Financial Performance - GAAP Net Income attributable to common stock was $67 million in Q2 2025[10] - GAAP diluted earnings per common share was $0.32 in Q2 2025[11] - Net interest margin for Q2 2025 was 5.31%, a decrease of 5 basis points from Q2 2024[10] - Total non-interest expenses in Q2 2025 were $167 million, compared to $159 million in the year-ago quarter[11] - Return on Common Equity for Q2 2025 was 12.6%[8] Balance Sheet & Capital Allocation - Private Education Loan Originations were $686 million in Q2 2025, compared to $691 million in the year-ago quarter[7] - 2.4 million shares were repurchased in Q2 2025 at an average price of $29.46 per share[9] - $0.13 common stock dividend per share was paid in Q2 2025[7] Credit Performance - Private Education Loan net charge-offs for Q2 2025 were $94 million, representing 2.36% of average loans in repayment (annualized), compared with 2.19% in Q2 2024[20] - The provision for credit losses was $149 million in Q2 2025[18] - 3.5% of Private Education Loans were delinquent 30+ days as of June 30, 2025[19] Funding & Liquidity - Deposit portfolio balances at the end of Q2 2025 were 1% lower than at the end of Q2 2024[15]

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, 2025 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 ...

[Financial Highlights and Overview](index=2&type=section&id=Financial%20Highlights%20and%20Overview) This section provides an overview of Sallie Mae's Q2 2025 financial results, full-year guidance, and private education loan portfolio trends [Q2 2025 Performance Summary](index=2&type=section&id=Q2%202025%20Performance%20Summary) Sallie Mae reported solid Q2 2025 results with a GAAP Diluted EPS of $0.32 and GAAP Net Income of $67 million The company executed $70 million in share repurchases and paid a $0.13 dividend per share The net interest margin saw a slight year-over-year decrease to 5.31%, while the provision for credit losses increased significantly compared to Q2 2024 - CEO Jonathan Witter highlighted the solid performance, the resilience of customers, and the continued execution of strategy, expressing optimism for the long-term outlook of private student lending[7](index=7&type=chunk) Q2 2025 Key Metrics | Metric | Value | | :--- | :--- | | GAAP Diluted Earnings Per Common Share | $0.32 | | Private Education Loan Originations | $686 million | | Shares Repurchased | 2.4 million for $70 million | | Total Net Charge-Offs (annualized) | 2.36% | | Non-Interest Expenses | $167 million | Q2 2025 Financial & Capital Highlights | Metric | Value | | :--- | :--- | | GAAP Net Income (attributable to common stock) | $67 million | | Net Interest Margin | 5.31% (down 5 bps YoY) | | Provision for Credit Losses | $149 million | | Common Stock Dividend Paid | $0.13 per share | | Total Risk-Based Capital Ratio | 12.8% | | CET1 Capital Ratio | 11.5% | [Full-Year 2025 Guidance](index=2&type=section&id=2025%20Guidance) The company provides its full-year 2025 outlook, expecting GAAP Diluted EPS between $3.00 and $3.10, private education loan origination growth of 6% to 8%, and total loan portfolio net charge-offs between 2.0% and 2.2% Full-Year 2025 Guidance | Metric | Expected Range | | :--- | :--- | | GAAP Diluted Earnings Per Common Share | $3.00 - $3.10 | | Private Education Loan Originations (YoY Growth) | 6% - 8% | | Total Loan Portfolio Net Charge-Offs | 2.0% - 2.2% | | Non-Interest Expenses | $655 million - $675 million | [Private Education Loan Portfolio Trends](index=2&type=section&id=Private%20Education%20Loan%20Portfolio%20Trends) The private education loan portfolio showed a 10% year-over-year increase in average loans outstanding to $22.6 billion Key credit metrics such as delinquencies and net charge-offs increased slightly compared to Q2 2024, while loans in hardship forbearance decreased Provisions for credit losses rose significantly to $149 million from $17 million in the prior-year quarter - Average loans outstanding (net) grew **10%** from Q2 2024 to **$22.6 billion**[11](index=11&type=chunk) Loan Portfolio Credit Trends (vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Provisions for credit losses | $149 million | $17 million | | Loans in hardship forbearance | 0.91% | 1.00% | | Delinquencies (% of loans in repayment) | 3.51% | 3.34% | | Net charge-offs (annualized, % of avg loans in repayment) | 2.36% | 2.19% | [Key Financial Metrics (Comparative)](index=3&type=section&id=Key%20Performance%20Metrics) This section provides a comparative view of key financial metrics for Q2 2025, Q1 2025, and Q2 2024 Net income attributable to common stock was $67 million in Q2 2025, a significant decrease from $301 million in Q1 2025 and $247 million in Q2 2024 The decline was primarily due to higher provisions for credit losses and lower non-interest income, which was impacted by the absence of significant loan