Sallie Mae (Nasdaq: SLM) lifts 2026 EPS outlook after stronger Q1
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
SLM Corporation reported stronger first quarter 2026 results and raised its full-year earnings outlook. GAAP diluted earnings per common share were $1.54, up from $1.40 a year earlier, with net income of $308 million and net income attributable to common stock of $304 million.
Private Education Loan originations grew 5% from the prior-year quarter, and average loans outstanding, net, were $23.3 billion. Net interest margin was 5.29% with a 4.13% cost of funds, while non-interest expenses were $171 million, in line with company expectations. Credit performance remained within guidance, with net charge-offs of $89 million, delinquencies at 3.98%, and loans in hardship forbearance at 0.99%.
The company continued significant capital returns, repurchasing 12.0 million shares for $259 million, entering a $200 million accelerated share repurchase with an initial 8.4 million shares delivered, and paying a $0.13 dividend per share. It now expects full-year 2026 diluted earnings per common share of $3.10 to $3.20, Private Education Loan originations growth of 12% to 14%, net charge-offs of $345 to $385 million, and non-interest expenses of $750 to $780 million.
Positive
- Raised 2026 earnings outlook: Full-year 2026 diluted EPS guidance increased to $3.10–$3.20, alongside targeted 12%–14% Private Education Loan origination growth, indicating management confidence in sustained profitability and demand.
- Stronger quarterly profitability: GAAP diluted EPS rose to $1.54 from $1.40 a year earlier, with net income of $308 million, supported by a 5.29% net interest margin and continued loan sales gains.
- Robust capital returns: The company repurchased 12.0 million shares for $259 million, initiated a $200 million accelerated share repurchase, and paid a $0.13 per share dividend, while retaining $242 million of remaining repurchase capacity.
Negative
- None.
Insights
Q1 earnings improved, credit held within plan, and guidance was raised.
SLM delivered GAAP diluted EPS of $1.54, up from $1.40 in Q1 2025, with net income of $308M. Net interest margin of 5.29% and cost of funds of 4.13% show a still-profitable spread in a high-rate environment.
Credit metrics were described as within expectations, with net charge-offs of $89M, delinquencies at 3.98%, and hardship forbearance at 0.99%. These levels, while higher than a year earlier, remain embedded in the company’s 2026 outlook.
Capital return was sizable: 12.0 million shares were repurchased for $259M, plus a $200M accelerated share repurchase and a $0.13 dividend per share. Management raised 2026 diluted EPS guidance to $3.10–$3.20 and targets 12–14% Private Education Loan origination growth, signaling confidence in earnings and loan demand.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
GAAP diluted EPS: $1.54 per share
Net income: $308 million
Private Education Loan originations growth: 5% year-over-year
+5 more
8 metrics
GAAP diluted EPS
$1.54 per share
Q1 2026, up from $1.40 in Q1 2025
Net income
$308 million
Q1 2026 consolidated net income
Private Education Loan originations growth
5% year-over-year
Q1 2026 vs Q1 2025
Net interest margin
5.29%
Q1 2026 key performance metric
Share repurchases
12.0 million shares for $259 million
Capital return in Q1 2026
2026 EPS guidance
$3.10–$3.20 per share
Full-year 2026 diluted earnings outlook
2026 originations growth guidance
12%–14% year-over-year
Private Education Loan originations for full-year 2026
Net charge-offs guidance
$345–$385 million
Full-year 2026 expected net charge-offs
Key Terms
net interest margin, Efficiency Ratio, Return on Common Equity, accelerated share repurchase, +2 more
6 terms
net interest margin financial
"Earnings for the quarter were supported by net interest margin of 5.29%"
Net interest margin measures how much a bank earns from lending and investing compared with what it pays for funding, expressed as a percentage of its interest-earning assets. Think of it like a grocery store’s markup: it shows the gap between buying cost and selling price per dollar of goods — here, the cost is interest paid and the sale is interest received. Investors watch it because a higher margin usually means a bank is more profitable and better at managing interest rate and credit conditions.
