FOR IMMEDIATE RELEASE
SALLIE MAE REPORTS FIRST-QUARTER 2018 FINANCIAL RESULTS
Private Education Loan Originations Increase 7 Percent From Year-Ago Quarter to $2.0 Billion
Private Education Loan Portfolio Grows 20 Percent From Year-Ago Quarter to $18.6 Billion
Net Interest Income Increases 24 Percent From Year-Ago Quarter to $333 Million
Diluted Earnings Per Share Up 40 Percent From Year-Ago Quarter to $0.28
NEWARK, Del., Apr. 23, 2018 — Sallie Mae (Nasdaq: SLM), formally SLM Corporation, today released first-quarter 2018 financial results that include growth in loan originations, portfolio size, net interest income, and diluted earnings per share. In the first-quarter 2018, the company increased its private education loan originations 7 percent to $2.0 billion, expanded its private education loan portfolio 20 percent to $18.6 billion, increased its net interest income 24 percent to $333 million, and increased its diluted earnings per share 40 percent to $0.28, all compared with the first quarter of 2017.
“This quarter’s performance reflects our continual work to strengthen the value of our franchise,” said Raymond J. Quinlan, Chairman and CEO. “Students, parents, and graduate students continue to choose our private student loans to responsibly finance their higher education, and we are actively diversifying our product portfolio so we can meet their additional needs.”
For the first-quarter 2018, GAAP net income was $126 million, compared with $95 million in the year-ago quarter. GAAP net income attributable to the company’s common stock was $123 million ($0.28 diluted earnings per share) in the first-quarter 2018, compared with $89 million ($0.20 diluted earnings per share) in the year-ago quarter. The year-over-year increase was primarily attributable to a $65 million increase in net interest income, and a $7 million increase in total non-interest income, which was offset by a $29 million increase in provisions for credit losses, and a $22 million increase in total non-interest expenses. The reduction of the federal statutory corporate income tax rate from 35 percent to 21 percent as a result of the Tax Cuts and Jobs Act of 2017 (the “Tax Act”), which was enacted on Dec. 22, 2017, contributed approximately $23 million to net income.
First-quarter 2018 results vs. first-quarter 2017 included:
Private education loan originations of $2.0 billion, up 7 percent.
Net interest income of $333 million, up 24 percent.
Net interest margin of 6.17 percent, up 21 basis points.
Average private education loans outstanding of $18.7 billion, up 21 percent.
Average yield on the private education loan portfolio was 8.84 percent, up 58 basis points.
Private education loan provision for loan losses was $42 million, up from $27 million.
Private education loans in forbearance were 3.5 percent of private education loans in repayment and forbearance, up from 3.2 percent.
Private education loan delinquencies as a percentage of private education loans in repayment were 2.5 percent, up from 1.9 percent.
Non-GAAP Core earnings for the first-quarter 2018 were $123 million, compared with $98 million in the year-ago quarter. Core earnings attributable to the company’s common stock grew 29 percent to $120 million ($0.27 diluted earnings per share) in the first-quarter 2018, compared with $93 million ($0.21 diluted earnings per share) in the year-ago quarter.
First-quarter 2018 GAAP results included $4 million of pre-tax gains from derivative accounting treatment that are excluded from core earnings results, compared with $5 million of pre-tax losses in the year-ago period.
The following information was filed by Slm Corp (SLM) on Monday, April 23, 2018 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.