SLM · SLM Corporation

Sallie Mae reported a strong first quarter 2026, with GAAP diluted earnings per common share rising to $1.54 from $1.40 in the prior year period. The earnings performance was supported by effective balance sheet management, evidenced by a net interest margin of 5.29%, which improved slightly from 5.27% in the year-ago quarter. This margin expansion reflects a lower cost of funds, which decreased to 4.13% from 4.23%. A significant contributor to the quarter's results was a $146 million gain on sale generated from strategic Private Education Loan sales totaling $3,332 million. These actions supported earnings while enhancing capital flexibility. Private Education Loan originations increased 5% year-over-year, indicating continued demand in the private student lending market. Credit performance remained stable, with net charge-offs of $89 million consistent with management's expectations. Delinquencies as a percentage of loans in repayment rose slightly to 3.98% from 3.58%. The Company actively returned capital to shareholders, repurchasing 12.0 million shares for $259 million and paying a quarterly dividend of $0.13 per share. Looking forward, management raised full-year 2026 diluted EPS guidance to a range of $3.10 to $3.20, signaling confidence in continued earnings strength. The Company also entered into a $200 million accelerated share repurchase agreement in March 2026, reinforcing its commitment to capital deployment.