Salliemae(US:SLM)2026-01-22 21:32Financial Performance - GAAP diluted earnings per common share for full-year 2025 was $3.46, representing a 29% increase from $2.68 in 2024[9] - Net income for the quarter ended December 31, 2025, was $233,185 thousand, compared to $111,553 thousand for the same quarter in 2024, representing an increase of 109.1%[22] - Basic earnings per common share increased to $1.14 in Q4 2025 from $0.51 in Q4 2024, a rise of 123.5%[22] - Total comprehensive income for the year ended December 31, 2025, was $770,580 thousand, compared to $617,568 thousand in 2024, an increase of 24.7%[23] Loan Originations and Growth - Private education loan originations grew by 6% in 2025 compared to 2024, with a total of $1,014 million in loan sales[9] - The company expects GAAP diluted earnings per common share for 2026 to be between $2.70 and $2.80, with private education loan originations projected to grow by 12% to 14% year-over-year[9] - Total Private Education Loan originations for the quarter ended December 31, 2025, reached $1,022,850,000, a 4.2% increase from $981,808,000 in the same quarter of 2024[52] - For the year ended December 31, 2025, total Private Education Loan originations amounted to $7,416,323,000, representing a 5.8% increase from $7,013,323,000 in 2024[52] Asset and Liability Management - Total assets decreased from $30,072,110 thousand in 2024 to $29,746,295 thousand in 2025, a decline of approximately 1.08%[21] - Total liabilities decreased from $27,912,190 thousand in 2024 to $27,294,937 thousand in 2025, a reduction of about 2.2%[21] - Total equity increased from $2,159,920 thousand in 2024 to $2,451,358 thousand in 2025, an increase of 13.5%[21] Credit Quality and Provisions - Total net charge-offs as a percentage of average loans in repayment was 2.15% for 2025, down from 2.38% in 2024[9] - The provision for credit losses decreased significantly from $108,179 thousand in Q4 2024 to $18,779 thousand in Q4 2025, a reduction of 82.7%[22] - The total allowance for credit losses at the end of Q4 2025 was $1,507,450 thousand, representing 6.00% of private education loan exposure[32] - The total provisions for credit losses reported in the consolidated statements of income for the year ended December 31, 2025, were $332,687,000[37] Share Repurchase and Capital Management - The company repurchased 12.8 million shares for $373 million in 2025, with an additional 3.8 million shares repurchased for $106 million in Q4 2025[9] - The board of directors approved a new $500 million share repurchase program, expected to be completed over approximately 24 months[4] - As of December 31, 2025, the company had $33 million of capacity remaining under the 2024 share repurchase program[13] Interest Income and Margin - The net interest margin for Q4 2025 was 5.21%, an increase of 29 basis points from Q4 2024[12] - Net interest income after provisions for credit losses increased to $395,836 thousand in Q4 2025 from $254,012 thousand in Q4 2024, a growth of 55.8%[22] - Total interest-earning assets for Q4 2025 were $28,736,661 thousand, with a net interest margin of 5.21%[32] Loan Performance Metrics - The percentage of loans in repayment increased to 73.4% in 2025 from 72.4% in 2024, with total loans in repayment amounting to $15,894,827[42] - Delinquencies as a percentage of Private Education Loans in repayment rose to 4.0% in 2025 from 3.7% in 2024, with 151,114 loans 90 days or greater past due[42] - The average FICO score at approval for loans in 2025 was 755, slightly up from 752 in 2024[52] Other Financial Metrics - Non-interest expenses for 2025 totaled $659 million, an increase from $642 million in 2024[9] - Average common shares outstanding decreased from 210,741 thousand in 2024 to 201,612 thousand in 2025, a decline of approximately 4.9%[22] - Interest-bearing deposits as of December 31, 2025, totaled $21,059,967,000, with a weighted average rate of 3.83%, compared to $21,066,752,000 at a rate of 4.27% in 2024[53]