SLM Corp

For the period ended Jun 30, 2024. Filed Jul 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.

Jun 30, 2024 · Filed Jul 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)
	June 30,	December 31,
(Dollars in thousands, except share and per share amounts)	2024	2023
Assets
Cash and cash equivalents	$5,262,448	$4,149,838
Investments:
Trading investments at fair value (cost of $45,171 and $43,412, respectively)	60,473	54,481
Available-for-sale investments at fair value (cost of $2,428,037 and $2,563,984, respectively)	2,283,262	2,411,622
Other investments	107,064	91,567
Total investments	2,450,799	2,557,670
Loans held for investment (net of allowance for losses of $1,269,652 and $1,339,772, respectively)	18,915,333	20,306,357
Restricted cash	142,230	149,669
Other interest-earning assets	6,362	9,229
Accrued interest receivable	1,391,081	1,379,904
Premises and equipment, net	126,440	129,501
Goodwill and acquired intangible assets, net	66,102	68,711
Income taxes receivable, net	351,126	366,247
Other assets	56,923	52,342
Total assets	$28,768,844	$29,169,468
Liabilities
Deposits	$20,744,030	$21,653,188
Long-term borrowings	5,403,012	5,227,512
Other liabilities	338,564	407,971
Total liabilities	26,485,606	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: 440.3 million and 438.2 million shares issued, respectively	88,056	87,647
Additional paid-in capital	1,173,735	1,148,689
Accumulated other comprehensive loss (net of tax benefit of ($25,378) and ($24,176), respectively)	(78,809)	(75,104)
Retained earnings	4,107,980	3,624,859
Total SLM Corporation stockholders’ equity before treasury stock	5,542,032	5,037,161
Less: Common stock held in treasury at cost: 222.8 million and 217.9 million shares, respectively	(3,258,794)	(3,156,364)
Total equity	2,283,238	1,880,797
Total liabilities and equity	$28,768,844	$29,169,468

SLM CORPORATION 3

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(Dollars in thousands, except per share amounts)	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Interest income:
Loans	$565,338	$568,342	$1,161,945	$1,151,126
Investments	15,139	12,037	29,646	23,368
Cash and cash equivalents	60,999	53,526	113,443	97,009
Total interest income	641,476	633,905	1,305,034	1,271,503
Interest expense:
Deposits	211,286	191,407	431,731	374,938
Interest expense on short-term borrowings	3,310	3,299	6,872	6,317
Interest expense on long-term borrowings	54,708	52,568	107,243	98,549
Total interest expense	269,304	247,274	545,846	479,804
Net interest income	372,172	386,631	759,188	791,699
Less: provisions for credit losses	16,830	17,729	28,871	131,841
Net interest income after provisions for credit losses	355,342	368,902	730,317	659,858
Non-interest income:
Gains on sales of loans, net	111,929	124,754	254,968	124,745
Gains (losses) on securities, net	2,103	(1,213)	4,221	498
Other income	27,773	20,513	56,774	40,522
Total non-interest income	141,805	144,054	315,963	165,765
Non-interest expenses:
Operating expenses:
Compensation and benefits	85,261	78,233	181,737	165,882
FDIC assessment fees	11,727	9,851	25,039	21,380
Other operating expenses	60,218	66,080	110,863	121,441
Total operating expenses	157,206	154,164	317,639	308,703
Acquired intangible assets amortization expense	1,394	2,245	2,609	4,517
Total non-interest expenses	158,600	156,409	320,248	313,220
Income before income tax expense	338,547	356,547	726,032	512,403
Income tax expense	86,554	91,482	184,108	128,820
Net income	251,993	265,065	541,924	383,583
Preferred stock dividends	4,628	4,274	9,281	8,337
Net income attributable to SLM Corporation common stock	$247,365	$260,791	$532,643	$375,246
Basic earnings per common share	$1.13	$1.11	$2.42	$1.57
Average common shares outstanding	218,924	235,061	219,670	238,261
Diluted earnings per common share	$1.11	$1.10	$2.39	$1.56
Average common and common equivalent shares outstanding	222,467	237,592	223,156	240,554
Declared dividends per common share	$0.11	$0.11	$0.22	$0.22

