SLM : 2026 First-Quarter Earnings Presentation

Published: 2026-04-23 17:28:28 ET SLM

Published on 04/23/2026 at 05:28 pm EDT

Results Reflect Continued Earnings and Originations Growth

Q1 2026

Private Education Loan Originations(1)

5% growth compared to the year-ago quarter

Diluted Earnings Per Common Share

GAAP Net Income attributable to Common Stock of $304M

Total Non-Interest Expenses

As compared to $155M in the year-ago quarter

+5%

2025 2026

Net Interest Margin

An increase of 2 basis points from year-ago quarter

Cost of Funds

Compared to 4.23% in the year-ago quarter

Capital Deployment and Strategic Balance Sheet Actions

Q1 2026

Share Repurchases

Shares repurchased in the quarter for $259M, representing 6% of shares outstanding at 12/31/2025

Loan Sales

Private Education Loans, including $3.1B of principal and

$201M of capitalized interest

Common Stock Dividend Per Share

Paid on March 16, 2026

Accelerated Share Repurchase ("ASR")

On March 9th, SLM entered into a $200M ASR with Goldman Sachs & Co., LLC.

Transactions under the ASR agreement are expected to be completed prior to the end of the 2nd quarter of 2026.

$242M capacity remaining under the 2026 Share Repurchase Program as of March 31, 2026.

Total Shares Repurchased Since January 1, 2020

58%+

at an average price of

$17.15

2026-A ABS Securitization

Successfully completed the first private education loan ABS transaction of the year on March 11, 2026, with strong pricing in a volatile market

Credit Performance Remains Within Expectations

Q1 2026

Net Charge-Offs

Reflecting disciplined underwriting and continued optimization across loss mitigation, collections, and recovery strategies

Provision for Credit Losses

Provision for credit losses was impacted by a $131M release of provision from loan sales and loans transferred to held for sale, offset by an increase in new loan commitments

Delinquent 30+ Days*

Represents $611 million, as compared to 4.00% or $636 million in the prior quarter, and 3.58% or $570 million in the year-ago quarter

% in Extended Grace(2)

1.0% Private Education Loans in hardship and other forbearance(3)

⁕ Delinquencies as a percentage of loans in repayment (7)(8)

Return on Common Equity ("ROCE")(4)

Down from 60.1% in the year-ago quarter

Efficiency Ratio

Calculated as Non-Interest Expenses over Net Interest Income and Non-Interest Income

Total Risk-Based Capital

CET1 capital ratio of 12.4%

Other Key Performance Highlights

Q1 2026

Private Education Loan Originations: Growth & Trends

Q1 2026

Private Education Loan Originations(1)

$6.4B

$6.0B

$5.4B

$7.0B

$7.4B

Private Education Loan Trends

Q1 2026 originations were approximately $2.9B, 5% higher than the year-ago quarter

Graduate loan originations were 14% higher than the year-ago quarter

Sallie Mae's private education loan market share increased from 52% in 2020 to 63%

as of year-end 2025

+5%

2021 2022 2023 2024 2025 2026

+2% +10% +7% +10% +6%

Introduced expanded graduate loan options for medical and dental students with custom product features to support their unique journey through higher education

⁕ The shaded block representing full year 2026 originations is a projected estimate. These estimates and related comments constitute forward-looking statements and are based on performance during the first three months of 2026 and management's current expectations and beliefs. There can be no guarantee as to whether and to what extent these estimates 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 slide 2 for more information.

Origination Credit Quality Remains

Average FICO at Approval(5)

Cosigned In School

Repayment

Q1 2026

Strong

Compared to 753 in the year-ago quarter

Compared to 93% in the year-ago quarter

Compared to 56% in the year-ago quarter

Consistent with full-year historical performance

Average FICO at Approval(5)

750 747 748 752 754

Cosigned

86% 86% 87% 90% 93%

In School Repayment

59% 57% 55% 56% 58%

2021 2022 2023 2024 2025

Key Financial Highlights

Q1 2026

Income Statement ($M) Q1 2026 Q4 2025 Q1 2025

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 Expense $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 ($M)

