Core Viewpoint - Sallie Mae reported quarterly earnings of $0.32 per share, missing the Zacks Consensus Estimate of $0.49 per share, and a significant decline from $1.11 per share a year ago, indicating an earnings surprise of -34.69% [1] Financial Performance - The company posted revenues of $376.82 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.45% and showing a slight increase from $372.17 million year-over-year [2] - Over the last four quarters, Sallie Mae has exceeded consensus revenue estimates two times [2] Stock Performance - Sallie Mae shares have increased approximately 19.7% since the beginning of the year, outperforming the S&P 500's gain of 8.1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.62 on revenues of $387.17 million, and for the current fiscal year, it is $3.11 on revenues of $1.54 billion [7] - The outlook for the Financial - Consumer Loans industry, where Sallie Mae operates, is currently in the bottom 22% of Zacks industries, which may impact stock performance [8]

Financial Data and Key Metrics Changes - GAAP diluted EPS for Q2 2025 was $0.032 per share, with loan originations at $686 million, roughly in line with the same period last year [5][6] - Net interest income for Q2 2025 was $377 million, up $5 million from the prior year, with a net interest margin of 5.31% [11] - Provision for credit losses increased to $149 million in Q2 2025 from $17 million in the prior year, reflecting a more cautious macroeconomic outlook [12][13] - Private education loans delinquent for 30 days or more were 3.5%, a decrease from 3.6% at the end of Q1 2025, but higher than 3.3% a year ago [13] Business Line Data and Key Metrics Changes - The credit quality of originations showed improvement, with a cosigner rate of 84%, up from 80% year-over-year, and average FICO at approval rising to 754 from 752 [8] - Non-interest expenses for Q2 2025 were $67 million, significantly lower than $155 million in the prior quarter and $159 million a year ago [15] Market Data and Key Metrics Changes - The recently passed federal student loan reforms are expected to create an additional $4.5 billion to $5 billion in annual private education loan origination volume for Sallie Mae once fully implemented [20][21] - The reforms will take effect on July 1, 2026, and are anticipated to have a muted impact in 2026, with larger effects expected in 2027 and beyond [19][21] Company Strategy and Development Direction - The company aims for mid to high single-digit growth in its private student loan portfolio, supported by loan sales and other funding strategies [23] - Sallie Mae is exploring new alternative funding partnerships in the private credit space to enhance capital efficiency and predictable returns [22][49] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for private student lending, particularly due to federal student loan reforms [5][18] - The company is closely monitoring the impacts of federal lending reforms and other macroeconomic factors on its business [6][12] Other Important Information - The company repurchased 2.4 million shares at an average price of $29.42 per share, reducing shares outstanding by over 53% since the buyback strategy began in 2020 [9] - The liquidity ratio at the end of Q2 2025 was 17.8%, with total risk-based capital at 12.8% and common equity Tier one capital at 11.5% [16] Q&A Session Summary Question: Can you provide details on the $1.8 billion loan sale and gain on sale margin? - The pricing for the loan sale is in line with expectations, though slightly adjusted from earlier in the year due to changes in the rates environment [25] Question: Should we expect another loan sale in Q4 2025? - The company will monitor the peak season and evaluate capital levels before deciding on a potential sale [26] Question: Can you explain the uptick in net charge-off rates? - The increase is attributed to disaster forbearance related to the California wildfires, which shifted some charge-off timing [27][30] Question: How do you view the potential upside from federal lending changes? - The company believes the reforms could significantly increase private loan origination volumes, with a focus on maintaining market share [34][60] Question: What is the expected timing for new private credit partnerships? - The goal is to have partnerships in place before the additional volume from federal reforms begins [66] Question: How will the new market opportunity affect competition? - The company is confident in its ability to compete effectively, leveraging strong relationships and data insights [63]

Financial Data and Key Metrics Changes - GAAP diluted EPS for Q2 2025 was $0.032 per share, with loan originations at $686 million, roughly in line with the same period last year [6][10] - Net interest income for Q2 2025 was $377 million, up $5 million from the prior year, with a net interest margin of 5.31% [11] - Provision for credit losses increased to $149 million in Q2 2025 from $17 million in the prior year, reflecting a more cautious macroeconomic outlook [12] - Private education loans delinquent for 30 days or more were 3.5%, a decrease from 3.6% at the end of Q1 2025 [13] Business Line Data and Key Metrics Changes - The credit quality of originations showed improvement, with a cosigner rate of 84%, up from 80% in the year-ago quarter [8] - Net private education loan charge-offs in Q2 were $94 million, representing 2.36% of average loans in repayment, an increase of 17 basis points year-over-year [14] - Non-interest expenses for Q2 were $67 million, significantly lower than $155 million in the prior quarter and $159 million in the year-ago quarter [15] Market Data and Key Metrics Changes - The company anticipates that new federal lending limits could generate an additional $4.5 billion to $5 billion in annual private education loan origination volume once fully realized [21] - The reforms will take effect on July 1, 2026, with existing borrowers grandfathered into current programs, potentially impacting near-term originations [20] Company Strategy and Development Direction - The company plans to maintain a strategy of mid to high single-digit private student loan portfolio growth, supported by loan sales and other structures [24] - The management is exploring new alternative funding partnerships in the private credit space to support growth while preserving balance sheet capacity [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the long-term outlook for private student lending, particularly due to recent federal student loan reforms [6][19] - The company is closely monitoring the impacts of federal lending reforms and other policy developments on its business [7][20] Other Important Information - The company repurchased 2.4 million shares at an average price of $29.42 per share, reducing shares outstanding by over 53% since the start of the buyback strategy in 2020 [9] - The liquidity ratio at the end of Q2 was 17.8%, with total risk-based capital at 12.8% and common equity Tier 1 capital at 11.5% [16] Q&A Session Summary Question: Can you discuss the $1.8 billion loan sale and gain on sale margin? - The company is in line with expectations for the transaction, with modest adjustments in pricing due to changes in the rates environment [26] Question: Should we expect another loan sale in Q4 2025? - The company will monitor the peak season and evaluate capital levels before deciding on additional sales [27] Question: Can you explain the uptick in net charge-off rates? - The increase is attributed to disaster forbearance related to the California wildfires, which shifted some charge-off timing [28][30] Question: How does the new federal lending reform impact your growth algorithm? - The company maintains its growth framework but may trend towards higher growth rates due to the new opportunities presented by the reforms [34] Question: What is the expected market share for the new addressable market? - The company expects to maintain a market share in the 60% range for the new opportunities presented by the reforms [58] Question: What is the timing for the new private credit partnerships? - The company aims to have partnerships in place before the additional volume from reforms comes into effect [65]

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]