Salliemae(US:SLM) ZACKSยท2025-04-25 18:10Core Viewpoint - Sallie Mae (SLM) reported strong first-quarter 2025 earnings, driven by increased non-interest income and robust loan originations, despite challenges from higher credit loss provisions and declining net interest income [1][9]. Financial Performance - Earnings per share for Q1 2025 were $1.40, exceeding the Zacks Consensus Estimate of $1.19 and up from $1.27 in the prior-year quarter [1]. - GAAP net income rose to $305 million from $290 million year-over-year [2]. - Net interest income (NII) was $375 million, a decrease of 3.1% year-over-year, but above the consensus estimate of $359.7 million [3]. - Non-interest income increased by 18.3% year-over-year to $206 million [3]. - Non-interest expenses decreased by 4.4% year-over-year to $154.6 million [3]. Credit Quality - Provisions for credit losses increased to $23.3 million from $12 million in the prior-year quarter [4]. - Net charge-offs for private education loans were $76.2 million, down 7.7% year-over-year [4]. - The percentage of net charge-offs for private education loans held for investment was 1.88%, a contraction of 26 basis points year-over-year [4]. Balance Sheet Position - As of March 31, 2025, total deposits were $20.07 billion, down 4.7% sequentially [5]. - Private education loans held for investment increased to $21.09 billion, up 7.1% from the prior-year quarter [5]. - Private education loan originations rose by 7.3% year-over-year [5]. Share Repurchase - In Q1 2025, the company repurchased 1 million shares for $31 million under its 2024 share buyback program [6]. 2025 Outlook - The company expects diluted earnings per share to be in the range of $3.00-$3.10 [7]. - Anticipated total loan portfolio net charge-offs as a percentage of average loans in repayment is projected to be between 2.0-2.2% [7]. - Private education loan originations are expected to grow by 6-8% year-over-year [7]. - Non-interest expenses are forecasted to be in the range of $655-$675 million [7].