Slm Stock Earnings Reports

Sallie Mae reported a solid Q1 2026: diluted EPS $1.54 (up from $1.40), loan originations $2.9B (up 5% y/y), net charge-offs $89M, and net interest margin 5.29%. The company executed $3.3B in loan sales during the quarter (generating $146M in gains), including a $2B seasoned portfolio sale, and launched a $200M accelerated share repurchase (ASR) while placing a new 10b5-1 repurchase plan in motion. Year-to-date buybacks totaled ~12M shares (≈6% of shares outstanding at end-2025); since 2020 shares outstanding have been reduced ~58% (avg price $17.15). Management is preparing for expected multiyear growth from federal Grad PLUS reform—stating that originations could rise as much as ~70% over the coming years—and is building partnerships (initial KKR flow + an additional partner expected by year-end) to scale funding and originate/sell loans. Q1 results included an $11M negative provision (driven by $131M reserve release tied to sales), a reserve rate of 6.05%, noninterest expenses of $171M (efficiency ratio 30.6%), liquidity at 21.2% of assets, total risk-based capital 13.7% and CET1 12.4%. Management raised full-year 2026 EPS guidance to $3.10–$3.20, assuming full use of the $500M buyback authorization and roughly $1B of incremental loan sales beyond prior plans, while reaffirming other guidance elements (originations growth, NCOs, noninterest expense). Credit trends remained stable/improving: delinquencies 30+ days at 3.98% (modestly lower y/y), later-stage delinquencies ~1%, approval FICO ~754 and cosigner rate ~95%. Management expects expense investment to be front‑loaded in 2026 (marketing, product/systems) with operating leverage and improved efficiency expected later in the growth period.