Q2 2026 SLM Corp Earnings Call Transcript
Key Points
- SLM Corp (SLM) reported a 4.5% increase in loan originations year-over-year, reaching $716 million.
- The company successfully launched new products, including enhancements to medical, dental, law, and MBA loans, as well as a new parent loan.
- Credit quality improved with the average FICO score increasing from 754 to 755, and cosigner rates remained strong at 84%.
- SLM Corp (SLM) completed a $200 million accelerated share repurchase program, reducing shares outstanding by approximately 6.5% year-to-date.
- The company reported a decrease in the provision for credit losses, down from $149 million in the prior year quarter to $126 million.
- Net interest income decreased by $44 million compared to the prior year quarter.
- Net charge-offs increased to $113 million from $94 million in the prior year quarter, partly due to misaligned third-party debt resolution practices.
- Noninterest expenses rose by $28 million year-over-year, driven by onetime investments and strategic initiatives.
- Private education loans delinquent 30 days or more increased to 3.7% from 3.5% in the year-ago quarter.
- The company paused all recovery sales due to concerns over debt resolution companies targeting borrowers with the ability to pay, impacting short-term recovery strategies.
Welcome to the Sallie Mae second quarter 2026 earnings conference call. (Operator Instructions) I would now like to turn the call over to Kate deLacy, Vice President, Investor Relations. Please go ahead.
Thank you, Madison. Good evening, and welcome to Sallie Mae's second quarter 2026 earnings call. It is my pleasure to be here today with Jon Witter, our CEO; Pete Grant, our Co-President and CFO; and Melissa Bronaugh, Managing Vice President of Strategic Finance. After the prepared remarks, we will open the call for questions. Before we begin, keep in mind, our discussion will contain predictions, expectations and forward-looking statements.
Actual results in the future may be materially different from those discussed here due to a variety of factors. Listeners should refer to the discussion of those factors in the company's Form 10-Q and other filings with the SEC.
For Sallie Mae, these factors include, among others, results of operations, financial conditions and/or cash
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