SLM Corporation Earnings Presentation Fourth Quarter 2023 ...

Analysts on Wall Street project that Sallie Mae (SLM) will announce quarterly earnings of $0.87 per share in its forthcoming report, representing an increase of 363.6% year over year. Revenues are projected to reach $379.2 million, declining 0.6% from the same quarter last year.The current level reflects a downward revision of 12.9% in the consensus EPS estimate for the quarter over the past 30 days. This demonstrates how the analysts covering the stock have collectively reappraised their initial projection ...

The market expects Sallie Mae (SLM) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended December 2023. 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 ...

NEWARK, Del.--(BUSINESS WIRE)--Sallie Mae® (Nasdaq: SLM), formally SLM Corporation, will release fourth-quarter and full-year 2023 financial results after market close on Wednesday, Jan. 24, 2024. A live audio webcast and presentation slides will be available at SallieMae.com/investors and the hosting website on Wednesday, Jan. 24, 2024, at 5:30 p.m. ET. Investors should log in at least 15 minutes prior to the broadcast. The earnings news release will be available at SallieMae.com/investors. A replay will ...

SLM Corporation (NASDAQ:SLM) Q3 2023 Results Conference Call October 26, 2023 8:00 AM ET Company Participants Melissa Bronaugh - VP & Head of Investor Relations Jonathan Witter - CEO & Director Steven McGarry - Executive VP & CFO Peter Graham - Executive Vice President Conference Call Participants Michael Kaye - Wells Fargo Sanjay Sakhrani - KBW Rick Shane - JPMorgan Jeff Adelson - Morgan Stanley Arren Cyganovich - Citi Jordan Hymowitz - Philadelphia Financial Operator Good day, and thank you for standing b ...

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 September 30, 2023 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 | | ...

SLM Corp. (NASDAQ:SLM) Q2 2023 Earnings Conference Call July 27, 2023 8:00 AM ET Company Participants Melissa Bronaugh - VP & Head, IR Jonathan Witter - CEO & Director Steven McGarry - EVP & CFO Conference Call Participants Jeffrey Adelson - Morgan Stanley Richard Shane - JPM Michael Kaye - Wells Fargo Steven Kwok - KBW Arren Cyganovich - Citi Operator Hello. And thank you for standing by. Welcome to Sallie Mae Second Quarter 2023 Earnings Conference Call. [Operator Instructions]. I would now like to hand t ...

SLM Corporation Earnings Presentation Second Quarter 2023 ...

