NEWARK, Del., Jan. 23, 2025 - Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today released fourth-quarter and full-year 2024 financial results. Complete financial results and related materials are available at www.SallieMae.com/investors. The materials will also be available on the Securities and Exchange Commission’s website at www.sec.gov.

Sallie Mae will host an earnings conference call today, Jan. 23, 2025, at 5:30 p.m. ET. Executives will be on hand to discuss various highlights of the quarter and year and to answer questions related to Sallie Mae’s performance. A live audio webcast of the conference call and presentation slides may be accessed at www.SallieMae.com/investors and the hosting website.

A replay of the webcast will be available via the company’s investor website approximately two hours after the call’s conclusion.

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Sallie Mae (Nasdaq: SLM) believes education and life-long learning, in all forms, help people achieve great things. As the leader in private student lending, we provide financing and know-how to support access to college and offer products and resources to help customers make new goals and experiences, beyond college, happen. Learn more at SallieMae.com. Commonly known as Sallie Mae, SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.

Contacts:

Rick Castellano, 302-451-2541, rick.castellano@SallieMae.com

Melissa Bronaugh, 571-526-2455, melissa.bronaugh@SallieMae.com

Investor Contact: Melissa Bronaugh, 571-526-2455                 Media Contact: Rick Castellano, 302-451-2541

* The 2025 Guidance and related comments constitute forward-looking statements and are based on management’s current expectations and beliefs. There can be no guarantee as to whether and to what extent this guidance will be achieved. The Company undertakes no obligation to revise or release any revision or update to these forward-looking statements. See our Forward-Looking Statements disclosures on pg. 4 for more information.

(1) Shares of common stock were repurchased under Rule 10b5-1 trading plans authorized under the Company’s 2024 Share Repurchase Program. As of December 31, 2024, we had $402 million of capacity remaining under the 2024 Share Repurchase Program.

(2) We calculate the percentage of loans in hardship and other forbearances as the ratio of (a) Private Education Loans in hardship and other forbearances (excluding loans in an extended grace period) numerator to (b) Private Education Loans in repayment and forbearance denominator. If the customer is in financial hardship, we work with the customer and/or cosigner and identify any available alternative arrangements designed to reduce monthly payment obligations, which may include a short-term hardship forbearance. Loans in hardship and other forbearances (excluding loans in an extended grace period) were approximately $152 million and $156 million at December 31, 2024 and 2023, respectively.

(3) We calculate and report our Return on Assets (“ROA”) as the ratio of (a) GAAP net income (loss) numerator (annualized) to (b) the GAAP total average assets denominator.

(4) We calculate and report our Return on Common Equity (“ROCE”) as the ratio of (a) GAAP net income (loss) attributable to common stock numerator (annualized) to (b) the net denominator, which consists of GAAP total average equity less total average preferred stock.

This press release contains “forward-looking statements” and information based on management’s current expectations as of the date of this press release. Statements that are not historical facts, including statements about the Company’s beliefs, opinions, or expectations and statements that assume or are dependent upon future events, are forward-looking statements. These include, but are not limited to: strategies; goals and assumptions of SLM Corporation and its subsidiaries, collectively or individually as the context requires (the “Company”); the Company’s expectation and ability to execute loan sales and share repurchases; statements regarding future developments surrounding COVID-19 or any other pandemic, including, without limitation, statements regarding the potential impact of any such pandemic on the Company’s business, results of operations, financial condition, and/or cash flows; the Company’s expectation and ability to pay a quarterly cash dividend on our common stock in the future, subject to the approval of our Board of Directors; the Company’s 2025 guidance; the Company’s three-year horizon outlook; the impact of acquisitions we have made or may make in the future; the Company’s projections regarding originations, net charge-offs, non-interest expenses, earnings, balance sheet position, and other metrics; any estimates related to accounting standard changes; and any estimates related to the impact of credit administration practices changes, including the results of simulations or other behavioral observations.

