Core Viewpoint - Rosen Law Firm is urging stockholders of SLM Corporation, also known as Sallie Mae, to contact them regarding a class action lawsuit related to alleged misleading statements about the company's business operations during a specific period [1]. Group 1: Allegations and Lawsuit Details - The class action lawsuit involves investors who purchased SLM securities between July 25, 2025, and August 14, 2025 [1]. - Allegations include that SLM Corporation misled investors by failing to disclose a significant increase in early-stage delinquencies and overstating the effectiveness of its loss mitigation and loan modification programs [1]. - The lawsuit claims that these misleading statements created a materially false impression of SLM's business, operations, and prospects, leading to investor damages when the truth was revealed [1]. Group 2: Participation and Representation - Shareholders interested in serving as lead plaintiffs must file motions with the court by February 17, 2026 [1]. - Participation in the class action is not required to be eligible for recovery, and representation is on a contingency fee basis, meaning shareholders incur no fees or expenses [1]. - Rosen Law Firm emphasizes its commitment to shareholder rights and has recovered over $1 billion for shareholders since its inception [1].

Core Insights - Helix Partners Management LP sold its entire 200,000-share stake in SLM Corporation for approximately $5.54 million, indicating a shift in investment strategy [2][7]. Company Overview - SLM Corporation specializes in providing private education loans and related financial services to students and families in the U.S., generating revenue primarily from interest income and servicing fees [6][10]. - The company reported a total revenue of $1.98 billion and a net income of $744.85 million for the trailing twelve months (TTM) [4]. Financial Performance - SLM Corporation's diluted earnings per share (EPS) for 2025 was $3.46, with a fourth-quarter EPS of $1.12 [7]. - The company has a net interest margin of 5.21% and an efficiency ratio of 34.6%, reflecting solid operational performance [7]. - As of February 12, 2026, SLM shares were priced at $24.76, representing a 14.6% decline over the past year, underperforming the S&P 500 by 27.5 percentage points [9]. Credit Metrics - Delinquencies increased to 4.0% of loans in repayment from 3.7% a year earlier, indicating a normalization of credit conditions [8]. - The company anticipates net charge-offs between $345 million and $385 million in 2026, which may limit growth potential [8]. Strategic Actions - Management has authorized a new $500 million share repurchase program after previously buying back 12.8 million shares for $373 million in 2025, indicating confidence in the company's value [7]. - The reduction of Helix Partners' stake from 3.18% to 0.70% suggests a prioritization of capital returns and credit metrics over short-term trading [11].

Core Viewpoint - The Gross Law Firm is notifying shareholders of SLM Corporation regarding a class action lawsuit due to alleged misleading statements and undisclosed information related to the company's financial stability and loan delinquency rates [1][3]. Group 1: Allegations - The complaint alleges that during the class period from July 25, 2025, to August 14, 2025, SLM Corporation experienced a significant increase in early-stage delinquencies [3]. - It is claimed that SLM overstated the effectiveness of its loss mitigation and loan modification programs, as well as the overall stability of its private education loan delinquency rates [3]. - As a result of these issues, the defendants' public statements created a materially false and misleading impression regarding SLM's business operations and prospects [3]. Group 2: Class Action Details - Shareholders who purchased SLM shares during the specified class period are encouraged to register for the class action, with a deadline set for February 17, 2026 [4]. - Once registered, shareholders will be enrolled in a portfolio monitoring software to receive updates on the case's status [4]. - There is no cost or obligation for shareholders to participate in this case [4]. Group 3: Law Firm Information - The Gross Law Firm is a nationally recognized class action law firm dedicated to protecting the rights of investors who have suffered due to deceit and illegal business practices [5]. - The firm aims to ensure that companies adhere to responsible business practices and seeks recovery for investors affected by misleading statements that led to stock inflation [5].