sales in the current quarter Selected Financial Data ($ millions) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net interest income | $377 million | $375 million | $372 million | | Provisions for credit losses | $149 million | $23 million | $17 million | | Total non-interest income | $27 million | $206 million | $142 million | | Net income attributable to common stock | $67 million | $301 million | $247 million | | Private Education Loans held for investment, net | $21,160 million | $21,091 million | $18,433 million | | GAAP diluted earnings per common share | $0.32 | $1.40 | $1.11 | [Consolidated Financial Statements](index=8&type=section&id=CONSOLIDATED%20FINANCIAL%20STATEMENTS) This section presents Sallie Mae's consolidated balance sheets and statements of income, highlighting key changes in assets, liabilities, and profitability for the periods presented [Consolidated Balance Sheets](index=8&type=section&id=SLM%20CORPORATION%20CONSOLIDATED%20BALANCE%20SHEETS%20(Unaudited)) As of June 30, 2025, Sallie Mae's total assets were $29.6 billion, a slight decrease from $30.1 billion at year-end 2024 The change was mainly driven by lower cash and investments, while loans held for investment increased slightly Total liabilities also decreased to $27.2 billion, primarily due to a reduction in deposits Balance Sheet Summary (in thousands) | Account | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Total assets | $29,602,917 | $30,072,110 | | Loans held for investment, net | $21,160,332 | $20,902,158 | | Total liabilities | $27,227,930 | $27,912,190 | | Deposits | $20,481,952 | $21,068,568 | | Total equity | $2,374,987 | $2,159,920 | [Consolidated Statements of Income](index=9&type=section&id=SLM%20CORPORATION%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20(Unaudited)) For the three months ended June 30, 2025, net income attributable to common stock was $67.3 million, down from $247.4 million in the prior-year period The decline was primarily driven by a significant increase in provisions for credit losses (to $148.7 million from $16.8 million) and a sharp drop in non-interest income due to lower gains on loan sales For the six-month period, net income also decreased to $367.9 million from $532.6 million year-over-year Income Statement Summary - Three Months Ended June 30 (in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Net interest income | $376,820 | $372,172 | | Provisions for credit losses | $148,718 | $16,830 | | Total non-interest income | $26,776 | $141,805 | | Net income attributable to common stock | $67,300 | $247,365 | Income Statement Summary - Six Months Ended June 30 (in thousands) | Account | 2025 | 2024 | | :--- | :--- | :--- | | Net interest income | $751,790 | $759,188 | | Provisions for credit losses | $172,004 | $28,871 | | Total non-interest income | $232,820 | $315,963 | | Net income attributable to common stock | $367,884 | $532,643 | [Other Information](index=4&type=section&id=Other%20Information) This section includes cautionary notes regarding forward-looking statements and provides detailed definitions and methodologies for key financial metrics [Forward-Looking Statements](index=6&type=section&id=CAUTIONARY%20NOTE%20AND%20DISCLAIMER%20REGARDING%20FORWARD-LOOKING%20STATEMENTS) This section contains a standard cautionary note advising investors that the press release includes forward-looking statements based on current management expectations It lists numerous risks and uncertainties, such as changes in financing costs, regulations, and economic conditions, that could cause actual results to differ materially from the projections - Forward-looking statements cover strategies, goals, loan sales, share repurchases, dividends, and the 2025 guidance[18](index=18&type=chunk) - Results are subject to various risks including financing costs, regulatory changes, accounting standards, credit risk, cybersecurity incidents, and general economic conditions[19](index=19&type=chunk) [Footnotes](index=4&type=section&id=Footnotes) This section provides definitions and calculation methodologies for key metrics mentioned in the report It clarifies details on the share repurchase program, the calculation of loans in forbearance, Return on Assets (ROA), and Return on Common Equity (ROCE) - As of June 30, 2025, **$302 million** of capacity remained under the 2024 Share Repurchase Program[13](index=13&type=chunk) - The report defines how it calculates the percentage of loans in hardship forbearance, which stood at approximately **$150 million** at June 30, 2025[14](index=14&type=chunk) - The calculation methods for Return on Assets (ROA) and Return on Common Equity (ROCE) are defined as GAAP net income (annualized) divided by GAAP total average assets and GAAP net income to common (annualized) divided by average common equity, respectively[15](index=15&type=chunk)

