Sallie Mae’s (SLM) rising average loan balance has been supporting NII growth. Strategic inorganic growth moves will expand its operations and diversify revenue streams. Overdependence on brokered deposits as a funding source and rising expenses are concerning.The dominant player in every phase of the student loan life cycle, providing the continuing competitive advantage of scale. Its operations are more dependent on students’ demand for educational loans. The low unemployment rate for the over-25-year-old ...

Investors might want to bet on Sallie Mae (SLM) , as it has been recently upgraded to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.The power of a changin ...

Sallie Mae’s (SLM) , formally SLM Corporation, first-quarter 2024 earnings per share of $1.27 surpassed the Zacks Consensus Estimate of $1.09. The bottom line compared favorably with the prior-year quarter’s 47 cents.Lower provisions for credit losses, robust loan originations and higher non-interest income were positives. However, a decline in the net interest income (NII) and a rise in non-interest expenses impeded the results.The company’s GAAP net income was $290 million compared with $119 million in th ...

Financial Data and Key Metrics Changes - GAAP diluted EPS for Q1 2024 was $1.27, up from $0.47 in Q1 2023, driven by strong business performance and credit trend improvements [4] - Loan originations increased by 6% year-over-year to $2.6 billion, with application volume growing by 4% [5] - Net interest income for Q1 2024 was $387 million, down 4% from the prior year, with a net interest margin of 5.5%, compared to 5.7% in the year-ago quarter [9][10] Business Line Data and Key Metrics Changes - The cosigner rate for loans in Q1 2024 was 91%, up from 89% in Q1 2023, and the average FICO score increased to 748 from 746 [6] - Net private education loan charge-offs were $83 million, or 2.14% of average loans in repayment, down 29 basis points from Q4 2023 [6] - Loans delinquent 30 days or more decreased to 3.4% of loans in repayment, consistent with the year-ago quarter [12] Market Data and Key Metrics Changes - Loans in disaster or hardship forbearance remained at 1% at the end of Q1 2024, consistent with Q1 2023 [7] - The company executed a $2.1 billion loan sale in Q1 2024, generating $143 million in gains, with expectations for additional loan sales throughout the year [7][8] Company Strategy and Development Direction - The company aims for balance sheet growth of 2% to 3% for the year and continues a capital return strategy through stock repurchases [8] - Management is preparing for a condensed peak season due to potential delays from the Department of Education's reforms and is enhancing staffing and digital capabilities [15][16] - The exit of a major competitor from the market is seen as an opportunity for new business, with expectations for a slight volume increase from former customers of that competitor [16] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the positive trends in credit performance and the successful loan sale execution, reaffirming guidance for 2024 [17] - The company is monitoring the impact of competitor exits and believes it will lead to new business opportunities during the peak season [16] Other Important Information - The company discontinued reporting non-GAAP core earnings, now using GAAP earnings for guidance calculations, with an unchanged guidance range of $2.60 to $2.70 for 2024 [9] - Operating expenses for Q1 2024 were $160 million, a 4% increase compared to the prior year, driven by increased application and disbursement volumes [13] Q&A Session All Questions and Answers Question: How did the quarter perform relative to original expectations? - Management indicated that the quarter was largely in line with expectations, maintaining guidance despite some positive trends [18][19] Question: What are the expectations for the reserve rate as credit metrics improve? - Management suggested that while they are not ready to specify a number, improvements in credit metrics should lead to modest improvements in the overall level of reserves [20][21] Question: What more needs to happen for confidence in updating guidance for the year? - Management expressed satisfaction with current loan modification program results but indicated a need for more seasoning before updating guidance [23][25] Question: How does the company view the impact of a competitor exiting the market? - Management noted that the exit of a competitor is expected to have a modest impact initially, with more significant effects anticipated during the peak season [30][32] Question: What is the outlook for net interest margin (NIM) given the yield curve? - Management indicated that the current rate environment is mildly beneficial for NIM, with expectations that NIM compression may not occur as quickly as previously anticipated [35] Question: How aggressive is the company on the share buyback program? - Management stated that they plan to be more programmatic with the buyback program throughout the year, assessing opportunities as they arise [52]

Sallie Mae (SLM) reported $387.02 million in revenue for the quarter ended March 2024, representing a year-over-year decline of 4.5%. EPS of $1.27 for the same period compares to $0.47 a year ago.The reported revenue represents a surprise of +2.81% over the Zacks Consensus Estimate of $376.43 million. With the consensus EPS estimate being $1.09, the EPS surprise was +16.51%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street ...

Earnings Presentation 1st Quarter 2024 ...

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 March 31, 2024 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) | --- | --- | |--------------------|-------------- ...

Exhibit 99.1 News Release For Immediate Release Sallie Mae Reports First-Quarter 2024 Financial Results NEWARK, Del., April 24, 2024 - Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today released first-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. 6% Private Education Loan Originations Growth from Year- Ago Quarter $2. ...

The market expects Sallie Mae (SLM) to deliver a year-over-year increase in earnings on lower revenues when it reports results for the quarter ended March 2024. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.The stock might move higher if these key numbers top expectations in the upcoming earnings report, which is expected to be released on ...

NEWARK, Del.--(BUSINESS WIRE)--Scholly founder Chris Gray is returning to where his unique journey as an entrepreneur began – ABC’s hit television show ‘Shark Tank’ – for an update on his company’s resounding success in connecting students across the country to millions of dollars in scholarships for college. In addition to reconnecting with Shark Tank investors Daymond John and Lori Greiner, Chris is joined by Sallie Mae’s Chief Commercial Officer Donna Vieira to highlight the education solutions company’s ...