Core Viewpoint - A class action lawsuit has been filed against SLM Corporation (Sallie Mae) for allegedly concealing a significant increase in loan delinquencies during a specific period, leading to investor losses [1][3]. Group 1: Lawsuit Details - The lawsuit represents investors who acquired Sallie Mae securities from July 25, 2025, to August 14, 2025 [1][2]. - The complaint claims that Sallie Mae misled investors about the nature of rising early-stage delinquencies, attributing them to seasonal trends while downplaying the effectiveness of their loss mitigation programs [3]. Group 2: Financial Impact - A TD Cowen report revealed that July delinquencies increased by 49 basis points month-over-month, which was higher than expected for that season [4]. - Following the report, Sallie Mae's stock price fell by $2.67 per share, or 8.09%, closing at $30.32 on August 15, 2025 [4].

Core Viewpoint - A class action lawsuit has been filed against SLM Corporation (Sallie Mae) for allegedly concealing a significant increase in loan delinquencies during a specific period, leading to investor losses [1][3]. Group 1: Lawsuit Details - The lawsuit represents investors who acquired Sallie Mae securities from July 25, 2025, to August 14, 2025 [1]. - Investors have until February 17, 2026, to seek appointment as lead plaintiff representatives [2]. Group 2: Allegations - The complaint claims that Sallie Mae misled investors about the rising early-stage delinquencies, attributing them to seasonal trends while downplaying the effectiveness of their loss mitigation and loan modification programs [3]. - A report from TD Cowen on August 14, 2025, revealed that July delinquencies increased by 49 basis points month-over-month, which was higher than expected for that season [4]. Group 3: Market Reaction - Following the revelation of the delinquency spike, Sallie Mae's stock price fell by $2.67 per share, or 8.09%, closing at $30.32 on August 15, 2025 [4].

Core Viewpoint - A class action lawsuit has been filed against SLM Corporation (Sallie Mae) for allegedly concealing a significant increase in loan delinquencies during a specific period, leading to investor losses [1][3]. Group 1: Lawsuit Details - The lawsuit is on behalf of investors who acquired Sallie Mae securities from July 25, 2025, to August 14, 2025 [1]. - Investors have until February 17, 2026, to seek appointment as lead plaintiff representatives [2]. - The complaint claims that Sallie Mae misrepresented the nature of rising early-stage delinquencies, attributing them to seasonal trends while downplaying the effectiveness of their loss mitigation programs [3]. Group 2: Financial Impact - A TD Cowen report revealed that July delinquencies increased by 49 basis points month-over-month, which was above seasonal expectations [4]. - Following the report, Sallie Mae's stock price fell by $2.67 per share, or 8.09%, closing at $30.32 on August 15, 2025 [4].

Core Insights - Sallie Mae (SLM) reported a strong fourth-quarter performance with earnings per share (EPS) of $1.12, up from 50 cents in the prior-year quarter, exceeding the Zacks Consensus Estimate by 18.2% [1][2][9] - The company's GAAP net income attributable to common stock was $229 million, compared to $107 million in the same quarter last year, with full-year 2025 net income reaching $729 million, up from $590 million in 2024 [2][9] Financial Performance - Fourth-quarter net interest income (NII) was $377 million, an increase from $362 million in the prior-year quarter, beating the Zacks Consensus Estimate by 0.4%, with a net interest margin of 5.21%, expanding 29 basis points year over year [3][9] - Full-year 2025 NII totaled $1.5 billion, slightly up from $1.48 billion in 2024, matching the Zacks Consensus Estimate [3] - Non-interest income for the fourth quarter was $77 million, significantly higher than $28 million in the year-ago quarter [3] Expense and Credit Quality - Non-interest expenses rose 4.7% year over year to $157 million [4] - The company reported provision benefits of $19 million in the fourth quarter, contrasting with provisions for credit losses of $108 million in the prior-year quarter, primarily due to the release of reserves associated with loan sales [5] - Net charge-offs for private education loans were $98 million, slightly up from $95 million in the year-ago quarter, with charge-offs as a percentage of average loans in repayment at 2.42%, marginally higher than 2.38% in the prior-year quarter [5][6] Balance Sheet and Share Repurchase - As of December 31, 2025, deposits totaled $21.1 billion, relatively flat compared to the year-ago quarter, while private education loans held for investment were $20.3 billion, down from $20.9 billion [7] - Private education loan originations increased 4% year over year to approximately $1.0 billion [7] - In the fourth quarter, SLM repurchased 3.8 million shares for $106 million, with a total of 12.8 million shares repurchased for $373 million in 2025 under its share buyback program [8][10] Overall Assessment - The strong fourth-quarter performance was driven by solid growth in net interest income, higher non-interest income, and favorable provisions for credit losses, with stable loan originations and continued capital return being positive factors [11]

