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Sallie Mae Tops Q4 Earnings on Y/Y Rise in NII & Non-Interest Income
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Key Takeaways
SLM delivered Q4 EPS of $1.12 and GAAP net income of $229M, up sharply from the year-ago quarter.
SLM's Q4 NII rose to $377M with a 5.21% margin, while non-interest income jumped to $77M.
SLM recorded a $19M provision benefit and repurchased 3.8M shares, though charge-offs edged higher.
Sallie Mae (SLM - Free Report) reported fourth-quarter 2025 earnings per share (EPS) of $1.12, which increased from 50 cents in the prior-year quarter. The metric topped the Zacks Consensus Estimate by 18.2%.
The quarterly results benefited from a rise in net interest income (“NII”), lower provisions for credit losses and higher non-interest income, partially offset by an increase in expenses.
The company’s GAAP net income attributable to common stock was $229 million compared with $107 million in the year-ago quarter.
For 2025, EPS of $3.46 increased from $2.68 in 2024. The metric topped the Zacks Consensus Estimate by 18.2%. The company’s GAAP net income attributable to common stock was $729 million compared with $590 million in the year-ago quarter.
Sallie Mae’s NII & Expenses Rise
Fourth-quarter NII totaled $377 million, up from $362 million in the prior-year quarter. The reported figure beat the Zacks Consensus Estimate by 0.4%. The quarterly net interest margin was 5.21%, expanding 29 basis points year over year.
Full-year 2025 NII was $1.5 billion, up from $1.48 billion in 2024. The reported figure matched the Zacks Consensus Estimate.
Quarterly non-interest income was $77 million, significantly higher than $28 million in the year-ago quarter.
Non-interest expenses increased 4.7% year over year to $157 million.
SLM’s Credit Quality Mixed
In the fourth quarter, the company reported provision benefits of $19 million, in contrast to provisions of credit losses of $108 million in the prior-year quarter, primarily reflecting the release of reserves associated with loan sales.
Net charge-offs for private education loans were $98 million, up from $95 million in the year-ago quarter.
Private education loan net charge-offs, as a percentage of average loans in repayment (annualized), were 2.42%, marginally higher than 2.38% in the prior-year quarter.
Sallie Mae’s Balance Sheet Position
As of Dec. 31, 2025, deposits totaled $21.1 billion, relatively flat compared with the year-ago quarter.
Private education loans held for investment, net, were $20.3 billion, down modestly from $20.9 billion in the prior-year quarter.
In the reported quarter, private education loan originations increased 4% year over year to approximately $1.0 billion.
SLM’s Share Repurchase Update
In the fourth quarter, SLM repurchased 3.8 million shares for $106 million.
For the full-year 2025, the company repurchased 12.8 million shares for $373 million under its 2024 share buyback program.
Final Thoughts on SLM
Sallie Mae delivered a strong fourth-quarter performance, driven by solid net interest income growth, higher non-interest income and a favorable provision for credit losses. Stable loan originations and continued capital return remain positives. However, elevated charge-off levels warrant close monitoring going forward.
Hancock Whitney Corp.’s (HWC - Free Report) fourth-quarter 2025 earnings per share of $1.49 beat the Zacks Consensus Estimate by a penny. Further, the bottom line rose 6.4% from the prior year quarter.
HWC’s results benefited from an increase in non-interest income and NII. Higher loans and deposits were another positive. However, higher expenses alongside increased provisions were headwinds.
WaFd, Inc.’s (WAFD - Free Report) first-quarter fiscal 2026 (ended Dec. 31) earnings of 79 cents per share beat the Zacks Consensus Estimate of 76 cents. The bottom line also jumped 46% year over year.
WAFD’s results reflected higher NII, a surge in non-interest income and lower expenses. However, credit costs remained elevated, with provisions for credit losses recorded in the quarter.
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Sallie Mae Tops Q4 Earnings on Y/Y Rise in NII & Non-Interest Income
Key Takeaways
Sallie Mae (SLM - Free Report) reported fourth-quarter 2025 earnings per share (EPS) of $1.12, which increased from 50 cents in the prior-year quarter. The metric topped the Zacks Consensus Estimate by 18.2%.
The quarterly results benefited from a rise in net interest income (“NII”), lower provisions for credit losses and higher non-interest income, partially offset by an increase in expenses.
The company’s GAAP net income attributable to common stock was $229 million compared with $107 million in the year-ago quarter.
For 2025, EPS of $3.46 increased from $2.68 in 2024. The metric topped the Zacks Consensus Estimate by 18.2%. The company’s GAAP net income attributable to common stock was $729 million compared with $590 million in the year-ago quarter.
Sallie Mae’s NII & Expenses Rise
Fourth-quarter NII totaled $377 million, up from $362 million in the prior-year quarter. The reported figure beat the Zacks Consensus Estimate by 0.4%. The quarterly net interest margin was 5.21%, expanding 29 basis points year over year.
Full-year 2025 NII was $1.5 billion, up from $1.48 billion in 2024. The reported figure matched the Zacks Consensus Estimate.
Quarterly non-interest income was $77 million, significantly higher than $28 million in the year-ago quarter.
Non-interest expenses increased 4.7% year over year to $157 million.
SLM’s Credit Quality Mixed
In the fourth quarter, the company reported provision benefits of $19 million, in contrast to provisions of credit losses of $108 million in the prior-year quarter, primarily reflecting the release of reserves associated with loan sales.
Net charge-offs for private education loans were $98 million, up from $95 million in the year-ago quarter.
Private education loan net charge-offs, as a percentage of average loans in repayment (annualized), were 2.42%, marginally higher than 2.38% in the prior-year quarter.
Sallie Mae’s Balance Sheet Position
As of Dec. 31, 2025, deposits totaled $21.1 billion, relatively flat compared with the year-ago quarter.
Private education loans held for investment, net, were $20.3 billion, down modestly from $20.9 billion in the prior-year quarter.
In the reported quarter, private education loan originations increased 4% year over year to approximately $1.0 billion.
SLM’s Share Repurchase Update
In the fourth quarter, SLM repurchased 3.8 million shares for $106 million.
For the full-year 2025, the company repurchased 12.8 million shares for $373 million under its 2024 share buyback program.
Final Thoughts on SLM
Sallie Mae delivered a strong fourth-quarter performance, driven by solid net interest income growth, higher non-interest income and a favorable provision for credit losses. Stable loan originations and continued capital return remain positives. However, elevated charge-off levels warrant close monitoring going forward.
SLM Corporation Price, Consensus and EPS Surprise
SLM Corporation price-consensus-eps-surprise-chart | SLM Corporation Quote
Currently, SLM carries a Zacks Rank #5 (Strong Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Performances of Other Banks
Hancock Whitney Corp.’s (HWC - Free Report) fourth-quarter 2025 earnings per share of $1.49 beat the Zacks Consensus Estimate by a penny. Further, the bottom line rose 6.4% from the prior year quarter.
HWC’s results benefited from an increase in non-interest income and NII. Higher loans and deposits were another positive. However, higher expenses alongside increased provisions were headwinds.
WaFd, Inc.’s (WAFD - Free Report) first-quarter fiscal 2026 (ended Dec. 31) earnings of 79 cents per share beat the Zacks Consensus Estimate of 76 cents. The bottom line also jumped 46% year over year.
WAFD’s results reflected higher NII, a surge in non-interest income and lower expenses. However, credit costs remained elevated, with provisions for credit losses recorded in the quarter.