Salliemae(SLM)2025-01-23 21:36Financial 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].