Financial Data and Key Metrics Changes - GAAP diluted EPS for Q4 2025 was $1.12, and full-year GAAP diluted EPS was $3.46, an increase from $2.68 in 2024 [7] - Private education loan originations for Q4 2025 were $1.02 billion, totaling $7.4 billion for the full year, representing a 6% increase over 2024 [7][8] - Net charge-offs for the private education loan portfolio were $98 million in Q4 2025 and $346 million for the full year, equating to 2.15% of average private education loans in repayment, down four basis points from 2024 [8][14] Business Line Data and Key Metrics Changes - The company reported a net interest margin (NIM) of 5.21% for Q4 2025, up 29 basis points year-over-year, and 5.24% for the full year, an increase of five basis points [9] - The total allowance as a percentage of private education loan exposure (reserve rate) was 6% at the end of 2025, up from 5.93% in the previous quarter and 5.83% at the end of 2024 [12] Market Data and Key Metrics Changes - College enrollment trends for Tier 1 schools are up, indicating continued value seen in higher education by students and parents [5] - The company anticipates that the recent federal student lending reforms could contribute an estimated $5 billion in annual originations, representing approximately 70% growth over 2025 [6] Company Strategy and Development Direction - The company is focused on supporting school partners and students as education evolves due to technological changes, emphasizing the importance of acquiring necessary skills for future competitiveness [5][6] - The strategic partnership with KKR aims to enhance capital efficiency and risk transfer benefits, with expectations of significant growth in private education loan originations [7][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the private student lending sector's robustness and a strong outlook for 2026, expecting private education loan origination growth of 12%-14% [18] - The company is prepared for potential economic uncertainties and believes that its strategic initiatives will lead to significant value creation opportunities [22] Other Important Information - The company repurchased 3.8 million shares for $106 million in Q4 2025, totaling 12.8 million shares for $373 million over the full year [9] - Non-interest expenses for the full year were $659 million, a modest increase of 2.6% year-over-year, reflecting disciplined expense management [16] Q&A Session Summary Question: Impact of postponement of wage garnishment on performance - Management indicated that while some customers have federal loans, most do not have Sallie Mae private student loans, and the postponement is not expected to significantly impact the business [24] Question: Modeling 1H vs 2H growth related to Grad PLUS - Management expects modest incremental volume in the first year of phase-in, with growth stepping up over the next two to three years [25][26] Question: Volumes for partnerships and loan sales in 2026 - The first strategic partnership has a minimum commitment of $2 billion in new originations, with expectations of designating about 30% of originations for sale [30] Question: ROI measurement for increased investment - Management emphasized the significant market opportunity for growth and the disciplined approach to measuring ROI on investments [40][41] Question: Confidence level on credit guidance for 2026 - Management expressed confidence in the performance of borrowers in modification programs, with positive payment habits indicating a strong likelihood of success [50][51]

