Sallie Mae Reports First-Quarter 2023 Financial Results

Rhea-AI Summary

First-Quarter Financial Performance: Sallie Mae (Nasdaq: SLM) reported a GAAP net income of $114 million, translating to $0.47 per diluted share for the first quarter of 2023. The company saw a notable 12% increase in private education loan originations, totaling $2.4 billion compared to the year-ago quarter. Credit performance improved, with net charge-offs at 2.1%, a positive shift from the previous quarter. The liquidity ratio strengthened to 19.7%, up from 17.2% year-over-year. Additionally, a $2 billion loan sale is expected to close in early May, showcasing robust operational momentum.

Positive

• 12% increase in private education loan originations to $2.4 billion.
• Improved net charge-offs at 2.1%, indicating better credit performance.
• Liquidity ratio increased to 19.7%, up from 17.2% year-over-year.
• Anticipated $2 billion loan sale expected to close in early May.

Negative

• None.

First-Quarter GAAP Net Income Attributable to Common Stock of $114 Million, or $0.47 Per Diluted Share

Private Education Loan Originations Increase 12% from Year-Ago Quarter to $2.4 Billion

Improved Credit Performance Compared with Fourth-Quarter 2022; Private Education Loan Net Charge-offs of 2.1% for the First-Quarter

Sallie Mae Bank First-Quarter Liquidity Ratio of 19.7%, up from 17.2% in the Year-Ago Quarter

The Company Expects to Close $2 Billion Loan Sale in Early May

NEWARK, Del.--(BUSINESS WIRE)-- Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today released first-quarter 2023 financial results. Highlights of those results are included in the attached supplement. Complete financial results are available at www.SallieMae.com/investors.

Sallie Mae will host an earnings conference call tomorrow, April 27, 2023, at 8 a.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.

Participants may also register for the earnings conference call. Once registration is completed, participants will be provided a dial-in number with a personalized conference code to access the call. Please dial in 15 minutes prior to the start time.

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.

Category: Corporate and Financial

View source version on businesswire.com: https://www.businesswire.com/news/home/20230426005919/en/

Media

Rick Castellano, 302-451-2541, rick.castellano@salliemae.com



Investors

Melissa Bronaugh, 571-526-2455, melissa.bronaugh@salliemae.com

Source: Sallie Mae

FAQ

What were Sallie Mae's earnings results for the first quarter of 2023?

Sallie Mae reported a GAAP net income of $114 million, or $0.47 per diluted share.

How much did Sallie Mae's private education loan originations increase?

Private education loan originations increased by 12% to $2.4 billion compared to the previous year.

What is Sallie Mae's liquidity ratio for the first quarter of 2023?

The liquidity ratio stands at 19.7%, up from 17.2% in the same quarter last year.

When is the expected closing for the loan sale announced by Sallie Mae?

The loan sale, valued at $2 billion, is expected to close in early May.