SLM Corp

For the period ended Mar 31, 2024. Filed Apr 24, 2024.

About this filing

A company's report for each of its first three quarters. The financial statements are not audited. It shows how the business has moved since the last annual report, and what management says changed.

Mar 31, 2024 · Filed Apr 24, 2024

SLM$16.94-3.3%Stored close · as of Nov 6, 2026

See the whole filing, with its images and exhibits

Contents

Item 1. Financial Statements

CONSOLIDATED BALANCE SHEETS (Unaudited)
	March 31,	December 31,
(Dollars in thousands, except share and per share amounts)	2024	2023
Assets
Cash and cash equivalents	$3,584,013	$4,149,838
Investments:
Trading investments at fair value (cost of $44,978 and $43,412, respectively)	58,166	54,481
Available-for-sale investments at fair value (cost of $2,423,183 and $2,563,984, respectively)	2,271,108	2,411,622
Other investments	89,765	91,567
Total investments	2,419,039	2,557,670
Loans held for investment (net of allowance for losses of $1,350,058 and $1,339,772, respectively)	20,200,789	20,306,357
Restricted cash	147,809	149,669
Other interest-earning assets	7,572	9,229
Accrued interest receivable	1,386,487	1,379,904
Premises and equipment, net	127,414	129,501
Goodwill and acquired intangible assets, net	67,496	68,711
Income taxes receivable, net	277,733	366,247
Other assets	58,930	52,342
Total assets	$28,277,282	$29,169,468
Liabilities
Deposits	$20,903,456	$21,653,188
Long-term borrowings	4,976,882	5,227,512
Other liabilities	283,205	407,971
Total liabilities	26,163,543	27,288,671
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: 440.2 million and 438.2 million shares issued, respectively	88,032	87,647
Additional paid-in capital	1,163,838	1,148,689
Accumulated other comprehensive loss (net of tax benefit of ($24,752) and ($24,176), respectively)	(77,291)	(75,104)
Retained earnings	3,884,694	3,624,859
Total SLM Corporation stockholders’ equity before treasury stock	5,310,343	5,037,161
Less: Common stock held in treasury at cost: 219.9 million and 217.9 million shares, respectively	(3,196,604)	(3,156,364)
Total equity	2,113,739	1,880,797
Total liabilities and equity	$28,277,282	$29,169,468

SLM CORPORATION 3

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands, except per share amounts)	Three Months Ended March 31,
	2024	2023
Interest income:
Loans	$596,607	$582,784
Investments	14,507	11,331
Cash and cash equivalents	52,444	43,483
Total interest income	663,558	637,598
Interest expense:
Deposits	220,445	183,531
Interest expense on short-term borrowings	3,562	3,018
Interest expense on long-term borrowings	52,535	45,981
Total interest expense	276,542	232,530
Net interest income	387,016	405,068
Less: provisions for credit losses	12,041	114,112
Net interest income after provisions for credit losses	374,975	290,956
Non-interest income:
Gains (losses) on sales of loans, net	143,039	(9)
Gains on securities, net	2,118	1,711
Other income	29,001	20,009
Total non-interest income	174,158	21,711
Non-interest expenses:
Operating expenses:
Compensation and benefits	96,476	87,649
FDIC assessment fees	13,312	11,529
Other operating expenses	50,645	55,361
Total operating expenses	160,433	154,539
Acquired intangible assets amortization expense	1,215	2,272
Total non-interest expenses	161,648	156,811
Income before income tax expense	387,485	155,856
Income tax expense	97,554	37,338
Net income	289,931	118,518
Preferred stock dividends	4,653	4,063
Net income attributable to SLM Corporation common stock	$285,278	$114,455
Basic earnings per common share	$1.29	$0.47
Average common shares outstanding	220,416	241,497
Diluted earnings per common share	$1.27	$0.47
Average common and common equivalent shares outstanding	223,845	243,549
Declared dividends per common share	$0.11	$0.11

4 SLM CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
(Dollars in thousands)	Three Months Ended March 31,
	2024	2023
Net income	$289,931	$118,518
Other comprehensive income (loss):
Unrealized gains on investments	286	35,556
Unrealized losses on cash flow hedges	(3,049)	(14,999)
Total unrealized gains (losses)	(2,763)	20,557
Income tax (expense) benefit	576	(5,020)
Other comprehensive income (loss), net of tax (expense) benefit	(2,187)	15,537
Total comprehensive income	$287,744	$134,055

SLM CORPORATION 5

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited)
	Common Stock Shares
(In thousands, except share and per share amounts)	Preferred Stock Shares	Issued	Treasury	Outstanding	Preferred Stock	Common Stock	Additional Paid-In Capital	AccumulatedOtherComprehensiveLoss	Retained Earnings	Treasury Stock	Total Equity
Balance at December 31, 2022	2,510,696	435,121,140	(194,445,696)	240,675,444	$251,070	$87,025	$1,109,072	$(93,870)	$3,163,640	$(2,789,967)	$1,726,970
Net income	—	—	—	—	—	—	—	—	118,518	—	118,518
Other comprehensive loss, net of tax	—	—	—	—	—	—	—	15,537	—	—	15,537
Total comprehensive income	—	—	—	—	—	—	—	—	—	—	134,055
Cash dividends declared:
Common stock ($0.11 per share)	—	—	—	—	—	—	—	—	(26,635)	—	(26,635)
Preferred Stock, Series B ($1.62 per share)	—	—	—	—	—	—	—	—	(4,063)	—	(4,063)
Issuance of common shares	—	2,523,744	—	2,523,744	—	505	474	—	(982)	—	(3)
Stock-based compensation expense	—	—	—	—	—	—	11,536	—	—	—	11,536
Shares repurchased related to employee stock-based compensation plans	—	—	(949,431)	(949,431)	—	—	—	—	—	(14,765)	(14,765)
Balance at March 31, 2023	2,510,696	437,644,884	(195,395,127)	242,249,757	$251,070	$87,530	$1,121,082	$(78,333)	$3,250,478	$(2,804,732)	$1,827,095