Forward-looking statements are subject to risks, uncertainties, assumptions, and other factors, many of which are difficult to predict and generally beyond the control of the Company, which may cause actual results to be materially different from those reflected in such forward-looking statements. There can be no assurance that future developments affecting the Company will be the same as those anticipated by management. The Company cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, or implied or projected by, such forward-looking statements. These factors include, among others, the risks and uncertainties set forth in Item 1A. “Risk Factors” and elsewhere in the Company’s most recently filed Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission; the societal, business, and legislative/regulatory impact of pandemics and other public heath crises; increases in financing costs; limits on liquidity; increases in costs associated with compliance with laws and regulations; failure to comply with consumer protection, banking, and other laws or regulations; our ability to timely develop new products and services and the acceptance of those products and services by potential and existing customers; changes in accounting standards and the impact of related changes in significant accounting estimates, including any regarding the measurement of our allowance for credit losses and the related provision expense; any adverse outcomes in any significant litigation to which the Company is a party; credit risk associated with the Company’s exposure to third parties, including counterparties to the Company’s derivative transactions; the effectiveness of our risk management framework and quantitative models; and changes in the terms of education loans and the educational credit marketplace (including changes resulting from new laws and the implementation of existing laws). We could also be affected by, among other things: changes in our funding costs and availability; reductions to our credit ratings; cybersecurity incidents, cyberattacks, and other failures or breaches of our operating systems or infrastructure, including those of third-party vendors; damage to our reputation; risks associated with restructuring initiatives, including failures to successfully implement cost-cutting programs and the adverse effects of such initiatives on our business; changes in the demand for educational financing or in financing preferences of lenders, educational institutions, students, and their families; changes in law and regulations with respect to the student lending business and financial institutions generally; changes in banking rules and regulations, including increased capital requirements; increased competition from banks and other consumer lenders; the creditworthiness of our customers, or any change related thereto; changes in the general interest rate environment, including the rate relationships among relevant money-market instruments and those of our earning assets versus our funding arrangements; rates of prepayments on the loans owned by us; changes in general economic conditions and our ability to successfully effectuate any acquisitions; and other strategic initiatives. The preparation of our consolidated financial statements also requires management to make certain estimates and assumptions, including estimates and assumptions about future events. These estimates or assumptions may prove to be incorrect.

All oral and written forward-looking statements attributed to the Company are expressly qualified in their entirety by the factors, risks, and uncertainties set forth in the foregoing cautionary statements, and are made only as of the date of this press release or, where the statement is oral, as of the date stated. We do not undertake any obligation to update or revise any forward-looking statements to conform to actual results or changes in our expectations, nor to reflect events or circumstances that occur after the date on which such statements were made. In light of these risks, uncertainties, and assumptions, you should not put undue reliance on any forward-looking statements discussed.

 

 

SLM CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
						Quarters Ended												Years Ended
						December 31,												December 31,
(Dollars in thousands, except per share amounts)						2024						2023						2024						2023
Interest income:
Loans						$	587,426					$	595,537					$	2,314,417					$	2,327,743
Investments						15,467						14,174						61,412						50,810
Cash and cash equivalents						58,480						58,839						243,217						213,750
Total interest income						661,373						668,550						2,619,046						2,592,303
Interest expense:
Deposits						223,976						223,206						881,456						808,065
Interest expense on short-term borrowings						3,476						3,608						13,815						13,501
Interest expense on long-term borrowings						71,730						55,850						242,993						208,524
Total interest expense						299,182						282,664						1,138,264						1,030,090
Net interest income						362,191						385,886						1,480,782						1,562,213
Less: provisions for credit losses						108,179						15,599						408,515						345,463
Net interest income after provisions for credit losses						254,012						370,287						1,072,267						1,216,750
Non-interest income:
Gains (losses) on sales of loans, net						(9)						35,550						254,928						160,290
Gains on securities, net						82						690						467						2,678
Other income						27,709						20,873						112,873						84,148
Total non-interest income						27,782						57,113						368,268						247,116
Non-interest expenses:
Operating expenses:
Compensation and benefits						80,084						77,095						349,387						326,554
FDIC assessment fees						13,594						12,103						51,606						45,766
Other operating expenses						54,455						53,903						235,577						246,886
Total operating expenses						148,133						143,101						636,570						619,206
Acquired intangible assets impairment and amortization expense						1,495						59,013						5,329						66,364
Total non-interest expenses						149,628						202,114						641,899						685,570
Income before income tax expense						132,166						225,286						798,636						778,296
Income tax expense						20,613						56,843						190,311						196,905
Net income						111,553						168,443						608,325						581,391
Preferred stock dividends						4,367						4,726						18,296						17,705
Net income attributable to SLM Corporation common stock						$	107,186					$	163,717					$	590,029					$	563,686
Basic earnings per common share						$	0.51					$	0.73					$	2.73					$	2.44
Average common shares outstanding						210,741						223,224						216,220						231,411
Diluted earnings per common share						$	0.50					$	0.72					$	2.68					$	2.41
Average common and common equivalent shares outstanding						215,113						226,552						219,934						234,063
Declared dividends per common share						$	0.13					$	0.11					$	0.46					$	0.44

The following table reflects the rates earned on interest-earning assets and paid on interest-bearing liabilities and reflects our net interest margin on a consolidated basis.  

