Core Viewpoint - Sallie Mae's stock has surged due to expectations of privatization of federal education loans under the Trump administration, alongside favorable conditions from recent Federal Reserve interest rate cuts [2][6]. Stock Performance - Sallie Mae's stock reached a 52-week high of $32.65, closing at $32.53, with a 68% increase over the past year, outperforming peers like Ally Financial Inc. and Navient Corporation [1][3]. Financial Outlook - The Federal Reserve's interest rate cuts are expected to stabilize funding costs, which will benefit Sallie Mae and its peers, leading to anticipated growth in net interest income (NII) [6][7]. - Sallie Mae's NII has experienced a negative compound annual growth rate (CAGR) of 1.8% over the last six years, but improved funding conditions are expected to support NII expansion [8]. Business Growth Initiatives - Sallie Mae is enhancing its private student loan business, with a 10% increase in private education loan originations in 2024 compared to 2023, and expects 6-8% growth in 2025 [9]. - The company is expanding operations through acquisitions, including the purchase of Scholly and Nitro College, which enhance its digital marketing capabilities and outreach [10][11]. Return on Equity - Sallie Mae's trailing 12-month return on equity (ROE) stands at 31.66%, significantly higher than the industry average of 13.06%, indicating effective utilization of shareholders' funds [12]. Expense and Debt Concerns - The company faces rising expenses, with non-interest expenses growing at a CAGR of 1.9% over the past six years, which may hinder bottom-line growth [13]. - As of December 31, 2024, Sallie Mae had long-term borrowings of $6.4 billion against cash and cash equivalents of $4.7 billion, indicating a higher debt level relative to liquidity [14]. Investment Considerations - Sallie Mae's focus on expanding its product offerings and improving its private student loan business is likely to support financial performance, but elevated expenses and high debt levels are concerns [15][19].

Core Viewpoint - Sallie Mae (SLM) reported mixed financial results for the fourth quarter of 2024, with earnings per share (EPS) of 50 cents, missing the consensus estimate of 54 cents, and a decline from 72 cents in the prior-year quarter [1][2][10] Financial Performance - The company's GAAP net income for the fourth quarter was $112 million, down from $168 million in the prior-year quarter [2] - For the full year 2024, EPS was $2.68, missing the consensus estimate of $2.72 but increasing from $2.41 in 2023 [3] - Net income for 2024 was reported at $608 million, reflecting a 46.8% increase from the prior year [3] Net Interest Income and Expenses - Fourth-quarter net interest income (NII) totaled $362 million, up 0.8% year over year, but missed the consensus estimate by 2.5% [4] - The quarterly net interest margin was 4.9%, down 45 basis points from the prior-year quarter [4] - Non-interest income was $28 million, representing a 16.7% year-over-year increase [4] - Non-interest expenses rose 12.8% year over year to $150 million [5] Credit Quality - Provision for credit losses was $108 million, significantly up from $16 million in the prior-year quarter [6] - Net charge-offs for private education loans were $93 million, showing a slight year-over-year increase [6] - The percentage of private education loans held for investment net charge-offs was 2.38%, contracting 5 basis points year over year [6] Balance Sheet Position - As of December 31, 2024, deposits were $21.1 billion, down 1.7% sequentially [7] - Private education loans held for investment were $20.9 billion, showing a marginal increase from the prior year [7] - Private education loan originations increased by 10% from the year-ago quarter [7] Share Repurchase - In the fourth quarter, SLM repurchased 11.6 million shares for $250 million under its 2024 share buyback program [8] 2025 Outlook - The company expects diluted EPS to be in the range of $3-$3.10 for 2025 [9] - Anticipated total loan portfolio net charge-offs as a percentage of average loans in repayment is projected to be between 2-2.2% [9] - Private education loan originations are expected to grow by 6-8% year over year [9] - Non-interest expenses are expected to be in the range of $655-$675 million [9] Final Thoughts - Overall financial performance appears decent, with robust loan origination, an increase in NII, and lower provisions for credit loss being positive factors [10]

Earnings Presentation 4 th Quarter & Full-Year 2024 Confidential and proprietary information. © 2024 Sallie Mae Bank. All rights reserved. 1 CAUTIONARY NOTE AND DISCLAIMER REGARDING FORWARD LOOKING STATEMENTS The following information is current as of January 23, 2025 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation announcing its financial results for the quarter and year ended December 31, 2024, furnished to the Securities and Exchange Commission ("SEC") ...

