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As Of Filer Filing For·On·As Docs:Size Issuer Filing Agent 4/24/24 SLM Corp. 8-K:2,9 4/24/24 12:1.3M Workiva Inc Wde… FA01/FA |
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Document |
News Release | ||||||||
For Immediate Release |
NEWARK,
Del., April 24, 2024 — Sallie Mae (Nasdaq:SLM), formally SLM Corporation, today released its first-quarter 2024 financial results. | ||||||||||||||||||||||||||
$1.27 GAAP Diluted Earnings Per Common Share | 6% Private Education Loan Originations Growth from Year-Ago Quarter | $2.1B Sale of Private Education Loans in Q1 2024 | $83M Total Net Charge-Offs (2.1%
of Average Loans in Repayment (annualized)) | $162M Non-Interest Expenses |
“We are off to a solid start in 2024 executing our strategy, delivering strong results, and returning value to our shareholders through our loan sale and share repurchase program. We are encouraged by credit performance trends, and believe
we have momentum for continued positive performance throughout the rest of the year.” Jonathan Witter, CEO, Sallie Mae | Private Education Loan Portfolio Trends ▪$21.4B of average loans outstanding, net, down 1% from Q1 2023. ▪$12M in provisions for credit losses in Q1 2024, compared with $113 million in Q1 2023. ▪6.1%
allowance as a percentage of the ending total loan balance and accrued interest to be capitalized, compared with 6.4% in Q1 2023. ▪1.0% loans in a hardship forbearance, unchanged from Q1 2023.(2) ▪2.7% delinquencies, excluding those loans within a loan modification qualifying period, as a percentage of loans in repayment, down from 3.1% in Q1 2023.(3) ▪2.14% net charge-offs as a percentage of average loans in repayment (annualized), compared with
2.11% in Q1 2023. | |||||||||||||||||||
Balance Sheet & Capital Allocation | ||||||||||||||||||||
$0.11 Common stock dividend paid in Q1 2024 | 13.5% Total risk-based capital ratio and CET1 capital ratio of 12.3% | |||||||||||||||||||
1.3M Shares repurchased in Q1 2024 for $27 million(4) | $623M Capacity
remaining under the 2024 Share Repurchase Program as of | |||||||||||||||||||
Income Statement & Earnings Summary | 2024 Guidance* For the full year 2024, the Company expects: | |||||||||||||||||||
$285M GAAP Net Income attributable to common stock in Q1 2024 | 5.49% Net interest margin for Q1 2024; decrease of 21 basis points from Q1 2023 | $2.60
- $2.70** Diluted Earnings Per Common Share | 7% - 8% Private Education Loan Originations Year-over-Year Growth | |||||||||||||||||
$143M Gain on sale of loans in Q1 2024 | $12M Provision for credit losses; increase related to originations and prepayment assumptions, offset by $133M release of provision from loan sale | $340 million - $370 million Total Loan Portfolio Net Charge-Offs, or 2.2% - 2.4% of Average Loans in Repayment | $635
million - $655 million Non-Interest Expenses |
Quarterly
Financial Highlights(1) |
1Q 2024 | 4Q 2023 | 1Q 2023 | |||||||||
Income Statement ($ millions) | |||||||||||
Total interest income | $664 | $669 | $638 | ||||||||
Total interest expense | 277 | 283 | 233 | ||||||||
Net interest income | 387 | 386 | 405 | ||||||||
Less: provisions for credit losses | 12 | 16 | 114 | ||||||||
Total non-interest income | 174 | 57 | 22 | ||||||||
Total non-interest expenses | 162 | 202 | 157 | ||||||||
Income tax expense | 97 | 57 | 37 | ||||||||
Net income | 290 | 168 | 119 | ||||||||
Preferred stock dividends | 5 | 5 | 4 | ||||||||
Net income attributable to common stock | $285 | $164 | $114 | ||||||||
Ending Balances ($ millions) | |||||||||||
Private Education Loans held for investment, net | $19,688 | $19,772 | $20,498 | ||||||||
FFELP Loans held for investment, net | 513 | 534 | 590 | ||||||||
Deposits | $20,903 | $21,653 | $21,804 | ||||||||
Brokered | 10,289 | 10,275 | 10,275 | ||||||||
Retail and other | 10,614 | 11,378 | 11,529 | ||||||||
Key Performance Metrics ($ in millions) | |||||||||||
Net interest margin | 5.49% | 5.37% | 5.70% | ||||||||
Yield - Total interest-earning assets | 9.41% | 9.30% | 8.97% | ||||||||
Private Education Loans | 11.01% | 11.02% | 10.66% | ||||||||
Cost of Funds | 4.18% | 4.17% | 3.47% | ||||||||
Return on Assets (“ROA”)(5) | 4.1% | 2.3% | 1.7% | ||||||||
Return
on Common Equity (“ROCE”)(6) | 65.6% | 40.2% | 30.5% | ||||||||
Private Education Loan sales | $2,100 | $1,100 | $— | ||||||||
Per Common Share | |||||||||||
GAAP diluted earnings per common share | $1.27 | $0.72 | $0.47 | ||||||||
Average common and common equivalent shares outstanding (millions) | 224 | 227 | 244 |
SLM CORPORATION | ||||||||||||||
CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||||||||
March 31, | December 31, | |||||||||||||
(Dollars in thousands, except share and per share amounts) | 2024 | 2023 | ||||||||||||
Assets | ||||||||||||||
Cash and cash equivalents | $ | 3,584,013 | $ | 4,149,838 | ||||||||||
Investments: | ||||||||||||||