Efficiency Ratio financial
"Efficiency Ratio (3) | 30.6% | 34.6% | 26.6%"
A measure of how much a company spends to produce each dollar of revenue, usually shown as operating expenses divided by revenue and expressed as a percentage. Think of it as a household’s budget: a lower percentage means more of each dollar earned stays as profit, while a higher number means costs are eating into returns. Investors use it to judge cost control and compare how efficiently companies turn revenue into earnings, especially in banks and financial firms.
Return on Common Equity financial
"Return on Common Equity (“ROCE”) (5) | 56.4% | 42.2% | 60.1%"
Return on common equity measures the profit a company generates for ordinary shareholders over a period, usually a year, by dividing net income available to those common shareholders by the average common shareholders’ equity. It tells investors how efficiently their invested dollars are being used—like checking how much profit each dollar of ownership produces—and helps compare profitability across companies and evaluate management performance.
hardship forbearance financial
"Loans in a hardship forbearance were 0.99% for the first quarter of 2026"
provisions for credit losses financial
"Less: provisions for credit losses | (11) | (19) | 23"
An amount a lender or bank sets aside from earnings to cover loans and other credits it expects might not be repaid. Think of it as a rainy-day fund for unpaid bills: increasing the provision reduces reported profit today but protects the balance sheet if borrowers default, while a smaller provision can temporarily boost earnings but may signal higher future risk. Investors watch it to judge loan quality and future earnings stability.
Earnings Snapshot
Net income: $308 million · Guidance included
Q1 2026
Net income
$308 million
slightly above $305 million in Q1 2025
GAAP diluted EPS
$1.54
up from $1.40 in Q1 2025
Net interest income
$375 million
roughly flat versus $375 million in Q1 2025
Non-interest expenses
$171 million
higher than $155 million in Q1 2025
Guidance
For full-year 2026, the company expects diluted EPS of $3.10–$3.20, 12%–14% Private Education Loan originations growth, net charge-offs of $345–$385 million, and non-interest expenses of $750–$780 million.
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): April 23, 2026
(Exact name of registrant as specified in its charter)
(State or other jurisdiction of incorporation or organization) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
(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 class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
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:
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 April 23, 2026, SLM Corporation (the “Company”) reported its financial results for the quarter ended March 31, 2026. 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* | Press Release, dated April 23, 2026 | |||||||
| 104 | Cover 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: April 23, 2026 | By: | /s/ PETER M. GRAHAM | ||||||
| Peter M. Graham | ||||||||
| Executive Vice President and Chief Financial Officer | ||||||||
Exhibit 99.1
 | ||
| News Release | ||
| For Immediate Release | ||
Sallie Mae Reports First Quarter 2026 Financial Results
and Raises Full-Year 2026 Diluted Earnings per Common Share Guidance
and Raises Full-Year 2026 Diluted Earnings per Common Share Guidance
NEWARK, Del., April 23, 2026 — Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today released first quarter 2026 financial results and raised full-year 2026 diluted earnings per common share 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 23, 2026, 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.
###
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
Media, media@salliemae.com
Investors
Investor Relations, IR@salliemae.com
Sallie Mae First Quarter 2026 Financial Results | ||||||||
NEWARK, Del., April 23, 2026 — Sallie Mae (Nasdaq:SLM), formally SLM Corporation, today released its first quarter 2026 financial results and raised full-year 2026 diluted earnings per common share guidance.
