SLM Corporation(JSM) - 2025 Q3 - Quarterly Results

Financial Performance - Navient reported a GAAP net loss of $86 million, translating to a diluted loss per share of $0.87 for Q3 2025[3]. - Core Earnings net loss was $83 million, with a diluted loss per share of $0.84, impacted by a $168 million provision for loan losses[3]. - Net income for Q3 2025 was $(86) million, a decrease from $14 million in Q2 2025 and $(2) million in Q3 2024[19]. - Diluted earnings per share for Q3 2025 was $(0.87), compared to $0.13 in Q2 2025 and $(0.02) in Q3 2024[21]. - The company reported a significant increase in net income (loss) before income tax expense to $(117) million in Q3 2025, down from $18 million in Q2 2025 and $12 million in Q3 2024[21]. - For the three months ended September 30, 2025, the net loss was $86 million, or $0.87 diluted loss per common share, compared to a net loss of $2 million, or $0.02 diluted loss per common share for the same period in 2024[24]. - The net loss for the nine months ended September 30, 2025, was $75 million, or $0.75 diluted loss per share, compared to net income of $107 million, or $0.95 diluted earnings per share for the same period last year[29]. Loan Performance - The Federal Education Loans segment generated a net income of $35 million, with a net interest margin of 0.84%[4]. - Consumer Lending segment reported a net loss of $76 million, with a significant increase in provision for loan losses to $155 million, primarily due to elevated delinquency balances[9]. - The greater than 90-days delinquency rate for Private Education Loans was 2.8%, reflecting an increase from the previous year[9]. - Provisions for loan losses increased significantly to $168 million in Q3 2025, compared to $37 million in Q2 2025 and $42 million in Q3 2024[21]. - The allowance for loan losses increased to $186 million for FFELP Loans and $406 million for Private Education Loans as of September 30, 2025[23]. - The total provision for loan losses was $68 million, with a gross charge-off of $301 million during the period[39]. - The net charge-offs for Private Education Loans were $29 million, representing 0.14% of average loans in repayment, while FFELP Loans had net charge-offs of $261 million, or 2.15%[39]. Revenue and Income - Total interest income for Q3 2025 was $781 million, a slight increase from $778 million in Q2 2025 but a decrease of $167 million (18%) from $948 million in Q3 2024[21]. - Net interest income after provisions for loan losses was $(26) million in Q3 2025, down from $91 million in Q2 2025 and $78 million in Q3 2024[21]. - The company reported interest income of $2.361 billion for the three months ended September 30, 2025, a decrease of $587 million or 20% from the previous year[22]. - The company reported a total of $4 million in net impact from derivative accounting adjustments for the quarter[56]. - Total other income for the quarter was $19 million, with servicing revenue accounting for $13 million[54]. Expenses and Liabilities - Operating expenses totaled $105 million, with $6 million related to transition services from strategic initiatives[4]. - Total expenses for the quarter were $110 million, including direct operating expenses of $61 million and unallocated shared services expenses of $44 million[54]. - Total liabilities were $46.867 billion as of September 30, 2025, compared to $50.746 billion a year prior[23]. - The company’s total equity decreased to $2.439 billion as of September 30, 2025, down from $2.694 billion a year earlier[23]. Shareholder Actions - The company repurchased $26 million of common shares and authorized a new $100 million share repurchase program[4]. - The company repurchased 2.0 million shares of common stock for $26 million in Q3 2025, with $26 million of unused share repurchase authority remaining[43]. - The company repurchased 6.4 million shares during the nine months ended September 30, 2025, resulting in a decrease of 12 million average outstanding diluted shares (or 11%) from the year-ago period[32]. Strategic Initiatives - The company is focusing on market expansion and new product development as part of its strategic initiatives moving forward[66]. - The company expects to fund ongoing liquidity needs through cash on hand, operating cash flows, and potential additional debt issuance[42].