FOR IMMEDIATE RELEASE
SALLIE MAE REPORTS SECOND-QUARTER 2017 FINANCIAL RESULTS
Private Education Loan Portfolio Grows 27 Percent From Year-Ago Quarter to $15.5 Billion
Net Interest Income Increases 27 Percent From Year-Ago Quarter to $270 Million
Diluted Earnings Per Share Up 25 Percent from Year-Ago Quarter to $0.15
Private Education Loan Originations For the Quarter Totaled $431 Million
NEWARK, Del., July 19, 2017 — Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today released second-quarter 2017 financial results that include growth in portfolio size, net interest income, diluted earnings per share and originations. In the second-quarter 2017, the company expanded its private education loan portfolio 27 percent to $15.5 billion, increased its net interest income 27 percent to $270 million, increased its diluted earnings per share 25 percent to $0.15, all compared with the second quarter of 2016, and originated $431 million in private education loans in the period.
“This quarter’s results reflect the consistency of our operation, with continued, strong credit quality and customer outcomes,” said Raymond J. Quinlan, chairman and CEO. “We remain steadfast in our commitment to put customers first, implementing changes to provide faster access to customer care and even more flexibility in loan repayment. As college-bound families prepare for the coming academic year and apply for loans to help cover the tuition bill, it is gratifying that 96 percent of customers would recommend the assistance we provide in that process.”
For the second-quarter 2017, GAAP net income was $71 million, compared with $57 million in the year-ago quarter. GAAP net income attributable to the company’s common stock was $67 million ($0.15 diluted earnings per share) in the second-quarter 2017, compared with $52 million ($0.12 diluted earnings per share) in the year-ago quarter. The year-over-year increase was primarily attributable to a $57 million increase in net interest income, which was offset by an $8 million increase in provisions for credit losses, a $3 million decrease in other income, a $16 million increase in total non-interest expenses, a $10 million increase in income tax expense, and a $6 million reduction in our derivatives and hedging activities.
Second-quarter 2017 results vs. second-quarter 2016 included:
Private education loan originations of $431 million, up 2 percent.
Net interest income of $270 million, up 27 percent.
Net interest margin of 5.91 percent, up 7 basis points.
Average private education loans outstanding of $15.7 billion, up 28 percent.
Average yield on the private education loan portfolio was 8.33 percent, up 35 basis points.
Private education loan provision for loan losses was $49 million, up from $42 million.
Private education loans in forbearance were 3.3 percent of private education loans in repayment and forbearance, up from 2.9 percent.
Private education loan delinquencies as a percentage of private education loans in repayment were 2.2 percent, up from 2.1 percent.
Core earnings for the second-quarter 2017 were $73 million, compared with $56 million in the year-ago quarter. Core earnings attributable to the company’s common stock grew 35 percent to $69 million ($0.16 diluted earnings per share) in the second-quarter 2017, compared with $51 million ($0.12 diluted earnings per share) in the year-ago quarter.
Sallie Mae provides core earnings because it is one of several measures management uses to evaluate management performance and allocate corporate resources. The difference between core earnings and GAAP net income is driven by mark-to-market unrealized gains and losses on derivative contracts recognized in GAAP, but not in core earnings results. Management believes
The following information was filed by Slm Corp (SLM) on Wednesday, July 19, 2017 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-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.