$1.54 GAAP Diluted Earnings Per Common Share | 5% Private Education Loan Originations Growth from Year-Ago Quarter | ||||
$89M Net Charge-Offs | $171M Non-Interest Expenses | ||||
“Our first quarter results underscore the strength and durability of our strategy and franchise. We’re delivering strong performance today while positioning the organization well to capitalize on significant long-term growth opportunities in private education lending now and in the future.” Jonathan Witter, CEO, Sallie Mae | ||||||||
First Quarter Performance Reflects Continued Earnings and Originations Growth | •GAAP diluted earnings per common share were $1.54, up from $1.40 in the year-ago quarter, due to strong loan sales representing continued demand for Private Education Loans and disciplined decisions across funding, expenses, and capital management. •Private Education Loan originations increased 5% from the year-ago quarter. •Average loans outstanding, net, totaled $23.3 billion during the quarter. | ||||
Earnings Supported by Strategic Balance Sheet Actions | •Earnings for the quarter were supported by net interest margin of 5.29%, reflecting effective balance sheet management and continued funding discipline, including a lower cost of funds, 4.13%, compared with the year-ago quarter. •Non-interest expenses totaled $171 million, increasing compared to the year-ago quarter and remaining consistent with the Company’s expectations and full-year guidance. • First quarter 2026 results also benefited from strategic balance sheet actions, including Private Education Loan sales that generated $146 million gain on sale, supporting earnings while enhancing capital flexibility. •The Company continued to actively manage our funding profile, including through securitization activity, further reinforcing balance sheet efficiency and supporting ongoing capital deployment priorities. | ||||
Capital Deployment Reflects Strong Earnings Performance | •The Company returned capital to stockholders by repurchasing 12.0 million shares of common stock for $259 million(1) during the first quarter of 2026 and paying a quarterly dividend of $0.13 per share. •The Company entered into a $200 million accelerated share repurchase (“ASR”) in March 2026, including an initial delivery of 8.4 million shares. •At March 31, 2026, $242 million of capacity remained available under the Company’s 2026 Share Repurchase Program. | ||||
Credit Performance Remains Within Expectations | •Net charge-offs of $89 million were consistent with our expectations and full-year guidance. •Delinquencies as a percentage of loans in repayment were 3.98% for the first quarter of 2026, compared with 3.58% for the first quarter of 2025. •Loans in a hardship forbearance were 0.99% for the first quarter of 2026, compared with 0.92% for the first quarter of 2025(2). | ||||
2026 Guidance*
The Company raised full-year 2026 diluted earnings per common share guidance. For the full-year 2026, the Company expects:
$3.10 - $3.20 Diluted Earnings Per Common Share | 12% - 14% Private Education Loan Originations Year-Over-Year Growth | ||||
$345 - $385 million Net Charge-Offs | $750 - $780 million Non-Interest Expenses | ||||
*The 2026 Guidance and related comments constitute forward-looking statements and are based on management’s current expectations and beliefs. There can be no guarantee as to whether and to what extent this guidance will be achieved. The Company undertakes no obligation to revise or release any revision or update to these forward-looking statements. See our Forward-Looking Statements disclosures on pg. 4 for more information.
Investor Contact: Investor Relations, IR@salliemae.com Media Contact: Media, media@salliemae.com
2
| Quarterly Financial Highlights | ||
| Q1 2026 | Q4 2025 | Q1 2025 | |||||||||
| Income Statement ($ millions) | |||||||||||
| Total interest income | $649 | $657 | $656 | ||||||||
| Total interest expense | 274 | 280 | 281 | ||||||||
| Net interest income | 375 | 377 | 375 | ||||||||
| Less: provisions for credit losses | (11) | (19) | 23 | ||||||||
| Total non-interest income | 185 | 77 | 206 | ||||||||
| Total non-interest expenses | 171 | 157 | 155 | ||||||||
| Income tax expense | 92 | 83 | 99 | ||||||||
| Net income | 308 | 233 | 305 | ||||||||
| Preferred stock dividends | 4 | 4 | 4 | ||||||||
| Net income attributable to common stock | $304 | $229 | $301 | ||||||||
| Ending Balances ($ millions) | |||||||||||
| Private Education Loans held for investment, net | $19,887 | $20,332 | $21,091 | ||||||||
| Private Education Loans held for sale, net | 236 | $933 | — | ||||||||
| Deposits | 20,525 | 21,060 | 20,073 | ||||||||
| Brokered | 8,676 | 8,784 | 8,689 | ||||||||
| Retail and other | 11,849 | 12,276 | 11,384 | ||||||||
| Key Performance Metrics ($ in millions) | |||||||||||
| Net interest margin | 5.29% | 5.21% | 5.27% | ||||||||
| Yield - Total interest-earning assets | 9.14% | 9.07% | 9.22% | ||||||||
| Private Education Loans | 10.46% | 10.44% | 10.59% | ||||||||
| Cost of Funds | 4.13% | 4.14% | 4.23% | ||||||||
Efficiency Ratio(3) | 30.6% | 34.6% | 26.6% | ||||||||
Return on Assets (“ROA”)(4) | 4.2% | 3.1% | 4.2% | ||||||||
Return on Common Equity (“ROCE”)(5) | 56.4% | 42.2% | 60.1% | ||||||||
| Private Education Loan sales | $3,332 | $1,014 | $2,003 | ||||||||
| Per Common Share | |||||||||||
| GAAP diluted earnings per common share | $1.54 | $1.12 | $1.40 | ||||||||
| Average common and common equivalent shares outstanding (millions) | 198 | 205 | 215 | ||||||||
3
Footnotes:
(1) Shares of common stock were repurchased under Rule 10b5-1 trading plans and the ASR. As of March 31, 2026, we had $242 million of capacity remaining under the 2026 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 $157 million and $151 million at March 31, 2026 and 2025, respectively.
