|
  |
SLM Corporation first-quarter 2005 loan originations grow 16 percent, reach $6.8 billion
Portfolio of managed loans grows 21 percent, nears $112 billion
RESTON, Va., April 21, 2005 -- SLM Corporation (NYSE: SLM), commonly known as Sallie Mae, today reported first-quarter 2005 earnings and performance results that include $6.8 billion in preferred-channel loan originations, a 16-percent increase from the 2004 first quarter.
Preferred-channel loan originations are loans funded by the company’s owned brands and other lender partners. These loans are a key measure of Sallie Mae’s market share success and indicate future loan acquisition volume and earnings growth.
“This year is off to a solid start,” said Albert L. Lord, chairman and chief executive officer, Sallie Mae. “We will continue to build on the success of our own brands and our strategic lender partners as we bring value to campuses, families and students.”
At the end of the first quarter 2005, the company’s managed student loan portfolio was nearly $112 billion, a 21-percent increase from the year-ago quarter’s $92 billion.
Sallie Mae reports financial results on a GAAP basis and also presents certain non-GAAP or “core cash” performance measures. The company's equity investors, credit rating agencies and debt capital providers use these “core cash” measures to monitor the company’s business performance.
Sallie Mae reported first-quarter 2005 GAAP net income of $223 million, or $.49 per diluted share, compared to $291 million, or $.61 per diluted share, in the year-ago period. Included in these GAAP results are pre-tax gains on the securitization of student loans of $50 million, compared to $114 million in the year-ago quarter. Also affecting the quarterly results are accounting rule changes related to contingently convertible bonds, which reduced earnings per diluted share by $(.01) in the current quarter and $(.03) in the year-ago quarter.
“Core cash” net income for the quarter was $256 million, up from $231 million in the year-ago quarter, and $.57 per diluted share, up 19 percent from the year-ago quarter of $.48 per diluted share. These results include the effect of the accounting change on contingently convertible bonds, which reduced “core cash” earnings per diluted share by $(.02) in the first-quarter 2005 and $(.03) in the year-ago quarter.
“Core cash” net interest income was $494 million for the quarter, compared to the year-ago quarter’s $433 million. “Core cash” other income, which consists primarily of fees earned from guarantor servicing and collection activity, was $221 million for the 2005 first quarter, up 27 percent from $174 million in the year-ago quarter. “Core cash” operating expenses were $249 million, compared to $202 million in the same quarter last year.
Both a description of the “core cash” treatment and a full reconciliation to the GAAP income statement can be found at www.salliemae.com.
Total equity for the company at March 31, 2005, was $3.1 billion, up from $2.7 billion a year ago. The company’s tangible capital at March 31, 2005, was 1.63 percent of managed assets, compared to 1.94 percent at the same time last year.
The company will host its regular earnings conference call today at noon. Sallie Mae executives will be on hand to discuss various highlights of the quarter and to answer questions related to the company’s performance. Individuals interested in participating should call the following number today, April 21, 2005, starting at 11:45 a.m. EDT: (877) 356-5689 (USA and Canada) or (706) 679-0623 (International). The conference call will be replayed continuously beginning Thursday, April 21, at 3:30 p.m. EDT and concluding at 11:59 p.m. EDT on Thursday, April 28. Please dial (800) 642-1687 (USA and Canada) or dial (706) 645-9291 (International) and use access code 5328073. In addition, there will be a live audio Web cast of the conference call, which may be accessed at www.salliemae.com. A replay will be available 30-45 minutes after the live broadcast.
For more information contact:
Tom Joyce 703/984-5610 (Media)
Martha Holler 703/984-5178 (Media)
Steve McGarry 703/984-6746 (Investors)
Joe Fisher 703/984-5755 (Investors)
SLM Corporation (NYSE: SLM ), commonly known as Sallie Mae, is the nation's No. 1 paying-for-college company, managing nearly $112 billion in student loans for 8 million borrowers. Sallie Mae was originally created in 1972 as a government-sponsored entity (GSE) and terminated all ties to the federal government in 2004. The company remains the country's largest originator of federally insured student loans. Through its specialized subsidiaries and divisions, Sallie Mae also provides debt management services as well as business and technical products to a range of business clients, including colleges, universities and loan guarantors. More information is available at www.salliemae.com. SLM Corporation and its subsidiaries are not sponsored by or agencies of the United States of America.
Statements in this release referring to expectations as to future market share, the successful consummation of any business acquisitions and other future developments are forward-looking statements, which involve risks, uncertainties and other factors that may cause the actual results to differ materially from such forward-looking statements. Such factors include, among others, changes in the terms of student loans and the educational credit marketplace arising from the implementation of applicable laws and regulations, and from changes in such laws and regulations, changes in the demand for educational financing or in financing preferences of educational institutions, students and their families, and changes in the general interest rate environment. For more information, see the company's filings with the Securities and Exchange Commission. |
|
