EX-99.1 2 slm042425ex991.htm EX-99.1

Exhibit 99.1

						News Release
						For Immediate Release

Sallie Mae Reports First-Quarter 2025 Financial Results

and Reaffirms Full-Year 2025 Guidance

NEWARK, Del., April 24, 2025 - Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today released first-quarter 2025 financial results and reaffirmed full-year 2025 guidance. 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, April 24, 2025, at 5:30 p.m. ET. Executives will be on hand to discuss various highlights of the quarter 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:

Media

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

Investors

Kate deLacy, 571-438-9574, kate.delacy@salliemae.com

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NEWARK, Del., April 24, 2025 — Sallie Mae (Nasdaq:SLM), formally SLM Corporation, today released its first-quarter 2025 financial results.

$1.40 GAAP Diluted Earnings Per Common Share

7% Private Education Loan Originations Growth from Year-Ago Quarter

1.0M Shares repurchased in Q1 2025 for $31M(1)

1.88% Total Net Charge-Offs as a Percentage of Average Loans in Repayment (annualized)

$155M Non-Interest Expenses

“We are off to a strong start in 2025, underscoring the strength of our core business and disciplined execution of our strategy. Although we remain cautious given the evolving macroeconomic environment, we’re seeing stable credit performance with positive trends, which we believe should position us well to deliver results in line with our guidance for the year.”                                                                     Jonathan Witter, CEO, Sallie Mae

Private Education Loan Portfolio Trends ▪$22.9B of average loans outstanding, net, up 7% from Q1 2024 ▪$23M in provisions for credit losses in Q1 2025, compared with $12M in Q1 2024 ▪0.92% loans in a hardship forbearance, a decrease from 1.00% in Q1 2024(2) ▪3.58% delinquencies as a percentage of loans in repayment, compared with 3.41% in Q1 2024 ▪1.88% net charge-offs as a percentage of average loans in repayment (annualized), down from 2.14% in Q1 2024

Balance Sheet & Capital Allocation

$0.13 Common stock dividend per share paid in Q1 2025

12.9% Total risk-based capital ratio and CET1 capital ratio of 11.6%

$372M Capacity remaining under the 2024 Share Repurchase Program as of March 31, 2025

Income Statement & Earnings Summary

2025 Guidance* For the full year 2025, the Company expects:

$301M GAAP Net Income attributable to common stock in Q1 2025

5.27% Net interest margin for Q1 2025, a decrease of 22 basis points from Q1 2024

$3.00 - $3.10 GAAP Diluted Earnings Per Common Share

6% - 8% Private Education Loan Originations Year-over-Year Growth

$188M Gain on sale of loans in Q1 2025, an increase of $45M from Q1 2024

$23M Provision for credit losses, an increase from Q1 2024 largely due to increase in loan commitments, net of expired commitments, offset by $116M release of provision from loan sale

2.0% - $2.2% Total Loan Portfolio Net Charge-Offs as a Percentage of Average Loans in Repayment

$655 million - $675 million Non-Interest Expenses

Investor Contact: Kate deLacy, 571-438-9574                 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.

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Quarterly Financial Highlights

			Q1 2025			Q4 2024			Q1 2024
Income Statement ($ millions)
Total interest income			$656			$661			$664
Total interest expense			281			299			277
Net interest income			375			362			387
Less: provisions for credit losses			23			108			12
Total non-interest income			206			28			174
Total non-interest expenses			155			150			162
Income tax expense			99			21			97
Net income			305			112			290
Preferred stock dividends			4			4			5
Net income attributable to common stock			$301			$107			$285
Ending Balances ($ millions)
Private Education Loans held for investment, net			$21,091			$20,902			$19,688
FFELP Loans held for investment, net			—			—			513
Deposits			20,073			21,069			20,903
Brokered			8,689			9,476			10,289
Retail and other			11,384			11,593			10,614
Key Performance Metrics ($ in millions)
Net interest margin			5.27%			4.92%			5.49%
Yield - Total interest-earning assets			9.22%			8.98%			9.41%
Private Education Loans			10.59%			10.54%			11.01%
Cost of Funds			4.23%			4.31%			4.18%
Return on Assets (“ROA”)(3)			4.2%			1.5%			4.1%
Return on Common Equity (“ROCE”)(4)			60.1%			22.5%			65.6%
Private Education Loan sales			$2,003			$—			$2,103
Per Common Share
GAAP diluted earnings per common share			$1.40			$0.50			$1.27
Average common and common equivalent shares outstanding (millions)			215			215			224

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Footnotes:

(1) Shares of common stock were repurchased under Rule 10b5-1 trading plans authorized under the Company’s 2024 Share Repurchase Program. As of March 31, 2025, we had $372 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 and delinquent loans in disaster forbearance) 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 and delinquent loans in disaster forbearance) were approximately $151 million and $145 million at March 31, 2025 and 2024, respectively.