(3) We calculate and report our Efficiency Ratio as the ratio of (a) total non-interest expenses numerator to (b) the net denominator, which consists of net interest income plus total non-interest income.
(4) 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.
(5) 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.
***
4
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. See SLM Corporation’s most recently filed Annual Report on Form 10-K and subsequent filings with the Securities and Exchange Commission (“SEC Filings”) for definitions and descriptions of terms used in this presentation. Statements that are not historical facts, including statements about SLM Corporation’s beliefs, opinions, expectations, and/or statements that assume or are dependent upon future events, are forward-looking statements. These include, but are not limited to, the strategies, goals, and assumptions of SLM Corporation and its subsidiaries, collectively or individually as the context requires (the “Company,” “we,” “our,” or “us”); the Company’s expectation and ability to execute loan sales (including sales under the Company’s strategic partnership) and share repurchases; the Company’s expectation and ability to pay a quarterly cash dividend on the Company’s common stock in the future, subject to approval of the Board of Directors; the Company’s 2026 guidance; the Company’s three-year horizon outlook; the Company’s credit outlook; the impact of acquisitions the Company has 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 changes in credit administration practices, 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 Company’s control, which may cause actual results to differ materially from those reflected in such forward-looking statements. There can be no assurance that future developments affecting the Company will be as anticipated by management. The Company cautions readers that a number of important factors could cause actual results to differ materially from those expressed in, implied by, or projected in such forward-looking statements. These factors include, among others, the risks and uncertainties set forth in Item 1A., “Risk Factors,” and elsewhere in SLM Corporation’s SEC Filings; 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 current federal administration; the 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 related changes in significant accounting estimates, including those regarding the measurement of the Company’s allowance for credit losses and the related provision expense; any adverse outcomes in 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 the Company’s risk management framework and quantitative models; changes in the terms of education loans and the educational credit marketplace (including changes resulting from new laws and the implementation of existing laws); and changes in the demand for the Company’s deposit products, including changes caused by new or emerging market entrants or technologies. The Company could also be affected by, among other things, changes in funding costs and availability; reductions to credit ratings; cybersecurity incidents, cyberattacks, risks related to artificial intelligence (“AI”), and other failures or breaches of operating systems or infrastructure, including those of third-party vendors; the societal, demographic, business, and legislative/regulatory impacts of pandemics, other public health crises, severe weather events, and/or natural disasters; damage to reputation; risks associated with restructuring initiatives, including failures to successfully implement cost-cutting programs and the adverse effects of such initiatives on the business; changes in the demand for higher education, educational financing, or financing preferences of lenders, educational institutions, students, and their families, including changes to the amount or availability of funding that educational institutions, students, or their families receive from government sources; changes in laws 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; changes in customer creditworthiness; changes in the general interest rate environment, including the rate relationships among relevant money-market instruments and those of earning assets versus funding arrangements; rates of prepayments on loans owned by the Company; and changes in general economic or macroeconomic conditions, including, but not limited to, changes due to inflation, stagflation, recession, shifts in the labor market, and changes to government policies or initiatives, such as tariffs, trade wars, wars, immigration, and student visa policies, which could negatively impact consumer or business sentiment, demand for higher education, demand for student loans, financial and business results and/or modeling, and the ability to successfully effectuate any acquisitions, strategic partnerships, or initiatives. The preparation of the Company’s 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. The Company’s past performance is not indicative of future results, and actual results may differ materially from any projections and/or estimates herein. The Company does not undertake any obligation to update, supplement, or revise any forward-looking statements or estimates to conform to actual results or changes in the Company’s 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 place undue reliance on any forward-looking statements or estimates discussed herein.
