SLM Corp Files 2023 Annual Report on Form 10-K

TL;DR

<b>SLM Corp has submitted its 2023 10-K filing detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

SLM Corp (SLMBP) filed a Annual Report (10-K) with the SEC on February 22, 2024. SLM Corp filed its 2023 Annual Report on Form 10-K on February 22, 2024. The filing covers the fiscal year ending December 31, 2023. The company's principal business is Personal Credit Institutions (SIC 6141). SLM Corp is incorporated in Delaware. The company's headquarters are located at 300 Continental Drive, Newark, DE 19713.

Why It Matters

For investors and stakeholders tracking SLM Corp, this filing contains several important signals. This 10-K filing provides a comprehensive overview of SLM Corp's financial health, operational performance, and strategic direction for the fiscal year 2023, which is crucial for investors to assess the company's stability and growth prospects. As a key player in the personal credit institutions sector, SLM Corp's annual report offers insights into industry trends, regulatory compliance, and the company's competitive positioning within the financial services landscape.

Risk Assessment

Risk Level: medium — SLM Corp shows moderate risk based on this filing. The company operates in the personal credit sector, which is subject to significant regulatory oversight and economic sensitivity, as indicated by its SIC code and the nature of its business.

Analyst Insight

Investors should review the detailed financial statements and risk factors within the 10-K to understand SLM Corp's performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 20231231 — Fiscal Year End (CONFORMED PERIOD OF REPORT)
• 20240222 — Filing Date (FILED AS OF DATE)
• 170 — Public Document Count (PUBLIC DOCUMENT COUNT)
• 001-13251 — SEC File Number (SEC FILE NUMBER)

Key Players & Entities

• SLM Corp (company) — CONFORMED NAME
• 0001032033 (company) — CENTRAL INDEX KEY
• 6141 (company) — STANDARD INDUSTRIAL CLASSIFICATION
• DE (company) — STATE OF INCORPORATION
• 300 Continental Drive, Newark, DE 19713 (company) — BUSINESS ADDRESS
• SALLIE MAE (company) — FORMER COMPANY NAME
• USA EDUCATION INC (company) — FORMER COMPANY NAME
• 20231231 (date) — CONFORMED PERIOD OF REPORT

FAQ

Industry Context

SLM Corp operates within the personal credit institutions sector, which includes entities focused on providing credit to individuals, such as student loans and other consumer financing.

Regulatory Implications

As a financial institution, SLM Corp is subject to extensive regulation by federal and state authorities, including those governing consumer lending, capital requirements, and data privacy.

What Investors Should Do

1. Analyze the financial statements for revenue trends, profitability, and asset quality.
2. Review the Management's Discussion and Analysis (MD&A) for insights into the company's strategy and outlook.
3. Examine the risk factors section for potential challenges and their impact on the business.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-22: Filing Date — Date SLM Corp submitted its 10-K to the SEC.

Year-Over-Year Comparison

This filing is the 2023 Form 10-K, providing the annual financial and operational overview for SLM Corp.

Key Financial Figures

• $16.32 — billion (based on closing sale price of $16.32 per share as reported for the NASDAQ Gl
• $6.4 billion — oan lender. We originated approximately $6.4 billion of Private Education Loans in 2023, an
• $19.8 billion — , 2022. As of December 31, 2023, we had $19.8 billion of Private Education Loans held for inv
• $29.1 b — 31, 2023, the Bank had total assets of $29.1 billion, including $19.8 billion of Priva
• $534 million — n Loans (held for investment), net, and $534 million of FFELP Loans (held for investment), a
• $21.9 billion — for investment), and total deposits of $21.9 billion. Our ability to obtain deposit funding
• $1.1 billion — our diversified funding base by raising $1.1 billion in term funding collateralized by pools
• $4.2 b — ing outstanding at December 31, 2023 to $4.2 billion, or 21 percent of our total Priva
• $329 million — r savings. At December 31, 2023, we had $329 million in SmartyPig deposits. Credit Cards I
• $4 million — settlement date. We recorded a loss of $4 million related to the sale in the second quart

Filing Documents

• slm-20231231.htm (10-K) — 5446KB
• slmex21112312023.htm (EX-21.1) — 4KB
• slmex23112312023.htm (EX-23.1) — 2KB
• slmex31112312023.htm (EX-31.1) — 9KB
• slmex31212312023.htm (EX-31.2) — 9KB
• slmex32112312023.htm (EX-32.1) — 4KB
• slmex32212312023.htm (EX-32.2) — 5KB
• slmex971.htm (EX-97.1) — 10KB
• slm-20231231_g1.jpg (GRAPHIC) — 43KB
• slm-20231231_g2.jpg (GRAPHIC) — 33KB
• slm-20231231_g3.jpg (GRAPHIC) — 286KB
• slm-20231231_g4.jpg (GRAPHIC) — 390KB
• slm-20231231_g5.jpg (GRAPHIC) — 65KB
• slmex971001.jpg (GRAPHIC) — 221KB
• slmex971002.jpg (GRAPHIC) — 276KB
• slmex971003.jpg (GRAPHIC) — 216KB
• slmex971004.jpg (GRAPHIC) — 266KB
• slmex971005.jpg (GRAPHIC) — 251KB
• slmex971006.jpg (GRAPHIC) — 128KB
• 0001628280-24-006382.txt (&nbsp;) — 29409KB
• slm-20231231.xsd (EX-101.SCH) — 172KB
• slm-20231231_cal.xml (EX-101.CAL) — 226KB
• slm-20231231_def.xml (EX-101.DEF) — 799KB
• slm-20231231_lab.xml (EX-101.LAB) — 1645KB
• slm-20231231_pre.xml (EX-101.PRE) — 1127KB
• slm-20231231_htm.xml (XML) — 5237KB

