slm-20241023
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K

CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (date of earliest event reported): October 23, 2024

SLM CORPORATION
(Exact name of registrant as specified in its charter)
Delaware
001-13251
52-2013874
(State or other jurisdiction of incorporation or organization)
(Commission File Number)
(I.R.S. Employer Identification No.)
300 Continental Drive
Newark,
Delaware
19713
(Address of principal executive offices)
(Zip Code)

Registrant's telephone number, including area code: (302) 451-0200
(Former name or former address, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common stock, par value $.20 per shareSLMThe NASDAQ Global Select Market
Floating Rate Non-Cumulative Preferred Stock, Series B, par value $.20 per shareSLMBPThe NASDAQ Global Select Market

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.




ITEM 2.02    RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On October 23, 2024, SLM Corporation (the “Company”) reported its financial results for the quarter ended September 30, 2024. A copy of the Company’s press release and related earnings results were made available on www.SallieMae.com/investors, and are also furnished as Exhibit 99.1 hereto and incorporated by reference herein.
The information furnished in this Item 2.02, including Exhibit 99.1 attached hereto and incorporated by reference herein, is being furnished and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that Section. Furthermore, such information, including such Exhibit, shall not be deemed incorporated by reference into any of the Company’s registration statements, reports or other filings with the Securities and Exchange Commission, except as expressly set forth by specific reference in such registration statement, report or other filing.


ITEM 9.01    FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits
Exhibit
Number
Description
 99.1*
104Cover Page Interactive Data File (formatted as Inline XBRL)
*Furnished herewith.









SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

                        
SLM CORPORATION
Date: October 23, 2024
By:/s/ PETER M. GRAHAM
Peter M. Graham
Executive Vice President, Chief Financial Officer and Treasurer


                

                            
                    




Document

Exhibit 99.1
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News Release
For Immediate Release

Sallie Mae Reports Third-Quarter 2024 Financial Results
and Increases Dividend on Common Stock for Fourth-Quarter 2024

NEWARK, Del., Oct. 23, 2024 - Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today released third-quarter 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 also announced an increase to its 2024 fourth-quarter dividend on its common stock from $0.11 to $0.13 per share. Sallie Mae further announced a 2024 fourth-quarter dividend on its Preferred Stock Series B of $1.7448719 per share. Both common stock and preferred stock dividends will be paid on Dec. 16, 2024, to the respective stockholders of record at the close of business on Dec. 5, 2024.

Sallie Mae will host an earnings conference call today, Oct. 23, 2024, 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
Melissa Bronaugh, 571-526-2455, melissa.bronaugh@salliemae.com



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NEWARK, Del., Oct. 23, 2024 — Sallie Mae (Nasdaq:SLM), formally SLM Corporation, today released its third-quarter 2024 financial results.
$0.23
GAAP Net Loss Per Common Share
13%
Private Education Loan Originations Growth from Year-Ago Quarter
5.3M
Shares repurchased in Q3 2024 for $115M(1)
$77M
Total Net Charge-Offs (2.09% of Average Total Loan Portfolio in Repayment (annualized))
$172M
Non-Interest Expenses
“We delivered another successful peak season, outperforming our estimates for originations growth. We are pleased with trends in both credit quality of originations and charge-offs. We continue to return capital to shareholders, and our updated guidance confirms we believe we are well positioned to grow our business and execute on the goals we set out for this year.”
                                   
                                Jonathan Witter, CEO, Sallie Mae
Private Education Loan Portfolio Trends

$20.5B of average loans outstanding, net, down 1% from Q3 2023.

$267M in provisions for credit losses in Q3 2024, compared with $197M in Q3 2023.

1.01% loans in a hardship forbearance, a decrease from 1.17% in Q3 2023.(2)

3.60% delinquencies as a percentage of loans in repayment, down from 3.65% in Q3 2023.

2.08% net charge-offs as a percentage of average loans in repayment (annualized), compared with 2.53% in Q3 2023.
Balance Sheet & Capital Allocation
$0.11
Common stock dividend per share paid in Q3 2024
12.9%
Total risk-based capital ratio and CET1 capital ratio of 11.6%
$448M
Capacity remaining under the 2024 Share Repurchase Program as of September 30, 2024
Statement of Operations & Earnings Summary
2024 Guidance*
For the full year 2024, the Company expects:
$50M
GAAP Net Loss attributable to common stock in Q3 2024
5.00%
Net interest margin for Q3 2024, a decrease of 43 basis points from Q3 2023
$2.70 - $2.80
Diluted Earnings Per Common Share
8% - 9%
Private Education Loan Originations Year-over-Year Growth
$271M
Provision for credit losses, an increase from Q3 2023 primarily due to increase in loan commitments, net of expired commitments.
$325 million - $340 million
Total Loan Portfolio Net Charge-Offs, or 2.1% - 2.3% of Average Loans in Repayment
$635 million - $655 million
Non-Interest Expenses
Investor Contact: Melissa Bronaugh, 571-526-2455                 Media Contact: Rick Castellano, 302-451-2541

* The 2024 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.