5
| SLM CORPORATION | ||||||||||||||
| CONSOLIDATED BALANCE SHEETS (Unaudited) | ||||||||||||||
| March 31, | December 31, | |||||||||||||
| (Dollars in thousands, except share and per share amounts) | 2026 | 2025 | ||||||||||||
| Assets | ||||||||||||||
| Cash and cash equivalents | $ | 5,157,453 | $ | 4,241,265 | ||||||||||
| Investments: | ||||||||||||||
Trading investments at fair value (cost of $36,571 and $37,606, respectively) | 45,817 | 49,250 | ||||||||||||
Available-for-sale investments at fair value (cost of $1,795,093 and $1,812,408, respectively) | 1,744,224 | 1,758,070 | ||||||||||||
| Other investments | 112,442 | 115,394 | ||||||||||||
| Total investments | 1,902,483 | 1,922,714 | ||||||||||||
Loans held for investment (net of allowance for losses of $1,383,166 and $1,430,318, respectively) | 19,886,735 | 20,332,124 | ||||||||||||
| Loans held for sale | 236,049 | 933,256 | ||||||||||||
| Restricted cash | 223,923 | 177,263 | ||||||||||||
| Other interest-earning assets | 101 | 120 | ||||||||||||
| Accrued interest receivable | 1,532,051 | 1,562,811 | ||||||||||||
| Premises and equipment, net | 121,546 | 122,193 | ||||||||||||
| Goodwill and acquired intangible assets, net | 59,234 | 59,974 | ||||||||||||
| Income taxes receivable, net | 261,310 | 347,260 | ||||||||||||
| Other assets | 28,706 | 47,315 | ||||||||||||
| Total assets | $ | 29,409,591 | $ | 29,746,295 | ||||||||||
| Liabilities | ||||||||||||||
| Deposits | $ | 20,525,486 | $ | 21,060,151 | ||||||||||
| Short-term borrowings | 498,889 | 498,415 | ||||||||||||
| Long-term borrowings | 5,670,293 | 5,362,494 | ||||||||||||
| Other liabilities | 277,291 | 373,877 | ||||||||||||
| Total liabilities | 26,971,959 | 27,294,937 | ||||||||||||
| 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: 445.4 million and 443.2 million shares issued, respectively | 89,086 | 88,650 | ||||||||||||
| Additional paid-in capital | 1,224,442 | 1,240,250 | ||||||||||||
Accumulated other comprehensive loss (net of tax benefit of ($12,745) and ($13,446), respectively) | (38,049) | (40,128) | ||||||||||||
| Retained earnings | 5,010,721 | 4,734,313 | ||||||||||||
| Total SLM Corporation stockholders’ equity before treasury stock | 6,537,270 | 6,274,155 | ||||||||||||
Less: Common stock held in treasury at cost: 256.8 million and 244.0 million shares, respectively | (4,099,638) | (3,822,797) | ||||||||||||
| Total equity | 2,437,632 | 2,451,358 | ||||||||||||
| Total liabilities and equity | $ | 29,409,591 | $ | 29,746,295 | ||||||||||
6
| SLM CORPORATION | ||||||||||||||
| CONSOLIDATED STATEMENTS OF INCOME (Unaudited) | ||||||||||||||
| Three Months Ended | ||||||||||||||
| March 31, | ||||||||||||||
| (Dollars in thousands, except share and per share amounts) | 2026 | 2025 | ||||||||||||
| Interest income: | ||||||||||||||
| Loans | $ | 602,262 | $ | 598,767 | ||||||||||
| Investments | 14,968 | 14,746 | ||||||||||||
| Cash and cash equivalents | 32,079 | 42,577 | ||||||||||||
| Total interest income | 649,309 | 656,090 | ||||||||||||
| Interest expense: | ||||||||||||||
| Deposits | 200,609 | 204,139 | ||||||||||||
| Interest expense on short-term borrowings | 5,128 | 3,401 | ||||||||||||
| Interest expense on long-term borrowings | 68,161 | 73,580 | ||||||||||||
| Total interest expense | 273,898 | 281,120 | ||||||||||||
| Net interest income | 375,411 | 374,970 | ||||||||||||
| Less: provisions for credit losses | (11,466) | 23,286 | ||||||||||||