Financial Data and Key Metrics Changes - The company reported its fourth quarter and full year 2024 earnings, indicating a focus on financial performance and operational results [2][3] - Specific financial metrics and results will be discussed in detail during the call, highlighting the company's financial conditions and cash flows [4][5] Business Line Data and Key Metrics Changes - Detailed performance across various business lines will be provided, showcasing how each segment contributed to overall results [4] Market Data and Key Metrics Changes - The company will address market conditions and how external factors have influenced its operations and financial performance [5] Company Strategy and Development Direction - The management will outline the strategic direction of the company, including growth initiatives and competitive positioning within the industry [4] Management Comments on Operating Environment and Future Outlook - Management will provide insights into the current operating environment and expectations for future performance, emphasizing potential risks and opportunities [5] Other Important Information - The call will include forward-looking statements, with a reminder that actual results may differ due to various factors affecting the business [4][5] Q&A Session Summary Question: What are the expectations for future growth? - Management will address inquiries regarding growth projections and strategic initiatives aimed at enhancing performance [4] Question: How is the company responding to market challenges? - The response will include strategies implemented to navigate current market conditions and maintain competitiveness [5]

Financial Performance - Sallie Mae reported GAAP diluted earnings per common share of $0.50 in Q4 2024, compared to a loss of $0.23 in Q4 2023[16]. - Net income for the fourth quarter of 2024 was $111,553 thousand, a decrease of 33.8% compared to $168,443 thousand in the same quarter of 2023[29]. - Basic earnings per common share decreased to $0.51 in Q4 2024 from $0.73 in Q4 2023, a decline of 30.1%[29]. - The diluted earnings per share (EPS) for the quarter ended December 31, 2024, was $0.50, a decrease from $0.72 in the same quarter of 2023[34]. - Total comprehensive income for 2024 was $617,568 thousand, compared to $600,157 thousand in 2023, indicating a growth of 2.9%[30]. Loan Performance - Total net charge-offs for Q4 2024 were $93 million, representing 2.38% of the average total loan portfolio in repayment (annualized)[10]. - Provisions for credit losses increased to $108 million in Q4 2024, compared to $16 million in Q4 2023[11]. - Delinquencies as a percentage of loans in repayment decreased to 3.68% in Q4 2024, down from 3.90% in Q4 2023[16]. - The total allowance for credit losses at the end of December 31, 2024, was $1,520,488 thousand, representing 5.83% of the ending total loan balance plus unfunded loan commitments[36]. - The percentage of loans current in repayment was 96.3% in 2024, up from 96.1% in 2023[47]. - The total loans delinquent for 30-59 days were $310,748, representing 1.9% of loans in repayment[47]. - The percentage of loans delinquent 30-59 days increased to 8% in 2024 from 4% in 2023, highlighting a deterioration in loan quality[50]. Loan Originations and Growth - Private education loan originations grew by 17% year-over-year in Q4 2024, with average loans outstanding increasing by 5% to $22.1 billion[16]. - The company expects GAAP diluted earnings per common share for 2025 to be in the range of $3.00 to $3.10, with private education loan originations projected to grow by 6% to 8% year-over-year[14]. - Total acquisitions and originations of Private Education Loans for the year ended December 31, 2024, were $7,064,230 thousand, compared to $6,426,421 thousand in 2023, marking an increase of 9.9%[56]. - Total Private Education Loan originations for the year ended December 31, 2024, reached $7,013,323, an increase from $6,383,330 in 2023, representing a growth of 9.9%[58]. Capital and Expenses - Total non-interest expenses in Q4 2024 were $150 million, a decrease from $202 million in Q4 2023[11]. - The total risk-based capital ratio was reported at 12.6%, with a CET1 capital ratio of 11.3%[11]. - The company repurchased 2.0 million shares in Q4 2024 for $46 million, with $402 million remaining under the 2024 Share Repurchase Program[10][19]. - Common Equity Tier 1 Capital to Risk-Weighted Assets ratio was 11.3% as of December 31, 2024, compared to 12.3% in 2023, indicating a slight decline in capital adequacy[63]. - Total Capital to Risk-Weighted Assets ratio stood at 12.6% in 2024, down from 13.6% in 2023, reflecting changes in the capital structure[63]. Asset and Liability Management - Total assets increased to $30,072,110 thousand in 2024 from $29,169,468 thousand in 2023, representing a growth of 3.1%[28]. - Total liabilities rose to $27,912,190 thousand in 2024 from $27,288,671 thousand in 2023, marking an increase of 2.3%[28]. - The ending balance for the allowance for unfunded loan commitments was $84,568 in 2024, down from $112,962 in 2023[44]. - The unrealized loss on available-for-sale investments was $83 million as of December 31, 2024, compared to $115 million in 2023, indicating an improvement in investment valuations[62]. Interest Income and Margin - Total interest income for 2024 was $2,619,046 thousand, up 1.0% from $2,592,303 thousand in 2023[29]. - Net interest margin for Q4 2024 was 4.92%, a decrease of 45 basis points from Q4 2023[11]. - The net interest margin for 2024 was 4.92%, down from 5.37% in 2023, showing a decline of 8.4%[32]. - Net interest income after provisions for credit losses decreased to $254,012 thousand in Q4 2024, down 31.4% from $370,287 thousand in Q4 2023[29]. Credit Quality and Risk Management - The allowance for loan losses, ending balance, was $1,435,920 thousand as of December 31, 2024[39]. - The company recorded a provision for loan losses of $80,533 thousand for the quarter ended December 31, 2024[36]. - The total allowance for credit losses increased to $1,435,920 thousand in 2024 from $1,339,772 thousand in 2023, indicating a rise of 7.2%[53]. - The Bank's allowance for credit losses increased by $1.1 billion due to the adoption of CECL, impacting retained earnings negatively by $953 million[60].