Risk Factors

Item 1A. Risk Factors 21

Unresolved Staff Comments

Item 1B. Unresolved Staff Comments 39

Cybersecurity

Item 1C. Cybersecurity 40

Properties

Item 2. Properties 41

Legal Proceedings

Item 3. Legal Proceedings 42

Mine Safety Disclosures

Item 4. Mine Safety Disclosures 42 PART II.

Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities

Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 43

Selected Financial Data

Item 6. Selected Financial Data 46

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations 47 Impact of COVID-19 on Sallie Mae 47 Key Financial Measures 47 Strategic Imperatives 49 Results of Operations 51 Financial Condition 56 Liquidity and Capital Resources 73 Critical Accounting Policies and Estimates 82 Risk Management 87

Quantitative and Qualitative Disclosures about Market Risk

Item 7A. Quantitative and Qualitative Disclosures about Market Risk 91

Financial Statements and Supplementary Data

Item 8. Financial Statements and Supplementary Data 94

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure

Item 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 94

Controls and Procedures

Item 9A. Controls and Procedures 94

Other Information

Item 9B. Other Information 94 PART III.

Directors, Executive Officers and Corporate Governance

Item 10. Directors, Executive Officers and Corporate Governance 95

Executive Compensation

Item 11. Executive Compensation 95

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 95

Certain Relationships and Related Transactions, and Director Independence

Item 13. Certain Relationships and Related Transactions, and Director Independence 95

Principal Accounting Fees and Services

Item 14. Principal Accounting Fees and Services 95 PART IV.

Exhibits, Financial Statement Schedules

Item 15. Exhibits, Financial Statement Schedules 96 FORWARD-LOOKING AND CAUTIONARY STATEMENTS References in this Annual Report on Form 10-K to "we," "us," "our," "Sallie Mae," "SLM," and the "Company" refer to SLM Corporation and its subsidiaries, except as otherwise indicated or unless the context otherwise requires. This Annual Report on Form 10-K contains "forward-looking" statements and information based on management's current expectations as of the date of this report. Statements that are not historical facts, including statements about our beliefs, opinions, or expectations and statements that assume or are dependent upon future events, are forward-looking statements. This includes, but is not limited to: statements regarding future developments surrounding COVID-19 or any other pandemic, including, without limitation, statements regarding the potential impact of COVID-19 or any other pandemic on the Company's business, results of operations, financial condition, and/or cash flows; our expectation and ability to pay a quarterly cash dividend on our common stock in the future, subject to the determination by our Board of Directors, and based on an evaluation of our earnings, financial condition and requirements, business conditions, capital allocation determinations, and other factors, risks, and uncertainties; the Company's 2024 guidance; the Company's three-year horizon outlook; the Company's expectation and ability to execute loan sales and share repurchases; the Company's projections regarding originations, net charge-offs, non-interest expenses, earnings, balance sheet position, and other metrics; any estimates related to accounting standard changes; and any estimates related to the impact of credit administration practices changes, including the results of simulations or other behavioral observations. Forward-looking statements are subject to risks, uncertainties, assumptions, and other factors that may cause actual results to be materially differ

Business

Item 1. Business Our Company Mission SLM Corporation, more commonly known as Sallie Mae, is the premier financial brand in higher education. As an education solutions company, our mission is to power confidence as students begin their unique journeys. We support students and families navigating to, through, and immediately after higher education. We simplify the college planning process and advance higher education access and completion by providing free tools, resources, scholarships, and responsible financing options. We believe education, in all forms, is the foundation for success, an equalizer of opportunities, and a proven pathway to economic mobility. Higher education increases lifetime wages and enables economic mobility. For example, data from the U.S. Bureau of Labor and Statistics confirms those with bachelor's degrees earn 68 percent more than those with a high school diploma. 1 Those with advanced degrees earn an even greater percentage than those with a high school diploma. 1 This effect is multigenerational, as children of parents who are college educated are more likely to earn a bachelor's degree than students whose parents did not go to college. Most would agree our society prospers and becomes more economically inclusive when each of its members is provided access to post-secondary education. 2 Education represents a transformative investment in one's future that yields our country's next nurses, teachers, engineers, business leaders, and more. Our History While the Sallie Mae name has existed for more than 50 years, the company that operates as Sallie Mae today, SLM Corporation, was formed in late 2013 and includes its wholly-owned subsidiary, Sallie Mae Bank, an industrial bank established in 2005 (the "Bank"). On April 30, 2014, we legally separated (the "Spin-Off") from another public company that is now named Navient Corporation ("Navient"), which is in the education loan management, servicing, asset recovery, and consolidation loan bu

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View this 10-K filing on SEC EDGAR