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- **Strategic Growth Opportunity**: Federal PLUS reforms could boost annual originations by 70%, with $5 billion in potential by 2026.
- **Capital Efficiency**: New private credit partnership reduces risk and enhances earnings predictability.
- **2026 Guidance**: EPS of $2.70-2.80, 12-14% origination growth, and $750-780 million in expenses.
- **Credit Stability**: Delinquency rate at 4%, stable net charge-offs, and successful loan modification programs.
- **Share Buybacks**: $500 million authorization to continue capital return strategy.

**【CEO Summary Section】**
- The private student lending sector remains robust, with college enrollment at Tier 1 schools up and cosigner rates increasing.
- Federal PLUS reforms are expected to drive $5 billion in annual originations by 2026, representing a 70% growth over 2025.
- A strategic partnership with a private credit entity offers capital efficiency and predictable earnings, with no performance-based fees.
- 2025 results: Q4 EPS of $1.12, full-year EPS of $3.46, and $7.4 billion in private education loan originations (6% growth).

**【CFO Financial Commentary】**
- 2025 share repurchases totaled $373 million, with a new $500 million 2-year authorization announced.
- Net interest margin (NIM) was 5.24% for the year, up 5 basis points, driven by asset/liability management.
- 2026 guidance: Noninterest expenses of $750-780 million (12-14% origination growth), EPS of $2.70-2.80.
- Credit metrics: 4% delinquency rate, 2.42% net charge-off rate, stable loan modification performance.

**【Q&A Highlights】**
- Impact of wage garnishment postponement on Sallie Mae is minimal due to differing customer bases.
- PLUS origination growth will be modest in 2026, with significant increases over the next 2-3 years.
- 30-40% of originations will flow through strategic partnerships, affecting loan portfolio composition.
- Long-term EPS growth (high teens to low 20%) expected from 2027, driven by PLUS reforms and partnerships.
- Credit confidence remains strong, with stable metrics and successful loan modification programs.

SLM Corporation (SLM) Q4 2025 Earnings Call Transcript

- **Revenue & Credit Excellence**: 6.4% originations growth, cosigner rate 95%, FICO 756, net charge-offs 1.95%.
- **Strategic Momentum**: $1.9B loan sale, 55% share buyback, new private credit partnership to unlock $4-5B annual origination growth.
- **Financial Strength**: 5.18% NIM, 15.8% liquidity, 80%+ mod borrowers paying consistently.
- **Long-Term Vision**: PLUS reform driving 6%+ origination growth, alternative funding models for capital-light expansion.

**【CEO Summary Section】**
- **Revenue Growth**: GAAP diluted EPS of $0.63 per share, with loan originations up 6.4% YoY to $2.9B.
- **Credit Quality**: Cosigner rate improved to 95%, FICO score at 756, and net charge-offs at 1.95%, down 13 bps YoY.
- **Strategic Actions**: Completed $1.9B loan sale, repurchased 5.6M shares (55% reduction since 2020), and announced new private credit partnership.
- **Long-Term Outlook**: Optimistic on PLUS reform and alternative funding models, targeting 6%+ origination growth.

**【CFO Financial Commentary】**
- **Net Interest Income**: $373M (up $14M YoY), NIM 5.18% (18 bps YoY expansion).
- **Credit Metrics**: Provision for credit losses $179M (down $92M YoY), delinquency 4% (30+ days) stable vs. prior quarter.
- **Cost Efficiency**: Noninterest expenses $180M (aligned with full-year outlook), liquidity ratio 15.8%.
- **Portfolio Management**: 80%+ of mod borrowers consistently paying, 25 bps delinquency attributed to stricter mod eligibility.

**【Q&A Key Highlights】**
- **Credit Stability**: Delinquency trends explained by mod policy change, roll rates stable despite seasonal peak.
- **Partnership Clarity**: Designated held-for-sale loans to reduce CECL, 2025 EPS guidance updated to $3.20-$3.30.
- **Growth Drivers**: Grad originations +11% YoY, PLUS reform to unlock $4-5B annual origination growth.
- **Capital Allocation**: Buyback appetite contingent on partnership close, 7%+ ROE target.
- **Risk Management**: 1.95% net charge-offs vs. 2.1% long-term, alternative credit models to diversify risk.