Wall Street analysts forecast that Sallie Mae (SLM) will report quarterly earnings of $0.49 per share in its upcoming release, pointing to a year-over-year decline of 55.9%. It is anticipated that revenues will amount to $375.13 million, exhibiting an increase of 0.8% compared to the year-ago quarter.Over the last 30 days, there has been an upward revision of 19.3% in the consensus EPS estimate for the quarter, leading to its current level. This signifies the covering analysts' collective reconsideration of ...

Core Viewpoint - Sallie Mae (SLM) is anticipated to report a year-over-year decline in earnings despite an increase in revenues for the quarter ended June 2025, with actual results being a significant factor influencing its near-term stock price [1][2]. Earnings Expectations - The consensus estimate for Sallie Mae's quarterly earnings is $0.49 per share, reflecting a year-over-year decrease of 55.9%. Revenues are projected to be $375.13 million, which is a 0.8% increase from the same quarter last year [3]. Estimate Revisions - Over the past 30 days, the consensus EPS estimate has been revised 19.04% higher, indicating a reassessment by analysts regarding the company's earnings prospects [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Sallie Mae is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -4.47%. This indicates a bearish outlook from analysts [12]. Historical Performance - In the last reported quarter, Sallie Mae was expected to post earnings of $1.19 per share but exceeded expectations with actual earnings of $1.40, resulting in a surprise of +17.65%. Over the last four quarters, the company has beaten consensus EPS estimates two times [13][14]. Investment Considerations - Despite the potential for an earnings beat, Sallie Mae does not appear to be a compelling candidate for such an outcome, and investors should consider other factors when making investment decisions [17].

Core Insights - The "Big and Beautiful" Act signed by Trump is expected to create growth opportunities for private student loan institutions, potentially generating around $2.5 billion in benefits [1] Summary by Categories Market Impact - The act limits or eliminates federal government sources for certain graduate loans, shifting up to $14 billion of the student loan market to the private sector [1] - In contrast to the $1.2 billion in private loans issued to graduate students in 2024, this represents a significant growth opportunity for private lenders [1] Company Opportunities - Companies like SoFi, Sallie Mae, and Navient are anticipated to experience substantial increases in interest and fee income due to this market shift [1]