        

						Quarters Ended December 31,																								Years Ended December 31,
						2024												2023												2024												2023
(Dollars in thousands)						Balance						Rate						Balance						Rate						Balance						Rate						Balance						Rate
Average Assets
Private Education Loans						$	22,061,986					10.54		%				$	21,060,947					11.02		%				$	21,121,545					10.81		%				$	21,039,701					10.86		%
FFELP Loans						149,225						7.16						546,892						7.46						413,338						7.45						574,218						7.19
Credit Cards						—						—						—						—						—						—						11,096						14.02
Taxable securities						2,064,637						2.98						2,556,037						2.20						2,316,848						2.65						2,543,586						2.00
Cash and other short-term investments						5,028,902						4.65						4,351,285						5.38						4,700,066						5.19						4,215,164						5.09
Total interest-earning assets						29,304,750						8.98		%				28,515,161						9.30		%				28,551,797						9.17		%				28,383,765						9.13		%
Non-interest-earning assets						632,835												390,422												505,245												301,749
Total assets						$	29,937,585											$	28,905,583											$	29,057,042											$	28,685,514
Average Liabilities and Equity
Brokered deposits						$	9,628,044					4.10		%				$	10,286,204					3.68		%				$	10,009,221					3.89		%				$	9,803,802					3.29		%
Retail and other deposits						11,627,142						4.48						11,222,652						4.76						11,142,798						4.65						11,605,215						4.40
Other interest-bearing liabilities(1)						6,331,195						4.34						5,407,513						3.85						5,616,445						4.09						5,366,365						3.66
Total interest-bearing liabilities						27,586,381						4.31		%				26,916,369						4.17		%				26,768,464						4.25		%				26,775,382						3.85		%
Non-interest-bearing liabilities						206,242												121,754												149,594												83,895
Equity						2,144,962												1,867,460												2,138,984												1,826,237
Total liabilities and equity						$	29,937,585											$	28,905,583											$	29,057,042											$	28,685,514
Net interest margin												4.92		%										5.37		%										5.19		%										5.50		%

(1)     Includes the average balance of our unsecured borrowings, as well as secured borrowings and amortization expense of transaction costs related to our term asset-backed securitizations and our Secured Borrowing Facility.

Basic earnings per common share (“EPS”) are calculated using the weighted average number of shares of common stock outstanding during each period. A reconciliation of the numerators and denominators of the basic and diluted EPS calculations follows.

    

(1)     Includes the potential dilutive effect of additional common shares that are issuable upon exercise of outstanding stock options, restricted stock, restricted stock units, performance stock units and the outstanding commitment to issue shares under the ESPP, determined by the treasury stock method.

(2)  For the quarter and year ended December 31, 2024, securities covering no shares and less than 1 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive. For the quarter and year ended December 31, 2023, securities covering approximately 1 million and 1 million shares, respectively, were outstanding but not included in the computation of diluted earnings per share because they were anti-dilutive.

(!) See “Provisions for Credit Loan Losses” on page 14 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income.

(2) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “Unfunded Loan Commitments” on page 14 for further discussion.

(3) Includes incremental provision for new commitments and changes to provision for existing commitments.

(4) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance).

(!) See “Provisions for Credit Loan Losses” on page 14 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income.

(2) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “Unfunded Loan Commitments” on page 14 for further discussion.

(3) Includes incremental provision for new commitments and changes to provision for existing commitments.

(4) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance).

(!) See “Provisions for Credit Loan Losses” on page 14 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income.

(2) Represents fair value adjustments on loans transferred to held for sale.

(3) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “Unfunded Loan Commitments” on page 14 for further discussion.

(4) Includes incremental provision for new commitments and changes to provision for existing commitments.

(5) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance).

(!) See “Provisions for Credit Loan Losses” on page 14 for a reconciliation of the provisions for credit losses reported in the consolidated statements of income.

(2) When a new loan commitment is made, we record an allowance to cover lifetime expected credit losses on the unfunded commitments, which is recorded in “Other Liabilities” on the consolidated balance sheet. See “Unfunded Loan Commitments” on page 14 for further discussion.

