positive Earnings ESP suggests a high likelihood of beating the consensus EPS estimate [6][5] Historical Performance - In the last reported quarter, Sallie Mae had an earnings surprise of +16.51%, posting earnings of $1.27 per share against an expectation of $1.09 [7] - Over the past four quarters, Sallie Mae has only beaten consensus EPS estimates once [7] Market Context - The broader industry context includes Capital One (COF), which is expected to report earnings of $3.28 per share, a year-over-year decline of 6.8%, with revenues projected at $9.51 billion, up 5.5% [9] - Capital One has an Earnings ESP of 1.52% and a Zacks Rank of 3, indicating a moderate likelihood of beating the consensus EPS estimate [9]

Core Insights - Sallie Mae's rising average loan balance is driving net interest income (NII) growth, supported by strategic inorganic growth moves to expand operations and diversify revenue streams [1][2] - The company is a dominant player in the student loan lifecycle, benefiting from a low unemployment rate among college graduates and positive enrollment trends, indicating a strengthening demand for educational loans [1] - The company has seen a year-over-year increase in private education loan originations in Q1 2024, with a compound annual growth rate (CAGR) of 5.6% in NII over the past six years [2] Funding and Expenses - Sallie Mae relies on brokered deposits and retail deposits for funding private education loan originations, which poses refinancing risks due to the shorter average term of deposits compared to the loans [5] - Non-interest expenses have increased with a CAGR of 4.2% over the last five years, and this upward trend is expected to continue, potentially hindering bottom-line growth [5] Market Performance - Over the past six months, Sallie Mae's shares have increased by 11.2%, outperforming the industry growth of 7.4% [3]

Core Viewpoint - Sallie Mae (SLM) has been upgraded to a Zacks Rank 2 (Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Outlook - The Zacks rating upgrade reflects a positive outlook on Sallie Mae's earnings, which could positively affect its stock price [2]. - The company is expected to earn $2.72 per share for the fiscal year ending December 2024, indicating a year-over-year increase of 12.9% [5]. Earnings Estimate Revisions - Over the past three months, the Zacks Consensus Estimate for Sallie Mae has increased by 2.2%, showing a trend of rising earnings estimates [5]. - The correlation between earnings estimate revisions and near-term stock movements is strong, suggesting that tracking these revisions can be beneficial for investment decisions [4]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 (Strong Buy) stocks historically generating an average annual return of +25% since 1988 [4]. - Sallie Mae's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for price movement in the near term [7].

Core Viewpoint - Sallie Mae's first-quarter 2024 earnings per share of $1.27 exceeded expectations, driven by lower credit loss provisions, strong loan originations, and increased non-interest income, despite declines in net interest income and rising non-interest expenses [1][7]. Financial Performance - The company's GAAP net income reached $290 million, a significant increase from $119 million in the prior-year quarter [1]. - First-quarter net interest income (NII) was $387 million, down 4.4% year over year, but above the consensus estimate of $376.4 million [2]. - The net interest margin (NIM) decreased to 5.49% from 5.70% in the prior-year quarter [2]. - Non-interest income surged to $174 million compared to $22 million in the prior-year quarter, reflecting improvements across all components [2]. - Non-interest expenses rose by 3.1% year over year to $162 million, primarily due to increased compensation and benefits, along with FDIC assessment fees [2]. Credit Quality - Provisions for credit losses were significantly reduced to $12 million from $114 million in the prior-year quarter [3]. - Net charge-offs for private education loans were $83 million, a decrease of 1.2% year over year, with the charge-off percentage rising slightly to 2.14% [3]. Balance Sheet Position - As of March 31, 2024, total deposits were $20.9 billion, down 3.4% sequentially, while private education loans held for investment were $19.68 billion, showing a marginal sequential decline [4]. - Private education loan originations for the quarter were $2.6 billion, reflecting a 6% increase from the year-ago quarter [4]. Share Repurchase - In the first quarter, the company repurchased 1 million shares at an average price of $20.32 per share as part of its 2024 share buyback program [5]. 2024 Outlook - The company projects core earnings per share (non-GAAP) between $2.60 and $2.70 [6]. - Total loan portfolio net charge-offs are anticipated to be between $340 million and $370 million [6]. - Private education loan originations are expected to grow by 7-8% year over year [6]. - Non-interest expenses are forecasted to be between $635 million and $655 million [6]. Industry Comparison - Navient Corporation reported adjusted earnings per share of 63 cents, surpassing estimates, driven by increased other income and reduced expenses, despite a decline in NII [9]. - Ally Financial's adjusted earnings of 45 cents per share exceeded estimates but reflected a 45.1% decline from the prior year, impacted by lower net financing revenues and higher expenses [9].

