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]

| --- | --- | --- | |----------------------------------|-------|-------| | | | | | | | | | Earnings | | | | Presentation 3 rd Quarter 2024 | | | | | | 1 | | --- ...

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 ...

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 ...

Sallie Mae (SLM) reported $372.17 million in revenue for the quarter ended June 2024, representing a year-over-year decline of 3.7%. EPS of $1.11 for the same period compares to $1.10 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $368.97 million, representing a surprise of +0.87%. The company delivered an EPS surprise of +40.51%, with the consensus EPS estimate being $0.79.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and ho ...