Quarterly Financial Highlights
Q3 2024Q2 2024Q3 2023
Statement of Operations ($ millions)
Total interest income$653$641$652
Total interest expense293269268
Net interest income359372385
Less: provisions for credit losses27117198
Total non-interest income2414224
Total non-interest expenses172159170
Income tax expense (benefit)(14)8711
Net income (loss)(45)25229
Preferred stock dividends555
Net income (loss) attributable to common stock$(50)$247$25
Ending Balances ($ millions)
Private Education Loans held for investment, net$20,460$18,433$20,348
FFELP Loans held for investment, net483551
FFELP Loans held for sale, net486
Deposits$21,445$20,744$21,551
Brokered9,84410,03310,376
Retail and other11,60110,71111,175
Key Performance Metrics ($ in millions)
Net interest margin5.00%5.36%5.43%
Yield - Total interest-earning assets9.07%9.25%9.21%
Private Education Loans10.79%10.91%10.96%
Cost of Funds4.35%4.16%4.00%
Return on Assets (“ROA”)(3)
(0.6)%3.6%0.4%
Return on Common Equity (“ROCE”)(4)
(10.2)%50.6%6.3%
Private Education Loan sales$—$1,590$—
Per Common Share
GAAP diluted earnings (loss) per common share$(0.23)$1.11$0.11
Average common and common equivalent shares outstanding (millions)215222229
















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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 September 30, 2024, we had $448 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 $159 million and $183 million at September 30, 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.





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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; 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 2024 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.























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SLM CORPORATION
CONSOLIDATED BALANCE SHEETS (Unaudited)
September 30,December 31,
(Dollars in thousands, except share and per share amounts)20242023
Assets
Cash and cash equivalents$4,489,539 $4,149,838 
Investments:
Trading investments at fair value (cost of $43,373 and $43,412, respectively)54,840 54,481 
Available-for-sale investments at fair value (cost of $2,113,257 and $2,563,984, respectively)2,022,605 2,411,622 
Other investments114,210 91,567 
Total investments2,191,655 2,557,670 
Loans held for investment (net of allowance for losses of $1,413,621 and $1,339,772, respectively)20,459,933 20,306,357 
Loans held for sale485,701 — 
Restricted cash170,984 149,669 
Other interest-earning assets5,820 9,229 
Accrued interest receivable1,537,594 1,379,904 
Premises and equipment, net122,972 129,501 
Goodwill and acquired intangible assets, net64,877 68,711 
Income taxes receivable, net428,778 366,247 
Other assets54,914 52,342 
Total assets$30,012,767 $29,169,468 
Liabilities
Deposits$21,445,457 $21,653,188 
Long-term borrowings6,036,527 5,227,512 
Other liabilities397,033 407,971 
Total liabilities27,879,017 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 share251,070 251,070 
Common stock, par value $0.20 per share, 1.125 billion shares authorized: 440.5 million and 438.2 million shares issued, respectively88,106 87,647 
Additional paid-in capital1,185,187 1,148,689 
Accumulated other comprehensive loss (net of tax benefit of ($16,210) and ($24,176), respectively)(50,339)(75,104)
Retained earnings4,034,640 3,624,859 
Total SLM Corporation stockholders’ equity before treasury stock5,508,664 5,037,161 
Less: Common stock held in treasury at cost: 228.2 million and 217.9 million shares, respectively(3,374,914)(3,156,364)
Total equity2,133,750 1,880,797 
Total liabilities and equity$30,012,767 $29,169,468 
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SLM CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
Three Months EndedNine Months Ended
 September 30,September 30,
(Dollars in thousands, except per share amounts)2024202320242023
Interest income:
Loans$565,046 $581,080 $1,726,991 $1,732,206 
Investments16,299 13,268 45,945 36,636 
Cash and cash equivalents71,294 57,902 184,737 154,911 
Total interest income652,639 652,250 1,957,673 1,923,753 
Interest expense:
Deposits225,749 209,921 657,480 584,859 
Interest expense on short-term borrowings3,467 3,576 10,339 9,893 
Interest expense on long-term borrowings64,020 54,125 171,263 152,674 
Total interest expense293,236 267,622 839,082 747,426 
Net interest income359,403 384,628 1,118,591 1,176,327 
Less: provisions for credit losses271,465 198,023 300,336 329,864 
Net interest income after provisions for credit losses87,938 186,605 818,255 846,463 
Non-interest income:
Gains (losses) on sales of loans, net(31)(5)254,937 124,740 
Gains (losses) on securities, net(3,836)1,490 385 1,988 
Other income28,390 22,753 85,164 63,275 
Total non-interest income24,523 24,238 340,486 190,003 
Non-interest expenses:
Operating expenses:
Compensation and benefits87,566 83,577 269,303 249,459 
FDIC assessment fees12,973 12,283 38,012 33,663 
Other operating expenses70,259 71,542 181,122 192,983 
Total operating expenses170,798 167,402 488,437 476,105 
Acquired intangible assets amortization expense1,225 2,834 3,834 7,351 
Total non-interest expenses172,023 170,236 492,271 483,456 
Income (loss) before income tax expense (benefit)(59,562)40,607 666,470 553,010 
Income tax expense (benefit)(14,410)11,242 169,698 140,062 
Net income (loss)(45,152)29,365 496,772 412,948 
Preferred stock dividends4,648 4,642 13,929 12,979 
Net income (loss) attributable to SLM Corporation common stock$(49,800)$24,723 $482,843 $399,969 
Basic earnings (loss) per common share$(0.23)$0.11 $2.21 $1.71 
Average common shares outstanding214,873 226,120 218,059 234,170 
Diluted earnings (loss) per common share$(0.23)$0.11 $2.18 $1.69 
Average common and common equivalent shares outstanding214,873 228,800 221,553 236,593 
Declared dividends per common share$0.11 $0.11 $0.33 $0.33 


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