[Part I. Financial Information](index=3&type=section&id=Part%20I.%20Financial%20Information) This part presents the company's unaudited financial statements, supporting notes, and management's analysis [Financial Statements](index=3&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited consolidated balance sheets, income statements, and cash flow statements for the period Consolidated Balance Sheet Summary (Unaudited) | (In thousands) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | **Total Assets** | **$27,708,403** | **$28,811,029** | | Cash and cash equivalents | $3,875,758 | $4,616,117 | | Loans held for investment, net | $19,219,518 | $19,626,868 | | **Total Liabilities** | **$25,902,039** | **$27,084,059** | | Deposits | $20,361,485 | $21,448,071 | | Long-term borrowings | $5,213,698 | $5,235,114 | | **Total Equity** | **$1,806,364** | **$1,726,970** | Consolidated Income Statement Highlights (Unaudited) | (In thousands, except per share) | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $386,631 | $362,808 | $791,699 | $737,840 | | Provisions for credit losses | $17,729 | $30,545 | $131,841 | $128,595 | | Gains on sales of loans, net | $124,754 | $239,997 | $124,745 | $249,878 | | Total non-interest expenses | $156,409 | $134,147 | $313,220 | $266,886 | | **Net Income** | **$265,065** | **$342,073** | **$383,583** | **$470,885** | | **Diluted EPS** | **$1.10** | **$1.29** | **$1.56** | **$1.72** | Comprehensive Income Summary (Unaudited) | (In thousands) | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | :--- | :--- | | Net Income | $265,065 | $342,073 | $383,583 | $470,885 | | Other comprehensive income (loss), net of tax | ($5,231) | ($24,485) | $10,306 | ($46,102) | | **Total Comprehensive Income** | **$259,834** | **$317,588** | **$393,889** | **$424,783** | - Total equity increased to **$1.81 billion** at June 30, 2023, from **$1.73 billion** at December 31, 2022, driven by net income of **$384 million** and partially offset by common stock repurchases of **$257 million**[24](index=24&type=chunk) - In the six months ended June 30, 2023, the company repurchased **16.4 million shares** of common stock for **$257.4 million**[24](index=24&type=chunk) Cash Flow Summary (Unaudited) | (In thousands) | Six Months Ended June 30, 2023 | Six Months Ended June 30, 2022 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | ($58,146) | $2,499 | | Net cash provided by investing activities | $760,032 | $1,357,996 | | Net cash used in financing activities | ($1,448,379) | ($2,109,084) | | **Net decrease in cash, cash equivalents and restricted cash** | **($746,493)** | **($748,589)** | [Notes to the Financial Statements](index=12&type=section&id=Notes%20to%20the%20Financial%20Statements) Provides detailed disclosures on accounting policies, investments, loans, credit losses, and capital Available-for-Sale Investments (June 30, 2023) | (In thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | | :--- | :--- | :--- | :--- | :--- | | Mortgage-backed securities | $419,251 | $1 | ($66,340) | $352,912 | | U.S. government sponsored enterprises and Treasuries | $1,708,890 | $0 | ($103,082) | $1,605,808 | | Other securities | $432,215 | $129 | ($21,273) | $411,071 | | **Total** | **$2,563,816** | **$130** | **($191,100)** | **$2,372,846** | - The company holds investments in Low Income Housing Tax Credit (LIHTC) projects with a carrying value of **$76 million** at June 30, 2023, which generate returns primarily through federal tax credits[49](index=49&type=chunk) Loans Held for Investment, Net | (In thousands) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Total Private Education Loans, net | $18,648,904 | $19,019,713 | | Total FFELP Loans, net | $570,614 | $607,155 | | **Loans held for investment, net** | **$19,219,518** | **$19,626,868** | - In the first six months of 2023, the company sold approximately **$2.10 billion** of Private Education Loans, resulting in gains of **$128 million**[54](index=54&type=chunk) - The company sold its Credit Card loan portfolio in May 2023, which had been classified as held for sale, resulting in a recorded loss of **$4 million** in the second quarter of 2023[58](index=58&type=chunk) Allowance for Credit Losses Activity (Q2 2023) | (In thousands) | Private Education Loans | Total | | :--- | :--- | :--- | | Beginning balance | $1,475,379 | $1,479,306 | | Total provisions | ($40,429) | ($40,339) | | Net charge-offs | ($102,844) | ($102,439) | | **Ending Balance** | **$1,360,294** | **$1,364,716** | - In Q2 2023, the company changed its collection strategy for defaulted loans and will no longer sell them, which improved the estimate of recovery rates[72](index=72&type=chunk) - Key credit quality indicators for the Private Education Loan portfolio include FICO scores, the presence of a cosigner, loan status, and seasoning; as of June 30, 2023, **87% of the portfolio had a cosigner**[100](index=100&type=chunk)[101](index=101&type=chunk) Deposit Composition | (In thousands) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Money market | $10,246,170 | $10,977,242 | | Savings | $923,330 | $982,586 | | Certificates of deposit | $9,189,461 | $9,486,819 | | **Total interest-bearing deposits** | **$20,358,961** | **$21,446,647** | - At June 30, 2023, total deposits of **$20.4 billion** were comprised of **$8.7 billion** in brokered deposits and **$11.7 billion** in retail and other deposits[122](index=122&type=chunk) - On March 15, 2023, the company executed a **$579 million** SMB Private Education Loan Trust 2023-A term ABS transaction, accounted for as a secured financing[134](index=134&type=chunk) - On May 16, 2023, the company amended its Secured Borrowing Facility, extending the revolving period to May 15, 2024; the facility has a capacity of **$2 billion** and had no outstanding balance at quarter-end[132](index=132&type=chunk) Common Stock Repurchases (Q2 2023) | Period | Total Shares Purchased (in actuals) | Average Price