Trading investments at fair value (cost of $44,978 and $43,412, respectively) | 58,166 | 54,481 | ||||||||||||
Available-for-sale investments at fair value (cost of $2,423,183 and $2,563,984, respectively) | 2,271,108 | 2,411,622 | ||||||||||||
Other investments | 89,765 | 91,567 | ||||||||||||
Total investments | 2,419,039 | 2,557,670 | ||||||||||||
Loans held for investment (net of allowance for losses of $1,350,058 and $1,339,772, respectively) | 20,200,789 | 20,306,357 | ||||||||||||
Restricted cash | 147,809 | 149,669 | ||||||||||||
Other interest-earning assets | 7,572 | 9,229 | ||||||||||||
Accrued interest receivable | 1,386,487 | 1,379,904 | ||||||||||||
Premises and equipment, net | 127,414 | 129,501 | ||||||||||||
Goodwill and acquired intangible assets, net | 67,496 | 68,711 | ||||||||||||
Income taxes receivable, net | 277,733 | 366,247 | ||||||||||||
Other assets | 58,930 | 52,342 | ||||||||||||
Total assets | $ | 28,277,282 | $ | 29,169,468 | ||||||||||
Liabilities | ||||||||||||||
Deposits | $ | 20,903,456 | $ | 21,653,188 | ||||||||||
Long-term borrowings | 4,976,882 | 5,227,512 | ||||||||||||
Other liabilities | 283,205 | 407,971 | ||||||||||||
Total liabilities | 26,163,543 | 27,288,671 | ||||||||||||
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: 440.2 million and 438.2 million shares issued, respectively | 88,032 | 87,647 | ||||||||||||
Additional paid-in capital | 1,163,838 | 1,148,689 | ||||||||||||
Accumulated other comprehensive loss (net of tax benefit of ($24,752) and ($24,176), respectively) | (77,291) | (75,104) | ||||||||||||
Retained earnings | 3,884,694 | 3,624,859 | ||||||||||||
Total SLM Corporation stockholders’ equity before treasury stock | 5,310,343 | 5,037,161 | ||||||||||||
Less: Common stock held in treasury at cost: 219.9 million and 217.9 million shares, respectively | (3,196,604) | (3,156,364) | ||||||||||||
Total equity | 2,113,739 | 1,880,797 | ||||||||||||
Total liabilities and equity | $ | 28,277,282 | $ | 29,169,468 |
SLM CORPORATION | ||||||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
March 31, | ||||||||||||||||||||||||||
(Dollars in thousands, except per share amounts) | 2024 | 2023 | ||||||||||||||||||||||||
Interest income: | ||||||||||||||||||||||||||
Loans | $ | 596,607 | $ | 582,784 | ||||||||||||||||||||||
Investments | 14,507 | 11,331 | ||||||||||||||||||||||||
Cash and cash equivalents | 52,444 | 43,483 | ||||||||||||||||||||||||
Total interest income | 663,558 | 637,598 | ||||||||||||||||||||||||
Interest expense: | ||||||||||||||||||||||||||
Deposits | 220,445 | 183,531 | ||||||||||||||||||||||||
Interest expense on short-term borrowings | 3,562 | 3,018 | ||||||||||||||||||||||||
Interest expense on long-term borrowings | 52,535 | 45,981 | ||||||||||||||||||||||||
Total interest expense | 276,542 | 232,530 | ||||||||||||||||||||||||
Net interest income | 387,016 | 405,068 | ||||||||||||||||||||||||
Less: provisions for credit losses | 12,041 | 114,112 | ||||||||||||||||||||||||
Net interest income after provisions for credit losses | 374,975 | 290,956 | ||||||||||||||||||||||||
Non-interest income: | ||||||||||||||||||||||||||
Gains (losses) on sales of loans, net | 143,039 | (9) | ||||||||||||||||||||||||
Gains on securities, net | 2,118 | 1,711 | ||||||||||||||||||||||||
Other income | 29,001 | 20,009 | ||||||||||||||||||||||||
Total non-interest income | 174,158 | 21,711 | ||||||||||||||||||||||||
Non-interest expenses: | ||||||||||||||||||||||||||
Operating expenses: | ||||||||||||||||||||||||||
Compensation and benefits | 96,476 | 87,649 | ||||||||||||||||||||||||
FDIC assessment fees | 13,312 | 11,529 | ||||||||||||||||||||||||
Other operating expenses | 50,645 | 55,361 | ||||||||||||||||||||||||
Total operating expenses | 160,433 | 154,539 | ||||||||||||||||||||||||
Acquired intangible assets amortization expense | 1,215 | 2,272 | ||||||||||||||||||||||||
Total non-interest expenses | 161,648 | 156,811 | ||||||||||||||||||||||||
Income before income tax expense | 387,485 | 155,856 | ||||||||||||||||||||||||
Income tax expense | 97,554 | 37,338 | ||||||||||||||||||||||||
Net income | 289,931 | 118,518 | ||||||||||||||||||||||||
Preferred stock dividends | 4,653 | 4,063 | ||||||||||||||||||||||||
Net income attributable to SLM Corporation common stock | $ | 285,278 | $ | 114,455 | ||||||||||||||||||||||
Basic earnings per common share | $ | 1.29 | $ | 0.47 | ||||||||||||||||||||||
Average common shares outstanding | 220,416 | 241,497 | ||||||||||||||||||||||||
Diluted earnings per common share | $ | 1.27 | $ | 0.47 | ||||||||||||||||||||||
Average common and common equivalent shares outstanding | 223,845 | 243,549 | ||||||||||||||||||||||||
Declared dividends per common share | $ | 0.11 | $ | 0.11 |
This ‘8-K’ Filing | Date | Other Filings | ||
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Filed on / For Period end: | 4/24/24 | |||
3/31/24 | ||||
3/31/23 | 10-Q | |||
List all Filings |