SLM Corporation(US:JSM)2026-01-27 22:44Financial Performance - GAAP net loss for Q4 2025 was $5 million, translating to a diluted loss per share of $0.06, while core earnings showed a net income of $2 million or $0.02 diluted earnings per share [3]. - For the full year 2025, GAAP net loss totaled $80 million ($0.81 diluted loss per share), with core earnings reflecting a net loss of $35 million ($0.35 diluted loss per share) [3]. - Net income for Q4 2025 was a loss of $5 million, compared to a loss of $86 million in Q3 2025 and a profit of $24 million in Q4 2024 [21]. - Diluted earnings per share for Q4 2025 was $(0.06), a decrease from $(0.87) in Q3 2025 and an increase from $0.22 in Q4 2024 [23]. - Net income for 2025 was $(80) million, compared to $131 million in 2024, representing a decrease of 161% [24]. - The company reported a net loss of $80 million for the year, compared to a net income of $45 million in the previous period [61]. Revenue and Income - Total interest income for Q4 2025 was $746 million, down 4% from $781 million in Q3 2025 and down 13% from $862 million in Q4 2024 [23]. - Total interest income for the year ended December 31, 2025, was $3,108 million, with education loans contributing $3,025 million [61]. - Total other income for the year was $91 million, with servicing revenue accounting for $51 million [61]. - Total other income (loss) was $19 million, with servicing revenue contributing $11 million [56]. Loan Performance - The Consumer Lending segment incurred a provision for loan losses of $43 million, with $34 million attributed to macroeconomic outlook and delinquency trends [3]. - The provision for loan losses in the Federal Education Loans segment decreased to $1 million from $7 million year-over-year, reflecting stable credit trends [6]. - Net charge-offs in the Consumer Lending segment rose to $86 million, up from $71 million in the previous year [11]. - The provision for Private Education Loan losses increased to $43 million in the current period, up from $38 million in the year-ago quarter, primarily due to macroeconomic outlook and delinquency trends [28]. - Net charge-offs for the quarter were $101 million, with $14 million for FFELP loans and $87 million for Private Education loans, resulting in a net charge-off percentage of 0.23% and 2.26% respectively [39]. - The allowance for loan losses at the end of the period (GAAP) was $537 million, consisting of $173 million for FFELP loans and $364 million for Private Education loans [39]. Expenses and Cost Management - Total expenses decreased to $100 million in Q4 2025, down 9% from $110 million in Q3 2025 and down 34% from $152 million in Q4 2024 [23]. - Operating expenses decreased by $259 million, primarily due to the sale of the government services business and a decline in regulatory-related expenses [35]. - Total expenses for the year were $438 million, with direct operating expenses at $237 million [61]. Shareholder Actions - The company repurchased $26 million of common shares and paid $15 million in dividends during the quarter [3]. - The company repurchased 2.1 million shares of common stock during the fourth quarter of 2025, resulting in a 9% decrease in average outstanding diluted shares compared to the previous year [29]. - The company repurchased 2.1 million shares of common stock for $26 million in the fourth quarter of 2025 [45]. Future Outlook and Strategy - Navient's CEO emphasized a focus on loan growth and product expansion for 2026, aiming for strong operating leverage [3]. - The company plans to focus on market expansion and new product development in the upcoming fiscal year [61]. - Future guidance indicates a focus on expanding market presence and exploring potential acquisitions to drive growth [63]. Asset and Equity Management - Total assets decreased to $48,681 million in 2025 from $49,306 million in 2024, a decline of 1.3% [25]. - Total equity decreased to $2,399 million in 2025 from $2,439 million in 2024, a decline of 1.6% [25]. - The company's tangible equity was reported at $1,965 million as of December 31, 2025, down from $2,204 million in the previous year [76]. Tax and Accounting Adjustments - The effective income tax benefit for the quarter was $(2) million, impacting the overall net income [56]. - The effective income tax benefit was $31 million, contributing to the overall net loss [61]. - The cumulative impact of derivative accounting has decreased GAAP equity by approximately $39 million due to cumulative net mark-to-market losses recognized under GAAP [70].