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

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CAUTIONARY NOTE AND DISCLAIMER REGARDING FORWARD-LOOKING STATEMENTS

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; 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; 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; changes in laws, regulations, and supervisory expectations, especially in light of the goals of the new Trump administration; 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; the societal, business, and legislative/regulatory impact of pandemics, other public health crises, and/or natural disasters; 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, including changes as a result of new limits on, or reductions in, funding that certain educational institutions receive from the Federal government; 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, including as a result of the impact of tariffs or trade wars or other current initiatives of the Federal government, that may impact the demand for student loans and the risk of default of outstanding loans; 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.

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SLM CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited)
						March 31,						December 31,
(Dollars in thousands, except share and per share amounts)						2025						2024
Assets
Cash and cash equivalents						$	3,695,076					$	4,700,366
Investments:
Trading investments at fair value (cost of $40,270 and $41,715, respectively)						53,732						53,262
Available-for-sale investments at fair value (cost of $1,747,064 and $2,042,473, respectively)						1,656,977						1,933,226
Other investments						97,960						112,377
Total investments						1,808,669						2,098,865
Loans held for investment (net of allowance for losses of $1,443,715 and $1,435,920, respectively)						21,091,204						20,902,158
Restricted cash						173,485						173,894
Other interest-earning assets						3,383						4,880
Accrued interest receivable						1,553,979						1,546,590
Premises and equipment, net						117,426						119,354
Goodwill and acquired intangible assets, net						62,510						63,532
Income taxes receivable, net						338,292						425,625
Other assets						55,160						36,846
Total assets						$	28,899,184					$	30,072,110
Liabilities
Deposits						$	20,073,168					$	21,068,568
Long-term borrowings						6,147,473						6,440,345
Other liabilities						277,687						403,277
Total liabilities						26,498,328						27,912,190
Commitments and contingencies
Equity
Preferred stock, par value $0.20 per share, 20 million shares authorized:
Series B: 2.5 million and 2.5 million shares issued, respectively, at stated value of $100 per share						251,070						251,070
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 442.8 million and 440.6 million shares issued, respectively						88,566						88,121
Additional paid-in capital						1,209,017						1,193,753
Accumulated other comprehensive loss (net of tax benefit of ($18,080) and ($21,209), respectively)						(55,631)						(65,861)
Retained earnings						4,386,169						4,114,446
Total SLM Corporation stockholders’ equity before treasury stock						5,879,191						5,581,529
Less: Common stock held in treasury at cost: 232.1 million and 230.2 million shares, respectively						(3,478,335)						(3,421,609)
Total equity						2,400,856						2,159,920
Total liabilities and equity						$	28,899,184					$	30,072,110

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SLM CORPORATION
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
						Three Months Ended
						March 31,
(Dollars in thousands, except share and per share amounts)						2025						2024
Interest income:
Loans						$	598,767					$	596,607
Investments						14,746						14,507
Cash and cash equivalents						42,577						52,444
Total interest income						656,090						663,558
Interest expense:
Deposits						204,139						220,445
Interest expense on short-term borrowings						3,401						3,562
Interest expense on long-term borrowings						73,580						52,535
Total interest expense						281,120						276,542
Net interest income						374,970						387,016
Less: provisions for credit losses						23,286						12,041
Net interest income after provisions for credit losses						351,684						374,975
Non-interest income:
Gains on sales of loans, net						187,735						143,039
Gains (losses) on securities, net						(10,378)						2,118
Other income						28,687						29,001
Total non-interest income						206,044						174,158
Non-interest expenses:
Operating expenses:
Compensation and benefits						90,830						96,476
FDIC assessment fees						12,403						13,312
Other operating expenses						50,355						50,645
Total operating expenses						153,588						160,433
Acquired intangible assets amortization expense						1,021						1,215
Total non-interest expenses						154,609						161,648
Income before income tax expense						403,119						387,485
Income tax expense						98,579						97,554
Net income						304,540						289,931
Preferred stock dividends						3,956						4,653
Net income attributable to SLM Corporation common stock						$	300,584					$	285,278
Basic earnings per common share						$	1.43					$	1.29
Average common shares outstanding						210,682						220,416
Diluted earnings per common share						$	1.40					$	1.27
Average common and common equivalent shares outstanding						214,986						223,845
Declared dividends per common share						$	0.13					$	0.11

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