SLM Corporation (SLM) SEC Filings & Earnings Calls

Misaligned third-party debt resolution practices causing elevated charge-offs in high-ability-to-pay segment

“misaligned third-party debt resolution practices affecting a small, high-ability-to-pay segment of borrowers progressing straight through delinquency to default” · word for word

GAAP net loss driven by provision and expenses related to record originations growth

“GAAP net loss per common share of $0.19, primarily due to provision and expenses related to our highest ever year-over-year originations growth” · word for word

Significant EPS guidance cut for FY2026 from $3.10-$3.20 to $1.95-$2.05

“Diluted Earnings per Common Share $1.95 to $2.05 vs prior $3.10 to $3.20”

Net interest margin compression

“Net interest income decreased by $34 million in the current quarter compared with the year-ago quarter primarily due to a 33-basis point decrease in our net interest margin” · word for word

Higher operating expenses

“Third quarter 2026 total operating expenses were $220 million, up from $180 million in the year-ago quarter.” · word for word

Lower gains on loan sales

“Gains on sales of loans, net, were $4 million in the third quarter of 2026, as a result of the $318 million Private Education Loan sales that occurred in the quarter. There were $136 million in gains on sales, net, in the year-ago quarter” · word for word

Net interest margin compression due to lower asset yields and higher funding costs

“Net interest margin 4.75% vs 5.31% YoY; yield on total interest-earning assets 8.59% vs 9.25% YoY”

Rising net charge-offs and delinquencies, partly from third-party debt resolution issues

“Net charge-offs $113M vs $71M YoY; delinquencies 3.72% vs 3.51% YoY”

Efficiency ratio deterioration due to higher non-interest expenses

“Efficiency ratio 48.6% vs 41.4% YoY; non-interest expenses $195M vs $167M YoY”

Net interest margin compression

“Our net interest margin decreased 56-basis points in the current quarter from the year-ago quarter” · word for word

Operating expense growth outpacing revenue

“Second quarter 2026 total operating expenses were $194 million, up from $166 million in the year-ago quarter” · word for word

Loan consolidation activity increase

“Loan consolidations to third parties for the three months ended June 30, 2026 total 3.8 percent of our Private Education Loans held for investment portfolio in P&I repayment status... The increase in consolidations compared to the year-ago quarter is primarily attributable to lower interest rates in 2026.” · word for word

Regulatory changes may not materialize as projected.

“Forward-looking statements caution that actual results may differ.”

Refinancing risk if new notes offering fails; no minimum tender condition.

“The Tender Offer is conditioned upon, among other things, the completion of the New Notes Offering, and no assurance can be given that the New Notes Offering will be completed.” · word for word

Dependence on federal reforms for growth; changes in regulations or student visa policies could impact originations.

“we expect the federal reforms to increase our originations by up to 70%” · word for word

Federal Student Loan Reform Uncertainty

“Significant reforms to the federal student loan program will change how students and families approach paying for college.” · word for word

Competitive Intensity

“below-target performance reflected increased competitive intensity and more selective underwriting” · word for word

Credit Risk

“Net Charge-Offs AIP metric was calculated as net charge-offs as a percentage of average loans in repayment.” · word for word

Potential for leadership ambiguity with co-president structure.

“appointed ... as Co-Presidents”

Delinquency rate increased to 3.98% from 3.58% YoY, indicating potential credit quality deterioration.

“Delinquencies as a percentage of loans in repayment were 3.98% for the first quarter of 2026, compared with 3.58% for the first quarter of 2025.” · word for word

Forbearance rate increased to 0.99% from 0.92% YoY, suggesting some borrower stress.

“Loans in a hardship forbearance were 0.99% for the first quarter of 2026, compared with 0.92% for the first quarter of 2025.” · word for word

Interest rate risk

“Changes in the general interest rate environment, including the rate relationships among relevant money-market instruments and those of earning assets versus funding arrangements.” · word for word

Regulatory compliance cost

“Increases in costs associated with compliance with laws and regulations; failure to comply with consumer protection, banking, and other laws or regulations.” · word for word

Cybersecurity and AI risk

“Cybersecurity incidents, cyberattacks, risks related to artificial intelligence (“AI”), and other failures or breaches of operating systems or infrastructure.” · word for word

Macroeconomic and trade policy risk

“Changes in general economic or macroeconomic conditions, including, but not limited to, changes due to inflation, stagflation, recession, shifts in the labor market, and changes to government policies or initiatives, such as tariffs, trade wars, wars, immigration, and student visa policies.” · word for word

Potential loan sale is subject to definitive documentation and approvals; may not close.

“remains subject to, among other things, negotiation and execution of definitive documentation, satisfaction of customary closing conditions, and receipt of any required approvals” · word for word

Credit risk from economic downturn

“We bear the full credit risk of the customers.” · word for word

Interest rate sensitivity

“Historically, when rates rise, loan prepayments generally decline due to a reduction in consolidation activity” · word for word

Credit risk from loans originated before underwriting enhancements may still impact future charge-offs, though the percentage is declining.

“Due to the nature of our loans, the percent of loans entering repayment that do not meet our current underwriting standards are beginning to decrease significantly.” · word for word

Regulatory changes (PLUS program) could alter competitive dynamics, but are currently a tailwind.

“PLUS program changes that will significantly increase our volume of originations.” · word for word

Deposit portfolio declining 7% YoY, with brokered deposits at 39% of mix, indicating potential funding cost pressure.

“Deposit portfolio balances at the end of Q3 2025 were 7% lower than at the end of Q3 2024; Q3 2025 mix of brokered vs. retail and other was approximately 39% and 61%, respectively.” · word for word

Delinquencies increased to 4.0% from 3.60% YoY, though net charge-offs improved.

“4.01% delinquencies as a percentage of loans in repayment, compared with 3.60% in Q3 2024”

Partnership is subject to execution risk; KKR may not fulfill purchase commitments if market conditions change.

“KKR expects to purchase... forward-looking statements”

Dependence on KKR for off-balance sheet funding could create concentration risk.

“Multi-year strategic partnership with KKR” · word for word

No new risk signals identified; filing contains standard boilerplate disclaimers.