Core Viewpoint - Sallie Mae (SLM) reported a wider-than-expected loss per share of 23 cents for Q3 2024, compared to a profit of 11 cents in the same quarter last year, primarily due to declining net interest income and rising non-interest expenses [1][2] Financial Performance - The net interest income (NII) for Q3 was $359 million, a decrease of 6.8% year over year, missing the Zacks Consensus Estimate by 1.1% [2] - The net interest margin (NIM) was reported at 5%, down 53 basis points from the prior-year quarter [2] - Non-interest income remained flat at $24 million year over year [2] - Non-interest expenses increased by 1.2% year over year to $172 million, driven by higher compensation and benefits, as well as FDIC assessment fees [2] Credit Quality - Provisions for credit losses were $271 million, down 37% from the prior-year quarter [3] - Net charge-offs for private education loans were $77 million, a decrease of 22.3% year over year [3] - The percentage of net charge-offs for private education loans held for investment was 2.08%, contracting 45 basis points year over year [3] Balance Sheet Position - As of September 30, 2024, total deposits were $21.4 billion, down 0.5% year over year [4] - Private education loans held for investment increased to $20.5 billion, up 0.6% from the previous year [4] - Private education loan originations rose by 13% compared to the year-ago quarter [4] Share Repurchase - In Q3, SLM repurchased 5.3 million shares for $115 million under its 2024 share buyback program [5] 2024 Outlook - The company expects diluted earnings per share to be in the range of $2.70 to $2.80 [6] - Total loan portfolio net charge-offs are anticipated to be between $325 million and $340 million [6] - Private education loan originations are projected to grow by 8-9% year over year [6] - Non-interest expenses are expected to be between $635 million and $655 million [7] Overall Assessment - The overall financial performance of Sallie Mae appears decent, with robust loan origination and lower provisions for credit loss being positive factors, while declining NII and rising non-interest expenses present near-term challenges [7]

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SLM Corporation (NASDAQ:SLM) Q3 2024 Earnings Conference Call October 23, 2024 5:30 PM ET Company Participants Melissa Bronaugh - VP & Head, Investor Relations Jon Witter - CEO & Director Pete Graham - EVP & CFO Conference Call Participants Terry Ma - Barclays Sanjay Sakhrani - KBW Mark DeVries - Deutsche Bank Nate Richam - Bank of America Merrill Lynch Rick Shane - JPMorgan Jeff Adelson - Morgan Stanley Jon Arfstrom - RBC Capital Markets John Hecht - Jefferies Operator Welcome to the Sallie Mae Third Quart ...