| Net interest income after provisions for credit losses | 386,877 | 351,684 | ||||||||||||
| Non-interest income: | ||||||||||||||
| Gains on sales of loans, net | 146,313 | 187,735 | ||||||||||||
| Losses on securities, net | (2,398) | (10,378) | ||||||||||||
| Other income | 40,662 | 28,687 | ||||||||||||
| Total non-interest income | 184,577 | 206,044 | ||||||||||||
| Non-interest expenses: | ||||||||||||||
| Operating expenses: | ||||||||||||||
| Compensation and benefits | 103,446 | 90,830 | ||||||||||||
| FDIC assessment fees | 4,441 | 12,403 | ||||||||||||
| Other operating expenses | 62,474 | 50,355 | ||||||||||||
| Total operating expenses | 170,361 | 153,588 | ||||||||||||
| Acquired intangible assets amortization expense | 740 | 1,021 | ||||||||||||
| Total non-interest expenses | 171,101 | 154,609 | ||||||||||||
| Income before income tax expense | 400,353 | 403,119 | ||||||||||||
| Income tax expense | 92,399 | 98,579 | ||||||||||||
| Net income | 307,954 | 304,540 | ||||||||||||
| Preferred stock dividends | 3,555 | 3,956 | ||||||||||||
| Net income attributable to SLM Corporation common stock | $ | 304,399 | $ | 300,584 | ||||||||||
| Basic earnings per common share | $ | 1.56 | $ | 1.43 | ||||||||||
| Average common shares outstanding | 195,460 | 210,682 | ||||||||||||
| Diluted earnings per common share | $ | 1.54 | $ | 1.40 | ||||||||||
| Average common and common equivalent shares outstanding | 197,875 | 214,986 | ||||||||||||
| Declared dividends per common share | $ | 0.13 | $ | 0.13 | ||||||||||
7
FAQ
How did SLM (SLM) perform financially in the first quarter of 2026?
SLM posted GAAP diluted EPS of $1.54, up from $1.40 a year earlier, with net income of $308 million. Net interest income was $375 million, non-interest income $185 million, and non-interest expenses $171 million, supporting solid overall profitability.
What loan growth did SLM (SLM) report for Q1 2026?
SLM reported 5% growth in Private Education Loan originations compared with the year-ago quarter. Average loans outstanding, net, totaled $23.3 billion during the quarter, reflecting continued demand for the company’s private education lending products.
What is SLM’s (SLM) updated full-year 2026 earnings guidance?
For full-year 2026, SLM now expects diluted earnings per common share of $3.10 to $3.20. Management also targets 12%–14% Private Education Loan originations growth, $345–$385 million in net charge-offs, and $750–$780 million in non-interest expenses.
How is SLM (SLM) managing credit quality in Q1 2026?
SLM’s credit performance remained within expectations, with net charge-offs of $89 million. Delinquencies were 3.98% of loans in repayment, and loans in hardship forbearance were 0.99%, modestly higher than a year earlier but aligned with full-year guidance.
What capital return actions did SLM (SLM) take in Q1 2026?
SLM returned substantial capital, repurchasing 12.0 million common shares for $259 million and paying a $0.13 dividend per share. It also entered a $200 million accelerated share repurchase and ended the quarter with $242 million remaining under its 2026 repurchase program.
What were SLM’s (SLM) key profitability and efficiency metrics in Q1 2026?
SLM reported a net interest margin of 5.29%, a cost of funds of 4.13%, and an efficiency ratio of 30.6%. Return on assets was 4.2%, while return on common equity reached 56.4%, highlighting strong profitability relative to its asset and equity base.