(3) Includes incremental provision for new commitments and changes to provision for existing commitments.

(4) Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance).

(1)  Net of expirations of commitments unused. Also includes incremental provision for new commitments and changes to provision for existing commitments.

(2)  When a loan commitment is funded, its related liability for credit losses (which originally was recorded as a provision for unfunded commitments) is transferred to the allowance for credit losses.

    

Private Education Loans Held for Investment As of December 31, (dollars in thousands)						Credit Quality Indicators
						2024												2023
						Balance(1)						% of Balance						Balance(1)						% of Balance
Cosigners:
With cosigner						$	19,522,539					88		%				$	18,291,994					87		%
Without cosigner						2,712,469						12						2,733,850						13
Total						$	22,235,008					100		%				$	21,025,844					100		%
FICO at Original Approval(2):
Less than 670						$	1,674,778					8		%				$	1,640,463					8		%
670-699						3,199,300						14						3,122,407						15
700-749						7,060,211						32						6,749,628						32
Greater than or equal to 750						10,300,719						46						9,513,346						45
Total						$	22,235,008					100		%				$	21,025,844					100		%
FICO-Refreshed(2)(3):
Less than 670						$	2,913,860					13		%				$	2,738,066					13		%
670-699						2,719,797						12						2,589,805						12
700-749						6,203,257						28						5,965,882						28
Greater than or equal to 750						10,398,094						47						9,732,091						47
Total						$	22,235,008					100		%				$	21,025,844					100		%
Seasoning(4):
1-12 payments						$	4,898,818					22		%				$	4,482,002					21		%
13-24 payments						3,757,313						17						3,696,870						18
25-36 payments						2,358,304						11						2,305,944						11
37-48 payments						1,609,522						7						1,557,809						7
More than 48 payments						3,888,224						17						3,691,228						18
Not yet in repayment						5,722,827						26						5,291,991						25
Total						$	22,235,008					100		%				$	21,025,844					100		%

(1)Balance represents gross Private Education Loans held for investment.

(2)Represents the higher credit score of the cosigner or the borrower.

(3)Represents the FICO score updated as of the respective fourth-quarter.

(4)Number of months in active repayment (whether interest only payment, fixed payment, or full principal and interest payment status) for which a scheduled payment was due.

The following table provides information regarding the loan status of our Private Education Loans held for investment. Loans in repayment include loans making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but for purposes of the following table, do not include those loans while they are in forbearance).

(1)Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation).

(2)Loans for customers who have requested extension of grace period generally during employment transition or who have temporarily ceased making full payments due to hardship or other factors, consistent with established loan program servicing policies and procedures.

(3)The period of delinquency is based on the number of days scheduled payments are contractually past due.

(4)We calculate the percentage of loans in an extended grace period as the ratio of (a) Private Education Loans in forbearance in an extended grace period numerator to (b) Private Education Loans in repayment and forbearance denominator. An extended grace period aligns with The Office of the Comptroller of the Currency definition of an additional, consecutive, one-time period during which no payment is required for up to six months after the initial grace period. We typically grant this extended grace period to customers who may be having difficulty finding employment before the full principal and interest repayment period starts or once it has begun. Loans in forbearance in an extended grace period were approximately $253 million and $168 million at December 31, 2024 and 2023, respectively.

(5)We calculate the percentage of loans in hardship and other forbearances as the ratio of (a) Private Education Loans in hardship and other forbearances (excluding loans in an extended grace period) numerator to (b) Private Education Loans in repayment and forbearance denominator. If the customer is in financial hardship, we work with the customer and/or cosigner and identify any available alternative arrangements designed to reduce monthly payment obligations, which may include a short-term hardship forbearance. Loans in hardship and other forbearances (excluding loans in an extended grace period) were approximately $152 million and $156 million at December 31, 2024 and 2023, respectively.

The following table depicts the performance of loans that have been modified during the respective reporting periods (the twelve months ended December 31, 2024 and 2023, respectively).

(1)Loans that were modified and subsequently charged-off during the twelve months ended December 31, 2024 and 2023 are excluded from the table and had an amortized cost basis of $40.4 million and $8.4 million, respectively. Additionally, loans that received a permanent term extension with no interest rate reduction during the fourth quarter of 2023 are excluded from the table.

(2)Deferment includes customers who have returned to school or are engaged in other permitted educational activities and are not yet required to make full principal and interest payments on the loans (e.g., residency periods for medical students or a grace period for bar exam preparation). Deferment also includes loans that have entered a forbearance after the loan modification was granted.