per Share | | :--- | :--- | :--- | | Q2 2023 | 16,389,696 | $15.71 | - At June 30, 2023, there was **$326 million** of capacity remaining under the 2022 Share Repurchase Program, which expires on January 25, 2024[169](index=169&type=chunk) Sallie Mae Bank Capital Ratios (June 30, 2023) | Ratio | Actual | Minimum Requirement + Buffer | | :--- | :--- | :--- | | Common Equity Tier 1 Capital | 12.8% | > 7.0% | | Tier 1 Capital | 12.8% | > 8.5% | | Total Capital | 14.1% | > 10.5% | | Tier 1 Leverage | 10.2% | > 4.0% | - The Bank declared **$300 million** in dividends to the parent company, SLM Corporation, during the second quarter of 2023, primarily to fund share repurchases and stock dividends[191](index=191&type=chunk) - On July 21, 2023, the company acquired key assets of Scholly, Inc, a scholarship publishing and servicing platform, to support its mission of helping students navigate higher education[198](index=198&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=53&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Analyzes financial results, condition, liquidity, and capital resources for the reporting period - Net interest income increased by **$24 million** in Q2 2023 compared to Q2 2022, driven by a **23-basis point increase** in net interest margin as assets repriced faster than funding costs[233](index=233&type=chunk) - Gains on sales of loans decreased to **$125 million** in Q2 2023 from **$240 million** in Q2 2022, primarily due to lower sales premiums attributable to higher interest rates[235](index=235&type=chunk) - The provision for credit losses was **$18 million** in Q2 2023, down from **$31 million** in Q2 2022, influenced by a **$137 million** negative provision from loan sales and an improved recovery rate estimate[234](index=234&type=chunk) Net Interest Margin | | Three Months Ended June 30, 2023 | Three Months Ended June 30, 2022 | | :--- | :--- | :--- | | **Net Interest Margin** | **5.52%** | **5.29%** | - Private Education Loan originations for the first six months of 2023 were **$3.1 billion**, an increase from **$2.8 billion** in the same period of 2022, with **86.3%** of these loans having a cosigner[273](index=273&type=chunk) - Delinquencies as a percentage of Private Education Loans in repayment remained stable at **3.7%** at June 30, 2023, the same as June 30, 2022, while the forbearance rate decreased slightly to **1.2%**[282](index=282&type=chunk) Sources of Liquidity (Ending Balances) | (In thousands) | June 30, 2023 | December 31, 2022 | | :--- | :--- | :--- | | Unrestricted cash (Sallie Mae Bank) | $3,875,979 | $4,617,533 | | Available-for-sale investments | $1,961,776 | $2,012,901 | | **Total unrestricted cash and liquid investments** | **$5,837,755** | **$6,630,434** | - The company's total deposits were **$20.4 billion** at June 30, 2023, a decrease from **$21.4 billion** at year-end 2022, consisting of **$8.7 billion** in brokered deposits and **$11.7 billion** in retail and other deposits[307](index=307&type=chunk) - Sallie Mae Bank's Common Equity Tier 1 capital ratio was **12.8%** as of June 30, 2023, well above the **7.0%** minimum requirement including the capital conservation buffer[334](index=334&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=83&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) Details the company's management of interest rate risk using EAR and EVE sensitivity analyses Interest Rate Sensitivity Analysis (As of June 30, 2023) | Scenario | Earnings at Risk (EAR) - Shock | Economic Value of Equity (EVE) | | :--- | :--- | :--- | | +300 Basis Points | -0.5% | -18.4% | | +100 Basis Points | -0.1% | -6.5% | | -100 Basis Points | 0.0% | +6.5% | | -300 Basis Points | -0.3% | +19.0% | [Controls and Procedures](index=86&type=section&id=Item%204.%20Controls%20and%20Procedures) Confirms the effectiveness of disclosure controls and internal control over financial reporting - Management concluded that as of June 30, 2023, the company's disclosure controls and procedures were **effective**[361](index=361&type=chunk) - No changes in internal control over financial reporting occurred during the quarter that materially affected, or are reasonably likely to materially affect, internal controls[362](index=362&type=chunk) [Part II. Other Information](index=87&type=section&id=PART%20II.%20Other%20Information) Covers legal proceedings, risk factors, and details on stock repurchase activities [Legal Proceedings](index=87&type=section&id=Item%201.%20Legal%20Proceedings) Discloses that the company is subject to various legal matters in the normal course of business - The company is subject to various claims, lawsuits, and regulatory inquiries that arise in the normal course of business[365](index=365&type=chunk) [Risk Factors](index=87&type=section&id=Item%201A.%20Risk%20Factors) Refers to the risk factors disclosed in the company's 2022 Annual Report on Form 10-K - The report refers to the risk factors previously disclosed in the 2022 Form 10-K[367](index=367&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=87&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) Details common stock repurchases executed during the second quarter of 2023 Share Repurchases (Q2 2023) | (In thousands, except per share data) | Total Shares Purchased | Average Price Paid per Share | Approx. Dollar Value Remaining for Repurchase | | :--- | :--- | :--- | :--- | | **Total Q2 2023** | **16,518** | **$15.70** | **$326,000** |

Investor Presentation st Forward-Looking Statements and Disclaimer Cautionary Note Regarding Forward-Looking Statements The following information is current as of April 26, 2023 (unless otherwise noted) and should be read in connection with the press release of SLM Corporation (the “Company”) announcing its financial results for the quarter ended March 31, 2023, the Form 10-Q for the quarter ended March 31, 2023, filed with the Securities and Exchange Commission (“SEC”) on April 26, 2023, and subsequent rep ...