SLM Corporation (SLM) Q3 2025 Earnings Call Transcript

- **Q2 Results Solid**: EPS $0.32, stable originations, improved credit metrics (84% cosigner rate). 
- **$1.8B Loan Sale**: Pricing aligns with expectations, part of balanced growth strategy. 
- **Federal Reforms Opportunity**: $4.5B-$5B annual origination boost by 2027, driven by PLUS program caps. 
- **Credit Resilience**: Delinquency rate stable at 3.5%, charge-offs explained by wildfire forbearance. 
- **Liquidity Strong**: 17.8% liquidity ratio, 16.3% loss absorption capacity. 
- **Private Credit Expansion**: Exploring alternative funding to complement loan sales, targeting scalable partnerships.

**【CEO Summary Section】**
- **Q2 2025 Results**: GAAP diluted EPS of $0.32, loan originations of $686 million (flat YoY). Credit quality improved with 84% cosigner rate (vs. 80% in Q2 2024) and average FICO score of 754. 
- **Share Buybacks**: Repurchased 2.4M shares ($29.46 avg price), reducing outstanding shares by 53% since 2020. 
- **Loan Sale**: Agreed to sell $1.8B in private education loans, pricing in line with expectations. 
- **Federal Reforms Impact**: Anticipates $4.5B-$5B annual incremental origination volume by 2027, driven by Parent PLUS and Grad PLUS program changes. 
- **Strategy**: Balancing balance sheet growth with loan sales, exploring private credit partnerships for scalable funding. 

**【CFO Financial Commentary】**
- **Net Interest Income**: $377M (up $5M YoY), NIM of 5.31% (4bps expansion QoQ). 
- **Credit Performance**: Delinquency rate 3.5% (flat YoY), net charge-offs 2.36% (up 17bps YoY due to wildfire forbearance). 
- **Liquidity**: Liquidity ratio 17.8%, GAAP equity + loan loss reserves / RWA at 16.3%. 
- **Reserves**: Provision for credit losses $149M (up $132M YoY), allowance ratio stable at 5.95%. 

**【Q&A Highlights】**
- **Loan Sales Timing**: Potential Q4 2025 sale, but dependent on peak season and capital stress testing. 
- **Credit Quality**: 80% of borrowers in loan mod programs consistently repay post-mod. 
- **Federal Reforms Risk**: No material impact on portfolio from policy changes or economic softness. 
- **Private Credit Strategy**: Seeking structures that balance capital efficiency with predictable returns, not simple forward flow arrangements. 
- **Market Share**: Maintaining ~60%+ market share in private student lending, 67% in grad loans. 
- **Grad PLUS vs Parent PLUS**: 2/3 of incremental volume from Grad PLUS, shorter duration and higher returns than undergrad loans.

SLM Corporation (SLM) Q2 2025 Earnings Call Transcript

- **EPS Beats Expectations**: Q1 2025 EPS of $1.40 vs. $1.27 in Q1 2024, driven by 7.3% loan origination growth and $188M loan sale gains.
- **Credit Strength**: Net charge-offs down 26bps YoY to 1.88%, with 93% cosigner rate and FICO 753 reflecting improved underwriting.
- **Capital Return**: $188M gains from $2B loan sale; 1M shares repurchased at $29.65, reducing shares outstanding by 53% since 2020.
- **Expense Efficiency**: 4% YoY expense decline to $155M, with plans to maintain 2025 guidance of flat to +2% growth.
- **Macro Resilience**: No material impact from federal policy changes; 85% of delinquent federal borrowers are current on Sallie Mae loans.


**【CEO Opening Remarks】**
- Q1 2025 GAAP diluted EPS: $1.40 (vs. $1.27 in Q1 2024), driven by 7.3% YoY loan originations growth to $2.8B.
- Credit quality improvement: cosigner rate 93% (vs. 91% in Q1 2024), average FICO at approval 753 (vs. 748 in Q1 2024).
- Net charge-offs: $76M (1.88% of average loans), down 26bps YoY, benefiting from seasonal trends and enhanced loss mitigation programs.
- $2B loan sale generated $188M gains (8% premium), with additional sales planned for 2025 based on market conditions.
- Share buybacks: 1M shares repurchased in Q1 at $29.65 avg price, reducing shares outstanding by 53% since 2020.