(3)Represents loans in repayment, which include loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance).

(4)The period of delinquency is based on the number of days scheduled payments are contractually past due.

(1)      Loans for customers still attending school and who are not yet required to make payments on the loans.

(2)     Includes loans in deferment or forbearance. Loans in repayment include loans on which borrowers are making interest only or fixed payments, as well as loans that have entered full principal and interest repayment status after any applicable grace period (but, for purposes of the table, do not include those loans while they are in forbearance).

The following table summarizes our Private Education Loan originations. Originations represent loans that were funded or acquired during the period presented.

(1) Interest only, fixed pay and deferred describe the payment option while in school or in grace period. See Item 1. “Business - Our Business - Private Education Loans” in the 2023 Form 10-K for a further discussion.

(2) For the quarter ended December 31, 2024, the Graduate Loan originations include $3.8 million of Smart Option Loans where the student was in a graduate status. For the quarter ended December 31, 2023, the Graduate Loan originations include $4.9 million of Smart Option Loans where the student was in a graduate status. For the year ended December 31, 2024, the Graduate Loan originations include $32.2 million of Smart Option Loans where the student was in a graduate status. For the year ended December 31, 2023, the Graduate Loan originations include $29.4 million of Smart Option Loans where the student was in a graduate status.

(3) In December 2021, we discontinued offering our Parent Loan product. Applications for those loans received before the offering termination date were processed, and final disbursements under those loans occurred in February 2023.

(4) Represents the higher credit score of the cosigner or the borrower.

Interest-bearing deposits are summarized as follows:

 

						2024												2023
As of December 31, (dollars in thousands)						Amount						Year-End Weighted Average Stated Rate(1)						Amount						Year-End Weighted Average Stated Rate(1)
Money market						$	9,582,290					4.27		%				$	10,258,292					4.85		%
Savings						944,034						4.02						945,000						4.35
Certificates of deposit						10,540,428						4.20						10,448,365						3.69
Deposits - interest bearing						$	21,066,752											$	21,651,657

        (1) Includes the effect of interest rate swaps in effective hedge relationships.

Under regulations issued by the FDIC and other federal banking agencies, banking organizations that adopted CECL during the 2020 calendar year, including Sallie Mae Bank (the “Bank”), could elect to delay for two years, and then phase in over the following three years, the effects on regulatory capital of CECL relative to the incurred loss methodology. The Bank elected to use this option. Therefore, the regulatory capital impact of the Bank’s transition adjustments recorded on January 1, 2020 from the adoption of CECL, and 25 percent of the ongoing impact of CECL on the Bank’s allowance for credit losses, retained earnings, and average total consolidated assets, each as reported for regulatory capital purposes (collectively, the “adjusted transition amounts”), were deferred for the two-year period ended January 1, 2022. On each of January 1, 2022, 2023, and 2024, 25 percent of the adjusted transition amounts was phased in for regulatory capital purposes. On January 1, 2025, the remaining 25 percent of the adjusted transition amounts was phased in for regulatory capital purposes, with the phased-in amounts included in regulatory capital at the beginning of the year. The Bank’s January 1, 2020 CECL transition amounts increased our allowance for credit losses by $1.1 billion, increased the liability representing our off-balance sheet exposure for unfunded commitments by $116 million, and increased our deferred tax asset by $306 million, resulting in a cumulative effect adjustment that reduced retained earnings by $953 million. This transition adjustment was inclusive of qualitative adjustments incorporated into our CECL allowance as necessary, to address any limitations in the models used.

At December 31, 2024, the adjusted transition amounts that were deferred and are being phased in for regulatory capital purposes are as follows:

The Bank’s required and actual regulatory capital amounts and ratios, including applicable capital conservation buffers, under U.S. Basel III are shown in the following table. The following capital amounts and ratios are based upon the Bank’s average assets and risk-weighted assets, as indicated. The Bank has elected to exclude accumulated other comprehensive income related to both available-for-sale investments and swap valuations from Common Equity Tier 1 Capital. At December 31, 2024 and December 31, 2023, the unrealized loss on available-for-sale investments included in other comprehensive income totaled $83 million and $115 million, net of tax of $27 million and $37 million, respectively. The capital ratios would remain above the U.S. Basel III well capitalized thresholds, including applicable capital conservation buffers, if the unrealized loss became fully recognized into capital.