SLM Corporation, commonly known as Sallie Mae, reported its financial results for the first quarter of 2025, revealing a net income of $304.5 million, or $1.40 per diluted share, compared to $289.9 million, or $1.27 per diluted share, in the same period last year. The company’s total interest income for the quarter was $656.1 million, slightly down from $663.6 million in the prior year, primarily due to a decrease in yields on interest-earning assets. The net interest income after provisions for credit losses was $351.7 million, reflecting a decrease from $375 million in the previous year, attributed to a higher provision for credit losses of $23.3 million, up from $12 million a year ago.
In terms of operational metrics, SLM's total loans held for investment increased to $21.1 billion as of March 31, 2025, from $20.9 billion at the end of 2024. The company reported a significant increase in Private Education Loans, which accounted for the entirety of its loan portfolio, with net charge-offs decreasing to $76.2 million from $82.6 million year-over-year. The allowance for credit losses stood at $1.4 billion, representing 5.97% of total Private Education Loan exposure, slightly down from 5.99% in the previous year.
Strategically, SLM has continued to focus on its core business of Private Education Loans, with a notable $2 billion loan sale completed during the quarter, which contributed to a gain of $188 million. The company also reported a decrease in total deposits to $20.1 billion from $21.1 billion, with interest-bearing deposits comprising $20.07 billion. The average balance of Private Education Loans increased to $22.9 billion, reflecting a strong demand for education financing despite a competitive market environment.
Looking ahead, SLM Corporation remains optimistic about its growth trajectory, emphasizing its commitment to maximizing profitability and enhancing its risk management framework. The company plans to continue leveraging its brand and client base while maintaining a rigorous capital allocation strategy. Management indicated that they will monitor economic conditions closely, particularly in light of potential changes in interest rates and regulatory environments, to ensure sustained growth and stability in their operations.
About SLM Corp
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