Private Education Loans Held for Investment, Net $19,887 $20,332 $21,091 Private Education Loans Held for Sale, Net $236 $933 -

Total Deposits $20,525 $21,060 $20,073 Brokered Deposits $8,676 $8,784 $8,689

Retail and Other Deposits $11,849 $12,276 $11,384

Key Performance Metrics

Q1 2026

Key Performance Metrics Q1 2026 Q4 2025 Q1 2025

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 30.6% 34.6% 26.6%

Return on Assets ("ROA")(6) 4.2% 3.1% 4.2%

Return on Common Equity ("ROCE")(4) 56.4% 42.2% 60.1%

Private Education Loan Sales ($M) $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 (M)

198 205 215

Credit Performance Highlights

Q1 2026

Loans In Repayment and % of Each Status

Balance

Loans Current

$14,753,563

96.0%

$15,258,723

96.0%

$15,333,672

96.4%

Loans Delinquent 30-59 Days

$298,732

2.0%

$330,307

2.0%

$276,279

1.7%

Loans Delinquent 60-89 Days

$159,714

1.0%

$154,683

1.0%

$152,612

1.0%

Loans Delinquent 90+ Days

$152,484

1.0%

$151,114

1.0%

$141,234

0.9%

Total Private Education Loans in Repayment(7)

$15,364,493

100%

$15,894,827

100%

$15,903,797

100%

Delinquencies as % of Loans in Repayment(8)

4.0%

3.6%

Loans in Forbearance

% of Loans in Forbearance(9)

$488,404

$433,075

$464,601

% of Loans in an Extended Grace Period(2)

2.1%

1.7%

1.9%

% of Loans in Hardship and Other Forbearances(3)

1.0%

0.9%

Total Allowance % of Private Education Loan Exposure*

6.05%

6.00%

5.97%

Net Charge-Offs

$89,064

$97,752

$76,169

⁕ Total Allowance % of Private Education Loan Exposure defined as total allowance for credit losses as a percentage of the ending total loan balance plus unfunded loan commitments and total accrued interest receivable on Private Education Loans, where total allowance for credit losses represents the sum of the allowance for Private Education Loans and the allowance for unfunded loan commitments. Unfunded loan commitments for loans held for investment and the calculation of the Total Allowance % of Private Education Loan Exposure do not include $35 million of unfunded loan commitments associated with loans classified as held for sale at March 31, 2026. Due to the near-term timing of the loan sale and credit quality of the loans, we believe there is no risk of credit loss and are not recording an allowance for the unfunded loan commitments related to the loans classified as held for sale.

Private Education Loans

Held for Investment ($ Thousands)

Mar 31

2026

Quarters Ended

Dec 31

2025

Mar 31

2025

Consolidated Statements of Income -

Provision for Credit Losses Reconciliation ($ Thousands)

Quarter Ended

MAR 31

2026

Private Education Loan Provision for Credit Losses:

Provision for Loan Losses ($57,382)

Provision for Unfunded Loan Commitments $45,916

Provisions for Credit Losses Reported in Consolidated Statements of Income ($11,466)

Allowance for Credit Losses

Q1 2026

Key Factors Affecting the Provision for Credit Losses

Provision for credit losses was impacted by a $131M release of provision from loan sales and loans transferred to held for sale, offset by an increase in new loan commitments.

Total Allowance % of Private Education Loan Exposure was 6.05%, compared to 6.00% at the end of Q4 2025.

The Company raised full-year 2026 diluted earnings per common share guidance, previously $2.70 - $2.80

$3.10 - $3.20

Diluted Earnings Per Common Share

$345 - $385

million

Net Charge-Offs

12% - 14%

Private Education Loan Originations Year-Over-Year Growth

$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 slide 2 for more information.

FOOTNOTES

We define Private Education Loan originations for a period by reference to the amount of loan disbursements in that period.

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.

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.

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

Represents the higher credit score of the cosigner or the borrower.

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.

For purposes of this slide, 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 do not include those loans while they are in forbearance).

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

For purposes of this slide, loans in forbearance include 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.

Disclaimer

SLM Corporation published this content on April 23, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 23, 2026 at 21:19 UTC.