6 SLM CORPORATION

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY (Unaudited)
	Common Stock Shares
(In thousands, except share and per share amounts)	Preferred Stock Shares	Issued	Treasury	Outstanding	Preferred Stock	Common Stock	Additional Paid-In Capital	AccumulatedOtherComprehensiveLoss	Retained Earnings	Treasury Stock	Total Equity
Balance at December 31, 2023	2,510,696	438,230,416	(217,886,532)	220,343,884	$251,070	$87,647	$1,148,689	$(75,104)	$3,624,859	$(3,156,364)	$1,880,797
Net income	—	—	—	—	—	—	—	—	289,931	—	289,931
Other comprehensive loss, net of tax	—	—	—	—	—	—	—	(2,187)	—	—	(2,187)
Total comprehensive income	—	—	—	—	—	—	—	—	—	—	287,744
Cash dividends declared:
Common stock ($0.11 per share)	—	—	—	—	—	—	—	—	(24,278)	—	(24,278)
Preferred Stock, Series B ($1.85 per share)	—	—	—	—	—	—	—	—	(4,653)	—	(4,653)
Issuance of common shares	—	1,925,920	—	1,925,920	—	385	1,359	—	(1,165)	—	579
Stock-based compensation expense	—	—	—	—	—	—	13,790	—	—	—	13,790
Common stock repurchased	—	—	(1,310,723)	(1,310,723)	—	—	—	—	—	(26,639)	(26,639)
Shares repurchased related to employee stock-based compensation plans	—	—	(683,247)	(683,247)	—	—	—	—	—	(13,601)	(13,601)
Balance at March 31, 2024	2,510,696	440,156,336	(219,880,502)	220,275,834	$251,070	$88,032	$1,163,838	$(77,291)	$3,884,694	$(3,196,604)	$2,113,739

SLM CORPORATION 7

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Three Months Ended March 31,
(Dollars in thousands)	2024	2023
Operating activities
Net income	$289,931	$118,518
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provisions for credit losses	12,041	114,112
Income tax expense	97,554	37,338
Amortization of brokered deposit placement fee	2,803	3,121
Amortization of Secured Borrowing Facility upfront fee	713	723
Amortization of deferred loan origination costs and loan premium/(discounts), net	3,229	3,421
Net amortization of discount on investments	(601)	(622)
Increase in tax indemnification receivable	—	(42)
Depreciation of premises and equipment	4,705	4,524
Acquired intangible assets amortization expense	1,215	2,272
Stock-based compensation expense	13,790	11,536
Unrealized (gains) losses on derivatives and hedging activities, net	20	(56)
(Gains) losses on sales of loans, net	(143,039)	9
Gains on securities, net	(2,118)	(1,711)
Other adjustments to net income, net	2,939	3,063
Changes in operating assets and liabilities:
Increase in accrued interest receivable	(287,000)	(257,888)
Increase in non-marketable securities	(283)	—
Decrease (increase) in other interest-earning assets	1,657	(1,869)
Increase in other assets	(23,046)	(26,632)
(Decrease) increase in income taxes payable, net	(6,463)	2,483
(Decrease) increase in accrued interest payable	(15,738)	20,358
Decrease in other liabilities	(29,020)	(23,770)
Total adjustments	(366,642)	(109,630)
Total net cash (used in) provided by operating activities	(76,711)	8,888
Investing activities
Loans acquired and originated	(2,593,293)	(2,463,358)
Net proceeds from sales of loans held for investment and loans held for sale	2,149,774	(9)
Proceeds from FFELP Loan claim payments	10,819	11,274
Net decrease in loans held for investment and loans held for sale (other than loans acquired and originated, and loan sales)	751,120	912,681
Purchases of available-for-sale securities	(25,790)	(4,992)
Proceeds from sales and maturities of available-for-sale securities	279,700	73,352
Total net cash provided by (used in) investing activities	572,330	(1,471,052)
Financing activities
Brokered deposit placement fee	—	(2,634)
Net increase in certificates of deposit	31,555	515,909
Net decrease in other deposits	(787,295)	(167,836)
Borrowings collateralized by loans in securitization trusts - issued	—	569,871
Borrowings collateralized by loans in securitization trusts - repaid	(253,176)	(293,120)
Fees paid on Secured Borrowing Facility	—	(16)
Common stock dividends paid	(24,278)	(26,635)
Preferred stock dividends paid	(4,653)	(4,063)
Common stock repurchased	(25,457)	(4,005)
Total net cash (used in) provided by financing activities	(1,063,304)	587,471
Net decrease in cash, cash equivalents and restricted cash	(567,685)	(874,693)
Cash, cash equivalents and restricted cash at beginning of period	4,299,507	4,772,836
Cash, cash equivalents and restricted cash at end of period	$3,731,822	$3,898,143
Cash disbursements made for:
Interest	$284,041	$198,874

8 SLM CORPORATION

Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Balance Sheets:
Income taxes paid	$7,280	$4,700
Income taxes refunded	$(1,001)	$(7,273)
Cash and cash equivalents	$3,584,013	$3,716,379
Restricted cash	147,809	181,764
Total cash, cash equivalents and restricted cash	$3,731,822	$3,898,143

SLM CORPORATION 9

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The text of this filing, as the company filed it with the SEC, without its images or exhibits. This is not investment advice.