FOR IMMEDIATE RELEASE
SALLIE MAE REPORTS FOURTH-QUARTER AND FULL-YEAR 2014 FINANCIAL RESULTS
Full-Year Private Education Loan Originations of $4.1 Billion
Private Education Loan Portfolio Grows to $8.2 Billion, Up 27 Percent Year-over-Year
Net Interest Income Up 25 Percent Year-over-Year
Asset-Backed Commercial Paper Facility Closing Caps Successful Year in Capital Markets
NEWARK, Del., Jan. 21, 2015 — Sallie Mae (NASDAQ: SLM), formally SLM Corporation, today released fourth-quarter 2014 and full-year 2014 financial results that include the effects of $4.1 billion in private education loan originations, up 7 percent from last year; a 27-percent increase in private education loan portfolio size to $8.2 billion; and net interest income of $578 million, up 25 percent from 2013.
In a year of significant change, Sallie Mae achieved the legal separation of Navient, established a market for the sale and securitization of its private education loans and completed the roll out of its own, independent servicing and customer support capabilities. Most recently, the company closed a $750 million asset-backed commercial paper facility.
“2014 was a year of many accomplishments,” said Raymond Quinlan, chairman and CEO. “We managed the extraordinary demands of successfully completing the spin from the preexisting company while strengthening our customer franchise and assisting 367,000 students and families to pay for college.”
For the fourth-quarter 2014, GAAP net income was $20 million ($.03 diluted earnings per share), down from $60 million ($.14 diluted earnings per share) in the year-ago quarter. The year-over-year decrease was attributable to a $64-million decrease in gains on sales of securities and a $12-million increase in operating expenses, partially offset by a $28-million increase in net interest income.
For 2014, GAAP net income was $194 million ($.42 diluted earnings per share), down from $259 million ($.58 diluted earnings per share) in 2013.
Core earnings for the quarter were $20 million ($.03 diluted earnings per share), compared with $61 million ($.14 diluted earnings per share) in the year-ago quarter.
Core earnings for the year were $195 million ($.42 diluted earnings per share), compared with $259 million ($.58 diluted earnings per share) for 2013.
Sallie Mae provides core basis earnings because management believes its derivatives are effective economic hedges, and, as such are a critical element of its interest rate risk management strategy, and, consequently, it is one of several measures used to evaluate management performance. The difference between core earnings and GAAP net income is driven by mark-to-market unrealized gains and losses on derivative contracts not in effective accounting hedges and hedge ineffectiveness that are recognized in GAAP, but not in core earnings results. Fourth-quarter 2014 and full-year 2014 GAAP results included $62 thousand and $2 million, respectively, of pre-tax losses from derivative accounting treatment that are excluded from core earnings results, vs. $527 thousand and $645 thousand, respectively, in the year-ago periods.
The following information was filed by Slm Corp (SLM) on Wednesday, January 21, 2015 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.