Financial Data and Key Metrics Changes - GAAP diluted EPS for Q4 2025 was $1.12, and full-year GAAP diluted EPS was $3.46, an increase from $2.68 in 2024 [8] - Private education loan originations for Q4 2025 were $1.02 billion, totaling $7.4 billion for the full year, a 6% increase over 2024 [8][9] - Net charge-offs for the private education loan portfolio were $98 million in Q4 2025 and $346 million for the full year, representing 2.15% of average private education loans in repayment, down four basis points from 2024 [9][14] Business Line Data and Key Metrics Changes - The company reported a net interest margin of 5.21% for Q4 2025, up 29 basis points year-over-year, and 5.24% for the full year, up five basis points [10] - The total allowance as a percentage of private education loan exposure (reserve rate) was 6% at the end of 2025, up from 5.93% in the previous quarter [13] - Private education loans delinquent 30 days or more represented 4% of loans in repayment as of year-end, unchanged from Q3 and up from 3.7% at the end of 2024 [14] Market Data and Key Metrics Changes - College enrollment trends for Tier 1 schools are up, indicating continued value seen in higher education [5] - The company anticipates that the recent federal student lending reforms could contribute an estimated $5 billion in annual originations, representing approximately 70% growth over 2025 [6][7] Company Strategy and Development Direction - The company is focused on supporting school partners and students as education evolves due to technological changes [5][6] - A new two-year $500 million share repurchase authorization was announced, reflecting a commitment to returning capital to shareholders [10] - The company expects private education loan origination growth of 12%-14% in 2026, driven by the new PLUS caps [19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the private student lending sector's robustness and the company's strategic positioning for future growth [5][19] - The company is prepared for potential economic uncertainties and believes that improvements in collections effectiveness will mitigate risks associated with early-stage delinquencies [16][51] - Management anticipates EPS acceleration beginning in 2027, with high teens to low 20% growth expected as the PLUS opportunity materializes [22] Other Important Information - Non-interest expenses for the full year were $659 million, a modest 2.6% increase year-over-year, reflecting disciplined expense management [17] - The company ended the quarter with liquidity of 18.6% of total assets and total risk-based capital of 12.4% [18] Q&A Session Summary Question: Impact of wage garnishment postponement on loan performance - Management indicated that while many customers have federal loans, most federal loan customers do not have Sallie Mae private student loans, and the postponement is expected to have a minimal impact on business [25] Question: Modeling growth from Grad PLUS changes - Management expects modest incremental PLUS volume in the first year, with growth stepping up over the next two to three years [26] Question: Volumes for partnerships and loan sales in 2026 - The strategic partnership includes a minimum commitment of $2 billion in new originations, with approximately 30% of originations expected to be sold [30] Question: ROI measurement for increased investment - Management emphasized the significant market opportunity for growth, estimating a potential 70% increase in originations over the next few years [38] Question: Confidence in credit outlook for 2026 - Management expressed confidence in the performance of borrowers in modification programs, with 75% of the 2023 cohort current at the end of 2025 [46][48]

Core Viewpoint - A class action lawsuit has been filed against SLM Corporation (Sallie Mae) for allegedly concealing a significant increase in loan delinquencies during a specific period, leading to investor losses [1][3]. Group 1: Lawsuit Details - The lawsuit represents investors who acquired Sallie Mae securities from July 25, 2025, to August 14, 2025 [1]. - Investors have until February 17, 2026, to seek appointment as lead plaintiff representatives [2]. Group 2: Allegations - Sallie Mae is accused of hiding the true cause of rising early-stage delinquencies, which were reportedly increasing significantly despite the company's claims of normal seasonal fluctuations and effective loss mitigation programs [3]. - A TD Cowen report published on August 14, 2025, revealed that July delinquencies rose by 49 basis points month-over-month, exceeding seasonal expectations [4]. Group 3: Market Reaction - Following the revelation of the delinquency spike, Sallie Mae's stock price fell by $2.67 per share, or 8.09%, closing at $30.32 on August 15, 2025 [4].