4 SLM CORPORATION

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)
(Dollars in thousands)	Three Months Ended June 30,		Six Months Ended June 30,
	2024	2023	2024	2023
Net income	$251,993	$265,065	$541,924	$383,583
Other comprehensive income (loss):
Unrealized gains (losses) on investments	7,116	(14,512)	7,402	21,044
Unrealized gains (losses) on cash flow hedges	(9,260)	7,575	(12,309)	(7,424)
Total unrealized gains (losses)	(2,144)	(6,937)	(4,907)	13,620
Income tax (expense) benefit	626	1,706	1,202	(3,314)
Other comprehensive income (loss), net of tax (expense) benefit	(1,518)	(5,231)	(3,705)	10,306
Total comprehensive income	$250,475	$259,834	$538,219	$393,889

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 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
Net income	—	—	—	—	—	—	—	—	265,065	—	265,065
Other comprehensive loss, net of tax	—	—	—	—	—	—	—	(5,231)	—	—	(5,231)
Total comprehensive income	—	—	—	—	—	—	—	—	—	—	259,834
Cash dividends declared:
Common stock ($0.11 per share)	—	—	—	—	—	—	—	—	(25,303)	—	(25,303)
Preferred Stock, Series B ($1.70 per share)	—	—	—	—	—	—	—	—	(4,274)	—	(4,274)
Issuance of common shares	—	349,009	—	349,009	—	69	163	—	(234)	—	(2)
Stock-based compensation expense	—	—	—	—	—	—	8,292	—	—	—	8,292
Common stock repurchased	—	—	(16,389,696)	(16,389,696)	—	—	—	—	—	(257,402)	(257,402)
Shares repurchased related to employee stock-based compensation plans	—	—	(128,212)	(128,212)	—	—	—	—	—	(1,876)	(1,876)
Balance at June 30, 2023	2,510,696	437,993,893	(211,913,035)	226,080,858	$251,070	$87,599	$1,129,537	$(83,564)	$3,485,732	$(3,064,010)	$1,806,364

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 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
Net income	—	—	—	—	—	—	—	—	251,993	—	251,993
Other comprehensive loss, net of tax	—	—	—	—	—	—	—	(1,518)	—	—	(1,518)
Total comprehensive income	—	—	—	—	—	—	—	—	—	—	250,475
Cash dividends declared:
Common stock ($0.11 per share)	—	—	—	—	—	—	—	—	(24,027)	—	(24,027)
Preferred Stock, Series B ($1.84 per share)	—	—	—	—	—	—	—	—	(4,628)	—	(4,628)
Issuance of common shares	—	123,311	—	123,311	—	24	320	—	(52)	—	292
Stock-based compensation expense	—	—	—	—	—	—	9,577	—	—	—	9,577
Common stock repurchased	—	—	(2,929,646)	(2,929,646)	—	—	—	—	—	(62,019)	(62,019)
Shares repurchased related to employee stock-based compensation plans	—	—	(8,139)	(8,139)	—	—	—	—	—	(171)	(171)
Balance at June 30, 2024	2,510,696	440,279,647	(222,818,287)	217,461,360	$251,070	$88,056	$1,173,735	$(78,809)	$4,107,980	$(3,258,794)	$2,283,238

SLM CORPORATION 7

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	—	—	—	—	—	—	—	—	383,583	—	383,583
Other comprehensive loss, net of tax	—	—	—	—	—	—	—	10,306	—	—	10,306
Total comprehensive income	—	—	—	—	—	—	—	—	—	—	393,889
Cash dividends declared:
Common stock ($0.22 per share)	—	—	—	—	—	—	—	—	(51,938)	—	(51,938)
Preferred Stock, Series B ($3.32 per share)	—	—	—	—	—	—	—	—	(8,337)	—	(8,337)
Issuance of common shares	—	2,872,753	—	2,872,753	—	574	637	—	(1,216)	—	(5)
Stock-based compensation expense	—	—	—	—	—	—	19,828	—	—	—	19,828
Common stock repurchased	—	—	(16,389,696)	(16,389,696)	—	—	—	—	—	(257,402)	(257,402)
Shares repurchased related to employee stock-based compensation plans	—	—	(1,077,643)	(1,077,643)	—	—	—	—	—	(16,641)	(16,641)
Balance at June 30, 2023	2,510,696	437,993,893	(211,913,035)	226,080,858	$251,070	$87,599	$1,129,537	$(83,564)	$3,485,732	$(3,064,010)	$1,806,364

