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 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q Delaware 52- 2013874 (State or other jurisdiction of incorporation or organization) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common stock, par value $.20 per share SLM The NASDAQ Global Select Market Floating Rate Non-Cumulative Preferred Stock, Series B, par value $.20 per shareSLMBP The NASDAQ Global Select Market (Mark One) ☑ ...

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 ...

Sallie Mae’s (SLM) growth in average loan balance has been supporting NII. Strategic inorganic growth moves will expand its operations and diversify revenue streams. Lower liquidity and rising expenses are a concern.Shares of Sallie Mae have increased 54.8% compared with the industry growth of 43.9% in the past year. Its 2024 earnings estimate has revised upward in the past 60 days.Image Source: Zacks Investment ResearchFactors Driving Salie Mae StockThe company is a dominant player in every phase of the st ...

The Zacks Consumer Loans industry continues to witness weakening asset quality. The companies are also bearing the brunt of inflation, higher rates and expectations of economic slowdown. Though the Federal Reserve plans to cut rates as soon as September, consumers understand that high interest rates are here to stay for some time, and demand for the loans is likely to witness modest improvement. Easing lending standards, stabilizing consumer sentiments and digitization of operations will aid consumer loan p ...

cogalWhat a difference a year makes. When I first wrote about the preferred share listing for education loan provider SLM Corporation (NASDAQ:SLMBP) in August last year, its price returns were positive even as the stock’s main listing (NASDAQ:SLM) was dropping. While SLMBP’s returns over the past year are still healthy, the main listing has done even better (see chart below). Price Returns, SLMBP and SLM (Source: Seeking Alpha)There’s a very good reason for this. SLMBP’s unique selling point is its div ...

SLM Corporation (NASDAQ:SLM) Q2 2024 Earnings Conference Call July 24, 2024 5:30 PM ET Company Participants Melissa Bronaugh - VP & Head of Investor Relations Jon Witter - CEO & Director Pete Graham - Executive VP & CFO Conference Call Participants Moshe Orenbuch - TD Cowen Sanjay Sakhrani - KBW Mark DeVries - Deutsche Bank Terry Ma - Barclays Michael K - Wells Fargo Jeff Adelson - Morgan Stanley Rick Shane - JPMorgan John Hecht - Jefferies Jon Arfstrom - RBC Capital Markets Giuliano Bologna - Compass Point ...