Financial Performance - For the three months ended September 30, 2025, net income attributable to common stock was $132 million, or $0.63 diluted earnings per common share, compared to a net loss of $50 million, or $0.23 loss per common share for the same period in 2024[205]. - Net interest income for the three months ended September 30, 2025, was $373 million, an increase of 4% from $359 million in the same period of 2024[204]. - Total interest income for the three months ended September 30, 2025, was $658 million, a slight increase of 1% from $653 million in the prior year[204]. - Total non-interest income increased significantly to $173 million for the three months ended September 30, 2025, compared to $24 million in the same period of 2024, marking a 621% increase[204]. - The company reported a return on assets of 1.9% for the three months ended September 30, 2025, compared to a negative return of (0.6)% for the same period in 2024[199]. - Net income attributable to common stock for the nine months ended September 30, 2025, was $500 million, or $2.35 diluted earnings per share, compared to $483 million, or $2.18 diluted earnings per share, for the same period in 2024[214]. Credit Losses and Provisions - The provision for credit losses decreased by 34% to $179 million for the three months ended September 30, 2025, compared to $271 million for the same period in 2024[204]. - Provision for credit losses for the nine months ended September 30, 2025, was $351 million, up from $300 million in the year-ago period, influenced by new loan commitments and changes in the economic outlook[216]. - Provisions for loan losses for the three months ended September 30, 2025, were $24,704 thousand, a significant decrease of 77.3% from $109,196 thousand in the same period of 2024[237]. - Total provisions for credit losses reported in consolidated statements of income for the three months ended September 30, 2025, were $179,462 thousand, down from $271,465 thousand in 2024, a decrease of 33.9%[237]. - The allowance for Private Education Loan losses increased to $1,526,104 thousand as of September 30, 2025, compared to $1,413,621 thousand in 2024, reflecting a growth of approximately 7.9%[235]. Loan Performance - Ending private education loans, net, stood at $21.62 billion as of September 30, 2025, compared to $20.46 billion as of September 30, 2024[199]. - Total Private Education Loan originations for the three months ended September 30, 2025, amounted to $2,936,393, a 6.5% increase from $2,758,529 in the same period of 2024[234]. - The percentage of loans with a cosigner increased to 94.5% for the three months ended September 30, 2025, compared to 92.4% for the same period in 2024[234]. - The average FICO score at approval for loans in the three months ended September 30, 2025, was 756, up from 754 in the same period of 2024[234]. - The percentage of Private Education Loans in repayment was 70.7% as of September 30, 2025, slightly increasing from 70.5% in 2024[242]. - Delinquencies as a percentage of Private Education Loans in repayment rose to 4.0% at September 30, 2025, compared to 3.6% at September 30, 2024[243]. Operating Expenses - Total operating expenses increased to $180 million in the third quarter of 2025 from $171 million in the year-ago quarter, mainly due to higher marketing spend[211]. - Total operating expenses for the first nine months of 2025 were $499 million, an increase from $488 million in the year-ago period, primarily due to increased marketing and IT spending[220]. Dividends and Shareholder Returns - The company declared dividends per common share of $0.13 for the three months ended September 30, 2025, an increase of 18% from $0.11 in the same period of 2024[204]. - The Bank declared dividends of $100 million and $294 million for the three and nine months ended September 30, 2025, respectively, compared to $116 million and $414 million for the same periods in 2024[297]. Liquidity and Capital Management - The company maintains total unrestricted cash and liquid investments of $4,671,680 thousand as of September 30, 2025, down from $6,061,797 thousand as of December 31, 2024[272]. - The Bank's risk-based capital ratios exceeded the required minimums under U.S. Basel III as of September 30, 2025, indicating strong capital management[290]. - The Common Equity Tier 1 risk-based capital ratio was maintained above the required 4.5%, with a capital conservation buffer exceeding 2.5%[291]. - The Bank's Tier 1 Capital to Average Assets ratio is 10.4% as of September 30, 2025, exceeding the minimum requirement of 4.0%[296]. Interest Rate Risk and Sensitivity - The company has a significant portion of earning assets indexed to the 30-day average SOFR, which is a core rate in interest rate risk analysis[319]. - The Earnings at Risk (EAR) analysis indicates a potential decrease in net interest income of -11.4% under a +300 basis points shock scenario[322]. - The Economic Value of Equity (EVE) sensitivity shows a potential decrease of -24.0% under a +300 basis points shock scenario as of September 30, 2025[322]. - Interest rate swaps and derivatives are utilized to align assets with debt, mitigating interest rate risk[327].
SLM Corporation(SLMBP) - 2025 Q3 - Quarterly Report