Financial Data and Key Metrics Changes - GAAP diluted EPS for Q1 2024 was $1.27, up from $0.47 in Q1 2023, driven by strong business performance and credit trend improvements [4] - Loan originations increased by 6% year-over-year to $2.6 billion, with application volume growing by 4% [5] - Net interest income for Q1 2024 was $387 million, down 4% from the prior year, with a net interest margin of 5.5%, compared to 5.7% in the year-ago quarter [9][10] Business Line Data and Key Metrics Changes - The cosigner rate for loans in Q1 2024 was 91%, up from 89% in Q1 2023, and the average FICO score increased to 748 from 746 [6] - Net private education loan charge-offs were $83 million, or 2.14% of average loans in repayment, down 29 basis points from Q4 2023 [6] - Loans delinquent 30 days or more decreased to 3.4% of loans in repayment, consistent with the year-ago quarter [12] Market Data and Key Metrics Changes - Loans in disaster or hardship forbearance remained at 1% at the end of Q1 2024, consistent with Q1 2023 [7] - The company executed a $2.1 billion loan sale in Q1 2024, generating $143 million in gains, with expectations for additional loan sales throughout the year [7][8] Company Strategy and Development Direction - The company aims for balance sheet growth of 2% to 3% for the year and continues a capital return strategy through stock repurchases [8] - Management is preparing for a condensed peak season due to potential delays from the Department of Education's reforms and is enhancing staffing and digital capabilities [15][16] - The exit of a major competitor from the market is seen as an opportunity for new business, with expectations for a slight volume increase from former customers of that competitor [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the positive trends in credit performance and the successful loan sale execution, reaffirming guidance for 2024 [17] - The company is monitoring the impact of competitor exits and believes it will lead to new business opportunities during the peak season [16] Other Important Information - The company discontinued reporting non-GAAP core earnings, now using GAAP earnings for guidance calculations, with an unchanged guidance range of $2.60 to $2.70 for 2024 [9] - Operating expenses for Q1 2024 were $160 million, a 4% increase compared to the prior year, driven by increased application and disbursement volumes [13] Q&A Session All Questions and Answers Question: How did the quarter perform relative to original expectations? - Management indicated that the quarter was largely in line with expectations, maintaining guidance despite some positive trends [18][19] Question: What are the expectations for the reserve rate as credit metrics improve? - Management suggested that while they are not ready to specify a number, improvements in credit metrics should lead to modest improvements in the overall level of reserves [20][21] Question: What more needs to happen for confidence in updating guidance for the year? - Management expressed satisfaction with current loan modification program results but indicated a need for more seasoning before updating guidance [23][25] Question: How does the company view the impact of a competitor exiting the market? - Management noted that the exit of a competitor is expected to have a modest impact initially, with more significant effects anticipated during the peak season [30][32] Question: What is the outlook for net interest margin (NIM) given the yield curve? - Management indicated that the current rate environment is mildly beneficial for NIM, with expectations that NIM compression may not occur as quickly as previously anticipated [35] Question: How aggressive is the company on the share buyback program? - Management stated that they plan to be more programmatic with the buyback program throughout the year, assessing opportunities as they arise [52]

Core Insights - Sallie Mae (SLM) reported revenue of $387.02 million for Q1 2024, a year-over-year decline of 4.5%, with an EPS of $1.27 compared to $0.47 a year ago [1] - The revenue exceeded the Zacks Consensus Estimate by 2.81%, while the EPS surprised by 16.51% over the consensus estimate of $1.09 [1] Financial Performance Metrics - Net Interest Margin was 5.5%, slightly above the average estimate of 5.4% from three analysts [2] - Average Balances of Interest-Earning Assets were $28.37 billion, slightly below the estimated $28.40 billion [2] - Net Interest Income was reported at $387.02 million, exceeding the average estimate of $377.67 million from four analysts [2] - Gains on Sales of Loans, net, were $143.04 million, surpassing the estimated $111.11 million [2] - Other Income reached $29 million, above the average estimate of $22.39 million [2] - Total Non-Interest Income was $174.16 million, exceeding the average estimate of $133.75 million [2] Stock Performance - Shares of Sallie Mae have returned +3.7% over the past month, contrasting with a -3% change in the Zacks S&P 500 composite [2] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [2]

Earnings Presentation 1st Quarter 2024 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2024 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-13251 SLM Corporation (Exact name of registrant as specified in its charter) | --- | --- | |--------------------|-------------- ...