**【CFO Financial Highlights】**
- Net interest income: $375M (down $12M YoY but +$13M QoQ), with NIM of 5.27% (vs. 4.92% in Q4 2024).
- Provision for credit losses: $23M (vs. $12M in Q1 2024), offset by $116M reserve release from loan sale.
- Noninterest expenses: $155M (-4% YoY despite higher origination volume).
- Liquidity: 16.8% of total assets; risk-based capital ratio: 12.9%.

**【Q&A Key Takeaways】**
- **Credit Performance**: Delinquency rate at 3.6% (vs. 3.4% in Q1 2024), with 50% reduction in loan modification enrollments due to optimized eligibility.
- **Macro Risks**: Monitoring federal policy changes (e.g., wage garnishment resumption) but no material impact seen on Sallie Mae borrowers (85% of delinquent federal borrowers are current on Sallie Mae loans).
- **Balance Sheet Growth**: Targeting moderate loan growth to balance capital returns (buybacks funded by loan sales) and dividend potential.
- **Expense Efficiency**: 4% YoY expense decline reflects operational leverage, with plans to maintain 2025 guidance of flat to +2% expense growth.
- **Policy Impact**: Potential shift of federal loan borrowers to private loans if federal programs tighten, but early origination trends in Q1 2025 show no significant swap-in activity.


SLM (SLM)-24 Apr 25-2025 Q1 Earnings call transcript

- **Strong 2024 Performance**: $7B in originations (+10% YoY), EPS of $2.68 (+11.2%), and improved credit metrics (90% co-signer rate, 752 avg FICO). 
- **2025 Growth Targets**: 6-8% origination growth, 2.0-2.2% net charge-offs, and EPS of $3-$3.10. 
- **NIM Outlook**: NIM expected to stabilize in 2025 after short-term compression. 
- **Plus Reform Readiness**: 60-80% of Plus borrowers may not qualify; preparing for potential volume shifts. 
- **Capital Return**: $2B in 2024 loan sales support buybacks, with 52% share reduction since 2020.

**【CEO Summary Section】**
- **Revenue and Originations Growth**: Private education loan originations reached $7 billion in 2024, a 10% increase over 2023, with Q4 originations up 17% YoY. Full year GAAP diluted EPS was $2.68, a 11.2% YoY increase. 
- **Credit Quality Improvement**: Co-signer rates rose to 90% (from 87% in 2023) and average FICO score at approval increased to 752. Net charge-offs for the year were $332 million (2.2% of average loans), down 25bps YoY.
- **2025 Outlook**: Guidance includes 6-8% origination growth, 2.0-2.2% net charge-off rate, and GAAP EPS of $3-$3.10. Balance sheet growth target is 5% for 2025, with loan sales to moderate growth.

**【CFO Financial Commentary】**
- **Net Interest Margin (NIM)**: Q4 NIM was 4.92%, down from 5.19% in 2023 due to funding rate catch-up. Long-term NIM target is low to mid-5%.
- **Expense Management**: Full year non-interest expenses were $642 million, below 2023 levels. Share buybacks reduced outstanding shares by 52% since 2020.
- **Liquidity and Capital**: Ended Q4 with 20.3% liquidity, common equity Tier-1 capital at 11.3%, and GAAP equity plus loan loss reserves at 15.6% of risk-weighted assets.

**【Q&A Highlights】**
- **NIM Compression**: NIM expected to stabilize in 2025 as funding rates align with asset yields. 2024 loan sales ($2 billion) will support capital return.
- **Plus Reform Impact**: 60-80% of Plus borrowers may not meet credit criteria. Sallie Mae is preparing for potential volume shifts but no specific estimates.
- **Originations Growth**: 2024 spring season was typical, but fall saw 13% growth due to Discover exit. 2025 guidance reflects normalized spring/fall growth patterns.
- **Credit Reserves**: Allowance rate stabilized at 5.83%, with long-term improvement expected from loss mitigation programs (80%+ borrowers complete first repayment).

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