Core Insights - The Trump administration's proposed tax bill, "One Big, Beautiful Bill," aims to benefit companies like Sallie Mae (SLM) in the private student loan sector [1][9] - The bill introduces significant changes to federal student loan policies, including tighter borrowing limits for graduate and professional students, as well as parents [2][3] Summary by Category Proposed Changes to Student Loan Policy - Graduate student borrowing is proposed to be capped at $20,500 per year, with a total limit of $100,000 [3] - For professional programs, the borrowing cap would be $50,000 per year, up to a maximum of $200,000 [3] - Parents borrowing on behalf of students will face a new limit of $20,000 per student per year, with a total limit of $65,000 [4] Impact on Sallie Mae (SLM) - The proposed borrowing limits may lead students to seek private loans to cover educational costs, increasing demand for Sallie Mae's services [5][6] - Changes to federal repayment programs could drive borrowers to refinance their federal loans with private lenders like SLM, enhancing the company's growth potential [7][9] - Sallie Mae is focusing on strengthening its capital foundation and expanding its product offerings in private student lending [8] Market Performance - Over the past three months, shares of SLM have increased by 33.3%, although this is below the industry's growth of 36.1% [12]

Financial Performance - Full-Year 2024 private education loan originations reached $70 billion, a 10% increase compared to $64 billion in 2023[8] - Q4 2024 private education loan originations totaled $982 million, a 17% increase compared to $839 million in the year-ago quarter[11] - Full-Year 2024 GAAP diluted earnings per common share were $268[17] - The company repurchased 116 million shares in Full-Year 2024 for $250 million, at an average price of $2159 per share[13] Balance Sheet and Capital Allocation - Total assets grew by 31% in Full-Year 2024, inclusive of FFELP loan portfolio sale, while private education loan balance grew by 57%[9] - The total risk-based capital ratio was 126%, with a CET1 capital ratio of 113%[12] - $37 billion in private education loans were sold at attractive premiums in 2024, including $34 billion of principal and $274 million in capitalized interest[19] Credit Performance - The percentage of private education loans in repayment delinquent 30+ days as of December 31, 2024, was 37%, compared to 39% in 2023[25] - Private education loan net charge-offs for Full-Year 2024 were $332 million, representing 219% of average private education loans in repayment, compared with 244% in 2023[27] - Q4 2024 provision for credit losses was $108 million, with a total allowance of 583% as a percentage of the ending total loan balance plus unfunded commitments and total accrued interest receivable on private education loans[24] Funding and Liquidity - Deposit portfolio balances at the end of Q4 2024 were 18% lower than at the end of Q3 2024[20] - Uninsured deposits represented 3% of total deposits as of December 31, 2024[22]

Core Viewpoint - Sallie Mae (SLM) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates, which significantly influence stock prices [1][3]. Earnings Estimates and Stock Performance - The Zacks rating system emphasizes the correlation between changes in earnings estimates and stock price movements, particularly influenced by institutional investors [4][6]. - For Sallie Mae, the recent increase in earnings estimates suggests an improvement in the company's underlying business, likely leading to a higher stock price [5][10]. Earnings Estimate Revisions - Sallie Mae is projected to earn $3.12 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 1.6% over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimate revisions, with only the top 20% of stocks receiving a "Strong Buy" or "Buy" rating, indicating superior potential for market-beating returns [9][10].

Financial Data and Key Metrics Changes - The meeting confirmed the presence of a quorum for voting on four proposals, indicating strong shareholder engagement [10][11] - All nominees for the Board of Directors were elected with the required number of votes, reflecting shareholder confidence in the management team [14][15] Business Line Data and Key Metrics Changes - The approval of the 2025 employee stock purchase plan received majority support, suggesting positive sentiment towards employee engagement and retention strategies [15] Market Data and Key Metrics Changes - The advisory vote on executive compensation was approved by a majority, indicating shareholder approval of the company's compensation practices [15] Company Strategy and Development Direction - The company emphasized its commitment to long-term success and the importance of positioning its customers and business effectively for future growth [19] Management's Comments on Operating Environment and Future Outlook - The CEO expressed gratitude for shareholder support and highlighted the dedication of team members in driving the company's success [19] Other Important Information - The meeting was conducted without any technical difficulties, ensuring smooth proceedings [4] Q&A Session Summary Question: Were there any questions from shareholders? - There were no questions received during the Q&A session, indicating either satisfaction with the information provided or a lack of immediate concerns from shareholders [21]