SLM · SLM Corporation

SLM Corporation's Q1 2026 results demonstrate robust performance in its core private education lending business, with originations growing 5% year-over-year to $2.9B, reflecting the strength of its powerful brand appearing on 98% of lender lists and proprietary underwriting models. Earnings surged with GAAP net income attributable to common stock more than doubling to $304M from $155M in the prior-year quarter, driving diluted EPS to $1.54, supported by a stable net interest margin of 5.29% and lower cost of funds at 4.13%. Capital deployment remained aggressive, including 12.0M shares repurchased for $259M under an accelerated share repurchase program and a $200M ASR with Goldman Sachs expected to complete by Q2 end, alongside a $0.13 quarterly dividend. A $618M ABS securitization was successfully executed amid market volatility, and loan sales of $3.3B bolstered liquidity, which rose to 21.2% of total assets. Provision for credit losses showed a $11M expense after a $131M release from sales, with ROCE at 56.4%. The presentation anticipates federal reforms effective July 1, 2026, eliminating Grad PLUS loans and capping others, potentially boosting originations by up to 70% or $4.5-5B annually once fully phased in, positioning SLM for sustained growth in a shifting student lending landscape.