Financial Performance - Net income attributable to SLM Corporation common stock for the three months ended September 30, 2024, was $(49,800) thousand, compared to $24,723 thousand for the same period in 2023[175]. - Diluted earnings per common share for the nine months ended September 30, 2024, was $2.18, up from $1.69 for the same period in 2023[175]. - For the three months ended September 30, 2024, the net loss attributable to common stock was $50 million, or $0.23 loss per common share, compared to a net income of $25 million, or $0.11 diluted earnings per common share for the same period in 2023[185]. - For the nine months ended September 30, 2024, net income attributable to common stock was $483 million, or $2.18 diluted earnings per common share, compared to $400 million, or $1.69 diluted earnings per common share for the same period in 2023[187]. Loan Portfolio and Originations - Total education loans, net, at the end of September 30, 2024, was $20,459,933 thousand, a decrease from $20,899,181 thousand at the end of September 30, 2023[175]. - The company originated $2,779,631 in loans during the three months ended September 30, 2024[199]. - Private Education Loan originations for the three months ended September 30, 2024, reached $2,758,529 thousand, up from $2,451,413 thousand in the same period of 2023, indicating an increase of approximately 12.5%[207]. - Total Private Education Loan originations for the nine months ended September 30, 2024, were $6,031,515 thousand, compared to $5,544,017 thousand in the same period of 2023, marking an increase of approximately 8.8%[208]. Credit Losses and Provisions - Provision for credit losses increased to $271 million in the current quarter from $198 million in the year-ago quarter, driven by new loan commitments[185]. - The provision for credit losses for the three months ended September 30, 2024, was $109,196 thousand, compared to $44,423 thousand in the same period of 2023, reflecting a significant increase of approximately 145%[210]. - Total provisions for credit losses reported in consolidated statements of operations for the nine months ended September 30, 2024, were $300,336 thousand, down from $329,864 thousand in 2023, a decrease of 9.0%[216]. - Provisions for loan losses in the current period for the nine months ended September 30, 2024, were $40,579 thousand, down from $60,328 thousand in 2023, a decrease of 32.8%[216]. Interest Income and Margin - Net interest income decreased by $26 million in the current quarter, primarily due to a 43-basis point decrease in net interest margin and a $238 million decrease in average Private Education Loans and FFELP Loans outstanding[185]. - Net interest margin for the three months ended September 30, 2024, is 5.00% compared to 5.43% for the same period in 2023[190]. - Interest income for the three months ended September 30, 2024, decreased by $25,225, with a change in rate contributing $(31,183) and volume contributing $5,958[192]. Operating Expenses - Total operating expenses for the third quarter of 2024 were $171 million, compared to $167 million in the year-ago quarter, primarily due to higher marketing and personnel costs[185]. - Total operating expenses for the first nine months of 2024 were $488 million, up from $476 million in the year-ago period, driven by higher personnel and marketing costs[187]. Securitization and Share Repurchase - The company executed a $668 million securitization transaction on May 15, 2024, raising approximately $668 million of gross proceeds[179]. - The company executed a $868 million securitization transaction on August 14, 2024, raising approximately $868 million of gross proceeds[180]. - The company repurchased 9.6 million shares of common stock at a total cost of $204 million during the nine months ended September 30, 2024[180]. Liquidity and Capital Management - The company holds a Secured Borrowing Facility with a borrowing capacity of $2 billion, with an extended revolving period until June 13, 2025[180]. - Unrestricted cash and liquid investments totaled $5.921 billion as of September 30, 2024, a decrease from $6.138 billion at December 31, 2023[238]. - The company targets maintaining sufficient on-balance sheet liquidity to meet all contractual obligations under various stress scenarios[237]. Regulatory and Risk Management - The bank's risk-based capital ratios exceeded the required minimums under U.S. Basel III as of September 30, 2024, with a Common Equity Tier 1 risk-based capital ratio above 7.0%[252]. - The bank's regulatory capital ratios exceeded all applicable standards to qualify as "well capitalized" under the prompt corrective action framework[255]. - The company uses interest rate swaps and derivatives to manage interest rate risk, aiming to match assets with debt that have the same underlying index[283]. Economic and Market Conditions - The Economic Value of Equity (EVE) sensitivity analysis shows a potential decrease of 21.3% under a +300 basis points shock scenario as of September 30, 2024[276]. - The funding gap for the SOFR rate category is $1,103.9 million, indicating a mismatch in funding and assets[281].

Exhibit 99.1 For Immediate Release NEWARK, Del., Oct. 23, 2024 - Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today released third-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 also announced an increase to its 2024 fourth-quarter dividend on its common stock from $0.11 to $0.13 per share. Sallie Mae furthe ...