8 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	—	—	—		—		—		—		—		—		541,924		—		541,924
Other comprehensive loss, net of tax	—	—	—		—		—		—		—		(3,705)		—		—		(3,705)
Total comprehensive income	—	—	—		—		—		—		—		—		—		—		538,219
Cash dividends declared:
Common stock ($0.22 per share)	—	—	—		—		—		—		—		—		(48,305)		—		(48,305)
Preferred Stock, Series B ($3.70 per share)	—	—	—		—		—		—		—		—		(9,281)		—		(9,281)
Issuance of common shares	—	2,049,231		2,049,231		—		409		1,679		—		(1,217)		—		871
Stock-based compensation expense	—	—	—		—		—		—		23,367		—		—		—		23,367
Common stock repurchased	—	—	(4,240,369)		(4,240,369)		—		—		—		—		—		(88,658)		(88,658)
Shares repurchased related to employee stock-based compensation plans	—	—	(691,386)		(691,386)		—		—		—		—		—		(13,772)		(13,772)
Balance at June 30, 2024	2,510,696	440,279,647	(222,818,287)		217,461,360		$251,070		$88,056		$1,173,735		$(78,809)		$4,107,980		$(3,258,794)		$2,283,238

SLM CORPORATION 9

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
	Six Months Ended June 30,
(Dollars in thousands)	2024	2023
Operating activities
Net income	$541,924	$383,583
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provisions for credit losses	28,871	131,841
Income tax expense	184,108	128,820
Amortization of brokered deposit placement fee	5,484	5,986
Amortization of Secured Borrowing Facility upfront fee	1,174	1,441
Amortization of deferred loan origination costs and loan premium/(discounts), net	6,260	6,402
Net amortization of discount on investments	(1,047)	(1,317)
Increase in tax indemnification receivable	—	(86)
Depreciation of premises and equipment	9,267	9,145
Acquired intangible assets amortization expense	2,609	4,517
Stock-based compensation expense	23,367	19,828
Unrealized (gains) losses on derivatives and hedging activities, net	43	(339)
Gains on sales of loans, net	(254,968)	(124,745)
Gains on securities, net	(4,221)	(498)
Other adjustments to net income, net	5,602	8,883
Changes in operating assets and liabilities:
Increase in accrued interest receivable	(550,931)	(511,089)
Increase in non-marketable securities	(283)	(691)
Decrease (increase) in other interest-earning assets	2,867	(790)
Increase in other assets	(23,389)	(37,573)
Decrease in income taxes payable, net	(163,936)	(74,596)
(Decrease) increase in accrued interest payable	(5,572)	10,433
Decrease in other liabilities	(27,742)	(17,301)
Total adjustments	(762,437)	(441,729)
Total net cash used in operating activities	(220,513)	(58,146)
Investing activities
Loans acquired and originated	(3,291,778)	(3,132,075)
Net proceeds from sales of loans held for investment and loans held for sale	3,761,722	2,157,028
Proceeds from FFELP Loan claim payments	20,034	26,477
Net decrease in loans held for investment and loans held for sale (other than loans acquired and originated, and loan sales)	1,380,714	1,605,292
Purchases of available-for-sale securities	(60,012)	(44,782)
Proceeds from sales and maturities of available-for-sale securities	410,835	148,092
Total net cash provided by investing activities	2,221,515	760,032
Financing activities
Brokered deposit placement fee	—	(2,634)
Net decrease in certificates of deposit	(175,483)	(303,027)
Net decrease in other deposits	(744,832)	(793,068)
Borrowings collateralized by loans in securitization trusts - issued	665,069	569,513
Borrowings collateralized by loans in securitization trusts - repaid	(494,161)	(596,692)
Issuance costs for unsecured debt offering	—	(15)
Fees paid on Secured Borrowing Facility	(2,333)	(2,850)
Common stock dividends paid	(48,305)	(51,938)
Preferred stock dividends paid	(9,281)	(8,337)
Common stock repurchased	(86,505)	(259,331)
Total net cash used in financing activities	(895,831)	(1,448,379)
Net decrease in cash, cash equivalents and restricted cash	1,105,171	(746,493)
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	$5,404,678	$4,026,343
Cash disbursements made for:

10 SLM CORPORATION

Reconciliation of the Consolidated Statements of Cash Flows to the Consolidated Balance Sheets:
Interest	$535,146	$449,268
Income taxes paid	$164,710	$82,307
Income taxes refunded	$(1,251)	$(8,157)
Cash and cash equivalents	$5,262,448	$3,875,758
Restricted cash	142,230	150,585
Total cash, cash equivalents and restricted cash	$5,404,678	$4,026,343

SLM CORPORATION 11

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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.